Financial Performance - The company reported a net loss of $11.4 million, or $0.47 per diluted common share, for Q2 2024, compared to a net loss of $2.9 million, or $0.15 per diluted common share, in Q1 2024[2]. - The company reported a net loss of $11.435 million in Q2 2024, compared to a net loss of $2.893 million in Q1 2024 and $8.613 million in Q2 2023[50]. - The net loss attributable to common shareholders was $(11,585) thousand, compared to $(2,893) thousand in the prior quarter[51]. - Return on average assets was -1.48%, compared to -0.37% in the prior quarter[51]. - Noninterest income for Q2 2024 was $0.3 million, a significant decrease from $7.8 million in Q1 2024 and $9.7 million in Q2 2023, primarily due to an $8.5 million non-cash negative fair value adjustment[38]. - Noninterest income significantly decreased to $308 thousand from $7,825 thousand in the previous quarter[51]. Deposits and Loans - Total deposit balances decreased to $2.33 billion from $2.47 billion, a decrease of $139.9 million, reflecting a $96.3 million reduction in fintech-related balances[28]. - Total deposits decreased to $2.33 billion at June 30, 2024, a decline of $139.9 million from the prior quarter and $287.3 million from the year-ago period, largely due to fewer fintech relationships[42]. - Fintech-related deposits fell to $206.6 million at June 30, 2024, down from $303.0 million at the prior quarter end and $707.6 million at June 30, 2023[47]. - Loans held for investment were $2.26 billion at quarter end, a decrease of $134.8 million from the prior quarter[30]. - Loans held for investment were $2.26 billion at June 30, 2024, down from $2.39 billion at March 31, 2024, and $2.45 billion at June 30, 2023, reflecting a strategic reduction in assets[41]. - The held for investment loan to deposit ratio was 97.1% at June 30, 2024, unchanged from the prior quarter, indicating a stable asset-liability management strategy[45]. Interest Income and Margin - The net interest income after provision for credit losses was $16.985 million in Q2 2024, compared to $21.349 million in Q1 2024 and $13.877 million in Q2 2023[50]. - Net interest income was $20.1 million, a decline of $0.3 million from the prior quarter, primarily due to a decline in average balances of interest-earning assets[53]. - Net Interest Income increased by 15% year-over-year, reaching $1.2 billion[71]. - The net interest margin was 2.79% for Q2 2024, an increase from 2.75% in the prior quarter[36]. - Net Interest Margin improved to 3.5%, up from 3.2% in the previous quarter[71]. Expenses and Credit Losses - Noninterest expense decreased to $29.3 million in Q2 2024 from $32.5 million in Q1 2024 and $34.1 million in Q2 2023, driven by lower salaries and employee benefits[40]. - The provision for credit losses was $3.1 million, compared to a recovery of $1.0 million in the prior quarter, with net loan charge-offs of $10.6 million[66]. - The allowance for credit losses as a percentage of total loans held for investment was 1.24%, down from 1.46% in the prior quarter[67]. - The ratio of net charge-offs to average loans outstanding increased to 1.81% from 0.14% in the prior quarter[52]. Capital and Regulatory Position - The company completed a capital raise of $161.6 million in a private placement to support business transformation[2]. - Capital proceeds from private placements totaled $152.5 million, positioning the Bank to meet its regulatory capital requirements[63]. - The ratio of tangible common stockholders' equity to tangible total assets was 10.3%, up from 5.8% in the prior quarter, reflecting the issuance of 53,922,000 shares of common stock[68]. - The Bank's tier 1 leverage ratio and total risk-based capital ratio were 11.02% and 15.11%, respectively, compared to 7.44% and 10.51% in the prior quarter, indicating improved capital position[69]. Asset Management - Total assets decreased to $2,933,072 thousand from $3,076,187 thousand in the previous quarter, representing a decline of approximately 4.65%[52]. - The effective income tax rate for the quarter was 5.1%, down from 12.3% in the prior quarter, influenced by a $2.0 million tax benefit from surrendering bank-owned life insurance policies[56]. - Estimated uninsured deposits as a percentage of total deposits were 17.9% at quarter end, down from 22.4% in the prior quarter[29]. - Noninterest-bearing deposits represented 20.2% of total deposits at June 30, 2024, compared to 20.1% at March 31, 2024, and 22.0% at June 30, 2023, indicating a slight stabilization in deposit composition[44].

Core Points - The company reported a net loss of $11.4 million for Q2 2024, compared to a net loss of $2.9 million in Q1 2024 and $8.6 million in Q2 2023, largely due to a $6.7 million after-tax negative fair value adjustment related to a fintech investment [2][5][21] - The company is winding down its fintech Banking-as-a-Service (BaaS) operations, with BaaS deposits now representing approximately 7% of total deposits, a significant decrease from the previous year [5][9] - A capital raise of $161.6 million was completed through private placements to support business transformation and meet regulatory capital requirements [5][18] Financial Performance - Net interest income for Q2 2024 was $20.1 million, a slight decline from $20.3 million in Q1 2024, primarily due to reduced average balances of interest-earning assets [2][8] - Noninterest income dropped to $0.3 million in Q2 2024 from $7.8 million in Q1 2024, mainly due to a negative fair value adjustment of $8.5 million on an equity investment [3][21] - Noninterest expenses decreased to $29.3 million in Q2 2024 from $32.5 million in Q1 2024, attributed to lower salaries and regulatory remediation expenses [3][21] Asset Quality - The provision for credit losses was $3.1 million in Q2 2024, compared to a recovery of $1.0 million in Q1 2024, reflecting increased reserves for certain purchased loans [3][21] - Nonperforming loans improved to $46.0 million, or 1.57% of total assets, down from $53.2 million, or 1.73%, in the prior quarter [7][27] - The allowance for credit losses as a percentage of total loans held for investment was 1.24% at the end of Q2 2024, down from 1.46% in the previous quarter [3][27] Capital and Liquidity - The company's tangible common stockholders' equity to tangible total assets ratio improved to 10.3% from 5.8% in the prior quarter, reflecting the recent capital raise [3][27] - As of June 30, 2024, the bank's tier 1 leverage ratio and total risk-based capital ratio exceeded the minimum capital ratios set forth in the Consent Order [3][18] - Total assets decreased to $2.93 billion from $3.08 billion in the prior quarter, as the bank reduced assets to meet liquidity needs [3][9]

Core Points - A lawsuit is pending for investors in Blue Ridge Bankshares, Inc. (NYSE: BRBS) shares, seeking to recover losses due to alleged misleading statements and undisclosed errors in financial statements [1][2] - The lawsuit claims that Blue Ridge Bankshares will need to restate its financial statements from March 10, 2023, to October 31, 2023, which has led to material misrepresentation of the company's business and operations [2] - Investors who purchased shares prior to March 2023 and continue to hold them have options to seek assistance from the Shareholders Foundation [4] Company Information - Blue Ridge Bankshares, Inc. is facing legal challenges related to its financial disclosures, which may impact investor confidence and the company's market performance [2] - The Shareholders Foundation, Inc. provides services related to shareholder issues, including monitoring legal actions and informing investors about securities class actions [3]

Financial Performance - The company reported a net loss of $2,893 thousand for the three months ended March 31, 2024, compared to retained earnings of $33,157 thousand at the end of the previous period[83]. - Net loss for the three months ended March 31, 2024, was $2,893,000, resulting in a basic and diluted loss per share of $0.15[211]. - Net interest income for the three months ended March 31, 2024, was $20,723,000, after a provision for credit losses of $1,000,000[212]. - Total noninterest income for the three months ended March 31, 2024, was $7,825,000[212]. - Total noninterest expense for the three months ended March 31, 2024, was $32,474,000[212]. Asset and Liability Changes - As of March 31, 2024, total assets decreased to $3,076,187 thousand from $3,117,554 thousand as of December 31, 2023, representing a decline of approximately 1.3%[78]. - The company’s total liabilities decreased to $2,895,281 thousand from $2,931,565 thousand, a decline of approximately 1.2%[78]. - Stockholders' equity decreased to $180,906 thousand from $185,989 thousand, reflecting a decline of approximately 2.3%[78]. - The company’s cash and due from banks increased to $117,464 thousand from $110,491 thousand, an increase of approximately 6.5%[78]. Deposits and Loans - Total deposits decreased to $2,465,776 thousand, down from $2,566,032 thousand, a reduction of about 3.9%[78]. - Loans held for investment net of deferred fees and costs decreased to $2,359,064 thousand from $2,395,054 thousand, a decline of approximately 1.5%[78]. - The company reported total loans of $2,318,432 thousand as of March 31, 2024, a decrease from $2,394,089 thousand as of December 31, 2023, representing a decline of approximately 3.2%[122]. - The total loans past due (30-59 days) were reported at $19,976 thousand as of March 31, 2024, compared to $14,282 thousand as of December 31, 2023, marking an increase of approximately 40.5%[122]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses decreased to $35,025 thousand from $35,893 thousand, a reduction of about 2.4%[78]. - The total nonaccrual loans amounted to $50.9 million as of March 31, 2024, with $48.4 million classified as having an allowance for credit losses (ACL)[106]. - The company is actively monitoring loans classified as Risk Grade 5 (Watch) and Risk Grade 7 (Substandard) for potential financial distress among borrowers[126][127]. - The company maintained no loans classified as loss (risk grade 9) as of March 31, 2024[157]. Securities and Investments - The company pledged securities with a par value of $69.0 million as collateral for the Bank Term Funding Program established by the Federal Reserve[97]. - The company’s securities available for sale at fair value decreased to $314,394 thousand from $321,081 thousand, a decrease of about 2.1%[78]. - As of March 31, 2024, the total amortized cost of the company's securities was $375.9 million, with a fair value of $314.4 million, indicating a decrease in fair value of approximately 16.3%[98]. - The company holds investments in early-stage focused investment funds totaling $26.6 million as of March 31, 2024, down from $29.5 million at December 31, 2023[101]. Capital and Regulatory Compliance - The Bank's total risk-based capital was $270.2 million, with a leverage ratio of 10.25% and a total capital ratio of 13.00%[186]. - The Bank did not meet the minimum capital requirements of a leverage ratio of 10.00% and a total capital ratio of 13.00% as of March 31, 2024, and December 31, 2023[184]. - The company received $100.0 million from a private placement, which is assumed to be contributed as tier 1 capital to the bank[218]. - The company plans to use net proceeds from a private placement to reposition business lines and enhance capital levels[112]. Legal and Settlement Matters - The company has agreed to a settlement payment of $6.0 million related to the VCB ESOP litigation, with $5.95 million due after final court approval[215]. - The company believes the claims from a purported class action lawsuit are without merit and has not accrued any loss for this lawsuit as of March 31, 2024[214]. - The court granted preliminary approval of the settlement agreement on February 22, 2024, with a final hearing scheduled for early June 2024[215].

Financial Performance - Net interest income for Q1 2024 was $20.3 million, a decline of $1.4 million from the prior quarter, with a net interest margin of 2.75% compared to 2.92% in Q4 2023[19][26] - Noninterest income increased to $7.8 million in Q1 2024, up from $4.1 million in the prior quarter, primarily due to fair value adjustments on mortgage servicing rights[22][28] - The company reported a net loss of $2.9 million, or $0.15 per diluted common share, an improvement from a net loss of $5.8 million, or $0.30 per diluted common share, in the prior quarter[34][38] - Noninterest expense rose to $32.5 million in the first quarter of 2024, an increase of $1.9 million from the prior quarter, primarily due to higher salaries and employee benefits[44] - The company reported a net loss of $2.893 million in Q1 2024, an improvement from a net loss of $5.759 million in Q1 2023[63] - The return on average assets improved to -0.37% in Q1 2024 from -0.73% in Q1 2023[63] - The efficiency ratio improved to 115.3% in Q1 2024, compared to 118.2% in Q1 2023[63] Asset Quality - The recovery of credit losses was $1.0 million in Q1 2024, compared to a provision for credit losses of $2.8 million in the prior quarter[8][27] - Nonperforming loans improved to $53.2 million, or 1.73% of total assets, down from $63.1 million, or 2.02% of total assets, in the prior quarter[16] - The allowance for credit losses as a percentage of total loans held for investment was 1.46% at quarter end, compared to 1.48% in the prior quarter[17] - Nonperforming assets to total assets ratio improved to 1.73% in Q1 2024, down from 2.02% in Q1 2023[64] - Nonperforming loans to total assets improved to 1.73% from 2.63% in the previous quarter, indicating a positive trend in asset quality[74] Deposits and Loans - Total deposit balances decreased by $100.3 million from the prior quarter, primarily due to a decline in fintech-related balances of $162.9 million[20] - Total deposits were $2.47 billion at March 31, 2024, a decrease of $100.3 million from the prior quarter and a decrease of $295.3 million from the year-ago period[52] - Fintech-related deposits decreased to $303.0 million at March 31, 2024, down from $465.9 million in the prior quarter, representing 12.3% of total deposits[42] - Loans held for investment were $2.39 billion, a decrease of $36.9 million from the prior quarter, as the bank reduced assets to meet liquidity needs[21][30] - The held for investment loan to deposit ratio was 97.1% at March 31, 2024, compared to 94.7% in the prior quarter and 88.8% a year ago[53] - Total deposits decreased to $2.466 billion as of March 31, 2024, from $2.566 billion a year earlier, a decline of 3.9%[63] - The company reported a net loan balance of $2,359,064 thousand, down from $2,395,054 thousand, indicating a decrease of about 1.51%[72] Capital and Funding - The company completed a private placement capital raise of $150 million to support business transformation efforts[2] - The company aims to reposition business lines and enhance capital levels in line with the minimum capital ratios set forth in the Consent Order[37] - The cost of funds increased to 3.03% in the first quarter of 2024, up from 2.91% in the prior quarter and 2.11% in the year-ago period[47] - FHLB borrowings increased to $280,000 thousand from $210,000 thousand, showing a significant rise of 33.33%[72] - The total stockholders' equity decreased to $180,906 thousand from $185,989 thousand, a decline of approximately 2.90%[72] - Tangible common equity was reported at $176,993 thousand, a slight decrease from $181,810 thousand in the previous quarter[75] - Book value per common share decreased to $9.24 from $9.69, reflecting a decline of approximately 4.65%[75] Interest Income - Total interest income was $42.5 million for the first quarter of 2024, slightly down from $43.2 million in the fourth quarter of 2023[45] - Interest income for Q1 2024 was $42.531 million, a decrease from $43.160 million in Q1 2023, representing a decline of 1.5%[63] - Net interest income after provision for loan losses increased to $21.349 million in Q1 2024 from $18.993 million in Q1 2023, a growth of 12.0%[63] - The yield on average loans held for investment was 6.29% for the first quarter of 2024, compared to 6.31% in the prior quarter and 5.88% a year ago[45] - Interest and fee income from fintech partnerships was approximately $1.7 million in Q1 2024, compared to $1.5 million in Q1 2023[66]

Completed capital raise of $150 million private placement, which closed subsequent to the end of the quarter, to help fund business transformation Solidified compliance and risk management functions with key hires Regulatory remediation efforts on track RICHMOND, Va., April 30, 2024 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc. ("BRB Financial Grou ...

Capital expected to allow the bank to reposition business lines, support organic growth and further enhance capital levels of the core community bank CHARLOTTESVILLE, Va., April 3, 2024 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company" or "Blue Ridge") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank") and BRB Financial Group, Inc. ("BRB Financial Group"), has closed on definitive securities purchase agreements for gross proceeds of $150 ,000,0 ...

Regulations issued by the CFPB could adversely impact earnings due to, among other things, increased compliance costs or costs due to noncompliance. As of December 31, 2023, the Company had approximately $870.5 million in loans secured by commercial real estate, representing approximately 35.8% of total loans outstanding at that date. The real estate consists primarily of non-owner-occupied properties and other commercial properties. These types of loans are generally viewed as having more risk of default t ...

December 31, 2022 | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------|-------|-----------------|---------------|-----------------------------------|--------------------|---------------------------|---------------------| | (Dollars in thousands) | | Actual \nAmount | Ratio | For Capital Purposes \nAmount | Adequacy \nRatio | To Be Well \nAmount | Capitalized \nRatio | | Total risk based capital | | | | | | | | | (To risk-weighted assets) | | | | | | | | | Blue Ridge Bank ...

Financial Performance - Net loss for the three months ended June 30, 2023, was $(19,464) thousand, a significant decline from a net income of $1,118 thousand for the same period in 2022[35]. - The company reported a comprehensive net loss of $(24,487) thousand for the three months ended June 30, 2023, compared to a comprehensive net loss of $(14,897) thousand for the same period in 2022[35]. - The company reported a net loss from continuing operations of $17,860,000 for the six months ended June 30, 2023, compared to a net income of $18,538,000 for the same period in 2022[40]. - The company reported a net loss of $19,464 thousand for the three months ended June 30, 2023, compared to a net income of $1,118 thousand for the same period in 2022[35]. - The net loss for the second quarter was $12,240,000, compared to a loss of $1,907,000 in the previous quarter[134]. Assets and Liabilities - Total assets increased to $3,214,424 thousand as of June 30, 2023, compared to $3,141,045 thousand at December 31, 2022, representing a growth of 2.33%[34]. - The total liabilities increased to $2,983,153 thousand as of June 30, 2023, from $2,881,672 thousand at December 31, 2022, an increase of 3.54%[34]. - The company’s cash and due from banks increased to $131,843 thousand as of June 30, 2023, compared to $77,274 thousand at December 31, 2022, a growth of 70.66%[34]. - Cash and due from banks at the end of the period increased to $131,843,000 from $75,192,000 year-over-year[40]. - Total financial assets included cash and due from banks amounting to $77,274 thousand[125]. Deposits and Loans - Total deposits rose to $2,613,094 thousand as of June 30, 2023, up from $2,502,507 thousand at December 31, 2022, marking an increase of 4.43%[34]. - Loans held for investment net of deferred fees and costs increased to $2,408,630 thousand as of June 30, 2023, compared to $2,376,153 thousand at December 31, 2022, reflecting a growth of 1.36%[34]. - Total loans amounted to $2,411.059 million, with $14.663 million past due[72]. - Total loans amounted to $2,363.2 million as of June 30, 2023, with nonaccrual loans totaling $83.7 million[91]. - The Company’s commercial and industrial current loans totaled $482.4 million as of June 30, 2023[91]. Credit Losses and Provisions - The allowance for credit losses increased to $(43,067) thousand as of June 30, 2023, compared to $(22,939) thousand at December 31, 2022, indicating a rise of 87.73%[34]. - Provision for credit losses on loans increased significantly to $25,200,000 from $9,994,000 year-over-year, indicating a heightened risk environment[40]. - The Company recorded an increase in its Allowance for Credit Losses (ACL) of $4.0 million due to the adoption of ASC 326, which reduced stockholders' equity by $2.6 million[53]. - The increase in ACL during the six months ended June 30, 2023, was primarily due to specific reserve needs of $14.1 million for specialty finance loans and $4.0 million from ASC 326 adoption[68]. - The total allowance for loan losses at the end of the period was $12,945,000, reflecting changes in expected cash flows[101]. Income and Expenses - Net interest income for the second quarter of 2023 was $48,440,000, a decrease of 1,089,000 compared to the previous quarter[134]. - Total noninterest income increased to $12,586,000, with significant contributions from residential mortgage banking income of $642,000 and gains on the sale of guaranteed government loans of $4,793,000[134]. - Total noninterest expense rose to $51,988,000, reflecting an increase of 7,823,000, primarily driven by salaries and employee benefits[134]. - The total noninterest expense for the first half of 2023 was $48,015,000, with salaries and employee benefits accounting for $29,969,000[134]. Stockholders' Equity - Stockholders' equity decreased to $231,271 thousand as of June 30, 2023, down from $259,373 thousand at December 31, 2022, a decline of 10.81%[34]. - Retained earnings decreased to $80,287 thousand as of June 30, 2023, down from $108,262 thousand at the end of 2022, representing a decline of approximately 25.9%[34]. - The company declared dividends on common stock amounting to $(4,552) thousand during the six months ended June 30, 2023[38]. Regulatory and Compliance - The company adopted ASC 326, which impacts the accounting for credit losses, effective January 1, 2023, with prior periods reported under previous GAAP[48]. - The company is actively working to enhance controls for assessing and managing risks associated with its fintech partnerships as per the Written Agreement with the OCC[44]. - The capital conservation buffer required under Basel III rules is 2.50% for adequately capitalized risk-based capital ratios[126]. - The bank's capital conservation buffer impacts activities such as dividend payments and share repurchases if dipped into[126]. Market and Future Outlook - The company anticipates continued focus on market expansion and new product development in the upcoming quarters[136]. - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[36].