Blue Ridge Bankshares(BRBS) - 2024 Q2 - Quarterly Results

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$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$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].