Blue Ridge Bankshares(BRBS) - 2024 Q3 - Quarterly Report

Financial Performance - The company reported a net income of $946 thousand for the three months ended September 30, 2024, compared to a net loss of$41,371 thousand for the same period in 2023, indicating a significant turnaround[5]. - For the nine months ended September 30, 2024, Blue Ridge Bankshares reported a net loss of $13,382 thousand[8]. - The company reported comprehensive net income of$10,946 thousand for the three months ended September 30, 2024, compared to a comprehensive net loss of $48,889 thousand for the same period in 2023[7]. - Basic and diluted earnings per share for the three months ended September 30, 2024, was$0.01, compared to a loss of $2.18 per share for the same period in 2023[5]. - For the nine months ended September 30, 2024, the net loss was$13,382 thousand, compared to a net loss of $46,014 thousand for the same period in 2023[7]. Asset and Deposit Changes - Total assets decreased to$2,944,691 thousand as of September 30, 2024, down from $3,117,554 thousand on December 31, 2023, representing a decline of approximately 5.5$2,346,492 thousand as of September 30, 2024, down from $2,566,032 thousand on December 31, 2023, reflecting a decline of approximately 8.6$361,678 thousand for the current period[7]. - The total stockholders' equity at the end of the period was $336,347 thousand, reflecting an increase from the previous period[8]. - The total stockholders' equity increased by$150.4 million to $336.3 million as of September 30, 2024, mainly due to the closing of Private Placements in Q2 2024[158]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2024, was$19,101 thousand, a decrease of 13.4% compared to $22,192 thousand for the same period in 2023[5]. - Noninterest income for the three months ended September 30, 2024, was$2,739 thousand, a decrease from $7,415 thousand in the same period in 2023, representing a decline of approximately 63.1$26,495 thousand for the three months ended September 30, 2024, significantly lower than $64,621 thousand for the same period in 2023, indicating a reduction of approximately 58.9$88,314, an increase from $79,575 in the previous period[129]. - The effective income tax rate for the three months ended September 30, 2024, was 38.8$6,200 thousand for the three months ended September 30, 2024, compared to a provision of $11,050 thousand for the same period in 2023[5]. - The allowance for credit losses decreased to$25,453 thousand as of September 30, 2024, down from $35,893 thousand on December 31, 2023, indicating a reduction of approximately 29.1$8.4 million from the sale of a nonperforming specialty finance loan[192]. - The total charge-offs for the nine months ended September 30, 2024, amounted to $7,913,000, with commercial and industrial loans contributing$6,001,000 to this figure[67]. - The company recorded a recovery of credit losses of $6.2 million in Q3 2024, compared to a provision for credit losses of$11.1 million in Q3 2023[173]. Capital and Financing Activities - The company issued 53,922,000 shares from private placements, resulting in additional capital of $102,108 thousand[8]. - The company closed private placements in April and June 2024, raising gross proceeds of$150.0 million and $11.6 million, respectively[24]. - The net proceeds from the private placements amounted to$152.1 million, allocated based on the relative fair value method among common stock, Series C Preferred Stock, and stock warrants[34]. - The company expects the exchange of Series C Preferred Stock for common stock to be completed in the fourth quarter of 2024[24]. - The company has outstanding warrants to purchase 26,195,999 common shares, with exercise prices of $2.50 and$2.39 per share[149]. Loan Portfolio and Credit Quality - The Company reported a total of $2,180,413 thousand in gross loans as of September 30, 2024, down from$2,430,947 thousand as of December 31, 2023, indicating a decrease of approximately 10.3%[48]. - The total loans in risk grades 1-4 amounted to $196,370,000, while risk grades 5-6 totaled$47,325,000 as of December 31, 2023[65]. - The total amount of loans held for investment with risk grades 1 to 3 indicates a strong credit quality, with no loans classified as loss (risk grade 9) as of September 30, 2024[63]. - The company segments loans into risk categories based on borrowers' repayment ability, with independent third-party reviews validating management's risk grade assessments[52]. - Nonperforming loans decreased by $31.0 million from December 31, 2023, totaling$32.1 million as of September 30, 2024[196]. Regulatory Compliance and Legal Matters - The company consented to a consent order with the OCC, requiring a leverage ratio of 10.0% and a total capital ratio of 13.0%[22]. - The total capital ratio required by the Consent Order is 13.00%, and the Bank met this minimum capital ratio as of September 30, 2024[108]. - The Company submitted a three-year strategic plan focusing on remediation and compliance with the Consent Order, redefining its fintech business, and enhancing risk management[147]. - The company has ongoing legal matters, including a putative class action alleging violations of federal securities laws, with mediation scheduled for December 2024[136]. - The Company does not believe the restatements significantly impacted its financial condition as of September 30, 2024[154].