Blue Ridge Bankshares(US:BRBS)2024-08-06 20:13Financial Performance - Net interest income for the three months ended June 30, 2024, was $20,085 thousand, a decrease of 16.5% compared to $23,890 thousand for the same period in 2023[5]. - The net loss attributable to common shareholders for the three months ended June 30, 2024, was $(11,585) thousand, compared to $(8,613) thousand for the same period in 2023, reflecting an increase in losses[5]. - The company reported a comprehensive net loss of $(8,304) thousand for the three months ended June 30, 2024, compared to $(13,636) thousand for the same period in 2023, showing an improvement in overall loss[7]. - For the six months ended June 30, 2024, the company reported a net loss of $14,328,000[9]. - The company reported a net loss of $11.4 million, or ($0.47) per diluted common share, for the three months ended June 30, 2024, compared to a net loss of $8.6 million, or ($0.45) per diluted common share, for the same period in 2023[152]. - The net loss for the three and six months ended June 30, 2024 included a $6.7 million after-tax negative fair value adjustment for an equity investment in a fintech company[153]. Asset and Deposit Changes - Total assets decreased to $2,933,072 thousand as of June 30, 2024, down from $3,117,554 thousand on December 31, 2023, representing a decline of approximately 5.9%[4]. - Total deposits decreased to $2,325,839 thousand as of June 30, 2024, down from $2,566,032 thousand on December 31, 2023, a decline of approximately 9.4%[4]. - The company experienced a net decrease in demand, savings, and other interest-bearing deposits of $327,090,000 for the six months ended June 30, 2024, compared to a decrease of $109,471,000 in the same period of 2023[7]. - Total deposits as of June 30, 2024, were $2.33 billion, a net decrease of $240.2 million, with interest-bearing fintech deposits decreasing by $245.3 million[151]. - Fintech-related deposits comprised approximately $206.6 million, or 8.9%, of total deposits as of June 30, 2024, down from approximately $465.9 million, or 18.2%, as of December 31, 2023[188]. Credit Losses and Provisions - Provision for credit losses on loans was $3,600 thousand for the three months ended June 30, 2024, compared to $10,613 thousand for the same period in 2023, indicating a significant reduction in credit loss provisions[5]. - The allowance for credit losses decreased to $(28,036) thousand as of June 30, 2024, down from $(35,893) thousand on December 31, 2023, reflecting a more favorable credit environment[4]. - The provision for credit losses for the six months ended June 30, 2024, was $2,100 thousand, compared to $10,013 thousand for the same period in 2023, indicating a significant decrease of 79.0%[127]. - The company reported no loans classified as loss (risk grade 9) as of June 30, 2024, indicating a stable credit quality[66]. - The company’s ACL to total loans held for investment was 1.24% as of June 30, 2024, down from 1.48% at December 31, 2023[181]. Capital and Equity - The total balance of stockholders' equity at the end of the period was $325,614,000[12]. - The Company raised $152.5 million in net proceeds from Private Placements, which will be allocated to support strategic initiatives and enhance capital levels[33]. - As of June 30, 2024, the total risk-based capital for Blue Ridge Bank, N.A. was $367,696 thousand, representing a ratio of 15.18% to risk-weighted assets[113]. - The Tier 1 capital was $343,744 thousand, with a ratio of 14.19% to risk-weighted assets as of June 30, 2024[113]. - 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%[143]. Noninterest Income and Expenses - Noninterest income for the three months ended June 30, 2024, was $308 thousand, a significant decrease from $9,736 thousand for the same period in 2023[5]. - Total noninterest expense decreased to $29,344 thousand for the three months ended June 30, 2024, down from $34,052 thousand for the same period in 2023, indicating cost management efforts[5]. - Total noninterest income for Q2 2024 was $308 thousand, down 96.8% from $9.736 million in Q2 2023, primarily due to an $8.5 million negative fair value adjustment of an equity investment[164]. - Total noninterest expense for Q2 2024 was $29.344 million, a decrease of 13.8% from $34.052 million in Q2 2023[167]. Loan Portfolio and Performance - The Company reported a total of $2,259,279 thousand in gross loans as of June 30, 2024, a decrease from $2,430,947 thousand as of December 31, 2023[48]. - The total loans held for investment reached $2,258,443,000, with risk grades 1-4 accounting for $31,050,000[67]. - The company recorded total charge-offs of $12,610,000 for the three months ended June 30, 2024, compared to $9,020,000 for the same period in 2023[176]. - The commercial and industrial loan category represented 17.8% of total loans as of June 30, 2024, with an amount of $401,589,000[170]. - Total nonperforming loans decreased by $21.9 million from December 31, 2023, to $41.2 million as of June 30, 2024[182]. Regulatory and Compliance - The company is subject to various regulatory capital requirements, and failure to meet these can have a direct material effect on financial statements[108]. - The Company has established a formal liquidity contingency plan to manage liquidity under various stress scenarios[199]. - The Bank received FDIC approval to accept, renew, or rollover brokered deposits for a six-month period following the Consent Order[200]. Strategic Initiatives - The Company plans to reposition business lines and support organic growth as part of its near-term strategic initiatives[28]. - The Company intends to utilize proceeds from Private Placements and core deposit growth to offset funding outflows from the BaaS wind down[202].