Blue Ridge Bankshares(US:BRBS)2021-08-05 16:00Financial Performance - Net income for the three months ended June 30, 2021, was $28.6 million, or $1.54 per diluted common share, compared to $6.2 million, or $0.73 per diluted common share, for the same period in 2020 [254]. - For the six months ended June 30, 2021, net income was $32.9 million, or $1.94 per diluted common share, compared to $7.1 million, or $0.83 per diluted common share, for the same period in 2020 [256]. - The Company reported a gain of $24.3 million from the sale of over $700 million of loans originated under the Paycheck Protection Program (PPP) in the first half of 2021 [256]. - Noninterest income surged by 122.74% to $36.4 million for the three months ended June 30, 2021, compared to $16.4 million for the same period in 2020 [278]. - Total noninterest expense increased by 95.37% to $30.5 million for the three months ended June 30, 2021, compared to $15.6 million for the same period in 2020 [281]. Assets and Deposits - Total assets increased to $2.76 billion as of June 30, 2021, up $1.27 billion from $1.50 billion at December 31, 2020, primarily due to the Bay Banks Merger [250]. - Total deposits reached $2.19 billion, an increase of $1.25 billion from December 31, 2020, with $1.03 billion assumed from the Bay Banks Merger [251]. - The Company completed the merger with Bay Banks on January 31, 2021, which significantly contributed to the increase in total assets and deposits [243]. - The Company acquired approximately $1.03 billion of loans as a result of the Bay Banks Merger [287]. - The investment securities portfolio's fair value increased to $261.3 million as of June 30, 2021, up from $109.5 million at December 31, 2020, reflecting a growth of 141% [306]. Loans and Loan Losses - The loan portfolio as of June 30, 2021, totaled $1.86 billion, a significant increase from $1.03 billion as of December 31, 2020 [287]. - The allowance for loan losses (ALL) was $13.0 million as of June 30, 2021, compared to $13.8 million at the end of 2020 [299]. - The Company recorded no provision for loan losses for the six months ended June 30, 2021, compared to $4.1 million for the same period in 2020 [274]. - The ratio of Allowance for Loan Losses (ALL) to total loans held for investment, excluding PPP loans, decreased to 0.75% as of June 30, 2021, from 1.89% at the end of 2020 [305]. - The Company approved over 550 loan deferrals totaling $110.6 million during 2020 due to COVID-19 [292]. Interest Income and Expenses - Net interest income for the three months ended June 30, 2021, was $30.5 million, with a net interest margin of 3.82%, compared to $10.7 million and 3.19% for the same period in 2020 [260]. - Total interest income rose by $20.7 million for the three-month period ended June 30, 2021, primarily due to higher average loan balances, including PPP loans [264]. - Interest expense rose by $828 thousand to $3.4 million for the three months ended June 30, 2021, compared to $2.5 million for the same period in 2020 [265]. - Cost of funds decreased to 0.43% for the second quarter of 2021 from 0.76% for the second quarter of 2020 [265]. - Net interest margin improved to 3.82% for the second quarter of 2021, up from 3.19% in the same quarter of 2020 [266]. Mergers and Acquisitions - The FVCB Merger is expected to close in Q4 2021 or Q1 2022, with FVCB having total assets of $1.98 billion as of June 30, 2021 [242]. - The Company acquired approximately $79.5 million of securities at fair value as part of the Bay Banks Merger [306]. - The Company utilized the PPPLF offered by the FRB starting in the second quarter of 2020 to fund PPP loans, contributing to the increase in interest-bearing liabilities [265]. - The Company has future commitments outstanding totaling $7.8 million related to investments in fintech businesses as of June 30, 2021 [340]. - The Company had approved commitments to extend credit totaling $298.4 million as of June 30, 2021, an increase from $126.0 million as of December 31, 2020 [337]. Capital and Liquidity - Total risk-based capital was $271.4 million as of June 30, 2021, representing a ratio of 13.92%, exceeding the adequately capitalized requirement of 10.50% [335]. - Tier 1 capital was $257.994 million as of June 30, 2021, with a ratio of 13.24%, above the minimum requirement of 8.50% [335]. - The Company has established a formal liquidity contingency plan to manage liquidity effectively and stress tests its liquidity position under various scenarios [326]. - The Company had unsecured federal fund lines available totaling $79.0 million as of June 30, 2021, compared to $38.0 million as of December 31, 2020 [326]. - The Company had a credit line available of $452.4 million with the FHLB as of June 30, 2021, with outstanding advances totaling $125.0 million and letters of credit totaling $59.0 million [328].