Blue Ridge Bankshares(US:BRBS)2023-08-06 16:00Financial 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].