Blue Ridge Bankshares(BRBS) - 2024 Q1 - Quarterly Results

Financial Performance - Net interest income for Q1 2024 was $20.3 million, a decline of $1.4 million from the prior quarter, with a net interest margin of 2.75% compared to 2.92% in Q4 2023[19][26] - Noninterest income increased to $7.8 million in Q1 2024, up from $4.1 million in the prior quarter, primarily due to fair value adjustments on mortgage servicing rights[22][28] - The company reported a net loss of $2.9 million, or $0.15 per diluted common share, an improvement from a net loss of $5.8 million, or $0.30 per diluted common share, in the prior quarter[34][38] - Noninterest expense rose to $32.5 million in the first quarter of 2024, an increase of $1.9 million from the prior quarter, primarily due to higher salaries and employee benefits[44] - The company reported a net loss of $2.893 million in Q1 2024, an improvement from a net loss of $5.759 million in Q1 2023[63] - The return on average assets improved to -0.37% in Q1 2024 from -0.73% in Q1 2023[63] - The efficiency ratio improved to 115.3% in Q1 2024, compared to 118.2% in Q1 2023[63] Asset Quality - The recovery of credit losses was $1.0 million in Q1 2024, compared to a provision for credit losses of $2.8 million in the prior quarter[8][27] - Nonperforming loans improved to $53.2 million, or 1.73% of total assets, down from $63.1 million, or 2.02% of total assets, in the prior quarter[16] - The allowance for credit losses as a percentage of total loans held for investment was 1.46% at quarter end, compared to 1.48% in the prior quarter[17] - Nonperforming assets to total assets ratio improved to 1.73% in Q1 2024, down from 2.02% in Q1 2023[64] - Nonperforming loans to total assets improved to 1.73% from 2.63% in the previous quarter, indicating a positive trend in asset quality[74] Deposits and Loans - Total deposit balances decreased by $100.3 million from the prior quarter, primarily due to a decline in fintech-related balances of $162.9 million[20] - Total deposits were $2.47 billion at March 31, 2024, a decrease of $100.3 million from the prior quarter and a decrease of $295.3 million from the year-ago period[52] - Fintech-related deposits decreased to $303.0 million at March 31, 2024, down from $465.9 million in the prior quarter, representing 12.3% of total deposits[42] - Loans held for investment were $2.39 billion, a decrease of $36.9 million from the prior quarter, as the bank reduced assets to meet liquidity needs[21][30] - The held for investment loan to deposit ratio was 97.1% at March 31, 2024, compared to 94.7% in the prior quarter and 88.8% a year ago[53] - Total deposits decreased to $2.466 billion as of March 31, 2024, from $2.566 billion a year earlier, a decline of 3.9%[63] - The company reported a net loan balance of $2,359,064 thousand, down from $2,395,054 thousand, indicating a decrease of about 1.51%[72] Capital and Funding - The company completed a private placement capital raise of $150 million to support business transformation efforts[2] - The company aims to reposition business lines and enhance capital levels in line with the minimum capital ratios set forth in the Consent Order[37] - The cost of funds increased to 3.03% in the first quarter of 2024, up from 2.91% in the prior quarter and 2.11% in the year-ago period[47] - FHLB borrowings increased to $280,000 thousand from $210,000 thousand, showing a significant rise of 33.33%[72] - The total stockholders' equity decreased to $180,906 thousand from $185,989 thousand, a decline of approximately 2.90%[72] - Tangible common equity was reported at $176,993 thousand, a slight decrease from $181,810 thousand in the previous quarter[75] - Book value per common share decreased to $9.24 from $9.69, reflecting a decline of approximately 4.65%[75] Interest Income - Total interest income was $42.5 million for the first quarter of 2024, slightly down from $43.2 million in the fourth quarter of 2023[45] - Interest income for Q1 2024 was $42.531 million, a decrease from $43.160 million in Q1 2023, representing a decline of 1.5%[63] - Net interest income after provision for loan losses increased to $21.349 million in Q1 2024 from $18.993 million in Q1 2023, a growth of 12.0%[63] - The yield on average loans held for investment was 6.29% for the first quarter of 2024, compared to 6.31% in the prior quarter and 5.88% a year ago[45] - Interest and fee income from fintech partnerships was approximately $1.7 million in Q1 2024, compared to $1.5 million in Q1 2023[66]