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

Financial Performance - The company reported a net loss of $2,893 thousand for the three months ended March 31, 2024, compared to retained earnings of $33,157 thousand at the end of the previous period[83]. - Net loss for the three months ended March 31, 2024, was $2,893,000, resulting in a basic and diluted loss per share of $0.15[211]. - Net interest income for the three months ended March 31, 2024, was $20,723,000, after a provision for credit losses of $1,000,000[212]. - Total noninterest income for the three months ended March 31, 2024, was $7,825,000[212]. - Total noninterest expense for the three months ended March 31, 2024, was $32,474,000[212]. Asset and Liability Changes - As of March 31, 2024, total assets decreased to $3,076,187 thousand from $3,117,554 thousand as of December 31, 2023, representing a decline of approximately 1.3%[78]. - The company’s total liabilities decreased to $2,895,281 thousand from $2,931,565 thousand, a decline of approximately 1.2%[78]. - Stockholders' equity decreased to $180,906 thousand from $185,989 thousand, reflecting a decline of approximately 2.3%[78]. - The company’s cash and due from banks increased to $117,464 thousand from $110,491 thousand, an increase of approximately 6.5%[78]. Deposits and Loans - Total deposits decreased to $2,465,776 thousand, down from $2,566,032 thousand, a reduction of about 3.9%[78]. - Loans held for investment net of deferred fees and costs decreased to $2,359,064 thousand from $2,395,054 thousand, a decline of approximately 1.5%[78]. - The company reported total loans of $2,318,432 thousand as of March 31, 2024, a decrease from $2,394,089 thousand as of December 31, 2023, representing a decline of approximately 3.2%[122]. - The total loans past due (30-59 days) were reported at $19,976 thousand as of March 31, 2024, compared to $14,282 thousand as of December 31, 2023, marking an increase of approximately 40.5%[122]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses decreased to $35,025 thousand from $35,893 thousand, a reduction of about 2.4%[78]. - The total nonaccrual loans amounted to $50.9 million as of March 31, 2024, with $48.4 million classified as having an allowance for credit losses (ACL)[106]. - The company is actively monitoring loans classified as Risk Grade 5 (Watch) and Risk Grade 7 (Substandard) for potential financial distress among borrowers[126][127]. - The company maintained no loans classified as loss (risk grade 9) as of March 31, 2024[157]. Securities and Investments - The company pledged securities with a par value of $69.0 million as collateral for the Bank Term Funding Program established by the Federal Reserve[97]. - The company’s securities available for sale at fair value decreased to $314,394 thousand from $321,081 thousand, a decrease of about 2.1%[78]. - As of March 31, 2024, the total amortized cost of the company's securities was $375.9 million, with a fair value of $314.4 million, indicating a decrease in fair value of approximately 16.3%[98]. - The company holds investments in early-stage focused investment funds totaling $26.6 million as of March 31, 2024, down from $29.5 million at December 31, 2023[101]. Capital and Regulatory Compliance - The Bank's total risk-based capital was $270.2 million, with a leverage ratio of 10.25% and a total capital ratio of 13.00%[186]. - The Bank did not meet the minimum capital requirements of a leverage ratio of 10.00% and a total capital ratio of 13.00% as of March 31, 2024, and December 31, 2023[184]. - The company received $100.0 million from a private placement, which is assumed to be contributed as tier 1 capital to the bank[218]. - The company plans to use net proceeds from a private placement to reposition business lines and enhance capital levels[112]. Legal and Settlement Matters - The company has agreed to a settlement payment of $6.0 million related to the VCB ESOP litigation, with $5.95 million due after final court approval[215]. - The company believes the claims from a purported class action lawsuit are without merit and has not accrued any loss for this lawsuit as of March 31, 2024[214]. - The court granted preliminary approval of the settlement agreement on February 22, 2024, with a final hearing scheduled for early June 2024[215].