Blue Ridge Bankshares, Inc. Announces 2024 Second Quarter Results

Core Points - The company reported a net loss of $11.4 million for Q2 2024, compared to a net loss of $2.9 million in Q1 2024 and $8.6 million in Q2 2023, largely due to a $6.7 million after-tax negative fair value adjustment related to a fintech investment [2][5][21] - The company is winding down its fintech Banking-as-a-Service (BaaS) operations, with BaaS deposits now representing approximately 7% of total deposits, a significant decrease from the previous year [5][9] - A capital raise of $161.6 million was completed through private placements to support business transformation and meet regulatory capital requirements [5][18] Financial Performance - Net interest income for Q2 2024 was $20.1 million, a slight decline from $20.3 million in Q1 2024, primarily due to reduced average balances of interest-earning assets [2][8] - Noninterest income dropped to $0.3 million in Q2 2024 from $7.8 million in Q1 2024, mainly due to a negative fair value adjustment of $8.5 million on an equity investment [3][21] - Noninterest expenses decreased to $29.3 million in Q2 2024 from $32.5 million in Q1 2024, attributed to lower salaries and regulatory remediation expenses [3][21] Asset Quality - The provision for credit losses was $3.1 million in Q2 2024, compared to a recovery of $1.0 million in Q1 2024, reflecting increased reserves for certain purchased loans [3][21] - Nonperforming loans improved to $46.0 million, or 1.57% of total assets, down from $53.2 million, or 1.73%, in the prior quarter [7][27] - The allowance for credit losses as a percentage of total loans held for investment was 1.24% at the end of Q2 2024, down from 1.46% in the previous quarter [3][27] Capital and Liquidity - The company's tangible common stockholders' equity to tangible total assets ratio improved to 10.3% from 5.8% in the prior quarter, reflecting the recent capital raise [3][27] - As of June 30, 2024, the bank's tier 1 leverage ratio and total risk-based capital ratio exceeded the minimum capital ratios set forth in the Consent Order [3][18] - Total assets decreased to $2.93 billion from $3.08 billion in the prior quarter, as the bank reduced assets to meet liquidity needs [3][9]