Blue Ridge Bankshares, Inc. Announces 2024 Third Quarter Results

Core Insights - Blue Ridge Bankshares, Inc. reported a net income of $0.9 million for Q3 2024, a significant recovery from a net loss of $11.4 million in Q2 2024 and $41.4 million in Q3 2023 [1][3][9] - The company is on track to exit its fintech banking-as-a-service operations by the end of 2024, with fintech-related deposits decreasing from 18% to 3% of total deposits year-over-year [2][3] - Regulatory remediation efforts are progressing, with a focus on operational efficiency and positioning for future growth [2][3] Financial Performance - Net interest income for Q3 2024 was $19.1 million, down from $20.1 million in Q2 2024 and $22.2 million in Q3 2023 [5][9] - Noninterest income increased to $2.7 million in Q3 2024 from $0.3 million in Q2 2024, primarily due to the absence of a negative fair value adjustment recorded in the previous quarter [6][9] - Noninterest expenses decreased to $26.5 million in Q3 2024 from $29.3 million in Q2 2024 and $64.6 million in Q3 2023, reflecting cost-cutting measures [6][9] Asset Quality - Nonperforming loans improved to 1.1% of total assets at the end of Q3 2024, down from 1.4% in Q2 2024 and 2.5% in Q3 2023 [2][3][10] - The allowance for credit losses as a percentage of total loans held for investment was 1.17% at quarter-end, compared to 1.24% in the prior quarter [3][10] Capital Position - The ratio of tangible common stockholders' equity to tangible total assets increased to 10.6% at the end of Q3 2024 from 10.3% in the prior quarter [4][10] - The bank's capital ratios exceeded the minimum requirements set forth in the Consent Order with the Office of the Comptroller of the Currency [4][10] Balance Sheet Highlights - Total assets increased to $2.94 billion from $2.93 billion in the prior quarter, primarily due to higher cash balances [8][11] - Total deposits rose to $2.35 billion, with a $73.7 million increase in deposits excluding fintech-related and wholesale deposits [8][11] - Loans held for investment decreased to $2.18 billion, down from $2.26 billion in the prior quarter [11][19]