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Blue Ridge Bankshares, Inc. Announces Third Quarter and Year-to-date 2021 Results

Company Release - 11/4/2021 4:26 PM ET

CHARLOTTESVILLE, Va., Nov. 4, 2021 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank") and BRB Financial Group, Inc., announced today financial results for the quarter and year-to-date periods ended September 30, 2021.  For the third quarter of 2021, the Company reported net income of $6.8 million, or $0.36 earnings per diluted common share, compared to $28.6 million, or $1.54 earnings per diluted common share, for the second quarter of 2021, and $5.1 million, or $0.59 earnings per diluted common share, for the third quarter of 2020.  For the nine months ended September 30, 2021, the Company reported net income of $39.7 million, or $2.26 earnings per diluted common share, compared to $12.1 million, or $1.42 earnings per diluted common share, for the same period of 2020.  Earnings per diluted common share for all periods presented is reflective of the 3-for-2 stock split effective April 30, 2021.  Net income for the nine months ended September 30, 2021 included an after-tax gain of $19.2 million resulting from the sale in second quarter of 2021 of over $700 million of loans originated under the Paycheck Protection Program ("PPP").  Net income for all periods presented also reflected merger-related expenses, as further discussed below. 

On January 31, 2021, the Company completed the merger of Bay Banks of Virginia, Inc. ("Bay Banks"), the holding company of Virginia Commonwealth Bank, into the Company.  Immediately following the completion of the merger, Virginia Commonwealth Bank was merged into Blue Ridge Bank (collectively, the "Bay Banks Merger").  Earnings for the first nine months of 2021 include the earnings of Bay Banks from the effective date of the merger. 

On July 14, 2021, the Company and FVCBankcorp, Inc. ("FVCB") jointly announced they had entered into a definitive agreement pursuant to which the companies will combine in an all-stock merger of equals (the "FVCB Merger").  The FVCB Merger is subject to customary closing conditions, including regulatory approvals and approval from the shareholders of both companies.  The Company has learned that the Office of the Comptroller of the Currency (the "OCC") identified certain regulatory concerns with Blue Ridge Bank that could impact the application process and timing of the FVCB Merger.  Blue Ridge Bank has already commenced an initiative intended to fully address the OCC's concerns.  The Company anticipates the FVCB Merger will close in the second or third quarter of 2022.

Net income for the third and second quarters of 2021 included approximately $1.1 million and $1.0 million, respectively, in after-tax expenses related to the Bay Banks Merger and the FVCB Merger, while earnings for the third quarter of 2020 included approximately $1.0 million in after-tax merger-related expenses.

"Our team had a productive third quarter," said Brian K. Plum, President and Chief Executive Officer.  "Loan pipelines are at historically high levels and our expectation is that will convert to higher loan balances.  The consolidation of five branch locations at quarter-end and growth in our fintech division's balances illustrate continued progress in improving our delivery channels to enhance our future customer experience."

"Mortgage volumes remain at elevated levels, though margin compression, particularly in wholesale mortgage, has negatively impacted mortgage division profitability," added Plum. 

Paycheck Protection Program

During 2021, the Company funded over 20,000 PPP loans with principal balances of approximately $730 million pursuant to the Economic Aid Act, passed at the end of December 2020 ("PPP2 loans").  Of the PPP2 loans, approximately 19,500 with principal balances of $712.6 million were sold on June 28, 2021.  Gross proceeds from the sale were $705.9 million, and the Company recorded a pre-tax gain of $24.3 million on the sale after giving effect to $30.9 million of unearned fees, net of deferred costs, and the sale discount.  As of September 30, 2021, the Company held $14.7 million of PPP2 loans, and unearned fees, net of deferred costs, totaled $676 thousand.  PPP2 loans, if not forgiven, have a five-year term and a stated interest rate of 1%.  As of September 30, 2021, the Company held $32.6 million of PPP loans funded in 2020, pursuant to the Coronavirus Aid, Relief, and Economic Security Act ("PPP1 loans").  PPP1 loans, if not forgiven, have a one- or five-year term, depending on origination date, and a stated interest rate of 1%.

Processing fees, net of costs, and interest income earned by the Company for PPP loans in the amounts of $712 thousand and $11.7 million were recognized as interest income in the third and second quarters of 2021, respectively, and the amount for the nine months ended September 30, 2021 was $16.9 million.  Net processing fees for PPP loans are being recognized over the expected life of these loans, which is one to three years depending on the original loan balance.

The Company's PPP loans are primarily funded using the Federal Reserve Bank's Paycheck Protection Program Liquidity Facility ("PPPLF").  As of September 30, 2021, outstanding advances under the PPPLF were $33.9 million.  The PPPLF provided funding for the full amount and term of the PPP loans at a fixed annual cost of 0.35%.  PPP loans do not count toward bank regulatory capital ratios. 

Fintech Business

The Company continues to grow its partnerships with fintech providers and ended the third quarter of 2021 with active partnerships, including Unit, Flexible Finance, Increase, Upgrade, Kashable, Jaris, Aeldra, Grow Credit, MentorWorks, and Marlette.  Loans and deposits related to fintech relationships were approximately $40.7 million and $76.6 million, respectively, as of September 30, 2021, compared to $10.3 million and $35.3 million, respectively, as of December 31, 2020.

Mortgage Division

The Company's mortgage division, which consists of a retail division operating as Monarch Mortgage and a wholesale division operating as LenderSelect Mortgage Group, recorded net income of $1.5 million for the third quarter of 2021 compared to $764 thousand for the second quarter of 2021.  Mortgage volumes for the third and the second quarters of 2021 were $325.9 million and $337.5 million, respectively.  Noninterest expenses recorded for the Company's mortgage division were $8.0 million and $8.9 million for the third and second quarters of 2021, respectively.

Balance Sheet

The Company reported total assets of $2.70 billion at September 30, 2021, an increase of $1.20 billion from $1.50 billion at December 31, 2020.  The increase in total assets was primarily due to the Bay Banks Merger, which increased assets by $1.22 billion at the effective date of the merger.  Loans held for investment, excluding PPP loans, increased $1.02 billion to $1.75 billion at September 30, 2021 from $732.9 million at December 31, 2020.  Loan growth in the third quarter of 2021 totaled $22.8 million.

Total deposits at September 30, 2021 were $2.20 billion, an increase of $1.26 billion from December 31, 2020, of which $1.03 billion were assumed in the Bay Banks Merger at the effective date of the merger.  The Company's expanding relationships with fintech partners have resulted in $41.3 million of deposit growth in the nine months ended September 30, 2021.

As previously noted, the majority of PPP loans were funded through the PPPLF, resulting in a decrease in Federal Reserve Bank of Richmond ("FRB") advances upon the sale of PPP2 loans in the second quarter of 2021.  Additionally, the Company redeemed its outstanding subordinated notes with initial aggregate principal balances of $10.0 million and $7.0 million in the second and third quarters of 2021, respectively. The Company assumed $31.9 million of subordinated debt in the Bay Banks Merger.

Income Statement

Net Interest Income

Net interest income was $21.1 million for the third quarter of 2021 compared to $30.5 million for the second quarter of 2021 and $11.8 million for the third quarter of 2020.  Included in interest income for the third quarter of 2021 were approximately $712 thousand in PPP fees, net of costs, and interest income, whereas in the second quarter of 2021, PPP fees, net of costs, and interest income were $11.7 million, a decrease of $11.0 million.  The decrease in net interest income on a sequential quarter basis was primarily attributable to the previously noted PPP2 loan sale on June 28, 2021.  Funding costs for PPP loans under the PPPLF were approximately $59 thousand and $382 thousand of interest expense for the third and second quarters of 2021, respectively.  Partially offsetting the decline in net interest income from PPP loans was greater interest income from fintech loans and higher balances of investments and lower borrowing costs.  Accretion of acquired loan discounts included in interest income in the third and second quarters of 2021 were $112 thousand and $886 thousand, respectively, while amortization of purchase accounting adjustments on assumed time deposits and borrowings were $886 thousand and $1.0 million in the same respective periods.

Net interest margin for the third quarter of 2021 was 3.32% compared to 3.82% for the second quarter of 2021 and 3.26% for the third quarter of 2020.  PPP loans, including the corresponding funding, had a 1, 56, and 23 basis point positive effect on the Company's net interest margin for the third quarter of 2021, second quarter of 2021, and third quarter of 2020, respectively.  Additionally, accretion and amortization of purchase accounting adjustments related to the Bay Banks Merger had a 16 and 22 basis point positive effect on net interest margin for the third and second quarters of 2021, respectively.  Excluding the impact of PPP and purchase accounting adjustments, the Company continues to experience a decline in net interest margin due to the replacement of higher priced loans and greater liquidity invested in lower yielding securities, partially offset by the re-pricing of higher priced term deposits and the reduction in subordinated notes.  Cost of deposits were 0.29% for the third and second quarters of 2021 and 0.64% for the third quarter of 2020.

Provision for Loan Losses

The Company recorded no provision for loan losses for the quarter and year-to-date periods ended September 30, 2021 compared to provision expense of $4.0 million and $8.1 million for the same respective periods of 2020.  In 2020, the Company increased its allowance for loan losses through the application of a qualitative factor in response to potential credit losses as a result of the COVID-19 pandemic.  The decline in the Company's allowance for loan losses in the nine months ended September 30, 2021 was due to the release of the COVID-19 factor, partially offset by organic loan growth, reserves for fintech related loans, and reserve needs for loans that have migrated from the Company's acquired loan pools.

Noninterest Income

Noninterest income for the third quarter of 2021 was $13.5 million compared to $36.4 million and $17.6 million for the second quarter of 2021 and the third quarter of 2020, respectively.  Noninterest income for the second quarter of 2021 included a net gain of $24.3 million realized on the sale of PPP loans.  Mortgage banking income, including mortgage servicing rights, contributed $9.5 million of noninterest income in the third quarter of 2021 compared to $9.0 million in the second quarter of 2021 and $16.0 million in the third quarter of 2020.  Other income in the third and second quarters of 2021 included $1.0 million and $640 thousand of fair value adjustments, respectively, for the Company's investments in certain fintech companies.  Noninterest income for the nine months ended September 30, 2021 and 2020 was $65.8 million and $38.8 million, respectively.  Excluding the gain on sale of PPP loans, noninterest income for the nine months ended September 30, 2021 was $41.4 million, a $2.6 million increase over the same period of 2020.

Noninterest Expense

Noninterest expense for the third and second quarters of 2021 was $25.6 million and $30.5 million, respectively, compared to $18.7 million for the third quarter of 2020.  Noninterest expenses added with the Bay Banks Merger are included since the effective date of the merger.  Merger-related expenses for the third and second quarters of 2021 and the third quarter of 2020 were $1.4 million, $1.2 million, and $1.3 million, respectively.  Salaries and employee benefit expenses decreased $2.9 million in the third quarter of 2021 from the second quarter of 2021, primarily due to greater incentive expenses recorded in the second quarter.  Also contributing to lower noninterest expenses in the third quarter of 2021 compared to the second quarter of 2021 were lower expenses in the Company's mortgage division.  Noninterest expense for the nine months ended September 30, 2021 and 2020 was $86.7 million and $45.5 million, respectively.  Included in these amounts were merger-related expenses of $11.7 million and $1.7 million for the same respective periods.

Asset Quality

Nonperforming loans, which include nonaccrual loans and loans 90 days or more past due and accruing interest1, totaled $15.2 million at September 30, 2021, an increase of $8.6 million from December 31, 2020.  The ratio of nonperforming loans to total assets was 0.56% as of September 30, 2021 and 0.44% as of December 31, 2020.  The Company's allowance for loan losses was $12.6 million at September 30, 2021, or 0.72% as a percentage of gross loans held for investment, excluding PPP loans, compared to 1.89% at December 31, 2020.  The Company holds no allowance for loan losses on PPP loans as they are fully guaranteed by the U.S. government.  The decrease in the allowance for loan losses as a percentage of gross loans held for investment since December 31, 2020 was primarily attributable to the loans acquired in the Bay Banks Merger, for which no allowance for loan losses carried over in the merger.  Remaining acquired loan discounts related to loans acquired in the Company's mergers were $17.0 million as of September 30, 2021 compared to $1.2 million as of December 31, 2020. 

1 Excluding purchased credit-impaired loans.

Capital

The Company previously announced that on September 15, 2021, its board of directors declared a $0.12 per common share quarterly dividend, payable October 29, 2021 to shareholders of record as of October 21, 2021.  Tangible book value per share, a non-GAAP (defined below) measure, was $12.69 and $10.03 as of September 30, 2021 and December 31, 2020, respectively.

Non-GAAP Financial Measures

The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry.  However, management uses certain non-GAAP measures to supplement the evaluation of the Company's performance.  Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses.  These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  Reconciliations of GAAP to non-GAAP measures are included at the end of this release.

Forward-Looking Statements

This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of the Company's beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or phases of similar meaning.  The Company cautions that the forward-looking statements are based largely on its expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements.

The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: (i) the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; (ii) geopolitical conditions, including acts or threats of terrorism, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; (iii) the effects of the COVID-19 pandemic, including the adverse impact on the Company's business and operations and on the Company's customers which may result, among other things, in increased delinquencies, defaults, foreclosures and losses on loans; (iv) the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues, and other catastrophic events; (v) the Company's management of risks inherent in its real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure; (vi) changes in consumer spending and savings habits; (vii) technological and social media changes; (viii) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; (ix) changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Company's subsidiary bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; (x) the impact of changes in financial services policies, laws and regulations, including laws, regulations and policies concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies; (xi) the impact of changes in laws, regulations and policies affecting the real estate industry; (xii) the effect of changes in accounting policies and practices, as may be adopted from time to time by bank regulatory agencies, the Securities and Exchange Commission (the "SEC"), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setting bodies; (xiii) the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; (xiv) the willingness of users to substitute competitors' products and services for the Company's products and services; (xv) expenses related to the FVCB Merger, unexpected delays related to the FVCB Merger, or the inability to obtain regulatory and shareholder approvals or satisfy other closing conditions required to complete the FVCB Merger within the expected time frame, or at all; (xvi) the businesses of the Company and FVCB may not be integrated successfully or such integration may be more difficult, time-consuming, or costly than expected; (xvii) customer and employee relationships and business operations may be disrupted by the Bay Banks Merger or the FVCB Merger; (xviii) the effects of the Bay Banks Merger, the FVCB Merger and other acquisitions the Company may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such transactions; (xix) changes in the level of the Company's nonperforming assets and charge-offs; (xx) the Company's involvement, from time to time, in legal proceedings and examination and remedial actions by regulators; (xxi) potential exposure to fraud, negligence, computer theft and cyber-crime; (xxii) the Company's ability to pay dividends; (xxiii) the Company's involvement as a participating lender in the PPP as administered through the Small Business Administration; and (xxiv) other risks and factors identified in the "Risk Factors" sections and elsewhere in documents the Company files from time to time with the SEC.

 

Blue Ridge Bankshares, Inc.









Consolidated Balance Sheets









(Dollars in thousands except share data)


(unaudited)

September
30, 2021



December
31, 2020 (2)


Assets









Cash and due from banks


$

53,077



$

117,945


Federal funds sold



144,376




775


Securities available for sale, at fair value



360,098




109,475


Restricted equity and other investments



19,343




11,173


Loans held for sale



144,111




148,209


Paycheck Protection Program loans, net of deferred fees and costs



46,648




288,533


Loans held for investment, net of deferred fees and costs



1,752,453




732,883


Less allowance for loan losses



(12,614)




(13,827)


Loans held for investment, net



1,739,839




719,056


Accrued interest receivable



9,900




5,428


Other real estate owned



227





Premises and equipment, net



26,963




14,831


Right-of-use asset



5,645




5,328


Bank owned life insurance



46,278




15,724


Goodwill



26,826




19,619


Other intangible assets



8,099




2,581


Mortgage derivative asset



3,456




5,293


Mortgage servicing rights, net



14,976




7,084


Mortgage brokerage receivable



4,316




8,516


Interest rate swap asset



5,838




1,716


Other assets



39,286




16,972


Total assets


$

2,699,302



$

1,498,258


Liabilities and Stockholders' Equity









Deposits:









Noninterest-bearing demand


$

684,859



$

333,051


Interest-bearing demand and money market deposits



828,477




282,263


Savings



144,904




78,352


Time deposits



541,964




251,443


Total deposits



2,200,204




945,109


FHLB borrowings



125,115




115,000


FRB borrowings



33,857




281,650


Subordinated notes, net



40,503




24,506


Lease liability



7,113




5,506


Interest rate swap liability



1,239




2,735


Other liabilities



21,551




15,552


Total liabilities



2,429,582




1,390,058


Commitments and contingencies









Stockholders' Equity:









Common stock, no par value; 25,000,000 shares authorized; 18,776,307 and

   8,577,932 shares issued and outstanding at September 30, 2021 and December 31, 2020,

   respectively (1)



193,770




66,771


Additional paid-in capital



252




252


Retained earnings



73,189




40,688


Accumulated other comprehensive income



2,283




264





269,494




107,975


Noncontrolling interest



226




225


Total stockholders' equity



269,720




108,200


Total liabilities and stockholders' equity


$

2,699,302



$

1,498,258








$


(1) Common stock as of the periods presented is reflective of the 3-for-2 stock split that was effective April 30, 2021.


(2) Derived from audited December 31, 2020 Consolidated Financial Statements.




























Blue Ridge Bankshares, Inc.













Consolidated Statements of Income (unaudited)















For the Three Months Ended


(Dollars in thousands except per share data)


September 30,
2021



June 30, 2021



September 30,
2020


Interest income:













Interest and fees on loans


$

22,294



$

32,591



$

13,780


Interest on taxable securities



1,317




1,133




634


Interest on nontaxable securities



61




64




30


Interest on deposit accounts and federal funds sold



82




24





Total interest income



23,754




33,812




14,444


Interest expense:













Interest on deposits



1,622




1,682




1,515


Interest on subordinated notes



644




868




411


Interest on FHLB and FRB borrowings



364




800




689


Total interest expense



2,630




3,350




2,615


Net interest income



21,124




30,462




11,829


Provision for loan losses









4,000


Net interest income after provision for loan losses



21,124




30,462




7,829


Noninterest income:













Gain on sale of Paycheck Protection Program loans






24,315





Residential mortgage banking income, net



7,704




7,254




14,400


Mortgage servicing rights



1,827




1,707




1,645


Gain on sale of government guaranteed loans



108




143




516


Wealth and trust management



499




833





Service charges on deposit accounts



376




370




215


Increase in cash surrender value of bank owned life insurance



278




237




94


Payroll processing



223




213




221


Bank and purchase card, net



497




299




211


Other



2,006




1,054




311


Total noninterest income



13,518




36,425




17,613


Noninterest expense:













Salaries and employee benefits



14,774




17,642




11,880


Occupancy and equipment



1,743




1,868




922


Data processing



893




1,534




656


Legal, issuer, and regulatory filing



372




489




291


Advertising and marketing



452




247




165


Communications



761




673




214


Audit and accounting fees



195




291




98


FDIC insurance



487




9




187


Intangible amortization



500




506




232


Other contractual services



633




666




516


Other taxes and assessments



547




1,078




280


Merger-related



1,441




1,237




1,264


Other



2,839




4,308




1,971


Total noninterest expense



25,637




30,548




18,676


Income before income tax



9,005




36,339




6,766


Income tax expense



2,199




7,697




1,707


Net income


$

6,806



$

28,642



$

5,059


Net loss attributable to noncontrolling interest



4




4




4


Net income attributable to Blue Ridge Bankshares, Inc.


$

6,810



$

28,646



$

5,063


Net income available to common stockholders


$

6,810



$

28,646



$

5,063


Basic and diluted earnings per common share (EPS) (1)


$

0.36



$

1.54



$

0.59















(1) EPS has been adjusted for all periods presented to reflect the 3-for-2 stock split that was effective April 30, 2021.






















 

Blue Ridge Bankshares, Inc.









Consolidated Statements of Income (unaudited)











For the Nine Months Ended


(Dollars in thousands except per share data)


September 30, 2021



September 30, 2020


Interest income:









Interest and fees on loans


$

76,248



$

35,766


Interest on taxable securities



3,580




2,147


Interest on nontaxable securities



177




119


Interest on deposit accounts and federal funds sold



137




2


Total interest income



80,142




38,034


Interest expense:









Interest on deposits



4,844




4,889


Interest on subordinated notes



2,142




854


Interest on FHLB and FRB borrowings



1,553




1,794


Total interest expense



8,539




7,537


Net interest income



71,603




30,497


Provision for loan losses






8,075


Net interest income after provision for loan losses



71,603




22,422


Noninterest income:









Gain on sale of Paycheck Protection Program loans



24,315





Residential mortgage banking income, net



24,259




31,969


Mortgage servicing rights



6,905




3,241


Gain on sale of government guaranteed loans



1,325




779


Wealth and trust management



1,934





Service charges on deposit accounts



1,073




669


Increase in cash surrender value of bank owned life insurance



679




278


Payroll processing



706




736


Bank and purchase card, net



1,096




483


Other



3,460




651


Total noninterest income



65,752




38,806


Noninterest expense:









Salaries and employee benefits



46,425




29,886


Occupancy and equipment



4,968




2,653


Data processing



3,272




1,649


Legal, issuer, and regulatory filing



1,437




781


Advertising and marketing



989




518


Communications



1,802




536


Audit and accounting fees



675




278


FDIC insurance



839




568


Intangible amortization



1,406




608


Other contractual services



2,152




870


Other taxes and assessments



1,973




748


Merger-related



11,697




1,710


Other



9,062




4,688


Total noninterest expense



86,697




45,493


Income before income tax



50,658




15,735


Income tax expense



10,973




3,618


Net income


$

39,685



$

12,117


Net income attributable to noncontrolling interest



(1)




(2)


Net income attributable to Blue Ridge Bankshares, Inc.


$

39,684



$

12,115


Net income available to common stockholders


$

39,684



$

12,115


Basic and diluted earnings per common share (EPS) (1)


$

2.26



$

1.42











(1) EPS has been adjusted for all periods presented to reflect the 3-for-2 stock split that was effective April 30, 2021.


 

Blue Ridge Bankshares, Inc.





















Five Quarter Summary of Selected Financial Data (unaudited)























As of and for the Three Months Ended





September 30,



June 30,



March 31,



December 31,



September 30,


(Dollars and shares in thousands, except share data)


2021



2021



2021



2020



2020


Income Statement Data:





















Interest income


$

23,754



$

33,812



$

22,576



$

16,426



$

14,444


Interest expense



2,630




3,350




2,559




2,412




2,615


Net interest income



21,124




30,462




20,017




14,014




11,829


Provision for loan losses












2,375




4,000


Net interest income after provision for loan losses



21,124




30,462




20,017




11,639




7,829


Noninterest income



13,518




36,425




15,809




17,436




17,611


Noninterest expenses



25,637




30,548




30,512




22,312




18,674


Income before income taxes



9,005




36,339




5,314




6,763




6,766


Income tax expense



2,199




7,697




1,077




1,182




1,707


Net income



6,806




28,642




4,237




5,581




5,059


Net loss (income) attributable to noncontrolling interest



4




4




(9)







4


Net income attributable to Blue Ridge Bankshares, Inc.


$

6,810



$

28,646



$

4,228



$

5,581



$

5,063


Per Common Share Data:





















Earnings per share - basic (2)


$

0.36



$

1.54



$

0.28



$

0.65



$

0.59


Earnings per share - diluted (2)



0.36




1.54




0.28




0.65




0.59


Dividends declared - post-stock split basis



0.240







0.195







0.095


Book value per common share (2)



14.48




14.32




12.88




12.61




11.65


Tangible book value per common share (2) - Non-GAAP



12.69




12.49




11.02




10.03




9.05


Balance Sheet Data:





















Assets


$

2,699,302



$

2,764,730



$

3,167,374



$

1,498,258



$

1,523,299


Loans held for investment (including PPP loans)



1,799,101




1,859,870




2,304,542




1,021,416




1,072,377


Loans held for investment (excluding PPP loans)



1,752,453




1,729,677




1,706,916




732,883




710,577


Allowance for loan losses



12,614




13,007




13,402




13,827




12,123


Purchase accounting adjustments (discounts) on acquired loans



16,985




16,987




18,691




1,248




1,372


Loans held for sale



144,111




146,985




122,453




148,209




159,925


Securities



379,441




276,619




293,555




120,648




123,329


Deposits



2,200,204




2,190,571




2,140,118




945,109




915,266


Subordinated notes, net



40,503




46,149




54,588




24,506




24,489


FHLB and FRB advances



158,972




222,502




692,789




396,650




459,611


Total stockholders' equity



269,720




266,826




239,734




108,200




99,930


Average common shares outstanding - basic (2)



18,776




18,625




15,137




8,579




8,579


Average common shares outstanding - diluted (2)



18,799




18,646




15,154




8,579




8,579


Financial Ratios:





















Return on average assets (1)



0.95

%



3.39

%



0.68

%



1.48

%



1.30

%

Operating return on average assets (1) - Non-GAAP



1.16

%



3.50

%



1.84

%



1.62

%



1.56

%

Return on average equity (1)



11.58

%



47.39

%



8.69

%



21.45

%



20.75

%

Operating return on average equity (1) - Non-GAAP



11.87

%



49.01

%



23.29

%



23.46

%



24.84

%

Total loan to deposit ratio



88.3

%



91.6

%



113.4

%



123.8

%



134.6

%

Held for investment loan to deposit ratio



81.8

%



84.9

%



107.7

%



108.1

%



117.2

%

Net interest margin (1)



3.32

%



3.82

%



3.43

%



3.88

%



3.26

%

Cost of deposits (1)



0.29

%



0.29

%



0.36

%



0.56

%



0.64

%

Efficiency ratio



74.0

%



45.7

%



85.2

%



70.9

%



63.4

%

Operating efficiency ratio - Non-GAAP



69.8

%



43.8

%



60.0

%



68.8

%



59.1

%

Merger-related expenses (MRE)



1,441




1,237




9,019




662




1,264


Capital and Asset Quality Ratios:





















Average stockholders' equity to average assets



9.7

%



7.1

%



7.9

%



6.9

%



6.3

%

Allowance for loan losses to loans held for investment, excluding PPP loans



0.72

%



0.75

%



0.79

%



1.89

%



1.71

%

Nonperforming loans to total assets



0.56

%



0.43

%



0.17

%



0.44

%



0.30

%

Nonperforming assets to total assets



0.57

%



0.45

%



0.19

%



0.44

%



0.30

%






















Reconciliation of Non-GAAP Financial Measures (unaudited):
























Tangible Common Equity:





















Total stockholders' equity


$

269,720



$

266,826



$

239,734



$

108,200



$

99,930


Less:  Goodwill and other intangibles, net of deferred tax liability (3)



(33,224)




(34,153)




(34,556)




(22,200)




(22,279)


Tangible common equity (Non-GAAP)


$

236,496



$

232,673



$

205,178



$

86,000



$

77,651


Total shares outstanding (2)



18,631




18,631




18,618




8,579




8,579


Book value per share


$

14.48



$

14.32



$

12.88



$

12.61



$

11.65


Tangible book value per share (Non-GAAP)



12.69




12.49




11.02




10.03




9.05























Tangible stockholders' equity to tangible total assets





















Total assets


$

2,699,302



$

2,764,730



$

3,167,374



$

1,498,258



$

1,523,299


Less:  Goodwill and other intangibles, net of deferred tax liability (3)



(33,224)




(34,153)




(34,556)




(22,200)




(22,279)


Tangible total assets (Non-GAAP)


$

2,666,078



$

2,730,577



$

3,132,818



$

1,476,058



$

1,501,020


Tangible common equity (Non-GAAP)


$

236,496



$

232,673



$

205,178



$

86,000



$

77,651


Tangible stockholders' equity to tangible total assets (Non-GAAP)



8.9

%



8.5

%



6.5

%



5.8

%



5.2

%






















Operating return on average assets (annualized)





















Net income


$

6,806



$

28,642



$

4,237



$

5,581



$

5,059


Add: MRE, after-tax basis (ATB) (4)



1,138




977




7,125




523




999


Operating net income (Non-GAAP)


$

7,944



$

29,619



$

11,362



$

6,104



$

6,058


Average assets


$

2,749,909



$

3,383,015



$

2,475,912



$

1,510,779



$

1,554,549


Operating return on average assets (annualized) (Non-GAAP)



1.16

%



3.50

%



1.84

%



1.62

%



1.56

%






















Operating return on average equity (annualized)





















Net income


$

6,806



$

28,642



$

4,237



$

5,581



$

5,059


Add: MRE, ATB (4)



1,138




977




7,125




523




999


Operating net income (Non-GAAP)


$

7,944



$

29,619



$

11,362



$

6,104



$

6,058


Average stockholders' equity


$

267,670



$

241,731



$

195,103



$

104,065



$

97,545


Operating return on average equity (annualized) (Non-GAAP)



11.87

%



49.01

%



23.29

%



23.46

%



24.84

%






















Operating efficiency ratio





















Total noninterest expense


$

25,637



$

30,548



$

30,512



$

22,312



$

18,674


Less: MRE



1,441




1,237




9,019




662




1,264


Noninterest expense excluding MRE (Non-GAAP)


$

24,196



$

29,311



$

21,493



$

21,650



$

17,410


Net interest income



21,124




30,462




20,017




14,014




11,829


Noninterest income



13,518




36,425




15,809




17,436




17,611


Total of net interest income and noninterest income



34,642




66,887




35,826




31,450




29,440


Operating efficiency ratio (Non-GAAP)



69.8

%



43.8

%



60.0

%



68.8

%



59.1

%






















(1) Annualized.



(2) Shares outstanding as of and for the periods stated are reflective of the 3-for-2 stock split that was effective April 30, 2021.



(3) Excludes mortgage servicing rights.



(4) Assumes an income tax rate of 21% and full deductibility.


























 

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SOURCE Blue Ridge Bankshares, Inc.

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