UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) For the transition period from ___________ to ___________ Commission File Number: 001-39165 BLUE RIDGE BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 54-18 ...

Financial Performance - For Q1 2025, the company reported a net loss of $0.4 million, or $0.01 per diluted common share, an improvement from a net loss of $2.0 million in Q4 2024 and $2.9 million in Q1 2024[4]. - Total interest income for Q1 2025 was $35,350,000, a decrease of 6.8% from $37,932,000 in Q4 2024 and a decrease of 16.7% from $42,531,000 in Q1 2024[46]. - Net interest income after recovery of credit losses for Q1 2025 was $18,990,000, down 5.6% from $20,125,000 in Q4 2024 and down 11.1% from $21,349,000 in Q1 2024[46]. - Noninterest income for Q1 2025 was $3.1 million, a decrease of $1.3 million compared to Q4 2024, primarily due to lower residential mortgage banking income[30]. - The net loss for Q1 2025 was $434,000, an improvement from a net loss of $2,003,000 in Q4 2024 and a net loss of $2,893,000 in Q1 2024[46]. - The efficiency ratio for Q1 2025 was 104.0%, an improvement from 116.9% in Q4 2024[47]. - The return on average assets for Q1 2025 was -0.06%, an improvement from -0.28% in Q4 2024[47]. Asset and Deposit Management - Total assets decreased to $2.69 billion from $2.74 billion, primarily due to a decline in loans held for investment[20]. - Total assets decreased to $2,685,084,000 as of March 31, 2025, from $2,737,260,000 as of December 31, 2024[47]. - Loans held for investment were $2.06 billion as of March 31, 2025, down from $2.11 billion at December 31, 2024, reflecting a strategic reduction in assets[32]. - Total deposits decreased to $2.13 billion at March 31, 2025, a decline of $50.0 million from the previous quarter and $336.3 million year-over-year[33]. - Brokered deposits were $339.1 million at March 31, 2025, down $63.4 million from December 31, 2024, and down $174.8 million from March 31, 2024[34]. - Noninterest-bearing deposits represented 21.3% of total deposits as of March 31, 2025, compared to 20.8% at December 31, 2024[35]. - The loan-to-deposit ratio was 96.7% at March 31, 2025, slightly down from 96.9% at December 31, 2024[35]. Cost Management and Workforce Reduction - The company reduced its workforce by 91 employees, a 21% decrease since December 31, 2024, resulting in expected annualized cost savings of approximately $6 million[7]. - Noninterest expense decreased to $23.0 million in Q1 2025, down $2.7 million from Q4 2024 and $9.5 million from Q1 2024, mainly due to reduced salaries and employee benefits[31]. - Total noninterest expense for Q1 2025 was $22,951,000, a decrease of 10.5% from $25,640,000 in Q4 2024 and a decrease of 29.3% from $32,437,000 in Q1 2024[47]. Capital and Equity - The tier 1 leverage ratio improved to 12.33% and total risk-based capital ratio to 17.93% as of March 31, 2025, exceeding minimum capital requirements[16]. - Total stockholders' equity increased to $338,289,000 as of March 31, 2025, up from $327,788,000 as of December 31, 2024, representing a growth of 0.15%[48]. - Common stockholders' equity increased to $338,289,000 as of March 31, 2025, compared to $327,788,000 as of December 31, 2024, marking a growth of 3.4%[48]. - Tangible common equity (Non-GAAP) reached $335,549,000 for the three months ended March 31, 2025, compared to $324,790,000 for the previous quarter, reflecting a 3.3% increase[48]. - Tangible common equity to tangible total assets (Non-GAAP) improved to 12.5% as of March 31, 2025, up from 11.9% in the previous quarter[48]. Strategic Changes and Future Outlook - The company is transitioning to a more traditional community banking model, which includes a reduction in headcount and expenses related to regulatory compliance[31]. - The company anticipates ongoing challenges due to regulatory compliance and the wind down of fintech partnerships, which may impact future performance[40]. - The company expects to see positive results in core deposits and loans growth in the near-term quarters[9].

Core Points - The company reported a net loss of $0.4 million for Q1 2025, an improvement from a net loss of $2.0 million in Q4 2024 and $2.9 million in Q1 2024 [2][8][38] - Regulatory remediation efforts are progressing well, with no regulatory remediation expenses reported for Q1 2025, compared to $0.2 million and $2.1 million in the previous quarters [2][4][23] - The company is transitioning back to community banking, focusing on operational efficiencies and reducing staff by 21% since December 31, 2024, which is expected to save approximately $6 million annually [5][8][23] Financial Performance - Net interest income for Q1 2025 was $19.0 million, slightly down from $19.1 million in Q4 2024, primarily due to a decline in average loan balances [11][16][40] - The net interest margin improved to 2.90% in Q1 2025 from 2.80% in Q4 2024, driven by a reduction in funding costs [20][40] - Noninterest income increased to $3.1 million in Q1 2025 from $2.8 million in Q4 2024, despite a loss of $0.2 million on the sale of the mortgage division [22][24][40] Balance Sheet Highlights - Total assets decreased to $2.69 billion at the end of Q1 2025, down from $2.74 billion at the end of Q4 2024, mainly due to a decline in loans held for investment [26][27][40] - Total deposits were $2.13 billion, a decrease of $50 million from the previous quarter, with a notable decline in fintech-related deposits [27][28][40] - The company's tangible common equity to tangible total assets ratio improved to 12.5% from 11.9% in the prior quarter, reflecting a decline in total tangible assets [11][40] Capital and Liquidity - The company received regulatory non-objection to redeem a significant portion of its subordinated debt, which is expected to save over $2 million in annual interest expenses [4][5] - As of March 31, 2025, the bank's capital ratios exceeded the minimum requirements set forth in the Consent Order, indicating improved capital adequacy [11][40] - Sources of liquidity totaled $788.8 million, representing 182.9% of uninsured deposits, indicating a strong liquidity position [24][40]

Core Viewpoint - Blue Ridge Bankshares, Inc. has announced the sale of certain assets of its mortgage division, Monarch Mortgage, to an unrelated third-party mortgage company, as part of a strategic refocus on community banking [1][3]. Group 1: Transaction Details - Blue Ridge Bank has entered into a definitive asset purchase and sale agreement to sell assets of Monarch Mortgage, which provides mortgage banking services primarily for the secondary market [1]. - The transaction is expected to close by the end of the first quarter, pending customary closing conditions [1]. - Blue Ridge Bank will continue to manage loans in process and fulfill obligations to prospective borrowers during the transition [2]. Group 2: Strategic Rationale - The decision to exit the mortgage banking division aligns with the company's strategy to concentrate on community banking within its primary geographical footprint [3]. - The current interest rate environment necessitated additional investment in the mortgage banking line, which is not aligned with the company's near-term focus on profitability [3]. Group 3: Company Overview - Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc., offering a range of financial services including retail and commercial banking, investment and wealth management, and trust administration [4].

Financial Position - As of December 31, 2024, the Company had total assets of approximately $2.74 billion, total gross loans of approximately $2.11 billion, total deposits of approximately $2.18 billion, and stockholders' equity of approximately $327.8 million[16]. - The Company completed a merger with Bay Banks of Virginia, Inc., adding $1.22 billion in assets and $1.03 billion in deposits, expanding its operating footprint[21]. - As of December 31, 2024, the Bank's common equity Tier 1 capital ratio was 17.26%, exceeding the well-capitalized threshold[61]. - The Bank's Tier 1 capital to risk-weighted assets ratio was 16.38%, while the Company's was 17.24% as of December 31, 2024[61]. - The Bank's Tier 1 leverage ratio was 11.80%, exceeding the minimum requirement of 10.00%[62]. - The Company recorded expenses of $5.5 million and $5.1 million for FDIC insurance premiums in the years ended December 31, 2024 and 2023, respectively[55]. Capital Management - In the second quarter of 2024, the Company closed private placements for gross proceeds of $161.6 million, with net capital proceeds totaling $152.1 million after issuance costs[17][18]. - The Company intends to use the capital from the Private Placements to support organic growth and enhance capital levels, ensuring compliance with minimum capital ratios set by the OCC[19]. - The Bank is required to maintain a Tier 1 leverage ratio of 10.00% and a total capital ratio of 13.00%, which it met as of December 31, 2024[62]. - The Federal Reserve requires banks to maintain a capital conservation buffer of 2.50% above the minimum capital ratios[58]. - The Company is unlikely to resume dividend payments in the foreseeable future due to restrictions from the Consent Order and the need for written non-objection from the OCC[64]. Regulatory Compliance - The Bank is subject to a Consent Order requiring remediation of BSA/AML deficiencies and enhanced oversight of third-party partnerships[45]. - The Company is subject to extensive federal and state consumer protection laws, which mandate compliance to avoid penalties and potential regulatory approval issues for mergers or acquisitions[77]. - Compliance with anti-money laundering laws is costly and requires the Company to maintain robust policies and procedures to detect and report potential money laundering activities[83]. - The Company must adhere to the Office of Foreign Assets Control regulations, which involve blocking transactions with prohibited parties and reporting blocked transactions[84]. - The Dodd-Frank Act requires bank holding companies to act as a source of financial strength for their subsidiary banks, even during financial difficulties[71]. - The Company must inform and consult with the Federal Reserve before declaring dividends that exceed current operating earnings, which could adversely affect its capital structure[63]. Business Operations - The Company offers a variety of financial services, including retail and commercial banking, mortgage banking, and wealth management, contributing to its diverse revenue streams[12][14]. - The Company’s primary source of revenue is interest income from lending activities, supplemented by fees from various banking services[14]. - The Company has partnerships with fintech providers for indirect lending services, with active partnerships as of December 31, 2024, including Upgrade, Inc. and Best Egg, Inc.[15]. - The Company predominantly originates compliant qualified mortgages, which are entitled to a presumption of meeting ability-to-repay requirements[91]. - The Company operates twenty-seven full-service banking offices across Virginia and central North Carolina as of December 31, 2024[11]. Community Engagement - In 2024, the Company committed approximately $279 thousand in financial donations to community organizations[40]. - The Bank was rated "satisfactory" in its most recent Community Reinvestment Act evaluation, which assesses its record in meeting the credit needs of the communities served[80]. - The revised CRA regulations, effective January 1, 2026, will alter the assessment methodology and may make it more challenging for the Bank to achieve at least a "satisfactory" rating[81]. Cybersecurity and Data Protection - The Company must notify regulators of significant cybersecurity incidents within 36 hours of discovery[93]. - The Company faces ongoing cybersecurity threats due to the increasing use of internet and mobile banking[95]. - The Company must implement additional safeguards for information security as per the amended GLB Act's Safeguards Rule[94]. - The CFPB's new rule requires financial services providers to make certain data available to consumers upon request starting April 1, 2028[86]. Future Outlook and Challenges - Future legislation and regulation may significantly impact the regulatory structure under which the Company and the Bank operate[96]. - Changes in legislation could increase costs and impede the efficiency of internal business processes[96]. - Regulatory changes may require an increase in regulatory capital for the Company and the Bank[96]. - Modifications to business strategy may be necessary due to changes in statutes or regulations[96]. - The Company and the Bank's ability to pursue business opportunities efficiently may be limited by regulatory changes[96]. - A material adverse effect on the business, financial condition, and results of operations may result from changes in regulatory policies[96].

Core Viewpoint - Blue Ridge Bankshares, Inc. has reported a net loss for the fourth quarter of 2024, but has shown sequential improvement in deposit growth, reduction in noninterest expenses, and a decrease in nonperforming assets as part of its strategic repositioning away from fintech banking-as-a-service operations [1][2][3]. Financial Performance - For Q4 2024, the company reported a net loss of $2.0 million, or $0.03 per diluted common share, compared to a net income of $0.9 million in Q3 2024 and a net loss of $5.8 million in Q4 2023 [2][9]. - For the full year 2024, the net loss was $15.4 million, or $0.31 per diluted common share, significantly improved from a net loss of $51.8 million in 2023 [3][39]. Regulatory and Operational Initiatives - The company has successfully exited 45 fintech banking-as-a-service depository partnerships, reducing deposits from these sources by $445 million and decreasing reliance on wholesale funding by nearly $113 million [8]. - Regulatory remediation expenses decreased to $0.2 million in Q4 2024 from $2.5 million in Q4 2023, indicating progress in compliance efforts [2][3]. Asset Quality and Loan Portfolio - The nonperforming loans to total assets ratio improved to 0.93% at the end of Q4 2024, down from 1.09% in Q3 2024 and 2.02% at year-end 2023 [8][21]. - Loans held for investment decreased to $2.11 billion at year-end 2024, down from $2.43 billion at the end of 2023, reflecting a strategic reduction in asset levels [24][39]. Deposit Trends - Total deposits decreased to $2.18 billion at the end of Q4 2024, down $167.1 million from the previous quarter and $386.6 million year-over-year [25][39]. - Excluding fintech-related and wholesale deposits, total deposits increased by $28.1 million in Q4 2024 and $171.6 million for the full year [25][39]. Capital Position - The company's capital ratios improved, with the tier 1 leverage ratio at 12.43% and total risk-based capital ratio at 19.79% as of December 31, 2024, compared to lower ratios in the previous quarter [19][39]. - The tangible common equity to tangible total assets ratio was 11.9% at the end of Q4 2024, up from 10.6% in the prior quarter [19][39]. Noninterest Income and Expenses - Noninterest income for Q4 2024 was $2.8 million, slightly up from $2.7 million in Q3 2024 but down from $4.1 million in Q4 2023, primarily due to losses on the sale of mortgage servicing rights [22][23]. - Noninterest expenses decreased to $25.6 million in Q4 2024 from $26.5 million in Q3 2024 and $30.6 million in Q4 2023, driven by lower salaries and employee benefits [23][39].

Financial Performance - For Q4 2024, the company reported a net loss of $2.0 million, or $0.03 per diluted common share, compared to a net income of $0.9 million, or $0.01 per diluted common share in Q3 2024[4]. - For the full year 2024, the company reported a net loss of $15.4 million, or $0.31 per diluted common share, an improvement from a net loss of $51.8 million, or $2.73 per diluted common share in 2023[5]. - The company reported a net loss of $2,003 thousand for the three months ended December 31, 2024, compared to a net income of $946 thousand in the previous quarter and a net loss of $5,759 thousand in the same quarter last year[47]. - Basic and diluted loss per common share for the twelve months ended December 31, 2024, was $0.31, compared to a loss of $2.73 per share in 2023[48]. - Return on average assets was -0.28% in Q4 2024, compared to 0.13% in Q3 2024[49]. Asset and Deposit Management - Total assets decreased to $2.74 billion from $2.94 billion at the prior quarter end, primarily due to a reduction in cash balances and loans held for investment[21]. - Total deposit balances decreased to $2.18 billion, down $167.1 million from the prior quarter and $386.6 million from the prior year[25]. - Average balances of interest-bearing liabilities decreased by $99.6 million to $2.02 billion in Q4 2024, down $341.0 million from the year-ago quarter[26]. - Total assets decreased to $2,737,260 thousand as of December 31, 2024, down from $3,117,554 thousand in 2023, representing a decline of approximately 12.2%[46]. - Total deposits fell to $2,179,442,000, down 7.1% from $2,346,492,000 in Q3 2024[49]. Income and Expense Analysis - Net interest income remained stable at $19.1 million for both Q4 and Q3 2024, while net interest margin increased to 2.80% from 2.74%[15]. - Noninterest income was $2.8 million in Q4 2024, slightly up from $2.7 million in Q3 2024 but down from $4.1 million in Q4 2023[30]. - Noninterest expense decreased to $25.6 million in Q4 2024, down from $26.5 million in Q3 2024 and $30.6 million in Q4 2023[32]. - Total noninterest expense for the twelve months ended December 31, 2024, was $113,841 thousand, down from $157,937 thousand in 2023, a reduction of approximately 28.0%[48]. - Interest on deposits increased to $69,070 thousand for the twelve months ended December 31, 2024, compared to $59,969 thousand in 2023, reflecting an increase of approximately 15.5%[48]. Credit Quality and Loan Performance - Nonperforming loans improved to $25.5 million, or 0.93% of total assets, down from 1.09% in the prior quarter and 2.02% at year-end 2023[12]. - The allowance for credit losses as a percentage of total loans held for investment was 1.09% at quarter end, down from 1.17% in the prior quarter[12]. - The allowance for credit losses decreased to $23,023 thousand as of December 31, 2024, compared to $35,893 thousand in 2023, indicating an improvement in credit quality[46]. - The company experienced a recovery of credit losses of $5,100 thousand for the twelve months ended December 31, 2024, contrasting with a provision of $22,323 thousand in the previous year[48]. - Nonperforming loans to total loans ratio was 1.19%, down from 1.46% in Q3 2024, indicating improved asset quality[49]. Funding and Capital Ratios - The company reduced deposits from fintech banking-as-a-service partnerships by $445 million and decreased reliance on wholesale funding by nearly $113 million[9]. - The company's tier 1 leverage ratio improved to 12.43% at December 31, 2024, compared to 11.46% at the prior quarter end[16]. - Efficiency ratio improved slightly to 116.9% from 121.4% in the previous quarter[49]. - Average stockholders' equity to average assets ratio increased to 11.5% from 11.0% in the previous quarter, reflecting a stronger capital position[49].

Financial Performance - The company reported a net income of $946 thousand for the three months ended September 30, 2024, compared to a net loss of $41,371 thousand for the same period in 2023, indicating a significant turnaround[5]. - For the nine months ended September 30, 2024, Blue Ridge Bankshares reported a net loss of $13,382 thousand[8]. - The company reported comprehensive net income of $10,946 thousand for the three months ended September 30, 2024, compared to a comprehensive net loss of $48,889 thousand for the same period in 2023[7]. - Basic and diluted earnings per share for the three months ended September 30, 2024, was $0.01, compared to a loss of $2.18 per share for the same period in 2023[5]. - For the nine months ended September 30, 2024, the net loss was $13,382 thousand, compared to a net loss of $46,014 thousand for the same period in 2023[7]. Asset and Deposit Changes - Total assets decreased to $2,944,691 thousand as of September 30, 2024, down from $3,117,554 thousand on December 31, 2023, representing a decline of approximately 5.5%[4]. - Total deposits decreased to $2,346,492 thousand as of September 30, 2024, down from $2,566,032 thousand on December 31, 2023, reflecting a decline of approximately 8.6%[4]. - The company experienced a net decrease in demand, savings, and other interest-bearing deposits of $361,678 thousand for the current period[7]. - The total stockholders' equity at the end of the period was $336,347 thousand, reflecting an increase from the previous period[8]. - The total stockholders' equity increased by $150.4 million to $336.3 million as of September 30, 2024, mainly due to the closing of Private Placements in Q2 2024[158]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2024, was $19,101 thousand, a decrease of 13.4% compared to $22,192 thousand for the same period in 2023[5]. - Noninterest income for the three months ended September 30, 2024, was $2,739 thousand, a decrease from $7,415 thousand in the same period in 2023, representing a decline of approximately 63.1%[5]. - The company experienced a total noninterest expense of $26,495 thousand for the three months ended September 30, 2024, significantly lower than $64,621 thousand for the same period in 2023, indicating a reduction of approximately 58.9%[5]. - Total noninterest expense for the nine months ended September 30, 2024, was $88,314, an increase from $79,575 in the previous period[129]. - The effective income tax rate for the three months ended September 30, 2024, was 38.8%, compared to 10.2% for the same period in 2023[183]. Credit Losses and Provisions - The provision for credit losses was a recovery of $6,200 thousand for the three months ended September 30, 2024, compared to a provision of $11,050 thousand for the same period in 2023[5]. - The allowance for credit losses decreased to $25,453 thousand as of September 30, 2024, down from $35,893 thousand on December 31, 2023, indicating a reduction of approximately 29.1%[4]. - The company recorded a recovery of credit losses amounting to $8.4 million from the sale of a nonperforming specialty finance loan[192]. - The total charge-offs for the nine months ended September 30, 2024, amounted to $7,913,000, with commercial and industrial loans contributing $6,001,000 to this figure[67]. - The company recorded a recovery of credit losses of $6.2 million in Q3 2024, compared to a provision for credit losses of $11.1 million in Q3 2023[173]. Capital and Financing Activities - The company issued 53,922,000 shares from private placements, resulting in additional capital of $102,108 thousand[8]. - The company closed private placements in April and June 2024, raising gross proceeds of $150.0 million and $11.6 million, respectively[24]. - The net proceeds from the private placements amounted to $152.1 million, allocated based on the relative fair value method among common stock, Series C Preferred Stock, and stock warrants[34]. - The company expects the exchange of Series C Preferred Stock for common stock to be completed in the fourth quarter of 2024[24]. - The company has outstanding warrants to purchase 26,195,999 common shares, with exercise prices of $2.50 and $2.39 per share[149]. Loan Portfolio and Credit Quality - The Company reported a total of $2,180,413 thousand in gross loans as of September 30, 2024, down from $2,430,947 thousand as of December 31, 2023, indicating a decrease of approximately 10.3%[48]. - The total loans in risk grades 1-4 amounted to $196,370,000, while risk grades 5-6 totaled $47,325,000 as of December 31, 2023[65]. - The total amount of loans held for investment with risk grades 1 to 3 indicates a strong credit quality, with no loans classified as loss (risk grade 9) as of September 30, 2024[63]. - The company segments loans into risk categories based on borrowers' repayment ability, with independent third-party reviews validating management's risk grade assessments[52]. - Nonperforming loans decreased by $31.0 million from December 31, 2023, totaling $32.1 million as of September 30, 2024[196]. Regulatory Compliance and Legal Matters - The company consented to a consent order with the OCC, requiring a leverage ratio of 10.0% and a total capital ratio of 13.0%[22]. - The total capital ratio required by the Consent Order is 13.00%, and the Bank met this minimum capital ratio as of September 30, 2024[108]. - The Company submitted a three-year strategic plan focusing on remediation and compliance with the Consent Order, redefining its fintech business, and enhancing risk management[147]. - The company has ongoing legal matters, including a putative class action alleging violations of federal securities laws, with mediation scheduled for December 2024[136]. - The Company does not believe the restatements significantly impacted its financial condition as of September 30, 2024[154].

Net Income and Loss - Net income for Q3 2024 was $0.9 million, compared to a net loss of $11.4 million in Q2 2024 and a net loss of $41.4 million in Q3 2023[2] - Net loss for Q3 2024 was $13,382 thousand, compared to a net loss of $46,014 thousand in Q3 2023[48] - Net income improved to $0.9 million in Q3 2024 from a loss of $41.4 million in Q3 2023[49] Deposits - Deposits excluding fintech-related and wholesale deposits grew by $74 million in Q3 2024 and $144 million year-to-date[7] - Fintech BaaS deposits decreased to 3% of total deposits in Q3 2024, down from 18% year-over-year[5] - Total deposit balances increased to $2.35 billion in Q3 2024, up $20.7 million from Q2 2024[23] - Fintech-related deposits declined to $187.5 million in Q3 2024, down $19.2 million from Q2 2024 and $278.4 million year-to-date[24] - Total deposits increased by $20.7 million to $2.35 billion at September 30, 2024, but fintech BaaS deposits decreased by $108.8 million in the quarter[35] - Total deposits decreased to $2,346,492 thousand as of September 30, 2024, from $2,566,032 thousand at the end of 2023[46] - Total deposits decreased to $2.35 billion in Q3 2024 from $2.78 billion in Q3 2023[49] - Fintech BaaS deposits dropped significantly to $63.7 million in Q3 2024 from $493.0 million in Q3 2023[49] Loans and Credit Quality - Nonperforming loans to total assets ratio improved to 1.1% in Q3 2024, down from 1.4% in Q2 2024 and 2.5% in Q3 2023[8] - Loans held for investment decreased to $2.18 billion in Q3 2024, down $78.9 million from Q2 2024[22] - Loans held for investment decreased to $2.18 billion at September 30, 2024, from $2.26 billion at June 30, 2024, and $2.45 billion at September 30, 2023[34] - Loans held for investment, net of deferred fees and costs, decreased to $2,180,413 thousand as of September 30, 2024, from $2,430,947 thousand at the end of 2023[46] - Loans held for investment decreased to $2.18 billion in Q3 2024 from $2.45 billion in Q3 2023[49] - Nonperforming loans to total assets ratio improved to 1.09% in Q3 2024 from 2.51% in Q3 2023[49] - The company recorded a recovery of credit losses of $6.2 million in Q3 2024, compared to provisions of $3.1 million in Q2 2024 and $11.1 million in Q3 2023[31] - The company reported a recovery of credit losses of $4,100 thousand for the nine months ending September 30, 2024, compared to a provision of $19,553 thousand in the same period of 2023[48] Net Interest Income and Margin - Net interest income declined to $19.1 million in Q3 2024, with net interest margin decreasing to 2.74% from 2.79% in Q2 2024[17] - 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[26] - Net interest margin declined to 2.74% in Q3 2024 from 2.79% in Q2 2024 and 2.92% in Q3 2023[30] - Net interest income for Q3 2024 was $19,101 thousand, down from $22,192 thousand in Q3 2023[47] - Net interest income for Q3 2024 was $19.1 million, down from $22.2 million in Q3 2023[49] Noninterest Income and Expense - Noninterest expense decreased by nearly 10% sequentially in Q3 2024 and was approximately 30% lower than Q3 2023 excluding goodwill impairment[6] - Noninterest income was $2.7 million in Q3 2024, up from $0.3 million in Q2 2024 but down from $7.4 million in Q3 2023[32] - Noninterest expense decreased to $26.5 million in Q3 2024 from $29.3 million in Q2 2024 and $64.6 million in Q3 2023[33] - Total noninterest expense for Q3 2024 was $88,314 thousand, a decrease from $127,520 thousand in Q3 2023[48] - Noninterest income for Q3 2024 was $10,872 thousand, a significant decrease from $24,434 thousand in Q3 2023[48] Assets and Liquidity - Total assets increased to $2.94 billion in Q3 2024, up $11.6 million from Q2 2024[21] - Liquidity sources as of September 30, 2024, totaled approximately $805.0 million, or 202.7% of uninsured deposits[25] - Total assets decreased to $2,944,691 thousand as of September 30, 2024, compared to $3,117,554 thousand at the end of 2023[46] - Total assets decreased to $2.94 billion in Q3 2024 from $3.26 billion in Q3 2023[49] Interest-Earning Assets and Cost of Funds - Average balances of interest-earning assets decreased by $90.1 million to $2.80 billion in Q3 2024 compared to the prior quarter[27] - Cost of funds increased to 3.09% in Q3 2024 from 3.02% in Q2 2024 and 2.73% in Q3 2023[29] - Interest income from loans decreased to $34,747 thousand in Q3 2024, down from $38,551 thousand in Q3 2023[47] - Total interest income for the nine months ending September 30, 2024, was $122,387 thousand, down from $125,835 thousand in the same period of 2023[48] Efficiency and Equity Ratios - Efficiency ratio improved to 121.3% in Q3 2024 from 127.7% in Q3 2023[49] - Tangible common equity to tangible total assets ratio increased to 10.6% in Q3 2024 from 5.5% in Q3 2023[50] - Book value per common share increased to $4.30 in Q3 2024 from $9.53 in Q3 2023[49]

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]