Blue Ridge Bankshares, Inc. Announces First Quarter 2023 Results – StreetInsider.com

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CHARLOTTESVILLE, Va., April 27, 2023 /PRNewswire/ — Blue Ridge Bankshares, Inc. (the “Company”) (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association (“Blue Ridge Bank” or the “Bank”) and BRB Financial Group, Inc. (“BRB Financial Group“), announced today financial results for the quarter ended March 31, 2023.

For the first quarter of 2023, the Company reported net income from continuing operations of $1.6 million, or $0.09 per diluted common share, compared to $6.3 million, or $0.33 per diluted common share, for the fourth quarter of 2022, and $17.4 million, or $0.93 per diluted common share, for the first quarter of 2022. 
Key Data Points In Light Of Recent Industry Events
A Message From Blue Ridge Bankshares, Inc. President and CEO, Brian Plum:
“Our team put in a fully committed effort in the first quarter of this year. We continued to work diligently in addressing issues cited in the OCC Formal Agreement, and the events of March allowed us to reinforce our commitment to customers and strengthen relationships.  We conservatively added additional funding to the balance sheet, which did create a negative impact on earnings in the last part of the quarter.
External regulatory remediation expenses of $1.1 million were incurred in the quarter. A decline in the fair value of our mortgage servicing rights of $1.8 million due to market conditions negatively impacted earnings, along with a $0.9 million expense related to the previous sale of Paycheck Protection Program loans.
The continued sharp increase in short-term interest rates has significantly impacted funding costs. A highly competitive environment became even more competitive following the events in March.  We will continue to aggressively pursue core deposit growth.  We reconfigured our market incentive plans coming into 2023 with the expectation of additional rate increases, and anticipate the behaviors spurred by that change will create positive short and long-term outcomes.
We are fully engaged and aware of the challenges that exist in financial services today.  Rapid interest rate increases of historic proportions following an extended period of a low-rate environment will create disruptions.  We will continue to zealously focus on our clients and the client experience, stay focused on our regulatory remediation, constantly calibrate our perspective, and look for additional areas to improve operating efficiencies through technology and the appropriate rightsizing and redeployment of resources across business lines.”
Q1 2023 Highlights
(Comparisons for Q1 2023 are relative to Q4 2022 unless otherwise noted.)
Income Statement
Net Interest Income
Net interest income was $27.4 million for the first quarter of 2023, compared to $34.0 million for the fourth quarter of 2022, and $23.7 million for the first quarter of 2022.  PAA attributable to the Company’s 2021 merger with Bay Banks added $1.0 million to net interest income for the first quarter of 2023, compared to $2.9 million for the fourth quarter of 2022, and $2.7 million for the first quarter of 2022.  Net interest income, adjusted for the impact of PAA, declined relative to the prior quarter due primarily to a lower net interest margin, partially offset by an increase in average interest-earning asset balances. 
Total interest income was $43.1 million for the first quarter of 2023, compared to $42.3 million for the fourth quarter of 2022, and $25.8 million for the first quarter of 2022.  The increase in interest income primarily reflected higher interest-earning asset balances, partially offset by lower beneficial impact from PAA.  Total interest expense was $15.7 million for the first quarter of 2023, compared to $8.3 million for the fourth quarter of 2022, and $2.1 million for the first quarter of 2022.  Higher interest expense reflected an increase in deposit costs and overall cost of funds, and a shift in the mix of average interest-bearing liabilities, primarily to higher cost time deposits from noninterest-bearing demand deposits. 
Average balances of interest-earning assets increased $247.6 million, or 8.8%, in the first quarter of 2023, from the fourth quarter of 2022, primarily due to higher average balances of loans held for investment, excluding PPP loans, and, to a lesser extent, higher average balances of interest-earning deposits in other banks.  These balances increased by $208.9 million and $28.6 million, respectively, over the same period.  Relative to the first quarter of 2022, average balances of interest-earning assets increased $616.4 million, or 25.2%, due primarily to higher average balances of loans held for investment, excluding PPP loans, which increased by $699.4 million, over the same period.
Yields on average loans held for investment, excluding PPP loans, were 6.24% for the first quarter of 2023, compared to 6.74% for the fourth quarter of 2022, and 5.09% for the first quarter of 2022.  The decline in loan yields relative to the prior quarter primarily reflects a lesser contribution from PAA and lower commercial loan fees.  The increase in loan yields relative to the prior year period primarily reflects the beneficial impact of higher interest rates on loans re-pricing and new loan growth at higher yields.
Average balances of interest-bearing liabilities increased $392.3 million, or 22.1%, in the first quarter of 2023, from the fourth quarter of 2022, primarily due to higher average balances of interest-bearing demand deposits, time deposits, and FHLB borrowings.  These balances increased by $187.6 million, $143.4 million, and $61.3 million, respectively, over the same period.  Relative to the first quarter of 2022, average balances of interest-bearing liabilities increased $537.2 million, or 32.9%, due to higher average balances of interest-bearing deposits and FHLB borrowings.
Cost of funds was 2.11% for the first quarter of 2023, compared to 1.22% for the fourth quarter of 2022, and 0.36% for the first quarter of 2022, while cost of deposits was 1.74%, 0.85%, and 0.27%, for the same respective periods.  Higher deposit and overall funding costs reflects higher market interest rates, higher interest costs related to FHLB borrowings (despite lower balances during the first quarter of 2023 relative to the prior quarter), and a shift in the mix of deposit funding, including an increase in higher cost time deposits and a decline in noninterest-bearing deposits. 
Net interest margin was 3.58% for the first quarter of 2023, compared to 4.83% for the fourth quarter of 2022, and 3.88% for the first quarter of 2022.  PAA added 13 basis points to net interest margin for the first quarter of 2023, compared to 41 basis points for the fourth quarter of 2022, and 53 basis points for the first quarter of 2022. The decline in net interest margin relative to the prior quarter was driven primarily by higher funding costs, less benefit from PAA, and lower commercial loan fees.  
Provision for Credit Losses
The Company recorded a provision for credit losses of $3.7 million for the first quarter of 2023, compared to $4.0 million for the fourth quarter of 2022, and $2.5 million for the first quarter of 2022.  Provision for loan losses across all periods was primarily attributable to specific reserves on collateral-dependent loans, quarterly loan growth, and changes in certain economic conditions or forecasts that impacted loss factors.
Noninterest Income
Noninterest income was $7.3 million for the first quarter of 2023, compared to $5.8 million for the fourth quarter of 2022, and $24.1 million for the first quarter of 2022.  Relative to both prior periods, noninterest income for the first quarter of 2023 reflects continued cyclical pressure on mortgage-related income and negative fair value adjustments to mortgage servicing rights, partially offset by a higher gain on sale of government guaranteed loans.  Results relative to the prior quarter also reflected a significant increase in other income, partially offset by lower bank and purchase card income.  Results for the year-ago period reflected $9.4 million of fair value adjustments for the Company’s equity investments, primarily in certain fintech companies; these fair value adjustments for equity investments represented 39% of total noninterest income in the first quarter of 2022.   
Noninterest Expense
Noninterest expense was $28.8 million for the first quarter of 2023, compared to $27.6 million for the fourth quarter of 2022, and $22.7 million for the first quarter of 2022.  Relative to the prior quarter, higher salaries and employee benefits costs reflected downward adjustments to the Company’s fourth quarter 2022 incentive accrual, leading to an unfavorable comparison relative to the first quarter of 2023, and higher headcount, excluding mortgage, primarily to support the Bank’s fintech business.  Salaries and benefits costs in the first quarter of 2023 were also impacted by first quarter salary adjustments.  These costs were partially offset by lower costs related to regulatory remediation.  Included in other noninterest expense was an approximate $0.9 million charge related to the previously sold PPP loan portfolio, which occurred in the second quarter of 2021.
Relative to the year-ago period, higher salaries and employee benefits costs reflected higher headcount, excluding mortgage, primarily to support the fintech business, higher costs related to data processing, legal and regulatory filing, communications, FDIC insurance, other contractual services, and regulatory remediation costs. 
Balance Sheet
Loans
Loans held-for-investment, excluding PPP loans, were $2.45 billion at March 31, 2023, an increase of $49.9 million, or 2.1%, from the prior quarter-end, and $605.6 million, or 32.9%, from the year-ago period-end.  Loan growth relative to the prior quarter-end was due primarily to growth in residential first mortgage balances.  Loan growth relative to the year-ago period was supplemented by the Company’s investment in its government guaranteed and middle market lending teams. 
Deposits
Deposits were $2.76 billion at March 31, 2023, an increase of $258.5 million, or 10.3%, from the prior quarter-end, and $407.0 million, or 17.3%, from the year-ago period.  Deposit growth relative to both prior periods reflected growth in time deposits, partially offset by lower noninterest-bearing demand deposit balances.  Noninterest-bearing deposits comprised 21.5% of total deposits as of March 31, 2023, compared to 25.6% as of December 31, 2022, and 32.6% as of March 31, 2022. 
The total loan-to-deposit ratio was 91.8% at March 31, 2023, compared to 99.1% at the prior quarter-end, and 81.0% at the year-ago period-end.  The held-for-investment loan-to-deposit ratio was 89.0%, compared to 96.3% at the prior quarter-end, and 79.3% at the year-ago period-end.
Capital
The Company previously announced that on April 6, 2023, its board of directors declared a $0.1225 per common share quarterly dividend, which will be paid on April 28, 2023, to shareholders of record as of April 18, 2023.
Blue Ridge Bank’s regulatory capital ratios as of March 31, 2023, were 11.12%, 10.06%, 10.06%, and 8.50% for total risk-based capital, tier 1 risk-based capital, common equity tier 1 risk-based capital, and tier 1 leverage, respectively, compared to 11.22%, 10.31%, 10.31%, and 9.25% as of December 31, 2022, and 13.29%, 12.69%, 12.69%, and 10.64% as of March 31, 2022. 
Fintech Business
Interest and fee income related to fintech partnerships represented approximately $2.9 million, $3.1 million, and $1.3 million of total revenue for the Company for the first quarter of 2023, the fourth quarter of 2022, and the first quarter of 2022, respectively.  Included in deposits related to fintech relationships were assets managed by BRB Financial Group’s trust division of $38.5 million as of March 31, 2023.
Other Matters
In the first quarter of 2022, the Company sold its majority interest in MoneyWise Payroll Solutions, Inc. (“MoneyWise”) to the holder of the minority interest in MoneyWise.  Asset and liability balances and income statement amounts related to MoneyWise are reported as discontinued operations for all periods presented.
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 it conducts operations; (ii) changes in the level of the Company’s nonperforming assets and charge-offs; (iii) management of risks inherent in the Company’s real estate loan portfolio, and the risk of a prolonged downturn in the real estate market, which could impair the value of collateral and the ability to sell collateral upon any foreclosure; (iv) the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Federal Reserve, inflation, interest rate, market, and monetary fluctuations; (v) changes in consumer spending and savings habits; (vi) the Company’s ability to identify, attract, and retain experienced management, relationship managers, and support personnel, particularly in a competitive labor environment; (vii) technological and social media changes impacting the Company, the Bank, and the financial services industry in general; (viii) changing bank regulatory conditions, laws, regulations, policies, or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, increased regulations, prohibition of certain income producing activities, or changes in the secondary market for loans and other products; (ix) 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; (x) the Company’s involvement, from time to time, in legal proceedings and examination and remedial actions by regulators; (xi) the impact of, and the ability to comply with, the terms of the formal written agreement between the Bank and the OCC; (xii) the impact of changes in laws, regulations, and policies affecting the real estate industry; (xiii) the effect of changes in accounting policies and practices, as may be adopted from time to time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, or other accounting standards setting bodies; (xiv) the impact of the COVID-19 pandemic, including the adverse impact on our business and operations and on the Company’s customers which may result, among other things, in increased delinquencies, defaults, foreclosures and losses on loans; (xv) the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues, and other catastrophic events; (xvi) geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the U.S. and abroad; (xvii) the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; (xviii) the willingness of users to substitute competitors’ products and services for the Company’s products and services; (xix) the Company’s inability to successfully manage growth or implement its growth strategy; (xx) reputational risk and potential adverse reactions of the Company’s customers, suppliers, employees or other business partners; (xxi) the effect of acquisitions the Company may make, including, without limitation, disruption of employee or customer relationships, and the failure to achieve the expected revenue growth and/or expense savings from such acquisitions; (xxii) the Company’s participation in the PPP established by the U.S. government and its administration of the loans and processing fees earned under the program; (xxiii) the Company’s involvement, from time to time, in legal proceedings, and examination and remedial actions by regulators; (xxiv) the Company’s potential exposure to fraud, negligence, computer theft, and cyber-crime; (xxv) the Bank’s ability to effectively manage its fintech partnerships, and the abilities of those fintech companies to perform as expected; (xxvi) the Bank’s ability to pay dividends to the Company; and (xxvii) other risks and factors identified in the “Risk Factors” sections and elsewhere in documents the Company files from time to time with the SEC.
¹ Non-GAAP financial measure. Further information can be found at the end of this press release. 
² The Company holds no ACL on PPP loans as they are fully guaranteed by the U.S. government.
 
Blue Ridge Bankshares, Inc.
Consolidated Statements of Income (unaudited)
For the Three Months Ended 
(Dollars in thousands, except per common share data)
March 31, 2023
December 31, 2022
March 31, 2022
Interest income:
Interest and fees on loans
$                            39,294
$                             38,934
$                            23,899
Interest on taxable securities
2,628
2,508
1,770
Interest on nontaxable securities
92
89
75
Interest on deposit accounts and federal funds sold
1,039
754
58
Total interest income
43,053
42,285
25,802
Interest expense:
Interest on deposits
11,331
5,131
1,556
Interest on subordinated notes
553
547
553
Interest on FHLB and FRB borrowings
3,810
2,651
25
Total interest expense
15,694
8,329
2,134
Net interest income
27,359
33,956
23,668
Provision for credit losses – loans
4,100
3,992
2,500
Provision for credit losses – unfunded commitments
(400)
—
—
     Total provision for credit losses
3,700
3,992
2,500
Net interest income after provision for credit losses
23,659
29,964
21,168
Noninterest income:
Fair value adjustments of other equity investments
(51)
78
9,364
Residential mortgage banking income, including MSRs
1,303
1,961
9,559
Gain on sale of government guaranteed loans
2,409
204
1,427
Wealth and trust management
432
451
391
Service charges on deposit accounts
343
293
315
Increase in cash surrender value of BOLI
282
402
272
Bank and purchase card, net
340
866
422
Other
2,225
1,585
2,344
Total noninterest income
7,283
5,840
24,094
Noninterest expense:
Salaries and employee benefits
15,289
11,863
14,096
Occupancy and equipment
1,569
1,509
1,485
Data processing
1,346
1,441
946
Legal
1,234
1,300
382
Advertising and marketing
286
318
428
Communications 
1,131
1,064
799
Audit and accounting fees
146
476
141
FDIC insurance
729
543
231
Intangible amortization
355
365
397
Other contractual services
939
1,334
534
Other taxes and assessments
802
716
570
Regulatory remediation
1,134
2,884
—
Merger-related
—
—
50
Other
3,887
3,739
2,630
Total noninterest expense
28,847
27,552
22,689
Income from continuing operations before income tax
2,095
8,252
22,573
Income tax expense
491
1,948
5,153
Net income from continuing operations
1,604
6,304
17,420
Discontinued operations:
Income from discontinued operations before income taxes 
—
—
426
Income tax expense
—
—
89
Net income from discontinued operations
—
—
337
Net income
$                              1,604
$                               6,304
$                            17,757
Net income from discontinued operations attributable to noncontrolling interest
—
—
(1)
Net income attributable to Blue Ridge Bankshares, Inc.
$                              1,604
$                               6,304
$                            17,756
Net income available to common stockholders
$                              1,604
$                               6,304
$                            17,756
Diluted EPS from continuing operations
$                                 0.09
$                                 0.33
$                                 0.93
 
Blue Ridge Bankshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except share data)
(unaudited)
March 31, 2023
December 31,
2022 (1)
Assets
Cash and due from banks
$             226,374
$               77,274
Federal funds sold
1,976
1,426
Securities available for sale, at fair value
351,990
354,341
Restricted equity investments
18,388
21,257
Other equity investments
22,960
23,776
Other investments
26,538
24,672
Loans held for sale
76,528
69,534
Paycheck Protection Program loans, net of deferred fees and costs
7,988
11,967
Loans held for investment, net of deferred fees and costs
2,448,992
2,399,092
Less: allowance for credit losses
(29,974)
(22,939)
Loans held for investment, net
2,419,018
2,376,153
Accrued interest receivable
14,915
12,393
Other real estate owned
—
195
Premises and equipment, net
23,244
23,152
Right-of-use asset
6,470
6,903
Bank owned life insurance
47,536
47,245
Goodwill
26,826
26,826
Other intangible assets
6,196
6,583
Mortgage servicing rights, net
27,095
28,991
Deferred tax asset, net
9,605
9,182
Other assets
21,264
19,175
Total assets
$          3,334,911
$          3,141,045
Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing demand
$             594,518
$             640,101
Interest-bearing demand and money market deposits
1,326,655
1,318,799
Savings
143,530
151,646
Time deposits
696,344
391,961
Total deposits
2,761,047
2,502,507
FHLB borrowings
239,100
311,700
FRB borrowings
—
51
Subordinated notes, net
39,904
39,920
Lease liability
7,398
7,860
Other liabilities
29,876
19,634
Total liabilities
3,077,325
2,881,672
Commitments and contingencies
Stockholders’ Equity:
Common stock, no par value; 50,000,000 shares authorized at March 31, 2023
and December 31, 2022; 18,942,091 and 18,950,329 shares issued and
outstanding at March 31, 2023 and December 31, 2022, respectively
196,498
195,960
Additional paid-in capital
252
252
Retained earnings
102,071
108,262
Accumulated other comprehensive loss, net of tax
(41,235)
(45,101)
Total stockholders’ equity
257,586
259,373
Total liabilities and stockholders’ equity
$          3,334,911
$          3,141,045
(1) Derived from audited December 31, 2022 Consolidated Financial Statements.
 
Blue Ridge Bankshares, Inc.
Quarter Summary of Selected Financial Data (unaudited)
As of and for the Three Months Ended
(Dollars and shares in thousands, except per common share data)
March 31,
December 31,
September 30,
June 30,
March 31,
Income Statement Data:
2023
2022
2022
2022
2022
Interest income
$                     43,053
$                     42,285
$                     33,146
$                     26,243
$                     25,802
Interest expense
15,694
8,329
4,469
2,153
2,134
Net interest income
27,359
33,956
28,677
24,090
23,668
Provision for credit losses
3,700
3,992
3,900
7,494
2,500
Net interest income after provision for loan losses
23,659
29,964
24,777
16,596
21,168
Noninterest income
7,283
5,840
7,968
10,190
24,094
Noninterest expenses
28,847
27,552
29,208
25,326
22,689
Income before income taxes
2,095
8,252
3,537
1,460
22,573
Income tax expense
491
1,948
801
342
5,153
Net income from continuing operations
1,604
6,304
2,736
1,118
17,420
Net income from discontinued operations
—
—
—
—
337
Net income
1,604
6,304
2,736
1,118
17,757
Net income from discontinued operations attributable to noncontrolling
interest
—
—
—
—
(1)
Net income attributable to Blue Ridge Bankshares, Inc.
$                      1,604
$                      6,304
$                      2,736
$                      1,118
$                     17,756
Per Common Share Data:
Basic EPS from continuing operations
$                        0.09
$                        0.33
$                        0.15
$                        0.06
$                        0.93
Basic EPS from discontinued operations 
—
—
—
—
0.02
Basic EPS attributable to Blue Ridge Bankshares, Inc. 
$                        0.09
$                        0.33
$                        0.15
$                        0.06
$                        0.95
Diluted EPS from continuing operations
$                        0.09
$                        0.33
$                        0.15
$                        0.06
$                        0.93
Diluted EPS from discontinued operations 
—
—
—
—
0.02
Diluted EPS attributable to Blue Ridge Bankshares, Inc. 
$                        0.09
$                        0.33
$                        0.15
$                        0.06
$                        0.95
Dividends declared per common share
$                    0.1225
$                    0.1225
$                    0.1225
$                    0.1225
$                    0.1225
Book value per common share 
13.60
13.69
13.22
13.95
14.84
Tangible book value per common share – Non-GAAP
11.93
12.00
11.51
12.21
13.09
Balance Sheet Data:
Assets
$                3,334,911
$                3,141,045
$                2,881,451
$                2,799,643
$                2,724,584
Average interest-earning assets
3,060,534
2,812,898
2,686,376
2,482,065
2,444,099
Loans held for investment (including PPP loans)
2,456,980
2,411,059
2,171,490
2,064,037
1,866,197
Loans held for investment (excluding PPP loans)
2,448,992
2,399,092
2,158,342
2,048,383
1,843,344
Allowance for credit losses  
29,974
22,939
20,534
17,242
12,013
Purchase accounting adjustments (discounts) on acquired loans
6,724
7,872
10,373
12,192
13,514
Loans held for sale
76,528
69,534
25,800
32,759
41,004
Securities available for sale, at fair value
351,990
354,341
359,516
381,536
375,484
Noninterest-bearing demand deposits
594,518
640,101
787,514
785,743
766,506
Total deposits
2,761,047
2,502,507
2,409,486
2,335,707
2,354,081
Subordinated notes, net 
39,904
39,920
39,937
39,953
39,970
FHLB and FRB advances
239,100
311,751
150,155
135,060
25,319
Average interest-bearing liabilities
2,169,643
1,777,391
1,771,246
1,627,423
1,632,444
Total stockholders’ equity
257,586
259,373
250,502
261,660
278,482
Weighted average common shares outstanding – basic 
18,856
18,857
18,849
18,767
18,772
Weighted average common shares outstanding – diluted
18,860
18,863
18,860
18,778
18,789
Financial Ratios:
Return on average assets (1)
0.20 %
0.83 %
0.38 %
0.17 %
2.68 %
Operating return on average assets (1) – Non-GAAP
0.31 %
1.14 %
0.81 %
0.23 %
2.68 %
Return on average equity (1)
2.47 %
9.56 %
4.10 %
1.57 %
25.84 %
Operating return on average equity (1) – Non-GAAP
3.85 %
13.01 %
8.86 %
2.14 %
25.92 %
Total loan to deposit ratio
91.8 %
99.1 %
91.2 %
89.8 %
81.0 %
Held for investment loan to deposit ratio
89.0 %
96.3 %
90.1 %
88.4 %
79.3 %
Net interest margin (1)
3.58 %
4.83 %
4.27 %
3.89 %
3.88 %
Cost of deposits (1)
1.74 %
0.85 %
0.50 %
0.26 %
0.27 %
Cost of funds (1)
2.11 %
1.22 %
0.69 %
0.36 %
0.36 %
Efficiency ratio
83.3 %
69.2 %
79.7 %
73.9 %
47.5 %
Operating efficiency ratio – Non-GAAP
80.0 %
62.0 %
68.7 %
72.4 %
47.4 %
Regulatory remediation expenses
1,134
2,884
4,025
510
23
Merger-related expenses (MRE)
—
—
—
—
50
Capital and Asset Quality Ratios:
Average stockholders’ equity to average assets
7.9 %
8.7 %
9.2 %
10.8 %
10.4 %
Allowance for credit losses to loans held for investment, excluding PPP
loans
1.22 %
0.96 %
0.95 %
0.84 %
0.65 %
Nonperforming loans to total assets
0.92 %
0.59 %
0.35 %
0.44 %
0.53 %
Nonperforming assets to total assets
0.92 %
0.60 %
0.36 %
0.44 %
0.53 %
Reconciliation of Non-GAAP Financial Measures (unaudited):
Tangible Common Equity:
Total stockholders’ equity 
$                   257,586
$                   259,373
$                   250,502
$                   261,660
$                   278,482
Less: Goodwill and other intangibles, net of deferred tax liability (2)
(31,637)
(32,027)
(32,369)
(32,632)
(32,716)
Tangible common equity (Non-GAAP)
$                   225,949
$                   227,346
$                   218,133
$                   229,028
$                   245,766
Total shares outstanding 
18,942
18,950
18,946
18,762
18,771
Book value per common share 
$                      13.60
$                      13.69
$                      13.22
$                      13.95
$                      14.84
Tangible book value per common share (Non-GAAP)
11.93
12.00
11.51
12.21
13.09
Tangible stockholders’ equity to tangible total assets
Total assets 
$                3,334,911
$                3,141,045
$                2,881,451
$                2,799,643
$                2,724,584
Less: Goodwill and other intangibles, net of deferred tax liability (2)
(31,637)
(32,027)
(32,369)
(32,632)
(32,716)
Tangible total assets (Non-GAAP)
$                3,303,274
$                3,109,018
$                2,849,082
$                2,767,011
$                2,691,868
Tangible common equity (Non-GAAP)
$                   225,949
$                   227,346
$                   218,133
$                   229,028
$                   245,766
Tangible stockholders’ equity to tangible total assets (Non-GAAP)
6.8 %
7.3 %
7.7 %
8.3 %
9.1 %
Operating return on average assets (annualized)
Net income 
$                      1,604
$                      6,304
$                      2,736
$                      1,118
$                     17,755
Add: MRE, after-tax basis (ATB) (3)
—
—
—
—
40
Add: Regulatory remediation expenses, ATB (3)
896
2,278
3,180
403
18
Operating net income (Non-GAAP)
$                      2,500
$                      8,582
$                      5,916
$                      1,521
$                     17,813
Average assets
$                3,270,110
$                3,020,371
$                2,903,447
$                2,646,874
$                2,653,987
Operating return on average assets (annualized) (Non-GAAP)
0.31 %
1.14 %
0.81 %
0.23 %
2.68 %
Operating return on average equity (annualized)
Net income 
$                      1,604
$                      6,304
$                      2,736
$                      1,118
$                     17,755
Add: MRE, ATB (3)
—
—
—
—
40
Add: Regulatory remediation expenses, ATB (3)
896
2,278
3,180
403
18
Operating net income (Non-GAAP)
$                      2,500
$                      8,582
$                      5,916
$                      1,521
$                     17,813
Average stockholders’ equity
$                   259,911
$                   263,826
$                   267,057
$                   284,913
$                   274,887
Operating return on average equity (annualized) (Non-GAAP)
3.85 %
13.01 %
8.86 %
2.14 %
25.92 %
Operating efficiency ratio
Total noninterest expense 
$                     28,847
$                     27,552
$                     29,208
$                     25,326
$                     22,691
Less: MRE
—
—
—
—
50
Less: Regulatory remediation expenses
1,134
2,884
4,025
510
23
Noninterest expense, adjusted (Non-GAAP)
$                     27,713
$                     24,668
$                     25,183
$                     24,816
$                     22,618
Net interest income 
27,359
33,956
28,677
24,090
23,668
Noninterest income
7,283
5,840
7,968
10,190
24,094
Total of net interest income and noninterest income
$                     34,642
$                     39,796
$                     36,645
$                     34,280
$                     47,762
Operating efficiency ratio (Non-GAAP)
80.0 %
62.0 %
68.7 %
72.4 %
47.4 %
(1) Annualized.
(2) Excludes mortgage servicing rights.
(3) Assumes an income tax rate of 21% and full deductibility.
 
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SOURCE Blue Ridge Bankshares, Inc.
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