Blue Ridge Bankshares, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a net income of $946,000 for the third quarter, a notable recovery from a net loss of $41.4 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $13.4 million, an improvement compared to a loss of $46.0 million in the prior year.
Total interest income for the third quarter decreased to $39.2 million from $42.5 million year-over-year, while net interest income fell to $19.1 million from $22.2 million. However, net interest income after the recovery of credit losses rose significantly to $25.3 million, compared to $11.1 million in the previous year. The company reported a recovery of credit losses of $8.4 million in Q3 2024, following the sale of a nonperforming specialty finance loan.
Total assets decreased to $2.94 billion as of September 30, 2024, down from $3.12 billion at the end of 2023. Loans held for investment also declined to $2.18 billion from $2.43 billion, with a notable decrease in commercial and industrial loans. Total deposits fell by $219.5 million to $2.35 billion, primarily due to a significant drop in fintech-related deposits, which decreased by $278.4 million.
The company’s total stockholders’ equity increased to $336.3 million, up from $186.0 million at the end of 2023, largely due to private placements that raised $152.1 million net of issuance costs. The conversion of preferred shares into common stock was completed in June 2024, further strengthening the equity base.
Noninterest income for the third quarter was $2.7 million, down from $7.4 million in the previous year, reflecting a decline in various income streams, including a significant drop in gains from the sale of guaranteed government loans. Total noninterest expense decreased sharply to $26.5 million from $64.6 million, primarily due to the absence of goodwill impairment and litigation costs that impacted the prior year.
The company remains in compliance with regulatory capital requirements, with total risk-based capital reported at $427.4 million, equating to a ratio of 19.26%. The bank's capital ratios exceeded the minimum required by a Consent Order issued by the OCC, which mandates a leverage ratio of 10.0% and a total capital ratio of 13.0%.
Overall, Blue Ridge Bankshares, Inc. has shown signs of recovery and strategic repositioning, focusing on enhancing capital levels and managing its loan portfolio amid challenging market conditions.
About BLUE RIDGE BANKSHARES, INC.
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