Blue Ridge Bankshares, Inc. Releases 2019 4th Quarter and Year End Results

CHARLOTTESVILLE, Va.Feb. 10, 2020 /PRNewswire/ — Blue Ridge Bankshares, Inc. (NYSEAM: BRBS) (the “Company”), parent company of Blue Ridge Bank, N.A., announced today its unaudited financial results for the fourth quarter and year ended December 31, 2019.  The Company reported net income of $4.8 million for the year ended December 31, 2019, or $1.16 per common share, compared to net income of $4.6 million, or $1.64 per common share, for the year ended December 31, 2018. The Company’s shares outstanding increased 2.8 million during 2019, 1.5 million from the common stock raise in early 2019 and an additional 1.3 million related to the acquisition of Virginia Community Bankshares, Inc. (“VCB”) in December 2019.  Earnings for the fourth quarter ended December 31, 2019 were $745 thousand, or $0.15 per common share, compared to net income of $986 thousand, or $0.35 per common share, for the fourth quarter ended December 31, 2018.  The Company declared a quarterly dividend of $0.1425 during the fourth quarter of 2019, an increase of 1.79% compared to the 2018 fourth quarter dividend of $0.1400 per share.  The dividend yield is 2.69% based on the closing share price of $21.19 on February 7, 2020.

Selected Highlights:

Closing on Acquisition of VCB:  The transaction closed on December 15, 2019.

Substantial Asset Growth:  Total assets increased $421.7 million, or 78.2%, during 2019, with $178.9 million, or 33.2%, representing growth prior to the acquisition of VCB.

Strong Loan Growth:  Total loans held for investment increased $232.0 million, or 56.0%, during 2019, with $59.1 million, or 14.3%, representing growth prior to the acquisition of VCB.  Loans held for sale increased $26.4 million, or 90.4%, during 2019.

Considerable Deposit Growth:  Total deposits increased $307.0 million, or 74.0%, during 2019, with $89.0 million, or 21.5%, representing growth prior to the acquisition of VCB.

“We ended the fourth quarter of 2019 on a momentous note, the closing on the acquisition of Virginia Community Bankshares, Inc.,” stated President and Chief Executive Officer Brian K. Plum.  “The Company recently completed the core integration of VCB into Blue Ridge Bank at the end of January 2020 and has been focused on ensuring a smooth transition for the VCB customer base.  We are excited to have this huge milestone completed and look forward to realizing the synergies from the combination of these two strong institutions in the coming quarters.”

Income Statement

Net interest income increased $4.1 million, or 23.6%, during the year ended December 31, 2019 compared to year ended December 31, 2018.  During the fourth quarter of 2019, net interest income was $5.9 million compared to $4.8 million during the fourth quarter of 2018, an increase of $1.1 million, or 22.9%.  Approximately $365 thousand of net interest income is related to the acquisition of VCB since the merger date.

The Company experienced significant growth in certain other income sources in 2019.  Earnings on investment in bank owned life insurance increased $769 thousand, or 383.5%, primarily due to the recognition of life insurance proceeds of approximately $700 thousand.  The combination of mortgage brokerage income and gain on sale of mortgages increased $7.2 million in 2019, or 99.0%, compared to 2018, and $1.1 million, or 44.6%, during the fourth quarter of 2019 compared to the fourth quarter of 2018.  This increase is largely attributable to a steady growth in volume throughout 2019 due to the expansion of the Company’s mortgage division in the latter part of 2018.  Approximately $438 thousand of net income for the year ended December 31, 2019 is attributable to the Company’s mortgage division compared to $404 thousand in 2018.

Salaries and employee benefit expenses increased $7.5 million, or 63.3%, for the year ended December 31, 2019.  This increase is primarily attributable to the expansion of the mortgage division as well as building the Company’s infrastructure to support continued growth.   Salaries and employee benefits for the fourth quarter of 2019 were $5.2 million compared to $3.7 million in the fourth quarter of 2018, an increase of $1.5 million, or 39.7%.

Occupancy expenses increased $923 thousand, or 57.2%, for the year ended December 31, 2019 compared to 2018.  Occupancy expenses were $670 thousand for the fourth quarter of 2019 compared to $498 thousand during the fourth quarter of 2018, an increase of $172 thousand, or 34.6%.  This increase is attributable to more leased locations to support the Company’s growth.  The Company did not pick up any additional leases of significance with the acquisition of VCB, as most of the locations were owned instead of leased.

Data processing costs increased by $792 thousand, or 71.3%, for the year ended December 31, 2019 compared to 2018.  Included in this increase were one-time costs associated with the core system integration related to the acquisition of VCB in the amount of $368 thousand.  Data processing costs for the fourth quarter of 2019 were $833 thousand compared to $308 thousand in the fourth quarter of 2018, an increase of $526 thousand, or 170.9%.

Other contractual services increased $1.4 million, or 253.7%, for the year ended December 31, 2019 compared to 2018.  Almost all of this increase was attributable to costs related to the acquisition of VCB, which totaled $1.3 million in this category.   Other contractual services for the fourth quarter 2019 were $825 thousand compared to $102 thousand in the fourth quarter of 2018, an increase of $723 thousand, or 707.9%.

Asset Quality

The Company’s provision for loan losses amounted to $1.7 million in 2019 compared to $1.2 million in 2018.  For the fourth quarter ended December 31, 2019, the Company added $277 thousand compared to $585 thousand in the fourth quarter of 2018.  The Company’s allowance provision does not consider the VCB loan portfolio as those loans were appropriately marked in accordance with U.S. generally accepted accounting principles (“GAAP”) as part of the purchase accounting for the merger.  Nonperforming loans and loans 90 days or more past due totaled $6.9 million, which includes VCB loans of $1.1 million, at December 31, 2019.  This same category of loans totaled $7.7 million at December 31, 2018.  The Company had no other real estate owned balances at December 31, 2019 and a balance of $134 thousand at December 31, 2018.

Financial Highlights (Unaudited)

Three Months Ended

Twelve Months Ended

12/31/2019

12/31/2018

12/31/2019

12/31/2018

(Dollars in thousands, except per share data)

Net income

$

745

$

986

$

4,816

$

4,573

Net income available to common stockholders

$

742

$

980

$

4,792

$

4,559

Earnings per Common Share

$

0.15

$

0.35

$

1.16

$

1.64

Dividend per Common Share

$

0.1425

$

0.1400

$

0.5700

$

0.5400

Key Ratios

Total stockholders’ equity to assets

9.63%

7.34%

9.63%

7.34%

Common stockholders’ equity to assets

9.60%

7.30%

9.60%

7.30%

Tangible common equity to tangible assets (1)

7.20%

6.61%

7.20%

6.61%

Net Interest Margin (bank level)

3.77%

4.05%

3.62%

4.06%

Return on Average Assets 

0.40%

0.82%

0.64%

0.95%

Return on Average Equity

4.51%

10.37%

7.29%

12.02%

Balance At

12/31/2019

12/31/2018

Total assets

$

961,263

$

539,590

Total tangible assets (1)

$

936,353

$

535,582

Net loans held for investment

$

642,261

$

411,288

Deposits

$

722,029

$

415,027

Total stockholders’ equity

$

92,549

$

39,620

Common stockholders’ equity

$

92,325

$

39,407

Tangible common equity (1)

$

67,415

$

35,400

Book value per common share

$

16.32

$

14.11

Tangible book value per common share (1)

$

11.91

$

12.68

Number of common stock shares outstanding

5,658,585

2,792,885

Number of weighted average common shares

      Outstanding

4,146,980

2,779,090

(1) Non-GAAP financial measure.  See GAAP to non-GAAP financial measure reconciliation at the end of this release.

Reconciliation of Non-GAAP Disclosures (Unaudited):

Tangible Common Equity:

2019

2018

Common equity (GAAP)

$          92,325

$          39,407

Less:  Goodwill and Amortizable Intangibles

(24,910)

(4,007)

Tangible Common equity (non-GAAP)

$          67,415

$          35,400

Tangible Assets:

Assets (GAAP)

$        961,263

$        539,589

Less:  Goodwill and Amortizable Intangibles

(24,910)

(4,007)

Tangible assets (non-GAAP)

$        936,353

$        535,582

Tangible Common Equity Ratio:

Total equity to assets (GAAP)

9.60%

7.30%

Tangible common equity to tangible assets (non-GAAP)

7.20%

6.61%

Tangible Book Value Per Share:

2019

2018

Common equity (GAAP)

$          92,325

$          39,407

Less:  Goodwill and Amortizable Intangibles

(24,910)

(4,007)

Tangible Common equity (non-GAAP)

$          67,415

$          35,400

Total Shares Outstanding

5,658,585

2,792,885

Book Value per Share (GAAP)

$            16.32

$            14.11

Tangible Book Value per Share (non-GAAP)

$            11.91

$            12.68

About Blue Ridge Bankshares, Inc.
Blue Ridge Bankshares, Inc. is a multi-state bank holding company headquartered in Charlottesville, Va. The Company is the parent company of Blue Ridge Bank, N.A., a client-centered financial services company offering commercial banking services throughout Virginia and North Carolina.  The bank offers mortgage services across the Mid-Atlantic and Southeast.  The bank also offers small business payroll services through Moneywise Payroll Solutions, qualified intermediary services through Exchangers, Ltd., and insurance services through Hammond Insurance Agency.  Visit www.mybrb.com for more information.

Non-GAAP Financial Measures
The accounting and reporting policies of the Company conform to 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 contains forward-looking statements regarding the Company. Forward-looking statements are typically identified by words such as “believe,” “expect”, “anticipate”, “intend”, “target”, “estimate”, “continue”, “positions”, “prospects”, “potential”, “would”, “should”, “could”, “will” or “may”. These statements include, without limitation, the Company’s expectations regarding its future financial performance. These forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time, and these statements may not be realized. The following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the businesses of the Company and/or VCB may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (2) expected revenue synergies and cost savings from the VCB merger may not be fully realized or realized within the expected timeframe; (3) revenues following the VCB merger may be lower than expected; (4) customer and employee relationships and business operations may be disrupted by the VCB merger; (5) changes in interest rates, general economic conditions, legislation and regulation, and monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury, Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System; (6) the quality and composition of the loan and securities portfolios, demand for loan products, deposit flows, competition, and demand for financial services in the Company’s market areas; (7) the implementation of new technologies, and the ability to develop and maintain secure and reliable electronic systems; (8) accounting principles, policies, and guidelines; and (9) other risk factors detailed from time to time in filings made by the Company with the Securities and Exchange Commission (“SEC”) and available on the SEC’s website at www.sec.gov. The Company undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise. 

BLUE RIDGE BANKSHARES, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Audited)

December 31,

December 31,

ASSETS

2019

2018

Cash and due from banks

$

60,026,071

$

15,025,651

Federal funds sold

480,000

546,000

Investment securities

128,896,819

58,750,128

Loans held for sale

55,646,215

29,233,325

Loans held for investment

646,833,864

414,867,966

   Allowance for loan losses 

(4,572,371)

(3,579,716)

   Net Loans Held for Investment

642,261,493

411,288,250

Bank premises and equipment, net 

13,650,556

3,343,030

Bank owned life insurance

14,734,261

8,454,893

Goodwill

21,192,137

2,694,164

Other assets

24,375,576

10,254,083

   Total Assets

$

961,263,128

$

539,589,524

LIABILITIES

Deposits

$

722,028,934

$

415,026,585

Other borrowed funds

124,800,000

73,100,000

Subordinated debt, net of issuance costs

9,800,434

9,766,554

Other liabilities

12,084,640

2,076,246

   Total liabilities

868,714,008

499,969,385

STOCKHOLDERS’ EQUITY

Common stock and surplus

66,456,282

16,703,995

Retained earnings

25,639,501

23,321,026

Accumulated other comprehensive income

229,051

(617,926)

   Total Stockholders’ Equity

92,324,834

39,407,095

Noncontrolling interest

224,286

213,044

   Total Equity

92,549,120

39,620,139

   Total Liabilities and Equity

$

961,263,128

$

539,589,524

BLUE RIDGE BANKSHARES, INC.

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

(Audited)

Year

Year

Ended

Ended

December 31, 2019

December 31, 2018

Interest Income

$

30,887,722

$

22,436,561

Interest Expense

9,519,618

5,151,805

   Net Interest Income

21,368,104

17,284,756

Provision For Loan Losses

1,742,248

1,225,000

   Net Interest Income after Provision for Loan Losses

19,625,856

16,059,756

Other Income

19,435,396

10,122,671

Other Expenses

32,854,400

20,462,573

   Income Before Income Taxes

6,206,852

5,719,854

Income Tax Expense

1,390,850

1,147,145

Net Income

4,816,002

4,572,709

Net Income attributable to noncontrolling interest

(24,242)

(13,440)

Net Income attributable to Blue Ridge Bankshares, Inc.

$

4,791,760

$

4,559,269

Net Income Available to Common Stockholders

$

4,791,760

$

4,559,269

   Earnings per Share

$

1.16

$

1.64

   Weighted Average Shares Outstanding

4,146,980

2,779,090

BLUE RIDGE BANKSHARES, INC.

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

(Unaudited)

Three Months

Three Months

Ended

Ended

December 31, 2019

December 31, 2018

Interest Income

$

8,457,264

$

6,373,548

Interest Expense

2,576,547

1,587,961

   Net Interest Income

5,880,717

4,785,587

Provision For Loan Losses

277,248

585,000

   Net Interest Income after Provision for Loan Losses

5,603,469

4,200,587

Other Income

5,180,280

3,114,018

Other Expenses

9,636,938

6,125,593

   Income Before Income Taxes

1,146,811

1,189,012

Income Tax Expense

401,554

203,399

Net Income

745,257

985,613

Net Income attributable to noncontrolling interest

(2,991)

(5,828)

Net Income attributable to Blue Ridge Bankshares, Inc.

$

742,266

$

979,785

Net Income Available to Common Stockholders

$

742,266

$

979,785

   Earnings per Share

$

0.15

$

0.35

   Weighted Average Shares Outstanding

4,588,271

2,795,303

SOURCE Blue Ridge Bankshares, Inc.

Related Links

http://www.mybrb.com

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