Blue Ridge Bankshares, Inc. · AMEX:BRBS
Blue Ridge Bankshares — Investor Presentation (December 2023)
27 slides from Blue Ridge Bankshares's investor presentation, Dec 22, 2023
Slide 1: Blue Ridge Bankshares, Inc. Investor Presentation
©2023 Blue Ridge Bank, N.A. All Rights Reserved. Blue Ridge Bankshares, Inc. (NYSE American: BRBS) December 22, 2023 MYBRB.BANK Exhibit 99.2
Slide 2: Disclosure: Forward-Looking Statements
DISCLOSURE Forward-Looking Statements This presentation of Blue Ridge Bankshares, Inc. (the “Company” or “Blue Ridge”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectiv
Slide 3: Disclosure (Cont.): Information Regarding Disclosures
DISCLOSURE (CONT.) Information Regarding Disclosures Blue Ridge Bankshares, Inc. (the “Company” or “Blue Ridge”) is offering its securities (collectively, the “Securities”) in a proposed private placement (the “Offering”). The Securities have not and will not be registered under the Securities Act o
Slide 4: Blue Ridge Bankshares at a Glance
BLUE RIDGE BANKSHARES, AT A GLANCE Deposit market share data as of June 30, 2023; Excludes Capital One Financial Corporation Reflects data as of September 30, 2023 Reflects data as of December 21, 2023 Source: S&P Capital IQ Pro (27 branches) (16 offices from Maryland to South Carolina) Winchester W
Slide 5: Considerations for an Investment in Blue Ridge
CONSIDERATIONS FOR AN INVESTMENT IN BLUE RIDGE Blue Ridge Bank represents the 7th largest Virginia-based bank by deposit market share³. Dislocation of Virginia banks leaves a limited number of statewide franchises of meaningful size. Target business model to accelerate earnings profile through captu
Slide 6: Corporate Objectives for Blue Ridge
CORPORATE OBJECTIVES FOR BLUE RIDGE Progress Long-Term Goals 3 Near-Term Initiatives 2 1 OCC Remediation & Banking as a Service (BaaS): Initial Bank Secrecy Act (BSA) look-back completed; BSA remediation continues Reduced BaaS customer accounts by closing inactive/non-conforming accounts, which decr
Slide 7: Our Service Offerings and Business Lines
OUR SERVICE OFFERINGS AND BUSINESS LINES Commercial Banking Corporate & Purchasing Cards Employee Benefits Deposit Services Treasury Services Anticipated Core Focus Managed Level of Growth De-emphasize Retail Banking Fintech Consumer & Private Banking Personal Credit Cards BRB Financial Group Wealth
Slide 8: Scarcity Value for High Quality Virginia Markets
SCARCITY VALUE FOR HIGH QUALITY VIRGINIA MARKETS Small business defined as less than $40 million in annual revenue per the US Census Includes branches in MSAs and neighboring areas; Deposit totals as of June 30, 2023 Includes Charlotte, Fredericksburg, Harrisonburg, Luray, Martinsville, Northern Nec
Slide 9: Scarcity Value for High Quality Virginia Markets (Cont.)
SCARCITY VALUE FOR HIGH QUALITY VIRGINIA MARKETS (CONT.) Recently Announced Virginia Bank Deal Metrics² Deposit market share data as of June 30, 2023; Excludes Capital One Financial Corporation Includes all bank transactions since January 1, 2016 with targets headquartered in Virginia and announced
Slide 10: Review of Blue Ridge's Historical Balance Sheet Growth
REVIEW OF BLUE RIDGE’S HISTORICAL BALANCE SHEET GROWTH Total Assets ($M) Gross Loans Held-for-Investment ($M) Total Deposits ($M) Tangible Book Value Per Share ($)¹ See the Appendix for certain calculations related to GAAP to Non-GAAP reconciliations
Slide 11: Summary of Historical Profitability Metrics
SUMMARY OF HISTORICAL PROFITABILITY METRICS ROAA (%) Earnings (Loss) Per Share ($) ROATCE (%)¹ NIM (%) NIX / Avg. Assets (%) Operating Efficiency Ratio (%)¹ See the Appendix for certain calculations related to GAAP to Non-GAAP reconciliations Q3 2023 included a non-cash, after- tax goodwill impairme
Slide 12: Loans Held for Investment Portfolio
LOANS HELD FOR INVESTMENT PORTFOLIO Loan Composition (9/30/2023 - $ in thousands) Key Highlights While loan balances were relatively flat as of September 30, 2023 with the prior quarter, the Company selectively replaced balances with higher yielding loans, as reflected by the increase in yield on lo
Slide 13: CRE Loan Portfolio Overview
CRE LOAN PORTFOLIO OVERVIEW CRE Loan Portfolio (Investor & Multifamily) by Type (9/30/2023) $672M
Slide 14: Nonperforming Asset Review
NONPERFORMING ASSET REVIEW Financials reflect bank level call report data as of the end of each period As of September 30, 2023, two large relationships within specialty finance comprised the majority of nonperforming assets: (i) a commercial loan with $32.8 million outstanding, which will take time
Slide 15: Deposit Portfolio
DEPOSIT PORTFOLIO Key Highlights Total deposits were $2.78 billion at September 30, 2023, an increase of $163.1 million from the prior quarter-end. Growth reflects an increase in wholesale funding, primarily time deposits, and, to a lesser extent, increases in interest-bearing demand and money marke
Slide 16: Overview of Fintech Relationships and Anticipated Path Forward
OVERVIEW OF FINTECH RELATIONSHIPS AND ANTICIPATED PATH FORWARD Anticipated Path Forward Current Fintech Partnerships $50.0M Loans $720.9M Deposits Many of the Company’s fintech partners have sub-partners that Blue Ridge contracts with to provide banking as a service (BaaS). As of October 31, 2023, t
Slide 17: Summary of the Formal Written Agreement and Mitigating Steps Taken
SUMMARY OF THE FORMAL WRITTEN AGREEMENT AND MITIGATING STEPS TAKEN On August 29, 2022, Blue Ridge Bank entered into a formal written agreement (the “Agreement”) with the OCC, the Bank’s primary regulator. The Agreement principally concerns the Bank’s fintech line of business and requires the Bank to
Slide 18: Bank Level and Holding Company Capital Ratios
Bank Level Capital Ratios (9/30/2023) Holding Company Capital Ratios (9/30/2023) Assumes a $150 million capital issuance with $140 million of capital down-streamed to bank, and 0.0% risk-weighting on new assets Well-capitalized minimum ratios as defined by the PCA: 5.0% Tier 1 Leverage ratio, 6.5% C
Slide 19: Investment Highlights Revisited
INVESTMENT HIGHLIGHTS REVISITED Scalable Operations Low Risk Valuation Entry Point Attractive Core Deposit Base Attractive Markets of Operation
Slide 20: Appendix
APPENDIX
Slide 21: Overview of the Management Team
OVERVIEW OF THE MANAGEMENT TEAM President and Chief Executive Officer of Blue Ridge Bankshares, Inc. since July 2023 and Chief Executive Officer of Blue Ridge Bank since May 2023 President and Chief Executive Officer of Community Bankers Bank from November 2018 to July 2020 Chief Executive Officer o
Slide 22: Overview of Board of Directors
OVERVIEW OF BOARD OF DIRECTORS Audit Partner at PBMares, LLP Previously, Partner at the accounting firms AM Pullen & Company, McGladrey & Pullen, and PBGH/PBMares, LLP U.S. Army veteran with service during the Vietnam War Served as a Member of the Local Government Specification Team, selected by the
Slide 23: Overview of Board of Directors (Cont.)
OVERVIEW OF BOARD OF DIRECTORS (CONT.) President of Woodruff Family Law Group in North Carolina CPA licensed in the state of North Carolina and an expert in the area of business valuation Frequent writer and lecturer on business valuation and federal taxation Managing Partner of Piedmont Realty Hold
Slide 24: Summary Financial Profile
SUMMARY FINANCIAL PROFILE See the Appendix for certain calculations related to GAAP to Non-GAAP reconciliations Reflects bank level call report data Source: S&P Capital IQ Pro
Slide 25: Overview of Securities Portfolio
OVERVIEW OF SECURITIES PORTFOLIO Available for Sale Securities – At Fair Value (9/30/2023 - $ in thousands) Q3 2023 AOCI (Net of Taxes) Associated with AFS Portfolio: ($53.8M) Key Highlights The fair value of the Company’s portfolio of securities available for sale is below book value by approximate
Slide 26: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES Excludes mortgage servicing rights
Slide 27: Reconciliation of Non-GAAP Disclosures (Cont.)
Assumes an income tax rate of 21% and full deductibility Excludes mortgage servicing rights RECONCILIATION OF NON-GAAP DISCLOSURES (CONT.)
Blue Ridge Bankshares — Investor Presentation (December 2023) on 6ix