Blue Ridge Bankshares, Inc. · AMEX:BRBS
Blue Ridge Bankshares — Q3 2023 Earnings Presentation
26 slides from Blue Ridge Bankshares's earnings presentation, Nov 16, 2023
Slide 1: Blue Ridge Bankshares, Inc.
Blue Ridge Bankshares, Inc. (NYSE American: BRBS) November 16, 2023 MYBRB.BANK 1 ©2023 Blue Ridge Bank, N.A. All Rights Reserved.
Slide 2: Disclosure
DISCLOSURE Forward-Looking Statements adverse reactions of the Company’s customers, suppliers, employees, or other business partners; (xix) the ability to maintain adequate liquidity by retaining deposit customers and secondary funding sources, especially if the Company's or industry's This presenta
Slide 3: Blue Ridge Bankshares, at a Glance
BLUE RIDGE BANKSHARES, AT A GLANCE DEPOSIT MARKET (27 branches) #7 Virginia-based bank SHARE 1 Winchester Washington D.C. ASSETS EMPLOYEES $3.3 billion² Fairfax Luray (16 offices from Maryland to South Carolina) Fredericksburg DEPOSITS $2.8 billion² Harrisonburg Northern Neck MARKET Charlottesville
Slide 4: Considerations for an Investment in Blue Ridge
CONSIDERATIONS FOR AN INVESTMENT IN BLUE RIDGE • Virginia markets are characterized by growing employment and above average incomes, with a median household income of $87,219¹. • Over 71,000 small businesses operate in Virginia², with diversified industries including manufacturing, government contra
Slide 5: Corporate Objectives for Blue Ridge
CORPORATE OBJECTIVES FOR BLUE RIDGE New Leadership and Added Depth to the Executive Team has Led to Progress with Significant Achievements. 1 Progress 2 Near-Term Initiatives 3 Long-Term Goals > OCC Remediation & Banking as a Service (BaaS): > Integrate operations, reducing verticals and > Leverage
Slide 6: Our Service Offerings and Business Lines
OUR SERVICE OFFERINGS AND BUSINESS LINES Targeted Relationship Anticipated Core Focus Retention Managed Level of Growth BRB De-emphasize Retail Financial Fintech Banking Group Commercial Consumer & Banking Wealth Private BaaS Management Banking Government Corporate Middle Market Community Personal T
Slide 7: Scarcity Value for High Quality Virginia Markets
SCARCITY VALUE FOR HIGH QUALITY VIRGINIA MARKETS Projected Population Growth (2023 - 2028) Attractive Markets of Operation² Richmond Charlottesville Key Employers: Key Employers: ~$332M Total Deposits ~$328M Total Deposits 7 Total Branches 5 Total Branches Median Household Income Hampton Roads Washi
Slide 8: Scarcity Value for High Quality Virginia Markets (Cont.)
SCARCITY VALUE FOR HIGH QUALITY VIRGINIA MARKETS (CONT.) Virginia Deposit Market Share (Top 20)¹ Recently Announced Virginia Bank Deal Metrics² Total Market Announced VA Deposits Share Number of Deal Value Price / TBV Based ($M) (%) Branches Date Seller Name ($M) (% ) Truist Financial Corporation $5
Slide 9: Review of Blue Ridge's Historical Balance Sheet Growth
REVIEW OF BLUE RIDGE’S HISTORICAL BALANCE SHEET GROWTH Total Assets ($M) Gross Loans Held-for-Investment ($M) Total Deposits ($M) Tangible Book Value Per Share ($)¹ 1) See the Appendix for certain calculations related to GAAP to Non-GAAP reconciliations 9
Slide 10: Summary of Historical Profitability Metrics
SUMMARY OF HISTORICAL PROFITABILITY METRICS ROAA (%) ROATCE (%)¹ Earnings (Loss) Per Share ($) > Q3 2023 included a non-cash, after- tax goodwill impairment charge of $26.8 million, a $6.0 million proposed litigation settlement reserve and $3.8 million of regulatory remediation expenses. NIM (%) Ope
Slide 11: Loans Held for Investment Portfolio
LOANS HELD FOR INVESTMENT PORTFOLIO Loan Composition Key Highlights (9/30/2023 - $ in thousands) > 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
Slide 12: CRE Loan Portfolio Overview
CRE LOAN PORTFOLIO OVERVIEW CRE Loan Portfolio (Investor & Multifamily) by Type (9/30/2023) $672M 12
Slide 13: Nonperforming Asset Review
NONPERFORMING ASSET REVIEW As of the Three Months Ended, Sep. 30, Dec. 31, Mar. 31, Jun. 30, Sep. 30, ($ in thousands) 2022 2022 2023 2023 2023 Loans 30 - 89 days past due and still accruing: Real Estate $4,188 $15,120 $8,460 $5,895 $5,466 Commercial & Industrial 524 688 1,183 1,654 4,291 Consumer 7
Slide 14: Deposit Portfolio
DEPOSIT PORTFOLIO Deposit Composition Key Highlights (9/30/2023 - $ in thousands) > 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,
Slide 15: Overview of Fintech Relationships and Anticipated Path Forward
OVERVIEW OF FINTECH RELATIONSHIPS AND ANTICIPATED PATH FORWARD Current Fintech Partnerships Anticipated Path Forward > 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, there were approximately 5
Slide 16: 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 MITIGATING STEPS TAKEN written agreement (the “Agreement”) with the OCC, the Bank’s > The Company is actively working to bring Blue Ridge Bank’s fintech primary regulator. The
Slide 17: Current Capital Ratios
CURRENT CAPITAL RATIOS Bank Level Capital Ratios Holding Company Capital Ratios (9/30/2023) (9/30/2023) Current Capital Current Capital Well-Capitalized Minimum1 Well-Capitalized Minimum1 5.48% 1) Well-capitalized minimum ratios as defined by the PCA: 5.0% Tier 1 Leverage ratio, 6.5% CET1 ratio, 8.0
Slide 18: Investment Highlights Revisited
INVESTMENT HIGHLIGHTS REVISITED Attractive Markets of Operation Low Risk Scalable Valuation Entry Operations Point Attractive Core Deposit Base 18
Slide 19: Appendix
APPENDIX 19
Slide 20: 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 G. William Beale, • C
Slide 21: Overview of Board of Directors
OVERVIEW OF BOARD OF DIRECTORS • Audit Partner at PBMares, LLP • Previously, Partner at the accounting firms AM Pullen & Company, • Retired partner from the accounting firm FORVIS LLP McGladrey & Pullen, and PBGH/PBMares, LLP • Certified Public Accountant licensed in North Carolina Mensel D. Dean Jr
Slide 22: Overview of Board of Directors (Cont.)
OVERVIEW OF BOARD OF DIRECTORS (CONT.) Andrew C. Holzwarth • Managing Partner of Piedmont Realty Holdings, a full-service real • Partner at Reynolds Development Company, a private real estate Director estate development company Randolph N. Reynolds Jr. management and development company Director • S
Slide 23: Summary Financial Profile
SUMMARY FINANCIAL PROFILE For the Calendar Year Ended For the Calendar Quarter Ended 2019Y 2020Y 2021Y 2022Y 2022Q4 2023Q1 2023Q2 2023Q3 Balance Sheet ($M) Total Assets $961 $1,498 $2,665 $3,130 $3,130 $3,324 $3,214 $3,263 Annualized Growth 78.1% 55.9% 77.9% 17.5% 39.3% 27.6% (12.6%) 6.1% Gross Loan
Slide 24: Overview of Securities Portfolio
OVERVIEW OF SECURITIES PORTFOLIO Available for Sale Securities – At Fair Value Key Highlights (9/30/2023 - $ in thousands) > The fair value of the Company’s portfolio of securities available for sale is below book value by approximately 18%, primarily as a result of market interest rates. 75% of unr
Slide 25: Reconciliation of Non-GAAP Disclosures
RECONCILIATION OF NON-GAAP DISCLOSURES As of and for the Years Ended, As of and for the Three Months Ended, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Mar. 31, Jun. 30, Sep. 30, ($ in thousands, except per share data) 2019 2020 2021 2022 2023 2023 2023 2023 Operating Efficiency Ratio Total noninte
Slide 26: Reconciliation of Non-GAAP Disclosures (Cont.)
RECONCILIATION OF NON-GAAP DISCLOSURES (CONT.) As of and for the Years Ended, As of and for the Three Months Ended, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Mar. 31, Jun. 30, Sep. 30, ($ in thousands, except per share data) 2019 2020 2021 2022 2023 2023 2023 2023 Return on Average Tangible Commo
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