Executive Summary

Q1 2024 net loss narrowed to $2.9 million (EPS: -$0.15) versus Q4 2023 net loss of $5.8 million (EPS: -$0.30) and Q1 2023 net income of $4.0 million (EPS: $0.21), aided by a $1.0 million recovery of credit losses and a $0.7 million positive MSR fair value adjustment .
Net interest income declined to $20.3 million and net interest margin fell to 2.75% due to higher funding costs and wholesale time deposits; total revenue (NII + noninterest income) was $28.2 million .
Asset quality improved: nonperforming loans fell to $53.2 million (1.73% of assets) and net charge‑offs dropped to 0.14% annualized from 2.84% in Q4 2023, driven by specialty finance loan paydowns and cash receipts .
Strategic catalyst: the company closed a $150 million private placement post‑quarter to bolster capital and fund transformation, with plans to meet OCC consent order capital minimums; Q1 deposits fell $100.3 million as BaaS/fintech balances wound down .

What Went Well and What Went Wrong

What Went Well

Specialty finance resolution progress reduced nonperforming loans to $53.2 million (1.73% of assets) and materially lowered net charge‑offs to 0.14% annualized; reserves on nonperforming specialty finance loans remained $9.6 million .
Positive MSR fair value adjustment of $729 thousand lifted noninterest income; this reversed Q4’s MSR headwind and supported the sequential improvement in bottom‑line results .
Post‑quarter capital raise of $150 million provides flexibility to reposition the balance sheet and enhance capital; management emphasized “a vital bridge” to transformation and profitable growth .

Quote: “We expect 2024 to be a transitional year… initiatives above will begin to result in incremental operating improvement as we move through the year.” – CEO G. William “Billy” Beale .

What Went Wrong

Net interest income fell $1.4 million sequentially and NIM compressed to 2.75% on higher funding costs (cost of funds 3.03%, cost of deposits 2.85%) and greater reliance on wholesale time deposits .
Total deposits declined $100.3 million driven by fintech/BaaS deposit reductions (-$162.9 million), necessitating more brokered funding (+$48.0 million), raising funding costs and the held‑for‑investment loan‑to‑deposit ratio to 97.1% .
Operating expenses rose $1.9 million quarter‑over‑quarter to $32.5 million due to higher salaries/benefits (key hires, retirement charge, incentive accruals), keeping the efficiency ratio elevated at 115.3% .

Financial Results

Core P&L and Margins (USD Millions, EPS in USD; periods ordered oldest → newest)

Metric	Q1 2023	Q4 2023	Q1 2024
Net Interest Income	$25.196	$21.763	$20.349
Noninterest Income	$7.283	$4.107	$7.825
Total Revenue (NII + Noninterest)	$32.479	$25.870	$28.174
EPS (Basic & Diluted)	$0.21	-$0.30	-$0.15
Net Interest Margin (%)	3.30%	2.92%	2.75%
Efficiency Ratio (%)	88.8%	118.2%	115.3%
Cost of Deposits (%)	1.74%	2.73%	2.85%
Cost of Funds (%)	2.11%	2.91%	3.03%
Provision/(Recovery) for Credit Losses	$(1.510)	$2.770	$(1.000)

Notes: Total revenue is calculated as net interest income plus total noninterest income; all components cited from the company’s income statement .

Segment/Contribution Breakdown

Segment Metric	Q1 2023	Q4 2023	Q1 2024
Net Interest Income ($mm)	$25.196	$21.763	$20.349
Noninterest Income ($mm)	$7.283	$4.107	$7.825
MSR Fair Value Adjustment ($mm)	$(1.896)	$(2.026)	$0.729
Fintech Interest & Fee Revenue ($mm)	~$1.5	~$2.1	~$1.7

Balance Sheet and KPIs

KPI	Q1 2023	Q4 2023	Q1 2024
Total Deposits ($mm)	$2,761.047	$2,566.032	$2,465.776
Fintech-Related Deposits (% of Total)	28.1%	18.2%	12.3%
HFI Loans ($mm)	$2,452.783	$2,430.947	$2,394.089
HFI Loan-to-Deposit Ratio (%)	88.8%	94.7%	97.1%
Estimated Uninsured Deposits (% of Total)	22.4%	22.4%	22.4%
Nonperforming Loans ($mm)	N/A	$63.1	$53.2
NPLs / Total Assets (%)	2.63%	2.02%	1.73%
Net Charge‑offs / Avg Loans (%)	0.17%	2.84%	0.14%
ACL / Loans (%)	1.47%	1.48%	1.46%
Tier 1 Leverage (Bank) (%)	N/A	7.49%	7.44%
CET1 (Bank) (%)	N/A	9.09%	9.28%
Total RBC (Bank) (%)	N/A	10.25%	10.51%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/EPS	FY/Q1 2024	None provided	None provided	Maintained – no quantitative guidance
Net Interest Margin	FY/Q1 2024	None provided	None provided	Maintained – no quantitative guidance
Operating Expenses	FY/Q1 2024	None provided	None provided	Maintained – no quantitative guidance
Capital Ratios (OCC Consent Order Minimums)	Ongoing	Leverage ≥10%; Total RBC ≥13%	Management intends to use $150mm capital to comply	Reaffirmed compliance plan
Dividend Policy	Ongoing	Dividend suspended Oct 30, 2023	No dividend; Q1 2024 dividends declared per share: $0.00	Maintained suspension

Earnings Call Themes & Trends

Note: A Q1 2024 earnings call transcript was not available via our document tools; themes below reflect disclosures across press releases/8‑Ks.

Topic	Q3 2023 (Prior)	Q4 2023 (Prior)	Q1 2024 (Current)	Trend
Regulatory/Legal (OCC)	Formal written agreement; remediation costs $3.8mm; narrowing BaaS base	OCC Consent Order issued Jan 25, 2024 with higher capital minimums	Remediation “on track”; action plan developed; compliance/risk hires added	Improving execution under heightened requirements
Fintech/BaaS Wind‑down	Fintech deposits $721mm (26% of deposits); shift to interest‑bearing	Fintech deposits fell to $465.9mm (18.2%)	Fintech deposits down to $303.0mm (12.3%); interest/fee ~$1.7mm	De‑risking continues; revenue contribution shrinking
Capital Actions	N/A	Announced commitments for $150mm private placement	Closed $150mm private placement (common, preferred, warrants)	Capital strengthened post‑quarter
Asset Quality (Specialty Finance)	Reserves up; NPLs high; goodwill impairment recorded	NPLs down to $62.6mm; large specialty finance charge‑offs	NPLs down to $53.2mm; cash receipts and one payoff; NCOs 0.14%	Sequential improvement
Funding/Costs	NIM 2.92%; cost of funds 2.73%	NIM 2.92%; cost of funds 2.91%	NIM 2.75%; cost of funds 3.03%; more brokered/time deposits	Funding cost pressure persists

Management Commentary

“Transform Blue Ridge Bank, restore it to its community banking roots, and put it on a path to profitable growth… strategic plan in two parts… and closed on a private placement… for gross proceeds of $150 million.” – CEO G. William “Billy” Beale .
“We… believe that we have completed all tasks to date mandated by our primary banking regulator, the OCC… our persistent effort to further wind down our BaaS fintech depository business is on track, if not slightly ahead of schedule.” – CEO .
“This capital infusion provides a vital bridge and additional financial flexibility… developing an asset resolution plan to reposition portions of our balance sheet.” – CEO .

Q&A Highlights

No Q1 2024 earnings call transcript was found via our document tools; therefore, Q&A details and any guidance clarifications were not available to review [SearchDocuments returned none].

Estimates Context

Wall Street consensus (S&P Global) EPS and revenue estimates for Q1 2024 were unavailable due to data access limits at the time of retrieval; as a result, estimate comparisons cannot be provided. Values were not retrievable from S&P Global at this time.

Key Takeaways for Investors

Sequential improvement in bottom‑line loss driven by recovery of credit losses and positive MSR marks; ongoing cost pressure keeps NIM compressed and efficiency ratio elevated .
Active de‑risking of fintech/BaaS deposits is materially reducing deposit concentration and associated operational/regulatory risk, but increases reliance on wholesale funding near‑term .
Asset quality trends improved with lower NPLs and charge‑offs; specialty finance exposures are being resolved via paydowns and cash receipts, stabilizing ACL coverage .
Post‑quarter $150 million capital raise is a key catalyst, providing runway to meet OCC capital requirements and reposition assets; watch for subsequent balance‑sheet actions and capital ratio trajectory .
Near‑term trading implications: sentiment likely hinges on evidence of NIM stabilization and OpEx control, plus tangible progress toward OCC minimums; declining fintech exposure reduces headline/regulatory risk .
Medium‑term thesis: return to “community banking roots” with improved funding mix and consistent asset quality could support margin normalization; execution on asset resolution and deposit remix is pivotal .

Appendix: Additional Detail

Funding cost metrics: cost of deposits 2.85% (ex‑wholesale 2.52%); cost of funds 3.03% (Q4: 2.91%) .
Deposit flows: total deposits -$100.3mm QoQ, fintech‑related -$162.9mm, brokered time +$48.0mm; core deposits relatively stable .
Capital ratios (Bank): Tier 1 leverage 7.44%, CET1 9.28%, total RBC 10.51% (do not include private placement effects) .
Dividends: dividend suspended since Oct 30, 2023; no dividend declared in Q1 2024 .

Sources: Company Q1 2024 press release and embedded financials ; Form 8‑K Items and Exhibit 99.1 content ; Private placement press release ; Q4 2023 8‑K ; Q3 2023 8‑K .

BLUE RIDGE BANKSHARES, INC. (BRBS)·Q1 2024 Earnings Summary