Blue Ridge Bankshares, Inc. Announces 2025 Third Quarter Results
Reports highest level of profits since 2022
For the quarter ended
For the year-to-date period ended
A message from
"
"Most banks in transition report one-time financial events as the organization returns to normal operations. We had our share this quarter. We reported
"On an on-going basis, noninterest expenses reflect reduced
"Last quarter, I stated we were turning our focus to growth. While loans held for investment declined by
"Early in the third quarter, the Company announced our board had approved an up to
Sale of Monarch Mortgage
On
Q3 2025 Highlights
(Comparisons for Third Quarter 2025 are relative to Second Quarter 2025 unless otherwise noted.)
Net Income:
- Net income for the third quarter was
$5.6 million , or$0.06 per diluted common share, compared to net income of$1.3 million , or$0.01 per diluted common share, for the prior quarter. The third quarter income before income taxes of$7.5 million included$3.0 million of loan fee income realized upon the payoff of a previously criticized out-of-market loan, while the prior quarter included$0.3 million of fee income from this loan. The loan fee income resulted from loan modifications in the first quarter of 2025 and was fully realized in the third quarter upon pay off. Also included in the prior quarter income before income taxes of$1.8 million was a benefit of$1.3 million – primarily the recovery of non-credit-related amounts reserved for in the prior year – as the Company concluded outstanding exit activities with a former fintech banking-as-a-service ("BaaS") partner.
Net Interest Income / Net Interest Margin:
- Net interest income totaled
$21.9 million and$19.8 million for the third and second quarters, respectively. Excluding the aforementioned loan fee income, interest income decreased by$0.6 million in the quarter, primarily due to the decline in average balances of interest-earning assets, which declined$88.3 million from the prior quarter. Average balances of interest-bearing liabilities declined$80.7 million from the prior quarter, of which$32.3 million was wholesale deposits and$16.5 million was subordinated notes. Net interest margin was 3.60% for the quarter, compared to 3.15% for the prior quarter. The aforementioned loan fee income in the third and second quarters, along with the second quarter interest expense benefit realized upon the exit of the previously noted former fintech BaaS partner, had a positive effect on net interest margin of 49 and 8 basis points, respectively.
- On
July 15, 2025 , the Company completed a$10.0 million partial redemption of its$25.0 million of subordinated notes maturingOctober 15, 2029 (the "2029 Notes"). OnJuly 15, 2025 , the rate on the 2029 Notes reset to 8.65%, which was the then three-month Secured Overnight Funding Rate (SOFR) plus 433.5 basis points. Interest expense and the effective interest rate on the 2029 Notes were$0.3 million and 9.16%, respectively, for the third quarter of 2025, compared to$0.5 million and 7.86%, respectively, for the second quarter.
Capital:
- On
August 25, 2025 , the Company announced the adoption of a share repurchase program pursuant to which the Company may purchase up to$15 million of its issued and outstanding common stock ("Common Stock"). As of the end of the third quarter, the Company had repurchased 659,949 shares of its Common Stock at a weighted average price of$4.16 per share totaling$2.8 million .
- The ratio of tangible common stockholders' equity to tangible total assets was 14.2%1 compared to 13.4%1 at the prior quarter end. The increase in this ratio was primarily driven by a smaller balance sheet, net income for the period, and the decrease in unrealized losses on the Company's portfolio of securities available for sale. Tangible book value per common share ("TBV") was
$4.01 1 and$3.85 1 at the end of the third and second quarters, respectively. TBV does not include the effect of the second quarter grant of performance-based restricted stock awards ("PSAs") totaling 3.4 million shares of Common Stock, which would negatively affect TBV by$0.16 and$0.14 in the respective quarters.
- At
September 30, 2025 , the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 13.67%, 18.73%, 18.73%, and 19.73%, respectively, compared to 12.89%, 17.86%, 17.86%, and 18.91%, respectively, at the prior quarter end. Capital ratios for the Company atSeptember 30, 2025 for tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 14.70%, 20.14%, 20.14%, and 21.77%, respectively, compared to 13.93%, 19.29%, 19.29%, and 21.37%, respectively, at the prior quarter end.
- As of
September 30, 2025 , the Bank's tier 1 leverage and total risk-based capital ratios exceeded the minimum capital ratios set forth in the Bank's Consent Order with theOffice of the Comptroller of the Currency (the "OCC"), which requires the Bank to maintain a minimum tier 1 leverage ratio of 10.00% and a total risk-based capital ratio of 13.00%.
Asset Quality:
- Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, were
$28.6 million , or 1.14% of total assets, at quarter end compared to$24.0 million , or 0.94% of total assets, at the prior quarter end. The consecutive quarter increase in nonperforming loans was primarily attributable to a$4.8 million multifamily loan that was placed on nonaccrual status in the quarter. The loan was current as to principal and interest as ofSeptember 30, 2025 , and based on the payment performance, strength of the guarantors, and value of the collateral, the Company believes that future credit losses, if any, will not be significant.
- A recovery of credit losses of
$1.8 million was reported for the third quarter compared to a recovery of credit losses of$0.7 million for the prior quarter. The recovery of credit losses in the quarter was primarily due to loan portfolio balance reductions and a$0.8 million recovery of a portion of a specialty finance loan charged off in 2023.
- The allowance for credit losses as a percentage of total loans held for investment was 1.07% at third quarter end compared to 1.11% at the prior quarter end. Net loan recoveries were
$0.3 million in the quarter compared to net loan charge-offs of$0.5 million for the prior quarter. The net loan (recoveries) charge-offs to average loans outstanding ratio (quarter-to-date annualized) for the quarter was (0.07%) compared to 0.09% for the prior quarter.
Noninterest Income / Noninterest Expense:
- Noninterest income for the third quarter was
$3.8 million compared to$3.2 million for the prior quarter. The improvement was primarily due to swap transaction fee income related to the execution of back-to-back interest rate swaps for commercial borrowers and a positive fair value adjustment of other equity investments. Additionally, noninterest income in the third and prior quarters included$0.8 million and$0.3 million , respectively, of reserves released upon the receipt of additional sales proceeds that were contractually held back from the 2024 sales of mortgage servicing rights.
- Noninterest expense for the third quarter was
$20.0 million compared to$22.0 million for the prior quarter, a decrease of$2.0 million . Salaries and employee benefits expense totaled$11.4 million in the quarter and$13.0 million in the prior quarter, including severance costs of$0.1 million and$0.3 million , respectively, and$1.0 million and$2.0 million of expense for PSAs, respectively. The quarterly decline in salaries and employee benefits also reflects a net reduction in headcount. As of the end of the third and prior quarters, headcount was 311 and 333, respectively. LowerFDIC insurance premiums of$0.8 million in the quarter compared to the prior quarter were primarily attributable to a lower assessment rate. Partially offsetting these consecutive quarter declines were higher legal and consulting expenses.
Income Tax:
- Income tax expense for the third and second quarters was
$1.9 million and$0.5 million , respectively, with an effective income tax rate for the same respective periods of 25.3% and 27.0%.
Balance Sheet:
- Total assets decreased to
$2.50 billion from$2.56 billion at the prior quarter end, a reduction of$58.5 million , primarily driven by declines in loans held for investment of$65.9 million , partially offset by increases in securities available for sale. Included in the reduction of loans held for investment in the quarter were the payoffs and paydowns of approximately$53.3 million of out-of-market loans.
- Total deposits decreased to
$1.95 billion from$2.01 billion at the prior quarter end, a decline of$59.2 million . Deposits, excluding wholesale deposits, decreased$31.0 million in the third quarter. Brokered deposit balances declined$28.2 million in the third quarter, as existing brokered time deposits were paid off upon maturity.
- Sources of liquidity, which consist primarily of on-balance sheet cash, unpledged securities available for sale, and available credit under secured borrowing facilities, totaled
$808.7 million , or 200.0% of uninsured deposits as ofSeptember 30, 2025 . Sources of liquidity as ofJune 30, 2025 , totaled$750.0 million , or 183.3% of uninsured deposits.
Income Statement:
Net interest income was
Average balances of interest-earning assets decreased
Average balances of interest-bearing liabilities decreased
Cost of funds was 2.65% for the third quarter of 2025, compared to 2.63% for the second quarter of 2025, and 3.09% for the third quarter of 2024, while cost of deposits was 2.51%, 2.47%, and 2.91%, for the same respective periods. The interest expense benefit realized upon the exit of the previously noted former fintech BaaS partner had a positive 3 basis point effect on cost of deposits in the second quarter of 2025. Cost of deposits, excluding wholesale deposits, was 1.17% for the quarter, compared to 1.05% for the prior quarter, and 1.71% for the year-ago period.
Net interest margin was 3.60% for the third quarter of 2025, compared to 3.15% for the second quarter, and 2.74% for the third quarter of 2024. Fee income from the aforementioned paid off loan and the interest expense benefit had a positive 49 and 8 basis point effect on net interest margin for the third and second quarters of 2025, respectively. Excluding the effect of the loan fee income for the third quarter of 2025, higher net income margin relative to the third quarter of 2024 was primarily attributable to lower costs of time deposits, including wholesale deposits.
A recovery of credit losses of
Noninterest income was
Noninterest expense was
Balance Sheet:
Loans held for investment were
Total deposits were
The Company previously reported that it was prohibited from the acceptance, renewal, or rollover of brokered deposits as a result of the Consent Order; however, the Company has received consecutive six-month approvals from the
Noninterest-bearing deposits represented 21.1%, 21.5%, and 19.6% of total deposits at
About
Reclassifications:
Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported.
Non-GAAP Financial Measures:
The accounting and reporting policies of the Company conform to
Forward-Looking Statements:
This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company's beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or phrases of similar meaning. The Company cautions that the forward-looking statements are based largely on its expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements.
The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements:
- the strength of
the United States economy in general and the strength of the local economies in which the Company conducts operations; - the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation;
- the impact of, and the ability to comply with, the terms of the
January 24, 2024 Consent Order with the OCC, including the heightened capital requirements and other restrictions therein, and other regulatory directives; - the imposition of additional regulatory actions or restrictions for noncompliance with the Consent Order or otherwise;
- the Company's involvement in, and the outcome of, any litigation, legal proceedings, or enforcement actions that may be instituted against the Company;
- reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners;
- the Company's ability to manage its fintech relationships, including implementing enhanced controls and procedures, complying with the OCC directives and applicable laws and regulations, and managing the wind down of these partnerships;
- the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs;
- the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure;
- the ability to maintain adequate liquidity by growing and retaining deposits and secondary funding sources, especially if the Company's or its industry's reputation become damaged;
- the ability to maintain capital levels adequate to support the Company's business and to comply with the Consent Order directives;
- the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability;
- the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward;
- the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers;
- changes in consumer spending and savings habits;
- the willingness of users to substitute competitors' products and services for the Company's products and services;
- the impact of unanticipated outflows of deposits;
- technological and social media changes;
- potential exposure to fraud, negligence, computer theft, and cyber-crime;
- adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, supervisory and regulatory actions and costs, and related impacts on customer and client behavior;
- changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products;
- political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope and effectiveness of the federal government, its agencies and services;
- the impact of changes in financial services policies, laws, and regulations, including laws, regulations and policies concerning taxes, banking, securities, real estate and insurance, the application thereof by bank regulatory bodies, and the three branches of the federal government;
- the effect of changes in accounting standards, policies, and practices as may be adopted from time to time;
- estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities;
- geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by
the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions inthe United States and abroad; - the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory counter measures, and the volatility and uncertainty arising therefrom;
- the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods, and other catastrophic events; and
- other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended
December 31, 2024 and in filings the Company makes from time to time with the U.S. Securities and Exchange Commission ("SEC ").
The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the
1 Non-GAAP financial measure. Further information can be found at the end of this press release.
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Consolidated Balance Sheets |
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(Dollars in thousands, except share data) |
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(unaudited) |
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Assets |
|
|
|
|
|
Cash and due from banks |
|
$ 121,032 |
|
$ 173,533 |
|
Restricted cash |
|
— |
|
2,459 |
|
Federal funds sold |
|
7,773 |
|
838 |
|
Securities available for sale, at fair value |
|
341,354 |
|
312,035 |
|
Restricted equity investments |
|
18,988 |
|
19,275 |
|
Other equity investments |
|
4,853 |
|
4,834 |
|
Other investments |
|
20,804 |
|
19,405 |
|
Loans held for sale |
|
12,819 |
|
30,976 |
|
Loans held for investment, net of deferred fees and costs |
|
1,912,726 |
|
2,111,797 |
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Less: allowance for credit losses |
|
(20,503) |
|
(23,023) |
|
Loans held for investment, net |
|
1,892,223 |
|
2,088,774 |
|
Accrued interest receivable |
|
11,012 |
|
12,537 |
|
Premises and equipment, net |
|
21,087 |
|
21,394 |
|
Right-of-use lease asset |
|
6,927 |
|
7,962 |
|
Other intangible assets |
|
2,941 |
|
3,859 |
|
Deferred tax asset, net |
|
24,171 |
|
27,312 |
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Other assets |
|
10,965 |
|
12,067 |
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Total assets |
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$ 2,496,949 |
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$ 2,737,260 |
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Liabilities and Stockholders' Equity |
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Deposits: |
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|
|
|
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Noninterest-bearing demand |
|
$ 411,100 |
|
$ 452,690 |
|
Interest-bearing demand and money market deposits |
|
621,268 |
|
598,875 |
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Savings |
|
100,300 |
|
100,857 |
|
Time deposits |
|
818,411 |
|
1,027,020 |
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Total deposits |
|
1,951,079 |
|
2,179,442 |
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FHLB borrowings |
|
150,000 |
|
150,000 |
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Subordinated notes, net |
|
14,731 |
|
39,789 |
|
Lease liability |
|
7,580 |
|
8,613 |
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Other liabilities |
|
18,054 |
|
31,628 |
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Total liabilities |
|
2,141,444 |
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2,409,472 |
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Commitments and contingencies |
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Stockholders' Equity: |
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|
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Common stock, no par value; 150,000,000 shares authorized at September |
|
333,356 |
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322,791 |
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Additional paid-in capital |
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29,687 |
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29,687 |
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Retained earnings |
|
24,237 |
|
17,772 |
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Accumulated other comprehensive loss, net of tax |
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(31,775) |
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(42,462) |
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Total stockholders' equity |
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355,505 |
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327,788 |
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Total liabilities and stockholders' equity |
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$ 2,496,949 |
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$ 2,737,260 |
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(1) Derived from audited |
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Consolidated Statements of Income (unaudited) |
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For the Three Months Ended |
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(Dollars in thousands, except per common share data) |
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Interest income: |
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|
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|
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|
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Interest and fees on loans |
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$ 32,000 |
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$ 30,730 |
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$ 34,747 |
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Interest on securities, deposit accounts, and federal funds sold |
|
4,213 |
|
4,006 |
|
4,478 |
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Total interest income |
|
36,213 |
|
34,736 |
|
39,225 |
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Interest expense: |
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|
|
|
|
|
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Interest on deposits |
|
12,501 |
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12,802 |
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16,984 |
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Interest on subordinated notes |
|
338 |
|
646 |
|
566 |
|
Interest on FHLB and FRB borrowings |
|
1,463 |
|
1,447 |
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2,574 |
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Total interest expense |
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14,302 |
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14,895 |
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20,124 |
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Net interest income |
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21,911 |
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19,841 |
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19,101 |
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Recovery of credit losses - loans |
|
(1,800) |
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(700) |
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(6,000) |
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Recovery of credit losses - unfunded commitments |
|
— |
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— |
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(200) |
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Total recovery of credit losses |
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(1,800) |
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(700) |
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(6,200) |
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Net interest income after recovery of credit losses |
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23,711 |
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20,541 |
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25,301 |
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Noninterest income: |
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|
|
|
|
|
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Fair value adjustments of other equity investments |
|
163 |
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(82) |
|
160 |
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Residential mortgage banking income |
|
5 |
|
117 |
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2,746 |
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Mortgage servicing rights |
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(48) |
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(139) |
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(2,915) |
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Income (loss) on sale of mortgage servicing rights |
|
758 |
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289 |
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(1,011) |
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Wealth and trust management |
|
458 |
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409 |
|
730 |
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Service charges on deposit accounts |
|
725 |
|
721 |
|
376 |
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Increase in cash surrender value of BOLI |
|
9 |
|
8 |
|
127 |
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Bank and purchase card, net |
|
567 |
|
626 |
|
690 |
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Swap transaction fees |
|
258 |
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— |
|
— |
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Other |
|
938 |
|
1,295 |
|
1,795 |
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Total noninterest income |
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3,833 |
|
3,244 |
|
2,698 |
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Noninterest expense: |
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|
|
|
|
|
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Salaries and employee benefits |
|
11,388 |
|
13,000 |
|
13,938 |
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Occupancy and equipment |
|
1,190 |
|
1,129 |
|
1,394 |
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Technology and communications |
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2,314 |
|
2,565 |
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2,767 |
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Legal and regulatory filings |
|
1,008 |
|
395 |
|
614 |
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Advertising and marketing |
|
267 |
|
128 |
|
222 |
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Audit fees |
|
161 |
|
459 |
|
498 |
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|
|
239 |
|
1,027 |
|
1,130 |
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Intangible amortization |
|
223 |
|
234 |
|
265 |
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Other contractual services |
|
645 |
|
433 |
|
1,634 |
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Other taxes and assessments |
|
895 |
|
955 |
|
759 |
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Regulatory remediation |
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— |
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— |
|
357 |
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Other |
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1,711 |
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1,684 |
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2,876 |
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Total noninterest expense |
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20,041 |
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22,009 |
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26,454 |
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Income before income taxes |
|
7,503 |
|
1,776 |
|
1,545 |
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Income tax expense |
|
1,900 |
|
480 |
|
599 |
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Net income |
|
$ 5,603 |
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$ 1,296 |
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$ 946 |
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Basic and diluted income per common share |
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$ 0.06 |
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$ 0.01 |
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$ 0.01 |
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Consolidated Statements of Income (unaudited) |
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For the nine months ended |
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(Dollars in thousands, except per common share data) |
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Interest income: |
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|
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Interest and fees on loans |
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$ 93,884 |
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$ 109,289 |
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Interest on securities, deposit accounts, and federal funds sold |
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12,415 |
|
13,098 |
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Total interest income |
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106,299 |
|
122,387 |
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Interest expense: |
|
|
|
|
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Interest on deposits |
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39,495 |
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52,741 |
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Interest on subordinated notes |
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1,720 |
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1,678 |
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Interest on FHLB and FRB borrowings |
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4,342 |
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8,433 |
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Total interest expense |
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45,557 |
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62,852 |
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Net interest income |
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60,742 |
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59,535 |
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Recovery of credit losses - loans |
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(2,500) |
|
(2,400) |
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Recovery of credit losses - unfunded commitments |
|
— |
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(1,700) |
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Total recovery of credit losses |
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(2,500) |
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(4,100) |
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Net interest income after recovery of credit losses |
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63,242 |
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63,635 |
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Noninterest income: |
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|
|
|
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Fair value adjustments of other equity investments |
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8 |
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(8,384) |
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Residential mortgage banking income |
|
847 |
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8,214 |
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Mortgage servicing rights |
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(185) |
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(166) |
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Income (loss) on sale of mortgage servicing rights |
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1,197 |
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(1,011) |
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Wealth and trust management |
|
1,321 |
|
1,873 |
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Service charges on deposit accounts |
|
1,903 |
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1,123 |
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Increase in cash surrender value of BOLI |
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25 |
|
797 |
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Bank and purchase card, net |
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1,760 |
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1,445 |
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Swap transaction fees |
|
258 |
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— |
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Other |
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3,015 |
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6,867 |
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Total noninterest income |
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10,149 |
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10,758 |
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Noninterest expense: |
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|
|
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Salaries and employee benefits |
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36,998 |
|
44,918 |
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Occupancy and equipment |
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3,700 |
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4,221 |
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Technology and communications |
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7,663 |
|
7,378 |
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Legal and regulatory filings |
|
1,842 |
|
1,424 |
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Advertising and marketing |
|
586 |
|
702 |
|
Audit fees |
|
1,198 |
|
1,948 |
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|
|
2,363 |
|
4,324 |
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Intangible amortization |
|
701 |
|
828 |
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Other contractual services |
|
1,673 |
|
5,299 |
|
Other taxes and assessments |
|
2,771 |
|
2,290 |
|
Regulatory remediation |
|
— |
|
4,398 |
|
Other |
|
5,506 |
|
10,469 |
|
Total noninterest expense |
|
65,001 |
|
88,199 |
|
Income (loss) before income taxes |
|
8,390 |
|
(13,806) |
|
Income tax expense (benefit) |
|
1,925 |
|
(424) |
|
Net income (loss) |
|
$ 6,465 |
|
$ (13,382) |
|
Basic and diluted income (loss) per common share |
|
$ 0.07 |
|
$ (0.34) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Summary of Selected Financial Data (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
||||||||
|
(Dollars and shares in thousands, except per common share data) |
|
|
|
|
|
|
|
|
|
|
|
Income Statement Data: |
|
2025 |
|
2025 |
|
2025 |
|
2024 |
|
2024 |
|
Interest income |
|
$ 36,213 |
|
$ 34,736 |
|
$ 35,350 |
|
$ 37,932 |
|
$ 39,225 |
|
Interest expense |
|
14,302 |
|
14,895 |
|
16,360 |
|
18,807 |
|
20,124 |
|
Net interest income |
|
21,911 |
|
19,841 |
|
18,990 |
|
19,125 |
|
19,101 |
|
Recovery of credit losses |
|
(1,800) |
|
(700) |
|
— |
|
(1,000) |
|
(6,200) |
|
Net interest income after recovery of credit losses |
|
23,711 |
|
20,541 |
|
18,990 |
|
20,125 |
|
25,301 |
|
Noninterest income |
|
3,833 |
|
3,244 |
|
3,072 |
|
2,814 |
|
2,698 |
|
Noninterest expense |
|
20,041 |
|
22,009 |
|
22,951 |
|
25,640 |
|
26,454 |
|
Income (loss) before income taxes |
|
7,503 |
|
1,776 |
|
(889) |
|
(2,701) |
|
1,545 |
|
Income tax expense (benefit) |
|
1,900 |
|
480 |
|
(455) |
|
(698) |
|
599 |
|
Net income (loss) |
|
5,603 |
|
1,296 |
|
(434) |
|
(2,003) |
|
946 |
|
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share - basic and diluted |
|
$ 0.06 |
|
$ 0.01 |
|
$ (0.01) |
|
$ (0.03) |
|
$ 0.01 |
|
Book value per common share |
|
4.03 |
|
3.88 |
|
3.86 |
|
3.86 |
|
4.31 |
|
Tangible book value per common share - Non-GAAP |
|
4.01 |
|
3.85 |
|
3.83 |
|
3.83 |
|
4.26 |
|
Balance Sheet Data: |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ 2,496,949 |
|
$ 2,555,439 |
|
$ 2,685,084 |
|
$ 2,737,260 |
|
$ 2,944,691 |
|
Average assets |
|
2,535,853 |
|
2,630,898 |
|
2,721,714 |
|
2,863,014 |
|
2,967,774 |
|
Average interest-earning assets |
|
2,437,542 |
|
2,525,835 |
|
2,620,725 |
|
2,736,834 |
|
2,796,116 |
|
Loans held for investment ("LHFI") |
|
1,912,726 |
|
1,978,585 |
|
2,059,710 |
|
2,111,797 |
|
2,180,413 |
|
Allowance for credit losses |
|
20,503 |
|
21,974 |
|
23,126 |
|
23,023 |
|
25,453 |
|
Purchase accounting adjustments (discounts) on acquired loans |
|
2,984 |
|
3,388 |
|
3,710 |
|
3,996 |
|
4,162 |
|
Loans held for sale |
|
12,819 |
|
12,380 |
|
23,624 |
|
30,976 |
|
22,082 |
|
Securities available for sale, at fair value |
|
341,354 |
|
327,958 |
|
325,401 |
|
312,035 |
|
314,784 |
|
Noninterest-bearing demand deposits |
|
411,100 |
|
432,939 |
|
452,590 |
|
452,690 |
|
459,793 |
|
Fintech Banking-as-a-Service ("BaaS") deposits |
|
1 |
|
193 |
|
198 |
|
233 |
|
63,674 |
|
Total deposits |
|
1,951,079 |
|
2,010,266 |
|
2,129,477 |
|
2,179,442 |
|
2,346,492 |
|
Subordinated notes, net |
|
14,731 |
|
24,928 |
|
39,773 |
|
39,789 |
|
39,806 |
|
FHLB advances |
|
150,000 |
|
150,000 |
|
150,000 |
|
150,000 |
|
190,000 |
|
Average interest-bearing liabilities |
|
1,739,014 |
|
1,819,735 |
|
1,899,315 |
|
2,021,814 |
|
2,121,402 |
|
Total stockholders' equity |
|
355,505 |
|
344,265 |
|
338,289 |
|
327,788 |
|
336,347 |
|
Average stockholders' equity |
|
345,358 |
|
339,131 |
|
329,684 |
|
330,343 |
|
326,880 |
|
Weighted average common shares outstanding - basic |
|
88,548 |
|
88,258 |
|
86,003 |
|
78,881 |
|
73,366 |
|
Weighted average common shares outstanding - diluted |
|
99,384 |
|
95,903 |
|
86,003 |
|
78,881 |
|
87,086 |
|
Outstanding warrants to purchase common stock |
` |
27,549 |
|
27,674 |
|
28,690 |
|
31,452 |
|
26,196 |
|
Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
0.88 % |
|
0.20 % |
|
-0.06 % |
|
-0.28 % |
|
0.13 % |
|
Return on average equity (1) |
|
6.49 % |
|
1.53 % |
|
-0.53 % |
|
-2.43 % |
|
1.16 % |
|
Total loan to deposit ratio |
|
98.7 % |
|
99.0 % |
|
97.8 % |
|
98.3 % |
|
93.9 % |
|
Held for investment loan-to-deposit ratio |
|
98.0 % |
|
98.4 % |
|
96.7 % |
|
96.9 % |
|
92.9 % |
|
Fintech BaaS deposits to total deposits ratio |
|
0.0 % |
|
0.0 % |
|
0.0 % |
|
0.0 % |
|
2.7 % |
|
Net interest margin (1) |
|
3.60 % |
|
3.15 % |
|
2.90 % |
|
2.80 % |
|
2.74 % |
|
Yield of LHFI (1) |
|
6.40 % |
|
5.80 % |
|
5.70 % |
|
5.83 % |
|
5.80 % |
|
Cost of deposits (1) |
|
2.51 % |
|
2.47 % |
|
2.62 % |
|
2.86 % |
|
2.91 % |
|
Cost of funds (1) |
|
2.65 % |
|
2.63 % |
|
2.78 % |
|
3.01 % |
|
3.09 % |
|
Efficiency ratio |
|
77.8 % |
|
95.3 % |
|
104.0 % |
|
116.9 % |
|
121.4 % |
|
Noninterest expense to total assets (1) |
|
3.2 % |
|
3.4 % |
|
3.4 % |
|
3.7 % |
|
3.6 % |
|
Regulatory remediation expenses |
|
— |
|
— |
|
— |
|
273 |
|
357 |
|
Capital and Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Average stockholders' equity to average assets |
|
13.6 % |
|
12.9 % |
|
12.1 % |
|
11.5 % |
|
11.0 % |
|
Allowance for credit losses to LHFI |
|
1.07 % |
|
1.11 % |
|
1.12 % |
|
1.09 % |
|
1.17 % |
|
Ratio of net (recoveries) charge-offs to average loans outstanding (1) |
|
-0.07 % |
|
0.09 % |
|
-0.02 % |
|
0.36 % |
|
-0.61 % |
|
Nonperforming loans to total assets |
|
1.14 % |
|
0.94 % |
|
0.93 % |
|
0.93 % |
|
1.09 % |
|
Nonperforming assets to total assets |
|
1.15 % |
|
0.95 % |
|
0.94 % |
|
0.94 % |
|
1.09 % |
|
Nonperforming loans to total loans |
|
1.48 % |
|
1.20 % |
|
1.19 % |
|
1.20 % |
|
1.46 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures (unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
||||||||
|
(Dollars and shares in thousands, except per common share data) |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity and Tangible Book Value Per Common Share: |
|
2025 |
|
2025 |
|
2025 |
|
2024 |
|
2024 |
|
Total stockholders' equity |
|
$ 355,505 |
|
$ 344,265 |
|
$ 338,289 |
|
$ 327,788 |
|
$ 336,347 |
|
Less: preferred stock (including additional paid-in capital) |
|
— |
|
— |
|
— |
|
— |
|
(20,605) |
|
Common stockholders' equity |
|
$ 355,505 |
|
$ 344,265 |
|
$ 338,289 |
|
$ 327,788 |
|
$ 315,742 |
|
Less: other intangibles, net of deferred tax liability (2) |
|
(2,285) |
|
(2,509) |
|
(2,740) |
|
(2,998) |
|
(3,281) |
|
Tangible common equity (Non-GAAP) |
|
$ 353,220 |
|
$ 341,756 |
|
$ 335,549 |
|
$ 324,790 |
|
$ 312,461 |
|
Total common shares outstanding |
|
91,637 |
|
92,175 |
|
87,778 |
|
84,973 |
|
73,474 |
|
Less: unvested performance-based restricted stock awards |
|
(3,460) |
|
(3,496) |
|
(109) |
|
(117) |
|
(137) |
|
Total common shares outstanding, adjusted |
|
88,176 |
|
88,679 |
|
87,669 |
|
84,856 |
|
73,337 |
|
Book value per common share |
|
$ 4.03 |
|
$ 3.88 |
|
$ 3.86 |
|
$ 3.86 |
|
$ 4.31 |
|
Tangible book value per common share (Non-GAAP) |
|
4.01 |
|
3.85 |
|
3.83 |
|
3.83 |
|
4.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity to Tangible Total Assets |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ 2,496,949 |
|
$ 2,555,439 |
|
$ 2,685,084 |
|
$ 2,737,260 |
|
$ 2,944,691 |
|
Less: other intangibles, net of deferred tax liability (2) |
|
(2,285) |
|
(2,509) |
|
(2,740) |
|
(2,998) |
|
(3,281) |
|
Tangible total assets (Non-GAAP) |
|
$ 2,494,664 |
|
$ 2,552,930 |
|
$ 2,682,344 |
|
$ 2,734,262 |
|
$ 2,941,410 |
|
Tangible common equity (Non-GAAP) |
|
$ 353,220 |
|
$ 341,756 |
|
$ 335,549 |
|
$ 324,790 |
|
$ 312,461 |
|
Tangible common equity to tangible total assets (Non-GAAP) |
|
14.2 % |
|
13.4 % |
|
12.5 % |
|
11.9 % |
|
10.6 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized. |
|
|
|
|
|
|
|
|
|
|
|
(2) Excludes mortgage servicing rights. |
|
|
|
|
|
|
|
|
|
|
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