Blue Ridge Bankshares Inc (VA) (BRBS)

Shares of Blue Ridge Bankshares Inc (BRBS) dropped by 33.65% from $3.15 to $2.09 in the trading on Wednesday, November 01, 2023. The reason why BRBS is down today is due to recent developments related to the company's financial reporting.

• On October 31, 2023, the company filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC), announcing its intention to restate financial statements included in its annual report on Form 10-K for the year ended December 31, 2022, as well as its quarterly reports on Form 10-Q for the periods ending March 31, 2023, and June 30, 2023. The restatement of financial statements can raise concerns among investors, leading to a sharp decline in the stock price.
• Additionally, for the third quarter of 2023, the company reported a net loss from continuing operations of $41.4 million, or $2.18 per diluted common share, which included a non-cash, after-tax goodwill impairment charge of $26.8 million. This impairment charge, along with other factors, likely contributed to the significant decrease in BRBS's stock price.

Shares of Blue Ridge Bankshares Inc (BRBS) dropped by 8.67% from $9.23 to $8.43 in the trading on Monday, July 31, 2023. The reason why BRBS is down today is the company's second-quarter results, which revealed several factors affecting its financial performance:

• Net Interest Income: Net interest income for the second quarter of 2023 was $20.4 million, showing a decline compared to $27.4 million in the first quarter of 2023 and $24.1 million in the second quarter of 2022
• Total Interest Income: Total interest income for the second quarter of 2023 was $39.0 million, down from $43.1 million in the first quarter of 2023 and up from $26.2 million in the second quarter of 2022. The decline in total interest income compared to the prior quarter was due to the reversal of interest income related to loans placed on nonaccrual status.
• Total Interest Expense: Total interest expense for the second quarter of 2023 was $18.6 million, up from $15.7 million in the first quarter of 2023 and significantly higher than $2.2 million in the second quarter of 2022. The increase in interest expense was attributed to higher deposit and funding costs resulting from market interest rate increases and a shift in the mix of average interest-bearing liabilities.
• Net Interest Margin: The net interest margin for the second quarter of 2023 was 2.67%, down from 3.58% in the first quarter of 2023 and 3.89% in the second quarter of 2022.
• Provision for Credit Losses: The company recorded a provision for credit losses of $20.5 million for the second quarter of 2023, significantly higher than the $3.7 million in the first quarter of 2023 and $7.5 million in the second quarter of 2022. The increase was primarily due to specific reserves and charge-offs related to specialty finance loans.
• Noninterest Income: Noninterest income for the second quarter of 2023 was $9.7 million, up from $7.3 million in the first quarter of 2023 but down from $10.2 million in the second quarter of 2022.
• Noninterest Expense: Noninterest expense for the second quarter of 2023 was $34.1 million, up from $28.8 million in the first quarter of 2023 and $25.3 million in the second quarter of 2022. These financial results negatively impacted BRBS's stock price on July 31, 2023.