Blue Ridge Bankshares (BRBS) 8-K Blue Ridge Bankshares, Inc. Announces Third Quarter and Year-to-date 2021 Results

Exhibit 99.1

Blue Ridge Bankshares, Inc. Announces Third Quarter and Year-to-date 2021 Results

Charlottesville, Va., November 4, 2021 – Blue Ridge Bankshares, Inc. (the “Company”) (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association (“Blue Ridge Bank”) and BRB Financial Group, Inc., announced today financial results for the quarter and year-to-date periods ended September 30, 2021. For the third quarter of 2021, the Company reported net income of $6.8 million, or $0.36 earnings per diluted common share, compared to $28.6 million, or $1.54 earnings per diluted common share, for the second quarter of 2021, and $5.1 million, or $0.59 earnings per diluted common share, for the third quarter of 2020. For the nine months ended September 30, 2021, the Company reported net income of $39.7 million, or $2.26 earnings per diluted common share, compared to $12.1 million, or $1.42 earnings per diluted common share, for the same period of 2020. Earnings per diluted common share for all periods presented is reflective of the 3-for-2 stock split effective April 30, 2021. Net income for the nine months ended September 30, 2021 included an after-tax gain of $19.2 million resulting from the sale in second quarter of 2021 of over $700 million of loans originated under the Paycheck Protection Program (“PPP”). Net income for all periods presented also reflected merger-related expenses, as further discussed below.

On January 31, 2021, the Company completed the merger of Bay Banks of Virginia, Inc. (“Bay Banks”), the holding company of Virginia Commonwealth Bank, into the Company. Immediately following the completion of the merger, Virginia Commonwealth Bank was merged into Blue Ridge Bank (collectively, the “Bay Banks Merger”). Earnings for the first nine months of 2021 include the earnings of Bay Banks from the effective date of the merger.

On July 14, 2021, the Company and FVCBankcorp, Inc. (“FVCB”) jointly announced they had entered into a definitive agreement pursuant to which the companies will combine in an all-stock merger of equals (the “FVCB Merger”). The FVCB Merger is subject to customary closing conditions, including regulatory approvals and approval from the shareholders of both companies. The Company has learned that the Office of the Comptroller of the Currency (the “OCC”) identified certain regulatory concerns with Blue Ridge Bank that could impact the application process and timing of the FVCB Merger. Blue Ridge Bank has already commenced an initiative intended to fully address the OCC’s concerns. The Company anticipates the FVCB Merger will close in the second or third quarter of 2022.

Net income for the third and second quarters of 2021 included approximately $1.1 million and $1.0 million, respectively, in after-tax expenses related to the Bay Banks Merger and the FVCB Merger, while earnings for the third quarter of 2020 included approximately $1.0 million in after-tax merger-related expenses.

“Our team had a productive third quarter,” said Brian K. Plum, President and Chief Executive Officer. “Loan pipelines are at historically high levels and our expectation is that will convert to higher loan balances. The consolidation of five branch locations at quarter-end and growth in our fintech division’s balances illustrate continued progress in improving our delivery channels to enhance our future customer experience.”

“Mortgage volumes remain at elevated levels, though margin compression, particularly in wholesale mortgage, has negatively impacted mortgage division profitability,” added Plum.

Paycheck Protection Program

During 2021, the Company funded over 20,000 PPP loans with principal balances of approximately $730 million pursuant to the Economic Aid Act, passed at the end of December 2020 (“PPP2 loans”). Of the PPP2 loans, approximately 19,500 with principal balances of $712.6 million were sold on June 28, 2021. Gross proceeds from the sale were $705.9 million, and the Company recorded a pre-tax gain of $24.3 million on the sale after giving effect to $30.9 million of unearned fees, net of deferred costs, and the sale discount. As of September 30, 2021, the Company held $14.7 million of PPP2 loans, and unearned fees, net of deferred costs, totaled $676 thousand. PPP2 loans, if not forgiven, have a five-year term and a stated interest rate of 1%. As of September 30, 2021, the Company held $32.6 million of PPP loans funded in 2020, pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“PPP1 loans”). PPP1 loans, if not forgiven, have a one- or five-year term, depending on origination date, and a stated interest rate of 1%.

Processing fees, net of costs, and interest income earned by the Company for PPP loans in the amounts of $712 thousand and $11.7 million were recognized as interest income in the third and second quarters of 2021, respectively, and the amount for the nine months ended September 30, 2021 was $16.9 million. Net processing fees for PPP loans are being recognized over the expected life of these loans, which is one to three years depending on the original loan balance.

The Company’s PPP loans are primarily funded using the Federal Reserve Bank’s Paycheck Protection Program Liquidity Facility (“PPPLF”). As of September 30, 2021, outstanding advances under the PPPLF were $33.9 million. The PPPLF provided funding for the full amount and term of the PPP loans at a fixed annual cost of 0.35%. PPP loans do not count toward bank regulatory capital ratios.

Fintech Business

The Company continues to grow its partnerships with fintech providers and ended the third quarter of 2021 with active partnerships, including Unit, Flexible Finance, Increase, Upgrade, Kashable, Jaris, Aeldra, Grow Credit, MentorWorks, and Marlette. Loans and deposits related to fintech relationships were approximately $40.7 million and $76.6 million, respectively, as of September 30, 2021, compared to $10.3 million and $35.3 million, respectively, as of December 31, 2020.

Mortgage Division

The Company’s mortgage division, which consists of a retail division operating as Monarch Mortgage and a wholesale division operating as LenderSelect Mortgage Group, recorded net income of $1.5 million for the third quarter of 2021 compared to $764 thousand for the second quarter of 2021. Mortgage volumes for the third and the second quarters of 2021 were $325.9 million and $337.5 million, respectively. Noninterest expenses recorded for the Company’s mortgage division were $8.0 million and $8.9 million for the third and second quarters of 2021, respectively.

Balance Sheet

The Company reported total assets of $2.70 billion at September 30, 2021, an increase of $1.20 billion from $1.50 billion at December 31, 2020. The increase in total assets was primarily due to the Bay Banks Merger, which increased assets by $1.22 billion at the effective date of the merger. Loans held for investment, excluding PPP loans, increased $1.02 billion to $1.75 billion at September 30, 2021 from $732.9 million at December 31, 2020. Loan growth in the third quarter of 2021 totaled $22.8 million.

Total deposits at September 30, 2021 were $2.20 billion, an increase of $1.26 billion from December 31, 2020, of which $1.03 billion were assumed in the Bay Banks Merger at the effective date of the merger. The Company’s expanding relationships with fintech partners have resulted in $41.3 million of deposit growth in the nine months ended September 30, 2021.

As previously noted, the majority of PPP loans were funded through the PPPLF, resulting in a decrease in Federal Reserve Bank of Richmond (“FRB”) advances upon the sale of PPP2 loans in the second quarter of 2021. Additionally, the Company redeemed its outstanding subordinated notes with initial aggregate principal balances of $10.0 million and $7.0 million in the second and third quarters of 2021, respectively. The Company assumed $31.9 million of subordinated debt in the Bay Banks Merger.

Income Statement

Net Interest Income

Net interest income was $21.1 million for the third quarter of 2021 compared to $30.5 million for the second quarter of 2021 and $11.8 million for the third quarter of 2020. Included in interest income for the third quarter of 2021 were approximately $712 thousand in PPP fees, net of costs, and interest income, whereas in the second quarter of 2021, PPP fees, net of costs, and interest income were $11.7 million, a decrease of $11.0 million. The decrease in net interest income on a sequential quarter basis was primarily attributable to the previously noted PPP2 loan sale on June 28, 2021. Funding costs for PPP loans under the PPPLF were approximately $59 thousand and $382 thousand of interest expense for the third and second quarters of 2021, respectively. Partially offsetting the decline in net interest income from PPP loans was greater interest income from fintech loans and higher balances of investments and lower borrowing costs. Accretion of acquired loan discounts included in interest income in the third and second quarters of 2021 were $112 thousand and $886 thousand, respectively, while amortization of purchase accounting adjustments on assumed time deposits and borrowings were $886 thousand and $1.0 million in the same respective periods.

Net interest margin for the third quarter of 2021 was 3.32% compared to 3.82% for the second quarter of 2021 and 3.26% for the third quarter of 2020. PPP loans, including the corresponding funding, had a 1, 56, and 23 basis point positive effect on the Company’s net interest margin for the third quarter of 2021, second quarter of 2021, and third quarter of 2020, respectively. Additionally, accretion and amortization of purchase accounting adjustments related to the Bay Banks Merger had a 16 and 22 basis point positive effect on net interest margin for the third and second quarters of 2021, respectively. Excluding the impact of PPP and purchase accounting adjustments, the Company continues to experience a decline in net interest margin due to the replacement of higher priced loans and greater liquidity invested in lower yielding securities, partially offset by the re-pricing of higher priced term deposits and the reduction in subordinated notes. Cost of deposits were 0.29% for the third and second quarters of 2021 and 0.64% for the third quarter of 2020.

Provision for Loan Losses

The Company recorded no provision for loan losses for the quarter and year-to-date periods ended September 30, 2021 compared to provision expense of $4.0 million and $8.1 million for the same respective periods of 2020. In 2020, the Company increased its allowance for loan losses through the application of a qualitative factor in response to potential credit losses as a result of the COVID-19 pandemic. The decline in the Company’s allowance for loan losses in the nine months ended September 30, 2021 was due to the release of the COVID-19 factor, partially offset by organic loan growth, reserves for fintech related loans, and reserve needs for loans that have migrated from the Company’s acquired loan pools.

Noninterest Income

Noninterest income for the third quarter of 2021 was $13.5 million compared to $36.4 million and $17.6 million for the second quarter of 2021 and the third quarter of 2020, respectively. Noninterest income for the second quarter of 2021 included a net gain of $24.3 million realized on the sale of PPP loans.

Mortgage banking income, including mortgage servicing rights, contributed $9.5 million of noninterest income in the third quarter of 2021 compared to $9.0 million in the second quarter of 2021 and $16.0 million in the third quarter of 2020. Other income in the third and second quarters of 2021 included $1.0 million and $640 thousand of fair value adjustments, respectively, for the Company’s investments in certain fintech companies. Noninterest income for the nine months ended September 30, 2021 and 2020 was $65.8 million and $38.8 million, respectively. Excluding the gain on sale of PPP loans, noninterest income for the nine months ended September 30, 2021 was $41.4 million, a $2.6 million increase over the same period of 2020.

Noninterest Expense

Noninterest expense for the third and second quarters of 2021 was $25.6 million and $30.5 million, respectively, compared to $18.7 million for the third quarter of 2020. Noninterest expenses added with the Bay Banks Merger are included since the effective date of the merger. Merger-related expenses for the third and second quarters of 2021 and the third quarter of 2020 were $1.4 million, $1.2 million, and $1.3 million, respectively. Salaries and employee benefit expenses decreased $2.9 million in the third quarter of 2021 from the second quarter of 2021, primarily due to greater incentive expenses recorded in the second quarter. Also contributing to lower noninterest expenses in the third quarter of 2021 compared to the second quarter of 2021 were lower expenses in the Company’s mortgage division. Noninterest expense for the nine months ended September 30, 2021 and 2020 was $86.7 million and $45.5 million, respectively. Included in these amounts were merger-related expenses of $11.7 million and $1.7 million for the same respective periods.

Asset Quality

Nonperforming loans, which include nonaccrual loans and loans 90 days or more past due and accruing interest¹, totaled $15.2 million at September 30, 2021, an increase of $8.6 million from December 31, 2020. The ratio of nonperforming loans to total assets was 0.56% as of September 30, 2021 and 0.44% as of December 31, 2020. The Company’s allowance for loan losses was $12.6 million at September 30, 2021, or 0.72% as a percentage of gross loans held for investment, excluding PPP loans, compared to 1.89% at December 31, 2020. The Company holds no allowance for loan losses on PPP loans as they are fully guaranteed by the U.S. government. The decrease in the allowance for loan losses as a percentage of gross loans held for investment since December 31, 2020 was primarily attributable to the loans acquired in the Bay Banks Merger, for which no allowance for loan losses carried over in the merger. Remaining acquired loan discounts related to loans acquired in the Company’s mergers were $17.0 million as of September 30, 2021 compared to $1.2 million as of December 31, 2020.

¹ Excluding purchased credit-impaired loans.

Capital

The Company previously announced that on September 15, 2021, its board of directors declared a $0.12 per common share quarterly dividend, payable October 29, 2021 to shareholders of record as of October 21, 2021. Tangible book value per share, a non-GAAP (defined below) measure, was $12.69 and $10.03 as of September 30, 2021 and December 31, 2020, respectively.

Non-GAAP Financial Measures

The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing practices in the banking industry. However, management uses certain non-GAAP measures to supplement the evaluation of the Company’s performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information

that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release.

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 phases 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: (i) the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; (ii) geopolitical conditions, including acts or threats of terrorism, 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 in the United States and abroad; (iii) the effects of the COVID-19 pandemic, including the adverse impact on the Company’s business and operations and on the Company’s customers which may result, among other things, in increased delinquencies, defaults, foreclosures and losses on loans; (iv) the occurrence of significant natural disasters, including severe weather conditions, floods, health related issues, and other catastrophic events; (v) the Company’s management of risks inherent in its real estate loan portfolio, 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; (vi) changes in consumer spending and savings habits; (vii) technological and social media changes; (viii) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, inflation, interest rate, market and monetary fluctuations; (ix) 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 Company’s subsidiary 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; (x) the impact of changes in financial services policies, laws and regulations, including laws, regulations and policies concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies; (xi) the impact of changes in laws, regulations and policies affecting the real estate industry; (xii) the effect of changes in accounting policies and practices, as may be adopted from time to time by bank regulatory agencies, the Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setting bodies; (xiii) the timely development of competitive new products and services and the acceptance

of these products and services by new and existing customers; (xiv) the willingness of users to substitute competitors’ products and services for the Company’s products and services; (xv) expenses related to the FVCB Merger, unexpected delays related to the FVCB Merger, or the inability to obtain regulatory and shareholder approvals or satisfy other closing conditions required to complete the FVCB Merger within the expected time frame, or at all; (xvi) the businesses of the Company and FVCB may not be integrated successfully or such integration may be more difficult, time-consuming, or costly than expected; (xvii) customer and employee relationships and business operations may be disrupted by the Bay Banks Merger or the FVCB Merger; (xviii) the effects of the Bay Banks Merger, the FVCB Merger and other acquisitions the Company may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such transactions; (xix) changes in the level of the Company’s nonperforming assets and charge-offs; (xx) the Company’s involvement, from time to time, in legal proceedings and examination and remedial actions by regulators; (xxi) potential exposure to fraud, negligence, computer theft and cyber-crime; (xxii) the Company’s ability to pay dividends; (xxiii) the Company’s involvement as a participating lender in the PPP as administered through the Small Business Administration; and (xxiv) other risks and factors identified in the “Risk Factors” sections and elsewhere in documents the Company files from time to time with the SEC.

Blue Ridge Bankshares, Inc.

Consolidated Balance Sheets

(Dollars in thousands except share data)	(unaudited) September 30, 2021			December 31, 2020 (2)
Assets
Cash and due from banks	$	53,077		$	117,945
Federal funds sold		144,376			775
Securities available for sale, at fair value		360,098			109,475
Restricted equity and other investments		19,343			11,173
Loans held for sale		144,111			148,209
Paycheck Protection Program loans, net of deferred fees and costs		46,648			288,533
Loans held for investment, net of deferred fees and costs		1,752,453			732,883
Less allowance for loan losses		(12,614	)		(13,827	)
Loans held for investment, net		1,739,839			719,056
Accrued interest receivable		9,900			5,428
Other real estate owned		227			—
Premises and equipment, net		26,963			14,831
Right-of-use asset		5,645			5,328
Bank owned life insurance		46,278			15,724
Goodwill		26,826			19,619
Other intangible assets		8,099			2,581
Mortgage derivative asset		3,456			5,293
Mortgage servicing rights, net		14,976			7,084
Mortgage brokerage receivable		4,316			8,516
Interest rate swap asset		5,838			1,716
Other assets		39,286			16,972
Total assets	$	2,699,302		$	1,498,258
Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing demand	$	684,859		$	333,051
Interest-bearing demand and money market deposits		828,477			282,263
Savings		144,904			78,352
Time deposits		541,964			251,443
Total deposits		2,200,204			945,109
FHLB borrowings		125,115			115,000
FRB borrowings		33,857			281,650
Subordinated notes, net		40,503			24,506
Lease liability		7,113			5,506
Interest rate swap liability		1,239			2,735
Other liabilities		21,551			15,552
Total liabilities		2,429,582			1,390,058
Commitments and contingencies
Stockholders’ Equity:
Common stock, no par value; 25,000,000 shares authorized; 18,776,307 and 8,577,932 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively (1)		193,770			66,771
Additional paid-in capital		252			252
Retained earnings		73,189			40,688
Accumulated other comprehensive income		2,283			264
		269,494			107,975
Noncontrolling interest		226			225
Total stockholders’ equity		269,720			108,200
Total liabilities and stockholders’ equity	$	2,699,302		$	1,498,258

(1) Common stock as of the periods presented is reflective of the 3-for-2 stock split that was effective April 30, 2021.

(2) Derived from audited December 31, 2020 Consolidated Financial Statements.

Blue Ridge Bankshares, Inc.

Consolidated Statements of Income (unaudited)

	For the Three Months Ended
(Dollars in thousands except per share data)	September 30, 2021		June 30, 2021		September 30, 2020
Interest income:
Interest and fees on loans	$	22,294	$	32,591	$	13,780
Interest on taxable securities		1,317		1,133		634
Interest on nontaxable securities		61		64		30
Interest on deposit accounts and federal funds sold		82		24		—
Total interest income		23,754		33,812		14,444
Interest expense:
Interest on deposits		1,622		1,682		1,515
Interest on subordinated notes		644		868		411
Interest on FHLB and FRB borrowings		364		800		689
Total interest expense		2,630		3,350		2,615
Net interest income		21,124		30,462		11,829
Provision for loan losses		—		—		4,000
Net interest income after provision for loan losses		21,124		30,462		7,829
Noninterest income:
Gain on sale of Paycheck Protection Program loans		—		24,315		—
Residential mortgage banking income, net		7,704		7,254		14,400
Mortgage servicing rights		1,827		1,707		1,645
Gain on sale of government guaranteed loans		108		143		516
Wealth and trust management		499		833		—
Service charges on deposit accounts		376		370		215
Increase in cash surrender value of bank owned life insurance		278		237		94
Payroll processing		223		213		221
Bank and purchase card, net		497		299		211
Other		2,006		1,054		311
Total noninterest income		13,518		36,425		17,613
Noninterest expense:
Salaries and employee benefits		14,774		17,642		11,880
Occupancy and equipment		1,743		1,868		922
Data processing		893		1,534		656
Legal, issuer, and regulatory filing		372		489		291
Advertising and marketing		452		247		165
Communications		761		673		214
Audit and accounting fees		195		291		98
FDIC insurance		487		9		187
Intangible amortization		500		506		232
Other contractual services		633		666		516
Other taxes and assessments		547		1,078		280
Merger-related		1,441		1,237		1,264
Other		2,839		4,308		1,971
Total noninterest expense		25,637		30,548		18,676
Income before income tax		9,005		36,339		6,766
Income tax expense		2,199		7,697		1,707
Net income	$	6,806	$	28,642	$	5,059
Net loss attributable to noncontrolling interest		4		4		4
Net income attributable to Blue Ridge Bankshares, Inc.	$	6,810	$	28,646	$	5,063
Net income available to common stockholders	$	6,810	$	28,646	$	5,063
Basic and diluted earnings per common share (EPS) (1)	$	0.36	$	1.54	$	0.59

(1) EPS has been adjusted for all periods presented to reflect the 3-for-2 stock split that was effective April 30, 2021.

Blue Ridge Bankshares, Inc.

Consolidated Statements of Income (unaudited)

	For the Nine Months Ended
(Dollars in thousands except per share data)	September 30, 2021			September 30, 2020
Interest income:
Interest and fees on loans	$	76,248		$	35,766
Interest on taxable securities		3,580			2,147
Interest on nontaxable securities		177			119
Interest on deposit accounts and federal funds sold		137			2
Total interest income		80,142			38,034
Interest expense:
Interest on deposits		4,844			4,889
Interest on subordinated notes		2,142			854
Interest on FHLB and FRB borrowings		1,553			1,794
Total interest expense		8,539			7,537
Net interest income		71,603			30,497
Provision for loan losses		—			8,075
Net interest income after provision for loan losses		71,603			22,422
Noninterest income:
Gain on sale of Paycheck Protection Program loans		24,315			—
Residential mortgage banking income, net		24,259			31,969
Mortgage servicing rights		6,905			3,241
Gain on sale of government guaranteed loans		1,325			779
Wealth and trust management		1,934			—
Service charges on deposit accounts		1,073			669
Increase in cash surrender value of bank owned life insurance		679			278
Payroll processing		706			736
Bank and purchase card, net		1,096			483
Other		3,460			651
Total noninterest income		65,752			38,806
Noninterest expense:
Salaries and employee benefits		46,425			29,886
Occupancy and equipment		4,968			2,653
Data processing		3,272			1,649
Legal, issuer, and regulatory filing		1,437			781
Advertising and marketing		989			518
Communications		1,802			536
Audit and accounting fees		675			278
FDIC insurance		839			568
Intangible amortization		1,406			608
Other contractual services		2,152			870
Other taxes and assessments		1,973			748
Merger-related		11,697			1,710
Other		9,062			4,688
Total noninterest expense		86,697			45,493
Income before income tax		50,658			15,735
Income tax expense		10,973			3,618
Net income	$	39,685		$	12,117
Net income attributable to noncontrolling interest		(1	)		(2	)
Net income attributable to Blue Ridge Bankshares, Inc.	$	39,684		$	12,115
Net income available to common stockholders	$	39,684		$	12,115
Basic and diluted earnings per common share (EPS) (1)	$	2.26		$	1.42

(1) EPS has been adjusted for all periods presented to reflect the 3-for-2 stock split that was effective April 30, 2021.

Blue Ridge Bankshares, Inc.

Five Quarter Summary of Selected Financial

Data (unaudited)

	As of and for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars and shares in thousands, except share data)	2021			2021			2021			2020			2020
Income Statement Data:
Interest income	$	23,754		$	33,812		$	22,576		$	16,426		$	14,444
Interest expense		2,630			3,350			2,559			2,412			2,615
Net interest income		21,124			30,462			20,017			14,014			11,829
Provision for loan losses		—			—			—			2,375			4,000
Net interest income after provision for loan losses		21,124			30,462			20,017			11,639			7,829
Noninterest income		13,518			36,425			15,809			17,436			17,611
Noninterest expenses		25,637			30,548			30,512			22,312			18,674
Income before income taxes		9,005			36,339			5,314			6,763			6,766
Income tax expense		2,199			7,697			1,077			1,182			1,707
Net income		6,806			28,642			4,237			5,581			5,059
Net loss (income) attributable to noncontrolling interest		4			4			(9	)		—			4
Net income attributable to Blue Ridge Bankshares, Inc.	$	6,810		$	28,646		$	4,228		$	5,581		$	5,063
Per Common Share Data:
Earnings per share - basic (2)	$	0.36		$	1.54		$	0.28		$	0.65		$	0.59
Earnings per share - diluted (2)		0.36			1.54			0.28			0.65			0.59
Dividends declared - post-stock split basis		0.240			—			0.195			—			0.095
Book value per common share (2)		14.48			14.32			12.88			12.61			11.65
Tangible book value per common share (2) - Non-GAAP		12.69			12.49			11.02			10.03			9.05
Balance Sheet Data:
Assets	$	2,699,302		$	2,764,730		$	3,167,374		$	1,498,258		$	1,523,299
Loans held for investment (including PPP loans)		1,799,101			1,859,870			2,304,542			1,021,416			1,072,377
Loans held for investment (excluding PPP loans)		1,752,453			1,729,677			1,706,916			732,883			710,577
Allowance for loan losses		12,614			13,007			13,402			13,827			12,123
Purchase accounting adjustments (discounts) on acquired loans		16,985			16,987			18,691			1,248			1,372
Loans held for sale		144,111			146,985			122,453			148,209			159,925
Securities		379,441			276,619			293,555			120,648			123,329
Deposits		2,200,204			2,190,571			2,140,118			945,109			915,266
Subordinated notes, net		40,503			46,149			54,588			24,506			24,489
FHLB and FRB advances		158,972			222,502			692,789			396,650			459,611
Total stockholders’ equity		269,720			266,826			239,734			108,200			99,930
Average common shares outstanding - basic (2)		18,776			18,625			15,137			8,579			8,579
Average common shares outstanding - diluted (2)		18,799			18,646			15,154			8,579			8,579
Financial Ratios:
Return on average assets (1)		0.95	%		3.39	%		0.68	%		1.48	%		1.30	%
Operating return on average assets (1) - Non-GAAP		1.16	%		3.50	%		1.84	%		1.62	%		1.56	%
Return on average equity (1)		11.58	%		47.39	%		8.69	%		21.45	%		20.75	%
Operating return on average equity (1) - Non-GAAP		11.87	%		49.01	%		23.29	%		23.46	%		24.84	%
Total loan to deposit ratio		88.3	%		91.6	%		113.4	%		123.8	%		134.6	%
Held for investment loan to deposit ratio		81.8	%		84.9	%		107.7	%		108.1	%		117.2	%
Net interest margin (1)		3.32	%		3.82	%		3.43	%		3.88	%		3.26	%
Cost of deposits (1)		0.29	%		0.29	%		0.36	%		0.56	%		0.64	%
Efficiency ratio		74.0	%		45.7	%		85.2	%		70.9	%		63.4	%
Operating efficiency ratio - Non-GAAP		69.8	%		43.8	%		60.0	%		68.8	%		59.1	%
Merger-related expenses (MRE)		1,441			1,237			9,019			662			1,264
Capital and Asset Quality Ratios:
Average stockholders’ equity to average assets		9.7	%		7.1	%		7.9	%		6.9	%		6.3	%
Allowance for loan losses to loans held for investment, excluding PPP loans		0.72	%		0.75	%		0.79	%		1.89	%		1.71	%
Nonperforming loans to total assets		0.56	%		0.43	%		0.17	%		0.44	%		0.30	%
Nonperforming assets to total assets		0.57	%		0.45	%		0.19	%		0.44	%		0.30	%

Reconciliation of Non-GAAP Financial Measures (unaudited):
Tangible Common Equity:
Total stockholders’ equity	$	269,720		$	266,826		$	239,734		$	108,200		$	99,930
Less: Goodwill and other intangibles, net of deferred tax liability (3)		(33,224	)		(34,153	)		(34,556	)		(22,200	)		(22,279	)
Tangible common equity (Non-GAAP)	$	236,496		$	232,673		$	205,178		$	86,000		$	77,651
Total shares outstanding (2)		18,631			18,631			18,618			8,579			8,579
Book value per share	$	14.48		$	14.32		$	12.88		$	12.61		$	11.65
Tangible book value per share (Non-GAAP)		12.69			12.49			11.02			10.03			9.05
Tangible stockholders’ equity to tangible total assets
Total assets	$	2,699,302		$	2,764,730		$	3,167,374		$	1,498,258		$	1,523,299
Less: Goodwill and other intangibles, net of deferred tax liability (3)		(33,224	)		(34,153	)		(34,556	)		(22,200	)		(22,279	)
Tangible total assets (Non-GAAP)	$	2,666,078		$	2,730,577		$	3,132,818		$	1,476,058		$	1,501,020
Tangible common equity (Non-GAAP)	$	236,496		$	232,673		$	205,178		$	86,000		$	77,651
Tangible stockholders’ equity to tangible total assets (Non-GAAP)		8.9	%		8.5	%		6.5	%		5.8	%		5.2	%
Operating return on average assets (annualized)
Net income	$	6,806		$	28,642		$	4,237		$	5,581		$	5,059
Add: MRE, after-tax basis (ATB) (4)		1,138			977			7,125			523			999
Operating net income (Non-GAAP)	$	7,944		$	29,619		$	11,362		$	6,104		$	6,058
Average assets	$	2,749,909		$	3,383,015		$	2,475,912		$	1,510,779		$	1,554,549
Operating return on average assets (annualized) (Non-GAAP)		1.16	%		3.50	%		1.84	%		1.62	%		1.56	%
Operating return on average equity (annualized)
Net income	$	6,806		$	28,642		$	4,237		$	5,581		$	5,059
Add: MRE, ATB (4)		1,138			977			7,125			523			999
Operating net income (Non-GAAP)	$	7,944		$	29,619		$	11,362		$	6,104		$	6,058
Average stockholders’ equity	$	267,670		$	241,731		$	195,103		$	104,065		$	97,545
Operating return on average equity (annualized) (Non-GAAP)		11.87	%		49.01	%		23.29	%		23.46	%		24.84	%
Operating efficiency ratio
Total noninterest expense	$	25,637		$	30,548		$	30,512		$	22,312		$	18,674
Less: MRE		1,441			1,237			9,019			662			1,264
Noninterest expense excluding MRE (Non-GAAP)	$	24,196		$	29,311		$	21,493		$	21,650		$	17,410
Net interest income		21,124			30,462			20,017			14,014			11,829
Noninterest income		13,518			36,425			15,809			17,436			17,611
Total of net interest income and noninterest income		34,642			66,887			35,826			31,450			29,440
Operating efficiency ratio (Non-GAAP)		69.8	%		43.8	%		60.0	%		68.8	%		59.1	%

(1) Annualized.

(2) Shares outstanding as of and for the periods stated are reflective of the 3-for-2 stock split that was effective April 30, 2021.

(3) Excludes mortgage servicing rights.

(4) Assumes an income tax rate of 21% and full deductibility.