XML 17 R8.htm IDEA: XBRL DOCUMENT
v3.23.3

Organization and Basis of Presentation | 3 Months Ended
--- | ---
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Organization and Basis of Presentation | Note 1 – Organization and Basis of Presentation (Restated) This note has been restated to reflect the changes described in the Explanatory Note and in the Restatement section of this Note 1, below, of this Form 10-Q/A. Blue Ridge Bankshares, Inc. (the “Company”) conducts its business activities primarily through its wholly-owned subsidiary bank, Blue Ridge Bank, National Association (the “Bank”) and its wealth and trust management subsidiary, BRB Financial Group, Inc. (the “Financial Group”). The Company exists primarily for the purposes of holding the stock of its subsidiaries, the Bank and the Financial Group. The accompanying unaudited consolidated financial statements of the Company include the accounts of the Bank and the Financial Group and were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2022. Restatement The Company is restating its financial statements to report certain specialty finance loans that were placed on nonaccrual, reserved for, or charged off in the interim periods ended March 31, 2023 and June 30, 2023, and to report such specialty finance loans as nonaccrual, reserved for, or charged off in earlier periods. The effect of the adjustments has resulted in higher net income and earnings per share for the three months ended March 31, 2023. Balance sheet amounts, including loans held for investment, allowance for credit losses, accrued interest receivable, deferred tax asset, other assets, and shareholders’ equity, are affected as of March 31, 2023. The following tables provide a summary of the adjustments as of and for the three months ended March 31, 2023 included in the Explanatory Note of this Form 10-Q/A.
|  | For the three months ended March 31, 2023 |
Dollars in thousands, except per share data (unaudited) |  | As Reported |  |  | Adjustments |  |  | As Restated |
Net interest income |  | $ | 27,359 |  |  | $ | (2,163 | ) | (a) | $ | 25,196 |
Provision (benefit) for credit losses - loans |  |  | 4,100 |  |  |  | (5,210 | ) | (b) |  | (1,110 | )
Income from continuing operations before income tax expense |  |  | 2,095 |  |  |  | 3,047 |  |  |  | 5,142 |
Income tax expense |  |  | 491 |  |  |  | 681 |  | (d) |  | 1,172 |
Net income from continuing operations |  | $ | 1,604 |  |  | $ | 2,366 |  |  | $ | 3,970 |
Basic and diluted earnings per common share from continuing operations |  | $ | 0.09 |  |  | $ | 0.12 |  |  | $ | 0.21 |
|  | As of March 31, 2023 |
Dollars in thousands (unaudited) |  | As Reported |  |  | Adjustments |  |  | As Restated |
Loans held for investment, net of deferred fees and costs |  | $ | 2,448,992 |  |  | $ | (4,197 | ) | (e) | $ | 2,444,795 |
Allowance for credit losses |  |  | (29,974 | ) |  |  | (5,987 | ) | (c) |  | (35,961 | )
Accrued interest receivable |  |  | 14,915 |  |  |  | (790 | ) | (e) |  | 14,125 |
Deferred tax asset, net |  |  | 9,605 |  |  |  | 3,123 |  | (d) |  | 12,728 |
Other assets |  |  | 21,264 |  |  |  | (3,000 | ) | (e) |  | 18,264 |
Total assets |  | $ | 3,334,911 |  |  | $ | (10,851 | ) |  | $ | 3,324,060 |
Total stockholders' equity |  | $ | 257,586 |  |  | $ | (10,851 | ) |  | $ | 246,735 |
(a) - Attributable to $63.5 million of specialty finance loans reported as nonaccrual (as restated), previously reported as accruing as of March 31, 2023. See Note 4 for restated disclosures. |
(b) - Attributable to adjustments to specific reserves for specialty finance loans. See Note 4 for restated disclosures. |
(c) - Attributable to adjustments noted in (b) and for adjustments for the implementation of ASC 326. See Note 2 for restated disclosures. |
(d) - Deferred income tax benefit of 22.35% on pre-tax adjustments. |
(e) - Related to reversal of accrued interest receivable associated with (a), reversal of capitalized accrued interest previously reported in loans held for investment, and to reflect the application of cash received in the first quarter of 2023 as a reduction in loans held for investment previously reported as interest and fee income on loans. |
For the convenience of the reader, this Form 10-Q/A sets forth the information in the original Form 10-Q filing in its entirety; however, only the following sections of the original Form 10-Q filing are revised in this Form 10-Q/A, solely as a result of and to reflect the restatement and conditions related to the restatement noted above.
Part I, Item 1 | Financial Statements and Notes to Consolidated Financial Statements
Notes: | Note 1 - Organization and Basis of Presentation
| Note 2 - Adoption of New Accounting Standard
| Note 4 - Loans and ACL
| Note 10 - Fair Value
| Note 11 - Minimum Regulatory Capital Requirements
| Note 13 - Earnings Per Share
| Note 14 - Business Segments
| Note 17 - Subsequent Events
Item 2 | Management's Discussion and Analysis of Financial Condition and Results of Operation
Item 4 | Controls and Procedures
Except as it relates to the restatement described above with related disclosures and updated subsequent events disclosures, this For m 10-Q/A does not reflect events occurring after the date of the original Form 10-Q filing. Other Matters The Company sold its majority interest in MoneyWise Payroll Solutions, Inc. (“MoneyWise”) to the holder of the minority interest in MoneyWise in the first quarter of 2022. Asset and liability balances and income statement amounts related to MoneyWise are reported as discontinued operations for all relevant periods. On August 29, 2022, the Bank entered into a formal written agreement (the “Written Agreement”) with the Office of the Comptroller of the Currency (the “OCC”), the Bank’s primary federal banking regulator. The Written Agreement principally concerns the Bank’s fintech line of business and requires the Bank to continue enhancing its controls for assessing and managing the third-party, Bank Secrecy Act/Anti-Money Laundering, and information technology risks stemming from its fintech partnerships. A complete copy of the Written Agreement was filed as an exhibit to a Form 8-K filed with the Securities and Exchange Commission (“SEC”) on September 1, 2022 and can be accessed on the SEC’s website (www.sec.gov) and the Company’s website (www.blueridgebankshares.com. The Company is actively working to bring the Bank’s fintech policies, procedures, and operations into conformity with OCC directives. The Company reports that although work is progressing, many aspects of the Written Agreement require considerable time for completion, implementation, validation, and sustainability. 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, net income per share, total assets, total liabilities, or stockholders’ equity as previously reported. The Company's significant accounting policies are disclosed in Note 2 of the audited financial statements and notes for the year ended December 31, 2022 and are contained in the Company's Annual Report on Form 10-K/A. There have been no significant changes to the application of significant accounting policies since December 31, 2022, except as described in Note 2 - Adoption of New Accounting Standard of this Form 10-Q.

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480424/946-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480424/946-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//810/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205/tableOfContent + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration