Blue Ridge Bankshares, the parent company of Blue Ridge Bank, National Association, and BRB Financial Group, has released its financial results for the quarter ending September 30, 2023. However, following this announcement, the stock of Blue Ridge Bankshares saw a significant decline today.
At the time of this publication, Blue Ridge Bankshares Inc stock (BRBS) has witnessed a decline.
Blue Ridge Bankshares Inc
Current Price: $2.17
Change : -0.98
Change (%): (-31.11%)
Volume: 296.2K
Source: Tomorrow Events Market Data
On October 31, 2023, the company filed a Form 8-K with the U.S. Securities and Exchange Commission (“SEC”) stating 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 concluding on March 31, 2023, and June 30, 2023. The financial information provided here for those specified periods is based on the company’s current expectations of the restated amounts for those periods. The revised financial statements will be reflected in amendments to the aforementioned reports, to be submitted to the SEC in the coming weeks.
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. This compares to a net loss from continuing operations of $8.6 million, or $0.45 per diluted common share, for the second quarter of 2023, and net income from continuing operations of $2.7 million, or $0.15 per diluted common share, for the third quarter of 2022.
The net loss from continuing operations for the third quarter of 2023 includes a non-cash, after-tax goodwill impairment charge of $26.8 million, which constituted the entire goodwill balance, as well as a $6.0 million settlement reserve for the previously disclosed Employee Stock Ownership Plan (“ESOP”) litigation inherited from the 2019 acquisition of Virginia Community Bankshares, Inc. (“VCB”).
Excluding the impact of the goodwill impairment charge, the ESOP settlement reserve, and regulatory remediation costs, the net loss from continuing operations for the third quarter of 2023 showed slight improvement from the second quarter of the same year. It is important to note that the goodwill impairment charge does not affect the Bank’s regulatory capital position.
