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Blue Ridge Bankshares, Inc. (NYSE American:BRBS), a Virginia-based state commercial bank with a market capitalization of $288 million, has entered into revised employment agreements with key executives, as per a recent 8K filing with the U.S. Securities and Exchange Commission. According to InvestingPro analysis, the bank currently appears overvalued, with challenging fundamentals including negative earnings per share of -$0.56 over the last twelve months. The amended contracts for President and CEO G. William Beale and Executive Vice President and CFO Judy C. Gavant were effective as of January 1, 2025, and were publicly filed on January 29, 2025.
The new agreements, which replace previous contracts for both executives, set a two-year term expiring on January 1, 2027, with automatic one-year extensions unless either party opts out with at least 90 days’ notice before the term ends. These leadership changes come as the bank faces financial headwinds, with InvestingPro data showing revenue decline of 0.74% in the latest reporting period.
For Mr. Beale, the updated agreement modifies the severance benefits in the event of termination without cause or resignation for good reason. The severance period now equals the greater of the remaining contract term or 12 months. Additionally, the amendment changes the payout calculation following a change in control of the company to a lump sum equal to double the sum of his annual base salary and the highest annual bonus from the previous two years.
The non-compete clause for Mr. Beale has been extended from three to 12 months post-employment and excludes fintech businesses from the non-competition definition. For Ms. Gavant, the filing did not detail specific changes other than general administrative updates.
These amendments aim to retain leadership stability and align executive compensation with the company’s long-term interests. The agreements were attached as exhibits to the 8K filing, providing transparency on the terms of these high-level executive contracts.
The information in this article is based on a press release statement from Blue Ridge Bankshares, Inc. and provides an overview of the key changes to the employment agreements of its top executives. With the bank’s next earnings report due in 7 days, InvestingPro subscribers can access additional insights through 12+ exclusive tips and comprehensive financial metrics to better understand the company’s performance and outlook.
In other recent news, Blue Ridge Bankshares, Inc. has made significant strides in its financial management. The company issued a substantial number of common shares and a warrant to Castle Creek Capital Partners (WA:CPAP) VIII, LP in a private exchange. This transaction involved the conversion of Blue Ridge Bankshares’ Series C Preferred Stock and a warrant into common stock and a new warrant, aligning with the terms of an Exchange Agreement between the two entities.
Simultaneously, the company held its annual shareholder meeting, resulting in key decisions such as the election of seven directors and approval of the Amended and Restated 2023 Stock Incentive Plan. Another notable development was the departure of C. Douglass Riddle, the Executive Vice President and Commercial Banking Executive.
Blue Ridge Bankshares also underwent substantial stock changes, including the automatic conversion of its Series B Preferred Stock into common stock and the expansion of its authorized shares of common stock from 50 million to 150 million. These are recent developments that provide insight into the company’s strategic efforts to streamline its capital structure and effectively manage its financial instruments.
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