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Blue Ridge Bankshares Reports First Quarter 2025 Results

Blue Ridge Bankshares, Inc. (NYSE American: BRBS), the parent company of Blue Ridge Bank, has recently published its financial results for the quarter ending March 31, 2025. This report indicates a recovery trajectory with distinct improvements in key performance metrics, particularly in net interest margins and operational cost efficiencies.

Performance Summary

For the first quarter of 2025, Blue Ridge Bankshares recorded a net loss of $0.4 million, equivalent to $0.01 per diluted share. This marks a noteworthy reduction from a net loss of $2.0 million, or $0.03 per share, in the previous quarter and a substantial decrease from a loss of $2.9 million, or $0.15 per share, in the first quarter of 2024. This improvement in financial performance can be partially attributed to strategic cost-cutting measures and a pivot back to community banking.

“First quarter results suggest we are edging closer to sustainable profitability,” stated G. William "Billy" Beale, President and CEO of Blue Ridge Bankshares. “This transition has been pivotal, encompassing the exit from non-essential fintech lending activities along with considerable staff reductions—down 91 employees or 21% since the last quarter.”

Key Factors Influencing Financial Performance

1. Improved Net Interest Margin: The bank reported a sequential improvement in net interest margin, rising from 2.80% to 2.90%. This uptick is credited to a lowered cost of deposits as the bank exited the fintech banking services and shed wholesale funding.
2. Cost Reduction Strategies: The company's operational expenditures saw a reduction to $23.0 million from $25.6 million in the previous quarter. This decline is primarily due to decreased salaries, employee benefits, and consulting fees, reflecting a strategic right-sizing of the workforce. The bank aims to achieve a noninterest expense to total assets ratio of less than 3% by the fourth quarter of 2025.
3. Regulatory Compliance: Compliance with the January 2024 Consent Order set by federal regulators has been prioritized, including measures to enhance the bank's risk management framework and optimize its funding structure.

Sale of Monarch Mortgage

The bank completed the sale of its Monarch Mortgage division to an unrelated third-party mortgage company on March 27, 2025, registering a $0.2 million loss during this process. However, commitments to existing borrowers and their mortgage processes remain uninterrupted as the bank manages these operations smoothly through the transition period.

Future Outlook

Beale remarked on the company’s focus on enhancing its core deposit and loan growth. The management team aims to capitalize on its proficient commercial relationships within their service footprints while improving operational efficiencies across the board.

The reduction of operational costs and continuous adjustments in strategic direction align with the broader goals of sustainable growth and profitability. As the bank moves forward, it is poised for potential positive impacts from this proactive approach, assuring stakeholders of its commitment to return to financial stability and growth.

In summary, Blue Ridge Bankshares is on a promising upward trajectory as evidenced by its first-quarter results for 2025, supported by improved net interest margins and diligent cost control measures designed to ensure long-term profitability and compliance with regulatory standards.