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Blue Ridge Bankshares, Inc. Reports Second Quarter Results for 2025

Blue Ridge Bankshares, Inc. (NYSE American: BRBS), the parent company of Blue Ridge Bank, has revealed its financial results for the quarter ending June 30, 2025. The report indicates a marked improvement in net income compared to previous periods, highlighting the organization's ongoing recovery and operational efficiencies.

Financial Performance Overview

For the second quarter of 2025, Blue Ridge Bankshares recorded a net income of $1.3 million, translating to $0.01 per diluted share. This represents a significant recovery from the net loss of $0.4 million, or ($0.01) per diluted share, in the first quarter and a drastic improvement from the net loss of $11.4 million, or ($0.47) per diluted share, from the same period last year.

In the first half of 2025, the total net income stood at $0.9 million, also at $0.01 per diluted share, as opposed to a loss of $14.3 million in the corresponding period of 2024. This upward trend indicates the bank's efforts to stabilize and regain profitability after difficult preceding fiscal years.

Insights from Leadership

G. William “Billy” Beale, President and CEO, expressed satisfaction with the results, pointing out, “Our previous first-quarter earnings report suggested a turn towards sustainable profitability, and we're pleased to announce the attainment of profitability in the second quarter.” He noted favorable trends in net interest margin, which rose to 3.15%, driven primarily by reduced deposit costs, despite a smaller overall balance sheet.

The improvement highlights the benefit of the bank's recent strategies in aligning service charges to market levels while aggressively managing its noninterest expenses. The organization's ongoing focus on operational efficiency is evident, with a reduction of nearly $1 million in expenses from the prior quarter, partly due to headcount reductions that saw a decrease of 109 employees in the first half of 2025.

Strategic Moves and Sale of Mortgage Division

A noteworthy development in the bank's operations came with the sale of Monarch Mortgage, finalized on March 27, 2025. This transaction, which involved transferring assets and leases to another mortgage company, did result in a $0.2 million loss but was aimed at facilitating a leaner operational focus.

Key Metrics and Trends

• - Net Income: Rose to $1.3 million from a loss of $0.4 million in Q1 2025.
• - Net Interest Income: Reached $19.8 million, showing a slight drop from the previous quarter attributed to decreased interest-earning assets.
• - Noninterest Income: Increased to $3.2 million, benefiting from higher service charges and a recovery of previous reserves.
• - Expense Management: Total noninterest expenses declined to $22 million, reflecting strategic maneuvering and continued focus on operational improvement.

Alongside financial performance, the organization achieved a capital ratio at June 30, 2025, with tangible common equity of 13.4%, compared to 12.5% in the prior quarter. This robust capital position was bolstered by the exercise of stock warrants and indicates the bank's solid foundation moving forward.

Looking Ahead

Blue Ridge Bankshares anticipates further operational improvements. With ongoing regulatory remediation activities nearing completion, expectations are for continued profitability coupled with an ambitious focus on community banking growth. CEO Beale's comments reflect optimism as the bank transitions from a phase of 'fixing' to one of 'growing', emphasizing the commitment to serving the community while stabilizing finances.

The narrative of Blue Ridge Bankshares, Inc. demonstrates resilience and strategic pivots thematically entrenched in restoring operational viability while setting sights on future growth. As the company progresses, stakeholders are encouraged to stay tuned for further updates as it works toward solidifying its foundational objectives in the evolving financial landscape.