Blue Ridge Bankshares Reports Improved Net Loss of $434,000 in Q1 2025

Blue Ridge Bankshares, Inc. reported a net loss of $434,000, or $0.01 per diluted share, for the first quarter of 2025, a significant improvement compared to a net loss of $2.9 million, or $0.15 per diluted share, in the same period of 2024. The company's total interest income decreased to $35.4 million from $42.5 million year-over-year, primarily due to a decline in average loan balances. Net interest income for the quarter was $19.0 million, down from $20.3 million in the prior year, reflecting the impact of lower loan volumes and interest rates. The allowance for credit losses remained stable at $23.1 million as of March 31, 2025, compared to $23.0 million at the end of 2024.

In terms of operational changes, Blue Ridge Bankshares completed the sale of its mortgage division, Monarch Mortgage, on March 27, 2025, resulting in a $200,000 loss reported in other noninterest income. This strategic decision aligns with the company's focus on its core banking operations and was part of a broader effort to streamline its business model. The company also saw a reduction in its employee headcount, decreasing from 519 employees in March 2024 to 351 employees in March 2025, as part of its restructuring efforts.

Total assets for Blue Ridge Bankshares decreased to $2.69 billion as of March 31, 2025, down from $2.74 billion at the end of 2024. This decline was primarily driven by a reduction in loans held for investment, which fell to $2.06 billion from $2.11 billion. Total deposits also decreased by $50 million to $2.13 billion, largely due to a drop in brokered time deposits. The company’s capital position improved, with total stockholders' equity rising to $338.3 million, up from $327.8 million, primarily due to the exercise of warrants to purchase common stock.

Looking ahead, Blue Ridge Bankshares is focused on enhancing its capital ratios and meeting the requirements set forth in a Consent Order from the Office of the Comptroller of the Currency. The company is required to maintain a leverage ratio of 10% and a total capital ratio of 13%. As of March 31, 2025, the bank's capital ratios exceeded these minimum requirements. The company anticipates continued challenges in the current economic environment, particularly in managing interest rate risk and maintaining liquidity, but remains committed to executing its strategic objectives and improving financial performance.