Blue Ridge Bankshares Reports $1.3 Million Net Income for Q2 2025, Significant Recovery from Prior Year

Blue Ridge Bankshares, Inc. reported a net income of $1.3 million, or $0.01 per diluted share, for the three months ended June 30, 2025, a significant recovery from a net loss of $11.4 million, or $(0.47) per share, in the same period of 2024. For the six months ended June 30, 2025, the company achieved a net income of $862,000, compared to a net loss of $14.3 million for the same period last year. The improvement in profitability was attributed to a recovery of credit losses and a reduction in regulatory remediation expenses, which had burdened the previous year's results.

Total assets decreased to $2.56 billion as of June 30, 2025, down from $2.74 billion at the end of 2024. This decline was primarily driven by a $133.2 million reduction in loans held for investment, which fell to $1.98 billion. The decrease in loans was part of a strategic decision to reduce balances in non-core relationships. Total deposits also decreased by $169.2 million to $2.01 billion, largely due to a drop in brokered time deposits. However, stockholders' equity increased to $344.3 million, reflecting capital raised from the exercise of warrants and a decrease in unrealized losses on securities.

Operationally, the company completed the sale of its mortgage division, Monarch Mortgage, in March 2025, which resulted in a $0.2 million loss. This sale was part of a broader strategy to streamline operations and focus on core banking activities. The company also reported a decrease in employee headcount from 503 to 333 as part of its efforts to right-size its workforce in response to regulatory directives and market conditions.

In terms of credit quality, the allowance for credit losses stood at $22.0 million as of June 30, 2025, down from $23.0 million at the end of 2024. The company reported a recovery of credit losses of $0.7 million for both the three and six months ended June 30, 2025, compared to a provision for credit losses of $3.1 million in the same periods of 2024. Nonaccrual loans totaled $22.1 million, representing 1.12% of loans held for investment, consistent with the previous year.

Looking ahead, Blue Ridge Bankshares, Inc. remains focused on enhancing its capital position and meeting the requirements of a Consent Order issued by the Office of the Comptroller of the Currency. The company is committed to improving its operational efficiency and managing its loan portfolio effectively in a challenging economic environment. The management anticipates that ongoing efforts to streamline operations and enhance credit quality will support future profitability and growth.