BRBS

Loan Growth Returns, Improved Deposit Mix, and Continued Reduction in Operating Expenses RICHMOND, Va., Aug. 10, 2026 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced revised financial results for the quarter ended June 30, 2026. Subsequent to the original report of the Company's financial results on July 28, 2026, a commercial borrower with loans outstanding totaling $11.4 million reported that its business had ceased operations. The Company evaluated this subsequent development and, as a result, revised its estimate of expected credit losses associated with the loans. The revised estimate is reflected in the Company's consolidated financial results herein as of and for the three and six months ended June 30, 2026. For the quarter ended June 30, 2026, the Company reported a net loss of $1.3 million, or ($0.01) per diluted common share, compared to net income of $0.8 million, or $0.01 per diluted common share, for the quarter ended March 31, 2026, and net income of $1.3 million, or $0.01 per diluted common share, for the quarter ended June 30, 2025. Net loss for the second quarter of 2026 included an after-tax $3.2 million provision for credit losses, compared to an after-tax benefit for recovery of credit losses of $0.5 million for both the first quarter of 2026 and second quarter of 2025. Loans from a single out-of-market relationship originated prior to 2024 were placed on nonaccrual at June 30, 2026, and a reserve was established for the loan in the amount of $2.9 million ($2.3 million after tax). Net loss for the second quarter of 2026 also included $0.3 million of after-tax expenses related to severance, compared to $1.3 million and $0.2 million for the first quarter of 2026 and second quarter of 2025, respectively. Severance expenses include amounts associated with previously-announced executive officer transitions. Excluding severance expense, pre-tax, pre-provision income for the second quarter of 2026 improved to $2.9 million1 compared to $2.2 million1 and $1.4 million1 for the first quarter of 2026 and second quarter of 2025, respectively. For the first half of 2026, the Company reported a net loss of $0.5 million, or ($0.01) per diluted common share, compared to net income of $0.9 million, or $0.01 per diluted common share for the first half of 2025. Net loss for the 2026 period included after-tax severance expenses of $1.7 million compared to $0.8 million for the first half of 2025. "After a couple years of de-risking the balance sheet and returning our focus 100% to our community banking customers and prospects, I am pleased to report a 4% annualized loan growth rate for the second quarter. This loan growth, combined with modestly improved margins from a more favorable deposit mix and continued discipline in right-sizing our expense base, resulted in improved earnings this quarter on a pre-tax, pre-provision basis," commented Harry Golliday, interim president and chief executive officer. "We continue to have healthy economic conditions in our local markets driving business owners to invest and consumers to spend, and, as a result, our loan and deposit pipelines are encouraging. In addition, results of this quarters' expense reduction actions will be realized in the second half of 2026." Q2 2026 Highlights (Comparisons for Second Quarter 2026 are relative to First Quarter 2026 unless otherwise noted.) Net Income: Net loss for the quarter was $1.3 million, or ($0.01) per diluted common share, compared to net income of $0.8 million, or $0.01 per diluted common share, for the prior quarter. After-tax severance expense and provision for (recovery of) credit losses were $0.3 million and $3.2 million, respectively, for the quarter, compared to $1.3 million and ($0.5) million, respectively, for the prior quarter. Excluding severance expense, pre-tax, pre-provision income was $2.9 million1 and $2.2 million1 for the sequential quarters, a 30% improvement. Net Interest Income / Net Interest Margin: Net interest income totaled $16.5 million and $16.9 million for the second and first quarters, respectively. Interest income decreased by $0.5 million in the quarter, primarily due to the decline in average balances of loans held for investment, loans held for sale, and interest-earning deposits in other banks, which collectively declined $45.7 million from the prior quarter. Yields on loans held for investment were 5.54% and 5.50% for the second and first quarters, respectively. Interest expense declined by $0.2 million for the quarter, largely driven by lower average balances of brokered deposits, which declined $23.0 million from the prior quarter. Cost of deposits declined two basis points to 2.25% for the quarter, compared to 2.27% for the prior quarter, while net interest margin ("NIM") was 2.91% and 2.90% for the respective periods. Capital: On March 30, 2026, the Company announced a special cash dividend of $0.60 per share of the Company's common stock totaling approximately $54.1 million. The dividend was paid on April 27, 2026, to shareholders of record as of the close of business on April 13, 2026. The ratio of tangible common stockholders' equity to tangible total assets was 11.8%1 at the second quarter end compared to 11.4%1 at the prior quarter end, while tangible book value per common share was $3.091 compared to $3.111 as of the respective dates. At June 30, 2026, the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 11.23%, 15.10%, 15.10%, and 16.36%, respectively, compared to 11.01%, 15.33%, 15.33%, and 16.47% respectively, at the prior quarter end. Noninterest Income / Noninterest Expense: Noninterest income for the quarter was $1.8 million compared to $2.3 million for the prior quarter. Other noninterest income included a $0.6 million loss recognized upon the liquidation of an equity method investment made in 2022. The loss reflects the difference between the investment's carrying value and the final distribution received. Over the period it was held, the investment generated cumulative pre-tax income of approximately $1.9 million. Noninterest expense for the quarter was $15.9 million compared to $18.7 million for the prior quarter, a decrease of $2.8 million. Salaries and employee benefits expense declined $2.0 million, of which $1.2 million was lower severance expenses and $0.4 million was lower incentive-related expenses. Advertising and marketing expense was $0.3 million lower than the prior quarter due to the timing of marketing campaigns. Headcount as of June 30, 2026 was 269, compared to 281 at March 31, 2026, and 333 at June 30, 2025. Income Tax: Income tax (benefit) expense for the second and first quarters was ($0.3 million) and $0.3 million, respectively, with effective income tax rates for the respective periods of 20.5% and 24.9%. Balance Sheet: Total assets decreased to $2.33 billion at quarter end from $2.41 billion at the prior quarter end, a reduction of $86.7 million. The decrease was primarily driven by lower cash and cash equivalents following the payment of the previously-announced special cash dividend and the reduction of brokered time deposits. Loans held for investment grew $19.6 million, or a 4% annualized rate of growth, the first growth in 13 quarters. Total deposits, when excluding brokered deposits, decreased $9.3 million in the second quarter compared to growth of $13.4 million in the prior quarter. Brokered deposits of $21.4 million were paid off upon maturity in the quarter. The ratio of noninterest-bearing demand deposits to total deposits was 21.3% and 20.7% as of June 30, 2026 and March 31, 2026, respectively. Total stockholders' equity was $275.4 million at quarter end compared to $277.0 million at the prior quarter end, a decrease of $1.6 million. Asset Quality: Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, were $31.2 million, or 1.34% of total assets, at June 30, 2026, compared to $21.0 million, or 0.87% of total assets, at March 31, 2026. The increase in nonperforming loans primarily reflects the previously-mentioned out-of-market loans totaling $11.4 million that were placed on nonaccrual in the second quarter and for which a $2.9 million reserve was established. The loans were originated prior to 2024 by the Company's former government guaranteed lending team. The Company believes the credit issues affecting this borrower are unique and not systemic to the Company's overall loan portfolio. Nonperforming assets, which include other real estate owned, were $32.8 million, or 1.41% of total assets, at June 30, 2026, compared to $22.6 million, or 0.94% of total assets, at March 31, 2026. Provision for credit losses on loans of $3.5 million for the quarter was primarily due to $0.6 million of net loan charge-offs, an increase in specific loan reserves for out-of-market credits, and loan portfolio growth. Provision for credit losses for unfunded commitments of $0.6 million for the quarter was due to an increase in committed but unfunded lines of credit to commercial construction borrowers. For the prior quarter, a $0.6 million recovery of credit losses was primarily due to loan portfolio balance reductions and $0.3 million of net loan recoveries, including an $0.8 million recovery of a specialty finance loan charged off in 2022. Allowance for credit losses as a percentage of total loans held for investment was 1.19% at June 30, 2026, compared to 1.05% at March 31, 2026. Net loan charge-offs were $0.6 million in the second quarter of 2026, while net loan recoveries were $0.3 million in the first quarter of 2026. The net loan charge-offs (recoveries) to average loans outstanding ratio (quarter-to-date annualized) was 0.14% and (0.07%) for the second and first quarters, respectively. Income Statement: Net interest income was $16.5 million for the second quarter of 2026, compared to $16.9 million and $19.8 million for the first quarter of 2026 and the second quarter of 2025, respectively. Relative to the prior quarter, the decrease reflected primarily lower income from and average balances of loans held for investment, while relative to the year-ago period, the decrease reflected lower average balances of loans held for investment and loans held for sale. Interest expense declined by $0.2 million and $2.6 million in the second quarter of 2026, compared to the first quarter of 2026 and the second quarter of 2025, respectively, primarily driven by lower average balances of brokered deposits. Average balances of interest-earning assets were $2.28 billion for the second quarter of 2026, a decrease of $53.8 million from the prior quarter and $244.9 million from the second quarter of 2025. Average balances of loans held for investment were $1.83 billion for the second quarter of 2026, a decrease of $14.7 million from the prior quarter and $192.3 million from the second quarter of 2025. Average balances of loans held for sale were $0 for the second quarter of 2026, a decrease of $4.7 million and $24.2 million from the first quarter of 2026 and the second quarter of 2025, respectively, reflective of the Company's exit of its indirect fintech lending partnerships. Yields on loans held for investment were 5.54% for the second quarter of 2026 compared to 5.50% and 5.80% for the first quarter of 2026 and second quarter of 2025, respectively. Accretion of discounts on acquired loans had a three, four, and seven basis point positive effect on loans held for investment yields in the second quarter of 2026, first quarter of 2026, and second quarter of 2025, respectively. Average balances of interest-bearing liabilities were $1.65 billion for the second quarter of 2026, a decrease of $23.7 million from the prior quarter and $170.4 million from the second quarter of 2025. The decline in the second quarter of 2026 relative to the prior quarter was primarily due to lower average balances of brokered deposits ($23.0 million) and money market deposits ($18.4 million), partially offset by higher average balances of time deposits ($12.9 million). The decline in average balances of interest-bearing liabilities relative to the second quarter of 2025 was primarily due to reductions of brokered time deposits ($118.7 million), money market deposits ($28.5 million) and borrowings ($19.9 million of subordinated notes). Cost of funds was 2.41% for the second quarter of 2026, compared to 2.42% for the first quarter of 2026, and 2.63% for the second quarter of 2025, while cost of deposits was 2.25%, 2.27%, and 2.47%, for the same respective periods. These declines reflect lower average balances of higher-rate brokered deposits. Cost of deposits, excluding brokered deposits, was 1.97% for both the second and prior quarters, compared to 2.05% for the year-ago quarter period. NIM was 2.91% for the second quarter of 2026, compared to 2.90% in the prior quarter, and 3.15% for the second quarter of 2025. Improvements in the yield on loans held for investment and the cost of funds in the second quarter of 2026 relative to the first quarter of 2026 were partially offset by the absence of interest income from loans held for sale in the second quarter, following the exit of fintech lending. Provision for (recoveries of) credit losses on loans of $3.5 million, ($0.6) million, and ($0.7) million were reported in the second quarter of 2026, first quarter of 2026, and second quarter of 2025, respectively. The second quarter provision for credit losses on loans of $3.5 million was primarily due to additions to specific loan reserves, net loan charge-offs, and loan portfolio growth of $19.6 million during the second quarter of 2026. In the prior quarter, the $0.6 million recovery of credit losses on loans was primarily due to loan portfolio balance reductions of $31.8 million and net loan recoveries, including an $0.8 million recovery on a loan charged off in 2022. Provision for credit losses for unfunded commitments of $0.6 million was reported in the second quarter of 2026, while there were none reported in the first quarter of 2026 and second quarter of 2025. The second quarter provision for credit losses for unfunded commitments reflects an increase in committed but unfunded lines of credit to commercial construction borrowers. Noninterest income was $1.8 million for the second quarter of 2026, compared to $2.3 million for the first quarter of 2026, and $3.2 million for the second quarter of 2025. The decline in noninterest income compared to the first quarter of 2026 was primarily due to the previously noted $0.6 million loss upon the liquidation of an equity-method investment, while the decline in noninterest income compared to the second quarter of 2025 was primarily attributable to additional proceeds received in the quarter related to the 2024 sale of mortgage servicing rights. Noninterest expense was $15.9 million for the second quarter of 2026, a $2.8 million decrease from the prior quarter and a $6.1 million decrease from the year-ago period. The largest contributor to the decrease compared to the prior quarter was lower salaries and employee benefits expense, of which salaries, severance, and incentive-related expenses declined by $0.4 million, $1.2 million, and $0.4 million, respectively. The decrease in noninterest expense in the second quarter of 2026 relative to the year-ago period was primarily due to lower expenses for salaries and employee benefits ($4.0 million), FDIC insurance ($0.7 million), and technology ($0.6 million). The number of employees decreased from 333 in the second quarter of 2025 to 269 in the second quarter of 2026, or by 19%. The decline in FDIC insurance premiums primarily reflected lower assessment rates in 2026 relative to 2025. Balance Sheet: Loans held for investment were $1.85 billion at June 30, 2026, compared to $1.83 billion at March 31, 2026, and $1.98 billion at June 30, 2025. The $19.6 million increase compared to the prior quarter was primarily driven by growth in commercial and residential mortgage loans. During the second quarter, the Company partnered with a third-party residential mortgage originator, whereby the Company purchases adjustable-rate mortgage loans originated generally within its market area. This program will provide a primary mortgage product to the Company's consumer customer. Loans held for investment declined $125.1 million from the second quarter of 2025, primarily attributable to payoffs and paydowns of approximately $32.1 million of out-of-market loans. Loans held for sale at both June 30, 2026 and March 31, 2026 were $0, compared to $12.4 million as of June 30, 2025, reflecting the exit of fintech lending. Total deposits were $1.86 billion at June 30, 2026, a decrease of $30.7 million and $147.9 million from March 31, 2026 and June 30, 2025, respectively. Brokered deposit balances were $185.8 million, $207.2 million, and $296.1 million at the end of the second quarter of 2026, first quarter of 2026, and second quarter of 2025, respectively. Brokered deposits as a percentage of total deposits declined to 10.0% at June 30, 2026, from 10.9% at March 31, 2026 and 14.7% at June 30, 2025. Excluding brokered deposits, total deposits decreased $9.3 million from March 31, 2026 and $37.7 million from June 30, 2025. Noninterest-bearing deposits represented 21.3%, 20.7%, and 21.5% of total deposits at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 23.6%, 23.3%, and 25.3% of total deposits as of the same respective dates. Subordinated notes were $14.7 million at both June 30, 2026 and March 31, 2026 and $24.9 million at June 30, 2025. The decrease from the second quarter of 2025 reflects the Company's $10.0 million partial redemption of its $25.0 million of subordinated notes maturing October 15, 2029 (the "2029 Notes") in the third quarter of 2025. The effective interest rate on the 2029 Notes, inclusive of the amortization of the purchase accounting adjustment (premium), was 7.43%, 7.92%, and 7.48%, in the second quarter of 2026, first quarter of 2026, and second quarter of 2025, respectively. Subsequent to June 30, 2026, on July 15, 2026, the Company redeemed the remainder of the 2029 Notes. Upon the completion of this redemption, the Company had no outstanding subordinated notes. About Blue Ridge Bankshares, Inc.: Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking, and retail mortgage lending. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information. Reclassifications: Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported. Non-GAAP Financial Measures: The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company's financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company's business. In addition, management uses pre-tax, pre-provision income, excluding severance expense to supplement the evaluation of the Company's statement of operations. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release. Forward-Looking Statements: This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of management's beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words of similar meaning. The Company cautions that the forward-looking statements are based largely on management's expectations and are subject to a number of known and unknown risks and uncertainties that may change based on factors which are, in many instances, beyond its control. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation; reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners; the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs; the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure; the ability to maintain adequate liquidity by growing and retaining deposits and secondary funding sources, especially if the Company's or its industry's reputation becomes damaged; the emergence of digital assets and payment stablecoins, and evolving legislative or regulatory frameworks, which could alter deposit flows, competition, and credit intermediation and in turn, adversely affect the Company's funding, liquidity, or overall financial performance; the ability to maintain capital levels adequate to support the Company's business; the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability; the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward; the usage of advances and changes in technological and social media to develop timely and competitive products and services, and the acceptance of these products and services by new and existing customers; the willingness of users to substitute competitors' products and services for the Company's products and services; the impact of unanticipated outflows of deposits; potential exposure to fraud, negligence, computer theft, and cyber-crime; adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, supervisory and regulatory actions and costs, and related impacts on customer and client behavior; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope and effectiveness of the federal government, its agencies and services; the impact of changes in financial services policies, laws, and regulations, including laws, regulations, and policies concerning taxes, banking, securities, real estate and insurance, and the application thereof by bank regulatory bodies, and the three branches of the federal government; the effect of changes in accounting standards, policies, and practices as may be adopted from time to time; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory countermeasures, and the volatility and uncertainty arising therefrom; the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods and other catastrophic events; the Company's involvement in, and the outcome of, any litigation, legal proceedings or enforcement actions that may be instituted against the Company; and other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and in filings the Company makes from time to time with the U.S. Securities and Exchange Commission ("SEC"). The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company's results of operations or financial condition, or cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise. 1 Non-GAAP financial measure. Further information can be found at the end of this press release. View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-revised-2026-second-quarter-results-302847457.html

Shares of Blue Ridge Bankshares, Inc. BRBS have gained 0.6% since the company reported its earnings for the quarter ended June 30, 2026. This compares to the S&P 500 Index’s 1.5% rise over the same time frame. Over the past month, the stock lost 0.6% compared with the S&P 500’s 0.9% loss. Blue Ridge Bankshares reported a net loss of $0.2 million, or breakeven per diluted common share, for the second quarter of 2026, against net income of $1.3 million, or $0.01 per diluted common share, in the year-ago quarter. Net interest income declined 16.6% year over year to $16.5 million from $19.8 million, while total interest income fell 16.9% to $28.8 million. Noninterest income decreased 45.4% to $1.8 million, primarily reflecting lower other income and the absence of mortgage banking-related revenues. Total noninterest expense declined 27.8% year over year to $15.9 million, led by lower personnel, FDIC insurance and technology costs. BRBS does not report results by operating segment. Loans held for investment (LHFI) increased $19.6 million to $1.85 billion from $1.83 billion at the end of the first quarter, marking the first quarterly loan growth in 13 quarters and representing an annualized growth rate of 4%. Growth was primarily driven by commercial and residential mortgage lending. During the quarter, Blue Ridge Bankshares also began purchasing adjustable-rate residential mortgage loans originated by a third-party partner to expand its consumer mortgage offering. Total assets declined to $2.33 billion from $2.41 billion at the end of the first quarter, largely reflecting lower cash balances after the special dividend payment and reduced brokered deposits. Total deposits fell sequentially to $1.86 billion from $1.89 billion as brokered deposits continued to run off, although the proportion of noninterest-bearing demand deposits improved to 21.3% from 20.7% in the prior quarter. Net interest margin edged up to 2.91% from 2.90%, while the cost of deposits declined to 2.25% from 2.27%, reflecting an improved funding mix. Brokered deposits fell to $185.8 million from $296.1 million a year earlier, lowering their share of total deposits to 10% from 14.7%. Credit quality weakened during the quarter. Nonperforming loans increased to $31.2 million, or 1.34% of total assets, from $21 million, or 0.87% of total assets, as of March 31, 2026, primarily due to an $11.4 million out-of-market lending relationship that was moved to nonaccrual status. BRBS established a $1.5 million reserve against the exposure. The allowance for credit losses increased to 1.11% of LHFI from 1.05% in the prior quarter. Blue Ridge Bankshares, Inc. price-consensus-eps-surprise-chart | Blue Ridge Bankshares, Inc. Quote Interim president and chief executive officer Harry Golliday said that Blue Ridge Bankshares’ multiyear effort to de-risk the balance sheet and refocus on community banking customers has begun producing results. Golliday highlighted the return to loan growth, an improved deposit mix and ongoing expense reductions as drivers of stronger pre-tax, pre-provision earnings. Management also stated that economic conditions across the bank's markets remain supportive, with healthy business investment and consumer spending contributing to encouraging loan and deposit pipelines. Additionally, BRBS expects the benefits from recently implemented expense reduction initiatives to become more evident during the second half of 2026. Second-quarter results were significantly affected by higher credit costs. BRBS recorded an after-tax provision for credit losses of $2.1 million against an after-tax recovery of $0.5 million in both the preceding quarter and the year-ago period. The provision reflected net charge-offs, higher reserves for the nonperforming out-of-market relationship and growth in the loan portfolio. An additional provision was recorded for unfunded commercial construction commitments. Profitability also reflected lower severance expenses and continued cost reductions. Excluding severance costs, pre-tax, pre-provision income improved to $2.9 million from $1.4 million in the second quarter of 2025. Noninterest expense benefited from lower salaries and employee benefits, reduced FDIC insurance premiums, lower technology spending and a decline in headcount to 269 employees from 333 a year earlier. Noninterest income, however, was reduced by a loss on the liquidation of an equity-method investment and lower mortgage-related income. Blue Ridge Bankshares did not provide formal financial guidance for the remainder of 2026. Management stated that favorable loan and deposit pipelines, together with the expected realization of recent expense reduction measures during the second half of the year, should support future operating performance. During the quarter, the company continued restructuring its balance sheet by reducing brokered deposits and strengthening funding quality. Subsequent to June 30, 2026, Blue Ridge Bankshares redeemed the remaining balance of its 2029 subordinated notes, leaving the company with no outstanding subordinated debt. BRBS declared and paid a special cash dividend of $0.60 per common share during the quarter, totaling approximately $54.1 million. During the quarter, the company also launched a partnership with a third-party residential mortgage originator to expand its consumer mortgage offerings. No acquisitions or divestitures were announced during the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blue Ridge Bankshares, Inc. (BRBS): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Loan Growth Returns, Improved Deposit Mix, and Continued Reduction in Operating Expenses RICHMOND, Va., July 28, 2026 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced financial results for the quarter ended June 30, 2026. For the quarter ended June 30, 2026, the Company reported a net loss of $0.2 million, or $0.00 per diluted common share, compared to net income of $0.8 million, or $0.01 per diluted common share, for the quarter ended March 31, 2026, and net income of $1.3 million, or $0.01 per diluted common share, for the quarter ended June 30, 2025. Net loss for the second quarter of 2026 included an after-tax $2.1 million provision for credit losses, compared to an after-tax benefit for recovery of credit losses of $0.5 million for both the first quarter of 2026 and second quarter of 2025. Loans from a single out-of-market relationship originated prior to 2024 were placed on nonaccrual at June 30, 2026, and a reserve was established for the loan in the amount of $1.5 million ($1.2 million after tax). Net loss for the second quarter of 2026 also included $0.3 million of after-tax expenses related to severance, compared to $1.3 million and $0.2 million for the first quarter of 2026 and second quarter of 2025, respectively. Severance expenses include amounts associated with previously-announced executive officer transitions. Excluding severance expense, pre-tax, pre-provision income for the second quarter of 2026 improved to $2.9 million1 compared to $2.2 million1 and $1.4 million1 for the first quarter of 2026 and second quarter of 2025, respectively. For the first half of 2026, the Company reported net income of $0.6 million, or $0.01 per diluted common share, compared to net income of $0.9 million, or $0.01 per diluted common share for the first half of 2025. Net income for the 2026 period included after-tax severance expenses of $1.7 million compared to $0.8 million for the first half of 2025. "After a couple years of de-risking the balance sheet and returning our focus 100% to our community banking customers and prospects, I am pleased to report a 4% annualized loan growth rate for the second quarter. This loan growth, combined with modestly improved margins from a more favorable deposit mix and continued discipline in right-sizing our expense base, resulted in improved earnings this quarter on a pre-tax, pre-provision basis," commented Harry Golliday, interim president and chief executive officer. "We continue to have healthy economic conditions in our local markets driving business owners to invest and consumers to spend, and, as a result, our loan and deposit pipelines are encouraging. In addition, results of this quarters' expense reduction actions will be realized in the second half of 2026." Q2 2026 Highlights(Comparisons for Second Quarter 2026 are relative to First Quarter 2026 unless otherwise noted.) Net Income: Net loss for the quarter was $0.2 million, or $0.00 per diluted common share, compared to net income of $0.8 million, or $0.01 per diluted common share, for the prior quarter. After-tax severance expense and provision for (recovery of) credit losses were $0.3 million and $2.1 million, respectively, for the quarter, compared to $1.3 million and ($0.5) million, respectively, for the prior quarter. Excluding severance expense, pre-tax, pre-provision income was $2.9 million1 and $2.2 million1 for the sequential quarters, a 30% improvement. Net Interest Income / Net Interest Margin: Net interest income totaled $16.5 million and $16.9 million for the second and first quarters, respectively. Interest income decreased by $0.5 million in the quarter, primarily due to the decline in average balances of loans held for investment, loans held for sale, and interest-earning deposits in other banks, which collectively declined $45.7 million from the prior quarter. Yields on loans held for investment were 5.54% and 5.50% for the second and first quarters, respectively. Interest expense declined by $0.2 million for the quarter, largely driven by lower average balances of brokered deposits, which declined $23.0 million from the prior quarter. Cost of deposits declined two basis points to 2.25% for the quarter, compared to 2.27% for the prior quarter, while net interest margin ("NIM") was 2.91% and 2.90% for the respective periods. Capital: On March 30, 2026, the Company announced a special cash dividend of $0.60 per share of the Company's common stock totaling approximately $54.1 million. The dividend was paid on April 27, 2026, to shareholders of record as of the close of business on April 13, 2026. The ratio of tangible common stockholders' equity to tangible total assets was 11.8%1 at the second quarter end compared to 11.4%1 at the prior quarter end, while tangible book value per common share was $3.101 compared to $3.111 as of the respective dates. At June 30, 2026, the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 11.27%, 15.16%, 15.16%, and 16.40%, respectively, compared to 11.01%, 15.33%, 15.33%, and 16.47% respectively, at the prior quarter end. Noninterest Income / Noninterest Expense: Noninterest income for the quarter was $1.8 million compared to $2.3 million for the prior quarter. Other noninterest income included a $0.6 million loss recognized upon the liquidation of an equity method investment made in 2022. The loss reflects the difference between the investment's carrying value and the final distribution received. Over the period it was held, the investment generated cumulative pre-tax income of approximately $1.9 million. Noninterest expense for the quarter was $15.9 million compared to $18.7 million for the prior quarter, a decrease of $2.8 million. Salaries and employee benefits expense declined $2.0 million, of which $1.2 million was lower severance expenses and $0.4 million was lower incentive-related expenses. Advertising and marketing expense was $0.3 million lower than the prior quarter due to the timing of marketing campaigns. Headcount as of June 30, 2026 was 269, compared to 281 at March 31, 2026, and 333 at June 30, 2025. Income Tax: Income tax expense for the second and first quarters was $0 and $0.3 million, respectively, with effective income tax rates for the respective periods of 11.4% and 24.9%. The decrease in the effective income tax rate was primarily the result of the Company's marginal pre-tax loss in the second quarter. Balance Sheet: Total assets decreased to $2.33 billion at quarter end from $2.41 billion at the prior quarter end, a reduction of $85.3 million. The decrease was primarily driven by lower cash and cash equivalents following the payment of the previously-announced special cash dividend and the reduction of brokered time deposits. Loans held for investment grew $19.6 million, or a 4% annualized rate of growth, the first growth in 13 quarters. Total deposits, when excluding brokered deposits, decreased $9.3 million in the second quarter compared to growth of $13.4 million in the prior quarter. Brokered deposits of $21.4 million were paid off upon maturity in the quarter. The ratio of noninterest-bearing demand deposits to total deposits was 21.3% and 20.7% as of June 30, 2026 and March 31, 2026, respectively. Total stockholders' equity was $276.5 million at quarter end compared to $277.0 million at the prior quarter end, a decrease of $0.5 million. Asset Quality: Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, were $31.2 million, or 1.34% of total assets, at June 30, 2026, compared to $21.0 million, or 0.87% of total assets, at March 31, 2026. The increase in nonperforming loans primarily reflects the previously-mentioned out-of-market loans totaling $11.4 million that were placed on nonaccrual in the second quarter and for which a $1.5 million reserve was established. The loans were originated prior to 2024 by the Company's former government guaranteed lending team. The Company believes the credit issues affecting this borrower are unique and not systemic to the Company's overall loan portfolio. Nonperforming assets, which include other real estate owned, were $32.8 million, or 1.41% of total assets, at June 30, 2026, compared to $22.6 million, or 0.94% of total assets, at March 31, 2026. Provision for credit losses on loans of $2.1 million for the quarter was primarily due to $0.6 million of net loan charge-offs, an increase in specific loan reserves for out-of-market credits, and loan portfolio growth. Provision for credit losses for unfunded commitments of $0.6 million for the quarter was due to an increase in committed but unfunded lines of credit to commercial construction borrowers. For the prior quarter, a $0.6 million recovery of credit losses was primarily due to loan portfolio balance reductions and $0.3 million of net loan recoveries, including an $0.8 million recovery of a specialty finance loan charged off in 2022. Allowance for credit losses as a percentage of total loans held for investment was 1.11% at June 30, 2026, compared to 1.05% at March 31, 2026. Net loan charge-offs were $0.6 million in the second quarter of 2026, while net loan recoveries were $0.3 million in the first quarter of 2026. The net loan charge-offs (recoveries) to average loans outstanding ratio (quarter-to-date annualized) was 0.14% and (0.07%) for the second and first quarters, respectively. Income Statement: Net interest income was $16.5 million for the second quarter of 2026, compared to $16.9 million and $19.8 million for the first quarter of 2026 and the second quarter of 2025, respectively. Relative to the prior quarter, the decrease reflected primarily lower income from and average balances of loans held for investment, while relative to the year-ago period, the decrease reflected lower average balances of loans held for investment and loans held for sale. Interest expense declined by $0.2 million and $2.6 million in the second quarter of 2026, compared to the first quarter of 2026 and the second quarter of 2025, respectively, primarily driven by lower average balances of brokered deposits. Average balances of interest-earning assets were $2.28 billion for the second quarter of 2026, a decrease of $53.8 million from the prior quarter and $244.9 million from the second quarter of 2025. Average balances of loans held for investment were $1.83 billion for the second quarter of 2026, a decrease of $14.7 million from the prior quarter and $192.3 million from the second quarter of 2025. Average balances of loans held for sale were $0 for the second quarter of 2026, a decrease of $4.7 million and $24.2 million from the first quarter of 2026 and the second quarter of 2025, respectively, reflective of the Company's exit of its indirect fintech lending partnerships. Yields on loans held for investment were 5.54% for the second quarter of 2026 compared to 5.50% and 5.80% for the first quarter of 2026 and second quarter of 2025, respectively. Accretion of discounts on acquired loans had a three, four, and seven basis point positive effect on loans held for investment yields in the second quarter of 2026, first quarter of 2026, and second quarter of 2025, respectively. Average balances of interest-bearing liabilities were $1.65 billion for the second quarter of 2026, a decrease of $23.7 million from the prior quarter and $170.4 million from the second quarter of 2025. The decline in the second quarter of 2026 relative to the prior quarter was primarily due to lower average balances of brokered deposits ($23.0 million) and money market deposits ($18.4 million), partially offset by higher average balances of time deposits ($12.9 million). The decline in average balances of interest-bearing liabilities relative to the second quarter of 2025 was primarily due to reductions of brokered time deposits ($118.7 million), money market deposits ($28.5 million) and borrowings ($19.9 million of subordinated notes). Cost of funds was 2.41% for the second quarter of 2026, compared to 2.42% for the first quarter of 2026, and 2.63% for the second quarter of 2025, while cost of deposits was 2.25%, 2.27%, and 2.47%, for the same respective periods. These declines reflect lower average balances of higher-rate brokered deposits. Cost of deposits, excluding brokered deposits, was 1.97% for both the second and prior quarters, compared to 2.05% for the year-ago quarter period. NIM was 2.91% for the second quarter of 2026, compared to 2.90% in the prior quarter, and 3.15% for the second quarter of 2025. Improvements in the yield on loans held for investment and the cost of funds in the second quarter of 2026 relative to the first quarter of 2026 were partially offset by the absence of interest income from loans held for sale in the second quarter, following the exit of fintech lending. Provision for (recoveries of) credit losses on loans of $2.1 million, ($0.6) million, and ($0.7) million were reported in the second quarter of 2026, first quarter of 2026, and second quarter of 2025, respectively. The second quarter provision for credit losses on loans of $2.1 million was primarily due to additions to specific loan reserves, net loan charge-offs, and loan portfolio growth of $19.6 million during the second quarter of 2026. In the prior quarter, the $0.6 million recovery of credit losses on loans was primarily due to loan portfolio balance reductions of $31.8 million and net loan recoveries, including an $0.8 million recovery on a loan charged off in 2022. Provision for credit losses for unfunded commitments of $0.6 million was reported in the second quarter of 2026, while there were none reported in the first quarter of 2026 and second quarter of 2025. The second quarter provision for credit losses for unfunded commitments reflects an increase in committed but unfunded lines of credit to commercial construction borrowers. Noninterest income was $1.8 million for the second quarter of 2026, compared to $2.3 million for the first quarter of 2026, and $3.2 million for the second quarter of 2025. The decline in noninterest income compared to the first quarter of 2026 was primarily due to the previously noted $0.6 million loss upon the liquidation of an equity-method investment, while the decline in noninterest income compared to the second quarter of 2025 was primarily attributable to additional proceeds received in the quarter related to the 2024 sale of mortgage servicing rights. Noninterest expense was $15.9 million for the second quarter of 2026, a $2.8 million decrease from the prior quarter and a $6.1 million decrease from the year-ago period. The largest contributor to the decrease compared to the prior quarter was lower salaries and employee benefits expense, of which salaries, severance, and incentive-related expenses declined by $0.4 million, $1.2 million, and $0.4 million, respectively. The decrease in noninterest expense in the second quarter of 2026 relative to the year-ago period was primarily due to lower expenses for salaries and employee benefits ($4.0 million), FDIC insurance ($0.7 million), and technology ($0.6 million). The number of employees decreased from 333 in the second quarter of 2025 to 269 in the second quarter of 2026, or by 19%. The decline in FDIC insurance premiums primarily reflected lower assessment rates in 2026 relative to 2025. Balance Sheet: Loans held for investment were $1.85 billion at June 30, 2026, compared to $1.83 billion at March 31, 2026, and $1.98 billion at June 30, 2025. The $19.6 million increase compared to the prior quarter was primarily driven by growth in commercial and residential mortgage loans. During the second quarter, the Company partnered with a third-party residential mortgage originator, whereby the Company purchases adjustable-rate mortgage loans originated generally within its market area. This program will provide a primary mortgage product to the Company's consumer customer. Loans held for investment declined $125.1 million from the second quarter of 2025, primarily attributable to payoffs and paydowns of approximately $32.1 million of out-of-market loans. Loans held for sale at both June 30, 2026 and March 31, 2026 were $0, compared to $12.4 million as of June 30, 2025, reflecting the exit of fintech lending. Total deposits were $1.86 billion at June 30, 2026, a decrease of $30.7 million and $147.9 million from March 31, 2026 and June 30, 2025, respectively. Brokered deposit balances were $185.8 million, $207.2 million, and $296.1 million at the end of the second quarter of 2026, first quarter of 2026, and second quarter of 2025, respectively. Brokered deposits as a percentage of total deposits declined to 10.0% at June 30, 2026, from 10.9% at March 31, 2026 and 14.7% at June 30, 2025. Excluding brokered deposits, total deposits decreased $9.3 million from March 31, 2026 and $37.7 million from June 30, 2025. Noninterest-bearing deposits represented 21.3%, 20.7%, and 21.5% of total deposits at June 30, 2026, March 31, 2026, and June 30, 2025, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 23.6%, 23.3%, and 25.3% of total deposits as of the same respective dates. Subordinated notes were $14.7 million at both June 30, 2026 and March 31, 2026 and $24.9 million at June 30, 2025. The decrease from the second quarter of 2025 reflects the Company's $10.0 million partial redemption of its $25.0 million of subordinated notes maturing October 15, 2029 (the "2029 Notes") in the third quarter of 2025. The effective interest rate on the 2029 Notes, inclusive of the amortization of the purchase accounting adjustment (premium), was 7.43%, 7.92%, and 7.86%, in the second quarter of 2026, first quarter of 2026, and second quarter of 2025, respectively. Subsequent to June 30, 2026, on July 15, 2026, the Company redeemed the remainder of the 2029 Notes. Upon the completion of this redemption, the Company had no outstanding subordinated notes. About Blue Ridge Bankshares, Inc.: Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking, and retail mortgage lending. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information. Reclassifications: Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported. Non-GAAP Financial Measures: The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company's financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company's business. In addition, management uses pre-tax, pre-provision income, excluding severance expense to supplement the evaluation of the Company's statement of operations. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release. Forward-Looking Statements: This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of management's beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words of similar meaning. The Company cautions that the forward-looking statements are based largely on management's expectations and are subject to a number of known and unknown risks and uncertainties that may change based on factors which are, in many instances, beyond its control. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation; reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners; the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs; the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure; the ability to maintain adequate liquidity by growing and retaining deposits and secondary funding sources, especially if the Company's or its industry's reputation becomes damaged; the emergence of digital assets and payment stablecoins, and evolving legislative or regulatory frameworks, which could alter deposit flows, competition, and credit intermediation and in turn, adversely affect the Company's funding, liquidity, or overall financial performance; the ability to maintain capital levels adequate to support the Company's business; the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability; the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward; the usage of advances and changes in technological and social media to develop timely and competitive products and services, and the acceptance of these products and services by new and existing customers; the willingness of users to substitute competitors' products and services for the Company's products and services; the impact of unanticipated outflows of deposits; potential exposure to fraud, negligence, computer theft, and cyber-crime; adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, supervisory and regulatory actions and costs, and related impacts on customer and client behavior; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope and effectiveness of the federal government, its agencies and services; the impact of changes in financial services policies, laws, and regulations, including laws, regulations, and policies concerning taxes, banking, securities, real estate and insurance, and the application thereof by bank regulatory bodies, and the three branches of the federal government; the effect of changes in accounting standards, policies, and practices as may be adopted from time to time; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory countermeasures, and the volatility and uncertainty arising therefrom; the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods and other catastrophic events; the Company's involvement in, and the outcome of, any litigation, legal proceedings or enforcement actions that may be instituted against the Company; and other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and in filings the Company makes from time to time with the U.S. Securities and Exchange Commission ("SEC"). The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company's results of operations or financial condition, or cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise. 1 Non-GAAP financial measure. Further information can be found at the end of this press release. View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-2026-second-quarter-results-302836934.html

Shares of Blue Ridge Bankshares, Inc. BRBS have gained 2.6% since the company reported its earnings for the quarter ended March 31, 2026, modestly outperforming the S&P 500 Index’s 0.6% rise over the same period. However, the stock has lagged more broadly over the past month, declining 10.4% against a 13.8% gain for the benchmark index. Blue Ridge Bankshares reported net income of $0.8 million, or $0.01 per diluted share, for the first quarter of 2026, against a net loss of $0.4 million, or $(0.01) per share, in the year-ago period, indicating a return to profitability on a year-over-year basis. Revenue components showed mixed trends. Net interest income declined 10.9% to $16.9 million from $18.9 million a year earlier, while non-interest income fell 23.6% to $2.3 million from $3.1 million. The improvement in bottom-line performance came despite lower revenues, supported by significantly reduced non-interest expenses, which dropped 18.3% to $18.7 million from $22.9 million in the prior-year quarter. The first quarter of 2026 included $1.3 million in after-tax expenses tied to executive transitions; excluding these, adjusted net income would have been $2.1 million, or $0.02 per share. BRBS does not report segmental results, but its core banking operations reflect shrinking loan balances and reduced reliance on non-strategic business lines. Net interest income declined both sequentially and year over year, primarily due to lower average balances of loans held for investment and sale, as well as reduced yields on loans. Net interest margin stood at 2.90%, unchanged from the year-ago quarter but down from the prior quarter’s 3.04%, reflecting pressure from declining loan yields despite lower funding costs. Blue Ridge Bankshares benefited from a reduction in the cost of deposits, which fell to 2.27% from 2.62% a year earlier, driven by a shift away from higher-cost brokered deposits. Blue Ridge Bankshares, Inc. price-consensus-eps-surprise-chart | Blue Ridge Bankshares, Inc. Quote Total assets declined modestly to $2.41 billion as of March 31, 2026, from $2.69 billion a year earlier, reflecting reductions in both loans held for investment and loans held for sale as the company continued to exit non-core lending activities. Loans held for investment fell to $1.83 billion from $1.87 billion sequentially and from $2.06 billion a year earlier, reflecting paydowns of out-of-market loans and the company’s exit from indirect fintech lending. Deposits also fell year over year, though core deposits excluding brokered balances showed some growth sequentially. While total deposits declined modestly to $1.89 billion, core deposits excluding brokered balances increased $13.4 million during the quarter. Brokered deposits fell $31.5 million, continuing a deliberate strategy to reduce reliance on higher-cost funding sources. Asset quality improved during the quarter, with nonperforming loans declining to $21 million (0.87% of total assets as of March 31, 2026) from $23.8 million (0.98%) in the prior quarter. The allowance for credit losses remained stable at around 1.05% of loans compared with 1.04% in the prior quarter, and BRBS recorded a $0.6 million recovery of credit losses, supported by portfolio reductions and recoveries on previously charged-off loans. Non-interest expense declined significantly compared with the year-ago period, reflecting Blue Ridge Bankshares’ ongoing cost-cutting initiatives and transition away from regulatory constraints. Headcount was reduced by 70 employees, or about 20%, since March 2025, contributing to lower salary and benefits costs over time. However, expenses increased sequentially due to executive transition costs and incentive-related compensation, which weighed on quarterly profitability. Blue Ridge Bankshares’ Management Commentary and Strategic Direction Management highlighted that BRBS has now achieved four consecutive profitable quarters as it continues its transition back to a community banking model. Leadership emphasized that near-term earnings have been impacted by separation, severance and restructuring costs, as well as the deliberate reduction of non-strategic loans. These actions are expected to strengthen the bank’s core earnings power over time. Blue Ridge Bankshares also noted improved regulatory standing following the termination of a consent order in late 2025, which has allowed greater flexibility in capital management and a renewed focus on growth initiatives. Management indicated that loan and deposit pipelines are improving, suggesting potential stabilization in core business activity. Capital ratios declined during the quarter, primarily due to the declaration of a $0.60 per share special cash dividend totaling approximately $54.1 million. Tangible common equity to tangible assets fell to 11.4% from 13.2% in the prior quarter, reflecting the capital return to shareholders. Despite this decline, capital levels remain above regulatory requirements. During the quarter, Blue Ridge Bankshares completed its exit from indirect fintech lending activities, marking a significant step in its strategic repositioning toward traditional community banking. Additionally, BRBS amended outstanding warrants to account for special dividend payments, reversing a previously accrued dividend liability of $6.1 million. These actions underscore management’s focus on simplifying operations and aligning the business with its long-term strategic goals. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blue Ridge Bankshares, Inc. (BRBS): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Special Cash Dividend of $0.60 per Common Share Declared in the Quarter RICHMOND, Va., April 23, 2026 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced financial results for the quarter ended March 31, 2026. For the quarter ended March 31, 2026, the Company reported net income of $0.8 million, or $0.01 per diluted common share, compared to net income of $4.2 million, or $0.04 per diluted common share, for the quarter ended December 31, 2025, and a net loss of $0.4 million, or ($0.01) per diluted common share, for the quarter ended March 31, 2025. Net income for the first quarter of 2026 included after-tax expenses of $1.3 million related to the transition of executive officers. Net income for the first quarter of 2026 when excluding these transition expenses was $2.1 million, or $0.02 per diluted common share. Additionally, net income for the first quarter of 2026 and fourth quarter of 2025 included after-tax benefit for recovery of credit losses of $0.5 million and $1.2 million, respectively. "On behalf of our 281 Blue Ridge Bank employees, I am pleased to report a fourth consecutive profitable quarter on the strategic journey back to our community banking roots," commented Harry Golliday, interim president and chief executive officer. "As in the prior quarter, our results reflect the impact of separation, severance, and incentive-related expenses, as well as the ongoing reduction of non-strategic loans outside of our local banking footprint—actions that weighed on near-term results but enhance the core earnings power of the community banking franchise. "We continue to execute on noninterest expense reduction initiatives to more closely align these expenses with our community banking model. Headcount, a major driver of our noninterest expense, has been reduced by 70, or 20%, since the end of the first quarter of 2025. Results of additional initiatives will be realized in the second half of 2026. "This quarter was also our first full quarter of operations after release last November from the regulatory consent order. The improved regulatory standing and lower capital requirements provided flexibility for another special dividend declared on March 30. In addition, we have been able to turn even greater attention to sound growth initiatives and are pleased to see increasing loan and deposit pipelines." Q1 2026 Highlights (Comparisons for First Quarter 2026 are relative to Fourth Quarter 2025 unless otherwise noted.) Net Income: Net income for the quarter was $0.8 million, or $0.01 per diluted common share, compared to net income of $4.2 million, or $0.04 per diluted common share, for the prior quarter. Income before income taxes of $1.1 million for the quarter included a $0.6 million pre-tax recovery of credit losses, $1.6 million in pre-tax executive officer transition expenses, and $1.0 million of pre-tax incentive-related expenses, while the prior quarter income before income taxes of $5.4 million included a $1.5 million pre-tax recovery of credit losses, $0.3 million in pre-tax incentive-related expenses, and $0.4 million of pre-tax income on the 2024 sale of mortgage servicing rights ("MSRs"). Incentive-related expenses in the fourth quarter of 2025 reflect reductions in expense for certain performance-based incentive plans. Net Interest Income / Net Interest Margin: Net interest income totaled $16.9 million and $18.1 million for the current and prior quarters, respectively. Total interest income decreased by $2.1 million in the quarter, primarily due to the decline in average balances of loans held for investment and loans held for sale, which collectively declined $50.5 million on a sequential quarter basis. Interest expense declined by $0.9 million for the quarter, largely driven by lower average balances of brokered deposits, which declined $37.0 million on a sequential quarter basis. Cost of deposits declined 13 basis points to 2.27% for the quarter, compared to 2.40% in the prior quarter, while net interest margin ("NIM") was 2.90% and 3.04% for the same respective periods. Capital: On March 30, 2026, the Company announced a special cash dividend of $0.60 per share of its common stock, totaling approximately $54.1 million, payable on April 27, 2026 to shareholders of record as of the close of business on April 13, 2026. Also on March 30, 2026, the Company announced an amendment and restatement of warrants issued in the Company's private placements of securities that closed during the second quarter of 2024 (the "Warrant Amendment"). Pursuant to the Warrant Amendment, at any time while the warrant is outstanding, the per share exercise price of each warrant is reduced by the per share dividend amount in lieu of cash distributions to warrant holders, including the special cash dividends paid in November 2025 and declared in March 2026. The Company had previously accrued $6.1 million for the fourth quarter 2025 dividend to be paid if and when the warrants are exercised. As a result of the Warrant Amendment, the $6.1 million accrual was reversed in the first quarter. The ratio of tangible common stockholders' equity to tangible total assets was 11.4%1, compared to 13.2%1 at the prior quarter end, while tangible book value per common share ("TBV") was $3.111 compared to $3.651 as of the same respective dates. The decline in both metrics was primarily driven by the special cash dividend declared in the quarter, partially offset by the aforementioned reversal of the fourth quarter 2025 dividend accrued for warrants. At March 31, 2026, the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 11.01%, 15.33%, 15.33%, and 16.47%, respectively, compared to 13.04%, 18.18%, 18.18%, and 19.16%, respectively, at the prior quarter end. Capital ratios for the Company at March 31, 2026 for tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 12.13%, 16.87%, 16.87%, and 18.67%, respectively, compared to 13.81%, 19.22%, 19.22%, and 20.69%, respectively, at the prior quarter end. The decline in these ratios for both the Bank and the Company was primarily a result of the aforementioned special cash dividend in the quarter. Noninterest Income / Noninterest Expense: Noninterest income for the first quarter was $2.3 million compared to $2.7 million for the fourth quarter of 2025. Noninterest income in the prior quarter included $0.4 million of reserves released due to the receipt of additional sales proceeds that were contractually held back from the 2024 sales of MSRs and swap transaction fees of $0.3 million, partially offset by a $0.2 million impairment on a fintech-related investment. No such transactions occurred in the current quarter. Noninterest expense for the first quarter was $18.7 million compared to $16.9 million for the prior quarter, an increase of $1.8 million. The increase was primarily due to higher salaries and employee benefits expense, driven primarily by executive officer transition ($1.6 million) and incentive-related ($0.7 million) expenses, partially offset by lower salaries and health insurance costs ($0.5 million). Headcount as of March 31, 2026, was 281, compared to 302 at December 31, 2025, and 351 at March 31, 2025. Income Tax: Income tax expense for the current and prior quarter was $0.3 million and $1.1 million, respectively, with an effective income tax rate for the same respective periods of 24.9% and 21.2%. The higher effective income tax rate in the quarter was primarily driven by limitations on the tax deductibility of certain costs. Balance Sheet: Total assets decreased to $2.41 billion at quarter end from $2.43 billion at the prior quarter end, a reduction of $18.5 million, primarily driven by declines in loans held for investment of $31.8 million and loans held for sale of $14.8 million. Included in the reduction of loans held for investment in the quarter were payoffs and paydowns of approximately $24.1 million of out-of-market loans. The decline in loans held for sale reflects the Company's complete exit from its indirect fintech lending activities in the quarter. Total deposits, when excluding brokered deposits, increased $13.4 million in the first quarter of 2026. Brokered deposit balances declined $31.5 million in the current quarter, as existing brokered time deposits were paid off upon maturity. The ratio of noninterest-bearing demand deposits to total deposits was 20.7% and 20.9% as of March 31, 2026 and December 31, 2025, respectively. Total stockholders' equity decreased to $277.0 million at quarter end from $323.7 million at the prior quarter end, a decline of $46.7 million. The majority of this decline was attributable to the special cash dividend ($54.1 million) declared on March 30, 2026, partially offset by the $6.1 million reversal of the dividend accrued in the fourth quarter of 2025 for payment to warrant holders if and when such warrants are exercised. Asset Quality: Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, improved to $21.0 million, or 0.87% of total assets, at March 31, 2026, compared to $23.8 million, or 0.98% of total assets, at the prior quarter end. The decline in nonperforming loans primarily reflects nonperforming loan paydowns in the quarter. Nonperforming assets, which include other real estate owned, were $22.6 million, or 0.94% of total assets, at March 31, 2026 compared to $25.4 million, or 1.05% of total assets, at the prior quarter end. Recovery of credit losses of $0.6 million for the quarter was primarily due to loan portfolio balance reductions of approximately $31.8 million and $0.3 million of net loan recoveries, including an $0.8 million recovery of a specialty finance loan charged off in 2022. For the prior quarter, $1.5 million recovery of credit losses was primarily due to loan portfolio balance reductions of approximately $47.0 million, a $0.9 million recovery of a specialty finance loan charged off in 2022, and reductions to reserves on individually evaluated loans. The allowance for credit losses as a percentage of total loans held for investment was 1.05% at March 31, 2026 compared to 1.04% at the prior quarter end. Net loan recoveries were $0.3 million in both the current and prior quarters. The net loan recoveries to average loans outstanding ratio (quarter-to-date annualized) was 0.07% for both the current and prior quarters. Income Statement: Net interest income was $16.9 million for the first quarter of 2026, compared to $18.1 million and $19.0 million for the fourth and first quarters of 2025, respectively. Relative to the prior quarter, the decrease reflected primarily lower yields on loans, including lower accretion of discounts on acquired loans, and lower average balances of loans held for investment, while relative to the year-ago period, the decrease reflected lower average balances of loans held for investment and loans held for sale. Interest expense declined by $0.9 million and $3.9 million in the first quarter of 2026, compared to the fourth quarter of 2025 and the first quarter of 2025, respectively, primarily driven by lower average balances of brokered deposits. Average balances of interest-earning assets were $2.33 billion for the three months ended March 31, 2026, a decrease of $48.9 million from the prior quarter and $286.1 million from the first quarter of 2025. Average balances of loans held for investments were $1.85 billion for the first quarter of 2026, a decrease of $43.4 million from the prior quarter and $243.0 million from the first quarter of 2025. Average balances of loans held for sale were $4.7 million for the first quarter of 2026, a decrease of $7.1 million from the fourth quarter of 2025 and $24.8 million from the first quarter of 2025, respectively, reflective of the the Company's winddown and exit of its indirect fintech lending partnerships. The yield on loans held for investment was 5.50% for the first quarter of 2026 compared to 5.66% and 5.70% for the fourth and first quarters of 2025, respectively. The decline in the first quarter of 2026 relative to the prior quarter and the same quarter of 2025 was primarily due to a decline in higher yielding out-of-market loans and lower accretion of discounts on acquired loans. Accretion of discounts on acquired loans had a 4, 10, and 7 basis point positive effect on yield on loans held for investment for the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025, respectively. Average balances of interest-bearing liabilities were $1.67 billion for the three months ended March 31, 2026, a decrease of $24.0 million relative to the prior quarter and $226.2 million from the first quarter of 2025. The decline in the first quarter of 2026 relative to the prior quarter was primarily attributable to lower rates paid on deposit balances and lower average balances of brokered deposits of approximately $37.0 million. The decline in average balances of interest-bearing liabilities relative to the first quarter of 2025 was primarily due to reductions of brokered time deposits ($138.8 million) and borrowings ($25.1 million of subordinated debt). Cost of funds was 2.42% for the first quarter of 2026, compared to 2.54% for the fourth quarter of 2025, and 2.78% for the first quarter of 2025, while cost of deposits was 2.27%, 2.40%, and 2.62%, for the same respective periods. These declines reflect lower average balances of higher-rate brokered deposits. Cost of deposits, excluding brokered deposits, was 1.97% for the quarter, compared to 2.04% for the prior quarter, and 2.19% for the year-ago quarter period. NIM was 2.90% for the first quarter of 2026, compared to 3.04% in the prior quarter, and 2.90% in the first quarter of 2025. The decrease in NIM in the quarter relative to the prior quarter was driven by lower yields on loans held for investment, primarily due to a decline in higher yielding out-of-market loans and lower accretion of discounts on acquired loans, as well as decreases in average balances of higher yielding loans held for sale, partially offset by lower cost of funds, driven by lower average balances of higher-rate brokered deposits. Compared to the prior quarter, the decline in accretion of discounts reduced NIM by approximately 5 basis points. Recoveries of credit losses of $0.6 million, $1.5 million, and $0 were reported in the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025, respectively. The recovery of credit losses of $0.6 million for the first quarter of 2026 was primarily due to loan portfolio balance reductions of $31.8 million and $0.3 million of net loan recoveries, including an $0.8 million recovery on a loan charged off in 2022. In the prior quarter, the $1.5 million recovery of credit losses was primarily due to loan portfolio balance reductions of approximately $47.0 million, a $0.9 million recovery on a loan charged off in 2022, and reductions to reserves on individually evaluated loans. Noninterest income was $2.3 million in the first quarter of 2026, compared to $2.7 million in the fourth quarter of 2025, and $3.1 million in the first quarter of 2025. Noninterest income in the first quarter of 2026 and fourth quarter of 2025 included $0 and $0.4 million, respectively, of released reserves associated with the 2024 sales of MSRs. In the first quarter of 2025, the Company reported a loss on the sale of the Company's mortgage division of $0.2 million, and as a result, residential mortgage banking income was $0 for the first quarter of 2026 and fourth quarter of 2025 and $0.7 million in the first quarter of 2025. Swap transaction fee income was $0, $0.3 million, and $0 for the same respective periods. Noninterest expense was $18.7 million for the first quarter of 2026, a $1.8 million increase from the prior quarter and a $4.2 million decrease from the year-ago period. The largest contributor to the increase in the current quarter was higher salaries and employee benefits expenses of $1.9 million, primarily due to $2.3 million of executive officer transition and incentive-related expenses, partially offset by lower salary expense and health insurance costs. The decrease in noninterest expense in the first quarter of 2026 relative to the same period of 2025 was primarily due to lower expenses as a result of the termination of the consent order with the Bank's primary regulator, under which the Bank was operating until it was terminated in the fourth quarter of 2025, and the transition to a more traditional community banking model. Lower expenses resulting from the consent order termination were primarily in salaries and benefits, as the number of full-time employees declined by 70 full-time employees, or over 20%, since March 31, 2025, and also resulted in lower technology costs, audit fees, and FDIC insurance premiums. Balance Sheet: Loans held for investment were $1.83 billion at March 31, 2026, compared to $1.87 billion at December 31, 2025, and $2.06 billion at March 31, 2025. The decline compared to the prior quarter was primarily driven by declines in loans held for investment of $31.8 million and loans held for sale of $14.8 million. Included in the reduction of loans held for investment were payoffs and paydowns of approximately $24.1 million of out-of-market loans. Loans held for investment declined $225.8 million from the first quarter of 2025, primarily attributable to payoffs and paydowns of approximately $121.4 million of out-of-market loans as the Company transitioned to a more traditional community banking model. Loans held for sale at March 31, 2026 declined $23.6 million from the first quarter of 2025, reflecting the Company's winddown and exit of its indirect fintech lending partnerships. Total deposits were $1.89 billion at March 31, 2026, a decrease of $18.1 million and $236.4 million from December 31, 2025 and March 31, 2025, respectively. Brokered deposit balances were $207.2 million, $238.7 million, and $339.1 million at the end of the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025, respectively. Brokered deposits as a percentage of total deposits declined to 10.9% at March 31, 2026, from 12.5% at December 31, 2025 and 15.9% at March 31, 2025. Excluding brokered deposits, total deposits increased $13.4 million from December 31, 2025 and decreased $104.5 million from March 31, 2025. Noninterest-bearing deposits represented 20.7%, 20.9%, and 21.3% of total deposits at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 23.3%, 23.8%, and 25.2% of total deposits as of the same respective dates. Subordinated notes were $14.7 million at both March 31, 2026 and December 31, 2025 and $39.8 million at March 31, 2025. The decrease from the first quarter of 2025 reflects the Company's full redemption of its $15.0 million subordinated note in the second quarter of 2025 and $10.0 million partial redemption of its $25.0 million of subordinated notes maturing October 15, 2029 (the "2029 Notes") in the third quarter of 2025. The effective interest rate in the first quarter of 2026 on the 2029 Notes was 7.92%, inclusive of the amortization of the purchase accounting adjustment (premium). About Blue Ridge Bankshares, Inc.: Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking, and retail mortgage lending. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information. Reclassifications: Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported. Non-GAAP Financial Measures: The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company's financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company's business. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release. Forward-Looking Statements: This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of management's beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words of similar meaning. The Company cautions that the forward-looking statements are based largely on management's expectations and are subject to a number of known and unknown risks and uncertainties that may change based on factors which are, in many instances, beyond its control. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements. The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation; reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners; the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs; the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure; the ability to maintain adequate liquidity by growing and retaining deposits and secondary funding sources, especially if the Company's or its industry's reputation becomes damaged; the emergence of digital assets and payment stablecoins, and evolving legislative or regulatory frameworks, which could alter deposit flows, competition, and credit intermediation and in turn, adversely affect the Company's funding, liquidity, or overall financial performance; the ability to maintain capital levels adequate to support the Company's business; the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability; the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward; the usage of advances and changes in technological and social media to develop timely and competitive products and services, and the acceptance of these products and services by new and existing customers; the willingness of users to substitute competitors' products and services for the Company's products and services; the impact of unanticipated outflows of deposits; potential exposure to fraud, negligence, computer theft, and cyber-crime; adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, supervisory and regulatory actions and costs, and related impacts on customer and client behavior; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope and effectiveness of the federal government, its agencies and services; the impact of changes in financial services policies, laws, and regulations, including laws, regulations, and policies concerning taxes, banking, securities, real estate and insurance, and the application thereof by bank regulatory bodies, and the three branches of the federal government; the effect of changes in accounting standards, policies, and practices as may be adopted from time to time; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory countermeasures, and the volatility and uncertainty arising therefrom; the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods and other catastrophic events; the Company's involvement in, and the outcome of, any litigation, legal proceedings or enforcement actions that may be instituted against the Company; and other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and in filings the Company makes from time to time with the U.S. Securities and Exchange Commission ("SEC"). The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company's results of operations or financial condition, or cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise. 1 Non-GAAP financial measure. Further information can be found at the end of this press release. View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-2026-first-quarter-results-302752303.html

Shares of Blue Ridge Bankshares, Inc. BRBS have gained 0.23% since reporting results for the quarter ended Dec. 31, 2025, outperforming the S&P 500 Index, which rose 0.19% over the same period. Shares also rose 0.2% over the past month, though they lagged the broader market’s 1.5% increase during that time. For the fourth quarter of 2025, Blue Ridge Bankshares reported net income of $4.2 million, or $0.04 per diluted common share, against a net loss of $2 million, or $0.03 per share, in the year-ago quarter. This marked a return to profitability on a year-over-year basis, although earnings declined 24.3% sequentially from $5.6 million, or $0.06 per share, in the third quarter of 2025. Net interest income for the quarter was $18.1 million, down from $19.1 million in the fourth quarter of 2024, reflecting lower average interest-earning asset balances. Noninterest income totaled $2.7 million, largely unchanged from $2.8 million a year earlier, while noninterest expense declined 34% to $16.9 million from $25.6 million in the prior-year quarter, driven primarily by lower salaries, employee benefits and regulatory-related costs. For the full year, BRBS posted net income of $10.7 million, or $0.11 per diluted share, against a net loss of $15.4 million, or $0.31 per share, in 2024, underscoring a significant year-over-year improvement in overall performance. Asset quality metrics showed improvement during the quarter. Nonperforming loans declined to $23.8 million, representing 0.98% of total assets, as of Dec. 31, 2025, compared with $28.6 million, or 1.14% at the end of the prior quarter, reflecting loan payoffs and balance reductions. The allowance for credit losses as of Dec. 31, 2025, stood at 1.04% of loans held for investment, slightly lower than 1.09% a year earlier. Total assets decreased to $2.43 billion as of Dec. 31, 2025, from $2.74 billion a year earlier, driven mainly by reductions in loans and brokered deposits as the company continued to reposition its balance sheet. Capital ratios remained well above regulatory minimums, with a tangible common equity ratio of 13.2%, despite declines from the prior quarter due to dividend payments and share repurchases. Blue Ridge Bankshares, Inc. price-consensus-eps-surprise-chart | Blue Ridge Bankshares, Inc. Quote Management characterized 2025 as a “breakthrough year,” highlighting the termination of a regulatory consent order in November 2025 as a key milestone. According to BRBS, the removal of the order is expected to reduce borrowing costs, FDIC insurance premiums and operating expenses, while also providing greater flexibility for capital decisions and strategic opportunities. Leadership also emphasized progress in cost controls, noting that headcount was reduced by more than 30% from year-end 2024 to year-end 2025 as the company transitioned toward a more traditional community banking model. Quarterly results were influenced by several non-recurring and comparative factors. The fourth quarter of 2025 included a $1.5 million pre-tax recovery of credit losses and $0.4 million of pre-tax income related to the 2024 sale of mortgage servicing rights. By contrast, the year-ago quarter reflected a $2 million after-tax loss on the sale of mortgage servicing rights, which weighed on results at that time. Net interest margin declined to 3.04% from 2.80% in the fourth quarter of 2024, but fell sequentially from 3.60% in the third quarter of 2025, partly due to the absence of loan fee income that benefited the prior quarter. Expense reductions, particularly in salaries, benefits and consulting fees, were a major driver of the year-over-year improvement in profitability. While BRBS did not provide formal financial guidance, management noted expectations for mid-single-digit balance sheet growth and positive momentum entering the new year, supported by an improving loan pipeline and stabilization following the wind-down of prior non-core activities. During the quarter, Blue Ridge Bankshares paid a special cash dividend of $0.25 per share, totaling approximately $29.1 million, following regulatory approval to upstream capital from the bank. The company also continued its share repurchase program, buying back 802,735 common shares for $3.4 million during 2025 and repurchasing warrants for $6.1 million. Additionally, earlier in 2025, BRBS completed the sale of its mortgage division, further simplifying its business model and contributing to the year-over-year decline in noninterest income from mortgage-related activities. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blue Ridge Bankshares, Inc. (BRBS): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A Year of Return to Profitability and Termination of Consent Order RICHMOND, Va., Jan. 29, 2026 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced financial results for the quarter and year ended December 31, 2025. For the quarter ended December 31, 2025, the Company reported net income of $4.2 million, or $0.04 per diluted common share, compared to net income of $5.6 million, or $0.06 per diluted common share, for the quarter ended September 30, 2025, and a net loss of $2.0 million, or ($0.03) per diluted common share, for the fourth quarter of 2024. Net income for the third quarter of 2025 included after-tax loan fee income of $2.3 million due to the payoff of the Company's largest out-of-market loan, while net income for the fourth and third quarters of 2025 included after-tax income of $0.3 million and $0.6 million, respectively, on the 2024 sale of mortgage servicing rights ("MSRs"). For the fourth quarter of 2024, the net loss of $2.0 million included an after-tax loss of $2.0 million on the sale of MSRs. For the year ended December 31, 2025, the Company reported net income of $10.7 million, or $0.11 per diluted common share, compared to a net loss of $15.4 million, or ($0.31) per diluted common share, for the year ended December 31, 2024. For 2024, the Company reported $3.6 million of after-tax regulatory remediation expenses, while none were reported in 2025. A Message From Blue Ridge Bankshares, Inc. President and CEO, G. William "Billy" Beale: "2025 was a breakthrough year for Blue Ridge! The hard work and progress of the last 30 months was rewarded in November with termination of the January 2024 Consent Order issued by the Office of the Comptroller of the Currency ("OCC"). The termination of the Consent Order has a cascading impact on the Bank in areas such as borrowing costs, FDIC insurance premiums, and operating costs. It lessens barriers to capital decisions and strategic opportunities. In the quarter, we received regulatory approval to upstream capital from the Bank to pay a special $0.25 per share dividend to our shareholders. "We continue to make progress in reducing our noninterest expenses. For example, headcount was reduced by over 30% from year-end 2024 to year-end 2025. You will see reductions in consulting and professional fees as well. The result was much improved earnings over the last two years. "We are disappointed that our loan portfolio continues to contract mostly because of non-footprint loans made under prior management. We are seeing our loan pipeline increase due to the efforts of our relationship management teams. Despite a very competitive market, we are projecting mid-single digit balance sheet growth and positive momentum as we start the new year." Q4 2025 Highlights (Comparisons for Fourth Quarter 2025 are relative to Third Quarter 2025 unless otherwise noted.) Net Income: Net income for the quarter was $4.2 million, or $0.04 per diluted common share, compared to net income of $5.6 million, or $0.06 per diluted common share, for the prior quarter. Income before income taxes of $5.4 million for the quarter included a $1.5 million pre-tax recovery of credit losses and $0.4 million of pre-tax income from the 2024 sale of MSRs. The prior quarter income before income taxes of $7.5 million included a $1.8 million pre-tax recovery of credit losses, $0.7 million of pre-tax income on the sale of MSRs, and $3.0 million of pre-tax loan fee income realized upon the payoff of a previously criticized out-of-market loan. The loan fee income resulted from loan modifications in the first quarter of 2025 and was fully realized in the third quarter upon pay off. Net Interest Income / Net Interest Margin: Net interest income totaled $18.1 million and $21.9 million for the current and prior quarters of 2025, respectively. Excluding the aforementioned loan fee income in the prior quarter, total interest income decreased by $1.7 million in the current quarter, primarily due to the decline in average balances of interest-earning assets of $54.0 million. Interest expense declined by $0.9 million on a sequential quarter basis, largely driven by lower rates on deposit balances. Net interest margin was 3.04% for the quarter compared to 3.60% for the prior quarter. The aforementioned loan fee income in the prior quarter had a 49-basis-point positive effect on prior quarter net interest margin. Excluding the loan fee income, net interest margin declined 7 basis points from the prior to the current quarter. Capital: On October 27, 2025, the Company announced a special cash dividend of $0.25 per share of the Company's common stock and warrants to purchase common stock totaling approximately $29.1 million. The dividend was paid on November 21, 2025 to shareholders of record as of the close of business on November 7, 2025. On August 25, 2025, the Company announced the adoption of a share repurchase program pursuant to which the Company may purchase up to $15 million of its issued and outstanding common stock. For the year ended December 31, 2025, the Company had repurchased 802,735 shares of its common stock at a weighted average price of $4.17 per share totaling $3.4 million. Additionally, the Company repurchased outstanding warrants to purchase 3,229,000 shares of its common stock at a weighted average price of $1.90 per warrant totaling $6.1 million. The ratio of tangible common stockholders' equity to tangible total assets was 13.2%1, compared to 14.2%1 at the prior quarter end. Tangible book value per common share ("TBV") was $3.651 compared to $4.011 at the prior quarter end. The decline was primarily driven by the special cash dividend, including such dividends accrued to warrant holders, and warrants repurchased, partially offset by earnings for the quarter. TBV does not include the effect of performance-based restricted stock awards totaling 3.4 million shares of the Company's common stock, which would negatively affect TBV by $0.13 and $0.16 in the respective quarters. At December 31, 2025, the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 13.04%, 18.18%, 18.18%, and 19.16%, respectively, compared to 13.67%, 18.95%, 18.95%, and 19.96%, respectively, at the prior quarter end. Capital ratios for the Company at December 31, 2025 for tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 13.81%, 19.22%, 19.22%, and 20.69%, respectively, compared to 14.70%, 20.37%, 20.37%, and 22.02%, respectively, at the prior quarter end. The decline in these ratios for both the Bank and the Company was a result of the aforementioned special cash dividend and share repurchase program activity. Prior to the termination of the Bank's Consent Order with the OCC effective November 13, 2025, the Bank was required to maintain a minimum tier 1 leverage ratio of 10.00% and a total risk-based capital ratio of 13.00%. For all quarters in which the Bank was subject to these minimum ratios, which began in the first quarter of 2024, the Bank's tier 1 leverage and total risk-based capital ratios exceeded the minimum capital ratios set forth in the Consent Order. Asset Quality: Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, improved to $23.8 million, or 0.98% of total assets, at December 31, 2025 compared to $28.6 million, or 1.14% of total assets, at the prior quarter end. The decline in nonperforming loans primarily reflects loan payoffs in the fourth quarter. Nonperforming assets, which includes other real estate owned, were $25.4 million, or 1.05% of total assets, at December 31, 2025 compared to $28.8 million, or 1.15% of total assets, at the prior quarter ended. The recovery of credit losses of $1.5 million for the current quarter was primarily due to loan portfolio balance reductions of approximately $47.0 million, a $0.9 million recovery on a loan charged off in 2022, and reductions to reserves on individually evaluated loans. The $1.8 million recovery of credit losses in the prior quarter was primarily due to third quarter loan portfolio balance reductions and a $0.8 million partial recovery of a specialty finance loan charged off in a prior year. The allowance for credit losses as a percentage of total loans held for investment was 1.04% at December 31, 2025 compared to 1.07% at the prior quarter end. Net loan recoveries were $0.3 million in both the current and prior quarters. The net loan recoveries to average loans outstanding ratio (quarter-to-date annualized) was 0.07% for both the current and prior quarters. Noninterest Income / Noninterest Expense: Noninterest income for the quarter was $2.7 million compared to $3.8 million for the prior quarter. Noninterest income in the fourth and third quarters included $0.4 million and $0.7 million, respectively, of reserves released, primarily due to the receipt of additional sales proceeds that were contractually held back from the 2024 sales of MSRs. Noninterest expense for the quarter was $16.9 million compared to $20.0 million in the prior quarter, a decrease of $3.1 million. This decline was primarily due to lower salaries and employee benefits expense, largely driven by lower incentives and the continued reduction in headcount. Also contributing to the decline in noninterest expense for the quarter was a $0.9 million decrease in legal and consulting fees. Partially offsetting these declines were higher advertising and marketing expenses, as the Bank has accelerated campaigns to drive growth. Income Tax: Income tax expense for the fourth and third quarters was $1.1 million and $1.9 million, respectively, with an effective income tax rate for the same respective periods of 21.2% and 25.3%. Balance Sheet: Total assets decreased to $2.43 billion at quarter end from $2.50 billion at the prior quarter end, a reduction of $64.3 million, primarily driven by declines in loans held for investment of $47.0 million and securities available for sale of $8.4 million. Included in the reduction of loans held for investment in the quarter were payoffs and paydowns of approximately $27.8 million of out-of-market loans. Total deposits decreased to $1.91 billion from $1.95 billion at the prior quarter end, a decline of $39.9 million. Deposits, excluding wholesale deposits, decreased $10.7 million in the fourth quarter. Brokered deposit balances declined $29.2 million in the fourth quarter, as existing brokered time deposits were paid off upon maturity. The ratio of noninterest-bearing demand deposits to total deposits was 20.9% and 21.1% as of December 31, 2025 and September 30, 2025, respectively. Total stockholders' equity decreased to $323.7 million from $355.5 million at the prior quarter end, a decline of $31.8 million. The majority of this decline was attributable to the special cash dividend and $6.1 million in repurchases of warrants to purchase common stock, partially offset by $4.2 million of net income for the quarter. Income Statement: Net interest income was $18.1 million and $21.9 million for the fourth and third quarters of 2025, compared to $19.1 million for the fourth quarter of 2024. The third quarter of 2025 reflected $3.0 million of fee income related to the payoff of the aforementioned out-of-market loan. Net interest income for the year ended December 31, 2025 was $78.9 million compared to $78.7 million for the year ended December 31, 2024. Average balances of interest-earning assets were $2.38 billion for the three months ended December 31, 2025, a decrease of $54.0 million to relative to the prior quarter, and a decrease of $353.3 million from the fourth quarter of 2024. Relative to the prior quarter and the year-ago period, the decrease reflected primarily lower average balances of loans held for investment, loans held for sale, and interest-earning deposits at other banks, partially offset by higher average balances of securities available for sale. The yield on loans held for investment was 5.66% and 6.40% for the fourth and third quarters of 2025, respectively, and 5.83% for the fourth quarter of 2024. Fee income from the payoff of the aforementioned out-of-market loan positively affected the yield on loans held for investment in the third quarter of 2025 by 62 basis points. Average balances of interest-bearing liabilities were $1.70 billion for the three months ended December 31, 2025, a decrease of $41.9 million relative to the prior quarter, and a decrease of $324.7 million from the fourth quarter of 2024. The decline relative to the prior quarter was primarily attributable to maturing wholesale time deposits. The decline in average balances of interest-bearing liabilities relative to the fourth quarter of 2024 was primarily due to reductions of wholesale time deposits ($163.8 million) and borrowings ($25.1 million of subordinated debt and $23.9 million of advances from the Federal Home Loan Bank of Atlanta). Cost of funds was 2.54% for the fourth quarter of 2025, compared to 2.65% for the third quarter of 2025, and 3.01% for the fourth quarter of 2024, while cost of deposits was 2.40%, 2.51%, and 2.86%, for the same respective periods. Cost of deposits, excluding wholesale deposits, was 2.04% for the quarter, compared to 2.13% for the prior quarter, and 2.39% for the year-ago quarter period. Net interest margin was 3.04% for the fourth quarter of 2025 compared to 3.60% in the prior quarter and 2.80% in the fourth quarter of 2024. Fee income from the aforementioned paid off out-of-market loan had a positive 49 basis point effect on net interest margin for the third quarter of 2025. Excluding the effect of the third quarter loan fee, fourth quarter of 2025 net interest margin declined 7 basis points from the third quarter of 2025. Recoveries of credit losses of $1.5 million, $1.8 million, and $1.0 million were reported for the fourth quarter of 2025, third quarter of 2025, and fourth quarter of 2024, respectively. The recovery of credit losses in the current quarter was due to loan portfolio balance reductions, net loan recoveries, including a $0.9 million recovery on a loan charged off in a prior year, and reductions to reserves on individually evaluated loans. The recovery of credit losses in the prior quarter was primarily due to loan portfolio balance reductions and net loan recoveries, including a $0.8 million partial recovery on a specialty finance loan charged off in a prior year. The recovery of credit losses in the fourth quarter of 2024 reflected lower reserve needs due to loan portfolio balance reductions, partially offset by charge-offs of the non-guaranteed portion of certain government guaranteed loans and certain purchased loans. Noninterest income was $2.7 million for the fourth quarter of 2025, compared to $3.8 million for the third quarter of 2025, and $2.8 million for the fourth quarter of 2024. Noninterest income in the fourth and third quarters of 2025 included $0.4 million and $0.7 million, respectively, of released reserves associated with the 2024 sales of MSRs. The reserves related to the Company providing certain documentation to the buyers subsequent to the sales in exchange for contractually heldback sales proceeds. All such documentation was delivered, and the heldback sales proceeds were received in 2025. For the year ended December 31, 2025, total noninterest income was $12.8 million compared to $13.6 million for the year ended December 31, 2024. In the first quarter of 2025, the Company sold its mortgage division, and as a result, residential mortgage banking income was $0.9 million in 2025 compared to $9.8 million in 2024. Additionally, the Company reported a negative fair value adjustment of $8.5 million in 2024 to write-down an investment in a fintech company compared to a nominal amount reported in 2025. Noninterest expense decreased $3.1 million from the prior quarter and $8.7 million from the year-ago period. The largest contributor to these declines was lower salaries and employee benefits expense, which was $9.2 million, $11.4 million, and $13.2 million for the fourth quarter of 2025, third quarter of 2025, and fourth quarter of 2024, respectively. The majority of the decline in salaries and employee benefits expense in the current versus prior quarter was due to lower incentives, while lower expense compared to the year-ago period was primarily due to reduced headcount, which declined by 140 employees, or over 30%, since year-end 2024, as the Company transitioned to a more traditional community banking model and remediated the requirements under the now-terminated Consent Order. For the year ended December 31, 2025, total noninterest expense was $81.9 million compared to $113.8 million for the year ended December 31, 2024. Of the $31.9 million decline, $12.0 million was attributable to lower salaries and benefits expense, while $4.7 million, $4.7 million, and $6.4 million was due to lower consulting expense, regulatory remediation expense, and other noninterest expense, respectively. The decline in salaries and employee benefits expense was primarily attributable to a reduction in headcount, while the lower consulting, regulatory remediation, and other noninterest expenses were primarily attributable to the remediation of the Consent Order. Balance Sheet: Loans held for investment were $1.87 billion at December 31, 2025, compared to $1.91 billion at September 30, 2025, and $2.11 billion at December 31, 2024. The $47.0 million decline relative to the prior quarter end was partially due to payoffs and paydowns of approximately $27.8 million of out-of-market loans. Loans held for investment declined $246.1 million in 2025, primarily attributable to payoffs and paydowns of approximately $119.4 million of out-of-market loans as the Company transitioned to a more traditional community banking model. Total deposits were $1.91 billion at December 31, 2025, a decrease of $39.9 million and $268.3 million from September 30, 2025, and December 31, 2024, respectively. Wholesale deposit balances were $238.7 million and $267.9 million at the end of the fourth and third quarters of 2025, respectively, and $402.5 million at the end of the fourth quarter of 2024. The Company had secured brokered deposits to enhance liquidity during the fintech BaaS depository operations wind down, which began in the first quarter 2024 and was completed by the end of 2024. Brokered deposits as a percentage of total deposits declined to 12.5% at December 31, 2025 from 18.5% at December 31, 2024. Excluding wholesale deposits, total deposits decreased $10.7 million from September 30, 2025 and $104.5 million from December 31, 2024. Noninterest-bearing deposits represented 20.9%, 21.1%, and 20.8% of total deposits at December 31, 2025, September 30, 2025, and December 31, 2024, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 23.8%, 24.4%, and 25.5% of total deposits as of the same respective dates. Subordinated notes were $14.7 million at December 31, 2025, a decrease of $25.1 million from December 31, 2024. On June 1, 2025, the Company completed the redemption of its $15.0 million fixed-to-floating rate subordinated note maturing June 1, 2030. On July 15, 2025, the Company completed a $10.0 million partial redemption of its $25.0 million of subordinated notes maturing October 15, 2029. About Blue Ridge Bankshares, Inc.: Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking, and retail mortgage lending. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information. Reclassifications: Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported. Non-GAAP Financial Measures: The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company's financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company's business. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release. Forward-Looking Statements: This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company's beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or phrases of similar meaning. The Company cautions that the forward-looking statements are based largely on its expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation; the Company's involvement in, and the outcome of, any litigation, legal proceedings or enforcement actions that may be instituted against the Company; reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners; the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs; the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure; the ability to maintain adequate liquidity by retaining deposits and secondary funding sources, especially if the Company's or the banking industry's reputation becomes damaged; the emergence of digital assets and payment stablecoins, and evolving legislative or regulatory frameworks, may alter deposit flows, competition, and credit intermediation. Changes or gaps in these emerging rules could adversely affect the Company's funding, liquidity, or overall financial performance; the ability to maintain capital levels adequate to support the Company's business; the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability; the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; changes in consumer spending and savings habits; the willingness of users to substitute competitors' products and services for the Company's products and services; the impact of unanticipated outflows of deposits; changes in technological and social media; potential exposure to fraud, negligence, computer theft, and cyber-crime; adverse developments in the banking industry generally, including recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or Blue Ridge Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope and effectiveness of the federal government, its agencies and services; the impact of changes in financial services policies, laws, and regulations, including laws, regulations, and policies concerning taxes, banking, securities, real estate, and insurance, and the application thereof by bank regulatory bodies, and the three branches of the federal government; the effect of changes in accounting standards, policies, and practices as may be adopted from time to time; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory countermeasures, and the volatility and uncertainty arising therefrom; the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods and other catastrophic events; and other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in filings the Company makes from time to time with the U.S. Securities and Exchange Commission ("SEC"). The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company's results of operations or financial condition, or cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise. 1 Non-GAAP financial measure. Further information can be found at the end of this press release. View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-2025-fourth-quarter-and-full-year-results-302674535.html

Shares of Blue Ridge Bankshares, Inc. BRBS have gained 1.4% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 Index’s 0.9% gain over the same time frame. Over the past month, the stock gained 2.4% compared with the S&P 500’s 2.3% rise. Blue Ridge Bankshares reported third-quarter 2025 net income of $5.6 million, or $0.06 per diluted share, representing a significant improvement from $0.9 million, or $0.01 per share, in the year-ago quarter and $1.3 million, or $0.01 per share, in the preceding quarter. Year to date, Blue Ridge Bankshares earned $6.5 million ($0.07 per share) against a net loss of $13.4 million ($0.34 per share) for the same period in 2024. Total interest income fell 7.7% year over year to $36.2 million from $39.2 million. Net interest income increased 14.7% to $21.9 million from $19.1 million a year earlier, driven by higher loan yields and one-time fee income. Noninterest income rose 42.1% to $3.8 million from $2.7 million a year ago, while noninterest expense declined 24.2% year over year to $20 million from $26.5 million. These improvements helped the bank post its highest quarterly profit since 2022. The quarter’s profitability benefited from $3 million in loan fee income on the payoff of a criticized out-of-market loan and a $0.8 million recovery from a previously charged-off specialty finance loan. Additionally, the company received $0.8 million in proceeds tied to 2024 mortgage servicing rights sales. These non-recurring items boosted both interest and non-interest income. Net interest margin expanded markedly to 3.60% from 3.15% in the prior quarter and 2.74% a year earlier, reflecting lower deposit costs and the aforementioned loan payoff. Excluding one-time items, margin gains were still supported by a better funding mix and disciplined expense control. The cost of deposits fell to 2.51% from 2.91% a year ago. Nonperforming loans rose modestly to $28.6 million (1.14% of total assets) from $24 million (0.94%) in the previous quarter, largely due to a single multifamily loan that remains current on payments. Blue Ridge Bankshares reported a $1.8 million recovery of credit losses, improving from a $0.7 million recovery last quarter. The allowance for credit losses stood at 1.07% of total loans, slightly down from 1.11% in June 2025. Blue Ridge Bankshares, Inc. price-consensus-eps-surprise-chart | Blue Ridge Bankshares, Inc. Quote President and CEO G. William “Billy” Beale praised the bank’s turnaround, noting that the quarter’s results were “a good news story on many fronts.” Beale credited improved operational discipline and the successful completion of several strategic transitions, including cost control and the exit of high-risk fintech activities. He emphasized that headcount and salary costs continued to decline sequentially, while regulatory expenses and FDIC insurance fees were lower, indicators of improved standing with regulators. Beale highlighted that despite a decline in loans held for investment to $1.91 billion as of Sept. 30, 2025, from $1.98 billion as of June 30, 2025, BRBS built a $200 million loan pipeline as of Sept. 30, suggesting renewed business momentum. He also reaffirmed the company’s solid capital position and indicated that he expects robust fourth-quarter results to be reported in January 2026. The quarterly results were bolstered by nonrecurring fee income and recoveries on previously written-down assets. A one-time $3 million payoff from a large loan and a $0.8 million recovery from a specialty finance loan significantly lifted earnings. Lower funding costs, reduced FDIC assessments and declining headcount further supported profitability. However, these positives were partially offset by higher legal and consulting expenses, tied to revenue enhancement projects and regulatory compliance efforts. From a balance-sheet perspective, total assets fell to $2.49 billion from $2.94 billion a year earlier, reflecting a deliberate reduction in out-of-market loans and fintech-related deposits. Total deposits declined to $1.95 billion from $2.35 million, with a $28.2 million reduction in brokered deposits, while wholesale deposits fell $32.3 million. Liquidity improved to $808.7 million, or 200% of uninsured deposits, from 183.3% in the prior quarter. Capital ratios strengthened across the board. The tier 1 leverage ratio rose to 14.70% at the holding company level and 13.67% at the bank level, comfortably above the Office of the Comptroller of the Currency required minimums. The tangible common equity ratio improved to 14.2% from 10.6% a year ago, while tangible book value per share climbed to $4.01 from $3.85 in June 2025. While no formal quantitative guidance was provided, management expressed confidence that the operational restructuring, strengthened capital position and a growing commercial loan pipeline will translate into continued earnings improvement in the coming quarters. CEO Beale projected another strong performance in the fourth quarter, citing regulatory progress and early signs of balance-sheet stabilization. During the quarter, Blue Ridge Bankshares repurchased 659,949 shares under its newly authorized $15 million stock repurchase program, at a weighted average price of $4.16 per share, totaling $2.8 million. Earlier in 2025, the company also completed the sale of its Monarch Mortgage division, incurring a $0.2 million loss, and partially redeemed $10 million of subordinated notes maturing in 2029. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blue Ridge Bankshares, Inc. (BRBS): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Reports highest level of profits since 2022 RICHMOND, Va., Oct. 22, 2025 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced financial results for the quarter ended September 30, 2025. For the quarter ended September 30, 2025, the Company reported net income of $5.6 million, or $0.06 per diluted common share, compared to net income of $1.3 million, or $0.01 per diluted common share, for the quarter ended June 30, 2025, and net income of $0.9 million, or $0.01 per diluted common share, for the third quarter of 2024. For the year-to-date period ended September 30, 2025, the Company reported net income of $6.5 million, or $0.07 per diluted common share, compared to a net loss of $13.4 million, or ($0.34) per diluted common share, for the same period of 2024. A message from Blue Ridge Bankshares, Inc. President and CEO, G. William "Billy" Beale: "Blue Ridge Bank's third quarter results are a good news story on many fronts. Before I address the numbers, I want to acknowledge the team that got us to this point and will return Blue Ridge to a prominent place in Virginia community banking. Without the tenacity, negotiation skills, attention to detail, and solid banking knowledge shown by the employees who have either joined us or quickly adapted to new leadership, these results would not have been possible. "Most banks in transition report one-time financial events as the organization returns to normal operations. We had our share this quarter. We reported $3.0 million of fee income when our largest single out-of-market loan paid off and we recovered $0.8 million from a specialty finance loan that was charged off in 2023. By successfully fulfilling obligations to the buyers of our mortgage servicing rights in 2024, we received an additional $0.8 million in noninterest income. Partially offsetting these positive events, we showed increased consulting fees, as we completed a revenue enhancement engagement started in 2024. Legal expenses also were higher in the quarter. We expect both expense lines to return to lower levels in the fourth quarter. "On an on-going basis, noninterest expenses reflect reduced Federal Deposit Insurance Corporation ("FDIC") insurance and audit fees, a sign of our improved regulatory position, and salary and benefit expenses and headcount were again down on a sequential quarter basis. "Last quarter, I stated we were turning our focus to growth. While loans held for investment declined by $66 million in the third quarter, $33 million of the decline was due to the payoff of the single credit mentioned above. We have added talent to the commercial relationship team who, along with those already on board, have built a loan pipeline of more than $200 million as of September 30, 2025. Additional relationship managers will join us in fourth quarter. We are seeing deposit and loan relationship opportunities materialize as our larger competitors focus on larger deals. "Early in the third quarter, the Company announced our board had approved an up to $15 million share repurchase program. This action reflects our strong capital position and our regulator's acknowledgment of the progress made by the Blue Ridge team over the last 18 months. I anticipate again reporting strong results for the fourth quarter in January 2026." Sale of Monarch Mortgage On March 27, 2025, the Company completed the previously announced sale of its mortgage division operating as Monarch Mortgage. The sale, which included the transfer of certain assets and leases to an unrelated mortgage company, resulted in a $0.2 million loss, reported in other noninterest income in the year-to-date 2025 period. Q3 2025 Highlights (Comparisons for Third Quarter 2025 are relative to Second Quarter 2025 unless otherwise noted.) Net Income: Net income for the third quarter was $5.6 million, or $0.06 per diluted common share, compared to net income of $1.3 million, or $0.01 per diluted common share, for the prior quarter. The third quarter income before income taxes of $7.5 million included $3.0 million of loan fee income realized upon the payoff of a previously criticized out-of-market loan, while the prior quarter included $0.3 million of fee income from this loan. The loan fee income resulted from loan modifications in the first quarter of 2025 and was fully realized in the third quarter upon pay off. Also included in the prior quarter income before income taxes of $1.8 million was a benefit of $1.3 million – primarily the recovery of non-credit-related amounts reserved for in the prior year – as the Company concluded outstanding exit activities with a former fintech banking-as-a-service ("BaaS") partner. Net Interest Income / Net Interest Margin: Net interest income totaled $21.9 million and $19.8 million for the third and second quarters, respectively. Excluding the aforementioned loan fee income, interest income decreased by $0.6 million in the quarter, primarily due to the decline in average balances of interest-earning assets, which declined $88.3 million from the prior quarter. Average balances of interest-bearing liabilities declined $80.7 million from the prior quarter, of which $32.3 million was wholesale deposits and $16.5 million was subordinated notes. Net interest margin was 3.60% for the quarter, compared to 3.15% for the prior quarter. The aforementioned loan fee income in the third and second quarters, along with the second quarter interest expense benefit realized upon the exit of the previously noted former fintech BaaS partner, had a positive effect on net interest margin of 49 and 8 basis points, respectively. On July 15, 2025, the Company completed a $10.0 million partial redemption of its $25.0 million of subordinated notes maturing October 15, 2029 (the "2029 Notes"). On July 15, 2025, the rate on the 2029 Notes reset to 8.65%, which was the then three-month Secured Overnight Funding Rate (SOFR) plus 433.5 basis points. Interest expense and the effective interest rate on the 2029 Notes were $0.3 million and 9.16%, respectively, for the third quarter of 2025, compared to $0.5 million and 7.86%, respectively, for the second quarter. Capital: On August 25, 2025, the Company announced the adoption of a share repurchase program pursuant to which the Company may purchase up to $15 million of its issued and outstanding common stock ("Common Stock"). As of the end of the third quarter, the Company had repurchased 659,949 shares of its Common Stock at a weighted average price of $4.16 per share totaling $2.8 million. The ratio of tangible common stockholders' equity to tangible total assets was 14.2%1 compared to 13.4%1 at the prior quarter end. The increase in this ratio was primarily driven by a smaller balance sheet, net income for the period, and the decrease in unrealized losses on the Company's portfolio of securities available for sale. Tangible book value per common share ("TBV") was $4.011 and $3.851 at the end of the third and second quarters, respectively. TBV does not include the effect of the second quarter grant of performance-based restricted stock awards ("PSAs") totaling 3.4 million shares of Common Stock, which would negatively affect TBV by $0.16 and $0.14 in the respective quarters. At September 30, 2025, the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 13.67%, 18.73%, 18.73%, and 19.73%, respectively, compared to 12.89%, 17.86%, 17.86%, and 18.91%, respectively, at the prior quarter end. Capital ratios for the Company at September 30, 2025 for tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 14.70%, 20.14%, 20.14%, and 21.77%, respectively, compared to 13.93%, 19.29%, 19.29%, and 21.37%, respectively, at the prior quarter end. As of September 30, 2025, the Bank's tier 1 leverage and total risk-based capital ratios exceeded the minimum capital ratios set forth in the Bank's Consent Order with the Office of the Comptroller of the Currency (the "OCC"), which requires the Bank to maintain a minimum tier 1 leverage ratio of 10.00% and a total risk-based capital ratio of 13.00%. Asset Quality: Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, were $28.6 million, or 1.14% of total assets, at quarter end compared to $24.0 million, or 0.94% of total assets, at the prior quarter end. The consecutive quarter increase in nonperforming loans was primarily attributable to a $4.8 million multifamily loan that was placed on nonaccrual status in the quarter. The loan was current as to principal and interest as of September 30, 2025, and based on the payment performance, strength of the guarantors, and value of the collateral, the Company believes that future credit losses, if any, will not be significant. A recovery of credit losses of $1.8 million was reported for the third quarter compared to a recovery of credit losses of $0.7 million for the prior quarter. The recovery of credit losses in the quarter was primarily due to loan portfolio balance reductions and a $0.8 million recovery of a portion of a specialty finance loan charged off in 2023. The allowance for credit losses as a percentage of total loans held for investment was 1.07% at third quarter end compared to 1.11% at the prior quarter end. Net loan recoveries were $0.3 million in the quarter compared to net loan charge-offs of $0.5 million for the prior quarter. The net loan (recoveries) charge-offs to average loans outstanding ratio (quarter-to-date annualized) for the quarter was (0.07%) compared to 0.09% for the prior quarter. Noninterest Income / Noninterest Expense: Noninterest income for the third quarter was $3.8 million compared to $3.2 million for the prior quarter. The improvement was primarily due to swap transaction fee income related to the execution of back-to-back interest rate swaps for commercial borrowers and a positive fair value adjustment of other equity investments. Additionally, noninterest income in the third and prior quarters included $0.8 million and $0.3 million, respectively, of reserves released upon the receipt of additional sales proceeds that were contractually held back from the 2024 sales of mortgage servicing rights. Noninterest expense for the third quarter was $20.0 million compared to $22.0 million for the prior quarter, a decrease of $2.0 million. Salaries and employee benefits expense totaled $11.4 million in the quarter and $13.0 million in the prior quarter, including severance costs of $0.1 million and $0.3 million, respectively, and $1.0 million and $2.0 million of expense for PSAs, respectively. The quarterly decline in salaries and employee benefits also reflects a net reduction in headcount. As of the end of the third and prior quarters, headcount was 311 and 333, respectively. Lower FDIC insurance premiums of $0.8 million in the quarter compared to the prior quarter were primarily attributable to a lower assessment rate. Partially offsetting these consecutive quarter declines were higher legal and consulting expenses. Income Tax: Income tax expense for the third and second quarters was $1.9 million and $0.5 million, respectively, with an effective income tax rate for the same respective periods of 25.3% and 27.0%. Balance Sheet: Total assets decreased to $2.50 billion from $2.56 billion at the prior quarter end, a reduction of $58.5 million, primarily driven by declines in loans held for investment of $65.9 million, partially offset by increases in securities available for sale. Included in the reduction of loans held for investment in the quarter were the payoffs and paydowns of approximately $53.3 million of out-of-market loans. Total deposits decreased to $1.95 billion from $2.01 billion at the prior quarter end, a decline of $59.2 million. Deposits, excluding wholesale deposits, decreased $31.0 million in the third quarter. Brokered deposit balances declined $28.2 million in the third quarter, as existing brokered time deposits were paid off upon maturity. Sources of liquidity, which consist primarily of on-balance sheet cash, unpledged securities available for sale, and available credit under secured borrowing facilities, totaled $808.7 million, or 200.0% of uninsured deposits as of September 30, 2025. Sources of liquidity as of June 30, 2025, totaled $750.0 million, or 183.3% of uninsured deposits. Income Statement: Net interest income was $21.9 million and $19.8 million for the third and second quarters of 2025, respectively, and $19.1 million for the third quarter of 2024. The third and second quarters of 2025 reflected $3.0 million and $0.3 million, respectively, of fee income related to the aforementioned out-of-market loan. Average balances of interest-earning assets decreased $88.3 million to $2.44 billion in the third quarter of 2025, relative to the prior quarter, and decreased $358.6 million from the year-ago quarter period. Relative to the prior quarter and the year-ago period, the decrease reflected primarily lower average balances of loans held for investment, partially offset by higher average balances of securities available for sale. The yield on loans held for investment was 6.40% and 5.80% for the third and second quarters of 2025, respectively, and 5.80% for the third quarter of 2024. Fee income from the aforementioned out-of-market loan positively affected the yield on loans held for investment in the third and second quarters of 2025 by 62 and 6 basis points, respectively. Average balances of interest-bearing liabilities decreased $80.7 million to $1.74 billion in the third quarter of 2025, relative to the prior quarter, primarily attributable to maturing wholesale deposits and the redemption of $25.0 million of the Company's subordinated notes in the late second and early third quarters of 2025. The third quarter of 2025 decline in average balances of interest-bearing liabilities relative to the same period of 2024 was primarily due to the exit of fintech deposit operations ($182.8 million), and the payoff of wholesale deposits ($162.6 million) and borrowings ($25.1 million). Cost of funds was 2.65% for the third quarter of 2025, compared to 2.63% for the second quarter of 2025, and 3.09% for the third quarter of 2024, while cost of deposits was 2.51%, 2.47%, and 2.91%, for the same respective periods. The interest expense benefit realized upon the exit of the previously noted former fintech BaaS partner had a positive 3 basis point effect on cost of deposits in the second quarter of 2025. Cost of deposits, excluding wholesale deposits, was 1.17% for the quarter, compared to 1.05% for the prior quarter, and 1.71% for the year-ago period. Net interest margin was 3.60% for the third quarter of 2025, compared to 3.15% for the second quarter, and 2.74% for the third quarter of 2024. Fee income from the aforementioned paid off loan and the interest expense benefit had a positive 49 and 8 basis point effect on net interest margin for the third and second quarters of 2025, respectively. Excluding the effect of the loan fee income for the third quarter of 2025, higher net income margin relative to the third quarter of 2024 was primarily attributable to lower costs of time deposits, including wholesale deposits. A recovery of credit losses of $1.8 million was reported for the third quarter of 2025, compared to a $0.7 million recovery of credit losses for the second quarter of 2025, and a recovery of credit losses of $6.2 million for the third quarter of 2024. The recovery of credit losses for the third quarter of 2025 was primarily due to loan portfolio balance reductions and a $0.8 million recovery of a specialty finance loan charged off in 2023, while recovery of credits losses for the second quarter of 2025 was primarily due to loan portfolio balance reductions. The recovery of credit losses for the third quarter of 2024 was primarily attributable to an $8.4 million recovery from the sale of a specialty finance loan and lower reserve needs due to loan portfolio balance reductions, partially offset by higher specific reserves for certain purchased loans. Noninterest income was $3.8 million for the third quarter of 2025, compared to $3.2 million for the second quarter of 2025, and $2.7 million for the third quarter of 2024. The improvement relative to the prior quarter was primarily due to swap transaction fee income, positive fair value adjustments of other equity investments, and higher proceeds of funds held back from the previously noted mortgage servicing rights sales. Noninterest income for the third quarter of 2024 reflected a $1.0 million loss on the sale of mortgage servicing rights. Noninterest expense was $20.0 million for the third quarter of 2025, compared to $22.0 million for the second quarter of 2025, and $26.5 million for the third quarter of 2024. Noninterest expense decreased $2.0 million from the prior quarter and $6.4 million from the year-ago period. Salaries and employee benefits expense included severance of $0.1 million and $0.3 million for the third and second quarters of 2025, respectively, as well as $1.0 million and $2.0 million of expense for PSAs for the same respective periods. In the third quarter of 2025, higher other contractual services expense was due to the completion of a revenue enhancement project, while legal expenses were also higher. Offsetting these higher expenses were lower audit fees and FDIC insurance assessments, both reflecting the Bank's positive efforts under its Consent Order with the OCC. The decline in noninterest expense in the 2025 period compared to the same period of 2024 was primarily due to lower salaries and employee benefits expense, consulting fees, and FDIC insurance assessments, partially offset by higher legal fees. Balance Sheet: Loans held for investment were $1.91 billion at September 30, 2025, compared to $1.98 billion at June 30, 2025, and $2.18 billion at September 30, 2024. The $65.9 million decline relative to the prior quarter was partially due to payoffs and paydowns of approximately $53.3 million of out-of-market loans. The third quarter of 2025 decline relative to the same period of 2024 was primarily attributable to the Company's plans to purposefully and selectively reduce assets to partially meet the liquidity needs of the fintech BaaS depository operations exit, which was completed at the end of 2024, as well as to transition the Company to a more traditional community banking model. Total deposits were $1.95 billion at September 30, 2025, a decrease of $59.2 million and $395.4 million from June 30, 2025 and September 30, 2024, respectively. Wholesale deposit balances were $267.9 million and $296.1 million at the end of the third and second quarters of 2025, respectively. Excluding wholesale deposits, total deposits decreased $31.0 million from the prior quarter end and $232.8 million from the third quarter of 2024. The Company previously reported that it was prohibited from the acceptance, renewal, or rollover of brokered deposits as a result of the Consent Order; however, the Company has received consecutive six-month approvals from the FDIC allowing the Bank to accept, renew, or rollover brokered deposits limited to the amount of maturities during this period. In June 2025, the Company received an extension for an additional six-month period, through December 2025. Brokered deposits at September 30, 2025 were $267.9 million, a decline of $28.2 million from June 30, 2025, and a decline of $162.6 million from September 30, 2024. The Company had secured brokered deposits to enhance liquidity during the fintech BaaS depository operations wind down, which was completed at the end of 2024. Noninterest-bearing deposits represented 21.1%, 21.5%, and 19.6% of total deposits at September 30, 2025, June 30, 2025, and September 30, 2024, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 24.3%, 24.6%, and 23.3% of total deposits as of the same respective dates. About Blue Ridge Bankshares, Inc.: Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information. Reclassifications: Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported. Non-GAAP Financial Measures: The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company's financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company's business. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release. Forward-Looking Statements: This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company's beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or phrases of similar meaning. The Company cautions that the forward-looking statements are based largely on its expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation; the impact of, and the ability to comply with, the terms of the January 24, 2024 Consent Order with the OCC, including the heightened capital requirements and other restrictions therein, and other regulatory directives; the imposition of additional regulatory actions or restrictions for noncompliance with the Consent Order or otherwise; the Company's involvement in, and the outcome of, any litigation, legal proceedings, or enforcement actions that may be instituted against the Company; reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners; the Company's ability to manage its fintech relationships, including implementing enhanced controls and procedures, complying with the OCC directives and applicable laws and regulations, and managing the wind down of these partnerships; the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs; the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure; the ability to maintain adequate liquidity by growing and retaining deposits and secondary funding sources, especially if the Company's or its industry's reputation become damaged; the ability to maintain capital levels adequate to support the Company's business and to comply with the Consent Order directives; the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability; the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; changes in consumer spending and savings habits; the willingness of users to substitute competitors' products and services for the Company's products and services; the impact of unanticipated outflows of deposits; technological and social media changes; potential exposure to fraud, negligence, computer theft, and cyber-crime; adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, supervisory and regulatory actions and costs, and related impacts on customer and client behavior; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope and effectiveness of the federal government, its agencies and services; the impact of changes in financial services policies, laws, and regulations, including laws, regulations and policies concerning taxes, banking, securities, real estate and insurance, the application thereof by bank regulatory bodies, and the three branches of the federal government; the effect of changes in accounting standards, policies, and practices as may be adopted from time to time; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory counter measures, and the volatility and uncertainty arising therefrom; the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods, and other catastrophic events; and other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in filings the Company makes from time to time with the U.S. Securities and Exchange Commission ("SEC"). The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company's results of operations or financial condition, or cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise. 1 Non-GAAP financial measure. Further information can be found at the end of this press release. View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-2025-third-quarter-results-302591984.html

Reports net income for the quarter and continued progress on regulatory remediation efforts RICHMOND, Va., July 23, 2025 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced financial results for the quarter ended June 30, 2025. For the quarter ended June 30, 2025, the Company reported net income of $1.3 million, or $0.01 per diluted common share, compared to a net loss of $0.4 million, or ($0.01) per diluted common share, for the quarter ended March 31, 2025, and a net loss of $11.4 million, or ($0.47) per diluted common share, for the second quarter of 2024. For the first half of 2025, the Company reported net income of $0.9 million, or $0.01 per diluted common share, compared to a net loss of $14.3 million, or ($0.66) per diluted common share, for the first half of 2024. A Message From Blue Ridge Bankshares, Inc. President and CEO, G. William "Billy" Beale: "In our earnings release for first quarter 2025, I mentioned the results were a harbinger for future sustainable and increasing profitability. I am pleased to report that the Company earned $1.3 million for the second quarter and became profitable for the first half of 2025. "There are several encouraging trends. Our net interest margin, driven primarily by lower deposit costs, grew to 3.15% for the quarter, notwithstanding a smaller balance sheet. Noninterest income from service charges on deposit accounts improved through our efforts to align to market level pricing. "Reduction in noninterest expense remains a focus. The quarter reflected an improvement or reduction in expenses of almost $1.0 million from the first quarter. Included in our noninterest expenses are the salary and benefit savings we expected from the headcount reductions made in the prior quarter. These reductions in expense were masked in the quarter by additional costs relating to a component of our incentive plan, which is tied to annual profitability targets. Headcount reductions in the first half of 2025 were 109 and 170 since the end of the second quarter of 2024. We expect to report further reductions in noninterest expenses in future quarters, as we continue to focus on operational improvements and believe we are nearing the completion of regulatory remediation activities. We continue to expect to achieve an annualized run rate of noninterest expense to assets of less than 3% by the fourth quarter of this year. "With significant progress made toward remediation of the January 2024 consent order, we have turned our focus to growing our community bank. To date, the runoff of non-core loans and deposits exceeds new loans and deposits generated within our footprint. We expect this trend to continue, but at a slower pace in the third quarter. "I am encouraged by what I see in the financials; however, I am more encouraged by my teammates and their energy as we turn from a team of 'fixers' to a team of 'growers'." Sale of Monarch Mortgage On March 27, 2025, the Company completed the previously announced sale of its mortgage division operating as Monarch Mortgage. The sale, which included the transfer of certain assets and leases to an unrelated mortgage company, resulted in a $0.2 million loss, reported in other noninterest income in the year-to-date 2025 period. As of June 30, 2025, the Company had closed, funded, and sold the loans that were in process at the time of the sale. Q2 2025 Highlights (Comparisons for Second Quarter 2025 are relative to First Quarter 2025 unless otherwise noted.) Net Income: Net income for the quarter was $1.3 million, or $0.01 per diluted common share, compared to a net loss of $0.4 million, or $0.01 per diluted common share, for the prior quarter. The second quarter income before income taxes of $1.8 million included severance costs of $0.3 million and a benefit of $1.3 million – primarily the recovery of non-credit-related amounts reserved for in the prior year – as the Company concluded outstanding exit activities with a former fintech banking-as-a-service ("BaaS") partner. The prior quarter loss before income taxes of $0.9 million included $0.7 million in severance costs and a $0.2 million loss on the mortgage division sale. Net Interest Income / Net Interest Margin: Net interest income totaled $19.8 million and $19.0 million for the second and first quarters, respectively. Interest income decreased by $0.6 million in the second quarter, primarily due to the decline in average balances of interest earning assets, which declined $94.9 million from the prior quarter. Interest expense declined by $1.5 million, largely driven by the decline in average balances and costs of interest-bearing deposits, which declined $74.3 million and 19 basis points, respectively, from the prior quarter. Net interest margin improved to 3.15% during the quarter from 2.90% in the prior quarter, primarily reflecting the decline in the cost of deposits. On June 1, 2025, the initial redemption date, the Company completed the redemption of its $15.0 million fixed-to-floating rate subordinated note with a final maturity date of June 1, 2030 (the "2030 Note"). The interest rate on the 2030 Note was 6.0% up to the redemption date. Interest expense on the 2030 Note was $0.2 million for both the second and first quarters of 2025. On June 2, 2025, the Company provided to the holders of its $25.0 million of subordinated notes maturing October 15, 2029 (the "2029 Notes") a notice of partial redemption at the next interest payment date of $10.0 million of the 2029 Notes. On July 15, 2025, the Company completed the partial redemption. On April 15, 2025, the rate on the 2029 Notes reset to 8.59%, which was the then three-month Secured Overnight Funding Rate ("SOFR") plus 433.5 basis points. Interest expense and the effective interest rate on the 2029 Notes were $0.5 million and 7.86%, respectively, for the second quarter of 2025, compared to $0.5 million and 8.05% for the first quarter. Capital: The ratio of tangible common stockholders' equity to tangible total assets was 13.4%1compared to 12.5%1 at the prior quarter end. The increase in this ratio was primarily driven by the exercise of warrants for one million common shares and a smaller balance sheet. Tangible book value per common share ("TBV") was $3.851 and $3.831 at the end of the current and prior quarters, respectively. TBV does not include the effect of the second quarter grant of performance-based restricted stock awards ("PSAs") totaling 3.4 million shares of common stock to certain executive officers, which would have a $0.14 impact on TBV. At June 30, 2025, the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 12.89%, 17.86%, 17.86%, and 18.91%, respectively, compared to 12.33%, 16.88%, 16.88%, and 17.93%, respectively, at the prior quarter end. Capital ratios for the Company at June 30, 2025 for tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 13.93%, 19.29%, 19.29%, and 21.37%, respectively, compared to 13.23%, 18.06%, 18.06%, and 20.83%, respectively, at the prior quarter end. As of June 30, 2025 and March 31, 2025, the Bank's tier 1 leverage and total risk-based capital ratios exceeded the minimum capital ratios set forth in the Bank's Consent Order with the Office of the Comptroller of the Currency (the "OCC"), which requires the Bank to maintain a minimum tier 1 leverage ratio of 10.00% and a total risk-based capital ratio of 13.00%. Asset Quality: Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, were $24.0 million, or 0.94% of total assets, at quarter end compared to $24.9 million, or 0.93% of total assets, at the prior quarter end. A recovery of credit losses of $0.7 million was reported for the second quarter compared to no provision for or recovery of credit losses for the prior quarter. In the second quarter, lower allowance for credit losses ("ACL") needs were due to loan portfolio balance reductions, partially offset by specific reserves and charge-offs for out-of-market loans purchased in prior years. The ACL as a percentage of total loans held for investment was 1.11% at quarter end compared to 1.12% at the prior quarter end. Net loan charge-offs were $0.5 million in the quarter compared to net loan recoveries of $0.1 million for the prior quarter. Net loan charge-offs (recoveries) to average loans outstanding ratio (quarter-to-date annualized) for the second quarter was 0.09% compared to (0.02%) for the prior quarter. Noninterest Income / Noninterest Expense: Noninterest income for the quarter was $3.2 million compared to $3.1 million in the prior quarter. The improvement was primarily due to higher service charges on deposit accounts and a $0.3 million release of reserves upon the receipt of contractually held back sales proceeds from the 2024 mortgage servicing rights ("MSR") asset sales, partially offset by the reduction in the value of the remaining MSR assets. Improved service fee income was primarily due to the execution of a project to more closely align products and pricing with competitors in the markets in which the Bank operates. Noninterest income in the first quarter included a $0.2 million loss on the sale of the mortgage division. Noninterest expense for the quarter was $22.0 million compared to $23.0 million in the prior quarter, a decrease of $1.0 million. The decrease was primarily due to the second quarter recovery of non-credit-related amounts reserved for in the prior year, upon the conclusion of exit activities with a former fintech BaaS partner. Salaries and employee benefits expense totaled $13.0 million in the second quarter and $12.6 million in the first quarter, including severance costs of $0.3 million and $0.7 million, respectively, and $2.0 million of expense for PSAs, including expense relating to the first quarter of the annual performance period. Excluding these items, there was a $1.2 million decline in salaries and benefits expense quarter over quarter, due to reductions in headcount. As of the end of the second and first quarters, headcount was 333 and 351, respectively. Income Tax: Income tax expense (benefit) for the second and first quarters was $0.5 million and ($0.5) million, respectively, with an effective income tax rate for the same respective periods of 27.0% and 51.2%. The higher effective income tax rate in the prior quarter was driven by a $0.3 million favorable adjustment related to a change in the state tax rate applied to the accumulated unrealized loss on the available for sale securities portfolio. Excluding this adjustment, the effective income tax rate for the prior quarter was 22.7%. Balance Sheet: Total assets decreased to $2.56 billion from $2.69 billion at the prior quarter end, a reduction of $129.6 million, primarily driven by declines in loans held for investment of $81.1 million, loans held for sale of $11.2 million, and lower cash balances of $42.5 million. Included in the reduction of loans held for investment in the quarter were $16.1 million of out-of-market loans. Total deposits decreased to $2.01 billion from $2.13 billion at the prior quarter end, a decline of $119.2 million. Deposits, excluding wholesale deposits, decreased $76.2 million in the second quarter. Brokered deposit balances declined $43.0 million in the second quarter, as existing brokered time deposits were paid off upon maturity. Sources of liquidity, which consist primarily of on-balance sheet cash, unpledged securities available for sale, and available credit under secured borrowing facilities, totaled $750.0 million, or 183.3% of uninsured deposits as of June 30, 2025. Sources of liquidity as of March 31, 2025, totaled $788.8 million, or 182.9% of uninsured deposits. Income Statement: Net interest income was $19.8 million and $19.0 million for the second and first quarters of 2025, respectively, and $20.1 million for the second quarter of 2024. The decline in the 2025 periods from the 2024 period was primarily attributable to lower interest and fee income on loans due to lower average balances. The decline in interest and fee income was offset by lower average balances and costs of interest-bearing deposit accounts. Average balances of interest-earning assets decreased $94.9 million to $2.53 billion in the second quarter of 2025, relative to the prior quarter, and decreased $360.4 million from the year-ago quarter period. Relative to the prior quarter and the year-ago period, the decrease reflected primarily lower average balances of loans held for investment. The yield on loans held for investment was 5.80% and 5.70% for the second and first quarters of 2025, respectively, and 5.80% for the second quarter of 2024. Average balances of interest-bearing liabilities decreased $79.6 million, to $1.82 billion in the second quarter of 2025, relative to the prior quarter, primarily attributable to the payoff of wholesale deposits ($43.0 million), and decreased $408.3 million from the year-ago quarter period. The second quarter of 2025 decline relative to the same period of 2024 was primarily due to the exit of fintech BaaS deposit operations ($172.5 million) and the payoff of wholesale deposits ($168.3 million) and borrowings ($67.8 million). Cost of funds was 2.63% for the second quarter of 2025, compared to 2.78% for the first quarter of 2025, and 3.02% for the second quarter of 2024, while cost of deposits was 2.47%, 2.62%, and 2.84%, for the same respective periods. The decrease in cost of funds relative to the prior quarter was primarily due to lower average balances of higher cost wholesale funding, and relative to the year-ago period, the exit of fintech BaaS deposit operations. Cost of deposits, excluding wholesale deposits, was 1.01% for the quarter compared to 1.34% for the prior quarter and 2.28% for the year-ago period. Net interest margin was 3.15% for the second quarter of 2025 compared to 2.90% for the prior quarter and 2.79% for the second quarter of 2024. The increases over the respective periods was driven primarily by lower funding costs of time deposits, which include wholesale deposits. A recovery of credit losses of $0.7 million was reported for the second quarter of 2025, compared to no recovery of credit losses in the first quarter of 2025 and a provision for credit losses of $3.1 million for the second quarter of 2024. The second quarter of 2025 recovery resulted from declines in balances of loans held for investment, partially offset by specific reserves and charge-offs for out-of-market loans purchased in prior years. The provision for credit losses in the second quarter of 2024 was related primarily to certain purchased loans and increased reserves for the non-guaranteed portion of government-guaranteed loans, which offset lower reserve needs due to loan portfolio balance reductions. Noninterest income was $3.2 million for the second quarter of 2025, compared to $3.1 million for the first quarter of 2025, and $0.3 million for the second quarter of 2024. The improvement relative to the prior quarter was primarily due to higher service charges on deposit accounts and $0.3 million for the release of the previously noted MSR sale reserve, partially offset by the reduction in the value of the remaining MSR assets. The Bank has earned improved service fee income due to the previously noted products and pricing initiative. Noninterest income for the second quarter of 2024 included an $8.5 million non-cash negative fair value adjustment of an equity investment the Company holds in a fintech company, partially offset by residential mortgage banking income, including servicing income and gains from the sale of loans originated by the now-sold mortgage division. Noninterest expense was $22.0 million for the second quarter of 2025, compared to $23.0 million for the first quarter of 2025, and $29.3 million for the second quarter of 2024. Noninterest expense decreased $1.0 million from the prior quarter and $7.3 million from the year-ago period. The decline relative to the prior quarter was primarily due to the previously noted cash recovery of amounts reserved for in the prior year due to the exit of activities with a former fintech BaaS partner. Salaries and employee benefits expense included severance of $0.3 million and $0.7 million for the second and first quarters of 2025, respectively, as well as $2.0 million and $0 of expense for PSAs for the same respective periods. The decline in noninterest expense in the second quarter of 2025 compared to the same period of 2024 was primarily due to lower salaries and employee benefits, consulting, and regulatory remediation expenses. These reductions reflect a smaller workforce as the Company continues to right-size its operations, completes certain regulatory directives, and transitions to a more traditional community banking model. Balance Sheet: Loans held for investment were $1.98 billion at June 30, 2025, compared to $2.06 billion at March 31, 2025, and $2.26 billion at June 30, 2024. The decline relative to the prior quarter was partially due to payoffs and paydowns of approximately $16.1 million of out-of-market loans. The second quarter of 2025 decline relative to the same period of 2024 was partially attributable to the Company's plan to purposefully and selectively reduce assets to partially meet the liquidity needs of the fintech BaaS depository operations exit, which was completed at the end of 2024, as well as to transition the Company to a more traditional community banking model. Total deposits were $2.01 billion at June 30, 2025, a decrease of $119.2 million and $315.6 million from March 31, 2025 and June 30, 2024, respectively. Excluding wholesale deposits, total deposits decreased $76.2 million from the prior quarter end and $147.2 million from the second quarter of 2024. The Company previously reported that it was prohibited from the acceptance, renewal, or rollover of brokered deposits as a result of the Consent Order; however, the Company received approvals from the FDIC allowing the Bank to accept, renew, or rollover brokered deposits for a six-month period ending June 2025 and limited to the amount of maturities during this period. In June 2025, the Company received an extension for an additional six-month period, through December 2025. Brokered deposits at June 30, 2025 were $296.1 million, a decline of $43.0 million from March 31, 2025, and a decline of $168.3 million from June 30, 2024. The Company had secured brokered deposits to enhance liquidity during the fintech BaaS wind down. Noninterest-bearing deposits represented 21.5%, 21.3%, and 20.2% of total deposits at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 24.6%, 25.2%, and 24.5% of total deposits as of the same respective dates. About Blue Ridge Bankshares, Inc.: Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information. Reclassifications: Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported. Non-GAAP Financial Measures: The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company's financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company's business. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release. Forward-Looking Statements: This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company's beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or phrases of similar meaning. The Company cautions that the forward-looking statements are based largely on its expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation; the impact of, and the ability to comply with, the terms of the January 24, 2024 Consent Order with the OCC, including the heightened capital requirements and other restrictions therein, and other regulatory directives; the imposition of additional regulatory actions or restrictions for noncompliance with the Consent Order or otherwise; the Company's involvement in, and the outcome of, any litigation, legal proceedings, or enforcement actions that may be instituted against the Company; reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners; the Company's ability to manage its fintech relationships, including implementing enhanced controls and procedures, complying with the OCC directives and applicable laws and regulations, and managing the wind down of these partnerships; the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs; the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure; the ability to maintain adequate liquidity by growing and retaining deposits and secondary funding sources, especially if the Company's or its industry's reputation become damaged; the ability to maintain capital levels adequate to support the Company's business and to comply with the Consent Order directives; the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability; the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; changes in consumer spending and savings habits; the willingness of users to substitute competitors' products and services for the Company's products and services; the impact of unanticipated outflows of deposits; technological and social media changes; potential exposure to fraud, negligence, computer theft, and cyber-crime; adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, supervisory and regulatory actions and costs, and related impacts on customer and client behavior; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; the impact of changes in financial services policies, laws, and regulations, including laws, regulations and policies concerning taxes, banking, securities, real estate and insurance, the application thereof by bank regulatory bodies, and the three branches of the federal government; the effect of changes in accounting standards, policies, and practices as may be adopted from time to time; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory counter measures, and the volatility and uncertainty arising therefrom; the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods, and other catastrophic events; and other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in filings the Company makes from time to time with the U.S. Securities and Exchange Commission ("SEC"). The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company's results of operations or financial condition, or cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise. 1 Non-GAAP financial measure. Further information can be found at the end of this press release. View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-2025-second-quarter-results-302512450.html SOURCE Blue Ridge Bankshares, Inc.

Performance reflects improvement in net interest margin and noninterest expense reduction Regulatory remediation efforts remain on track RICHMOND, Va., April 24, 2025 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced financial results for the quarter ended March 31, 2025. For the quarter ended March 31, 2025, the Company reported a net loss of $0.4 million, or $0.01 per diluted common share, compared to a net loss of $2.0 million, or $0.03 per diluted common share, for the quarter ended December 31, 2024, and a net loss of $2.9 million, or $0.15 per diluted common share, for the first quarter of 2024. Net loss for the first quarter of 2025 included after-tax severance costs of $0.5 million and a $0.2 million loss on the sale of the mortgage division. Net loss for the fourth quarter of 2024 included an after-tax loss on the sale of mortgage servicing right assets ("MSRs"), net of the fair value adjustment, of $1.4 million. After-tax regulatory remediation expenses for the first quarter of 2025 were $0, compared to $0.2 million and $2.1 million for the fourth and first quarters of 2024, respectively. A Message From Blue Ridge Bankshares, Inc. President and CEO, G. William "Billy" Beale: "I believe that our first quarter results indicate that our shareholders will soon see a return to sustainable profitability. It has been a short journey involving exiting the fintech banking-as-a-service ("BaaS") indirect deposit business, exiting non-core lending relationships, strengthening our risk management framework, and making significant reductions in staff levels. "Over the last 12 months we have made significant progress toward compliance with the January 2024 Consent Order with our primary regulators. Recently, we received regulatory non-objection to redeem a significant portion of our subordinated debt, which will save over $2 million in interest expense annually. "As we return to community banking, our focus on operational efficiencies is a multi-faceted endeavor. To improve noninterest income, we have aligned our product pricing to the market. We are upgrading our business treasury products to be competitive with product sets offered by other banks. We have aggressively attacked noninterest expenses by reducing the number of employees in the first quarter by 91, a 21% decrease since December 31, 2024. Over the last 12 months, our number of employees has been reduced by nearly 170. The annualized cost saves resulting from the first quarter's reductions are expected to be approximately $6 million, or $1.5 million per quarter. Further, we have reduced our dependency on consultants. Our goal is to achieve an annualized run rate for noninterest expense to assets of less than 3% by the fourth quarter of this year. "Another positive in the first quarter was the improvement in our funding cost, a sequential quarter reduction of 23 basis points, resulting from our 2024 actions to change our funding mix as we exited fintech BaaS and reduced wholesale funding. "We completed our analysis of non-banking business lines resulting in the sale of certain lines of business, most notably Monarch Mortgage. Scale is important for these non-banking lines. We felt we could not achieve the required scale within a reasonable time. "Lastly, our commercial relationship managers and our retail team are focused on growth in core deposits and loans to customers within our footprint. We expect to see positive results in the near-term quarters." Sale of Monarch Mortgage The Company's previously announced sale of its mortgage division operating as Monarch Mortgage to an unrelated third-party mortgage company was completed on March 27, 2025. The sale, which included the transfer of certain assets and leases, resulted in a $0.2 million loss, reported in other noninterest income. The Company has continued to fulfill its obligations to borrowers with respect to loans in process and will manage such loans toward closing and funding in the ordinary course of business. Q1 2025 Highlights(Comparisons for First Quarter 2025 are relative to Fourth Quarter 2024 unless otherwise noted.) Net Income: Net loss for the quarter was $0.4 million, or $0.01 per diluted common share, compared to a net loss of $2.0 million, or $0.03 per diluted common share, for the prior quarter. The current quarter loss before income taxes of $0.9 million included a $0.2 million loss on the mortgage division sale and $0.7 million in severance costs. The prior quarter loss before income taxes of $2.7 million included a $1.8 million loss on the sale of MSRs, net of fair value adjustments, partially offset by a $1.0 million recovery of credit losses. Net Interest Income / Net Interest Margin: Net interest income totaled $19.0 million and $19.1 million for the current and prior quarters, respectively. Interest income decreased by $2.6 million in the first quarter, primarily due to a $67.2 million decline in average loan balances and a $50.4 million decline in average deposits held in other banks. Interest expense declined by $2.4 million, largely driven by lower average balances of higher-cost fintech-related and brokered deposits. Net interest margin improved to 2.90% during the quarter from 2.80% in the prior quarter, reflecting a 24-basis point decline in the cost of deposits. Subsequent to March 31, 2025, the Company provided a notice of redemption to the holder of its $15.0 million fixed-to-floating rate subordinated note (the "Note"), which has an initial redemption date of June 1, 2025. On June 1, 2025, the rate on the Note would reset to the then three-month Secured Overnight Funding Rate (SOFR) plus 587 basis points. Interest expense and the effective interest rate on the Note were $0.2 million and 6.31%, respectively, in the first quarter of 2025. Capital: The ratio of tangible common stockholders' equity to tangible total assets was 12.5%1, compared to 11.9%1 at the prior quarter end. The increase in this ratio was primarily driven by the decline in total tangible assets and additional capital of $6.9 million due to the exercise of warrants to purchase common stock and a $3.8 million decrease in after-tax unrealized losses in the Company's portfolio of securities available for sale. Tangible book value per common share ("TBV") was $3.821 for both the current and prior quarters. At March 31, 2025, the Bank's tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 12.33%, 16.88%, 16.88%, and 17.93%, respectively, compared to 11.80%, 16.38%, 16.38%, and 17.26%, respectively, at the prior quarter end. Capital ratios for the Company at March 31, 2025 for tier 1 leverage ratio, tier 1 risk-based capital ratio, common equity tier 1 capital ratio, and total risk-based capital ratio were 13.23%, 18.06%, 18.06%, and 20.83%, respectively, compared to 12.43%, 17.24%, 17.24%, and 19.79%, respectively, at the prior quarter end. Improvement in capital ratios for the comparative periods was primarily due to a smaller balance sheet relative to capital levels. As of March 31, 2025 and December 31, 2024, the Bank's tier 1 leverage and total risk-based capital ratios exceeded the minimum capital ratios set forth in the Bank's Consent Order with the Office of the Comptroller of the Currency (the "OCC"), which requires the Bank to maintain a minimum tier 1 leverage ratio of 10.00% and a total risk-based capital ratio of 13.00%. Asset Quality: Nonperforming loans, which include nonaccrual loans and loans past due 90 days or more and accruing interest, were $24.9 million, or 0.93% of total assets, at quarter end compared to $25.4 million, or 0.93% of total assets, at the prior quarter end. No provision for credit losses was reported for the quarter compared to a recovery of credit losses of $1.0 million for the prior quarter. Lower allowance for credit losses ("ACL") needs due to loan portfolio balance reductions were offset by higher reserve needs on pooled loans resulting in no provision in the current quarter. The recovery of credit losses in the prior quarter was primarily attributable to lower reserve needs due to loan portfolio balance reductions, partially offset by charge-offs of the non-guaranteed portion of certain government-guaranteed loans ("GGL") and certain purchased loans. The ACL as a percentage of total loans held for investment was 1.12% at quarter end compared to 1.09% at the prior quarter end. Net loan recoveries were $103 thousand in the quarter compared to $1.9 million in net loan charge-offs for the prior quarter. The net loan (recoveries) charge-offs to average loans outstanding ratio (quarter-to-date annualized) for the current quarter was (0.02%) compared to 0.36% for the prior quarter. Noninterest Income / Noninterest Expense: Noninterest income for the quarter was $3.1 million, compared to $2.8 million in the prior quarter. The first quarter of 2025 included a $0.2 million loss on sale of the mortgage division, while the prior quarter included a loss on the sale of MSRs, net of the positive fair value adjustment prior to the sale, of $1.8 million. Excluding these items, noninterest income declined in the current quarter by approximately $1.3 million, due to lower residential mortgage banking income ($0.7 million), which was primarily driven by lower servicing income and mortgage origination volumes, and lower income from fintech lending partnerships ($0.4 million). Noninterest expense for the quarter was $23.0 million compared to $25.6 million in the prior quarter, a decrease of $2.6 million. The decrease was primarily due to lower salaries and employee benefits expenses and consulting and audit fees. The decline in salaries and employee benefits in the quarter reflected a reduction in headcount as the Company continues to right-size its workforce as it completes certain regulatory directives and transitions to a more traditional community banking model. Severance costs for the current and prior quarter were $0.7 million and $0, respectively. Lower consulting and audit fees reflect a reduction in the use of outside contracting services, also due to the completion of certain regulatory directives. Income Tax: The income tax benefit for the current and prior quarter was $0.5 million and $0.7 million, respectively, with an effective income tax rate for the same respective periods of 51.2% and 25.8%. The higher effective income tax rate in the quarter was driven by a $0.3 million favorable adjustment related to a change in the state tax rate applied to the accumulated unrealized loss on the available for sale securities portfolio. Excluding this adjustment, the effective income tax rate for the quarter was 22.7%. Balance Sheet: Total assets decreased to $2.69 billion from $2.74 billion at the prior quarter end, a reduction of $52.2 million, primarily driven by a decline in loans held for investment of the same amount and lower balances of cash and loans held for sale, partially offset by a $13.4 million increase in the securities available for sale. The decline in loans held for investment was partially due to a continuation of the Company purposefully and selectively reducing balances of loans where borrowers did not represent in-market relationships. Total deposit balances decreased to $2.13 billion from $2.18 billion at the prior quarter end, a decline of $50.0 million. Deposits, excluding wholesale and fintech-related deposits, increased $20.4 million in the first quarter of 2025. Brokered deposit balances declined $63.4 million in the first quarter, as existing brokered time deposits were paid off upon maturity. Estimated uninsured deposits as a percentage of total deposits were 19.8% at quarter end compared to 18.0% at the prior quarter end. Sources of liquidity, which consist primarily of on-balance sheet cash, unpledged securities available for sale, and available credit under secured borrowing facilities, totaled $788.8 million, or 182.9% of uninsured deposits as of March 31, 2025. Sources of liquidity as of December 31, 2024 and March 31, 2024 totaled $811.7 million and $538.1 million, or 203.3% and 97.17% of uninsured deposits, respectively. Income Statement: Net interest income was $19.0 million and $19.1 million for the first quarter of 2025 and the fourth quarter of 2024, respectively, compared to $20.3 million for the first quarter of 2024. The decline in the first quarter of 2025 and fourth quarter of 2024 compared to the first quarter of 2024 was primarily attributable to lower interest and fee income on loans due to lower average balances. This decline was partially offset by lower average balances and rates paid on interest-bearing demand accounts and lower average balances of wholesale funding. The majority of fintech BaaS deposits were in interest-bearing demand accounts. Average balances of interest-earning assets decreased $116.1 million to $2.62 billion in the first quarter of 2025, relative to the prior quarter, and decreased $345.8 million from the year-ago period. Relative to the prior quarter and the year-ago period, the decrease reflected primarily lower average balances of loans held for investment. The yield on average loans held for investment was 5.70% and 5.83% for the first quarter of 2025 and fourth quarter of 2024, respectively, compared to 6.02% for the first quarter of 2024. These declines in loan yield arose primarily from the purposeful and selective reduction of loans where borrowers did not represent in-market relationships. Average balances of interest-bearing liabilities decreased $122.5 million, to $1.90 billion in the first quarter of 2025, relative to the prior quarter, and decreased $512.4 million from the year-ago quarter period. The decline relative to the comparative periods was primarily due to the exit of fintech BaaS deposit operations and the payoff of wholesale funding. Cost of funds was 2.78% for the first quarter of 2025, compared to 3.01% for the fourth quarter of 2024, and 3.03% for the first quarter of 2024, while cost of deposits was 2.62%, 2.86%, and 2.84%, for the same respective periods. Lower cost of funds in the first quarter of 2025 was primarily due to the exit of fintech BaaS deposit operations and lower average balances of wholesale funding, and relative to the year-ago period, offset by the higher variable cost of $25.0 million of the Company's subordinated debt. Cost of deposits, excluding wholesale deposits, was 1.34% for the quarter compared to 1.55% for the prior quarter and 2.52% for the year-ago period. The first quarter's declines from the comparative periods were primarily due to lower average balances of higher cost fintech-related deposits. Net interest margin was 2.90% for the first quarter of 2025 compared to 2.80% for the prior quarter and 2.75% in the first quarter of 2024, driven primarily by lower funding costs. No provision for credit losses was reported for the first quarter of 2025 compared to a recovery of credit losses of $1.0 million for both the fourth and first quarters of 2024. The recovery of credit losses in the fourth quarter of 2024 reflected lower reserve needs due to loan portfolio balance reductions, partially offset by charge-offs of the non-guaranteed portion of certain GGL and certain purchased loans, whereas the recovery of credit losses in the first quarter of 2024 was primarily attributable to lower unfunded loan commitments. Noninterest income was $3.1 million for the first quarter of 2025, compared to $2.8 million for the fourth quarter of 2024, and $7.8 million for the first quarter of 2024. The first quarter of 2025 included a loss on the sale of the Company's mortgage division of $0.2 million, while the fourth quarter of 2024 included a loss on the sale of MSRs of $2.6 million and a fair value adjustment on MSRs before their sale of a positive $0.8 million. Excluding these items, noninterest income in the first quarter of 2025 was $1.3 million lower than the fourth quarter of 2024. This decline was primarily due to lower residential mortgage banking income, driven by lower servicing income and lower mortgage origination volumes. The decline in noninterest income for the first quarter of 2025 relative to the year-ago period was primarily attributable to declines in residential mortgage banking income and other noninterest income of $1.7 million and $2.2 million, respectively. Other noninterest income includes earnings from fintech lending partnerships, which contributed $0.2 million, $0.7 million, and $1.4 million of noninterest income in the first quarter of 2025 and fourth and first quarters of 2024, respectively. Noninterest expense was $23.0 million for the first quarter of 2025, compared to $25.6 million for the fourth quarter of 2024, and $32.4 million for the first quarter of 2024. Noninterest expense decreased $2.7 million from the prior quarter and $9.5 million from the year-ago period. The decline relative to the prior period was primarily due to lower expenses for salaries and employee benefits, other contractual services, and audit fees, while the decline relative to the year-ago period was due to lower salaries and employee benefits, and a reduction in other contractual services and regulation remediation expenses. The decline in salaries and employee benefits in the current quarter reflected a reduction in headcount as the Company works to right-size staffing as it completes certain regulatory directives, and transitions to a more traditional community banking model. Severance costs for the current and prior quarter were $0.7 million and $0, respectively. The decrease in other contractual services and audit fees reflects a reduction in the use of outside consulting services. Balance Sheet: Loans held for investment were $2.06 billion at March 31, 2025, compared to $2.11 billion at December 31, 2024, and $2.39 billion at March 31, 2024. These declines were attributable to the Company's plan to purposefully and selectively reduce assets to partially meet the liquidity needs of the fintech BaaS depository operations exit, as well as to transition the Company to a more traditional community banking model. Total deposits were $2.13 billion at March 31, 2025, a decrease of $50.0 million and $336.3 million for the quarter and the year-to-date periods, respectively. Fintech-related deposits declined $7.0 million in the first quarter of 2025. Excluding fintech-related and brokered deposits, total deposits increased $20.4 million from the prior quarter end and $128.0 million from the first quarter of 2024. The Company previously reported that it was prohibited from the acceptance, renewal, or rollover of brokered deposits, as a result of the Consent Order. In early third quarter of 2024, the Bank received approval from the FDIC allowing the Bank to accept, renew, or rollover brokered deposits for a six-month period of time and in the amount of maturities during this period. In late fourth quarter of 2024, the Bank received a six-month extension of this approval. Brokered deposits at March 31, 2025 were $339.1 million, a decline of $63.4 million from December 31, 2024, and a decline of $174.8 million from March 31, 2024. The Company had secured brokered deposits to enhance liquidity during the fintech BaaS wind down. Noninterest-bearing deposits represented 21.3%, 20.8%, and 20.1% of total deposits at March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 25.2%, 24.4%, and 24.7% of total deposits as of the same respective dates. The held for investment loan-to-deposit ratio was 96.7% at March 31, 2025, compared to 96.9% at December 31, 2024, and 97.1% at March 31,2024. About Blue Ridge Bankshares, Inc.: Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information. Reclassifications: Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported. Non-GAAP Financial Measures: The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company's financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company's business. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release. Forward-Looking Statements: This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company's beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words or phrases of similar meaning. The Company cautions that the forward-looking statements are based largely on its expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements. The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements: the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates and inflation; the impact of, and the ability to comply with, the terms of the January 24, 2024 Consent Order with the OCC, including the heightened capital requirements and other restrictions therein, and other regulatory directives; the imposition of additional regulatory actions or restrictions for noncompliance with the Consent Order or otherwise; the Company's involvement in, and the outcome of, any litigation, legal proceedings, or enforcement actions that may be instituted against the Company; reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners; the Company's ability to manage its fintech relationships, including implementing enhanced controls and procedures, complying with the OCC directives and applicable laws and regulations, and managing the wind down of these partnerships; the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs; the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure; the ability to maintain adequate liquidity by growing and retaining deposits and secondary funding sources, especially if the Company's or its industry's reputation become damaged; the ability to maintain capital levels adequate to support the Company's business and to comply with the Consent Order directives; the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability; the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; changes in consumer spending and savings habits; the willingness of users to substitute competitors' products and services for the Company's products and services; the impact of unanticipated outflows of deposits; technological and social media changes; potential exposure to fraud, negligence, computer theft, and cyber-crime; adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, supervisory and regulatory actions and costs, and related impacts on customer and client behavior; changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products; the impact of changes in financial services policies, laws, and regulations, including laws, regulations and policies concerning taxes, banking, securities, real estate and insurance, the application thereof by bank regulatory bodies, and the three branches of the federal government; the effect of changes in accounting standards, policies, and practices as may be adopted from time to time; estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory counter measures, and the volatility and uncertainty arising therefrom; the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods, and other catastrophic events; and other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and in filings the Company makes from time to time with the U.S. Securities and Exchange Commission ("SEC"). The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company's results of operations or financial condition, or cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise. 1 Non-GAAP financial measure. Further information can be found at the end of this press release.         View original content to download multimedia:https://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-2025-first-quarter-results-302437839.html SOURCE Blue Ridge Bankshares, Inc.