Blue Ridge Bankshares reports Q2 net income of $1.3mln, up from net loss.

• Blue Ridge Bankshares reported Q2 2025 net income of $1.3 million. • Compared to Q1 2025 net loss of $0.4 million and Q2 2024 net loss of $11.4 million. • Diluted earnings per share of $0.01 in Q2 2025. • Continued progress on regulatory remediation efforts.

Blue Ridge Bankshares Inc. (NYSE American: BRBS) reported a net income of $1.3 million for the second quarter of 2025, marking a significant turnaround from the previous quarter's net loss of $0.4 million and a substantial net loss of $11.4 million in the same period last year. This quarterly profit is a welcome sign of recovery for the bank, which has been working to improve its financial health and regulatory compliance.

The company's net interest margin improved to 3.15% in Q2 2025, up from 2.90% in the previous quarter, primarily driven by lower deposit costs. This improvement in net interest margin is a key factor in the bank's return to profitability. Additionally, the company has been actively managing its balance sheet, which contracted to $2.56 billion from $2.69 billion in the previous quarter. This strategic reduction includes a deliberate runoff of non-core loans and deposits.

On the expense front, Blue Ridge Bankshares reduced noninterest expenses by almost $1.0 million from Q1 2025, with headcount down by 109 positions in the first half of 2025 and 170 since Q2 2024. This represents meaningful progress toward the company's goal of achieving an annualized noninterest expense-to-assets ratio below 3% by the end of 2025.

The bank has also strengthened its capital position, with the tangible common stockholders' equity to tangible total assets ratio improving to 13.4% from 12.5% in the previous quarter. The Bank's tier 1 leverage ratio stood at 12.89%, well above the 10.00% minimum required by its Consent Order with the OCC.

Asset quality remains stable with nonperforming loans at 0.94% of total assets, and the allowance for credit losses as a percentage of total loans held for investment was 1.11%, essentially unchanged from the previous quarter.

Importantly, the company has made substantial progress on regulatory remediation related to the January 2024 consent order, allowing it to shift focus toward growth as a community bank. This shift is reflected in the bank's leadership's characterization of transforming from a team of "fixers" to "growers."

The liquidity position remains strong with $750 million in available liquidity, representing 183.3% of uninsured deposits. This healthy liquidity buffer provides stability as the bank navigates its transition phase.

Blue Ridge Bankshares has turned a corner with its $1.3 million Q2 2025 net income, compared to a net loss of $0.4 million in Q1 2025 and a substantial $11.4 million loss in Q2 2024. This marks the company's return to profitability for the first half of 2025 with $0.9 million in net income.

References:
[1] https://www.stocktitan.net/news/BRBS/blue-ridge-bankshares-inc-announces-2025-second-quarter-5td54m1sv6ho.html
[2] https://www.tradingview.com/news/reuters.com,2025-07-23:newsml_PLX5781C2:0-brief-blue-ridge-bankshares-q2-net-income-usd-1-296-million/
[3] https://www.prnewswire.com/news-releases/blue-ridge-bankshares-inc-announces-2025-second-quarter-results-302512450.html