Core Viewpoint - Blue Ridge Bankshares, Inc. (BRBS) has returned to profitability in Q2 2025, reporting a net income of $1.3 million, marking a significant recovery from a net loss of $11.4 million in the same quarter last year [2][8]. Financial Performance - BRBS reported a net income of $1.3 million, or $0.01 per diluted share, compared to a net loss of $11.4 million, or ($0.47) per share, in the prior-year period [2]. - Net interest income was $19.8 million, relatively flat compared to $20.1 million in Q2 2024, with a recovery of credit losses of $0.7 million against a provision of $3.1 million in the previous year [3]. - Non-interest income surged to $3.2 million from $0.3 million in the prior year's quarter, driven by improved service charges and previously withheld mortgage servicing rights proceeds [4]. - Non-interest expenses decreased by 24.9% to $22 million from $29.3 million a year earlier, aided by cost-cutting measures [4]. Key Business Metrics - Net interest margin improved to 3.15% from 2.90% in Q1 2025 and 2.79% a year ago, primarily due to a decrease in deposit costs [5]. - Total assets decreased to $2.56 billion from $2.69 billion in Q1 2025 and $2.93 billion a year earlier [6]. - Loans held for investment declined 12.4% year over year to $1.98 billion, while deposits were down 13.6% year over year to $2.01 billion [6]. Management Commentary - CEO G. William "Billy" Beale described the quarter as a turning point, highlighting improvements in net interest margin and disciplined cost management as key factors [8]. - The company has undergone headcount reductions, with 109 positions cut in the first half of the year, as part of efforts to streamline operations [8]. Future Outlook - Management expects to achieve an annualized non-interest expense-to-assets ratio below 3% by Q4 2025, with a focus on operational improvement and further cost reductions [11]. - The company believes it is nearing completion of regulatory remediation stemming from a January 2024 consent order [12]. Strategic Developments - On March 27, 2025, BRBS completed the divestiture of Monarch Mortgage, resulting in a $0.2 million loss year to date, as part of a strategy to realign its business model towards traditional community banking [13]. - The company redeemed $15 million in subordinated debt and partially redeemed an additional $10 million of its 2029 Notes, actions aimed at supporting future interest expense reductions [14].

```markdown [Overview](index=1&type=section&id=Blue%20Ridge%20Bankshares%2C%20Inc.%20Announces%202025%20Second%20Quarter%20Results) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company returned to profitability in Q2 2025, reporting net income of $1.3 million, a significant improvement from the net loss in the previous quarter and the same quarter last year. For the first half of 2025, the company reported net income of $0.9 million, reversing a substantial loss from the first half of 2024 Quarterly Financial Performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income (Loss) | $1.3 million | ($0.4 million) | ($11.4 million) | | Diluted EPS | $0.01 | ($0.01) | ($0.47) | First Half Financial Performance | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | | Net Income (Loss) | $0.9 million | ($14.3 million) | | Diluted EPS | $0.01 | ($0.66) | [Message from the CEO](index=1&type=section&id=A%20Message%20From%20Blue%20Ridge%20Bankshares%2C%20Inc.%20President%20and%20CEO%2C%20G.%20William%20%27Billy%27%20Beale) CEO G. William "Billy" Beale highlighted the company's return to profitability as a sign of future sustainable earnings. Key positive trends include a growing net interest margin (3.15%) due to lower deposit costs, improved noninterest income, and significant reductions in noninterest expenses through headcount cuts. The focus is now shifting from regulatory remediation to community bank growth - The company's net interest margin grew to **3.15%** for the quarter, primarily driven by lower deposit costs[6](index=6&type=chunk) - Noninterest expense was reduced by almost **$1.0 million** from the first quarter, with an expectation of further reductions as the company nears completion of regulatory remediation activities[7](index=7&type=chunk) - Headcount was reduced by **109** in the first half of 2025 and by **170** since the end of Q2 2024, contributing to expense savings[7](index=7&type=chunk) - The company is shifting its focus from remediation activities ('fixers') to growing its community bank ('growers')[8](index=8&type=chunk)[9](index=9&type=chunk) [Sale of Monarch Mortgage](index=2&type=section&id=Sale%20of%20Monarch%20Mortgage) The company completed the sale of its Monarch Mortgage division on March 27, 2025. The transaction resulted in a minor loss of $0.2 million, and all related loan activities were concluded by the end of Q2 2025 - The sale of the Monarch Mortgage division was completed on **March 27, 2025**[9](index=9&type=chunk) - The sale resulted in a **$0.2 million loss**, which was reported in other noninterest income for the year-to-date 2025 period[9](index=9&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) [Q2 2025 Key Metrics Analysis](index=2&type=section&id=Q2%202025%20Highlights) The company's Q2 2025 performance showed significant improvement across key metrics. Net income turned positive, driven by a 25 basis point expansion in net interest margin to 3.15% and a $1.0 million reduction in noninterest expenses. Capital ratios strengthened, exceeding regulatory requirements, and asset quality remained stable with a slight decrease in nonperforming loans [Net Income](index=2&type=section&id=Net%20Income) The company reported net income of $1.3 million in Q2 2025, a turnaround from a $0.4 million loss in Q1 2025. The quarter's results were influenced by $0.3 million in severance costs and a $1.3 million benefit from a recovery related to a former fintech BaaS partner Net Income and Special Items (QoQ) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | **Net Income (Loss)** | **$1.3M** | **($0.4M)** | | Severance Costs | $0.3M | $0.7M | | BaaS Partner Recovery | $1.3M | - | | Mortgage Division Sale Loss | - | $0.2M | [Net Interest Income and Net Interest Margin (NIM)](index=2&type=section&id=Net%20Interest%20Income%20%2F%20Net%20Interest%20Margin) Net interest income increased to $19.8 million from $19.0 million in the prior quarter. The net interest margin improved significantly to 3.15% from 2.90%, primarily due to a 19 basis point reduction in the cost of interest-bearing deposits. The company also redeemed $15.0 million of subordinated notes Net Interest Income & Margin (QoQ) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Interest Income | $19.8M | $19.0M | | Net Interest Margin | 3.15% | 2.90% | - The improvement in NIM was primarily driven by a decline in the cost of deposits, which fell by **19 basis points** from the prior quarter[11](index=11&type=chunk) - The company redeemed its **$15.0 million, 6.0% fixed-to-floating rate subordinated note** on **June 1, 2025**[11](index=11&type=chunk) - A partial redemption of **$10.0 million** of the 2029 subordinated notes was completed on **July 15, 2025**[12](index=12&type=chunk) [Capital](index=3&type=section&id=Capital) Capital ratios improved quarter-over-quarter, with the Bank's tier 1 leverage ratio increasing to 12.89% and the total risk-based capital ratio rising to 18.91%. These levels comfortably exceed the minimums required by the OCC Consent Order. The tangible common equity to tangible total assets ratio also increased to 13.4% Bank Capital Ratios (June 30, 2025 vs March 31, 2025) | Ratio | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Tier 1 Leverage Ratio | 12.89% | 12.33% | | Tier 1 Risk-Based Capital | 17.86% | 16.88% | | Total Risk-Based Capital | 18.91% | 17.93% | - The Bank's capital ratios exceeded the OCC Consent Order minimums of **10.00% for tier 1 leverage** and **13.00% for total risk-based capital**[15](index=15&type=chunk) - The ratio of tangible common stockholders' equity to tangible total assets increased to **13.4%** from **12.5%** at the prior quarter end[15](index=15&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality remained stable, with nonperforming loans decreasing slightly to $24.0 million, or 0.94% of total assets. The company reported a recovery of credit losses of $0.7 million, driven by loan portfolio reductions. Net loan charge-offs were minimal at $0.5 million for the quarter Asset Quality Metrics (QoQ) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Nonperforming Loans | $24.0M (0.94% of assets) | $24.9M (0.93% of assets) | | (Recovery) of Credit Losses | ($0.7M) | $0 | | ACL to Total Loans | 1.11% | 1.12% | | Net Loan Charge-offs | $0.5M | ($0.1M) | [Noninterest Income and Expense](index=4&type=section&id=Noninterest%20Income%20%2F%20Noninterest%20Expense) Noninterest income was stable at $3.2 million, supported by higher service charges on deposit accounts. Noninterest expense decreased by $1.0 million to $22.0 million, mainly due to a recovery related to a former fintech partner, which offset severance costs and new PSA expenses. Headcount was reduced from 351 to 333 during the quarter - Noninterest income was **$3.2 million**, up slightly from **$3.1 million** in Q1, primarily due to higher service charges on deposit accounts[19](index=19&type=chunk) - Noninterest expense decreased by **$1.0 million** to **$22.0 million** compared to Q1 2025. This was mainly due to a recovery of non-credit-related amounts from a former fintech BaaS partner[19](index=19&type=chunk) - Salaries and benefits expense was **$13.0 million**, which included **$0.3 million in severance** and **$2.0 million in PSA expense**. Excluding these items, the underlying expense declined by **$1.2 million** due to headcount reductions from **351 to 333**[19](index=19&type=chunk) [Income Tax](index=4&type=section&id=Income%20Tax) The company recorded an income tax expense of $0.5 million in Q2 2025, corresponding to an effective tax rate of 27.0%. This is a normalization from the 51.2% effective tax rate in Q1 2025, which was skewed by a favorable adjustment related to state tax rates Income Tax (QoQ) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Income Tax Expense (Benefit) | $0.5M | ($0.5M) | | Effective Tax Rate | 27.0% | 51.2% | - The higher effective tax rate in Q1 2025 was driven by a **$0.3 million favorable adjustment** related to a change in state tax rates[18](index=18&type=chunk) [Income Statement Analysis (YTD and YoY)](index=5&type=section&id=Income%20Statement) For the first six months of 2025, the company achieved net income of $0.9 million, a stark contrast to the $14.3 million loss in the first half of 2024. The improvement was driven by a significant reduction in noninterest expenses, particularly in salaries, consulting, and regulatory remediation, and a recovery of credit losses, which more than offset lower net interest income and noninterest income compared to the prior year - Net interest income for Q2 2025 was **$19.8 million**, down slightly from **$20.1 million** in Q2 2024, due to lower average loan balances[21](index=21&type=chunk) - Noninterest income for Q2 2025 was **$3.2 million**, a significant improvement from **$0.3 million** in Q2 2024. The prior-year period included an **$8.5 million non-cash negative fair value adjustment** on a fintech equity investment[28](index=28&type=chunk) - Noninterest expense for Q2 2025 decreased by **$7.3 million** to **$22.0 million** compared to Q2 2024, reflecting a smaller workforce, completion of regulatory directives, and the transition to a community banking model[29](index=29&type=chunk) - A recovery of credit losses of **$0.7 million** was reported for Q2 2025, compared to a provision of **$3.1 million** in Q2 2024[27](index=27&type=chunk) [Balance Sheet Analysis](index=5&type=section&id=Balance%20Sheet) The company continued to shrink its balance sheet in Q2 2025, with total assets decreasing by $129.6 million to $2.56 billion. This was driven by planned reductions in loans and deposits as the company exits non-core activities. Total deposits fell by $119.2 million to $2.01 billion, including a $43.0 million decline in brokered deposits. Liquidity remains strong, with available sources covering 183.3% of uninsured deposits Key Balance Sheet Items (QoQ) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Assets | $2.56 billion | $2.69 billion | | Loans Held for Investment | $1.98 billion | $2.06 billion | | Total Deposits | $2.01 billion | $2.13 billion | - Liquidity sources totaled **$750.0 million**, representing **183.3%** of uninsured deposits as of June 30, 2025[25](index=25&type=chunk) - Brokered deposits declined by **$43.0 million** during the quarter to **$296.1 million**. The company received an extension from the FDIC to accept, renew, or rollover brokered deposits through **December 2025**[33](index=33&type=chunk) [Financial Statements and Other Information](index=7&type=section&id=Financial%20Statements%20and%20Other%20Information) [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) This section provides the detailed unaudited consolidated financial statements for Blue Ridge Bankshares, Inc. as of June 30, 2025. It includes the Consolidated Balance Sheets, Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024, a summary of selected quarterly financial data, and a reconciliation of non-GAAP measures - Presents the Consolidated Balance Sheets as of **June 30, 2025**, and **December 31, 2024**[45](index=45&type=chunk) - Presents the Consolidated Statements of Income for the three and six months ended **June 30, 2025**, and **June 30, 2024**[46](index=46&type=chunk)[47](index=47&type=chunk) - Provides a Quarter Summary of Selected Financial Data for the last five quarters and a Reconciliation of Non-GAAP Financial Measures[48](index=48&type=chunk)[49](index=49&type=chunk) [Forward-Looking Statements and Risk Factors](index=8&type=section&id=Forward-Looking%20Statements) The company provides a standard safe harbor statement, cautioning that forward-looking statements are subject to numerous risks and uncertainties. Key risks highlighted include the macroeconomic environment, the ability to comply with the OCC Consent Order, managing fintech relationships, credit quality of the loan portfolio, and maintaining adequate liquidity and capital - The company's performance is subject to risks from the US economy, interest rates, and inflation[40](index=40&type=chunk) - A primary risk is the ability to comply with the **January 24, 2024 Consent Order** with the OCC, including its heightened capital requirements and other restrictions[40](index=40&type=chunk) - Other significant risks include managing the wind-down of fintech partnerships, the credit quality of the loan portfolio, and maintaining adequate liquidity[41](index=41&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures such as tangible book value per common share and the ratio of tangible common equity to tangible total assets to supplement GAAP-based evaluation. Management believes these provide useful information for understanding the company's financial condition. A reconciliation of GAAP to non-GAAP measures is provided at the end of the release - Management uses 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 its evaluation[37](index=37&type=chunk) - These non-GAAP disclosures are not a substitute for GAAP and may not be comparable to measures presented by other companies[38](index=38&type=chunk) - Reconciliations of GAAP to non-GAAP measures are included at the end of the press release[38](index=38&type=chunk)[49](index=49&type=chunk) ```

Reports net income for the quarter and continued progress on regulatory remediation effortsRICHMOND, 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 comm ...

Zacks Investment Research has recently initiated coverage of Blue Ridge Bankshares, Inc. (BRBS) , assigning an "Outperform" recommendation to the company's shares. This bullish stance reflects the company's entry into a pivotal phase in its recovery and disciplined cost actions.Blue Ridge Bankshares, headquartered in Richmond, VA, is a bank holding company offering commercial and consumer banking, mortgage lending, investment, trust and insurance-related services via its main subsidiary, Blue Ridge Bank, Na ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) For the transition period from ___________ to ___________ Commission File Number: 001-39165 BLUE RIDGE BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 54-18 ...

Financial Performance - For Q1 2025, the company reported a net loss of $0.4 million, or $0.01 per diluted common share, an improvement from a net loss of $2.0 million in Q4 2024 and $2.9 million in Q1 2024[4]. - Total interest income for Q1 2025 was $35,350,000, a decrease of 6.8% from $37,932,000 in Q4 2024 and a decrease of 16.7% from $42,531,000 in Q1 2024[46]. - Net interest income after recovery of credit losses for Q1 2025 was $18,990,000, down 5.6% from $20,125,000 in Q4 2024 and down 11.1% from $21,349,000 in Q1 2024[46]. - Noninterest income for Q1 2025 was $3.1 million, a decrease of $1.3 million compared to Q4 2024, primarily due to lower residential mortgage banking income[30]. - The net loss for Q1 2025 was $434,000, an improvement from a net loss of $2,003,000 in Q4 2024 and a net loss of $2,893,000 in Q1 2024[46]. - The efficiency ratio for Q1 2025 was 104.0%, an improvement from 116.9% in Q4 2024[47]. - The return on average assets for Q1 2025 was -0.06%, an improvement from -0.28% in Q4 2024[47]. Asset and Deposit Management - Total assets decreased to $2.69 billion from $2.74 billion, primarily due to a decline in loans held for investment[20]. - Total assets decreased to $2,685,084,000 as of March 31, 2025, from $2,737,260,000 as of December 31, 2024[47]. - Loans held for investment were $2.06 billion as of March 31, 2025, down from $2.11 billion at December 31, 2024, reflecting a strategic reduction in assets[32]. - Total deposits decreased to $2.13 billion at March 31, 2025, a decline of $50.0 million from the previous quarter and $336.3 million year-over-year[33]. - Brokered deposits were $339.1 million at March 31, 2025, down $63.4 million from December 31, 2024, and down $174.8 million from March 31, 2024[34]. - Noninterest-bearing deposits represented 21.3% of total deposits as of March 31, 2025, compared to 20.8% at December 31, 2024[35]. - The loan-to-deposit ratio was 96.7% at March 31, 2025, slightly down from 96.9% at December 31, 2024[35]. Cost Management and Workforce Reduction - The company reduced its workforce by 91 employees, a 21% decrease since December 31, 2024, resulting in expected annualized cost savings of approximately $6 million[7]. - Noninterest expense decreased to $23.0 million in Q1 2025, down $2.7 million from Q4 2024 and $9.5 million from Q1 2024, mainly due to reduced salaries and employee benefits[31]. - Total noninterest expense for Q1 2025 was $22,951,000, a decrease of 10.5% from $25,640,000 in Q4 2024 and a decrease of 29.3% from $32,437,000 in Q1 2024[47]. Capital and Equity - The tier 1 leverage ratio improved to 12.33% and total risk-based capital ratio to 17.93% as of March 31, 2025, exceeding minimum capital requirements[16]. - Total stockholders' equity increased to $338,289,000 as of March 31, 2025, up from $327,788,000 as of December 31, 2024, representing a growth of 0.15%[48]. - Common stockholders' equity increased to $338,289,000 as of March 31, 2025, compared to $327,788,000 as of December 31, 2024, marking a growth of 3.4%[48]. - Tangible common equity (Non-GAAP) reached $335,549,000 for the three months ended March 31, 2025, compared to $324,790,000 for the previous quarter, reflecting a 3.3% increase[48]. - Tangible common equity to tangible total assets (Non-GAAP) improved to 12.5% as of March 31, 2025, up from 11.9% in the previous quarter[48]. Strategic Changes and Future Outlook - The company is transitioning to a more traditional community banking model, which includes a reduction in headcount and expenses related to regulatory compliance[31]. - The company anticipates ongoing challenges due to regulatory compliance and the wind down of fintech partnerships, which may impact future performance[40]. - The company expects to see positive results in core deposits and loans growth in the near-term quarters[9].

Core Points - The company reported a net loss of $0.4 million for Q1 2025, an improvement from a net loss of $2.0 million in Q4 2024 and $2.9 million in Q1 2024 [2][8][38] - Regulatory remediation efforts are progressing well, with no regulatory remediation expenses reported for Q1 2025, compared to $0.2 million and $2.1 million in the previous quarters [2][4][23] - The company is transitioning back to community banking, focusing on operational efficiencies and reducing staff by 21% since December 31, 2024, which is expected to save approximately $6 million annually [5][8][23] Financial Performance - Net interest income for Q1 2025 was $19.0 million, slightly down from $19.1 million in Q4 2024, primarily due to a decline in average loan balances [11][16][40] - The net interest margin improved to 2.90% in Q1 2025 from 2.80% in Q4 2024, driven by a reduction in funding costs [20][40] - Noninterest income increased to $3.1 million in Q1 2025 from $2.8 million in Q4 2024, despite a loss of $0.2 million on the sale of the mortgage division [22][24][40] Balance Sheet Highlights - Total assets decreased to $2.69 billion at the end of Q1 2025, down from $2.74 billion at the end of Q4 2024, mainly due to a decline in loans held for investment [26][27][40] - Total deposits were $2.13 billion, a decrease of $50 million from the previous quarter, with a notable decline in fintech-related deposits [27][28][40] - The company's tangible common equity to tangible total assets ratio improved to 12.5% from 11.9% in the prior quarter, reflecting a decline in total tangible assets [11][40] Capital and Liquidity - The company received regulatory non-objection to redeem a significant portion of its subordinated debt, which is expected to save over $2 million in annual interest expenses [4][5] - As of March 31, 2025, the bank's capital ratios exceeded the minimum requirements set forth in the Consent Order, indicating improved capital adequacy [11][40] - Sources of liquidity totaled $788.8 million, representing 182.9% of uninsured deposits, indicating a strong liquidity position [24][40]

Core Viewpoint - Blue Ridge Bankshares, Inc. has announced the sale of certain assets of its mortgage division, Monarch Mortgage, to an unrelated third-party mortgage company, as part of a strategic refocus on community banking [1][3]. Group 1: Transaction Details - Blue Ridge Bank has entered into a definitive asset purchase and sale agreement to sell assets of Monarch Mortgage, which provides mortgage banking services primarily for the secondary market [1]. - The transaction is expected to close by the end of the first quarter, pending customary closing conditions [1]. - Blue Ridge Bank will continue to manage loans in process and fulfill obligations to prospective borrowers during the transition [2]. Group 2: Strategic Rationale - The decision to exit the mortgage banking division aligns with the company's strategy to concentrate on community banking within its primary geographical footprint [3]. - The current interest rate environment necessitated additional investment in the mortgage banking line, which is not aligned with the company's near-term focus on profitability [3]. Group 3: Company Overview - Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc., offering a range of financial services including retail and commercial banking, investment and wealth management, and trust administration [4].

Financial Position - As of December 31, 2024, the Company had total assets of approximately $2.74 billion, total gross loans of approximately $2.11 billion, total deposits of approximately $2.18 billion, and stockholders' equity of approximately $327.8 million[16]. - The Company completed a merger with Bay Banks of Virginia, Inc., adding $1.22 billion in assets and $1.03 billion in deposits, expanding its operating footprint[21]. - As of December 31, 2024, the Bank's common equity Tier 1 capital ratio was 17.26%, exceeding the well-capitalized threshold[61]. - The Bank's Tier 1 capital to risk-weighted assets ratio was 16.38%, while the Company's was 17.24% as of December 31, 2024[61]. - The Bank's Tier 1 leverage ratio was 11.80%, exceeding the minimum requirement of 10.00%[62]. - The Company recorded expenses of $5.5 million and $5.1 million for FDIC insurance premiums in the years ended December 31, 2024 and 2023, respectively[55]. Capital Management - In the second quarter of 2024, the Company closed private placements for gross proceeds of $161.6 million, with net capital proceeds totaling $152.1 million after issuance costs[17][18]. - The Company intends to use the capital from the Private Placements to support organic growth and enhance capital levels, ensuring compliance with minimum capital ratios set by the OCC[19]. - The Bank is required to maintain a Tier 1 leverage ratio of 10.00% and a total capital ratio of 13.00%, which it met as of December 31, 2024[62]. - The Federal Reserve requires banks to maintain a capital conservation buffer of 2.50% above the minimum capital ratios[58]. - The Company is unlikely to resume dividend payments in the foreseeable future due to restrictions from the Consent Order and the need for written non-objection from the OCC[64]. Regulatory Compliance - The Bank is subject to a Consent Order requiring remediation of BSA/AML deficiencies and enhanced oversight of third-party partnerships[45]. - The Company is subject to extensive federal and state consumer protection laws, which mandate compliance to avoid penalties and potential regulatory approval issues for mergers or acquisitions[77]. - Compliance with anti-money laundering laws is costly and requires the Company to maintain robust policies and procedures to detect and report potential money laundering activities[83]. - The Company must adhere to the Office of Foreign Assets Control regulations, which involve blocking transactions with prohibited parties and reporting blocked transactions[84]. - The Dodd-Frank Act requires bank holding companies to act as a source of financial strength for their subsidiary banks, even during financial difficulties[71]. - The Company must inform and consult with the Federal Reserve before declaring dividends that exceed current operating earnings, which could adversely affect its capital structure[63]. Business Operations - The Company offers a variety of financial services, including retail and commercial banking, mortgage banking, and wealth management, contributing to its diverse revenue streams[12][14]. - The Company’s primary source of revenue is interest income from lending activities, supplemented by fees from various banking services[14]. - The Company has partnerships with fintech providers for indirect lending services, with active partnerships as of December 31, 2024, including Upgrade, Inc. and Best Egg, Inc.[15]. - The Company predominantly originates compliant qualified mortgages, which are entitled to a presumption of meeting ability-to-repay requirements[91]. - The Company operates twenty-seven full-service banking offices across Virginia and central North Carolina as of December 31, 2024[11]. Community Engagement - In 2024, the Company committed approximately $279 thousand in financial donations to community organizations[40]. - The Bank was rated "satisfactory" in its most recent Community Reinvestment Act evaluation, which assesses its record in meeting the credit needs of the communities served[80]. - The revised CRA regulations, effective January 1, 2026, will alter the assessment methodology and may make it more challenging for the Bank to achieve at least a "satisfactory" rating[81]. Cybersecurity and Data Protection - The Company must notify regulators of significant cybersecurity incidents within 36 hours of discovery[93]. - The Company faces ongoing cybersecurity threats due to the increasing use of internet and mobile banking[95]. - The Company must implement additional safeguards for information security as per the amended GLB Act's Safeguards Rule[94]. - The CFPB's new rule requires financial services providers to make certain data available to consumers upon request starting April 1, 2028[86]. Future Outlook and Challenges - Future legislation and regulation may significantly impact the regulatory structure under which the Company and the Bank operate[96]. - Changes in legislation could increase costs and impede the efficiency of internal business processes[96]. - Regulatory changes may require an increase in regulatory capital for the Company and the Bank[96]. - Modifications to business strategy may be necessary due to changes in statutes or regulations[96]. - The Company and the Bank's ability to pursue business opportunities efficiently may be limited by regulatory changes[96]. - A material adverse effect on the business, financial condition, and results of operations may result from changes in regulatory policies[96].

Core Viewpoint - Blue Ridge Bankshares, Inc. has reported a net loss for the fourth quarter of 2024, but has shown sequential improvement in deposit growth, reduction in noninterest expenses, and a decrease in nonperforming assets as part of its strategic repositioning away from fintech banking-as-a-service operations [1][2][3]. Financial Performance - For Q4 2024, the company reported a net loss of $2.0 million, or $0.03 per diluted common share, compared to a net income of $0.9 million in Q3 2024 and a net loss of $5.8 million in Q4 2023 [2][9]. - For the full year 2024, the net loss was $15.4 million, or $0.31 per diluted common share, significantly improved from a net loss of $51.8 million in 2023 [3][39]. Regulatory and Operational Initiatives - The company has successfully exited 45 fintech banking-as-a-service depository partnerships, reducing deposits from these sources by $445 million and decreasing reliance on wholesale funding by nearly $113 million [8]. - Regulatory remediation expenses decreased to $0.2 million in Q4 2024 from $2.5 million in Q4 2023, indicating progress in compliance efforts [2][3]. Asset Quality and Loan Portfolio - The nonperforming loans to total assets ratio improved to 0.93% at the end of Q4 2024, down from 1.09% in Q3 2024 and 2.02% at year-end 2023 [8][21]. - Loans held for investment decreased to $2.11 billion at year-end 2024, down from $2.43 billion at the end of 2023, reflecting a strategic reduction in asset levels [24][39]. Deposit Trends - Total deposits decreased to $2.18 billion at the end of Q4 2024, down $167.1 million from the previous quarter and $386.6 million year-over-year [25][39]. - Excluding fintech-related and wholesale deposits, total deposits increased by $28.1 million in Q4 2024 and $171.6 million for the full year [25][39]. Capital Position - The company's capital ratios improved, with the tier 1 leverage ratio at 12.43% and total risk-based capital ratio at 19.79% as of December 31, 2024, compared to lower ratios in the previous quarter [19][39]. - The tangible common equity to tangible total assets ratio was 11.9% at the end of Q4 2024, up from 10.6% in the prior quarter [19][39]. Noninterest Income and Expenses - Noninterest income for Q4 2024 was $2.8 million, slightly up from $2.7 million in Q3 2024 but down from $4.1 million in Q4 2023, primarily due to losses on the sale of mortgage servicing rights [22][23]. - Noninterest expenses decreased to $25.6 million in Q4 2024 from $26.5 million in Q3 2024 and $30.6 million in Q4 2023, driven by lower salaries and employee benefits [23][39].