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].
Blue Ridge Bankshares(BRBS) - 2025 Q1 - Quarterly Results