Blue Ridge Bankshares(US:BRBS)2026-01-29 22:30Financial Performance - For Q4 2025, Blue Ridge Bankshares reported net income of $4.2 million, or $0.04 per diluted common share, down from $5.6 million, or $0.06 per diluted common share in Q3 2025, and a net loss of $2.0 million in Q4 2024[4]. - For the full year 2025, net income was $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 in 2024[5]. - Net income for the three months ended December 31, 2025, was $4,244 thousand, a decrease of 24.2% from $5,603 thousand in the previous quarter[45]. - Diluted earnings per share for the twelve months ended December 31, 2025, was $0.11, compared to a loss of $0.31 for the same period in 2024[46]. Asset and Loan Management - Total assets decreased to $2.43 billion at the end of Q4 2025, down from $2.50 billion in Q3 2025, driven by a $47.0 million decline in loans held for investment[21]. - Loans held for investment were $1.87 billion at December 31, 2025, down from $1.91 billion at September 30, 2025, and $2.11 billion at December 31, 2024, reflecting a decline of $246.1 million in 2025[31]. - 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[15]. - The allowance for credit losses decreased from $23,023 thousand to $19,444 thousand, indicating improved credit quality[44]. Income and Expenses - The company reduced noninterest expenses by $3.1 million in Q4 2025, primarily due to lower salaries and employee benefits, resulting in improved earnings over the last two years[7]. - Noninterest income for Q4 2025 was $2.7 million, down from $3.8 million in Q3 2025 and $2.8 million in Q4 2024, with total noninterest income for the year at $12.8 million compared to $13.6 million in 2024[29]. - Noninterest expense decreased by $3.1 million from the prior quarter and $8.7 million from the year-ago period, totaling $81.9 million for 2025 compared to $113.8 million in 2024[30]. - Total noninterest expense for the twelve months ended December 31, 2025, was $81,922 thousand, a decrease of 28.1% compared to $113,841 thousand for the same period in 2024[46]. Dividends and Shareholder Returns - The company announced a special cash dividend of $0.25 per share, totaling approximately $29.1 million, paid on November 21, 2025[13]. - Cash dividends per common share were $0.25 in Q4 2025, compared to no dividends in Q3 2025[47]. Operational Efficiency - The efficiency ratio for Q4 2025 was 81.3%, an increase from 77.8% in Q3 2025, indicating a decline in operational efficiency[47]. - The return on average assets for Q4 2025 was 0.69%, down from 0.88% in Q3 2025[47]. Deposits and Funding - Total deposits were $1.91 billion at December 31, 2025, a decrease of $39.9 million from September 30, 2025, and $268.3 million from December 31, 2024[32]. - Noninterest-bearing deposits represented 20.9% of total deposits at December 31, 2025, compared to 21.1% at September 30, 2025, and 20.8% at December 31, 2024[34]. - Brokered deposits as a percentage of total deposits declined to 12.5% at December 31, 2025, from 18.5% at December 31, 2024[33]. - The total loan to deposit ratio was 98.4% in Q4 2025, slightly down from 98.7% in Q3 2025[47]. Employee and Business Model Changes - The company transitioned to a more traditional community banking model, resulting in a reduction of 140 employees, or over 30%, since year-end 2024[30]. Market and Economic Outlook - The company is projecting mid-single digit balance sheet growth and positive momentum as it starts the new year[8]. - The company cautions that forward-looking statements are subject to various risks and uncertainties that could materially affect actual results[39].