Blue Ridge Bankshares, Inc. Announces 2024 Fourth Quarter and Full Year Results

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$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].