Blue Ridge Bankshares, Inc. Announces 2025 First Quarter Results

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]