Core Viewpoint - Blue Ridge Bankshares, Inc. (BRBS) has shown significant improvement in its financial performance for the third quarter of 2025, with a notable increase in net income and profitability metrics compared to previous periods [2][3][7]. Financial Performance - BRBS reported a net income of $5.6 million, or $0.06 per diluted share, a substantial increase from $0.9 million, or $0.01 per share, in the same quarter last year [2]. - Year-to-date earnings reached $6.5 million ($0.07 per share), contrasting with a net loss of $13.4 million ($0.34 per share) for the same period in 2024 [2]. - Total interest income decreased by 7.7% year-over-year to $36.2 million from $39.2 million [2]. Income and Expenses - Net interest income rose by 14.7% to $21.9 million from $19.1 million a year earlier, attributed to higher loan yields and one-time fee income [3]. - Noninterest income surged by 42.1% to $3.8 million from $2.7 million year-over-year, while noninterest expenses fell by 24.2% to $20 million from $26.5 million [3]. - The bank achieved its highest quarterly profit since 2022, aided by $3 million in loan fee income and a $0.8 million recovery from a previously charged-off loan [4]. Profitability Metrics - The net interest margin expanded to 3.60% from 3.15% in the prior quarter and 2.74% a year earlier, reflecting lower deposit costs [5]. - The cost of deposits decreased to 2.51% from 2.91% a year ago, contributing to improved profitability [5]. Asset Quality - Nonperforming loans increased to $28.6 million (1.14% of total assets) from $24 million (0.94%) in the previous quarter [6]. - The allowance for credit losses was 1.07% of total loans, slightly down from 1.11% in June 2025 [6]. Management Insights - The CEO highlighted the bank's turnaround and attributed the positive results to improved operational discipline and strategic transitions, including cost control [7]. - Despite a decline in loans held for investment to $1.91 billion, BRBS has built a $200 million loan pipeline, indicating renewed business momentum [8]. Balance Sheet and Capital Position - Total assets decreased to $2.49 billion from $2.94 billion a year earlier, reflecting a reduction in out-of-market loans [10]. - Capital ratios improved, with the tier 1 leverage ratio rising to 14.70% at the holding company level and 13.67% at the bank level [11]. Future Outlook - Management expressed confidence in continued earnings improvement due to operational restructuring and a growing commercial loan pipeline [12]. - The company repurchased 659,949 shares under a $15 million stock repurchase program, totaling $2.8 million [13].