Shares of Blue Ridge Bankshares, Inc. (BRBS Quick QuoteBRBS - Free Report) have gained 1.4% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares to the S&P 500 Index’s 0.9% gain over the same time frame. Over the past month, the stock gained 2.4% compared with the S&P 500’s 2.3% rise.

BRBS' Earnings Snapshot

Blue Ridge Bankshares reported third-quarter 2025 net income of $5.6 million, or $0.06 per diluted share, representing a significant improvement from $0.9 million, or $0.01 per share, in the year-ago quarter and $1.3 million, or $0.01 per share, in the preceding quarter. Year to date, Blue Ridge Bankshares earned $6.5 million ($0.07 per share) against a net loss of $13.4 million ($0.34 per share) for the same period in 2024. Total interest income fell 7.7% year over year to $36.2 million from $39.2 million.

Net interest income increased 14.7% to $21.9 million from $19.1 million a year earlier, driven by higher loan yields and one-time fee income. Noninterest income rose 42.1% to $3.8 million from $2.7 million a year ago, while noninterest expense declined 24.2% year over year to $20 million from $26.5 million. These improvements helped the bank post its highest quarterly profit since 2022.

Blue Ridge Bankshares' Other Key Business Metrics

The quarter’s profitability benefited from $3 million in loan fee income on the payoff of a criticized out-of-market loan and a $0.8 million recovery from a previously charged-off specialty finance loan. Additionally, the company received $0.8 million in proceeds tied to 2024 mortgage servicing rights sales. These non-recurring items boosted both interest and non-interest income.

Net interest margin expanded markedly to 3.60% from 3.15% in the prior quarter and 2.74% a year earlier, reflecting lower deposit costs and the aforementioned loan payoff. Excluding one-time items, margin gains were still supported by a better funding mix and disciplined expense control. The cost of deposits fell to 2.51% from 2.91% a year ago.

Nonperforming loans rose modestly to $28.6 million (1.14% of total assets) from $24 million (0.94%) in the previous quarter, largely due to a single multifamily loan that remains current on payments. Blue Ridge Bankshares reported a $1.8 million recovery of credit losses, improving from a $0.7 million recovery last quarter. The allowance for credit losses stood at 1.07% of total loans, slightly down from 1.11% in June 2025.

BRBS' Management Commentary

President and CEO G. William “Billy” Beale praised the bank’s turnaround, noting that the quarter’s results were “a good news story on many fronts.” Beale credited improved operational discipline and the successful completion of several strategic transitions, including cost control and the exit of high-risk fintech activities. He emphasized that headcount and salary costs continued to decline sequentially, while regulatory expenses and FDIC insurance fees were lower, indicators of improved standing with regulators.

Beale highlighted that despite a decline in loans held for investment to $1.91 billion as of Sept. 30, 2025, from $1.98 billion as of June 30, 2025, BRBS built a $200 million loan pipeline as of Sept. 30, suggesting renewed business momentum. He also reaffirmed the company’s solid capital position and indicated that he expects robust fourth-quarter results to be reported in January 2026.

Factors Influencing Blue Ridge Bankshares' Headline Numbers

The quarterly results were bolstered by nonrecurring fee income and recoveries on previously written-down assets. A one-time $3 million payoff from a large loan and a $0.8 million recovery from a specialty finance loan significantly lifted earnings. Lower funding costs, reduced FDIC assessments and declining headcount further supported profitability. However, these positives were partially offset by higher legal and consulting expenses, tied to revenue enhancement projects and regulatory compliance efforts.

From a balance-sheet perspective, total assets fell to $2.49 billion from $2.94 billion a year earlier, reflecting a deliberate reduction in out-of-market loans and fintech-related deposits. Total deposits declined to $1.95 billion from $2.35 million, with a $28.2 million reduction in brokered deposits, while wholesale deposits fell $32.3 million. Liquidity improved to $808.7 million, or 200% of uninsured deposits, from 183.3% in the prior quarter.

Capital ratios strengthened across the board. The tier 1 leverage ratio rose to 14.70% at the holding company level and 13.67% at the bank level, comfortably above the Office of the Comptroller of the Currency required minimums. The tangible common equity ratio improved to 14.2% from 10.6% a year ago, while tangible book value per share climbed to $4.01 from $3.85 in June 2025.

BRBS' Guidance

While no formal quantitative guidance was provided, management expressed confidence that the operational restructuring, strengthened capital position and a growing commercial loan pipeline will translate into continued earnings improvement in the coming quarters. CEO Beale projected another strong performance in the fourth quarter, citing regulatory progress and early signs of balance-sheet stabilization.

Blue Ridge Bankshares' Other Developments

During the quarter, Blue Ridge Bankshares repurchased 659,949 shares under its newly authorized $15 million stock repurchase program, at a weighted average price of $4.16 per share, totaling $2.8 million. Earlier in 2025, the company also completed the sale of its Monarch Mortgage division, incurring a $0.2 million loss, and partially redeemed $10 million of subordinated notes maturing in 2029.