Blue Ridge Bankshares, Inc. (BRBS Quick QuoteBRBS - Free Report) investors have been experiencing some short-term gains from the stock lately, despite its bumpy ride over recent months. Shares of the Richmond, VA-based holding company of Blue Ridge Bank, National Association and BRB Financial Group, Inc., have gained 8.6% in the past three months against the industry’s 1.3% decline. In the same time frame, the stock also outperformed the sector and the S&P 500’s 1% and 7% gain, respectively.

Two key recent developments for BRBS include the receipt of the notification from its primary regulator, the Office of the Comptroller of the Currency, terminating the Consent Order dated Jan. 24, 2024 (in November) and the release of its third-quarter 2025 results (in October). The company reported a solid uptick in both net interest income and noninterest income during the period. The company delivered a notably stronger performance versus recent quarters, helped by a one-time lift from the payoff and recovery of certain previously troubled credits, along with improved fee-driven revenue. At the same time, management’s ongoing cost-control efforts supported profitability.

Blue Ridge Bankshares’ management emphasized continued balance-sheet de-risking, including completing its exit from fintech/BaaS (banking-as-a-service)-related deposits and further reducing non-core loan exposure, which it believes leaves BRBS better positioned to refocus on traditional core-banking growth going forward.

BRBS’ Three Months Price Comparison

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Over the past three months, the stock underperformed its peers like Franklin Financial Services Corporation (FRAF Quick QuoteFRAF - Free Report) but outperformed its other peer, AmeriServ Financial, Inc. (ASRV Quick QuoteASRV - Free Report) . Franklin Financial’s and AmeriServ Financial’s shares have gained 15.7% and 2.3%, respectively, in the same time frame.

Despite several challenges within the banking industry, including heightened competition for deposits and customers, the favorable share price movement indicates that the company might be able to maintain the positive market momentum at present.

Blue Ridge Bankshares is a community banking franchise with a multi-market presence across Virginia and North Carolina. Through Blue Ridge Bank and its related subsidiaries, it offers a broad mix of retail and commercial banking, along with wealth and trust/estate services. Its branch-based footprint in attractive local markets, combined with recent leadership additions and a renewed focus on relationship banking, underpins its longer-term growth potential.

Blue Ridge Bankshares Strong Fundamentals Weigh In

One fundamental supporting BRBS is its ongoing turnaround and tightening of its risk posture on the asset side. The bank has been actively cleaning up legacy problem areas, reducing exposure to higher-risk or non-core credits and sharpening underwriting and portfolio oversight. This strategy is aimed at improving overall asset quality, lowering volatility and making profitability more repeatable as the balance sheet becomes simpler and more conservative.

A second driver is the strengthening of BRBS’s core funding base. After moving away from fintech-linked deposits, the bank has refocused on relationship-driven retail and commercial deposit gathering, creating a more granular and dependable mix. With less reliance on wholesale or brokered sources, Blue Ridge Bankshares is better positioned to sustain liquidity and manage funding costs in a competitive deposit environment.

Third, BRBS benefits from its community-banking footprint across Virginia and North Carolina. The company operates in markets where it has established local presence, which supports steady deposit inflows and relationship-based lending. Management is reinforcing this platform through a renewed commercial push and leadership focus on core banking, helping build a healthier pipeline and supporting longer-term organic growth.

Challenges Ahead for BRBS

Blue Ridge Bankshares continues to operate in a highly competitive banking landscape, facing pressure from larger banks, credit unions, Internet-based players, and fintechs for both loans and deposits, which can limit growth and pricing flexibility. Another challenge is managing the ongoing transition away from indirect fintech lending relationships and other legacy initiatives, a process that can create operational complexity and keep advisory or cleanup-related expenses somewhat elevated as the bank completes its shift back to a simpler community-banking model.

Blue Ridge Bankshares’ Stock’s Valuation

BRBS’ trailing 12-month P/S of 2.7X is higher than the industry’s average of 2.2X and its three-year median of 1.1X.

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Franklin Financial’s and AmeriServ Financial’s trailing 12-month P/S currently stand at 1.9X and 0.6X, respectively, in the same time frame.

Our Final Take on BRBS

There is no denying that Blue Ridge Bankshares sits favorably in terms of core business strength, earnings prowess, robust financial footing and opportunities. The stock’s strong core growth prospects present a good reason for existing investors to retain shares for potential future gains. New investors are also likely to be motivated to add the stock following the current uptrend in share prices.

For those exploring new additions, BRBS’s valuation looks more demanding than the peer group, implying the market already expects above-industry execution as the turnaround matures. Since the stock is also trading well above its own longer-term norm, the scope for gains from simple re-rating appears more limited, and future upside will likely depend on continued follow-through in core growth, funding stability and profitability. For existing investors, the premium can be justified if momentum holds, making a hold stance appropriate for now.