Shares of Blue Ridge Bankshares, Inc. (BRBS Quick QuoteBRBS - Free Report) have gained 0.23% since reporting results for the quarter ended Dec. 31, 2025, outperforming the S&P 500 Index, which rose 0.19% over the same period. Shares also rose 0.2% over the past month, though they lagged the broader market’s 1.5% increase during that time.

Blue Ridge Bankshares’ Earnings Snapshot

For the fourth quarter of 2025, Blue Ridge Bankshares reported net income of $4.2 million, or $0.04 per diluted common share, against a net loss of $2 million, or $0.03 per share, in the year-ago quarter. This marked a return to profitability on a year-over-year basis, although earnings declined 24.3% sequentially from $5.6 million, or $0.06 per share, in the third quarter of 2025. Net interest income for the quarter was $18.1 million, down from $19.1 million in the fourth quarter of 2024, reflecting lower average interest-earning asset balances.

Noninterest income totaled $2.7 million, largely unchanged from $2.8 million a year earlier, while noninterest expense declined 34% to $16.9 million from $25.6 million in the prior-year quarter, driven primarily by lower salaries, employee benefits and regulatory-related costs.

For the full year, BRBS posted net income of $10.7 million, or $0.11 per diluted share, against a net loss of $15.4 million, or $0.31 per share, in 2024, underscoring a significant year-over-year improvement in overall performance.

BRBS’ Other Key Business Metrics

Asset quality metrics showed improvement during the quarter. Nonperforming loans declined to $23.8 million, representing 0.98% of total assets, as of Dec. 31, 2025, compared with $28.6 million, or 1.14% at the end of the prior quarter, reflecting loan payoffs and balance reductions. The allowance for credit losses as of Dec. 31, 2025, stood at 1.04% of loans held for investment, slightly lower than 1.09% a year earlier.

Total assets decreased to $2.43 billion as of Dec. 31, 2025, from $2.74 billion a year earlier, driven mainly by reductions in loans and brokered deposits as the company continued to reposition its balance sheet. Capital ratios remained well above regulatory minimums, with a tangible common equity ratio of 13.2%, despite declines from the prior quarter due to dividend payments and share repurchases.

Blue Ridge Bankshares’ Management Commentary

Management characterized 2025 as a “breakthrough year,” highlighting the termination of a regulatory consent order in November 2025 as a key milestone. According to BRBS, the removal of the order is expected to reduce borrowing costs, FDIC insurance premiums and operating expenses, while also providing greater flexibility for capital decisions and strategic opportunities. Leadership also emphasized progress in cost controls, noting that headcount was reduced by more than 30% from year-end 2024 to year-end 2025 as the company transitioned toward a more traditional community banking model.

Factors Influencing BRBS’ Headline Numbers

Quarterly results were influenced by several non-recurring and comparative factors. The fourth quarter of 2025 included a $1.5 million pre-tax recovery of credit losses and $0.4 million of pre-tax income related to the 2024 sale of mortgage servicing rights. By contrast, the year-ago quarter reflected a $2 million after-tax loss on the sale of mortgage servicing rights, which weighed on results at that time.

Net interest margin declined to 3.04% from 2.80% in the fourth quarter of 2024, but fell sequentially from 3.60% in the third quarter of 2025, partly due to the absence of loan fee income that benefited the prior quarter. Expense reductions, particularly in salaries, benefits and consulting fees, were a major driver of the year-over-year improvement in profitability.

Blue Ridge Bankshares’ Guidance

While BRBS did not provide formal financial guidance, management noted expectations for mid-single-digit balance sheet growth and positive momentum entering the new year, supported by an improving loan pipeline and stabilization following the wind-down of prior non-core activities.

BRBS’ Other Developments

During the quarter, Blue Ridge Bankshares paid a special cash dividend of $0.25 per share, totaling approximately $29.1 million, following regulatory approval to upstream capital from the bank. The company also continued its share repurchase program, buying back 802,735 common shares for $3.4 million during 2025 and repurchasing warrants for $6.1 million.

Additionally, earlier in 2025, BRBS completed the sale of its mortgage division, further simplifying its business model and contributing to the year-over-year decline in noninterest income from mortgage-related activities.