- Net loss for Blue Ridge Bankshares (BRBS, Financial) improved to $0.4 million in Q1 2025.
- Net interest margin increased to 2.90% from 2.80% in Q4 2024.
- Workforce reduction of 91 employees expected to save $6 million annually.
Blue Ridge Bankshares, Inc. (BRBS) announced its financial results for the first quarter of 2025, reporting a net loss of $0.4 million, or $0.01 per diluted share. This marks a significant improvement from the fourth quarter of 2024, where the company reported a net loss of $2.0 million.
The company undertook a strategic workforce reduction during the quarter, cutting down 91 employees, which represents a 21% decrease in headcount. This change is projected to save approximately $6 million annually.
The sale of the Monarch Mortgage division was completed on March 27, 2025, resulting in a $0.2 million loss. Despite the loss incurred from the sale and severance costs of $0.7 million, underlying operational performance showed signs of strengthening.
Notably, Blue Ridge Bankshares' net interest margin improved to 2.90%, up from 2.80% in the previous quarter. The bank has also completed its regulatory remediation efforts and received approval to redeem subordinated debt, aiming to save $2 million in annual interest expenses.
Moreover, the company's capital ratios have strengthened, with a tier 1 leverage ratio of 12.33% and a total risk-based capital ratio of 17.93%, indicating a strong capital position moving forward. Management remains optimistic about returning to sustainable profitability by concentrating on community banking amidst these restructuring efforts.
