Blue Ridge Bankshares, Inc.

What they do

The Company operates through its wholly-owned bank subsidiary, Blue Ridge Bank, National Association, offering commercial and consumer banking products including checking, savings, CDs, mortgages, and commercial loans. It also provides wealth and trust management services through BRB Financial Group, Inc., and holds a minority investment in Hammond Insurance Agency for property and casualty insurance. The Bank operates 27 full-service offices across Virginia and central North Carolina. The Company's primary revenue source is interest income from lending activities.

Revenue drivers

• Lending activities — Primary source of revenue; interest income from commercial and industrial loans, residential and commercial mortgages, home equity, and consumer installment loans. Total gross loans were approximately $1.87 billion at December 31, 2025.
• Investment and deposit interest — Interest and dividend income from investment securities and interest-earning deposits in other depository institutions. Interest income declined in Q2 2026 due to lower average balances of loans and interest-earning deposits.
• Wealth and trust management — Income from investment and wealth management, personal and corporate trust services, estate planning, and life insurance products offered through BRB Financial Group.
• Fee income — Transactions and fee income from lending and deposit activities, though the exited BaaS operations were previously a source of fee income; as of December 31, 2025 there were no active fintech end-users.

Recent performance

For Q2 2026 (revised), the Company reported a net loss of $1.3 million, or ($0.01) per diluted share, versus net income of $0.8 million in Q1 2026 and $1.3 million in Q2 2025. The Q2 loss included a $3.2 million after-tax provision for credit losses, driven by a $2.9 million reserve on a nonaccrual loan from a single out-of-market relationship, and $0.3 million of after-tax severance expense. Excluding severance, pre-tax, pre-provision income improved to $2.9 million, up 30% sequentially. For the first half of 2026, net loss was $0.5 million, compared to net income of $0.9 million in the first half of 2025. Full-year 2025 net income was $10.7 million, versus net losses in 2023 and 2024.

Strategy

Management is returning to a community-focused bank model, having completed an orderly wind-down of BaaS depository operations in 2024 and exiting indirect fintech lending relationships, with full exit expected in 2026. The strategy includes de-risking the balance sheet, improving deposit mix, reducing operating expenses, and growing loans at a measured pace. In Q2 2026, loan growth returned at a 4% annualized rate. The Company is also focusing on maintaining adequate capital and improving profitability, with severance-related cost savings expected in the second half of 2026.

Risks

• Credit risk concentration — A single out-of-market commercial relationship placed on nonaccrual at June 30, 2026 required a $2.9 million reserve, showing vulnerability to borrower-specific credit deterioration.
• Regulatory risk — The Bank was subject to an OCC Consent Order through most of 2025, which imposed higher minimum capital ratios (10.0% leverage, 13.0% total capital) and required strategic and capital plans; the order was terminated on November 13, 2025.
• Profitability volatility — The Company reported net losses in 2023 and 2024, and a net loss in the first half of 2026, indicating ongoing difficulty in generating consistent earnings.
• Fintech exit execution — The Company is terminating indirect fintech lending relationships and expects to be completely exited by 2026; any disruption in the wind-down could affect revenue and fees.

Outlook

Management cites healthy local economic conditions driving business investment and consumer spending, with 'encouraging' loan and deposit pipelines. Expense reduction actions taken in Q2 2026 are expected to have a positive impact on second-half 2026 results. The Company expects to fully exit indirect fintech lending in 2026. However, the recent credit loss suggests continued caution around loan quality.