Blue Ridge Bankshares, Inc. reported a net loss of $15.4 million for the fiscal year ending December 31, 2024, a significant improvement from the $51.8 million loss recorded in 2023. The loss per share for 2024 was $(0.31), compared to $(2.73) in the previous year. The company's total assets decreased to approximately $2.74 billion from $3.12 billion in 2023, primarily due to a reduction in loans and deposits as the company exited its fintech banking-as-a-service (BaaS) operations. Total gross loans were approximately $2.11 billion, down from $2.43 billion in 2023, while total deposits fell to $2.18 billion from $2.57 billion.
The company undertook significant strategic changes during the year, including the completion of private placements that raised $161.6 million in gross proceeds. This capital was intended to support the company's strategic initiatives, including repositioning its business lines and enhancing capital levels to comply with regulatory requirements set forth in a Consent Order issued by the Office of the Comptroller of the Currency (OCC). As of December 31, 2024, the Bank's capital ratios exceeded the minimum requirements outlined in the Consent Order, which mandates a leverage ratio of 10% and a total capital ratio of 13%.
Operationally, Blue Ridge Bank has reduced its workforce, with 442 full-time equivalent employees as of December 31, 2024, down from 513 the previous year. The company also reported a recovery of credit losses of $5.1 million, compared to a provision for credit losses of $22.3 million in 2023. The decrease in provisions was attributed to a recovery from the sale of a specialty finance loan and lower reserve needs due to a reduction in the loan portfolio. Nonperforming loans decreased significantly to $25.4 million, or 1.20% of total loans, from $63.1 million, or 2.59% of total loans, in 2023.
Looking ahead, Blue Ridge Bankshares plans to continue its focus on traditional community banking, moving away from fintech partnerships. The company anticipates that its net interest income and margin will stabilize as it adjusts its loan portfolio and funding sources. However, the company remains cautious about potential economic downturns and their impact on credit quality, particularly in the commercial real estate sector, which constitutes a significant portion of its loan portfolio. The management is committed to enhancing operational efficiency and compliance with regulatory directives to improve financial performance in the coming years.
About BLUE RIDGE BANKSHARES, INC.
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