Blue Ridge Bankshares (BRBS) Q1 2026 earnings summary

Executive summary

• Reported net income of $0.8 million ($0.01 per diluted share) for Q1 2026, compared to a net loss of $0.4 million in Q1 2025 and $4.2 million in Q4 2025; adjusted net income excluding executive transition expenses was $2.1 million ($0.02 per share).

• Fourth consecutive profitable quarter, reflecting transition to a community banking model and cost reduction initiatives.

• Total assets decreased by $18.5 million to $2.41 billion as of March 31, 2026, mainly due to declines in loans held for investment and sale, partially offset by higher cash balances.

• Total deposits declined by $18.1 million to $1.89 billion, driven by a $31.5 million decrease in brokered time deposits, while non-brokered deposits increased $13.4 million.

• Stockholders' equity fell by $46.7 million to $277.0 million, primarily due to a $54.1 million special cash dividend.

Financial highlights

• Net interest income was $16.9 million, down year-over-year and quarter-over-quarter, mainly from lower average loan balances.

• Interest income declined $6.0 million to $29.4 million, while interest expense fell $3.9 million to $12.5 million.

• Net interest margin was 2.90%, down from 3.04% in Q4 2025 and flat year-over-year.

• Recovery of credit losses was $0.6 million, reflecting portfolio reductions and net recoveries.

• Noninterest income decreased 23.6% to $2.3 million, mainly due to the sale of the mortgage division and lower other investment income.

• Noninterest expense dropped 18.3% to $18.7 million year-over-year, reflecting lower salaries, technology, and regulatory costs after the termination of a consent order, but increased from $16.9 million in Q4 2025.

Outlook and guidance

• Management expects continued reduction in brokered deposits and focus on growing non-brokered deposits.

• Further realization of cost reduction initiatives is expected in the second half of 2026.

• The company aims to maintain adequate liquidity and capital, with stress testing and contingency planning in place.

• Focus remains on aligning expenses with the community banking model and pursuing sound growth initiatives.

• No material changes to risk factors or critical accounting policies were reported.