Blue Ridge Bankshares in Charlottesville, Va., continues its comeback by reporting a profitable quarter.
The $2.6 billion-asset company said in a press release that it earned $1.3 million in the second quarter, compared to a $400,000 loss in the first quarter and an $11.4 million loss a year earlier.
“In our earnings release for first quarter … I mentioned the results were a harbinger for future sustainable and increasing profitability,” Billy Beale, Blue Ridge’s president and CEO, said in the release.
“There are several encouraging trends,” he added. “Our net interest margin, driven primarily by lower deposit costs, grew to 3.15% for the quarter, notwithstanding a smaller balance sheet. Noninterest income from service charges on deposit accounts improved through our efforts to align to market-level pricing.
Blue Ridge also reduced expenses by roughly $1 million from the first quarter, reflecting 109 layoffs made this year. The company has cut 170 positions since mid-2024.
“We expect to report further reductions in noninterest expenses in future quarters, as we continue to focus on operational improvements and believe we are nearing the completion of regulatory remediation activities,” Beale added.
The company, which has been operating under an enforcement action with its regulator since September 2022, subsequently hired Beale, shut down its Banking-as-a-Service platform, sold its mortgage business, and raised $150 million in capital.