Blue Ridge Bankshares, Inc. Announces 2025 First Quarter Results – PR Newswire

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Performance reflects improvement in net interest margin and noninterest expense reduction
Regulatory remediation efforts remain on track
RICHMOND, Va., April 24, 2025 /PRNewswire/ — Blue Ridge Bankshares, Inc. (the “Company”) (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association (“Blue Ridge Bank” or the “Bank”) and BRB Financial Group, Inc., today announced financial results for the quarter ended March 31, 2025.
For the quarter ended March 31, 2025, the Company reported a net loss of $0.4 million, or $0.01 per diluted common share, compared to a net loss of $2.0 million, or $0.03 per diluted common share, for the quarter ended December 31, 2024, and a net loss of $2.9 million, or $0.15 per diluted common share, for the first quarter of 2024. Net loss for the first quarter of 2025 included after-tax severance costs of $0.5 million and a $0.2 million loss on the sale of the mortgage division. Net loss for the fourth quarter of 2024 included an after-tax loss on the sale of mortgage servicing right assets (“MSRs”), net of the fair value adjustment, of $1.4 million. After-tax regulatory remediation expenses for the first quarter of 2025 were $0, compared to $0.2 million and $2.1 million for the fourth and first quarters of 2024, respectively.
A Message From Blue Ridge Bankshares, Inc. President and CEO, G. William “Billy” Beale:
“I believe that our first quarter results indicate that our shareholders will soon see a return to sustainable profitability. It has been a short journey involving exiting the fintech banking-as-a-service (“BaaS”) indirect deposit business, exiting non-core lending relationships, strengthening our risk management framework, and making significant reductions in staff levels.
“Over the last 12 months we have made significant progress toward compliance with the January 2024 Consent Order with our primary regulators. Recently, we received regulatory non-objection to redeem a significant portion of our subordinated debt, which will save over $2 million in interest expense annually.
“As we return to community banking, our focus on operational efficiencies is a multi-faceted endeavor. To improve noninterest income, we have aligned our product pricing to the market. We are upgrading our business treasury products to be competitive with product sets offered by other banks. We have aggressively attacked noninterest expenses by reducing the number of employees in the first quarter by 91, a 21% decrease since December 31, 2024. Over the last 12 months, our number of employees has been reduced by nearly 170. The annualized cost saves resulting from the first quarter’s reductions are expected to be approximately $6 million, or $1.5 million per quarter. Further, we have reduced our dependency on consultants. Our goal is to achieve an annualized run rate for noninterest expense to assets of less than 3% by the fourth quarter of this year.
“Another positive in the first quarter was the improvement in our funding cost, a sequential quarter reduction of 23 basis points, resulting from our 2024 actions to change our funding mix as we exited fintech BaaS and reduced wholesale funding.
“We completed our analysis of non-banking business lines resulting in the sale of certain lines of business, most notably Monarch Mortgage. Scale is important for these non-banking lines. We felt we could not achieve the required scale within a reasonable time.
“Lastly, our commercial relationship managers and our retail team are focused on growth in core deposits and loans to customers within our footprint. We expect to see positive results in the near-term quarters.”
Sale of Monarch Mortgage
The Company’s previously announced sale of its mortgage division operating as Monarch Mortgage to an unrelated third-party mortgage company was completed on March 27, 2025. The sale, which included the transfer of certain assets and leases, resulted in a $0.2 million loss, reported in other noninterest income. The Company has continued to fulfill its obligations to borrowers with respect to loans in process and will manage such loans toward closing and funding in the ordinary course of business.
Q1 2025 Highlights
(Comparisons for First Quarter 2025 are relative to Fourth Quarter 2024 unless otherwise noted.)
Net Income:
Net Interest Income / Net Interest Margin:
Capital:
Asset Quality:
Noninterest Income / Noninterest Expense:
Income Tax:
Balance Sheet:
Income Statement:
Net interest income was $19.0 million and $19.1 million for the first quarter of 2025 and the fourth quarter of 2024, respectively, compared to $20.3 million for the first quarter of 2024. The decline in the first quarter of 2025 and fourth quarter of 2024 compared to the first quarter of 2024 was primarily attributable to lower interest and fee income on loans due to lower average balances. This decline was partially offset by lower average balances and rates paid on interest-bearing demand accounts and lower average balances of wholesale funding. The majority of fintech BaaS deposits were in interest-bearing demand accounts.
Average balances of interest-earning assets decreased $116.1 million to $2.62 billion in the first quarter of 2025, relative to the prior quarter, and decreased $345.8 million from the year-ago period. Relative to the prior quarter and the year-ago period, the decrease reflected primarily lower average balances of loans held for investment. The yield on average loans held for investment was 5.70% and 5.83% for the first quarter of 2025 and fourth quarter of 2024, respectively, compared to 6.02% for the first quarter of 2024. These declines in loan yield arose primarily from the purposeful and selective reduction of loans where borrowers did not represent in-market relationships.
Average balances of interest-bearing liabilities decreased $122.5 million, to $1.90 billion in the first quarter of 2025, relative to the prior quarter, and decreased $512.4 million from the year-ago quarter period. The decline relative to the comparative periods was primarily due to the exit of fintech BaaS deposit operations and the payoff of wholesale funding.
Cost of funds was 2.78% for the first quarter of 2025, compared to 3.01% for the fourth quarter of 2024, and 3.03% for the first quarter of 2024, while cost of deposits was 2.62%, 2.86%, and 2.84%, for the same respective periods. Lower cost of funds in the first quarter of 2025 was primarily due to the exit of fintech BaaS deposit operations and lower average balances of wholesale funding, and relative to the year-ago period, offset by the higher variable cost of $25.0 million of the Company’s subordinated debt. Cost of deposits, excluding wholesale deposits, was 1.34% for the quarter compared to 1.55% for the prior quarter and 2.52% for the year-ago period. The first quarter’s declines from the comparative periods were primarily due to lower average balances of higher cost fintech-related deposits.
Net interest margin was 2.90% for the first quarter of 2025 compared to 2.80% for the prior quarter and 2.75% in the first quarter of 2024, driven primarily by lower funding costs.
No provision for credit losses was reported for the first quarter of 2025 compared to a recovery of credit losses of $1.0 million for both the fourth and first quarters of 2024. The recovery of credit losses in the fourth quarter of 2024 reflected lower reserve needs due to loan portfolio balance reductions, partially offset by charge-offs of the non-guaranteed portion of certain GGL and certain purchased loans, whereas the recovery of credit losses in the first quarter of 2024 was primarily attributable to lower unfunded loan commitments.
Noninterest income was $3.1 million for the first quarter of 2025, compared to $2.8 million for the fourth quarter of 2024, and $7.8 million for the first quarter of 2024. The first quarter of 2025 included a loss on the sale of the Company’s mortgage division of $0.2 million, while the fourth quarter of 2024 included a loss on the sale of MSRs of $2.6 million and a fair value adjustment on MSRs before their sale of a positive $0.8 million. Excluding these items, noninterest income in the first quarter of 2025 was $1.3 million lower than the fourth quarter of 2024. This decline was primarily due to lower residential mortgage banking income, driven by lower servicing income and lower mortgage origination volumes. The decline in noninterest income for the first quarter of 2025 relative to the year-ago period was primarily attributable to declines in residential mortgage banking income and other noninterest income of $1.7 million and $2.2 million, respectively. Other noninterest income includes earnings from fintech lending partnerships, which contributed $0.2 million, $0.7 million, and $1.4 million of noninterest income in the first quarter of 2025 and fourth and first quarters of 2024, respectively.
Noninterest expense was $23.0 million for the first quarter of 2025, compared to $25.6 million for the fourth quarter of 2024, and $32.4 million for the first quarter of 2024. Noninterest expense decreased $2.7 million from the prior quarter and $9.5 million from the year-ago period. The decline relative to the prior period was primarily due to lower expenses for salaries and employee benefits, other contractual services, and audit fees, while the decline relative to the year-ago period was due to lower salaries and employee benefits, and a reduction in other contractual services and regulation remediation expenses. The decline in salaries and employee benefits in the current quarter reflected a reduction in headcount as the Company works to right-size staffing as it completes certain regulatory directives, and transitions to a more traditional community banking model. Severance costs for the current and prior quarter were $0.7 million and $0, respectively. The decrease in other contractual services and audit fees reflects a reduction in the use of outside consulting services.
Balance Sheet:
Loans held for investment were $2.06 billion at March 31, 2025, compared to $2.11 billion at December 31, 2024, and $2.39 billion at March 31, 2024. These declines were attributable to the Company’s plan to purposefully and selectively reduce assets to partially meet the liquidity needs of the fintech BaaS depository operations exit, as well as to transition the Company to a more traditional community banking model.
Total deposits were $2.13 billion at March 31, 2025, a decrease of $50.0 million and $336.3 million for the quarter and the year-to-date periods, respectively. Fintech-related deposits declined $7.0 million in the first quarter of 2025. Excluding fintech-related and brokered deposits, total deposits increased $20.4 million from the prior quarter end and $128.0 million from the first quarter of 2024.
The Company previously reported that it was prohibited from the acceptance, renewal, or rollover of brokered deposits, as a result of the Consent Order. In early third quarter of 2024, the Bank received approval from the FDIC allowing the Bank to accept, renew, or rollover brokered deposits for a six-month period of time and in the amount of maturities during this period. In late fourth quarter of 2024, the Bank received a six-month extension of this approval. Brokered deposits at March 31, 2025 were $339.1 million, a decline of $63.4 million from December 31, 2024, and a decline of $174.8 million from March 31, 2024. The Company had secured brokered deposits to enhance liquidity during the fintech BaaS wind down.
Noninterest-bearing deposits represented 21.3%, 20.8%, and 20.1% of total deposits at March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 25.2%, 24.4%, and 24.7% of total deposits as of the same respective dates.
The held for investment loan-to-deposit ratio was 96.7% at March 31, 2025, compared to 96.9% at December 31, 2024, and 97.1% at March 31,2024.
About Blue Ridge Bankshares, Inc.:
Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information.
Reclassifications:
Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders’ equity, as previously reported.
Non-GAAP Financial Measures:
The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (“GAAP”) and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company’s financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company’s business. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release.
Forward-Looking Statements:
This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phrases of similar meaning. The Company cautions that the forward-looking statements are based largely on its expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements.
The following factors, among others, could cause the Company’s financial performance to differ materially from that expressed in such forward-looking statements:
The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company’s results of operations or financial condition, or cause the Company’s actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise.
1 Non-GAAP financial measure. Further information can be found at the end of this press release. 
Blue Ridge Bankshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except share data)
(unaudited)
March 31, 2025

December 31,
2024 (1)

Assets
Cash and due from banks
$            170,466
$            173,533
Restricted cash
2,167
2,459
Federal funds sold
1,725
838
Securities available for sale, at fair value
325,401
312,035
Restricted equity investments
18,797
19,275
Other equity investments
4,698
4,834
Other investments
20,381
19,405
Loans held for sale
23,624
30,976
Loans held for investment, net of deferred fees and costs
2,059,710
2,111,797
Less: allowance for credit losses
(23,126)
(23,023)
Loans held for investment, net
2,036,584
2,088,774
Accrued interest receivable
12,700
12,537
Premises and equipment, net
20,916
21,394
Right-of-use lease asset
7,597
7,962
Other intangible assets
3,527
3,859
Deferred tax asset, net
26,149
27,312
Other assets
10,352
12,067
Total assets
$         2,685,084
$         2,737,260
Liabilities and Stockholders’ Equity
Deposits:
Noninterest-bearing demand
$            452,590
$            452,690
Interest-bearing demand and money market deposits
632,983
598,875
Savings
103,622
100,857
Time deposits
940,282
1,027,020
Total deposits
2,129,477
2,179,442
FHLB borrowings
150,000
150,000
Subordinated notes, net
39,773
39,789
Lease liability
8,280
8,613
Other liabilities
19,265
31,628
Total liabilities
2,346,795
2,409,472
Commitments and contingencies
Stockholders’ Equity:
Common stock, no par value; 150,000,000 shares authorized at March 31, 2025
and December 31, 2024, respectively; and 87,777,849 and 84,972,610 shares
issued and outstanding at March 31, 2025 and December 31, 2024, respectively

329,920
322,791
Additional paid-in capital
29,687
29,687
Retained earnings
17,338
17,772
Accumulated other comprehensive loss, net of tax
(38,656)
(42,462)
Total stockholders’ equity
338,289
327,788
Total liabilities and stockholders’ equity
$         2,685,084
$         2,737,260
(1) Derived from audited December 31, 2024 Consolidated Financial Statements.
Blue Ridge Bankshares, Inc.
Consolidated Statements of Income (unaudited)
For the Three Months Ended 
(Dollars in thousands, except per common share data)
March 31, 2025
December 31, 2024
March 31, 2024
Interest income:
Interest and fees on loans
$                         31,154
$                          33,050
$                         38,346
Interest on securities, deposit accounts, and federal funds sold
4,196
4,882
4,185
Total interest income
35,350
37,932
42,531
Interest expense:
Interest on deposits
14,192
16,329
18,485
Interest on subordinated notes
736
736
560
Interest on FHLB and FRB borrowings
1,432
1,742
3,137
Total interest expense
16,360
18,807
22,182
Net interest income
18,990
19,125
20,349
Recovery of credit losses – loans

(500)

Recovery of credit losses – unfunded commitments

(500)
(1,000)
     Total recovery of credit losses

(1,000)
(1,000)
Net interest income after recovery of credit losses
18,990
20,125
21,349
Noninterest income:
Fair value adjustments of other equity investments
(73)
232
(7)
Residential mortgage banking income
956
1,698
2,664
Mortgage servicing rights
2
795
729
Loss on sale of mortgage servicing rights

(2,596)

Wealth and trust management
454
561
520
Service charges on deposit accounts
457
402
361
Increase in cash surrender value of BOLI
8
58
337
Bank and purchase card, net
567
615
242
Other
701
1,049
2,942
Total noninterest income
3,072
2,814
7,788
Noninterest expense:
Salaries and employee benefits
12,610
13,246
16,045
Occupancy and equipment
1,381
1,357
1,524
Technology and communications
2,784
2,645
2,279
Legal and regulatory filings
439
626
447
Advertising and marketing
191
231
297
Audit fees
578
1,071
1,155
FDIC insurance
1,097
1,139
1,377
Intangible amortization
244
255
287
Other contractual services
595
1,276
1,809
Other taxes and assessments
921
747
943
Regulatory remediation

273
2,644
Other
2,111
2,774
3,630
Total noninterest expense
22,951
25,640
32,437
Loss before income taxes
(889)
(2,701)
(3,300)
Income tax benefit
(455)
(698)
(407)
Net loss
$                            (434)
$                          (2,003)
$                         (2,893)
Basic and diluted loss per common share
$                           (0.01)
$                            (0.03)
$                           (0.15)
Quarter Summary of Selected Financial Data (unaudited)
As of and for the Three Months Ended
(Dollars and shares in thousands, except per common share data)
March 31,
December 31,
September 30,
June 30,
March 31,
Income Statement Data:
2025
2024
2024
2024
2024
Interest income
$                35,350
$                37,932
$                39,225
$                40,631
$                42,531
Interest expense
16,360
18,807
20,124
20,546
22,182
Net interest income
18,990
19,125
19,101
20,085
20,349
(Recovery of) provision for credit losses

(1,000)
(6,200)
3,100
(1,000)
Net interest income after (recovery of) provision for credit losses
18,990
20,125
25,301
16,985
21,349
Noninterest income
3,072
2,814
2,698
272
7,788
Noninterest expense
22,951
25,640
26,454
29,308
32,437
(Loss) income before income taxes
(889)
(2,701)
1,545
(12,051)
(3,300)
Income tax (benefit) expense 
(455)
(698)
599
(616)
(407)
Net (loss) income
(434)
(2,003)
946
(11,435)
(2,893)
Per Common Share Data:
(Loss) earnings per common share – basic and diluted
$                  (0.01)
$                  (0.03)
$                    0.01
$                  (0.47)
$                  (0.15)
Book value per common share 
3.85
3.86
4.30
4.15
9.24
Tangible book value per common share – Non-GAAP
3.82
3.82
4.25
4.10
9.04
Balance Sheet Data:
Total assets
$           2,685,084
$           2,737,260
$           2,944,691
$           2,933,072
$           3,076,187
Average assets
2,721,714
2,863,014
2,967,774
3,084,643
3,164,932
Average interest-earning assets
2,620,725
2,736,834
2,796,116
2,886,186
2,966,491
Loans held for investment (“LHFI”)
2,059,710
2,111,797
2,180,413
2,259,279
2,394,089
Allowance for credit losses  
23,126
23,023
25,453
28,036
35,025
Purchase accounting adjustments (discounts) on acquired loans
3,710
3,996
4,162
4,408
4,873
Loans held for sale
23,624
30,976
22,082
54,377
34,902
Securities available for sale, at fair value
325,401
312,035
314,784
307,427
314,394
Noninterest-bearing demand deposits
452,590
452,690
459,793
470,128
496,375
Fintech Banking-as-a-Service (“BaaS”) deposits
198
233
63,674
172,456
272,973
Total deposits
2,129,477
2,179,442
2,346,492
2,325,839
2,465,776
Subordinated notes, net 
39,773
39,789
39,806
39,822
39,838
FHLB and FRB advances
150,000
150,000
190,000
202,900
345,000
Average interest-bearing liabilities
1,899,315
2,021,814
2,121,402
2,228,071
2,411,683
Total stockholders’ equity
338,289
327,788
336,347
325,614
180,906
Average stockholders’ equity
329,684
330,343
326,880
318,042
183,901
Weighted average common shares outstanding – basic 
86,003
78,881
73,366
24,477
19,178
Weighted average common shares outstanding – diluted
86,003
78,881
87,086
24,477
19,178
Outstanding warrants to purchase common stock
`
28,690
31,452
26,196
26,196

Financial Ratios:
Return on average assets (1)
-0.06 %
-0.28 %
0.13 %
-1.48 %
-0.37 %
Return on average equity (1)
-0.53 %
-2.43 %
1.16 %
-14.38 %
-6.29 %
Total loan to deposit ratio
97.8 %
98.3 %
93.9 %
99.5 %
98.5 %
Held for investment loan-to-deposit ratio
96.7 %
96.9 %
92.9 %
97.1 %
97.1 %
Fintech BaaS deposits to total deposits ratio
0.0 %
0.0 %
2.7 %
7.4 %
11.1 %
Net interest margin (1)
2.90 %
2.80 %
2.74 %
2.79 %
2.75 %
Yield of LHFI (1)
5.70 %
5.83 %
5.80 %
5.80 %
6.02 %
Cost of deposits (1)
2.62 %
2.86 %
2.91 %
2.84 %
2.84 %
Cost of funds (1)
2.78 %
3.01 %
3.09 %
3.02 %
3.03 %
Efficiency ratio
104.0 %
116.9 %
121.4 %
144.0 %
115.3 %
Noninterest expense to total assets (1)
3.4 %
3.7 %
3.6 %
4.0 %
4.2 %
Regulatory remediation expenses

273
357
1,397
2,644
Capital and Asset Quality Ratios:
Average stockholders’ equity to average assets
12.1 %
11.5 %
11.0 %
10.3 %
5.8 %
Allowance for credit losses to LHFI
1.12 %
1.09 %
1.17 %
1.24 %
1.46 %
Ratio of net (recoveries) charge-offs to average loans outstanding (1)
-0.02 %
0.36 %
-0.61 %
1.81 %
0.14 %
Nonperforming loans to total assets
0.93 %
0.93 %
1.09 %
1.40 %
1.73 %
Nonperforming assets to total assets
0.94 %
0.94 %
1.09 %
1.40 %
1.73 %
Nonperforming loans to total loans
1.19 %
1.19 %
1.46 %
1.78 %
2.19 %
Reconciliation of Non-GAAP Financial Measures (unaudited):
As of and for the Three Months Ended
(Dollars and shares in thousands, except per common share data)
March 31,
December 31,
September 30,
June 30,
March 31,
Tangible Common Equity and Tangible Book Value Per Common Share:
2025
2024
2024
2024
2024
Total stockholders’ equity 
$              338,289
$              327,788
$              336,347
$              325,614
$              180,906
Less: preferred stock (including additional paid-in capital)


(20,605)
(20,605)

Common stockholders’ equity
$              338,289
$              327,788
$              315,742
$              305,009
$              180,906
Less: other intangibles, net of deferred tax liability (2)
(2,740)
(2,998)
(3,281)
(3,552)
(3,913)
Tangible common equity (Non-GAAP)
$              335,549
$              324,790
$              312,461
$              301,457
$              176,993
Total common shares outstanding 
87,778
84,973
73,474
73,504
19,584
Book value per common share 
$                    3.85
$                    3.86
$                    4.30
$                    4.15
$                    9.24
Tangible book value per common share (Non-GAAP)
3.82
3.82
4.25
4.10
9.04
Tangible Common Equity to Tangible Total Assets
Total assets 
$           2,685,084
$           2,737,260
$           2,944,691
$           2,933,072
$           3,076,187
Less: other intangibles, net of deferred tax liability (2)
(2,740)
(2,998)
(3,281)
(3,552)
(3,913)
Tangible total assets (Non-GAAP)
$           2,682,344
$           2,734,262
$           2,941,410
$           2,929,520
$           3,072,274
Tangible common equity (Non-GAAP)
$              335,549
$              324,790
$              312,461
$              301,456
$              176,993
Tangible common equity to tangible total assets (Non-GAAP)
12.5 %
11.9 %
10.6 %
10.3 %
5.8 %
(1) Annualized.
(2) Excludes mortgage servicing rights.
SOURCE Blue Ridge Bankshares, Inc.
Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank")…
Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or …
Banking & Financial Services
Earnings
Earnings
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