# EDGAR Filing Document

**Accession Number:** 0000842717
**File Stem:** 0001193125-25-264940
**Filing Date:** 2025-11
**Character Count:** 348246
**Document Hash:** a1879f39f1d34b14bc53a4fcc0a1ea7b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-264940.hdr.sgml**: 20251104

**ACCESSION NUMBER**: 0001193125-25-264940

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 85

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251104

**DATE AS OF CHANGE**: 20251104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BLUE RIDGE BANKSHARES, INC.
- **CENTRAL INDEX KEY:** 0000842717
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 541838100
- **STATE OF INCORPORATION:** VA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39165
- **FILM NUMBER:** 251450460

**BUSINESS ADDRESS:**
- **STREET 1:** 1801 BAYBERRY COURT
- **STREET 2:** SUITE 101
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23226
- **BUSINESS PHONE:** 888-331-6521

**MAIL ADDRESS:**
- **STREET 1:** 1801 BAYBERRY COURT
- **STREET 2:** SUITE 101
- **CITY:** RICHMOND
- **STATE:** VA
- **ZIP:** 23226

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BLUE RIDGE BANKSHARES INC
- **DATE OF NAME CHANGE:** 19881115

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

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**FORM** 10-Q

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**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **September 30,** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ___________ to ___________** 

**Commission File Number:** 001-39165

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BLUE RIDGE BANKSHARES, INC.

**(Exact name of registrant as specified in its charter)**

------

---

| | |
|:---|:---|
| Virginia | 54-1838100 |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |
| 1801 Bayberry Court, Suite 101<br>Richmond**,** Virginia | 23226 |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code: (**888**)** 331-6521

------

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, no par value | BRBS | NYSE **American** |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☒ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☒ |
| Emerging growth company | ☐ |  |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 31, 2025, the registrant had 91,488,661 shares of common stock, no par value per share, outstanding.

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---

| | | |
|:---|:---|:---|
| **Blue Ridge Bankshares, Inc.**<br>**Table of Contents** | **Blue Ridge Bankshares, Inc.**<br>**Table of Contents** | **Blue Ridge Bankshares, Inc.**<br>**Table of Contents** |
| **Item** |  | **Page** |
| **PART I** | [**<u>FINANCIAL INFORMATION</u>**](#part_i__financial_information) |  |
| &nbsp;&nbsp;&nbsp;Item 1. | &nbsp;&nbsp;&nbsp;[<u>Financial Statements</u>](#item_1_financial_statements) | 3 |
|  | &nbsp;&nbsp;&nbsp;[<u>Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024</u>](#consolidated_balance_sheets) | 3 |
|  | &nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (unaudited)</u>](#consolidated_statements_income2) | 4 |
|  | &nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024 (unaudited)</u>](#consolidated_statements_comprehensive_in) | 5 |
|  | &nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 (unaudited)</u>](#consolidated_statements_se_equity) | 6 |
|  | &nbsp;&nbsp;&nbsp;[<u>Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (unaudited)</u>](#consolidated_statements_cash_flows) | 8 |
|  | &nbsp;&nbsp;&nbsp;[<u>Notes to Consolidated Financial Statements</u>](#fis_notes_to_financial_statement) | 9 |
| &nbsp;&nbsp;&nbsp;Item 2. | &nbsp;&nbsp;&nbsp;[<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_analysis_f) | 35 |
| &nbsp;&nbsp;&nbsp;Item 3. | &nbsp;&nbsp;&nbsp;[<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#item_3_quantitative_qualitative_disclosu) | 54 |
| &nbsp;&nbsp;&nbsp;Item 4. | &nbsp;&nbsp;&nbsp;[<u>Controls and Procedures</u>](#item_4_controls_procedures) | 54 |
| &nbsp;&nbsp;&nbsp;**PART II** | &nbsp;&nbsp;&nbsp;[**<u>OTHER INFORMATION</u>**](#part_ii_or_information) | 56 |
| &nbsp;&nbsp;&nbsp;Item 1. | &nbsp;&nbsp;&nbsp;[<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 56 |
| &nbsp;&nbsp;&nbsp;Item 1A. | &nbsp;&nbsp;&nbsp;[<u>Risk Factors</u>](#item_1a_risk_factors) | 56 |
| &nbsp;&nbsp;&nbsp;Item 2. | &nbsp;&nbsp;&nbsp;[<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales_equity_securit) | 56 |
| &nbsp;&nbsp;&nbsp;Item 3. | &nbsp;&nbsp;&nbsp;[<u>Defaults Upon Senior Securities</u>](#item_3_defaults_upon_senior_securities) | 56 |
| &nbsp;&nbsp;&nbsp;Item 4. | &nbsp;&nbsp;&nbsp;[<u>Mine Safety Disclosures</u>](#item_4_mine_safety_disclosures) | 56 |
| &nbsp;&nbsp;&nbsp;Item 5. | &nbsp;&nbsp;&nbsp;[<u>Other Information</u>](#item_5_or_information) | 56 |
| &nbsp;&nbsp;&nbsp;Item 6. | &nbsp;&nbsp;&nbsp;[<u>Exhibits</u>](#item_6_exhibits) | 57 |
| &nbsp;&nbsp;&nbsp;[<u>Signatures</u>](#signatures) |  | 58 |

---

------

**PART I. FINAN** **CIAL INFORMATION**

**Item 1. Financial Statements**

**Blue Ridge Bankshares, Inc.**

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | ***(unaudited)*** |  |
| *(Dollars in thousands except share and per share data)* | **September 30, 2025** | **December 31, 2024 (1)** |
| **ASSETS** |  |  |
| Cash and due from banks | $121032 | $173533 |
| Restricted cash |  | 2459 |
| Federal funds sold | 7773 | 838 |
| Securities available for sale, at fair value | 341354 | 312035 |
| Restricted equity investments | 18988 | 19275 |
| Other equity investments | 4853 | 4834 |
| Other investments | 20804 | 19405 |
| Loans held for sale | 12819 | 30976 |
| Loans held for investment, net of deferred fees and costs | 1912726 | 2111797 |
| Less: allowance for credit losses | (20503) | (23023) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for investment, net | 1892223 | 2088774 |
| Accrued interest receivable | 11012 | 12537 |
| Premises and equipment, net | 21087 | 21394 |
| Right-of-use asset | 6927 | 7962 |
| Other intangible assets | 2941 | 3859 |
| Deferred tax asset, net | 24171 | 27312 |
| Other assets | 10965 | 12067 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2496949 | $2737260 |
| **LIABILITIES & STOCKHOLDERS' EQUITY** |  |  |
| Deposits: |  |  |
| Noninterest-bearing demand | $411100 | $452690 |
| Interest-bearing demand and money market | 621268 | 598875 |
| Savings | 100300 | 100857 |
| Time | 818411 | 1027020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 1951079 | 2179442 |
| FHLB borrowings | 150000 | 150000 |
| Subordinated notes, net | 14731 | 39789 |
| Lease liabilities | 7580 | 8613 |
| Other liabilities | 18054 | 31628 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2141444 | 2409472 |
| Commitments and contingencies (Note 7) |  |  |
| Stockholders' Equity: |  |  |
| Common stock, no par value; 150,000,000 shares authorized at September 30, 2025 and December 31, 2024, respectively; and 91,636,533 and 84,972,610 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 333356 | 322791 |
| Additional paid-in capital | 29687 | 29687 |
| Retained earnings | 24237 | 17772 |
| Accumulated other comprehensive loss, net of tax | (31775) | (42462) |
| Total stockholders' equity | 355505 | 327788 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $2496949 | $2737260 |

---

(1)Derived from audited December 31, 2024 Consolidated Financial Statements.

See accompanying notes to unaudited consolidated financial statements.

------

**Blue Ridge Bankshares, Inc.**

**Consolidated Statements of Operations**

*(unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| *(Dollars in thousands, except per share data)* | **September 30, 2025** | **September 30, 2024** | **September 30, 2025** | **September 30, 2024** |
| **INTEREST INCOME** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and fees on loans | $32000 | $34747 | $93884 | $109289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on securities, deposit accounts, and federal funds sold | 4213 | 4478 | 12415 | 13098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total interest income** | 36213 | 39225 | 106299 | 122387 |
| **INTEREST EXPENSE** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits | 12501 | 16984 | 39495 | 52741 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on subordinated notes | 338 | 566 | 1720 | 1678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest on FHLB and FRB borrowings | 1463 | 2574 | 4342 | 8433 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total interest expense** | 14302 | 20124 | 45557 | 62852 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 21911 | 19101 | 60742 | 59535 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovery of credit losses - loans | (1800) | (6000) | (2500) | (2400) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recovery of credit losses - unfunded commitments |  | (200) |  | (1700) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total recovery of credit losses** | (1800) | (6200) | (2500) | (4100) |
| **Net interest income after recovery of credit losses** | 23711 | 25301 | 63242 | 63635 |
| **NONINTEREST INCOME** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustments of other equity investments | 163 | 160 | 8 | (8384) |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage banking income | 5 | 2746 | 847 | 8214 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage servicing rights ("MSRs") | (48) | (2915) | (185) | (166) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) on sale of MSRs | 737 | (1011) | 1026 | (1011) |
| &nbsp;&nbsp;&nbsp;&nbsp;Wealth and trust management | 458 | 730 | 1321 | 1873 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 725 | 376 | 1903 | 1123 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in cash surrender value of bank owned life insurance | 9 | 127 | 25 | 797 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank and purchase card, net | 567 | 690 | 1760 | 1445 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of securities available for sale |  |  |  | (67) |
| &nbsp;&nbsp;&nbsp;&nbsp;Swap transaction fees | 258 |  | 258 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 959 | 1795 | 3186 | 6934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest income** | 3833 | 2698 | 10149 | 10758 |
| **NONINTEREST EXPENSE** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits | 11388 | 13938 | 36998 | 44918 |
| &nbsp;&nbsp;&nbsp;&nbsp;Occupancy and equipment | 1190 | 1394 | 3700 | 4221 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology and communication | 2314 | 2767 | 7663 | 7378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal and regulatory filings | 1008 | 614 | 1842 | 1424 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising and marketing | 267 | 222 | 586 | 702 |
| &nbsp;&nbsp;&nbsp;&nbsp;Audit fees | 161 | 498 | 1198 | 1948 |
| &nbsp;&nbsp;&nbsp;&nbsp;FDIC insurance | 239 | 1130 | 2363 | 4324 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible amortization | 223 | 265 | 701 | 828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other contractual services | 645 | 1634 | 1673 | 5299 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other taxes and assessments | 895 | 759 | 2771 | 2290 |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulatory remediation |  | 357 |  | 4398 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1711 | 2876 | 5506 | 10469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest expense** | 20041 | 26454 | 65001 | 88199 |
| **Income (loss) before income tax expense** | 7503 | 1545 | 8390 | (13806) |
| Income tax expense (benefit) | 1900 | 599 | 1925 | (424) |
| **Net income (loss)** | $5603 | $946 | $6465 | $(13382) |
| **Basic and diluted income (loss) per common share** | $0.06 | $0.01 | $0.07 | $(0.34) |

---

See accompanying notes to unaudited consolidated financial statements.

------

**Blue Ridge Bankshares, Inc.**

**Consolidated Statements of Comprehensive Income (Loss)** 

*(unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended** | **For the three months ended** | **For the nine months ended** | **For the nine months ended** |
| *(Dollars in thousands)* | **September 30, 2025** | **September 30, 2024** | **September 30, 2025** | **September 30, 2024** |
| Net income (loss) | $5603 | $946 | $6465 | $(13382) |
| Other comprehensive income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross unrealized gains on securities available for sale arising during the period | 8901 | 12803 | 14083 | 13814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense | (1986) | (2803) | (3396) | (3293) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net loss on securities available for sale included in net loss |  |  |  | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax benefit |  |  |  | (15) |
| Other comprehensive income, net of tax | 6915 | 10000 | 10687 | 10573 |
| Comprehensive net income (loss) | $12518 | $10946 | $17152 | $(2809) |

---

See accompanying notes to unaudited consolidated financial statements.

------

**Blue Ridge Bankshares, Inc.**

**Consolidated Statements of Changes in Stockholders' Equity**

*(unaudited)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** |
| *(Dollars in thousands)* | **Shares of Common Stock** | **Common Stock** | **Additional Paid-in Capital** | **Retained Earnings** | **Accumulated Other Comprehensive (Loss) Income, net** | **Total** |
| Balance at beginning of period | 84972610 | $322791 | $29687 | $17772 | $(42462) | $327788 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 6465 |  | 6465 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | 10687 | 10687 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercises of warrants to purchase common stock | 3903000 | 9758 |  |  |  | 9758 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | (659949) | (2767) |  |  |  | (2767) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards, net of forfeitures | 3420872 | 3574 |  |  |  | 3574 |
| Balance at end of period | 91636533 | $333356 | $29687 | $24237 | $(31775) | $355505 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** |
| *(Dollars in thousands)* | **Shares of Common Stock** | **Common Stock** | **Additional Paid-in Capital** | **Retained Earnings** | **Accumulated Other Comprehensive (Loss) Income, net** | **Total** |
| Balance at beginning of period | 92174530 | $334634 | $29687 | $18634 | $(38690) | $344265 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  | 5603 |  | 5603 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  | 6915 | 6915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercises of warrants to purchase common stock | 125000 | 313 |  |  |  | 313 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | (659949) | (2767) |  |  |  | (2767) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards, net of forfeitures | (3048) | 1176 |  |  |  | 1176 |
| Balance at end of period | 91636533 | $333356 | $29687 | $24237 | $(31775) | $355505 |

---

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** |
| *(Dollars in thousands)* | **Shares of Common Stock** | **Shares of Series C Preferred Stock** | **Common Stock** | **Series C Preferred Stock** | **Additional Paid-in Capital** | **Retained Earnings** | **Accumulated Other Comprehensive (Loss) Income, net** | **Total** |
| Balance at beginning of period | 19198379 |  | $197636 | $— | $252 | $33157 | $(45056) | $185989 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  | (13382) |  | (13382) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  |  |  | 10573 | 10573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of stock and warrants from Private Placements, net of issuance costs | 53922000 | 2732 | 102108 | 137 | 49903 |  |  | 152148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards, net of forfeitures | 353768 |  | 1019 |  |  |  |  | 1019 |
| Balance at end of period | 73474147 | 2732 | $300763 | $137 | $50155 | $19775 | $(34483) | $336347 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** |
| *(Dollars in thousands)* | **Shares of Common Stock** | **Shares of Series C Preferred Stock** | **Common Stock** | **Series C Preferred Stock** | **Additional Paid-in Capital** | **Retained Earnings** | **Accumulated Other Comprehensive (Loss) Income, net** | **Total** |
| Balance at beginning of period | 73503647 | 2732 | $300976 | $137 | $50155 | $18829 | $(44483) | $325614 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  | 946 |  | 946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  |  |  | 10000 | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance costs from Private Placements |  |  | (326) |  |  |  |  | (326) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards, net of forfeitures | (29500) |  | 113 |  |  |  |  | 113 |
| Balance at end of period | 73474147 | 2732 | $300763 | $137 | $50155 | $19775 | $(34483) | $336347 |

---

See accompanying notes to unaudited consolidated financial statements.

------

**Blue Ridge Bankshares, Inc.**

**Consolidated Statements of Cash Flows**

*(unaudited)*

---

| | | |
|:---|:---|:---|
|  | **For the nine months ended** | **For the nine months ended** |
| *(Dollars in thousands)* | **September 30, 2025** | **September 30, 2024** |
| **Cash Flows From Operating Activities** |  |  |
| Net income (loss) | $6465 | $(13382) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1028 | 1171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense | 3396 | 3308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recovery of credit losses - loans | (2500) | (2400) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recovery of credit losses - unfunded commitments |  | (1700) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of fair value adjustments on acquired loans, time deposits, and subordinated notes | (1518) | (1238) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustments of other equity investments | (8) | 8384 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net adjustments attributable to MSRs | 185 | 166 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Income) loss on sale of MSRs | (1026) | 1011 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized loss on sale of securities available for sale |  | 67 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in cash surrender value of bank owned life insurance | (25) | (797) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of other loans held for sale |  | 25250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of mortgage loans held for sale | 42370 | 183868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage loans held for sale, originated | (34168) | (177632) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of mortgage loans | (532) | (1469) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of guaranteed government loans held for sale |  | 1626 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guaranteed government loans held for sale, originated |  | (293) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of guaranteed government loans |  | (102) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on disposal of premises and equipment, other investments, other assets, and other real estate owned | 256 | (252) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment amortization expense, net | 179 | 409 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of subordinated debt issuance costs | 189 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible amortization | 701 | 828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accrued interest receivable | 1525 | 1796 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in other assets | 11587 | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in other liabilities | (14607) | (16932) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash provided by operating activities** | 13497 | 11799 |
| **Cash Flows From Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of securities available for sale | (34509) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from calls, sales, paydowns, and maturities of securities available for sale | 19446 | 19770 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (increase) decrease in federal funds sold | (6935) | 1541 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of premises and equipment, other investments, other assets, MSRs, and other real estate owned | 1132 | 18252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital calls of SBIC funds and other investments | (1886) | (2684) |
| &nbsp;&nbsp;&nbsp;&nbsp;Nonincome distributions from limited liability companies | 503 | 717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net decrease in loans held for investment | 200462 | 236445 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from surrender of bank owned life insurance policies | 212 | 34297 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net change in restricted equity and other investments | 260 | (2832) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of premises and equipment | (852) | (454) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash provided by investing activities** | 177833 | 305052 |
| **Cash Flows From Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net decrease in demand, savings, and other interest-bearing deposits | (19754) | (361678) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (decrease) increase in time deposits | (208527) | 142386 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB advances |  | 726000 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB repayments |  | (746000) |
| &nbsp;&nbsp;&nbsp;&nbsp;FRB repayments |  | (65000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated note repayments | (25000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Private Placements, net of issuance costs |  | 152148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of common stock | (2767) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercises of warrants to purchase common stock | 9758 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash used in financing activities** | (246290) | (152144) |
| **Net (decrease) increase in cash and due from banks** | (54960) | 164707 |
| **Cash and due from banks and restricted cash at beginning of period** | 175992 | 121151 |
| **Cash and due from banks and restricted cash at end of period** | $121032 | $285858 |
| **Supplemental Schedule of Cash Flow Information** |  |  |
| Cash paid for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | $48517 | $64704 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes | $2920 | $— |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for investment transferred to other non-real estate owned | $222 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gains on securities available for sale | $14083 | $13814 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards, net of forfeitures | $3574 | $1019 |

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See accompanying notes to unaudited consolidated financial statements.

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**Notes to Consolidated Financial Statements (Unaudited)**

**Note 1 – Organization and Basis of Presentation**

Blue Ridge Bankshares, Inc. (the "Company") conducts its business activities primarily through its wholly-owned subsidiary bank, Blue Ridge Bank, National Association (the "Bank") and its wealth and trust management subsidiary, BRB Financial Group, Inc. (the "Financial Group"). The Company exists primarily for the purposes of holding the stock of its subsidiaries, the Bank and the Financial Group.

The accompanying unaudited consolidated financial statements of the Company include the accounts of the Bank and the Financial Group and were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and general practices within the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Form 10-K").

The Company's significant accounting policies are disclosed in Note 2 of the audited financial statements for the year ended December 31, 2024 included in the 2024 Form 10-K. There have been no significant changes to the application of significant accounting policies since December 31, 2024.

Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current year presentations. The reclassifications had no effect on net income, net income per share, total assets, total liabilities, or stockholders' equity as previously reported.

*Share Repurchase Program*

On August 25, 2025, the Company announced the adoption of a share repurchase program (the "Repurchase Program") pursuant to which the Company may purchase up to $15.0 million of the Company's common stock.

Repurchases may be made in open market purchases, block trades, or privately negotiated transactions, including upon the exercise of outstanding warrants to purchase common stock. The Company cannot predict when or if it will repurchase additional shares of common stock as the Repurchase Program will depend on a number of factors, including constraints specified in any Securities and Exchange Commission Rule 10b5-1 trading plans, price, and general business and market conditions.

During the three months ended September 30, 2025, the Company repurchased 659,949 shares of common stock at a weighted average price of $4.16 per share totaling $2.8 million.

For additional information regarding the Repurchase Program, see Part II, Item 2 of this Form 10-Q.

*Sale of Mortgage Division*

On March 27, 2025, the Company completed the previously announced sale of its mortgage division operating as Monarch Mortgage. The sale, which included the transfer of certain assets and leases to an unrelated mortgage company, resulted in a $0.2 million loss, reported in other noninterest income.

This transaction did not meet the criteria for classification as a discontinued operation under Accounting Standards Codification ("ASC") 205-20, Presentation of Financial Statements – Discontinued Operations, and is therefore reported within continuing operations as of and for all periods stated herein.

*Private Placements*

In the second quarter of 2024, the Company closed private placements in which it issued and sold shares of its common and preferred stock for gross proceeds of $161.6 million (collectively, the "Private Placements"). In June 2024, the Company's shareholders approved an amendment to the Company's articles of incorporation authorizing the issuance of additional shares of common stock, thus enabling the conversion of the preferred shares issued in the Private Placements into shares of the Company's common stock. The conversion occurred on June 28, 2024 and November 7, 2024. Capital proceeds received, net of issuance costs, from the Private Placements totaled $152.1 million. The Private Placements also included the issuance of warrants to purchase common stock at $2.50 per share.

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The table below presents information pertaining to warrants to purchase the Company's common stock as of and for the period stated.

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| | | | |
|:---|:---|:---|:---|
|  | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** |
|  | **Warrants Issued April 3, 2024** | **Warrants Issued June 13, 2024** | **Total Warrants** |
| Warrants outstanding at beginning of period | 29027999 | 2424000 | 31451999 |
| Warrants exercised during the period (1) | (3903000) |  | (3903000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants outstanding at end of period | 25124999 | 2424000 | 27548999 |
| Remaining exercise term (years) | 3.51 | 3.70 |  |
| (1) Warrants to purchase 125,000 shares of common stock were exercised during the three months ended September 30, 2025. | (1) Warrants to purchase 125,000 shares of common stock were exercised during the three months ended September 30, 2025. | (1) Warrants to purchase 125,000 shares of common stock were exercised during the three months ended September 30, 2025. | (1) Warrants to purchase 125,000 shares of common stock were exercised during the three months ended September 30, 2025. |

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*Regulatory Matters*

The Bank entered into a consent order with the Office of the Comptroller of the Currency (the "OCC") on January 24, 2024 (the "Consent Order"), which generally incorporates the provisions of the formal written agreement (the "Written Agreement") entered into between the Bank and the OCC on August 29, 2022, as well as adding new provisions. The Written Agreement principally concerned the Bank's fintech operations and required the Bank to continue enhancing its controls for assessing and managing the third-party, Bank Secrecy Act/Anti-Money Laundering, and information technology risks stemming from its fintech partnerships and adds time frames by which certain of the directives are required. The Consent Order also requires the Bank to maintain a leverage ratio of 10.0% and a total capital ratio of 13.0%, referred to as minimum capital ratios. As of September 30, 2025 and December 31, 2024, the Bank's capital ratios exceeded these minimum capital ratios. The Company believes it has made significant progress towards meeting the requirements of the Consent Order. Complete copies of the Written Agreement and the Consent Order are included as Exhibits 10.9 and 10.10, respectively, to the 2024 Form 10-K.

*Recent Accounting Pronouncements (Issued But Not Adopted)*

<u>Improvements to Income Tax Disclosures</u>. In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09–Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This standard was effective for annual periods beginning after December 15, 2024, with early adoption permitted. The ASU requires prospective application by providing the revised disclosures for the period ending December 31, 2025, and continuing to provide the pre-ASU disclosures for the prior periods, or alternately applying the amendments retrospectively by providing the revised disclosures for all periods presented. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements but will result in expanded income tax-related disclosures beginning with its 2025 Form 10-K.

<u>Improvements to Expense Disaggregation Disclosures.</u> In January 2025, the FASB issued ASU 2025-01–Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which amended the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements but will result in expanded income statement expense disaggregation disclosures beginning with its financial statements for the year ending December 31, 2027.

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**Note 2 – Investment Securities and Other Investments**

Investment securities classified as available for sale ("AFS") are carried at fair value in the consolidated balance sheets. The following tables present amortized cost, fair values, and gross unrealized gains and losses of investment securities AFS as of the dates stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| *(Dollars in thousands)* | **Amortized<br>Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Fair<br>Value** |
| Available for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage backed securities | $219457 | $406 | $(27369) | $192494 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and agencies | 78905 |  | (6866) | 72039 |
| &nbsp;&nbsp;&nbsp;&nbsp;State and municipal | 49352 | 1 | (5060) | 44293 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 34738 | 67 | (2277) | 32528 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | $382452 | $474 | $(41572) | $341354 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **Amortized<br>Cost** | **Gross<br>Unrealized<br>Gains** | **Gross<br>Unrealized<br>Losses** | **Fair<br>Value** |
| Available for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage backed securities | $199453 | $— | $(35015) | $164438 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and agencies | 79430 |  | (9975) | 69455 |
| &nbsp;&nbsp;&nbsp;&nbsp;State and municipal | 50233 |  | (7296) | 42937 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 38453 |  | (3248) | 35205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment securities | $367569 | $— | $(55534) | $312035 |

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As of September 30, 2025 and December 31, 2024, securities with a fair value of $176.6 million and $268.9 million, respectively, were pledged to secure the Bank's borrowings facility with the Federal Home Loan Bank of Atlanta ("FHLB").

As of September 30, 2025 and December 31, 2024, securities with fair values of $0 and $16.3 million, respectively, were pledged to secure borrowing capacity with the Federal Reserve Bank of Richmond ("FRB") Discount Window.

The following table presents the amortized cost and fair value of securities available for sale by contractual maturity as of the date stated. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** |
| *(Dollars in thousands)* | **Amortized<br>Cost** | **Fair <br>Value** |
| Due in one year or less | $9890 | $9721 |
| Due after one year through five years | 60979 | 57503 |
| Due after five years through ten years | 95584 | 85934 |
| Due after ten years | 215999 | 188196 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $382452 | $341354 |

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The following tables present fair values and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates stated. The reference point for determining when securities are in an unrealized loss position is period-end; therefore, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period. Excluded from the tables below were securities whose amortized cost equaled their fair value or were in an unrealized gain position as

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of the dates stated totaling $39.4 million and $1.1 million as of September 30, 2025 and December 31, 2024, respectively.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  |  | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** | **Total** | **Total** |
| *(Dollars in thousands)* | **Number of Securities** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** |
| Mortgage backed securities | 82 | $11218 | $(9) | $149494 | $(27360) | $160712 | $(27369) |
| U.S. Treasury and agencies | 29 |  |  | 72039 | (6866) | 72039 | (6866) |
| State and municipal | 56 |  |  | 41417 | (5060) | 41417 | (5060) |
| Corporate bonds | 33 | 1298 | (100) | 26448 | (2177) | 27746 | (2277) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 200 | $12516 | $(109) | $289398 | $(41463) | $301914 | $(41572) |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  | **Less than 12 Months** | **Less than 12 Months** | **12 Months or Greater** | **12 Months or Greater** | **Total** | **Total** |
| *(Dollars in thousands)* | **Number of Securities** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** | **Fair<br>Value** | **Unrealized<br>Losses** |
| Mortgage backed securities | 85 | $11637 | $(107) | $152802 | $(34908) | $164439 | $(35015) |
| U.S. Treasury and agencies | 29 |  |  | 69453 | (9975) | 69453 | (9975) |
| State and municipal | 70 | 2040 | (42) | 40531 | (7254) | 42571 | (7296) |
| Corporate bonds | 42 | 3803 | (21) | 30653 | (3227) | 34456 | (3248) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 226 | $17480 | $(170) | $293439 | $(55364) | $310919 | $(55534) |

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At September 30, 2025 and December 31, 2024, the majority of securities in an unrealized loss position were of investment grade; however, a portion of the portfolio does not have a third-party investment grade available (securities with fair values of $24.2 million and $29.3 million, respectively). These securities were primarily subordinated debt instruments issued by bank holding companies that are classified as corporate bonds in the tables above. The Company evaluated the issuers of these individually, observing that each issuer had strong capital ratios and profitability, thereby indicating limited exposure to asset quality or liquidity issues and resulted in no identifiable credit losses. Contractual cash flows for mortgage backed securities and U.S. Treasury and agencies are guaranteed and/or funded by the U.S. government and government agencies. State and municipal securities showed no indication that the contractual cash flows would not be received when due. The Company does not intend to sell, nor does it believe that it will be required to sell, any of its impaired securities prior to the recovery of the amortized cost. As of September 30, 2025 and December 31, 2024, there was no allowance for credit losses ("ACL") for the Company's securities AFS portfolio. Any impairment that has not been recorded through an ACL is recognized in accumulated other comprehensive income (loss).

Restricted equity investments consisted of stock in the FHLB (carrying value of $9.1 million and $9.4 million as of September 30, 2025 and December 31, 2024, respectively), FRB stock (carrying value of $9.4 million at both September 30, 2025 and December 31, 2024), and stock in the Company's correspondent bank (carrying value of $0.5 million at both September 30, 2025 and December 31, 2024). Restricted equity investments are carried at cost.

The Company has various other equity investments, including an investment in a fintech company and limited partnerships, totaling $4.9 million and $4.8 million as of September 30, 2025 and December 31, 2024, respectively.

The Company also holds other investments, primarily in early-stage focused investment funds, which totaled $20.8 million and $19.4 million as of September 30, 2025 and December 31, 2024, respectively, and are reported in other investments on the consolidated balance sheets.

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**Note 3 – Loans and ACL**

The following table presents the amortized cost of loans held for investment as of the dates stated.

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| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | **September 30, 2025** | **December 31, 2024** |
| Commercial and industrial | $276609 | $354904 |
| Real estate – construction, commercial | 73473 | 114491 |
| Real estate – construction, residential | 50892 | 51807 |
| Real estate – commercial | 818101 | 847842 |
| Real estate – residential | 654030 | 692253 |
| Real estate – farmland | 4645 | 5520 |
| Consumer | 33778 | 43938 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross loans held for investment | 1911528 | 2110755 |
| Deferred costs, net of loan fees | 1198 | 1042 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1912726 | $2111797 |

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The Company has pledged certain commercial and residential mortgage loans as collateral for borrowings with the FHLB. Loans totaling $736.0 million and $797.7 million were pledged with the FHLB as of September 30, 2025 and December 31, 2024, respectively. Additionally, the Company has pledged certain construction and commercial and industrial loans totaling $75.4 million and $91.6 million as of September 30, 2025 and December 31, 2024, respectively, as collateral for borrowings with the FRB Discount Window.

The following tables present the aging of the recorded investment of loans held for investment by loan category as of the dates stated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| *(Dollars in thousands)* | **Current<br>Loans** | **30-59<br>Days<br>Past Due** | **60-89<br>Days<br>Past Due** | **Greater than<br>90 Days Past<br>Due &<br>Accruing** | **Nonaccrual** | **Total<br>Loans** |
| Commercial and industrial | $263961 | $1328 | $1171 | $1700 | $8449 | $276609 |
| Real estate – construction, commercial | 73237 | 236 |  |  |  | 73473 |
| Real estate – construction, residential | 50738 | 154 |  |  |  | 50892 |
| Real estate – commercial | 809216 | 303 | 831 |  | 7751 | 818101 |
| Real estate – residential | 642241 | 536 | 1351 | 2350 | 7552 | 654030 |
| Real estate – farmland | 4645 |  |  |  |  | 4645 |
| Consumer | 31831 | 995 | 175 | 202 | 575 | 33778 |
| Deferred costs, net of loan fees | 1198 |  |  |  |  | 1198 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1877067 | $3552 | $3528 | $4252 | $24327 | $1912726 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **Current<br>Loans** | **30-59<br>Days<br>Past Due** | **60-89<br>Days<br>Past Due** | **Greater than<br>90 Days Past<br>Due &<br>Accruing** | **Nonaccrual** | **Total<br>Loans** |
| Commercial and industrial | $339893 | $1335 | $1232 | $2259 | $10185 | $354904 |
| Real estate – construction, commercial | 114238 |  | 33 |  | 220 | 114491 |
| Real estate – construction, residential | 51807 |  |  |  |  | 51807 |
| Real estate – commercial | 842982 | 625 |  |  | 4235 | 847842 |
| Real estate – residential | 680406 | 3874 | 476 |  | 7497 | 692253 |
| Real estate – farmland | 5520 |  |  |  |  | 5520 |
| Consumer | 41295 | 1296 | 300 | 227 | 820 | 43938 |
| Deferred costs, net of loan fees | 1042 |  |  |  |  | 1042 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $2077183 | $7130 | $2041 | $2486 | $22957 | $2111797 |

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The following tables present the recorded investment of nonaccrual loans held for investment with and without an ACL by loan category as of the dates stated.

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| | | | |
|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| *(Dollars in thousands)* | **Nonaccrual Loans with No ACL** | **Nonaccrual Loans with an ACL** | **Total Nonaccrual Loans** |
| Commercial and industrial | $481 | $7968 | $8449 |
| Real estate – commercial | 5699 | 2052 | 7751 |
| Real estate – residential | 2875 | 4677 | 7552 |
| Consumer |  | 575 | 575 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $9055 | $15272 | $24327 |

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **Nonaccrual Loans with No ACL** | **Nonaccrual Loans with an ACL** | **Total Nonaccrual Loans** |
| Commercial and industrial | $778 | $9407 | $10185 |
| Real estate – construction, commercial |  | 220 | 220 |
| Real estate – commercial |  | 4235 | 4235 |
| Real estate – residential | 1669 | 5828 | 7497 |
| Consumer |  | 820 | 820 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $2447 | $20510 | $22957 |

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The Company recognized $289 thousand and $437 thousand of interest income on nonaccrual loans during the three and nine months ended September 30, 2025, respectively, compared to $275 thousand and $463 thousand for the same respective periods in 2024.

The following table presents accrued interest receivable by loan type reversed from interest income associated with loans held for investment that were placed on nonaccrual status for the periods stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| *(Dollars in thousands)* | **2025** | **2024** | **2025** | **2024** |
| Commercial and industrial | $28 | $165 | $86 | $381 |
| Real estate – construction, commercial |  | 35 |  | 60 |
| Real estate – commercial | 27 | 77 | 29 | 175 |
| Real estate – residential | 35 | 52 | 102 | 104 |
| Consumer | 7 | 5 | 14 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $97 | $334 | $231 | $730 |

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<u>Credit Quality Indicators</u>

The Company segments loans held for investment into risk categories based on relevant information about the expected ability of borrowers to repay debt, such as current financial information, historical payment performance, experience, collateral adequacy, credit documentation, and current economic trends, among other factors. Management assigns loan risk grades by a numerical system as an indication of credit quality of its portfolio of loans held for investment. The Company uses the following definitions for loan risk ratings and periodically evaluates the appropriateness of these ratings across its loan portfolio. Independent third-party loan reviews are performed periodically on the Company's loan portfolio and such reviews validate management's determination of loan risk grades. Bank regulatory agencies also periodically review the Company's loan portfolio, including loan risk grades and may, on occasion, change a grade based on their judgment of the facts at the time of review.

**Risk Grade 1 – Strong:** This grade is for the strongest of loans. These loans are extended to individuals or businesses where the probability of default is extremely low to the Bank and secured with liquid collateral where the loss given default is unlikely because of the source of repayment such as a lien on a deposit account held at the Bank. Character, credit history, and ability of individuals or company principals are excellent. High liquidity, minimum risk, strong ratios, and low servicing cost are present.

**Risk Grade 2 – Minimal:** This grade is for loans deemed exceptionally strong. These loans are within established guidelines and where the borrowers have documented significant overall financial strength with consistent and

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predictable cash flows. These loans have excellent sources of repayment, significant balance sheet liquidity, no significant identifiable risk of collection, and conform in all respects to policy, underwriting standards, and federal and state regulations (no exceptions of any kind). In addition, guarantor support, when provided, is deemed as excellent.

**Risk Grade 3 – Acceptable:** This grade is for loans deemed strong. These loans have adequate sources of repayment, with a minimal identifiable risk of collection. Generally, loans assigned this risk grade will demonstrate the following characteristics: (1) conformity in all respects with policy, guidelines, underwriting standards, and federal and state regulations (no exceptions of any kind), (2) documented historical cash flow that meets or exceeds required minimum guidelines, or that can be supplemented with verifiable cash flow from other sources, and (3) adequate secondary sources to liquidate the debt. In addition, guarantor support, when provided, is deemed strong.

**Risk Grade 4 – Satisfactory:** This grade is for satisfactory loans containing more but deemed acceptable risk, and where the borrower is deemed as sound. These loans have adequate sources of repayment, with minimal identifiable risk of collection. Loans assigned with this risk grade will demonstrate the following characteristics: (1) general conformity to the Bank's underwriting requirements, with limited exceptions to policy, product, or underwriting guidelines, and all exceptions noted have documented mitigating factors that offset any additional risk associated with the exceptions noted, (2) documented historical cash flow that meets or exceeds required minimum guidelines, or that can be supplemented with verifiable cash flow from other sources, and (3) adequate secondary sources to liquidate the debt. In addition, guarantor support, when provided, is deemed as satisfactory.

**Risk Grade 5 – Watch:** This grade is for satisfactory loans containing acceptable but elevated risk. These loans are characterized by borrowers who exhibit signs of financial stress or are experiencing unstable or unfavorable change(s) adversely impacting the current or expected financial condition. The borrower's management is considered to be satisfactory; however, the collateral securing the loan may have decreased in value, the debt service coverage ratio is inconsistent or breakeven but mostly positive, and/or guarantor support, if any, is deemed limited or marginal. Loans classified as Watch warrant additional monitoring by management.

**Risk Grade 6 – Special Mention:** This grade is for loans that have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the Bank's credit position potentially at a future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special Mention credits typically do not conform to established guidelines and/or exceptions without mitigating factors, or have emerging weaknesses that may or may not be remedied with the passage of time.

**Risk Grade 7 – Substandard:** This grade is for loans inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. The probability of default is highly likely and may have already occurred. Loans in this category are characterized by deterioration in quality exhibited by any number of well-defined weaknesses requiring corrective action. The weaknesses may include, but are not limited to: (1) current or expected unprofitable operations, (2) inadequate debt service coverage, (3) declining or inadequate liquidity, (4) improper loan structure, (5) questionable or weak repayment sources, and (6) lack of well-defined secondary repayment source. There is a distinct possibility of loss and the Bank will sustain loss if the deficiencies remain uncorrected.

**Risk Grade 8 – Doubtful:** Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the Bank's position, which can include, but not limited to (1) an injection of capital, (2) alternative financing, and (3) liquidation of assets or the pledging of additional collateral. Doubtful is a temporary grade, where the Bank expects a loss but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is recorded and charged off against the ACL.

**Risk Grade 9 – Loss:** Loans classified Loss are deemed uncollectible and of such little value that continuance as assets held for investment is no longer warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer charging off the worthless loan, even though partial recovery may occur in the future. Probable loss amounts, either principal or interest, deemed uncollectible are charged off promptly against the ACL.

The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of September 30, 2025. There were no loans classified as doubtful or loss (risk grades 8 and 9,

------

respectively) as of the same date. Also presented are current period gross charge-offs by loan type for the nine months ended September 30, 2025.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** |  |  |
| *(Dollars in thousands)* | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Revolving Loans** | **Total** |
| Commercial and industrial |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | $17449 | $8903 | $11166 | $45179 | $10938 | $23464 | $98045 | $215144 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 671 | 353 | 1030 | 23518 | 3881 | 4013 | 5046 | 38512 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 |  |  | 1804 | 4702 | 12801 | 1879 | 1767 | 22953 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 18120 | 9256 | 14000 | 73399 | 27620 | 29356 | 104858 | 276609 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-offs |  | 346 | 368 | 5505 | 12 | 161 | 50 | 6442 |
| Real estate – construction, commercial |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 13619 | 5497 | 2191 | 32029 | 3660 | 4332 | 56 | 61384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 176 |  | 1078 |  | 690 | 10136 |  | 12080 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 |  |  |  |  | 9 |  |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 13795 | 5497 | 3269 | 32029 | 4359 | 14468 | 56 | 73473 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-offs |  |  |  |  |  |  |  |  |
| Real estate – construction, residential |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 15774 | 10066 | 519 | 75 | 94 | 73 | 300 | 26901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 338 |  |  | 3186 | 20000 |  |  | 23524 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 |  |  |  | 467 |  |  |  | 467 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 16112 | 10066 | 519 | 3728 | 20094 | 73 | 300 | 50892 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-offs |  |  |  |  |  |  |  |  |
| Real estate – commercial |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 40542 | 4554 | 29808 | 200617 | 103935 | 232286 | 17397 | 629139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 |  | 513 | 3368 | 81731 | 8416 | 47878 | 4862 | 146768 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 |  | 1555 |  | 31354 | 8566 | 719 |  | 42194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 40542 | 6622 | 33176 | 313702 | 120917 | 280883 | 22259 | 818101 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-offs |  |  |  |  | 374 | 63 |  | 437 |
| Real estate – residential |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 4004 | 3062 | 68780 | 210258 | 105871 | 185953 | 54206 | 632134 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 805 | 453 | 266 | 781 | 1394 | 5390 | 209 | 9298 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 | 319 |  | 1104 | 3492 | 1264 | 5823 | 596 | 12598 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 5128 | 3515 | 70150 | 214531 | 108529 | 197166 | 55011 | 654030 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-offs |  |  | 65 |  |  | 43 | 107 | 215 |
| Real estate – farmland |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 |  | 144 |  | 990 | 1198 | 1883 | 147 | 4362 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 62 |  | 126 |  | 95 |  |  | 283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 62 | 144 | 126 | 990 | 1293 | 1883 | 147 | 4645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-offs |  |  |  |  |  |  |  |  |
| Consumer |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 3714 | 3879 | 11982 | 5900 | 820 | 589 | 5473 | 32357 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 |  | 202 | 165 | 199 | 28 | 26 |  | 620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 |  | 43 | 233 | 343 | 137 | 45 |  | 801 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 3714 | 4124 | 12380 | 6442 | 985 | 660 | 5473 | 33778 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period gross charge-offs | 156 | 382 | 191 | 1277 | 53 | 11 |  | 2070 |
| Total Loans |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | $95102 | $36105 | $124446 | $495048 | $226516 | $448580 | $175624 | $1601421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 2052 | 1521 | 6033 | 109415 | 34504 | 67443 | 10117 | 231085 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 | 319 | 1598 | 3141 | 40358 | 22777 | 8466 | 2363 | 79022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $97473 | $39224 | $133620 | $644821 | $283797 | $524489 | $188104 | $1911528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current period gross charge-offs | $156 | $728 | $624 | $6782 | $439 | $278 | $157 | $9164 |

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The following table presents the recorded investment of loans held for investment by internal loan risk grade by year of origination as of December 31, 2024. There were no loans classified as loss (risk grade 9) as of the same date.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** | **Term Loans Recorded Investment Basis by Origination Year** |  |  |
| *(Dollars in thousands)* | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Revolving Loans** | **Total** |
| Commercial and industrial |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | $13883 | $13559 | $64530 | $14600 | $17405 | $15760 | $98867 | $238604 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 672 | 24430 | 37503 | 10201 | 5183 | 979 | 15092 | 94060 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 | 944 | 2248 | 5173 | 10462 | 562 | 1247 | 1521 | 22157 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 8 |  |  |  | 82 |  | 1 |  | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 15499 | 40237 | 107206 | 35345 | 23150 | 17987 | 115480 | 354904 |
| Real estate – construction, commercial |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 6219 | 6277 | 65560 | 7776 | 5405 | 4792 | 399 | 96428 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 |  | 1090 |  | 7567 | 4770 | 4235 |  | 17662 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 |  | 116 |  | 24 |  | 261 |  | 401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 6219 | 7483 | 65560 | 15367 | 10175 | 9288 | 399 | 114491 |
| Real estate – construction, residential |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 19574 | 8861 | 7837 | 13971 |  | 57 | 990 | 51290 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 193 |  |  |  |  |  |  | 193 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 |  | 169 | 155 |  |  |  |  | 324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 19767 | 9030 | 7992 | 13971 |  | 57 | 990 | 51807 |
| Real estate – commercial |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 4747 | 34698 | 245563 | 118435 | 142211 | 133856 | 21323 | 700833 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 535 | 5092 | 64677 | 7002 | 14604 | 23104 | 4184 | 119198 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 | 1565 |  | 9970 | 10380 | 2945 | 1355 | 25 | 26240 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 8 |  |  |  | 1379 |  | 192 |  | 1571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 6847 | 39790 | 320210 | 137196 | 159760 | 158507 | 25532 | 847842 |
| Real estate – residential |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 2815 | 66780 | 225159 | 114682 | 64548 | 143002 | 53498 | 670484 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 853 |  | 2303 | 1295 | 318 | 2378 | 95 | 7242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 |  | 736 | 2153 | 2113 | 1454 | 5822 | 2249 | 14527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 3668 | 67516 | 229615 | 118090 | 66320 | 151202 | 55842 | 692253 |
| Real estate – farmland |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 147 |  | 997 | 1239 |  | 2753 | 149 | 5285 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 |  | 135 |  | 100 |  |  |  | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 147 | 135 | 997 | 1339 |  | 2753 | 149 | 5520 |
| Consumer |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | 5944 | 17211 | 8716 | 1650 | 1034 | 486 | 7283 | 42324 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 74 | 133 | 225 | 99 | 32 | 3 |  | 566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 | 87 | 330 | 332 | 184 | 63 | 24 | 28 | 1048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 6105 | 17674 | 9273 | 1933 | 1129 | 513 | 7311 | 43938 |
| Total Loans |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 1 - 4 | $53329 | $147386 | $618362 | $272353 | $230603 | $300706 | $182509 | $1805248 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grades 5 - 6 | 2327 | 30880 | 104708 | 26264 | 24907 | 30699 | 19371 | 239156 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 7 | 2596 | 3599 | 17783 | 23163 | 5024 | 8709 | 3823 | 64697 |
| &nbsp;&nbsp;&nbsp;&nbsp;Risk Grade 8 |  |  |  | 1461 |  | 193 |  | 1654 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $58252 | $181865 | $740853 | $323241 | $260534 | $340307 | $205703 | $2110755 |

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The following tables present an analysis of the change in the ACL by loan segment for the periods stated.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** |
| *(Dollars in thousands)* | **Commercial and industrial** | **Real estate – construction, commercial** | **Real estate – construction, residential** | **Real estate – commercial** | **Real estate – residential** | **Real estate – farmland** | **Consumer** | **Total** |
| ACL, beginning of period | $5846 | $1272 | $398 | $5879 | $8001 | $15 | $563 | $21974 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Recovery of) provision for credit losses - loans | (2594) | (135) | (8) | 314 | (304) | (1) | 928 | (1800) |
| &nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (1781) |  |  | (374) | (92) |  | (1035) | (3282) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 3303 |  |  | 38 | 222 |  | 48 | 3611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net recoveries (charge-offs) | 1522 |  |  | (336) | 130 |  | (987) | 329 |
| ACL, end of period | $4774 | $1137 | $390 | $5857 | $7827 | $14 | $504 | $20503 |
|  | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** |
| *(Dollars in thousands)* | **Commercial and industrial** | **Real estate – construction, commercial** | **Real estate – construction, residential** | **Real estate – commercial** | **Real estate – residential** | **Real estate – farmland** | **Consumer** | **Total** |
| ACL, beginning of period | $6916 | $3188 | $737 | $10262 | $6240 | $18 | $675 | $28036 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Recovery of) provision for credit losses - loans | (6059) | (45) | (77) | (69) | (241) | 1 | 490 | (6000) |
| &nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (6001) |  |  | (1109) | (30) |  | (773) | (7913) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 11095 |  |  |  | 60 |  | 175 | 11330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net recoveries (charge-offs) | 5094 |  |  | (1109) | 30 |  | (598) | 3417 |
| ACL, end of period | $5951 | $3143 | $660 | $9084 | $6029 | $19 | $567 | $25453 |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** |
| *(Dollars in thousands)* | **Commercial and industrial** | **Real estate – construction, commercial** | **Real estate – construction, residential** | **Real estate – commercial** | **Real estate – residential** | **Real estate – farmland** | **Consumer** | **Total** |
| ACL, beginning of period | $5767 | $2057 | $540 | $5963 | $7933 | $18 | $745 | $23023 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Recovery of) provision for credit losses - loans | (2636) | (920) | (150) | (45) | (120) | (4) | 1375 | (2500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (6442) |  |  | (437) | (215) |  | (2070) | (9164) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 8085 |  |  | 376 | 229 |  | 454 | 9144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net recoveries (charge-offs) | 1643 |  |  | (61) | 14 |  | (1616) | (20) |
| ACL, end of period | $4774 | $1137 | $390 | $5857 | $7827 | $14 | $504 | $20503 |
|  | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** |
| *(Dollars in thousands)* | **Commercial and industrial** | **Real estate – construction, commercial** | **Real estate – construction, residential** | **Real estate – commercial** | **Real estate – residential** | **Real estate – farmland** | **Consumer** | **Total** |
| ACL, beginning of period | $13787 | $4024 | $1094 | $9929 | $6286 | $15 | $758 | $35893 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Recovery of) provision for credit losses - loans | (2351) | (881) | (395) | 264 | (259) | 4 | 1218 | (2400) |
| &nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (19940) |  | (39) | (1109) | (74) |  | (2063) | (23225) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 14455 |  |  |  | 76 |  | 654 | 15185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs | (5485) |  | (39) | (1109) | 2 |  | (1409) | (8040) |
| ACL, end of period | $5951 | $3143 | $660 | $9084 | $6029 | $19 | $567 | $25453 |

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------

There were no material changes to the assumptions, loss factors (both quantitative and qualitative), or reasonable and supportable forecasts used in the estimation of the ACL and the provision for (recovery of) credit losses for loans held for investment as of and for the three and nine months ended September 30, 2025.

Excluded from the ACL as of both September 30, 2025 and December 31, 2024 were $9.0 million and $10.7 million of accrued interest attributable to loans held for investment, respectively, which is included in accrued interest receivable on the consolidated balance sheets.

The following table presents the amortized cost of collateral-dependent loans that were individually evaluated for credit losses as of the dates stated.

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| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | **September 30, 2025** | **December 31, 2024** |
| Commercial and industrial | $20145 | $42723 |
| Real estate – construction, commercial |  | 116 |
| Real estate – commercial | 32879 | 26994 |
| Real estate – residential | 6214 | 9586 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total collateral-dependent loans | $59238 | $79419 |

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<u>Acquired Loans</u>

As of September 30, 2025 and December 31, 2024, the amortized cost of purchased credit deteriorated ("PCD") loans totaled $30.0 million and $43.8 million, respectively, with an estimated ACL of $0.2 million and $0.3 million, respectively. The remaining non-credit discount on PCD loans was $2.2 million and $3.0 million as of September 30, 2025 and December 31, 2024, respectively.

<u>Troubled Loan Modifications</u>

The Company closely monitors the performance of borrowers experiencing financial difficulty and grants certain loan modifications it would otherwise not consider. The Company refers to such loan modifications as troubled loan modifications ("TLMs").

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The following table presents the amortized cost of loans designated as TLMs, categorized by loan type and type of concession granted, for the periods stated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| *(Dollars in thousands)* | **Number of Loans** | **Amortized Cost** | **% of Amortized Cost to Gross Loans by Category** | **Number of Loans** | **Amortized Cost** | **% of Amortized Cost to Gross Loans by Category** |
| Combined - term extension and payment deferral |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial |  | $— | (—%) | 1 | $229 | 0.06% |
| Total combined - term extension and payment deferral |  | $— |  | 1 | $229 |  |
| Combined - term extension, payment deferral, interest rate reduction |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial |  | $— | (—%) | 1 | $190 | 0.05% |
| Total combined - term extension, payment deferral, interest rate reduction |  | $— |  | 1 | $190 |  |
| Term extension |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial |  | $— | (—%) | 2 | $560 | 0.15% |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate – commercial | 3 | 472 | 0.06% |  |  | (—%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate – residential | 1 | 51 | 0.01% | 1 | 72 | 0.01% |
| Total term extension | 4 | $523 |  | 3 | $632 |  |
| Payment deferral |  |  |  |  |  |  |
| &nbsp;&nbsp;Real estate – residential |  | $— | (—%) | 1 | $504 | 0.07% |
| &nbsp;&nbsp;Consumer loans |  |  | (—%) |  |  | (—%) |
| Total payment deferral |  | $— |  | 1 | $504 |  |
| Total | 4 | $523 |  | 6 | $1555 |  |

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------

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| *(Dollars in thousands)* | **Number of Loans** | **Amortized Cost** | **% of Amortized Cost to Gross Loans by Category** | **Number of Loans** | **Amortized Cost** | **% of Amortized Cost to Gross Loans by Category** |
| Combined - term extension and payment deferral |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial |  | $— | (—%) | 1 | $229 | 0.06% |
| Total combined - term extension and payment deferral |  | $— |  | 1 | $229 |  |
| Combined - term extension, payment deferral, interest rate reduction |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial |  | $— | (—%) | 2 | $409 | 0.11% |
| Total combined - term extension, payment deferral, interest rate reduction |  | $— |  | 2 | $409 |  |
| Interest forgiven |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate – residential | 1 | $139 | 0.02% |  | $— | (—%) |
| Total interest forgiven | 1 | $139 |  |  | $— |  |
| Term extension |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial | 1 | $1940 | (—%) | 2 | $560 | 0.15% |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate – commercial | 3 | 472 | 0.06% | 1 | 38 | (—%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate – residential | 1 | 51 | 0.01% | 1 | 72 | 0.01% |
| Total term extension | 5 | $2463 |  | 4 | $670 |  |
| Payment deferral |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial and industrial |  | $— | (—%) | 1 | $161 | 0.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate – residential |  |  | (—%) | 1 | 504 | 0.07% |
| Total payment deferral |  | $— |  | 2 | $665 |  |
| Total | 6 | $2602 |  | 9 | $1973 |  |

---

The following tables present additional information including the financial effects of TLMs as of and for the periods stated.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of and for the three months ended September 30, 2025** | **As of and for the three months ended September 30, 2025** | **As of and for the three months ended September 30, 2025** | **As of and for the three months ended September 30, 2025** |
| *(Dollars in thousands)* | **Weighted Average Term Extension (Months)** | **Weighted Average Interest Rate Reduction** | **Weighted Average Payment Deferral** | **Weighted Average Interest Forgiven** |
| Commercial and industrial | 20 |  | $— | $— |
| Real estate – commercial | 13 |  |  |  |
| Real estate – residential | 15 |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of and for the three months ended September 30, 2024** | **As of and for the three months ended September 30, 2024** | **As of and for the three months ended September 30, 2024** | **As of and for the three months ended September 30, 2024** |
| *(Dollars in thousands)* | **Weighted Average Term Extension (Months)** | **Weighted Average Interest Rate Reduction** | **Weighted Average Payment Deferral** | **Weighted Average Interest Forgiven** |
| Commercial and industrial | 76 | 12.24% | $6 | $— |
| Real estate – residential | 84 |  | 162 |  |
| Consumer loans |  |  | 1 |  |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** |
| *(Dollars in thousands)* | **Weighted Average Term Extension (Months)** | **Weighted Average Interest Rate Reduction** | **Weighted Average Payment Deferral** | **Weighted Average Interest Forgiven** |
| Commercial and industrial | 20 |  | $— | $— |
| Real estate – commercial | 13 |  |  |  |
| Real estate – residential | 15 |  |  | 45 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of and for the nine months ended September 30, 2024** | **As of and for the nine months ended September 30, 2024** | **As of and for the nine months ended September 30, 2024** | **As of and for the nine months ended September 30, 2024** |
| *(Dollars in thousands)* | **Weighted Average Term Extension (Months)** | **Weighted Average Interest Rate Reduction** | **Weighted Average Payment Deferral** | **Weighted Average Interest Forgiven** |
| Commercial and industrial | 65 | 11.28% | $10 | $— |
| Real estate – commercial | 84 |  |  |  |
| Real estate – residential | 84 |  | 162 |  |
| Consumer loans |  |  | 1 |  |

---

The following tables present an aging analysis of the amortized cost of loans designated as TLMs as of the dates stated.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| *(Dollars in thousands)* | **Current<br>Loans** | **30-89<br>Days<br>Past Due** | **Greater than<br>90 Days Past<br>Due &<br>Accruing** | **Nonaccrual** | **Total** |
| Commercial and industrial | $939 | $— | $— | $4279 | $5218 |
| Real estate – construction, residential |  | 154 |  |  | 154 |
| Real estate – commercial | 506 |  |  | 2999 | 3505 |
| Real estate – residential | 238 |  |  | 630 | 868 |
| Consumer loans |  |  |  | 6 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total modified loans | $1683 | $154 | $— | $7914 | $9751 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **Current<br>Loans** | **30-89<br>Days<br>Past Due** | **Greater than<br>90 Days Past<br>Due &<br>Accruing** | **Nonaccrual** | **Total** |
| Commercial and industrial | $554 | $— | $— | $2745 | $3299 |
| Real estate – construction, residential | 155 |  |  |  | 155 |
| Real estate – commercial | 37 |  |  | 2999 | 3036 |
| Real estate – residential | 194 |  |  | 500 | 694 |
| Consumer loans |  |  |  | 10 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total modified loans | $940 | $— | $— | $6254 | $7194 |

---

As of September 30, 2025 and December 31, 2024, there were no unfunded commitments to borrowers with TLMs.

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The following table presents the amortized cost of loans designated as TLMs that were modified in the preceding twelve months and had a payment default during the periods stated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **As of and for the nine months ended September 30,** | **As of and for the nine months ended September 30,** | **As of and for the nine months ended September 30,** | **As of and for the nine months ended September 30,** | **As of and for the nine months ended September 30,** | **As of and for the nine months ended September 30,** |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
| *(Dollars in thousands)* | **Number of Loans** | **Amortized Cost** | **% of Amortized Cost to Gross Loans by Category** | **Number of Loans** | **Amortized Cost** | **% of Amortized Cost to Gross Loans by Category** |
| Interest forgiveness |  |  |  |  |  |  |
| Real estate – residential | 1 | $139 | 0.02% |  | $— | 0.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest forgiveness | 1 | $139 |  |  | $— |  |
| Total | 1 | $139 |  |  | $— |  |

---

As of September 30, 2025, six residential mortgage loans with a total amortized cost of $2.7 million were in the process of foreclosure.

**Note 4 – Borrowings**

<u>FHLB Borrowings</u> 

The Bank has a borrowing facility from the FHLB secured by pledged qualifying securities and commercial and residential mortgage loans. The FHLB will lend up to 30% of the Bank's total assets as of the prior quarter end, subject to certain eligibility requirements, including adequate collateral. The Bank had borrowings from the FHLB totaling $150.0 million at both September 30, 2025 and December 31, 2024. The FHLB borrowings required the Bank to hold $9.1 million and $9.4 million of FHLB stock at September 30, 2025 and December 31, 2024, respectively, which is included in restricted equity investments on the consolidated balance sheets.

At September 30, 2025 and December 31, 2024, the Bank also had letters of credit outstanding with the FHLB in the amounts of $41.2 million and $51.2 million, respectively, of which $40.0 million and $50.0 million was for the purpose of collateral for public deposits with the Treasury Board of the Commonwealth of Virginia as of the same respective dates. Outstanding letters of credit reduce the available balance of the borrowing facility with the FHLB.

At September 30, 2025 and December 31, 2024, the secured facility totaled $620.9 million and $696.0 million, respectively, based on pledged collateral. Available balances on the FHLB credit facility were $429.7 million and $494.9 million as of September 30, 2025 and December 31, 2024, respectively. The decline in the secured capacity of the FHLB borrowing facility as of September 30, 2025 from the prior year end was primarily due to the release of securities held as collateral.

The following table presents information regarding FHLB borrowings outstanding as of both September 30, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| *(Dollars in thousands)* | **Balance** | **Origination Date** | **Stated Interest Rate** | **Maturity Date** |
| Fixed rate credit | $50000 | 3/15/2023 | 4.07% | 3/15/2027 |
| Fixed rate credit | 50000 | 5/2/2023 | 3.87% | 5/3/2027 |
| Fixed rate credit | 50000 | 5/4/2023 | 3.52% | 5/4/2028 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total FHLB borrowings | $150000 |  |  |  |

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------

At September 30, 2025, 1-4 family residential loans, multi-family residential loans, and commercial real estate loans classified as held for investment with a lendable value of $453.2 million and securities with a lendable value of $167.7 million were pledged for the borrowing facility with the FHLB.

<u>FRB Borrowings</u>

The Company may obtain advances from the FRB through its Discount Window. Advances through the FRB Discount Window are secured by qualifying pledged construction and commercial and industrial loans. The Company had secured borrowing capacity with the FRB Discount Window of $75.4 million and $105.7 million as of September 30, 2025 and December 31, 2024, respectively, of which the Company had no outstanding advances as of either date.

<u>Other Borrowings</u>

The Company had an unsecured line of credit with a correspondent bank available for overnight borrowing, which totaled $10.0 million as of both September 30, 2025 and December 31, 2024. This line bears interest at the prevailing rates for such loans and is cancelable any time by the correspondent bank. As of both September 30, 2025 and December 31, 2024, the Company had no outstanding advances on this secured line.

<u>Subordinated Notes</u>

The Company had $14.7 million and $39.8 million of subordinated notes, net, outstanding as of September 30, 2025 and December 31, 2024, respectively. Prior to June 1, 2025, the Company's subordinated notes had been comprised of a $15 million issuance in May 2020 maturing June 1, 2030 (the "2030 Note") and a $25 million issuance in October 2019 maturing October 15, 2029 (the "2029 Notes").

On June 1, 2025, the Company completed the $15.0 million redemption of the 2030 Note. The interest rate on the 2030 Note was 6.0% up to the redemption date. Interest expense on the 2030 Note was $0 and $0.2 million for the three months ended September 30, 2025 and 2024, respectively, and $0.4 million and $0.7 million for the nine months ended September 30, 2025 and 2024, respectively.

On July 15, 2025, the Company completed a $10.0 million partial redemption of its 2029 Notes. The 2029 Notes bore interest at 5.625% per annum, through October 14, 2024, payable semi-annually in arrears. From October 15, 2024 through October 15, 2029, or up to an early redemption date, the interest rate resets quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Funding Rate plus 433.5 basis points, payable quarterly in arrears. As of September 30, 2025, the 2029 Notes bore an annual interest rate of 8.65%. As of September 30, 2025, the net carrying amount of the 2029 Notes was $14.7 million, inclusive of a $0.3 million purchase accounting adjustment (premium). For the three months ended September 30, 2025 and 2024, the effective interest rate on the 2029 Notes was 7.49% and 5.31%, respectively, inclusive of the amortization of the purchase accounting adjustment (premium). For the nine months ended September 30, 2025 and 2024, the effective interest rate on the 2029 Notes was 7.84% and 5.21%, respectively, inclusive of the amortization of the purchase accounting adjustment (premium).

**Note 5 – Fair Value**

The fair value of a financial instrument is the current amount that would be exchanged between willing parties in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.

The three levels of input that may be used to measure fair value are as follows:

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| | |
|:---|:---|
| Level 1 – | Valuation is based on quoted prices in active markets for identical assets and liabilities. |
| Level 2 – | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. |
| Level 3 – | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. |

---

------

The following tables present the balances of financial assets measured at fair value on a recurring basis as of the dates stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| *(Dollars in thousands)* | **Total** | **Level 1** | **Level 2** | **Level 3** |
| Securities available for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage backed securities | $192494 | $— | $192494 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and agencies | 72039 |  | 72039 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;State and municipals | 44293 |  | 44293 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 32528 |  | 32028 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total securities available for sale | $341354 | $— | $340854 | $500 |
| Other assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MSRs | $201 | $— | $— | $201 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rabbi trust assets | 676 | 676 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap asset | 450 |  | 450 |  |
| Other liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap liability | 480 |  | 480 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **Total** | **Level 1** | **Level 2** | **Level 3** |
| Securities available for sale |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage backed securities | $164438 | $— | $164438 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury and agencies | 69455 |  | 69455 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;State and municipals | 42937 |  | 42937 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 35205 |  | 34455 | 750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total securities available for sale | $312035 | $— | $311285 | $750 |
| Other assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MSRs | $386 | $— | $— | $386 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rabbi trust assets | 600 | 600 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage derivative asset | 140 |  | 140 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap asset | 95 |  | 95 |  |
| Other liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap liability | $95 | $— | $95 | $— |

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The following table presents the change in corporate bonds and MSRs using Level 3 inputs for the periods stated.

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| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | **Corporate<br>Bonds** | **MSRs** |
| Balance as of December 31, 2024 | $750 | $386 |
| &nbsp;&nbsp;&nbsp;&nbsp;Called security available for sale | (250) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustments |  | (185) |
| Balance as of September 30, 2025 | $500 | $201 |

---

As of September 30, 2025 and December 31, 2024, one corporate bond totaling $0.5 million and two corporate bonds totaling $0.8 million, respectively, were reported at their respective amortized cost basis and as Level 3 assets in the fair value hierarchy, as there were no observable market prices for similar investments.

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The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| *(Dollars in thousands)* | **Total** | **Level 1** | **Level 2** | **Level 3** |
| Other equity investments | $4853 | $— | $1847 | $3006 |
| Collateral-dependent loans | 3053 |  |  | 3053 |
| Loans held for sale | 12819 |  | 12819 |  |
| Other non-real estate owned (1) | 222 |  |  | 222 |
| (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **Total** | **Level 1** | **Level 2** | **Level 3** |
| Other equity investments | $4834 | $— | $1828 | $3006 |
| Collateral-dependent loans | 6954 |  |  | 6954 |
| Loans held for sale | 30976 |  | 30976 |  |
| Other real estate owned ("OREO") (1) | 279 |  |  | 279 |
| (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. |

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The following tables present quantitative information about Level 3 fair value measurements of assets measured on a nonrecurring basis as of the dates stated.

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| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | **Balance as of September 30, 2025** | **Unobservable Input** | **Range** |
| Other equity investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Probability weighted expected return technique | $3006 | &nbsp;&nbsp;&nbsp;&nbsp; Discount Rate | 20% |
| Collateral-dependent loans |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discounted appraised value technique | 3053 | &nbsp;&nbsp;&nbsp;&nbsp; Selling Costs | 5% |
| Other non-real estate owned (1) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discounted cash flows technique | 222 | &nbsp;&nbsp;&nbsp;&nbsp; Discount Rate | 20% |
| (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. |

---

---

| | | | |
|:---|:---|:---|:---|
| *(Dollars in thousands)* | **Balance as of December 31, 2024** | **Unobservable Input** | **Range** |
| Other equity investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Probability weighted expected return technique | $3006 | &nbsp;&nbsp;&nbsp;&nbsp; Discount Rate | 20% |
| Collateral-dependent loans |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discounted appraised value technique | 6954 | &nbsp;&nbsp;&nbsp;&nbsp; Selling Costs | 7% - 15% |
| OREO (1) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Discounted sales price technique | 279 | &nbsp;&nbsp;&nbsp;&nbsp; Selling Costs | 7% |
| (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. |

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The following tables present the estimated fair values, related carrying amounts, and valuation level of the financial instruments as of the dates stated.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  |  |  | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| *(Dollars in thousands)* | **Carrying Value** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks | $121032 | $121032 | $121032 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 7773 | 7773 | 7773 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities available for sale | 341354 | 341354 |  | 340854 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted equity investments | 18988 | 18988 |  | 18988 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other equity investments | 4853 | 4853 |  | 1847 | 3006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 20804 | 20804 |  |  | 20804 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 12819 | 12819 |  | 12819 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for investment, net | 1892223 | 1826790 |  |  | 1826790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | 11012 | 11012 |  | 11012 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank owned life insurance | 896 | 896 |  | 896 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MSRs | 201 | 201 |  |  | 201 |
| Financial Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing demand | $411100 | $411100 | $411100 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand and money market | 621268 | 621268 |  | 621268 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 100300 | 100300 |  | 100300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Time | 818411 | 821302 |  |  | 821302 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB borrowings | 150000 | 150424 |  | 150424 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated notes, net | 14731 | 13888 |  |  | 13888 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  |  |  | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| *(Dollars in thousands)* | **Carrying Value** | **Fair Value** | **Level 1** | **Level 2** | **Level 3** |
| Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and due from banks | $173533 | $173533 | $173533 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 2459 | 2459 | 2459 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Federal funds sold | 838 | 838 | 838 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities available for sale | 312035 | 312035 |  | 311285 | 750 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted equity investments | 19275 | 19275 |  | 19275 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other equity investments | 4834 | 4834 |  | 1828 | 3006 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | 19405 | 19405 |  |  | 19405 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for sale | 30976 | 30976 |  | 30976 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for investment, net | 2088774 | 1998668 |  |  | 1998668 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable | 12537 | 12537 |  | 12537 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank owned life insurance | 1083 | 1083 |  | 1083 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;MSRs | 386 | 386 |  |  | 386 |
| Financial Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing demand | $452690 | $452690 | $452690 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing demand and money market | 598875 | 598875 |  | 598875 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 100857 | 100857 |  | 100857 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Time | 1027020 | 1029199 |  |  | 1029199 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB borrowings | 150000 | 152782 |  | 152782 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Subordinated notes, net | 39789 | 38765 |  |  | 38765 |

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**Note 6 – Minimum Regulatory Capital Requirements**

Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, financial institutions must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and

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certain off-balance sheet items as calculated under regulatory accounting practices. A financial institution's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Pursuant to the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks, banks must hold a capital conservation buffer of 2.50% above the adequately capitalized risk-based capital ratios for all ratios, except the tier 1 leverage ratio. If a banking organization dips into its capital conservation buffer, it is subject to limitations on certain activities, including payment of dividends, share repurchases, and discretionary compensation to certain officers. Federal and state banking regulations place certain additional restrictions on dividends paid by the Company.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized; although, these terms are not used to represent overall financial condition. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.

In addition to the foregoing capital requirements, the Bank is subject to minimum capital ratios set forth in the Consent Order that are higher than those required for capital adequacy purposes generally. The Bank is required to maintain a leverage ratio of 10.00% and a total capital ratio of 13.00%. As of September 30, 2025 and December 31, 2024, the Bank met these minimum capital ratios. Until the Consent Order has been lifted, the Bank is deemed to be less than well capitalized, thus adequately capitalized.

The Company adopted ASC 326, Financial Instruments - Credit Losses (referred to herein as "current expected credit losses" or "CECL") effective January 1, 2023. Federal and state banking regulations allow financial institutions to irrevocably elect to phase-in the after-tax cumulative effect adjustment to retained earnings (the "CECL Transitional Amount") over a three-year period. The three-year phase-in of the CECL Transitional Amount to regulatory capital was 25% and 50% in 2023 and 2024, respectively, and is 25% in 2025. The Bank made this irrevocable election effective with its first quarter 2023 call report.

The following tables present the capital ratios to which banks are subject to be adequately and well capitalized, as well as the capital and capital ratios for the Bank as of the dates stated. Adequately capitalized ratios include the conservation buffer, if applicable. The following table also includes the capital adequacy ratios to which bank holding companies are subject. Also presented are the minimum capital ratios set forth in the Consent Order for the Bank and the related capital amounts for both the leverage ratio and the total risk based capital ratio. The CECL Transitional Amount was $8.1 million, of which $6.1 million and $4.1 million reduced the regulatory capital amounts and capital ratios as of September 30, 2025 and December 31, 2024, respectively.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Actual** | **Actual** | **For Capital Adequacy Purposes** | **For Capital Adequacy Purposes** | **To Be Well Capitalized** | **To Be Well Capitalized** | **Minimum Capital Ratios** | **Minimum Capital Ratios** |
| *(Dollars in thousands)* | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| Total risk based capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $365989 | 19.96% | $192507 | 10.50% | $183340 | 10.00% | $238342 | 13.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $407122 | 22.02% | $147898 | 8.00% | n/a | n/a | n/a | n/a |
| Tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $347348 | 18.95% | $155840 | 8.50% | $146673 | 8.00% | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $376650 | 20.37% | $110924 | 6.00% | n/a | n/a | n/a | n/a |
| Common equity tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $347348 | 18.95% | $128338 | 7.00% | $119171 | 6.50% | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $376650 | 20.37% | $83193 | 4.50% | n/a | n/a | n/a | n/a |
| Tier 1 leverage (to average assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $347348 | 13.67% | $101650 | 4.00% | $127062 | 5.00% | $254125 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $376650 | 14.70% | $102518 | 4.00% | n/a | n/a | n/a | n/a |

---

------

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Actual** | **Actual** | **For Capital Adequacy Purposes** | **For Capital Adequacy Purposes** | **To Be Well Capitalized** | **To Be Well Capitalized** | **Minimum Capital Ratios** | **Minimum Capital Ratios** |
| *(Dollars in thousands)* | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| Total risk based capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $358848 | 17.26% | $218260 | 10.50% | $207866 | 10.00% | $270226 | 13.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $414284 | 19.79% | $167444 | 8.00% | n/a | n/a | n/a | n/a |
| Tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $340386 | 16.38% | $176687 | 8.50% | $166293 | 8.00% | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $360933 | 17.24% | $125583 | 6.00% | n/a | n/a | n/a | n/a |
| Common equity tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $340386 | 16.38% | $145507 | 7.00% | $135113 | 6.50% | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $360933 | 17.24% | $94187 | 4.50% | n/a | n/a | n/a | n/a |
| Tier 1 leverage (to average assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $340386 | 11.80% | $115364 | 4.00% | $144204 | 5.00% | $288409 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $360933 | 12.43% | $116169 | 4.00% | n/a | n/a | n/a | n/a |

---

**Note 7 – Commitments and Contingencies**

In the ordinary course of operations, the Company offers various financial products to its customers to meet their credit and liquidity needs. These instruments involve elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and stand-by letters of credit written is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments and conditional commitments as it does for on-balance sheet commitments.

Subject to its normal credit standards and risk monitoring procedures, the Company makes contractual commitments to extend credit. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. As of September 30, 2025 and December 31, 2024, the Company had outstanding loan commitments of $243.6 million and $283.2 million, respectively. Of these amounts, $35.5 million and $32.9 million were unconditionally cancelable at the sole discretion of the Company as of the same respective dates.

Conditional commitments are issued by the Company in the form of financial stand-by letters of credit, which guarantee payment to the underlying beneficiary (i.e., third party) if the customer fails to meet its designated financial obligation. As of September 30, 2025 and December 31, 2024, commitments under outstanding financial stand-by letters of credit totaled $9.5 million and $12.5 million, respectively. The credit risk of issuing stand-by letters of credit can be greater than the risk involved in extending loans to customers.

The Company recorded no provision for credit losses for unfunded commitments for either the three months or nine months ended September 30, 2025. The reserve for unfunded commitments, which is included in other liabilities on the consolidated balance sheets, was $0.9 million as of both September 30, 2025 and December 31, 2024.

As part of the sale of substantially all of its MSR portfolio during 2024, the Company recorded a reserve for estimated putbacks, transition costs, and unearned sales proceeds. The putbacks related to industry-standard items, including prepayments or early delinquencies of the underlying mortgages, all of which were subject to term limits per the respective sales agreements. As of September 30, 2025, all such term limits have expired. The reserve for unearned sales proceeds relates to the Company providing certain documentation to the buyers. In the three and nine months ended September 30, 2025, the Company received $0.7 million and $1.0 million, respectively, of previously unearned sale proceeds, which resulted in a corresponding release of the reserve and were reported as income on sale of MSRs on the consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the reserve was $0.6 million and $1.8 million, respectively, and was included in other liabilities on the consolidated balance sheet.

The Company has investments in various partnerships and limited liability companies. Pursuant to these investments, the Company commits to an investment amount that may be fulfilled in future periods. At September 30, 2025 and December 31, 2024, the Company had future commitments outstanding totaling $5.2 million and $7.1 million, respectively, related to these investments.

------

**Note 8 – Stock-Based Compensation**

The Company has granted restricted stock awards ("time-based RSAs") to employees and directors, and performance-based restricted stock awards ("PSAs") to employees, under equity incentive plans that have been approved by the Company's shareholders. Time-based RSAs vest over time and are considered fixed awards as the number of shares and fair value is known at the date of grant. The fair value of the award at the grant date is amortized over the requisite service period, which is generally three years. PSAs vest at the end of a specified period contingent on the Company's achievement of financial goals and are expensed on a straight-line basis over the performance period, with adjustments periodically based on projected achievement of such performance goals.

On April 29, 2025, the Company granted PSAs totaling 3,400,000 shares of common stock to certain executive officers. The vesting of these awards is contingent upon the Company achieving specified performance thresholds over three one-year measurement periods. Stock-based compensation expense, reported as a component of salaries and employee benefits in the consolidated statements of operations, was $1.2 million and $3.5 million for the three and nine months ended September 30, 2025, respectively, compared to $0.1 million and $0.6 million for the three and nine months ended September 30, 2024, respectively.

The following table presents the activity in time-based RSAs and PSAs as of the dates and for the periods stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** |
|  | **Time-based RSAs** | **Time-based RSAs** | **PSAs** | **PSAs** |
|  | **Shares** | **Weighted Average Fair Value** | **Shares** | **Weighted Average Fair Value** |
| Shares unvested and outstanding at beginning of period | 585700 | $3.63 | 116830 | $11.43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 145643 | 3.74 | 3400000 | 3.54 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested (1) | (179590) | 4.09 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (49395) | 4.34 | (56346) | 14.20 |
| Shares unvested and outstanding at end of period | 502358 | $3.43 | 3460484 | $3.60 |
| (1) Shares totaling 19,022 were withheld as payment of taxes in the nine months ended September 30, 2025. | (1) Shares totaling 19,022 were withheld as payment of taxes in the nine months ended September 30, 2025. | (1) Shares totaling 19,022 were withheld as payment of taxes in the nine months ended September 30, 2025. | (1) Shares totaling 19,022 were withheld as payment of taxes in the nine months ended September 30, 2025. | (1) Shares totaling 19,022 were withheld as payment of taxes in the nine months ended September 30, 2025. |

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**Note 9 – Earnings Per Share**

The following table shows the calculation of basic and diluted earnings per share ("EPS"), the weighted average number of shares outstanding used in computing EPS, the effect on the weighted average number of shares outstanding

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of dilutive potential common stock for the periods stated, and the weighted average number of securities excluded from the computation of diluted EPS because their effects would have been anti-dilutive.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |
| *(Dollars in thousands, except per share data)* | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) | $5603 | $946 | $6465 | $(13382) |
| Weighted average common shares outstanding, basic | 88547750 | 73366140 | 87612199 | 39132557 |
| Effect of dilutive securities (1) | 10836329 | 13720237 | 8977523 |  |
| Weighted average common shares outstanding, dilutive | 99384079 | 87086377 | 96589722 | 39132557 |
| Basic and diluted income (loss) per common share | $0.06 | $0.01 | $0.07 | $(0.34) |
| (1) Components of dilutive securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PSAs | 952496 | 1805 | 371911 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock |  | 10928000 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants | 9883833 | 2790432 | 8605612 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total weighted average dilutive securities | 10836329 | 13720237 | 8977523 |  |
| Weighted average anti-dilutive securities excluded from diluted EPS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PSAs |  | 92727 | 1613 | 95605 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options | 19933 | 29741 | 21544 | 29979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock |  |  |  | 10928000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants |  |  |  | 1884183 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total weighted average anti-dilutive securities | 19933 | 122468 | 23157 | 12937767 |

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**Note 10 – Segment Reporting**

The Chief Operating Decision Maker (the "CODM") evaluates each of the Company's segments based on net income (loss), using segment financial information compiled utilizing the accounting policies listed in Note 2 of the 2024 Form 10-K. The profitability of the segment helps the CODM evaluate staffing levels, assess available cash for allocation to projects and resources, and make informed decisions on whether the segment's activities should be modified to align with the Company's overall near- and long-term strategies.

Until March 2025, the Company operated through three reportable business segments: commercial banking, mortgage banking, and holding company activities. The commercial banking business segment makes loans to and generates deposits from individuals and businesses, while offering a wide array of general financial services to its customers. The mortgage banking segment, which operated as Monarch Mortgage and focused on residential mortgage origination and sales activities, was sold in March 2025. The Company has closed, funded, and sold the loans that were in process at the time of the sale; it is therefore presented as a reportable segment for all periods stated for comparative purposes. Activities at the holding company or parent level are primarily associated with investments, borrowings, and certain noninterest expenses.

------

Information about reportable segments, and reconciliation of such information to the consolidated financial statements follows, as of the dates and periods stated.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of and for the three months ended September 30, 2025** | **As of and for the three months ended September 30, 2025** | **As of and for the three months ended September 30, 2025** | **As of and for the three months ended September 30, 2025** | **As of and for the three months ended September 30, 2025** |
| *(Dollars in thousands)* | **Commercial Banking** | **Mortgage Banking** | **Parent Only** | **Eliminations** | **Blue Ridge<br>Bankshares,<br>Inc.<br>Consolidated** |
| **NET INTEREST INCOME** |  |  |  |  |  |
| Interest income | $36203 | $10 | $— | $— | $36213 |
| Interest expense | 13964 |  | 338 |  | 14302 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 22239 | 10 | (338) |  | 21911 |
| Recovery of credit losses | (1800) |  |  |  | (1800) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income after recovery of credit losses** | 24039 | 10 | (338) |  | 23711 |
| **NONINTEREST INCOME** |  |  |  |  |  |
| Fair value adjustments of other equity investments |  |  | 163 |  | 163 |
| Residential mortgage banking income |  | 5 |  |  | 5 |
| MSRs |  | (48) |  |  | (48) |
| Income on sale of MSRs |  | 737 |  |  | 737 |
| Other | 3075 |  |  | (99) | 2976 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest income** | 3075 | 694 | 163 | (99) | 3833 |
| **NONINTEREST EXPENSE** |  |  |  |  |  |
| Salaries and employee benefits | 11325 | 63 |  |  | 11388 |
| Occupancy and equipment | 1179 | 11 |  |  | 1190 |
| Technology and communication | 2147 | 167 |  |  | 2314 |
| Other | 5121 | 71 | 56 | (99) | 5149 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest expense** | 19772 | 312 | 56 | (99) | 20041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income tax expense** | 7342 | 392 | (231) |  | 7503 |
| Income tax expense (benefit) | 1949 |  | (49) |  | 1900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | $5393 | $392 | $(182) | $— | $5603 |
| **Total assets** | $2475826 | $947 | $371288 | $(351112) | $2496949 |

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of and for the three months ended September 30, 2024** | **As of and for the three months ended September 30, 2024** | **As of and for the three months ended September 30, 2024** | **As of and for the three months ended September 30, 2024** | **As of and for the three months ended September 30, 2024** |
| *(Dollars in thousands)* | **Commercial Banking** | **Mortgage Banking** | **Parent Only** | **Eliminations** | **Blue Ridge<br>Bankshares,<br>Inc.<br>Consolidated** |
| **NET INTEREST INCOME** |  |  |  |  |  |
| Interest income | $38803 | $422 | $— | $— | $39225 |
| Interest expense | 19385 | 174 | 565 |  | 20124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 19418 | 248 | (565) |  | 19101 |
| Recovery of credit losses | (6200) |  |  |  | (6200) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income after recovery of credit losses** | 25618 | 248 | (565) |  | 25301 |
| **NONINTEREST INCOME** |  |  |  |  |  |
| Fair value adjustments of other equity investments |  |  | 160 |  | 160 |
| Residential mortgage banking income |  | 2746 |  |  | 2746 |
| MSRs |  | (2915) |  |  | (2915) |
| Loss on sale of MSRs |  | (1011) |  |  | (1011) |
| Other | 3812 |  | 2 | (96) | 3718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest income** | 3812 | (1180) | 162 | (96) | 2698 |
| **NONINTEREST EXPENSE** |  |  |  |  |  |
| Salaries and employee benefits | 12554 | 1365 | 19 |  | 13938 |
| Occupancy and equipment | 1286 | 108 |  |  | 1394 |
| Technology and communication | 2457 | 310 |  |  | 2767 |
| Regulatory remediation | 357 |  |  |  | 357 |
| Other | 6953 | 722 | 419 | (96) | 7998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest expense** | 23607 | 2505 | 438 | (96) | 26454 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income tax expense** | 5823 | (3437) | (841) |  | 1545 |
| Income tax expense (benefit) | 1523 | (751) | (173) |  | 599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | $4300 | $(2686) | $(668) | $— | $946 |
| **Total assets** | $2900927 | $33519 | $377806 | $(367561) | $2944691 |

---

------

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** |
| *(Dollars in thousands)* | **Commercial Banking** | **Mortgage Banking** | **Parent Only** | **Eliminations** | **Blue Ridge<br>Bankshares,<br>Inc.<br>Consolidated** |
| **NET INTEREST INCOME** |  |  |  |  |  |
| Interest income | $106108 | $191 | $— | $— | $106299 |
| Interest expense | 43797 | 40 | 1720 |  | 45557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 62311 | 151 | (1720) |  | 60742 |
| Recovery of credit losses | (2500) |  |  |  | (2500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income after recovery of credit losses** | 64811 | 151 | (1720) |  | 63242 |
| **NONINTEREST INCOME** |  |  |  |  |  |
| Fair value adjustments of other equity investments |  |  | 8 |  | 8 |
| Residential mortgage banking income |  | 847 |  |  | 847 |
| MSRs |  | (185) |  |  | (185) |
| Income on sale of MSRs |  | 1026 |  |  | 1026 |
| Other | 8750 |  |  | (297) | 8453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest income** | 8750 | 1688 | 8 | (297) | 10149 |
| **NONINTEREST EXPENSE** |  |  |  |  |  |
| Salaries and employee benefits | 35095 | 1903 |  |  | 36998 |
| Occupancy and equipment | 3625 | 75 |  |  | 3700 |
| Technology and communication | 6686 | 977 |  |  | 7663 |
| Other | 15571 | 626 | 740 | (297) | 16640 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest expense** | 60977 | 3581 | 740 | (297) | 65001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Income (loss) before income tax expense** | 12584 | (1742) | (2452) |  | 8390 |
| Income tax expense (benefit) | 2923 | (483) | (515) |  | 1925 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net income (loss)** | $9661 | $(1259) | $(1937) | $— | $6465 |
| **Total assets** | $2475826 | $947 | $371288 | $(351112) | $2496949 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of and for the nine months ended September 30, 2024** | **As of and for the nine months ended September 30, 2024** | **As of and for the nine months ended September 30, 2024** | **As of and for the nine months ended September 30, 2024** | **As of and for the nine months ended September 30, 2024** |
| *(Dollars in thousands)* | **Commercial Banking** | **Mortgage Banking** | **Parent Only** | **Eliminations** | **Blue Ridge<br>Bankshares,<br>Inc.<br>Consolidated** |
| **NET INTEREST INCOME** |  |  |  |  |  |
| Interest income | $121181 | $1206 | $— | $— | $122387 |
| Interest expense | 60636 | 539 | 1677 |  | 62852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income** | 60545 | 667 | (1677) |  | 59535 |
| Recovery of credit losses | (4100) |  |  |  | (4100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net interest income after recovery of credit losses** | 64645 | 667 | (1677) |  | 63635 |
| **NONINTEREST INCOME** |  |  |  |  |  |
| Fair value adjustments of other equity investments |  |  | (8384) |  | (8384) |
| Residential mortgage banking income |  | 8214 |  |  | 8214 |
| MSRs |  | (166) |  |  | (166) |
| Loss on sale of MSRs |  | (1011) |  |  | (1011) |
| Other | 12374 |  | 19 | (288) | 12105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest income** | 12374 | 7037 | (8365) | (288) | 10758 |
| **NONINTEREST EXPENSE** |  |  |  |  |  |
| Salaries and employee benefits | 40307 | 4548 | 63 |  | 44918 |
| Occupancy and equipment | 3870 | 351 |  |  | 4221 |
| Technology and communication | 6425 | 953 |  |  | 7378 |
| Regulatory remediation | 4398 |  |  |  | 4398 |
| Other | 24460 | 2231 | 881 | (288) | 27284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total noninterest expense** | 79460 | 8083 | 944 | (288) | 88199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Loss) income before income tax expense** | (2441) | (379) | (10986) |  | (13806) |
| Income tax expense (benefit) | 1960 | (90) | (2294) |  | (424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net (loss) income** | $(4401) | $(289) | $(8692) | $— | $(13382) |
| **Total assets** | $2900927 | $33519 | $377806 | $(367561) | $2944691 |

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Included in other expenses are costs for legal and regulatory filings, audit fees, other contractual services, and other miscellaneous expenses.

The Company had no transactions with a single customer that in the aggregate resulted in revenues exceeding 10% of consolidated total revenues for the three and nine months ended September 30, 2025 and 2024.

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**Note 11 – Legal Matters**

In the ordinary course of operations, the Company is party to legal proceedings. Based upon information currently available, management believes that such legal proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition, results of operations, or cash flows.

On December 20, 2024, a former Deputy Bank Secrecy Act Officer and manager at the Bank filed suit against the Company and the Company's and the Bank's Chief Executive Officer, in the Circuit Court of the City of Richmond (Virginia) alleging that she was retaliated against and constructively discharged in violation of the Virginia Whistleblower Protection Act, Va. Code § 40.1-27.3, and *Bowman v. State Bank of Keysville*, 331 S.E.2d 797 (Va. 1985). On December 30, 2024, the Company removed the matter to the United States District Court for the Eastern District of Virginia, where it subsequently filed a motion to dismiss. On July 18, 2025, the court granted the Company's motion to dismiss. The case caption in the district court is *Porter v. Blue Ridge Bankshares, Inc.* (No. 3:24-cv-909 (E.D. Va.)). On August 15, 2025, the plaintiff appealed the dismissal of her claims to the U.S. Court of Appeals for the Fourth Circuit, Case No. 25-1970, asserting various violations of law. The Company believes the plaintiff's claims are without merit and will continue to defend itself vigorously in the matter.

On December 5, 2023, an alleged shareholder of the Company commenced a putative class action in the U.S. District Court for the Eastern District of New York (No. 1:23-cv-08944) (*Russell Hunter v. Blue Ridge Bankshares, Inc., et al.*) on behalf of himself and any persons or entities who purchased the publicly traded stock of the Company between February 3, 2023 and October 31, 2023, both dates inclusive (the "Action"). The Action alleges violations of federal securities laws against the Company and certain of its current and former officers based on alleged material misstatements and omissions related to accounting judgments in the Company's filings with the Securities and Exchange Commission. The complaint seeks certification of a class action, unspecified damages, and attorney's fees. The putative class representative filed an amended complaint, and the Company filed a letter seeking permission to file a motion to dismiss. The parties engaged in non-binding mediation on December 5, 2024, during which the parties agreed in principle to settlement terms for $2.5 million. The Company was insured for its legal fees and for the settlement amount less a deductible that was expensed in 2024. On February 4, 2025, the plaintiff filed an unopposed motion for preliminary approval of the proposed class action settlement, which, if granted, would settle the Action and any claims related to the Action or that could have been brought in the Action by the parties, the parties' counsel, or settlement class members (the "Motion"). The Motion expressly disclaims any fault, liability, or wrongdoing on the part of the Company. On June 6, 2025, the court conducted a preliminary fairness hearing regarding the Motion. On June 11, 2025, the federal magistrate judge recommended that the court grant the Motion. On July 5, 2025, the court adopted the magistrate's report and recommendation, and on July 25, 2025, the court granted preliminary approval of the settlement, effective July 5, 2025. Also on July 25, 2025, the court set a final settlement approval hearing date of October 29, 2025. On July 29, 2025, the defendants satisfied their payment obligations under the settlement. On October 29, 2025, the court held a final settlement approval hearing at which no objections to the settlement were raised.

**Note 12 – Subsequent Events**

On October 27, 2025, the Company announced a special cash dividend of $0.25 per share of the Company's common stock. The dividend is payable on November 21, 2025 to shareholders of record as of the close of business on November 7, 2025 and will total approximately $30.0 million.

Subsequent to September 30, 2025, and pursuant to the Repurchase Program, warrants to purchase 3,229,000 shares of the Company's common stock were repurchased by the Company for $6.1 million.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*The following presents management's discussion and analysis of the Company's consolidated financial condition and the results of the Company's operations. This discussion should be read in conjunction with the unaudited consolidated financial statements and the notes thereto included in this Form 10-Q and the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the* "*2024 Form 10-K*"*). Results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results of operations for the balance of 2025, or for any other period. As used in this report, the terms "the Company," "we," "us," and "our" refer to Blue Ridge Bankshares, Inc. and its consolidated subsidiaries. The term "Bank" refers to Blue Ridge Bank, National Association.*

**Cautionary Note About Forward-Looking Statements** 

The Company makes certain forward-looking statements in this Form 10-Q that are subject to risks and uncertainties. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of management'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 phases of similar meaning. The Company cautions that the forward-looking statements are based largely on management's 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 its 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effects of, and changes in, the macroeconomic environment and financial market conditions, including monetary and fiscal policies, interest rates, and inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of, and the ability to comply with, the terms of the Consent Order, as defined below, with the Office of the Comptroller of the Currency ("OCC"), including the heightened capital requirements and other restrictions therein, and other regulatory directives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the imposition of additional regulatory actions or restrictions for noncompliance with the Consent Order or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Company's involvement in, and the outcome of, any litigation, legal proceedings, or enforcement actions that may be instituted against the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reputational risk and potential adverse reactions of the Company's customers, suppliers, employees, or other business partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Company's ability to manage its fintech relationships, including implementing enhanced controls, complying with the OCC directives and applicable laws and regulations, and managing the final phases of the wind down of these partnerships;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the quality and composition of the Company's loan and investment portfolios, including changes in the level of the Company's nonperforming assets and charge-offs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the Company's management of risks inherent in its loan portfolio, the credit quality of its borrowers, and the risk of a prolonged downturn in the real estate market, which could impair the value of the Company's collateral and its ability to sell collateral upon any foreclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability to maintain adequate liquidity by growing and retaining deposits and secondary funding sources, especially if the Company's or its industry's reputation become damaged;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The emergence of digital assets and payment stablecoins, and evolving legislative or regulatory frameworks, may alter deposit flows, competition, and credit intermediation. Changes or gaps in these emerging rules could adversely affect the Company's funding, liquidity, or overall financial performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability to maintain capital levels adequate to support the Company's business and to comply with the Consent Order directives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability of the Company to implement cost-saving initiatives and efficiency measures, as well as increase earning assets, in order to yield acceptable levels of profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the ability to generate sufficient future taxable income for the Company to realize its deferred tax assets, including the net operating loss carryforward;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timely development of competitive products and services and the acceptance of these products and services by new and existing customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in consumer spending and savings habits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the willingness of users to substitute competitors' products and services for the Company's products and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of unanticipated outflows of deposits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•technological and social media changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•potential exposure to fraud, negligence, computer theft, and cyber-crime;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•adverse developments in the financial industry generally, such as bank failures, responsive measures to mitigate and manage such developments, supervisory and regulatory actions and costs, and related impacts on customer and client behavior;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changing bank regulatory conditions, policies or programs, whether arising as new legislation or regulatory initiatives, that could lead to restrictions on activities of banks generally, or the Bank in particular, more restrictive regulatory capital requirements, increased costs, including deposit insurance premiums, regulation or prohibition of certain income producing activities or changes in the secondary market for loans and other products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•political developments, including government shutdowns and other significant disruptions and changes in the funding, size, scope and effectiveness of the federal government, its agencies and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the impact of changes in financial services policies, laws, and regulations, including laws, regulations, and policies concerning taxes, banking, securities, real estate and insurance, the application thereof by bank regulatory bodies, and the three branches of the federal government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the effect of changes in accounting standards, policies, and practices as may be adopted from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•estimates of the fair value and other accounting values, subject to impairment assessments, of certain of the Company's assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the economic impact of duties, tariffs, or other barriers or restrictions on trade, any retaliatory countermeasures, and the volatility and uncertainty arising therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the occurrence or continuation of widespread health emergencies or pandemics, significant natural disasters, severe weather conditions, floods, and other catastrophic events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•other risks and factors identified in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections and elsewhere in the 2024 Form 10-K and in this Form 10-Q and in filings the Company makes from time to time with the Securities and Exchange Commission ("SEC").

The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in the 2024 Form 10-K and this Form 10-Q, including those discussed in the section

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entitled "Risk Factors" in those filings. If one or more of the factors affecting forward-looking information and statements proves incorrect, then actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this Form 10-Q. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements. The Company will not update the forward-looking statements to reflect actual results or changes in the factors affecting the forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how these risks and uncertainties will affect it.

**Share Repurchase Program**

On August 25, 2025, the Company announced the adoption of a share repurchase program (the "Repurchase Program") pursuant to which the Company may purchase up to $15.0 million of the Company's common stock.

Repurchases may be made in open market purchases, block trades, or privately negotiated transactions, including upon the exercise of outstanding warrants to purchase common stock. The Company cannot predict when or if it will repurchase additional shares of common stock as the Repurchase Program will depend on a number of factors, including constraints specified in any SEC Rule 10b5-1 trading plans, price, and general business and market conditions.

During the three months ended September 30, 2025, the Company repurchased 659,949 shares of common stock at a weighted average price of $4.16 per share totaling $2.8 million.

For information regarding the Repurchase Program, please see Part II, Item 2 of this Form 10-Q.

**Sale of Mortgage Division**

On March 27, 2025, the Company completed the previously announced sale of its mortgage division operating as Monarch Mortgage. The sale, which included the transfer of certain assets and leases, resulted in a $0.2 million loss, primarily due to the write-off of fixed assets and lease impairment, and is reported in other noninterest income.

This transaction did not meet the criteria for classification as a discontinued operation under Accounting Standards Codification ("ASC") 205-20, Presentation of Financial Statements – Discontinued Operations, and is therefore reported within continuing operations as of and for all periods stated herein.

**Regulatory Matters**

On January 24, 2024, the Bank consented to the issuance of the Consent Order by the OCC ("Consent Order"). The Consent Order generally incorporates the provisions of the formal written agreement (the "Written Agreement") entered into between the Bank and the OCC on August 29, 2022, as well as adding new provisions. The Written Agreement principally concerned the Bank's fintech operations and required the Bank to continue enhancing its controls for assessing and managing the third-party, Bank Secrecy Act/Anti-Money Laundering, and information technology risks stemming from its fintech partnerships and adds time frames by which certain of the directives are required. The Consent Order also requires the Bank to maintain a leverage ratio of 10.0% and a total capital ratio of 13.0%, referred to as minimum capital ratios. As of September 30, 2025 and December 31, 2024, the Bank's capital ratios exceeded these minimum capital ratios. The Company believes it has made significant progress towards meeting the requirements of the Consent Order. Complete copies of the Written Agreement and the Consent Order are included as Exhibits 10.9 and 10.10, respectively, of the 2024 Form 10-K.

**Private Placements**

In the second quarter of 2024, the Company closed private placements in which it issued and sold shares of its common and preferred stock for gross proceeds of $161.6 million (collectively, the "Private Placements"). On June 20, 2024, the Company's shareholders approved an amendment to the Company's articles of incorporation authorizing the issuance of additional shares of common stock, thus enabling the conversion of the preferred shares issued in the Private Placements into shares of the Company's common stock. The conversion occurred on June 28, 2024 and November 7, 2024. Capital proceeds received, net of issuance costs, from the Private Placements totaled $152.1 million. The Private Placements also included the issuance of warrants to purchase common stock at $2.50 per share.

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The table below presents information pertaining to warrants to purchase the Company's common stock as of and for the period stated.

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| | | | |
|:---|:---|:---|:---|
|  | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** |
|  | **Warrants Issued April 3, 2024** | **Warrants Issued June 13, 2024** | **Total Warrants** |
| Warrants outstanding at beginning of period | 29027999 | 2424000 | 31451999 |
| Warrants exercised during the period (1) | (3903000) |  | (3903000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants outstanding at end of period | 25124999 | 2424000 | 27548999 |
| Remaining exercise term (years) | 3.51 | 3.70 |  |
| (1) Warrants to purchase 125,000 shares of common stock were exercised during the three months ended September 30, 2025. | (1) Warrants to purchase 125,000 shares of common stock were exercised during the three months ended September 30, 2025. | (1) Warrants to purchase 125,000 shares of common stock were exercised during the three months ended September 30, 2025. | (1) Warrants to purchase 125,000 shares of common stock were exercised during the three months ended September 30, 2025. |

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**General**

There were no changes to the Critical Accounting Policies disclosed in Item 7 of the 2024 Form 10-K.

Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current year presentations. The reclassifications had no effect on net income, net income per share, total assets, total liabilities, or stockholders' equity as previously reported.

**Comparison of Financial Condition as of September 30, 2025 and December 31, 2024** 

Total assets were $2.50 billion as of September 30, 2025, a decrease of $240.3 million from $2.74 billion as of December 31, 2024. Most of this decrease was attributable to a decline in loans held for investment, which decreased $199.1 million to $1.91 billion as of September 30, 2025, from $2.11 billion as of December 31, 2024. Of the decline in loans held for investment, $83.9 million was due to a continuation of the Company's actions beginning in 2024 to purposefully and selectively reduce balances of loans where borrowers did not represent in-market relationships. The allowance for credit losses ("ACL") was $20.5 million and $23.0 million as of September 30, 2025 and December 31, 2024, respectively.

Total deposits were $1.95 billion as of September 30, 2025, a net decrease of $228.4 million from December 31, 2024. The decline in the first nine months of 2025 was primarily due to a $134.6 million decrease in brokered time deposits.

Total stockholders' equity increased by $27.7 million to $355.5 million as of September 30, 2025, from $327.8 million at December 31, 2024, primarily due to additional capital of $9.8 million from the exercise of warrants issued in the Private Placements, a $10.7 million decrease in after-tax unrealized losses in the Company's portfolio of securities available for sale, and net income for the nine months ended September 30, 2025 of $6.5 million, partially offset by $2.8 million of share repurchases pursuant to the Repurchase Program.

**Comparison of Results of Operations for the Three and Nine Months Ended September 30, 2025 and 2024** 

For the three months ended September 30, 2025, the Company reported net income of $5.6 million, or $0.06 per diluted common share, compared to net income of $0.9 million, or $0.01 per diluted common share, for the same period of 2024.

For the nine months ended September 30, 2025, the Company reported net income of $6.5 million, or $0.07 per diluted common share, compared to a net loss of $13.4 million, or ($0.34) per diluted common share, for the same period of 2024.

Net income for the three and nine months ended September 30, 2025 included $2.3 million and $2.7 million, respectively, of after-tax loan fee income due to the payoff of the Company's largest previously criticized out-of-market loan relationship. In the 2025 periods, the Company received unearned sale proceeds, resulting in an after-tax release of reserves of $0.6 million and $0.8 million for the three and nine months ended September 30, 2025, respectively, which were reported as income on sale of mortgage servicing rights ("MSRs") on the consolidated statements of operations. After-tax severance costs were $0.1 million and $0.9 million for the three and nine months ended September 30, 2025, respectively. After-tax regulatory remediation expenses in connection with the Consent Order for both the three and

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nine months ended September 30, 2025 were $0, compared to $0.3 million and $3.4 million of after-tax costs incurred for the same respective periods in 2024.

Net income for the nine months ended September 30, 2025 also included an after-tax benefit of $1.0 million – primarily the recovery of non-credit-related amounts in the second quarter of 2025 reserved for in the prior year – as the Company concluded outstanding exit activities with a former fintech banking-as-a-service ("BaaS") partner. The net loss for the nine months ended September 30, 2024 included a second quarter $6.7 million non-cash, after-tax negative fair value adjustment recorded for an equity investment in a fintech company, partially offset by a $6.6 million after-tax recovery of credit losses on a specialty finance loan that was sold in the third quarter of 2024.

*Net Interest Income.* Net interest income is the excess of interest earned on loans, investments, and other interest-earning assets less the interest paid on deposits and borrowings and is the Company's primary revenue source. Net interest income is thereby affected by overall balance sheet size, changes in interest rates, and changes in the mix of investments, loans, deposits, and borrowings. Net interest income for the three and nine months ended September 30, 2025 was $21.9 million and $60.7 million, respectively, a decline of $2.8 million and $1.2 million from the same respective periods in 2024.

Interest income for the three and nine months ended September 30, 2025 was $36.2 million and $106.3 million, respectively, representing decreases of $3.0 million and $16.1 million from the same respective periods in 2024. The decline was primarily attributable to lower average balances of loans held for investment, partially offset by realized loan fee income of $3.0 million and $3.5 million recognized in the same respective periods upon the payoff of the aforementioned out-of-market loan. Interest expense was $14.3 million and $45.6 million for the three and nine months ended September 30, 2025, respectively, a decrease of $5.8 million and $17.3 million from the same respective periods in 2024, largely driven by the decline in average balances and costs of interest-bearing deposits.

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The following table presents the average balance sheets for the three months ended September 30, 2025 and 2024. Also shown are the amounts of interest earned on interest-earning assets, with related tax-equivalent yields, and interest expense on interest-bearing liabilities, with related rates, as well as a volume and rate analysis of changes in net interest income for the periods stated.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** |  |  |  |  |
|  | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** | **For the three months ended September 30,** |  |  |  |  |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **Total<br>Increase/** | **Increase/(Decrease)<br>Due to** | **Increase/(Decrease)<br>Due to** | **Increase/(Decrease)<br>Due to** | **Increase/(Decrease)<br>Due to** |
| *(Dollars in thousands)* | **Average<br>Balance** | **Interest** | **Yield/<br>Rate (1)** | **Average<br>Balance** | **Interest** | **Yield/<br>Rate (1)** | **(Decrease)** | **Volume (2)** | **Volume (2)** | **Rate (2)** | **Rate (2)** |
| **Average Assets** |  |  |  |  |  |  |  |  |  |  |  |
| Taxable securities | 343765 | 2728 | 3.17% | 321920 | 2282 | 2.84% | 446 | $| 155 | $| 291 |
| Tax-exempt securities (3) | 12216 | 87 | 2.85% | 12560 | 80 | 2.55% | 7 |  | (2) |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total securities | 355981 | 2815 | 3.16% | 334480 | 2362 | 2.82% | 453 |  | 153 |  | 300 |
| Interest-earning deposits in other banks | 129766 | 1383 | 4.26% | 149990 | 2053 | 5.48% | (670) |  | (277) |  | (393) |
| Federal funds sold | 3331 | 36 | 4.32% | 5868 | 81 | 5.52% | (45) |  | (35) |  | (10) |
| Loans held for sale | 16074 | 1059 | 26.35% | 65219 | 2242 | 13.75% | (1183) |  | (1689) |  | 506 |
| Loans held for investment (456) | 1932390 | 30941 | 6.40% | 2240559 | 32505 | 5.80% | (1564) |  | (4471) |  | 2907 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total average interest-earning assets | 2437542 | 36234 | 5.95% | 2796116 | 39243 | 5.61% | (3009) |  | (6319) |  | 3310 |
| Less: allowance for credit losses | (22138) |  |  | (32001) |  |  |  |  |  |  |  |
| Total noninterest-earning assets | 120449 |  |  | 203659 |  |  |  |  |  |  |  |
| Total average assets | 2535853 |  |  | 2967774 |  |  |  |  |  |  |  |
| **Average Liabilities and Stockholders' Equity:** |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing demand, money market, and savings | 732103 | 3789 | 2.07% | 844747 | 5398 | 2.56% | (1609) | $| (720) | $| (889) |
| Time (7) | 838825 | 8712 | 4.15% | 1003751 | 11586 | 4.62% | (2874) |  | (1904) |  | (970) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1570928 | 12501 | 3.18% | 1848498 | 16984 | 3.68% | (4483) |  | (2623) |  | (1860) |
| FHLB borrowings | 150000 | 1463 | 3.90% | 233090 | 2574 | 4.42% | (1111) |  | (918) |  | (193) |
| Subordinated notes and other borrowings (8) | 18087 | 338 | 7.47% | 39814 | 566 | 5.69% | (228) |  | (309) |  | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total average interest-bearing liabilities | 1739015 | 14302 | 3.29% | 2121402 | 20124 | 3.79% | (5822) |  | (3850) |  | (1972) |
| Noninterest-bearing demand deposits | 419612 |  |  | 482809 |  |  |  |  |  |  |  |
| Other noninterest-bearing liabilities | 31868 |  |  | 36683 |  |  |  |  |  |  |  |
| Stockholders' equity | 345358 |  |  | 326880 |  |  |  |  |  |  |  |
| Total average liabilities and stockholders' equity | 2535853 |  |  | 2967774 |  |  |  |  |  |  |  |
| Net interest income and margin (9) |  | 21932 | 3.60% |  | 19119 | 2.74% | 2813 | $ | (2469) | $ | 5282 |
| Cost of funds (10) |  |  | 2.65% |  |  | 3.09% |  |  |  |  |  |
| Net interest spread (11) |  |  | 2.66% |  |  | 1.82% |  |  |  |  |  |
| (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. |
| (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. |
| (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the three months ended September 30, 2025 and 2024, respectively. |
| (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. |
| (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. |
| (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $453 thousand and $311 thousand for the three months ended September 30, 2025 and 2024, respectively. |
| (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $22 thousand and $70 thousand for the three months ended September 30, 2025 and 2024, respectively. |
| (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $18 thousand and $25 thousand for the three months ended September 30, 2025 and 2024, respectively. |
| (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. |
| (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. |
| (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. |

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Average balances of interest-earning assets decreased $358.6 million to $2.44 billion for the three months ended September 30, 2025 compared to $2.80 billion for the same period of 2024. Relative to the year-ago period, this decrease reflected primarily lower average balances of loans held for investment. The yield on average loans held for investment was 6.40% and 5.80% for the third quarters of 2025 and 2024, respectively. Fee income realized from the payoff of the aforementioned out-of-market loan positively affected the yield on average loans held for investment by 62 basis points in the 2025 period. Interest income for the three months ended September 30, 2025 and 2024 included accretion of discounts on acquired loans of $0.5 million and $0.3 million, respectively.

Average balances of interest-bearing liabilities decreased $382.4 million to $1.74 billion for the three months ended September 30, 2025 compared to $2.12 billion for the same period of 2024. The decline relative to the year-ago period was primarily due to the exit of fintech BaaS deposit operations and the reduction of wholesale funding, reported in time deposits, and borrowings.

Cost of funds was 2.65% for the third quarter of 2025 compared to 3.09% for the third quarter of 2024, while cost of deposits was 2.51% and 2.91%, for the same respective periods. Lower cost of funds and lower cost of deposits in the 2025 periods relative to the year-ago periods were primarily due to the exit of higher cost fintech BaaS deposit operations and the reduction in wholesale deposits. Cost of deposits, excluding wholesale deposits, was 1.17% for the third quarter of 2025 compared to 1.71% for the third quarter of 2024.

Net interest income (on a taxable equivalent basis) for the three months ended September 30, 2025 was $21.9 million compared to $19.1 million for the same period in 2024. Interest income declined $3.0 million to $36.2 million

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for the three months ended September 30, 2025 from $39.2 million for the three months ended September 30, 2024, while interest expense declined $5.8 million to $14.3 million from $20.1 million for the same respective periods. Net interest margin improved to 3.60% for the third quarter of 2025 from 2.74% for the third quarter of 2024. For the third quarter of 2025, the aforementioned loan fee income of $3.0 million had a 49 basis point positive effect on net interest margin.

The following table presents the average balance sheets for the nine months ended September 30, 2025 and 2024. Also shown are the amounts of interest earned on interest-earning assets, with related tax-equivalent yields, and interest expense on interest-bearing liabilities, with related rates, as well as a volume and rate analysis of changes in net interest income for the periods stated.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** | **Average Balances, Income and Expense, Yields and Rates** |  |  |  |  |
|  | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** | **For the nine months ended September 30,** |  |  |  |  |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **Total<br>Increase/** | **Increase/(Decrease)<br>Due to** | **Increase/(Decrease)<br>Due to** | **Increase/(Decrease)<br>Due to** | **Increase/(Decrease)<br>Due to** |
| *(Dollars in thousands)* | **Average<br>Balance** | **Interest** | **Yield/<br>Rate (1)** | **Average<br>Balance** | **Interest** | **Yield/<br>Rate (1)** | **(Decrease)** | **Volume (2)** | **Volume (2)** | **Rate (2)** | **Rate (2)** |
| **Average Assets** |  |  |  |  |  |  |  |  |  |  |  |
| Taxable securities | 335265 | 7721 | 3.07% | 328024 | 7119 | 2.89% | 602 | $| 157 | $| 445 |
| Tax-exempt securities (3) | 12344 | 250 | 2.70% | 12584 | 236 | 2.50% | 14 |  | (5) |  | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total securities | 347609 | 7971 | 3.06% | 340608 | 7355 | 2.88% | 616 |  | 153 |  | 463 |
| Interest-earning deposits in other banks | 139943 | 4440 | 4.23% | 138255 | 5501 | 5.31% | (1061) |  | 67 |  | (1128) |
| Federal funds sold | 1866 | 60 | 4.29% | 7200 | 294 | 5.44% | (234) |  | (218) |  | (16) |
| Loans held for sale | 23177 | 3819 | 21.97% | 62425 | 6374 | 13.61% | (2555) |  | (4007) |  | 1452 |
| Loans held for investment (456) | 2014767 | 90065 | 5.96% | 2334126 | 102915 | 5.88% | (12850) |  | (14081) |  | 1231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total average interest-earning assets | 2527362 | 106355 | 5.61% | 2882614 | 122439 | 5.66% | (16084) |  | (18086) |  | 2003 |
| Less: allowance for credit losses | (22656) |  |  | (34149) |  |  |  |  |  |  |  |
| Total noninterest-earning assets | 124101 |  |  | 223613 |  |  |  |  |  |  |  |
| Total average assets | 2628807 |  |  | 3072078 |  |  |  |  |  |  |  |
| **Average Liabilities and Stockholders' Equity:** |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing demand, money market, and savings | 727333 | 10301 | 1.89% | 971362 | 19235 | 2.64% | (8934) | $| (4832) | $| (4102) |
| Time (7) | 910703 | 29194 | 4.27% | 985077 | 33506 | 4.54% | (4312) |  | (2530) |  | (1782) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1638036 | 39495 | 3.21% | 1956439 | 52741 | 3.59% | (13246) |  | (7362) |  | (5884) |
| FHLB borrowings | 150000 | 4342 | 3.86% | 226117 | 7353 | 4.34% | (3011) |  | (2475) |  | (536) |
| FRB borrowings |  |  |  | 30839 | 1080 | 4.67% | (1080) |  | (1080) |  |  |
| Subordinated notes and other borrowings (8) | 30732 | 1720 | 7.46% | 39840 | 1678 | 5.62% | 42 |  | (384) |  | 426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total average interest-bearing liabilities | 1818768 | 45557 | 3.34% | 2253235 | 62852 | 3.72% | (17295) |  | (11301) |  | (5994) |
| Noninterest-bearing demand deposits | 439589 |  |  | 499289 |  |  |  |  |  |  |  |
| Other noninterest-bearing liabilities | 32335 |  |  | 43095 |  |  |  |  |  |  |  |
| Stockholders' equity | 338115 |  |  | 276459 |  |  |  |  |  |  |  |
| Total average liabilities and stockholders' equity | 2628807 |  |  | 3072078 |  |  |  |  |  |  |  |
| Net interest income and margin (9) |  | 60798 | 3.21% |  | 59587 | 2.76% | 1211 | $ | (6786) | $ | 7997 |
| Cost of funds (10) |  |  | 2.69% |  |  | 3.04% |  |  |  |  |  |
| Net interest spread (11) |  |  | 2.27% |  |  | 1.94% |  |  |  |  |  |
| (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. | (1) Annualized. |
| (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. | (2) Change in income/expense due to both volume and rate has been allocated in proportion to the absolute dollar amounts of the change in each. |
| (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. | (3) Computed on a fully taxable equivalent basis assuming a 22.32% and 21.89% income tax rate for the nine months ended September 30, 2025 and 2024, respectively. |
| (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. | (4) Includes deferred loan fees/costs. |
| (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. | (5) Non-accrual loans have been included in the computations of average loan balances. |
| (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (6) Includes accretion of fair value adjustments (discounts) on acquired loans of $1.2 million and $915 thousand for the nine months ended September 30, 2025 and 2024, respectively. |
| (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (7) Includes amortization of fair value adjustments (premiums) on assumed time deposits of $82 thousand and $248 thousand for the nine months ended September 30, 2025 and 2024, respectively. |
| (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. | (8) Includes amortization of fair value adjustments (premiums) on assumed subordinated notes of $67 thousand and $75 thousand for the nine months ended September 30, 2025 and 2024, respectively. |
| (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. | (9) Net interest margin is net interest income divided by average interest-earning assets. |
| (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. | (10) Cost of funds is total interest expense divided by total interest-bearing liabilities and non-interest bearing demand deposits. |
| (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. | (11) Net interest spread is the yield on average interest-earning assets less the cost of average interest-bearing liabilities. |

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Average interest-earning assets were $2.53 billion for the nine months ended September 30, 2025 compared to $2.88 billion for the same period of 2024, a $355.3 million decrease. This decrease was primarily attributable to declines in average balances of loans held for investment, which decreased $319.4 million in the year-to-date period. Total interest income (on a taxable equivalent basis) decreased $16.1 million for the nine months ended September 30, 2025 from the same period of 2024 and was primarily due to lower average balances on loans held for investment and loans held for sale. The yield on loans held for investment was 5.96% and 5.88% for the nine months ended September 30, 2025 and 2024, respectively. Interest income on loans held for investment for the nine months ended September 30, 2025 included $3.5 million of fee income from the payoff of the aforementioned out-of-market loan, which had a 23 basis point positive effect on the yield on loans held for investment. Interest income for the nine months ended September 30, 2025 and 2024 included accretion of discounts on acquired loans of $1.2 million and $0.9 million, respectively.

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Average interest-bearing liabilities were $1.82 billion for the nine months ended September 30, 2025 compared to $2.25 billion for the same period of 2024, a $434.5 million decrease. Interest expense decreased by $17.3 million to $45.6 million for the nine months ended September 30, 2025 compared to $62.9 million for the same period of 2024. Cost of interest-bearing liabilities decreased to 3.34% for the nine months ended September 30, 2025 from 3.72% for the same period in 2024, while cost of funds were 2.69% and 3.04% for the same respective periods. Lower cost of funds in the 2025 period was primarily due to the exit of higher cost fintech BaaS deposit operations.

Net interest income (on a taxable equivalent basis) was $60.8 million for the nine months ended September 30, 2025 compared to $59.6 million for the same period in 2024. Net interest margin was 3.21% and 2.76% for the first nine months of 2025 and 2024, respectively. Fee income from the aforementioned paid off loan had a positive 18 basis point effect on net interest margin for the nine months ended September 30, 2025.

*Provision for Credit Losses*. A recovery of credit losses of $1.8 million was reported for the three months ended September 30, 2025, whereas a $2.5 million recovery of credit losses was reported for the nine months ended September 30, 2025. For the three and nine months ended September 30, 2024, the Company recorded total recoveries of credit losses of $6.2 million and $4.1 million, respectively. The recoveries of credit losses in the 2025 periods were primarily attributable to declines in the portfolio of loans held for investment of $65.9 million and $199.1 million, respectively, and recoveries of loans charged-off in prior periods. The recoveries of credit losses in the 2024 periods were primarily attributable to an $8.4 million recovery from the sale of previously reported specialty finance loan and lower reserve needs due to loan portfolio balance reductions, partially offset by higher specific reserves for certain purchased loans.

*Noninterest Income*. The following tables present a summary of noninterest income and the dollar and percentage change for the periods presented.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended** | **For the three months ended** |  |  |
| *(Dollars in thousands)* | **September 30, 2025** | **September 30, 2024** | **Change $** | **Change %** |
| Fair value adjustments of other equity investments | $163 | $160 | $3 | 1.9% |
| Residential mortgage banking income | 5 | 2746 | (2741) | (99.8%) |
| MSRs | (48) | (2915) | 2867 | (98.4%) |
| Income (loss) on sale of MSRs | 737 | (1011) | 1748 | (172.9%) |
| Wealth and trust management | 458 | 730 | (272) | (37.3%) |
| Service charges on deposit accounts | 725 | 376 | 349 | 92.8% |
| Increase in cash surrender value of bank owned life insurance | 9 | 127 | (118) | (92.9%) |
| Bank and purchase card, net | 567 | 690 | (123) | (17.8%) |
| Swap transaction fees | 258 |  | 258 | 100.0% |
| Other | 959 | 1795 | (836) | (46.6%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | $3833 | $2698 | $1135 | 42.1% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine months ended** | **For the nine months ended** |  |  |
| *(Dollars in thousands)* | **September 30, 2025** | **September 30, 2024** | **Change $** | **Change %** |
| Fair value adjustments of other equity investments | $8 | $(8384) | $8392 | (100.1%) |
| Residential mortgage banking income | 847 | 8214 | (7367) | (89.7%) |
| MSRs | (185) | (166) | (19) | 11.4% |
| Income (loss) on sale of MSRs | 1026 | (1011) | 2037 | (201.5%) |
| Wealth and trust management | 1321 | 1873 | (552) | (29.5%) |
| Service charges on deposit accounts | 1903 | 1123 | 780 | 69.5% |
| Increase in cash surrender value of bank owned life insurance | 25 | 797 | (772) | (96.9%) |
| Bank and purchase card, net | 1760 | 1445 | 315 | 21.8% |
| Loss on sale of securities available for sale |  | (67) | 67 | (100.0%) |
| Swap transaction fees | 258 |  | 258 | 100.0% |
| Other | 3186 | 6934 | (3748) | (54.1%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | $10149 | $10758 | $(609) | (5.7%) |

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Noninterest income in the nine months ended September 30, 2024 included an $8.5 million non-cash, negative fair value adjustment of an equity investment the Company holds in a fintech company. The declines in mortgage banking

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income in the three and nine months ended September 30, 2025 compared to the same periods of 2024 were due to the previously mentioned sales of the mortgage division in the first quarter of 2025 and MSR portfolio in the third quarter of 2024. Mortgage servicing income (loss) represents fair value adjustments of MSR assets. Additionally, income on the sale of MSRs in the three and nine months ended September 30, 2025 included $0.7 million and $1.0 million, respectively, of reserves released upon the receipt of additional sales proceeds that were contractually held back from the 2024 sales. Higher service charges on deposits accounts in the 2025 periods compared to the same periods of 2024 were primarily due to the execution of a project to more closely align products and pricing with competitors in the markets in which the Bank operates. The decline in bank owned life insurance income in the 2025 periods compared to the same periods of 2024 was due to the surrender of policies at their cash surrender values in the 2024 periods. The decline in other noninterest income was driven by the decrease in the number of fintech indirect lending relationships, which contributed $0.6 million and $3.5 million of noninterest income in the nine months ended September 30, 2025 and 2024, respectively.

*Noninterest Expense.* The following tables present a summary of noninterest expense and the dollar and percentage change for the periods stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the three months ended** | **For the three months ended** |  |  |
| *(Dollars in thousands)* | **September 30, 2025** | **September 30, 2024** | **Change $** | **Change %** |
| Salaries and employee benefits | $11388 | $13938 | $(2550) | (18.3%) |
| Occupancy and equipment | 1190 | 1394 | (204) | (14.6%) |
| Technology and communication | 2314 | 2767 | (453) | (16.4%) |
| Legal and regulatory filings | 1008 | 614 | 394 | 64.2% |
| Advertising and marketing | 267 | 222 | 45 | 20.3% |
| Audit fees | 161 | 498 | (337) | (67.7%) |
| FDIC insurance | 239 | 1130 | (891) | (78.8%) |
| Intangible amortization | 223 | 265 | (42) | (15.8%) |
| Other contractual services | 645 | 1634 | (989) | (60.5%) |
| Other taxes and assessments | 895 | 759 | 136 | 17.9% |
| Regulatory remediation |  | 357 | (357) | (100.0%) |
| Other | 1711 | 2876 | (1165) | (40.5%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | $20041 | $26454 | $(6413) | (24.2%) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine months ended** | **For the nine months ended** |  |  |
| *(Dollars in thousands)* | **September 30, 2025** | **September 30, 2024** | **Change $** | **Change %** |
| Salaries and employee benefits | $36998 | $44918 | $(7920) | (17.6%) |
| Occupancy and equipment | 3700 | 4221 | (521) | (12.3%) |
| Technology and communication | 7663 | 7378 | 285 | 3.9% |
| Legal and regulatory filings | 1842 | 1424 | 418 | 29.4% |
| Advertising and marketing | 586 | 702 | (116) | (16.5%) |
| Audit fees | 1198 | 1948 | (750) | (38.5%) |
| FDIC insurance | 2363 | 4324 | (1961) | (45.4%) |
| Intangible amortization | 701 | 828 | (127) | (15.3%) |
| Other contractual services | 1673 | 5299 | (3626) | (68.4%) |
| Other taxes and assessments | 2771 | 2290 | 481 | 21.0% |
| Regulatory remediation |  | 4398 | (4398) | (100.0%) |
| Other | 5506 | 10469 | (4963) | (47.4%) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | $65001 | $88199 | $(23198) | (26.3%) |

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Excluding regulatory remediation, noninterest expense decreased $6.1 million and $18.8 million for the three and nine months ended September 30, 2025, respectively, from the same respective periods of 2024. These declines relative to the prior periods were primarily due to lower expenses for salaries and employee benefits, other contractual services, Federal Deposit Insurance Corporation ("FDIC") insurance assessments, audit fees, and other noninterest expense.

The decline in salaries and employee benefits in the three and nine months ended September 30, 2025 reflected a reduction in headcount as the Company continues to right-size its workforce, with the completion of certain regulatory directives and the transitioning to a more traditional community banking model. As of September 30, 2025 and 2024,

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the Company had 311 and 468 employees, respectively. Included in salaries and employee benefits expense for the three and nine months ended September 30, 2025 was $1.0 million and $3.0 million of expense, respectively, for performance-based restricted stock awards relating to 3,400,000 shares of the Company's common stock granted to certain executive officers, which vest contingent upon the Company achieving specified performance thresholds over three one-year measurement periods. There were no such expenses in the 2024 periods. Also included in salaries and employee benefits expense were severance costs of $0.1 million and $1.1 million for the three and nine months ended September 30, 2025, respectively, compared to $0 for the same respective periods in 2024.

Lower regulatory remediation costs, audit fees, and other contractual services fees in the 2025 periods compared to the same periods of 2024 reflect a reduction in the use of outside consulting and audit services, also due to the completion of certain regulatory directives. Lower FDIC insurance assessments in the 2025 periods compared to the same periods of 2024 reflect an improved regulatory position and a smaller balance sheet.

The decrease in other noninterest expense was partially due to the second quarter of 2025 recovery of non-credit-related amounts reserved for in the prior year, upon the conclusion of exit activities with a former fintech BaaS partner. Also contributing to the decline in other noninterest expense in the 2025 periods compared to the same periods of 2024 were lower mortgage servicing fees due to the 2025 first quarter sale of the mortgage division, in addition to the 2024 periods including $0.9 million of excise taxes related to the surrender of bank owned life insurance policies.

*Income Tax Expense*. For the three and nine months ended September 30, 2025, effective tax rates were 25.3% and 22.9%, respectively, compared to 38.8% and 3.1% for the three and nine months ended September 30, 2024. The effective income tax rates for the three and nine months ended September 30, 2025 reflect the potential limitation on the deductibility of compensation costs in future taxable periods. The higher effective income tax rate for the three months ended September 30, 2024 was primarily attributable to the vesting of restricted stock awards, where the fair value of the underlying stock at the time of vesting was lower than the fair value previously recognized for financial reporting purposes. The lower effective income tax rate for the nine months ended September 30, 2024 was primarily attributable to $2.0 million of tax expense recognized in the second quarter of 2024 upon surrendering bank owned life insurance policies. Taxes on such earnings were previously permanently deferred but became subject to tax upon the surrender of the policies.

**Analysis of Financial Condition**

*Loan Portfolio.* The Company makes loans to commercial entities and to individuals. Loan terms vary as to interest rate, repayment, and collateral requirements based on the type of loan and the creditworthiness of the borrower. Credit risk tends to be geographically concentrated in that a majority of the loans are to borrowers located in the markets served by the Company. All loans are underwritten within specific lending policy guidelines that are established to maximize the Company's profitability within an acceptable level of business risk*.*

The following table presents the Company's loan portfolio by category of loan and the percentage of loans in each category to total loans as of the dates stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **Amount** | **Percent** | **Amount** | **Percent** |
| Commercial and industrial | $276609 | 14.5% | $354904 | 16.8% |
| Real estate – construction, commercial | 73473 | 3.8% | 114491 | 5.4% |
| Real estate – construction, residential | 50892 | 2.7% | 51807 | 2.4% |
| Real estate – commercial | 818101 | 42.8% | 847842 | 40.2% |
| Real estate – residential | 654030 | 34.2% | 692253 | 32.8% |
| Real estate – farmland | 4645 | 0.2% | 5520 | 0.3% |
| Consumer | 33778 | 1.8% | 43938 | 2.1% |
| Gross loans held for investment | 1911528 | 100.0% | 2110755 | 100.0% |
| Deferred costs, net of loan fees | 1198 |  | 1042 |  |
| Gross loans held for investment, net of deferred costs | 1912726 |  | 2111797 |  |
| Less: allowance for credit losses | (20503) |  | (23023) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loans | $1892223 |  | $2088774 |  |
| Loans held for sale<br> (not included in totals above) | $12819 |  | $30976 |  |

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The following table presents the Company's portfolio of commercial real estate loans by property type as of the dates stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **Amount** | **Percent** | **Amount** | **Percent** |
| Commercial real estate – owner occupied | $191933 | 23.5% | $193608 | 22.8% |
| Commercial real estate – non-owner occupied |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hospitality | 147041 | 18.0% | 120910 | 14.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Multi-family | 172315 | 21.1% | 186619 | 22.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;Retail | 98236 | 12.0% | 104363 | 12.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Office | 64693 | 7.9% | 73871 | 8.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Mixed use | 51670 | 6.3% | 49666 | 5.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;Warehouse and industrial | 36884 | 4.5% | 39830 | 4.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 55329 | 6.8% | 78975 | 9.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total real estate – commercial | $818101 | 100.0% | $847842 | 100.0% |

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The current lending environment for commercial real estate ("CRE") loans has heightened risk due to a higher interest rate environment. Potential negative impacts include higher debt service burdens for floating rate loans and fixed rate loans originated in a lower rate environment that reprice or mature, requiring renewal or refinancing. As these loans mature, they may be repriced at significantly higher interest rates leading to increased debt service costs that can strain borrowers' ability to meet payment obligations. In some cases, the higher cost of refinancing may lead to loan defaults, particularly if property cash flows have not increased relatively.

Additionally, collateral values overall may be impaired by higher capitalization rates, further complicating refinancing efforts and increasing credit risk to the Bank. Certain CRE collateral types have experienced declining occupancy, demand, and rental rates, which could potentially lead to material declines in property level economics and further weaken borrowers' ability to service their debt.

The Bank's credit administration department led by its Chief Credit Officer performs periodic analyses of emerging trends by geography where the Bank has the largest concentrations by CRE property type. These analyses include all real estate property types and geographic markets represented in the loan portfolio and are provided to the Bank's board of directors to assess whether the CRE lending strategy and risk appetite continue to be appropriate, considering changes in local market conditions and the Bank's exposure to collateral type concentrations. Also, concentration limits by real estate collateral type are approved and monitored by the board of directors. As of September 30, 2025, the Bank was in compliance with all limits.

The following table presents the remaining maturities, based on contractual maturity, by loan type and by rate type (variable or fixed), as of September 30, 2025.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **Variable rate** | **Variable rate** | **Variable rate** | **Variable rate** | **Fixed rate** | **Fixed rate** | **Fixed rate** | **Fixed rate** |
| *(Dollars in thousands)* | **Total Maturities** | **One Year<br>or Less** | **Total** | **1-5 years** | **5-15 years** | **More than 15 years** | **Total** | **1-5 years** | **5-15 years** | **More than 15 years** |
| Commercial and industrial | $276609 | $52458 | $121555 | $95729 | $24242 | $1584 | $102596 | $39056 | $45520 | $18020 |
| Real estate – construction, commercial | 73473 | 12717 | 47013 | 17914 | 3813 | 25286 | 13743 | 12892 | 851 |  |
| Real estate – construction, residential | 50892 | 43982 | 2042 | 1730 |  | 312 | 4868 | 406 |  | 4462 |
| Real estate – commercial | 818101 | 100529 | 437234 | 101376 | 160325 | 175533 | 280338 | 179175 | 92148 | 9015 |
| Real estate – residential | 654030 | 12123 | 383615 | 19850 | 73377 | 290388 | 258292 | 31332 | 27720 | 199240 |
| Real estate – farmland | 4645 | 1415 | 1983 | 146 | 221 | 1616 | 1247 | 413 | 117 | 717 |
| Consumer loans | 33778 | 2081 | 4647 | 4558 | 89 |  | 27050 | 24118 | 2932 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross loans | $1911528 | $225305 | $998089 | $241303 | $262067 | $494719 | $688134 | $287392 | $169288 | $231454 |

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*Allowance for Credit Losses*. In determining the adequacy of the Company's ACL, management makes estimates based on facts available at the time the ACL is determined. Such estimation requires significant judgment at the time made. Management believes that the Company's ACL was adequate as of September 30, 2025 and December 31, 2024. There can be no assurance, however, that adjustments to the ACL will not be required in the future. Changes in the economic assumptions underlying management's estimates and judgments, adverse developments in the economy, on a national basis or in the Company's market area, and changes in the circumstances of particular borrowers are criteria, among others that could increase the level of the ACL required, resulting in charges to the provision for credit losses for loans. In addition, bank regulatory agencies periodically review the Bank's ACL and may require an increase in the ACL or the recognition of further loan charge-offs, based on their judgment of the facts at the time of their review that may differ than that of management.

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The following tables present an analysis of the change in the ACL by loan type as of and for the periods stated.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** | **For the three months ended September 30, 2025** |
| *(Dollars in thousands)* | **Commercial and industrial** | **Real estate – construction, commercial** | **Real estate – construction, residential** | **Real estate – commercial** | **Real estate – residential** | **Real estate – farmland** | **Consumer** | **Total** |
| ACL, beginning of period | $5846 | $1272 | $398 | $5879 | $8001 | $15 | $563 | $21974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Recovery of) provision for credit losses - loans | (2594) | (135) | (8) | 314 | (304) | (1) | 928 | (1800) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (1781) |  |  | (374) | (92) |  | (1035) | (3282) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 3303 |  |  | 38 | 222 |  | 48 | 3611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net recoveries (charge-offs) | 1522 |  |  | (336) | 130 |  | (987) | 329 |
| ACL, end of period | $4774 | $1137 | $390 | $5857 | $7827 | $14 | $504 | $20503 |
| Ratio of net charge-offs (recoveries) to average loans outstanding | -1.81% | 0.00% | 0.00% | 0.17% | -0.08% | 0.00% | 9.85% | -0.07% |
|  | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** | **For the three months ended September 30, 2024** |
| *(Dollars in thousands)* | **Commercial and industrial** | **Real estate – construction, commercial** | **Real estate – construction, residential** | **Real estate – commercial** | **Real estate – residential** | **Real estate – farmland** | **Consumer** | **Total** |
| ACL, beginning of period | $6916 | $3188 | $737 | $10262 | $6240 | $18 | $675 | $28036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recovery of) credit losses - loans | (6059) | (45) | (77) | (69) | (241) | 1 | 490 | (6000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (6001) |  |  | (1109) | (30) |  | (773) | (7913) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 11095 |  |  |  | 60 |  | 175 | 11330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net recoveries (charge-offs) | 5094 |  |  | (1109) | 30 |  | (598) | 3417 |
| ACL, end of period | $5951 | $3143 | $660 | $9084 | $6029 | $19 | $567 | $25453 |
| Ratio of net charge-offs (recoveries) to average loans outstanding | -4.91% | 0.00% | 0.00% | 0.53% | -0.02% | 0.00% | 4.51% | -0.61% |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** | **For the nine months ended September 30, 2025** |
| *(Dollars in thousands)* | **Commercial and industrial** | **Real estate – construction, commercial** | **Real estate – construction, residential** | **Real estate – commercial** | **Real estate – residential** | **Real estate – farmland** | **Consumer** | **Total** |
| ACL, beginning of period | $5767 | $2057 | $540 | $5963 | $7933 | $18 | $745 | $23023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Recovery of) provision for credit losses - loans | (2636) | (920) | (150) | (45) | (120) | (4) | 1375 | (2500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (6442) |  |  | (437) | (215) |  | (2070) | (9164) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 8085 |  |  | 376 | 229 |  | 454 | 9144 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net recoveries (charge-offs) | 1643 |  |  | (61) | 14 |  | (1616) | (20) |
| ACL, end of period | $4774 | $1137 | $390 | $5857 | $7827 | $14 | $504 | $20503 |
| Ratio of net charge-offs (recoveries) to average loans outstanding | -1.95% | 0.00% | 0.00% | 0.03% | -0.01% | 0.00% | 16.12% | 0.00% |
|  | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** | **For the nine months ended September 30, 2024** |
| *(Dollars in thousands)* | **Commercial and industrial** | **Real estate – construction, commercial** | **Real estate – construction, residential** | **Real estate – commercial** | **Real estate – residential** | **Real estate – farmland** | **Consumer** | **Total** |
| ACL, beginning of period | $13787 | $4024 | $1094 | $9929 | $6286 | $15 | $758 | $35893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Recovery of) provision for credit losses - loans | (2351) | (842) | (434) | 264 | (259) | 4 | 1218 | (2400) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Charge-offs | (19940) |  | (39) | (1109) | (74) |  | (2063) | (23225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recoveries | 14455 |  |  |  | 76 |  | 654 | 15185 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs | (5485) |  | (39) | (1109) | 2 |  | (1409) | (8040) |
| ACL, end of period | $5951 | $3182 | $621 | $9084 | $6029 | $19 | $567 | $25453 |
| Ratio of net charge-offs to average loans outstanding | 4.67% | 0.00% | 0.25% | 0.52% | 0.00% | 0.00% | 10.06% | 1.38% |

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The ACL includes specific reserves for individually evaluated loans and a general allowance applicable to all loan categories; however, management has allocated the ACL by loan type to provide an indication of the relative risk characteristics of the loan portfolio. The allocation is an estimate and should not be interpreted as an indication that charge-offs will occur in these amounts or that the allocation indicates future trends, and does not restrict the usage of the allowance for any specific loan or category. The following table presents the allocation of the ACL by loan category and the percentage of loans in each category to total loans as of the dates stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| *(Dollars in thousands)* | **ACL Amount** | **% of<br>Loans** | **ACL Amount** | **% of<br>Loans** |
| Commercial and industrial | $4774 | 14.5% | $5767 | 16.8% |
| Real estate – construction, commercial | 1137 | 3.8% | 2057 | 5.4% |
| Real estate – construction, residential | 390 | 2.7% | 540 | 2.4% |
| Real estate – commercial | 5857 | 42.8% | 5963 | 40.2% |
| Real estate – residential | 7827 | 34.2% | 7933 | 32.8% |
| Real estate – farmland | 14 | 0.2% | 18 | 0.3% |
| Consumer | 504 | 1.8% | 745 | 2.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; Total | $20503 | 100.0% | $23023 | 100.0% |

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*Nonperforming Assets.* The following table presents a summary of nonperforming assets and various measures as of the dates stated.

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| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | **September 30, 2025** | **December 31, 2024** |
| Nonaccrual loans held for investment | $24325 | $22957 |
| Loans past due 90 days and still accruing | 4253 | 2486 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming loans | $28578 | $25443 |
| Other real estate owned ("OREO") (1) |  | 279 |
| Other non-real estate owned (1) | 222 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming assets | $28800 | $25722 |
| Loans held for investment | $1912726 | $2111797 |
| Total assets | $2496949 | $2737260 |
| ACL on loans held for investment | $20503 | $23023 |
| ACL to loans held for investment | 1.07% | 1.09% |
| ACL to nonaccrual loans | 84.29% | 100.29% |
| ACL to nonperforming loans | 71.74% | 90.49% |
| Nonaccrual loans to loans held for investment | 1.27% | 1.09% |
| Nonperforming loans to loans held for investment | 1.49% | 1.20% |
| Nonperforming loans to total assets | 1.14% | 0.93% |
| Nonperforming assets to total assets | 1.15% | 0.94% |
| (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. | (1) Included in other assets on the consolidated balance sheets. |

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The increase in nonperforming loans since December 31, 2024 was primarily attributable to a $4.7 million multifamily loan that was placed on nonaccrual status in the third quarter of 2025. The loan was current as to principal and interest as of September 30, 2025, and based on the payment performance, strength of the guarantors, and value of the collateral, the Company believes that future credit losses, if any, will not be significant.

Loans are generally placed into nonaccrual status when they are past due 90 days or more as to either principal or interest or when, in the opinion of management, the collection of principal and/or interest is in doubt. A loan remains in nonaccrual status until the loan is current as to payment of both principal and interest or past due less than 90 days and the borrower demonstrates the ability to pay and remain current. For nonaccrual loans, when cash payments are received, they are applied to principal first, then to accrued interest. It is the Company's policy not to record interest income on nonaccrual loans until principal has become current. In certain instances, accruing loans that are past due 90 days or more as to principal or interest may not be placed on nonaccrual status, if the Company determines that the loans are well-secured and are in the process of collection. OREO includes properties that have been substantively repossessed or acquired in complete or partial satisfaction of debt. Such properties, which are held for resale, are initially stated at fair value, including a reduction for the estimated selling expenses, which becomes the carrying value. In subsequent periods, such properties are stated at the lower of the restated carrying value or fair value.

*Investment Securities.* The investment portfolio is used as a source of interest income, credit risk diversification, and liquidity, as well as to manage interest rate sensitivity and provide collateral for short-term borrowings. Securities in the investment portfolio classified as securities available for sale ("AFS") may be sold in response to changes in market interest rates, securities' prepayment risk, liquidity needs, and other similar factors, and are carried at estimated fair value. The fair value of the Company's AFS investment securities portfolio was $341.4 million as of September 30, 2025, an increase of $29.3 million from $312.0 million at December 31, 2024, primarily due to the purchase of securities. As a result of elevated market interest rates, the Company's portfolio of AFS securities had unrealized losses of approximately $41.6 million and $55.5 million as of September 30, 2025 and December 31, 2024, respectively, of which approximately 83% and 81%, respectively, were related to securities backed by U.S. government agencies as of the same dates.

As of September 30, 2025 and December 31, 2024, the majority of the investment securities portfolio consisted of securities rated investment grade by a leading rating agency. Investment grade securities are judged to have a low risk of default, to be of the best quality, and to carry the smallest degree of investment risk. At September 30, 2025 and December 31, 2024, securities with a fair value of $176.6 million and $268.9 million, respectively, were pledged to secure the Bank's borrowing facility with the Federal Home Loan Bank of Atlanta ("FHLB"). As of September 30, 2025 and December 31, 2024, the Company had pledged securities with a fair value of $0 and $16.3 million, respectively, as collateral for the Federal Reserve Bank of Richmond ("FRB") Discount Window. The decline in

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pledged securities as of September 30, 2025 from December 31, 2024 with both FHLB and FRB reflects the release of securities held as collateral.

The Company reviews its AFS investment securities portfolio for potential credit losses at least quarterly. AFS investment securities with unrealized losses are generally a result of pricing changes due to changes in the current interest rate environment and not as a result of permanent credit impairment. The Company does not intend to sell nor does it believe that it will be required to sell, any of its impaired securities prior to the recovery of the amortized cost. No ACL has been recognized for AFS securities as of both September 30, 2025 and December 31, 2024.

Restricted equity investments consisted of stock in the FHLB (carrying basis $9.1 million and $9.4 million at September 30, 2025 and December 31, 2024, respectively), FRB stock (carrying value of $9.4 million at both September 30, 2025 and December 31, 2024, respectively), and stock in the Company's correspondent bank (carrying value of $0.5 million at both September 30, 2025 and December 31, 2024). Restricted equity investments are carried at cost.

The Company has various other equity investments, including an investment in a fintech company and limited partnerships, totaling $4.9 million and $4.8 million as of September 30, 2025 and December 31, 2024, respectively.

The Company also holds investments in early-stage focused investment funds and low-income housing partnerships, which totaled $20.8 million and $19.4 million as of September 30, 2025 and December 31, 2024, respectively, and are reported in other investments on the consolidated balance sheets.

The following table presents the amortized cost of the investment portfolio by contractual maturities, as well as the weighted average yields for each of the maturity ranges as of and for the period stated. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Within One Year** | **Within One Year** | **One to Five Years** | **One to Five Years** | **Five to Ten Years** | **Five to Ten Years** | **Over Ten Years** | **Over Ten Years** |  |
| *(Dollars in thousands)* | **Amortized<br>Cost** | **Weighted<br>Average<br>Yield** | **Amortized<br>Cost** | **Weighted<br>Average<br>Yield** | **Amortized<br>Cost** | **Weighted<br>Average<br>Yield** | **Amortized<br>Cost** | **Weighted<br>Average<br>Yield** | **Total Amortized Cost** |
| Securities available for sale |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage backed securities | $— |  | $1244 | 2.80% | $13340 | 2.15% | $204873 | 2.50% | $219457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U. S. Treasury and agencies | 7501 | 0.87% | 36528 | 1.23% | 29658 | 2.39% | 5218 | 1.89% | 78905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and municipal | 889 | 3.57% | 12832 | 2.46% | 30223 | 2.15% | 5408 | 3.07% | 49352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 1500 | 7.00% | 10375 | 7.58% | 22363 | 4.15% | 500 | 4.00% | 34738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $9890 |  | $60979 |  | $95584 |  | $215999 |  | $382452 |

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*Deposits.* The principal sources of funds for the Company are deposits, including transaction accounts (demand and money market accounts), time deposits, and savings accounts, of customers in the Company's primary geographic market area. Such customers provide the Bank a source of fee income and cross-marketing opportunities and are generally a lower cost source of funding for the Bank.

In prior years, deposits sourced through fintech partnerships, inclusive of fintech BaaS deposits, were a significant source of deposits for the Company. In the fourth quarter of 2024, the Company completed the exit of its fintech BaaS deposit operations, thus substantially reducing its fintech-related deposit exposure to approximately 1.0% of deposits as of December 31, 2024. As of September 30, 2025 and December 31, 2024, fintech-related deposits totaled $4.7 million and $21.3 million, respectively.

Brokered deposit balances are sourced through intermediaries and are an unsecured source of funding for the Bank. Brokered deposits were added throughout 2023 and early 2024 to enhance liquidity in light of financial industry events that began in March 2023 and in anticipation of the exit of the Company's fintech BaaS deposit operations. Brokered deposits represented approximately 13.7% and 18.5% of total deposits as of September 30, 2025 and December 31, 2024, respectively, which consisted entirely of time deposits at September 30, 2025. The Bank has a liquidity management program, with oversight by the Bank's asset and liability management committee (the "ALCO"), that sets forth guidelines for the desired maximum level of brokered deposits, which is 20.0% of total deposits. In recent quarters, the Company has reduced levels of brokered deposits and expects to continue to reduce levels in future periods to a level of 10.0% or less of total deposits. As certain brokered deposits have multiple-year terms, the Company expects brokered deposits to be a funding source for several years.

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Total deposits decreased $228.4 million from $2.18 billion as of December 31, 2024 to $1.95 billion as of September 30, 2025, as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Deposits, excluding fintech-related and brokered deposits, decreased $77.1 million from approximately $1.76 billion as of December 31, 2024 to approximately $1.68 billion as of September 30, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Brokered deposits decreased $134.6 million from approximately $402.5 million, or 18.5% of total deposits, as of December 31, 2024 to approximately $267.9 million, or 13.7% of total deposits, as of September 30, 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fintech-related deposits decreased $16.6 million from approximately $21.3 million as of December 31, 2024 to approximately $4.7 million as of September 30, 2025. Remaining fintech-related deposits as of September 30, 2025 included funds in the process of escheatment or distribution to customers, fintech partner corporate operating accounts, and fintech partner corporate accounts held as reserves.

Estimated uninsured deposits totaled approximately $404.3 million as of September 30, 2025, or 19.8% of total deposits, compared to $399.3 million, or 18.0% of total deposits, as of December 31, 2024.

The following table presents a summary of average deposits and the weighted average rate paid for the periods stated. The decline in average balances and rate for interest-bearing demand accounts reflects the exit of fintech BaaS depository operations.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the nine months ended** | **For the nine months ended** | **For the nine months ended** | **For the nine months ended** |
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** |
| *(Dollars in thousands)* | **Average<br>Balance** | **Average Rate** | **Average<br>Balance** | **Average Rate** |
| Noninterest-bearing demand | $439589 |  | $499289 |  |
| Interest-bearing: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Demand | 239777 | 0.44% | 478664 | 2.35% |
| &nbsp;&nbsp;&nbsp;&nbsp;Savings | 102296 | 4.12% | 110102 | 4.68% |
| &nbsp;&nbsp;&nbsp;&nbsp;Money market | 385260 | 2.20% | 382596 | 2.41% |
| &nbsp;&nbsp;&nbsp;&nbsp;Time | 910703 | 4.27% | 985077 | 4.54% |
| Total interest-bearing | $1638036 |  | $1956439 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total average deposits | $2077625 |  | $2455728 |  |

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The following table presents maturities of time deposits for certificate of deposits of $250 thousand or greater as of the dates stated.

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| | | |
|:---|:---|:---|
| *(Dollars in thousands)* | **September 30, 2025** | **December 31, 2024** |
| Maturing in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3 months or less | $31557 | $38758 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 3 months through 6 months | 34373 | 33845 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 6 months through 12 months | 55319 | 60308 |
| &nbsp;&nbsp;&nbsp;&nbsp;Over 12 months | 29487 | 31117 |
|  | $150736 | $164028 |

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*Borrowings.* The Company uses short-term and long-term borrowings from various sources, including FHLB advances and FRB advances, to fund assets and operations. The following tables present information on the balances and interest rates on borrowings as of and for the periods stated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** | **As of and for the nine months ended September 30, 2025** |
| *(Dollars in thousands)* | **Period-End Balance** | **Highest Month-End Balance** | **Average Balance** | **Weighted Average Rate** |
| FHLB borrowings | $150000 | $150000 | $150000 | 3.86% |
|  | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** | **As of and for the year ended December 31, 2024** |
| *(Dollars in thousands)* | **Period-End Balance** | **Highest Month-End Balance** | **Average Balance** | **Weighted Average Rate** |
| FHLB borrowings | $150000 | $280000 | $213003 | 4.27% |
| FRB borrowings |  | 65000 | 23087 | 4.68% |

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FHLB advances are secured by collateral consisting of a blanket lien on qualifying pledged loans in the Company's residential, multi-family, and commercial real estate mortgage loan portfolios, as well as select investment securities. FRB advances through the FRB Discount Window are secured by qualifying pledged construction and commercial and industrial loans.

The Company had $14.7 million and $39.8 million of subordinated notes, net, outstanding as of September 30, 2025 and December 31, 2024, respectively. Prior to June 1, 2025, the Company's subordinated notes had been comprised of a $15 million issuance in May 2020 maturing June 1, 2030 (the "2030 Note") and a $25 million issuance in October 2019 maturing October 15, 2029 (the "2029 Notes").

On June 1, 2025, the Company completed the $15.0 million redemption of the 2030 Note. The interest rate on the 2030 Note was 6.0% up to the redemption date. Interest expense on the 2030 Note was $0 and $0.2 million for the three months ended September 30, 2025 and 2024, respectively, and $0.4 million and $0.7 million for the nine months ended September 30, 2025 and 2024, respectively.

On July 15, 2025, the Company completed a $10.0 million partial redemption of its 2029 Notes. The 2029 Notes bore interest at 5.625% per annum, through October 14, 2024, payable semi-annually in arrears. From October 15, 2024 through October 15, 2029, or up to an early redemption date, the interest rate resets quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Funding Rate plus 433.5 basis points, payable quarterly in arrears. As of September 30, 2025, the 2029 Notes bore an annual interest rate of 8.65%. As of September 30, 2025, the net carrying amount of the 2029 Notes was $14.7 million, inclusive of a $0.3 million purchase accounting adjustment (premium). For the three months ended September 30, 2025 and 2024, the effective interest rate on the 2029 Notes was 7.49% and 5.31%, respectively, inclusive of the amortization of the purchase accounting adjustment (premium). For the nine months ended September 30, 2025 and 2024, the effective interest rate on the 2029 Notes was 7.84% and 5.21%, respectively, inclusive of the amortization of the purchase accounting adjustment (premium).

*Liquidity*. Liquidity is essential to the Company's business. The Company's liquidity could be impaired by unforeseen outflows of cash, including deposits, or the inability to access the capital and/or wholesale funding markets. This situation may arise due to circumstances that the Company may be unable to control, such as general market disruption, negative views about the Company or the financial services industry generally, or an operational problem that affects the Company or a third party. The Company's ability to borrow from other financial institutions on favorable terms or at all could be adversely affected by disruptions in the markets in which they operate or other events.

Deposits are the primary source of the Company's liquidity. Cash flows from amortizing or maturing assets also provide funding to meet the liquidity needs of the Company. Deposits are sourced from the Bank's customers and, as needed, through wholesale deposit markets. The wholesale deposit markets are accessed through brokers or through the IntraFi Network ("IntraFi"), of which the Bank is a member. IntraFi facilitates the Bank attaining brokered deposits via an on-line marketplace. The Bank also utilizes IntraFi's reciprocal deposit services to offer its high-value customers access to FDIC insurance through IntraFi's network of banks.

While subject to the Consent Order, the Bank may not be deemed to be "well capitalized," which restricts it from accepting, renewing, or rolling over brokered deposits except in compliance with certain applicable restrictions under federal law. Since the third quarter of 2024, the Bank has received approvals from the FDIC allowing the Bank to

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accept, renew, or rollover brokered deposits for consecutive six-month periods through December 2025 and limited to the amount of maturities during these periods. The Company expects to continue to seek waivers of this prohibition in the future; however, there is no assurance that such waivers will be approved or that the Company will be able to rely on brokered deposits as a source of funding in the future.

The Company has established a formal liquidity contingency plan that provides guidelines for liquidity management. Pursuant to the Company's liquidity contingency plan, liquidity needs are forecasted based on anticipated changes in the balance sheet. In this forecast, the Company expects to maintain a liquidity cushion. Management then stress tests the Company's liquidity position under several different stress scenarios, from moderate to severe. Guidelines for the forecasted liquidity cushion and for liquidity cushions for each stress scenario have been established and are reviewed by the Bank's ALCO. Management also monitors the Company's liquidity position on a day-to-day basis through daily cash monitoring and short- and long-term cash flow forecasting and believes its sources of liquidity are adequate to conduct the business of the Company.

The following table presents information on the Company's available sources of liquidity as of the date stated.

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| | | | | |
|:---|:---|:---|:---|:---|
| *(Dollars in thousands)* | **Capacity** | **Less: Outstanding Borrowings** |  | **Available Balance** |
| Cash and due from banks |  |  |  | $121032 |
| Fed funds sold |  |  |  | 7773 |
| Unpledged securities available for sale |  |  |  | 164707 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |  | $293512 |
| Borrowings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB | $620908 | $191160 | (1) | $429748 |
| &nbsp;&nbsp;&nbsp;&nbsp;FRB | 75395 |  |  | 75395 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unsecured line of credit | 10000 |  |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $706303 | $191160 |  | $515143 |
| Available liquidity as of September 30, 2025 |  |  |  | $808655 |
| (1) Outstanding borrowings are comprised of advances of $150.0 million and letters of credit totaling $41.2 million, of which $40 million served as collateral for public deposits with the Treasury Board of the Commonwealth of Virginia. | (1) Outstanding borrowings are comprised of advances of $150.0 million and letters of credit totaling $41.2 million, of which $40 million served as collateral for public deposits with the Treasury Board of the Commonwealth of Virginia. | (1) Outstanding borrowings are comprised of advances of $150.0 million and letters of credit totaling $41.2 million, of which $40 million served as collateral for public deposits with the Treasury Board of the Commonwealth of Virginia. | (1) Outstanding borrowings are comprised of advances of $150.0 million and letters of credit totaling $41.2 million, of which $40 million served as collateral for public deposits with the Treasury Board of the Commonwealth of Virginia. | (1) Outstanding borrowings are comprised of advances of $150.0 million and letters of credit totaling $41.2 million, of which $40 million served as collateral for public deposits with the Treasury Board of the Commonwealth of Virginia. |

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Uninsured deposits at September 30, 2025 were $404.3 million. In the unlikely event that uninsured deposit balances leave the Bank over a short period of time, management could more than satisfy the demand with cash on-hand and FHLB borrowing capacity.

*Capital.* Capital adequacy is an important measure of financial stability and performance. The Company's objectives are to maintain a level of capitalization that is sufficient to support the Company's strategic objectives.

Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, financial institutions must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. A financial institution's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Banks must hold a capital conservation buffer of 2.50% above the adequately capitalized risk-based capital ratios for all ratios except the Tier 1 leverage ratio. If a banking organization dips into its capital conservation buffer, it is subject to limitations on certain activities, including payment of dividends, share repurchases, and discretionary compensation to certain officers. Additionally, regulators may place certain restrictions on dividends paid by banks.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized; although, these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.

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The Consent Order requires the Bank to achieve and maintain minimum capital requirements that are higher than those required for capital adequacy purposes. Specifically, the Bank is required to maintain a leverage ratio of 10.0% and a total capital ratio of 13.0%. As of September 30, 2025 and December 31, 2024, the Bank met these minimum capital ratios. Until the Bank has been released from the Consent Order, the Bank is deemed to be less than well capitalized, thus adequately capitalized.

Because the Bank may not be deemed to be "well capitalized" while subject to the Consent Order, it could be required to pay higher insurance premiums to the FDIC, obtain approval prior to acquiring branches or opening new lines of business, and be subject to increased regulatory scrutiny such as limitations on asset growth.

The Company adopted ASC 326, Financial Instruments - Credit Losses (referred to herein as "current expected credit losses" or "CECL") effective January 1, 2023. Federal and state banking regulations allow financial institutions to irrevocably elect to phase-in the after-tax cumulative effect adjustment at adoption to retained earnings ("CECL Transitional Amount") over a three-year period. The three-year phase-in of the CECL Transitional Amount to regulatory capital is 25%, 50%, and 25% in 2023, 2024, and 2025, respectively. The Bank made this irrevocable election effective with its first quarter 2023 call report.

The following tables present the capital ratios to which banks are subject to be adequately and well capitalized, as well as the capital and capital ratios for the Bank as of the dates stated. Adequately capitalized ratios include the conversation buffer, if applicable. The following table also includes the capital adequacy ratios to which bank holding companies are subject. Also presented are the minimum capital ratios set forth in the Consent Order for the Bank with the corresponding capital amounts for both the leverage ratio and the total capital ratio as of the periods stated. The CECL Transitional Amount was $8.1 million, of which $6.1 million and $4.1 million reduced the regulatory capital amounts and capital ratios as of September 30, 2025 and December 31, 2024, respectively.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Actual** | **Actual** | **For Capital<br>Adequacy Purposes** | **For Capital<br>Adequacy Purposes** | **To Be Well Capitalized** | **To Be Well Capitalized** | **Minimum Capital Ratios** | **Minimum Capital Ratios** |
| *(Dollars in thousands)* | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| Total risk based capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $365989 | 19.96% | $192507 | 10.50% | $183340 | 10.00% | $238342 | 13.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $407122 | 22.02% | $147898 | 8.00% | n/a | n/a | n/a | n/a |
| Tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $347348 | 18.95% | $155840 | 8.50% | $146673 | 8.00% | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $376650 | 20.37% | $110924 | 6.00% | n/a | n/a | n/a | n/a |
| Common equity tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $347348 | 18.95% | $128338 | 7.00% | $119171 | 6.50% | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $376650 | 20.37% | $83193 | 4.50% | n/a | n/a | n/a | n/a |
| Tier 1 leverage (to average assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $347348 | 13.67% | $101650 | 4.00% | $127062 | 5.00% | $254125 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $376650 | 14.70% | $102518 | 4.00% | n/a | n/a | n/a | n/a |

---

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Actual** | **Actual** | **For Capital<br>Adequacy Purposes** | **For Capital<br>Adequacy Purposes** | **To Be Well Capitalized** | **To Be Well Capitalized** | **Minimum Capital Ratios** | **Minimum Capital Ratios** |
| *(Dollars in thousands)* | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| Total risk based capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $358848 | 17.26% | $218260 | 10.50% | $207866 | 10.00% | $270226 | 13.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $414284 | 19.79% | $167444 | 8.00% | n/a | n/a | n/a | n/a |
| Tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $340386 | 16.38% | $176687 | 8.50% | $166293 | 8.00% | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $360933 | 17.24% | $125583 | 6.00% | n/a | n/a | n/a | n/a |
| Common equity tier 1 capital (to risk-weighted assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $340386 | 16.38% | $145507 | 7.00% | $135113 | 6.50% | n/a | n/a |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $360933 | 17.24% | $94187 | 4.50% | n/a | n/a | n/a | n/a |
| Tier 1 leverage (to average assets) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bank, N.A. | $340386 | 11.80% | $115364 | 4.00% | $144204 | 5.00% | $288409 | 10.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Blue Ridge Bankshares, Inc. | $360933 | 12.43% | $116169 | 4.00% | n/a | n/a | n/a | n/a |

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**Commitments and Contingencies**

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and involve the same credit risk and evaluation as making a loan to a customer. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness, in a manner similar to that if underwriting a loan. As of September 30, 2025 and December 31, 2024, the Company had outstanding loan commitments of $243.6 million and $283.2 million, respectively. Of these amounts, $35.5 million and $32.9 million were unconditionally cancelable at the sole discretion of the Company as of the same respective dates.

Conditional commitments are issued by the Company in the form of financial stand-by letters of credit, which guarantee payment to the underlying beneficiary (i.e., third party) if the customer fails to meet its designated financial obligation. As of September 30, 2025 and December 31, 2024, commitments under outstanding financial stand-by letters of credit totaled $9.5 million and $12.5 million, respectively. The credit risk of issuing stand-by letters of credit can be greater than the risk involved in extending loans to customers.

The Company recorded no provision for credit losses for unfunded commitments for either the three months or nine months ended September 30, 2025. As of both September 30, 2025 and December 31, 2024, the reserve for unfunded commitments was $0.9 million and is included in other liabilities on the consolidated balance sheets.

As part of the sale of substantially all of its MSR portfolio during 2024, the Company recorded a reserve for estimated putbacks, transition costs, and unearned sales proceeds. The putbacks related to industry-standard items, including prepayments or early delinquencies of the underlying mortgages, all of which were subject to term limits per the respective sales agreements. As of September 30, 2025, all such term limits have expired. The reserve for unearned sales proceeds relates to the Company providing certain documentation to the buyers. In the three and nine months ended September 30, 2025, the Company received $0.7 million and $1.0 million, respectively, of previously unearned sale proceeds, which resulted in a corresponding release of the reserve and were reported as income on sale of MSRs on the consolidated statements of operations. As of September 30, 2025 and December 31, 2024, the reserve was $0.6 million and $1.8 million, respectively, and was included in other liabilities on the consolidated balance sheet.

The Company has investments in various partnerships and limited liability companies. Pursuant to these investments, the Company commits to an investment amount that may be fulfilled in future periods. At September 30, 2025 and December 31, 2024, the Company had future commitments outstanding totaling $5.2 million and $7.1 million, respectively, related to these investments.

**Interest Rate Risk Management**

As a financial institution, the Company is exposed to various business risks, including interest rate risk. Interest rate risk is the risk to earnings and value arising from volatility in market interest rates. Interest rate risk arises from timing differences in the repricing and cash flows of interest-earning assets and interest-bearing liabilities, changes in the expected cash flows of assets and liabilities arising from embedded options, such as borrowers' ability to prepay loans and depositors' ability to redeem certificates of deposit before maturity, changes in the shape of the yield curve where interest rates increase or decrease in a nonparallel fashion, and changes in spread relationships between different yield curves, such as U.S. Treasuries and other market-based index rates. The Company's goal is to maximize net interest income without incurring excessive interest rate risk. Management of net interest income and interest rate risk must be consistent with the level of capital and liquidity that the Bank maintains. The Company manages interest rate risk through the ALCO comprised of members of management, with oversight by a committee of its board of directors. The ALCO is responsible for monitoring the Company's interest rate risk in conjunction with liquidity and capital management, pursuant to policy guidelines approved by the board of directors.

The Company employs an independent firm to model its interest rate sensitivity that uses a net interest income simulation model as its primary tool to measure interest rate sensitivity. Assumptions for modeling are developed based on expected activity in the balance sheet. For maturing assets, assumptions are created for the redeployment of these assets. For maturing liabilities, assumptions are developed for the replacement of these funding sources. Assumptions are also developed for assets and liabilities that could reprice during the modeled time period. These assumptions also cover how management expects rates to change on non-maturity deposits, such as demand, money market, and savings accounts, as well as certificates of deposit. Based on inputs that include the current balance sheet, the current level of interest rates, and the developed assumptions, the model produces an expected level of net interest income assuming that market rates remain unchanged. This is considered the base case. The model then simulates what net interest

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income would be based on specific changes in interest rates. The rate simulations are performed for a two-year period and include rapid rate changes of down 100 basis points to 400 basis points and up 100 basis points to 400 basis points. The results of these simulations are then compared to the base case.

The following tables present the estimated change in net interest income under various rate change scenarios as of the dates presented. The scenarios assume rate changes occur instantaneous and in a parallel manner, which means the changes are the same on all points of the rate curve. Estimated changes set forth below are dependent on material assumptions, such as those previously discussed.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
|  | **Instantaneous Parallel Rate Shock Scenario** | **Instantaneous Parallel Rate Shock Scenario** | **Instantaneous Parallel Rate Shock Scenario** | **Instantaneous Parallel Rate Shock Scenario** |
|  | **Change in Net Interest Income - Year 1** | **Change in Net Interest Income - Year 1** | **Change in Net Interest Income - Year 2** | **Change in Net Interest Income - Year 2** |
| Change in interest rates: |  |  |  |  |
| +400 basis points | $6921 | 8.8% | $7616 | 9.1% |
| +300 basis points | 5189 | 6.6% | 5722 | 6.8% |
| +200 basis points | 3495 | 4.4% | 3931 | 4.7% |
| +100 basis points | 1799 | 2.3% | 2122 | 2.5% |
| Base case |  |  |  |  |
| -100 basis points | (2228) | (2.8%) | (3007) | (3.6%) |
| -200 basis points | (4764) | (6.0%) | (6721) | (8.0%) |
| -300 basis points | (6898) | (8.7%) | (9725) | (11.6%) |
| -400 basis points | (9536) | (12.1%) | (13893) | (16.5%) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Instantaneous Parallel Rate Shock Scenario** | **Instantaneous Parallel Rate Shock Scenario** | **Instantaneous Parallel Rate Shock Scenario** | **Instantaneous Parallel Rate Shock Scenario** |
|  | **Change in Net Interest Income - Year 1** | **Change in Net Interest Income - Year 1** | **Change in Net Interest Income - Year 2** | **Change in Net Interest Income - Year 2** |
| Change in interest rates: |  |  |  |  |
| +400 basis points | $3288 | 3.8% | $6628 | 6.7% |
| +300 basis points | 3347 | 3.8% | 5842 | 5.9% |
| +200 basis points | 2877 | 3.3% | 4610 | 4.7% |
| +100 basis points | 1798 | 2.1% | 2751 | 2.8% |
| Base case |  |  |  |  |
| -100 basis points | (2978) | (3.4%) | (4205) | (4.3%) |
| -200 basis points | (6468) | (7.4%) | (9650) | (9.8%) |
| -300 basis points | (9831) | (11.2%) | (15174) | (15.4%) |
| -400 basis points | (12664) | (14.5%) | (19666) | (20.0%) |

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Stress testing the balance sheet and net interest income using instantaneous parallel rate shock movements in the yield curve is a regulatory and banking industry practice. However, these stress tests may not represent a realistic forecast of future interest rate movements in the yield curve. In addition, instantaneous parallel rate shock modeling is not a predictor of actual future performance of earnings. It is a financial metric used to manage interest rate risk and track the movement of the Company's interest rate risk position over a historical time frame for comparison purposes.

The asset and liability repricing characteristics of the Company's assets and liabilities will have a significant impact on its future interest rate risk profile.

**Item 3. Quantitative and Qualitati** **ve Disclosures about Market Risk**

This information is incorporated herein by reference to the information in section "Interest Rate Risk Management" within Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-Q.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

The Company maintains disclosure controls and procedures that are designed to provide assurance that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of

------

1934 is recorded, processed, summarized, and reported within the time periods required by the SEC and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. An evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures as of September 30, 2025 was carried out under the supervision and with the participation of management, including the Company's Chief Executive Officer and Chief Financial Officer. Based on and as of the date of such evaluation, the aforementioned officers concluded that the Company's disclosure controls and procedures were effective.

The Company's management is also responsible for establishing and maintaining adequate internal control over financial reporting. There were no changes in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

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**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings**

In the ordinary course of operations, the Company is party to legal proceedings. Based upon information currently available, management believes that such legal proceedings, in the aggregate, will not have a material adverse effect on the Company's business, financial condition, results of operations, or cash flows.

For information regarding legal proceedings in which the Company is involved, please see Note 11 to the unaudited consolidated financial statements included in this Form 10-Q.

**Item 1A. Risk Factors**

There have been no material changes to the risk factors disclosed in the 2024 Form 10-K. Additional risks not presently known to the Company, or that are currently deemed immaterial, may also adversely affect the Company's business, financial condition, or results of operations. See also "Cautionary Note About Forward-Looking Statements," included in Part 1, Item 2, of this Form 10-Q.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

On August 25, 2025, the Company announced the adoption of the Repurchase Program pursuant to which the Company may purchase up to $15 million of the Company's issued and outstanding shares of common stock. The Repurchase Program may be modified, suspended, or terminated at any time without notice, at the Company's discretion, based upon a number of factors, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, the need for capital in the Company's operations, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The Repurchase Program does not obligate the Company to repurchase any shares.

When incentive stock awards vest, employees and directors may elect to have the Company withhold shares of the Company's common stock as payment for income and payroll taxes, as applicable.

The following table provides information regarding repurchases of common stock for the three months ended September 30, 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares Purchased or Withheld (1) (2)** | **Average Price Paid per Share** | **Shares Purchased as Part of a Publicly Announced Program** | **Approximate Value of Shares that May Yet Be Purchased Under the Program** |
| July 1, 2025 through July 31, 2025 | 5318 | $3.61 |  | $— |
| August 1, 2025 through August 31, 2025 | 2885 | 3.66 |  | 15000000 |
| September 1, 2025 through September 30, 2025 | 660862 | 4.16 | 659949 | 12233238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 669065 | $4.15 | 659949 |  |
| (1) The total number of shares for each period includes shares purchased as part of the Repurchase Program and/or shares withheld from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations. | (1) The total number of shares for each period includes shares purchased as part of the Repurchase Program and/or shares withheld from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations. | (1) The total number of shares for each period includes shares purchased as part of the Repurchase Program and/or shares withheld from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations. | (1) The total number of shares for each period includes shares purchased as part of the Repurchase Program and/or shares withheld from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations. | (1) The total number of shares for each period includes shares purchased as part of the Repurchase Program and/or shares withheld from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations. |
| (2) For the three months ended September 30, 2025, employees and directors of the Company elected to have 9,116 shares of their vesting restricted stock awards withheld as payment for tax obligations. | (2) For the three months ended September 30, 2025, employees and directors of the Company elected to have 9,116 shares of their vesting restricted stock awards withheld as payment for tax obligations. | (2) For the three months ended September 30, 2025, employees and directors of the Company elected to have 9,116 shares of their vesting restricted stock awards withheld as payment for tax obligations. | (2) For the three months ended September 30, 2025, employees and directors of the Company elected to have 9,116 shares of their vesting restricted stock awards withheld as payment for tax obligations. | (2) For the three months ended September 30, 2025, employees and directors of the Company elected to have 9,116 shares of their vesting restricted stock awards withheld as payment for tax obligations. |

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**Item 3. Defaults Upon Senior Securities**

None

**Item 4. Mine Safety Disclosures**

None

**Item 5. Other Information**

During the fiscal quarter ended September 30, 2025, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408(a) of Regulation S-K).

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**Item 6. Exhibits**

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| | |
|:---|:---|
| 4.1 | [<u>Form of Warrant to Purchase Common Stock.</u>](brbs-ex4_1.htm) |
| 31.1 | [<u>Rule 13(a)-14(a) Certification of Chief Executive Officer.</u>](brbs-ex31_1.htm) |
| 31.2 | [<u>Rule 13(a)-14(a) Certification of Chief Financial Officer.</u>](brbs-ex31_2.htm) |
| 32.1 | [<u>Statement of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350.</u>](brbs-ex32_1.htm) |
| 101 | The following materials from Blue Ridge Bankshares, Inc.'s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025, formatted in Inline Extensible Business Reporting Language (XBRL), include: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Changes in Stockholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) related notes (filed herewith). |
| 104 | The cover page from Blue Ridge Bankshares, Inc.'s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025, formatted in Inline XBRL (included with Exhibit 101). |

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**SIGNAT** **URES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | **BLUE RIDGE BANKSHARES, INC.** | **BLUE RIDGE BANKSHARES, INC.** |
| Date: November 4, 2025 | By: | /s/ G. William Beale |
|  |  | G. William Beale |
|  |  | President and Chief Executive Officer |
|  | By: | /s/ Judy C. Gavant |
|  |  | Judy C. Gavant |
|  |  | Executive Vice President and Chief Financial Officer |

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## Exhibit 4.1

**Exhibit 4.1**

**FORM OF WARRANT**

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR APPLICABLE STATE SECURITIES LAWS. THIS SECURITY MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THIS SECURITY UNDER THE SECURITIES ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT. NOTWITHSTANDING THE FOREGOING, THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THIS SECURITY.

**BLUE RIDGE BANKSHARES, INC.**

**WARRANT TO PURCHASE COMMON STOCK**

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| | |
|:---|:---|
| **Warrant No. CS-[•]**  | **Original Issue Date: April 3, 2024** |

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Blue Ridge Bankshares, Inc., a Virginia corporation (the "*Company*"), hereby certifies that, for value received, [•] or [its] [his] permitted registered assigns (the "*Holder*"), is entitled to purchase from the Company up to a total of [•] shares of common stock, no par value (the "*Common Stock*"), of the Company (each such share, a "*Warrant Share*" and all such shares, the "*Warrant Shares*") at an exercise price equal to $2.50 per share (as adjusted from time to time as provided in <u>Section 9</u> herein, the "*Exercise Price*"), at any time and from time to time on or after the date hereof (the "*Original Issue Date*") and through and including 5:30 P.M., New York City time, on April 3, 2029 (the "*Expiration Date*"), and subject to the following terms and conditions:

This Warrant (this "*Warrant*") is one of a series of similar warrants originally issued pursuant to that certain Amended and Restated Securities Purchase Agreement, dated April 3, 2024, by and among the Company and the Purchasers identified therein (the "*Purchase Agreement*"). All such Warrants are referred to herein, collectively, as the "*Warrants*."

1. <u>Definitions</u>. In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Registration of Warrants</u>. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the "*Warrant Register*"), in the name of the record Holder (which shall include the initial Holder or, as the case may be, any registered assignee to which this Warrant is permissibly assigned hereunder) from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Registration of Transfers</u>. Subject to the restrictions on transfer set forth in <u>Section 4.1</u> of the Purchase Agreement and compliance with all applicable securities laws, the Company shall register the transfer of all or any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached as <u>Schedule 2</u> hereto duly completed and signed, to the Company's transfer agent or to the Company at its address specified in the Purchase Agreement and (x) delivery, at the request of the Company, of an opinion of counsel reasonably satisfactory to the Company to the effect that the transfer of such portion of this Warrant may be made pursuant to an available exemption from the registration requirements of the Securities Act and all applicable state securities or blue sky laws and (y) delivery by the transferee of a written statement to the Company certifying that the transferee is an "accredited investor" as defined in Rule 501(a) under the Securities Act and making the representations and certifications set forth in Sections 3.2(b)–(g) of the Purchase Agreement, to the Company at its address specified in the Purchase Agreement. Upon any such registration or transfer, a new warrant to purchase Common Stock in substantially the form of this Warrant (any such new warrant, a "*New Warrant*") evidencing the portion of this Warrant so transferred shall be issued to the transferee, and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations in respect of the New Warrant that the Holder has in respect of this Warrant. The Company shall prepare, issue and deliver at its own expense any New Warrant under this <u>Section 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Exercise and Duration of Warrants</u>.

(a) All or any part of this Warrant shall be exercisable by the registered Holder in any manner permitted by <u>Section 10</u> of this Warrant at any time and from time to time on or after the Original Issue Date and through and including 5:30 P.M. New York City time, on the Expiration Date. At 5:30 P.M., New York City time, on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no value and this Warrant shall be terminated and no longer outstanding.

(b) The Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form attached as <u>Schedule 1</u> hereto (the "*Exercise Notice*"), completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised (which may take the form of a "cashless exercise" if so indicated in the Exercise Notice and if a "cashless exercise" may occur at such time pursuant to <u>Section 10</u> below), and the date on which the last of such items is delivered to the Company (as determined in accordance with the notice provisions hereof) is an "*Exercise Date*." The delivery by (or on behalf of) the Holder of the Exercise Notice and the applicable Exercise Price as provided above shall constitute the Holder's certification to the Company that its representations contained in Sections 3.2(b)–(g) of the Purchase Agreement are true and correct as of the Exercise Date as if remade in their entirety (or, in the case of any transferee Holder that is not a party to the Purchase Agreement, such transferee Holder's certification to the Company that such representations are true and correct as to such assignee Holder as of the Exercise Date). The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Delivery of Warrant Shares</u>.

(a) Upon exercise of this Warrant, the Company shall promptly (but in no event later than three (3) Trading Days after the Exercise Date) issue or cause to be issued and cause to be

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delivered to or upon the written order of the Holder and in such name or names as the Holder may designate (provided that, if the Registration Statement is not effective and the Holder directs the Company to deliver a certificate for the Warrant Shares in a name other than that of the Holder or an Affiliate of the Holder, it shall deliver to the Company on the Exercise Date an opinion of counsel reasonably satisfactory to the Company to the effect that the issuance of such Warrant Shares in such other name may be made pursuant to an available exemption from the registration requirements of the Securities Act and all applicable state securities or blue sky laws), (i) a certificate for the Warrant Shares issuable upon such exercise, free of restrictive legends, or (ii) an electronic delivery of the Warrant Shares to the Holder's account at the Depository Trust Company ("*DTC*") or a similar organization, unless in the case of clause (i) and (ii) a registration statement covering the resale of the Warrant Shares and naming the Holder as a selling stockholder thereunder is not then effective or the Warrant Shares are not freely transferable without volume and manner of sale restrictions pursuant to Rule 144 under the Securities Act, in which case such Holder shall receive a certificate for the Warrant Shares issuable upon such exercise with appropriate restrictive legends. The Holder, or any Person permissibly so designated by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date. If the Warrant Shares are to be issued free of all restrictive legends, the Company shall, upon the written request of the Holder, use its reasonable best efforts to deliver, or cause to be delivered, Warrant Shares hereunder electronically through DTC or another established clearing corporation performing similar functions, if available; provided, that, the Company may, but will not be required to, change its transfer agent if its current transfer agent cannot deliver Warrant Shares electronically through such a clearing corporation.

(b) To the extent permitted by law, the Company's obligations to issue and deliver Warrant Shares in accordance with and subject to the terms hereof (including the limitations set forth in <u>Section 11</u> below) are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance that might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit the Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Charges, Taxes and Expenses</u>. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; *provided, however*, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or the Warrants in a name other than that of the Holder or an Affiliate thereof. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Replacement of Warrant</u>. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such case)

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and, in each case, a customary and reasonable indemnity and surety bond, if requested by the Company. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company's obligation to issue the New Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Reservation of Warrant Shares</u>. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares that are initially issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account the adjustments and restrictions of <u>Section 9</u>). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable. The Company will take all such action as may be reasonably necessary to assure that such shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of any securities exchange or automated quotation system upon which the Common Stock may be listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Certain Adjustments</u>. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this <u>Section 9</u>.

(a) <u>Stock Dividends and Splits</u>. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides its outstanding shares of Common Stock into a larger number of shares, (iii) combines its outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares of Common Stock any shares of capital of the Company, then in each such case the Exercise Price shall be multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately before such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination.

(b) <u>Pro Rata Distributions</u>. If the Company, at any time while this Warrant is outstanding, distributes to all holders of Common Stock for no consideration (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common Stock covered by the preceding paragraph) or (iii) rights or warrants to subscribe for or purchase any security, or (iv) any other asset (in each case, "*Distributed Property*"), then, upon any exercise of this Warrant that occurs after the record date fixed for determination of stockholders entitled to receive such distribution, the Holder shall be entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), the Distributed Property that such Holder would have been entitled to receive in respect of such number of Warrant Shares had the Holder been the record holder of such Warrant Shares immediately prior to such record date without regard to any limitation on exercise contained therein.

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(c) <u>Fundamental Transactions</u>. If, at any time while this Warrant is outstanding (i) the Company effects any merger or consolidation of the Company with or into another Person, in which the Company is not the survivor or the stockholders of the Company immediately prior to such merger or consolidation do not own, directly or indirectly, at least 50% of the voting securities of the surviving entity, (ii) the Company effects any sale of all or substantially all of its assets or a majority of its Common Stock is acquired by a third party, in each case, in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which all or substantially all of the holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by <u>Section 9(a)</u> above) (in any such case, a "*Fundamental Transaction*"), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in full of this Warrant without regard to any limitations on exercise contained herein (the "*Alternate Consideration*"). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall not effect any such Fundamental Transaction unless prior to or simultaneously with the consummation thereof, any successor to the Company, surviving entity or the corporation purchasing or otherwise acquiring such assets or other appropriate corporation or Person shall assume the obligation to deliver to the Holder, such Alternate Consideration as, in accordance with the foregoing provisions, the Holder may be entitled to receive, and the other obligations under this Warrant. The provisions of this paragraph (c) shall similarly apply to subsequent transactions analogous of a Fundamental Transaction type. Notwithstanding the foregoing, in the event of a Fundamental Transaction that, is (1) a transaction where the consideration paid to the holders of the Common Stock consists of cash, (2) a "Rule 13e-3 transaction" as defined in Rule 13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving a person or entity not traded on the New York Stock Exchange, the NYSE American exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market, at the request of the Holder delivered before the ninetieth (90<sup>th</sup>) day after such Fundamental Transaction, the Company (or the successor entity to the Company) shall purchase this Warrant from the Holder by paying to the Holder, within five (5) Trading Days after such request (or, if later, on the effective date of the Fundamental Transaction), cash in an amount equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of such Fundamental Transaction. For purposes hereof, "*Black Scholes Value*" means the value of the Warrant based on the Black Scholes Option Pricing Model obtained from the "OV" function on Bloomberg determined as of the day immediately following the public announcement of the applicable Fundamental Transaction and reflecting (i) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of such date of request and (ii) an expected volatility equal to the greater of (A) sixty percent (60%) and (B) the one hundred (100) day volatility obtained from the HVT function on Bloomberg determined as of the Trading Day immediately prior to the announcement of the Fundamental Transaction.

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(d) <u>Number of Warrant Shares</u>. Simultaneously with any adjustment to the Exercise Price pursuant to paragraph (a) and (e) of this <u>Section 9</u>, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

(e) <u>Subsequent Equity Sales</u>.

(i) Except as provided in paragraph (e)(iii) of this <u>Section 9</u>, if and whenever the Company shall issue or sell, or is, in accordance with any of paragraphs (e)(ii)(1) through (e)(ii)(7) of this <u>Section 9</u>, deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share less than the Exercise Price in effect immediately prior to the time of such issue or sale, then and in each such case (a "*Trigger Issuance*") the then-existing Exercise Price shall be reduced as of the close of business on the effective date of the Trigger Issuance, to a price determined as follows:

Adjusted Exercise Price = <u>(A x B) + D</u>

A+C

where

"A" equals the Common Stock Deemed Outstanding immediately preceding such Trigger Issuance;

"B" equals the Exercise Price in effect immediately preceding such Trigger Issuance;

"C" equals the aggregate number of shares of Common Stock issued or deemed issued hereunder in such Trigger Issuance; and

"D" equals the aggregate consideration, if any, received or deemed to be received by the Company upon such Trigger Issuance;

*provided, however*, that in no event shall the Exercise Price after giving effect to such Trigger Issuance be greater than the Exercise Price immediately prior to such Trigger Issuance.

For purposes of this paragraph (e), "*Common Stock Deemed Outstanding*" shall mean, at any given time, the sum of (I) the number of shares of Common Stock actually outstanding at such time, plus (II) the number of shares of Common Stock issuable upon exercise of Options (as defined in paragraph (e)(ii)(1) of this <u>Section 9</u>) actually outstanding at such time, plus (III) the number of shares of Common Stock issuable upon conversion or exchange of Convertible Securities (as defined in paragraph (e)(ii)(1) of this <u>Section 9</u>) actually outstanding at such time (treating as actually outstanding any Convertible Securities issuable upon exercise of Options actually outstanding at such time), in each case, regardless of whether the Options or Convertible Securities are actually exercisable at such time; provided, that Common Stock Deemed Outstanding at any given time shall not include shares owned or held by or for the account of the Company or any of its wholly-owned subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) For purposes of this paragraph (e), the following paragraphs (e)(ii)(1) to (e)(ii)(7) shall also be applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) <u>Issuance of Rights or Options</u>. In case at any time the Company shall in any manner grant (directly and not by assumption in a merger or otherwise) any warrants or other rights to subscribe for or to purchase, or any options for the purchase of, Common Stock

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or any stock or security directly or indirectly convertible into or exchangeable for Common Stock (such warrants, rights or options being called "*Options*" and such convertible or exchangeable stock or securities being called "*Convertible Securities*"), whether or not such Options or the right to convert or exchange any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon the exercise of such Options or upon the conversion or exchange of such Convertible Securities (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount, if any, received or receivable by the Company as consideration for the granting of such Options, plus (y) the aggregate amount of additional consideration payable to the Company upon the exercise of all such Options, plus (z), in the case of such Options that relate to Convertible Securities, the aggregate amount of additional consideration, if any, payable upon the issue or sale of such Convertible Securities and upon the conversion or exchange thereof, by (ii) the total maximum number of shares of Common Stock issuable upon the exercise of such Options or upon the conversion or exchange of all such Convertible Securities issuable upon the exercise of such Options) shall be less than the Exercise Price in effect immediately prior to the time of the granting of such Options, then the total number of shares of Common Stock issuable upon the exercise of such Options or upon conversion or exchange of the total amount of such Convertible Securities issuable upon the exercise of such Options shall be deemed to have been issued for such price per share as of the date of granting of such Options or the issuance of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price. Except as otherwise provided in paragraph (e)(ii)(3), no adjustment of the Exercise Price shall be made upon the actual issue of such Common Stock or of such Convertible Securities upon exercise of such Options or upon the actual issue of such Common Stock upon conversion or exchange of such Convertible Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) <u>Issuance of Convertible Securities</u>. In case the Company shall in any manner issue (directly and not by assumption in a merger or otherwise) or sell any Convertible Securities, whether or not the rights to exchange or convert any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon such conversion or exchange (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount received or receivable by the Company as consideration for the issue or sale of such Convertible Securities, plus (y) the aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof, by (ii) the total maximum number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities) shall be less than the Exercise Price in effect immediately prior to the time of such issue or sale, then the total maximum number of shares of Common Stock issuable upon conversion or exchange of all such Convertible Securities shall be deemed to have been issued for such price per share as of the date of the issue or sale of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price, provided that (a) except as otherwise provided in paragraph (e)(ii)(3), no adjustment of the Exercise Price shall be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities and (b) no further adjustment of the Exercise Price shall be made by reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase any such Convertible Securities for which adjustments of the Exercise Price have been made pursuant to the other provisions of paragraph (e). No adjustment pursuant to this <u>Section 9</u> shall be made if such adjustment would result in an increase of the Exercise Price then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) <u>Change in Option Price or Conversion Rate</u>. Upon the happening of any of the following events, namely, if the purchase price provided for in any Option referred to in paragraph (e)(ii)(1) of this <u>Section 9</u>, the additional consideration, if any, payable upon the conversion or exchange of any Convertible Securities referred to in paragraphs (e)(ii)(1) or (e)(ii)(2), or the rate at which Convertible Securities referred to in paragraphs (e)(ii)(1) or (e)(ii)(2) are convertible into or exchangeable for Common Stock shall change at any time (including, but

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not limited to, changes under or by reason of provisions designed to protect against dilution), the Exercise Price in effect at the time of such event shall forthwith be readjusted to the Exercise Price that would have been in effect at such time had such Options or Convertible Securities still outstanding provided for such changed purchase price, additional consideration or conversion rate, as the case may be, at the time initially granted, issued or sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4) <u>Stock Dividends</u>. Subject to the provisions of this paragraph (e), in case the Company shall declare a dividend or make any other distribution upon any stock of the Company (other than the Common Stock) payable in Common Stock, Options or Convertible Securities, then any Common Stock, Options or Convertible Securities, as the case may be, issuable in payment of such dividend or distribution shall be deemed to have been issued or sold without consideration.

(5) <u>Consideration for Stock</u>. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for cash, the consideration received therefor shall be deemed to be the gross amount received by the Company therefor. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for a consideration other than cash, the amount of the consideration other than cash received by the Company shall be deemed to be the fair value of such consideration as determined in good faith by the Board of Directors of the Company. In case any Options shall be issued in connection with the issue and sale of other securities of the Company, together comprising one integral transaction in which no specific consideration is allocated to such Options by the parties thereto, such Options shall be deemed to have been issued for such consideration as determined in good faith by the Board of Directors of the Company. If Common Stock, Options or Convertible Securities shall be issued or sold by the Company and, in connection therewith, other Options or Convertible Securities (the "*Additional Rights*") are issued, then the consideration received or deemed to be received by the Company shall be reduced by the fair market value of the Additional Rights (as determined using the Black Scholes Option Pricing Model or another method mutually agreed to by the Company and the Holder). The Board of Directors of the Company shall respond promptly, in writing, to an inquiry by the Holder as to the fair market value of the Additional Rights. In the event that the Board of Directors of the Company and the Holder are unable to agree upon the fair market value of the Additional Rights, the Company and the Holder shall jointly select an appraiser who is experienced in such matters. The decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne evenly by the Company and the Holder.

(6) <u>Record Date</u>. In case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (i) to receive a dividend or other distribution payable in Common Stock, Options or Convertible Securities or (ii) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date shall be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) Notwithstanding the foregoing, no adjustment will be made under this paragraph (e) in respect of: (i) the issuance of securities upon the exercise or conversion of any Common Stock or Common Stock Equivalents issued by the Company prior to the date hereof, (ii) the grant of options, warrants, Common Stock or other Common Stock Equivalents (but not including any amendments to such instruments) under any duly authorized Company stock option plan, restricted stock plan or other equity compensation plan, dividend reinvestment plan, or stock purchase plan, whether now existing or hereafter approved by the Company and its stockholders in the future, and the issuance of Common Stock in respect thereof, (iii) the issuance of securities in connection with a Strategic Transaction, (iv) the issuance of securities in a transaction described in paragraph (a) or (b) of this <u>Section 9</u>, (v) shares of Common Stock in an offering for cash for the account of the Company that is underwritten on a firm commitment basis and is registered with the Securities and Exchange Commission under the Securities Act, or (vi) the issuance or sale (or

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deemed issuance or sale) of the Warrants, and the issuance of Common Stock in respect thereof (collectively, "*Excluded Issuances*"). For purposes of this paragraph, a "*Strategic Transaction*" means a transaction or relationship in which (1) the Company issues shares of Common Stock to a Person that the Board of Directors of the Company determined in good faith is, itself or through its Subsidiaries, an operating company in a business synergistic with the business of the Company (or a shareholder thereof) and (2) the Company expects to receive benefits in addition to the investment of funds, but shall not include (x) a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to a Person whose primary business is investing in securities or (y) issuances to lenders.

(iv) <u>Trading Market Limitation</u>. Upon any adjustment to the Exercise Price pursuant to paragraph (e)(i) above, the number of Warrant Shares purchasable hereunder shall be adjusted by multiplying such number by a fraction, the numerator of which shall be the Exercise Price in effect immediately prior to such adjustment and the denominator of which shall be the Exercise Price in effect immediately thereafter. This provision shall not restrict the number of shares of Common Stock that a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event of a transaction contemplated by <u>Section 9</u> of this Warrant. Notwithstanding any other provisions in this <u>Section 9</u> to the contrary, if a reduction in the Exercise Price pursuant to paragraph (e)(i) of this <u>Section 9</u> would require the Company to obtain stockholder approval of the transactions contemplated by the Purchase Agreement pursuant to the applicable rules of the Company's Principal Trading Market and such stockholder approval has not been obtained, (i) the Exercise Price shall be reduced to the maximum extent that would not require stockholder approval under such Rule, and (ii) the Company shall use its commercially reasonable efforts to obtain such stockholder approval as soon as reasonably practicable, including by calling a special meeting of stockholders to vote on such Exercise Price adjustment.

(f) <u>Calculations</u>. All calculations under this <u>Section 9</u> shall be made to the nearest cent or the nearest share, as applicable.

(g) <u>Notice of Adjustments</u>. Upon the occurrence of each adjustment pursuant to this <u>Section 9</u>, the Company at its expense will, at the written request of the Holder, promptly compute such adjustment, in good faith, in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company's transfer agent.

(h) <u>Notice of Corporate Events</u>. If, while this Warrant is outstanding, the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including, without limitation, any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then, except if such notice and the contents thereof shall be deemed to constitute material non-public information, the Company shall deliver to the Holder a notice of such transaction at least ten (10) Trading Days prior to the applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with respect to such transaction; *provided,* that no notice shall be required if information is disseminated in a press release or document furnished or filed with the Commission; *and provided, further*, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action

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required to be described in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the Commission (as defined in the Purchase Agreement) pursuant to a Current Report on Form 8-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Payment of Exercise Price</u>. The Holder shall pay the Exercise Price in immediately available funds; *provided, however*, that if, on any Exercise Date there is not an effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then the Holder may, in its sole discretion, satisfy its obligation to pay the Exercise Price through a "cashless exercise", in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows:

X = Y [(A-B)/A]

where:

"X" equals the number of Warrant Shares to be issued to the Holder;

"Y" equals the total number of Warrant Shares with respect to which this Warrant is being exercised;

"A" equals the average of the Closing Sale Prices of the shares of Common Stock (as determined below) for the five (5) consecutive Trading Days ending on the date immediately preceding the Exercise Date; and

"B" equals the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

For purposes of this Warrant, "*Closing Sale Price*" means, for any security as of any date, the last trade price for such security on the Principal Trading Market for such security, as reported by Bloomberg Financial Markets, or, if such Principal Trading Market begins to operate on an extended hours basis and does not designate the last trade price, then the last trade price of such security prior to 4:00 P.M., New York City time, as reported by Bloomberg Financial Markets, or if the foregoing do not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg Financial Markets, or, if no last trade price is reported for such security by Bloomberg Financial Markets, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the "pink sheets" by Pink Sheets LLC. If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then the Board of Directors of the Company shall use its good faith judgment to determine the fair market value. The Board of Directors' determination shall be binding upon all parties absent demonstrable error. All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a "cashless exercise" transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the

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Purchase Agreement (provided that the Commission continues to take the position that such treatment is proper at the time of such exercise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Limitations on Exercise</u>. Notwithstanding anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to ensure that the issuance of such Warrant Shares upon exercise (or other issuance), would not (i) cause or result in such Holder and its Affiliates, collectively, being deemed to own, control or have the power to vote or dispose of securities which would represent more than 9.99% of the voting securities of any class or series of the Company's capital stock outstanding at such time (excluding for the purpose of this calculation any reduction in ownership resulting from sales, transfers or other dispositions by such Holder of voting securities of the Corporation), (ii) otherwise cause such Holder or any of its Affiliates to be required to file a notice or application for approval under the BHC Act, the CIBC Act or any similar state or federal statute or (iii) require such Holder or any of its Affiliates to obtain the prior approval of any bank regulator (collectively, the "*Ownership Limit*"); provided, further, that any Warrant Shares that would otherwise be issued to the Holder upon exercise of this Warrant, but cannot be issued to such Holder at the time of exercise as a result of the Ownership Limit, shall thereafter be issued to such Holder on the first date on which such issuance would not cause or result in a violation of the Ownership Limit, and, provided further, that such restriction on exercise as provided in this <u>Section 11</u> shall not apply to (x) a Holder that has obtained all consents, permits, approvals, registrations and waivers of any governmental authority which are necessary or advisable for such Holder to exceed the Ownership Limit or (y) any bank holding company controlling the Company as of the date hereof. This provision shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in <u>Section 9</u> of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>No Fractional Shares</u>. No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares that would otherwise be issuable, the number of Warrant Shares to be issued shall be rounded down to the next whole number and the Company shall pay the Holder in cash the fair market value (based on the Closing Sale Price) for any such fractional shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder (including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile or e-mail (provided the sender receives a machine-generated confirmation of successful facsimile transmission or e-mail notification or confirmation of receipt of an e-mail transmission) at the facsimile number or e-mail address specified in the Purchase Agreement prior to 5:00 P.M., New York City time, on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address specified in the Purchase Agreement on a day that is not a Trading Day or later than 5:00 P.M., New York City time, on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service specifying next business day delivery, or (iv) upon actual receipt by the Person to whom such notice is required to be given, if by hand delivery. The address, facsimile number and e-mail address of a Person for such notices or communications shall be as set forth in the Purchase Agreement unless changed by such Person by two (2) Trading Days' prior notice to the other Persons in accordance with this <u>Section 13</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Warrant Agent</u>. The Company shall serve as warrant agent under this Warrant. Upon thirty (30) days' notice to the Holder, the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any corporation

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resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder's last address as shown on the Warrant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>No Rights as a Stockholder</u>. The Holder, solely in such Person's capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person's capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, amalgamation, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate or articles of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (b) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use commercially reasonable efforts to obtain all such

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authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be required from any public regulatory body or bodies having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Successors and Assigns</u>. Subject to the restrictions on transfer set forth in this Warrant and in Section 4.1 of the Purchase Agreement, and compliance with applicable securities laws, this Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company without the written consent of the Holder except to a successor in the event of a Fundamental Transaction. This Warrant shall be binding on and inure to the benefit of the Company and the Holder and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by the Company and the Holder, or their successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Amendment and Waiver</u>. Except as otherwise provided herein, the provisions of the Warrants may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holders of Warrants representing no less than a majority of the Warrant Shares obtainable upon exercise of the Warrants then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Acceptance</u>. Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Governing Law; Jurisdiction</u>. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT. EACH OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PERSON AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THE PURCHASE AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY.

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(g) <u>Headings</u>. The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.

(h) <u>Severability</u>. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby, and the Company and the Holder will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

BLUE RIDGE BANKSHARES, INC.

By: ___________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; G. William Beale

President and Chief Executive Officer

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<u>SCHEDULE 1</u>

FORM OF EXERCISE NOTICE

[To be executed by the Holder to purchase shares of Common Stock under the Warrant]

Ladies and Gentlemen:

(1) The undersigned is the Holder of Warrant No. __________ (the "*Warrant*") issued by Blue Ridge Bankshares, Inc., a Virginia corporation (the "*Company*"). Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth in the Warrant.

(2) The undersigned hereby exercises its right to purchase __________ Warrant Shares pursuant to the Warrant.

(3) The Holder intends that payment of the Exercise Price shall be made as (check one):

 Cash Exercise

 "Cashless Exercise" under <u>Section 10</u> of the Warrant

(4) If the Holder has elected a Cash Exercise, the Holder shall pay the sum of $___________ in immediately available funds to the Company in accordance with the terms of the Warrant.

(5) Pursuant to this Exercise Notice, the Company shall deliver to the Holder Warrant Shares determined in accordance with the terms of the Warrant.

(6) By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934) permitted to be owned under <u>Section 11</u> of the Warrant to which this notice relates.

Dated:____________________

Name of Holder: ___________________________

By:__________________________________<br>Name: _______________________________ <br>Title: _______________________________

(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)

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<u>SCHEDULE 2</u>

FORM OF ASSIGNMENT

[To be completed and executed by the Holder only upon transfer of the Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto (the "*Transferee*") the right represented by the within Warrant to purchase shares of Common Stock of Blue Ridge Bankshares, Inc. (the "*Company*") to which the within Warrant relates and appoints attorney to transfer said right on the books of the Company with full power of substitution in the premises. In connection therewith, the undersigned represents, warrants, covenants and agrees to and with the Company that:

(a) the offer and sale of the Warrant contemplated hereby is being made in compliance with Section 4(1) of the Securities Act of 1933, as amended (the "*Securities Act*") or another valid exemption from the registration requirements of Section 5 of the Securities Act and in compliance with all applicable securities laws of the states of the United States;

(b) the undersigned has not offered to sell the Warrant by any form of general solicitation or general advertising, including, but not limited to, any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, and any seminar or meeting whose attendees have been invited by any general solicitation or general advertising;

(c) the undersigned has read the Transferee's investment letter included herewith, and to its actual knowledge, the statements made therein are true and correct; and

(d) the undersigned understands that the Company may condition the transfer of the Warrant contemplated hereby upon the delivery to the Company by the undersigned or the Transferee, as the case may be, of a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that such transfer may be made without registration under the Securities Act and under applicable securities laws of the states of the United States.

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| | |
|:---|:---|
| <br>Dated:  |  |
|  | (Signature must conform in all respects to name of holder as specified on the face of the Warrant) |
|  | Address of Transferee |
| In the presence of: | In the presence of: |

---

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**Section 302 Certification**

I, G. William Beale, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Blue Ridge Bankshares, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| /s/ G. William Beale | Date: November 4, 2025 |
| G. William Beale |  |
| President and Chief Executive Officer  |  |

---

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**Section 302 Certification**

I, Judy C. Gavant, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of Blue Ridge Bankshares, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| /s/ Judy C. Gavant | Date: November 4, 2025 |
| Judy C. Gavant |  |
| Executive Vice President and Chief Financial Officer |  |

---

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Blue Ridge Bankshares, Inc. (the "Company") on Form 10-Q for the quarter ended September 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned Chief Executive Officer and Chief Financial Officer of the Company hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002 that based on their knowledge and belief: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.

---

| |
|:---|
| /s/ G. William Beale |
| G. William Beale |
| President and Chief Executive Officer |
| /s/ Judy C. Gavant |
| Judy C. Gavant |
| Executive Vice President and Chief Financial Officer |

---

November 4, 2025

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