Blue Ridge Bankshares Reports Q3 2026 Net Loss of $4.2 Million Amid M&A and Credit Costs

Blue Ridge Bankshares, Inc. reported a net loss of $4.2 million, or ($0.05) per diluted common share, for the third quarter ended September 30, 2026. This compares to a net loss of $1.3 million in the prior quarter and net income of $5.6 million in the same period of 2025. The company attributes the widening loss to increased credit costs and merger-related expenses.

The primary driver of the loss was an after-tax provision for credit losses of $6.6 million, compared to a recovery of $1.4 million in the prior year. The provision was driven by loans associated with a single out-of-market relationship originated prior to 2024. Additionally, the company incurred $0.9 million in after-tax merger-related expenses. Excluding these items, adjusted pre-tax earnings improved to $5.3 million in the third quarter, up from $2.9 million in the second quarter.

Blue Ridge Bankshares announced a definitive merger agreement with HomeTrust Bancshares, Inc. on August 17, 2026. Under the agreement, the Company and its Bank will merge with and into HomeTrust and HomeTrust Bank, respectively. The transaction is anticipated to close in the first quarter of 2027, pending regulatory and shareholder approvals.

On the balance sheet, total assets increased to $2.34 billion at quarter end. Loan growth was a key contributor, with average balances of loans held for investment increasing by $44.8 million. Net interest income rose to $17.4 million, and the net interest margin improved to 3.08% from 2.91% in the prior quarter. However, total stockholders' equity declined by $7.8 million, largely due to a $3.8 million decline in the market value of the available-for-sale securities portfolio.

Asset quality metrics showed improvement, with nonperforming loans decreasing to $24.9 million, or 1.07% of total assets, from $31.2 million in the prior quarter. This decline included a $9.9 million charge-off related to the out-of-market loans mentioned earlier. The allowance for credit losses as a percentage of total loans held for investment was 1.05% at September 30, 2026.