Blue Ridge Bankshares Reports Mixed Results for Q3 2026 as It Prepares for Merger

Blue Ridge Bankshares Reports Third Quarter Results for 2026

Date: October 26, 2026
Location: Richmond, Virginia

Blue Ridge Bankshares, Inc., as the holding company of Blue Ridge Bank, has released its financial results for the third quarter of 2026, which ended on September 30. The company experienced a net loss of $4.2 million, or ($0.05) per diluted common share, a notable shift compared to the net income of $5.6 million or $0.06 per share reported for the same quarter in the previous year. This change reflects a challenging quarter impacted by unusual credit loss provisions and merger-related expenses.

Financial Performance Highlights

During this reporting period, Blue Ridge faced an after-tax provision of $6.6 million for credit losses. In contrast, the previous quarter had a provision of $3.2 million. A significant part of this provision was linked to a specific out-of-market borrowing relationship that was initiated before 2024, which contributed to the substantial losses this quarter. Additionally, merger-related expenses of $0.9 million lowered the company's earnings.

The company emphasized that excluding these extraordinary expenses, its pre-tax, pre-provision income—referred to as Adjusted Pre-tax Earnings—was positive at $5.3 million, marking an increase from $2.9 million in the second quarter of 2026.

Upcoming Merger with HomeTrust Bancshares

Highlighting strategic growth, in August 2026, Blue Ridge Bankshares entered a definitive merger agreement with HomeTrust Bancshares, signaling a major operational shift in the company's future. Pending regulatory and shareholder approvals, this merger is expected to finalize in the first quarter of 2027. This integration aims to create a stronger financial entity positioned for long-term sustainability and growth.

Navigating Challenges

Commenting on the results, Harry Golliday, the interim president and CEO, noted the focus on sound financial management, profitability, and growth within the core markets of the community banking sector. The company reported ongoing improvements in loan growth, marginal increases in loan yields, and a refined mix of deposits, alongside maintaining non-interest expense discipline.

While the bank expanded its net interest margin (