Blue Ridge Bankshares reported a net loss for the third quarter of 2026, primarily driven by a significant provision for credit losses and expenses related to its pending merger with HomeTrust Bancshares. While the bottom-line was negative, the company realized sequential expansion in its net interest margin and maintained discipline regarding operating expenses and deposit costs.
Key Highlights
- Reported a net loss of $4.2 million, or ($0.05) per diluted share, compared to a net loss of $1.3 million in the second quarter of 2026.
- Net interest margin improved by 17 basis points sequentially to 3.08%, supported by higher loan yields and a reduction in high-cost brokered deposits.
- Asset quality was impacted by a $9.9 million charge-off related to a single legacy out-of-market relationship in the hydroponic farming business.
- Merger-related expenses for the HomeTrust transaction totaled $1.2 million pre-tax during the quarter, with the deal currently anticipated to close in the first quarter of 2027.
- Total deposits decreased by $48.2 million to $1.81 billion, reflecting a strategic effort to reduce higher-cost brokered deposit balances.