Blue Ridge Bankshares Reports $1.3 Million Net Loss in Q2 2026

Blue Ridge Bankshares, Inc. reported a net loss of $1.3 million for the second quarter of 2026, translating to a loss of $0.01 per diluted share, a significant decline from a net income of $1.3 million, or $0.01 per diluted share, in the same quarter of 2025. For the first half of 2026, the company recorded a net loss of $459,000 compared to a profit of $862,000 in the prior year. The decline in profitability was attributed to a $3.5 million provision for credit losses, primarily related to a single out-of-market loan relationship that was placed on nonaccrual status. Total interest income for the second quarter decreased to $28.8 million, down from $34.7 million a year earlier, while interest expense also fell to $12.3 million from $14.9 million, resulting in a net interest income of $16.5 million, down from $19.8 million.

The company's total assets decreased to $2.33 billion as of June 30, 2026, down from $2.43 billion at the end of 2025. This decline was largely driven by a $54.3 million reduction in cash and due from banks, alongside decreases in securities available for sale and loans held for investment. Total deposits also fell by $48.8 million to $1.86 billion, primarily due to a $52.9 million decrease in brokered time deposits, although non-brokered deposits increased slightly by $4.1 million. The allowance for credit losses rose to $22.0 million from $19.4 million, reflecting the increased reserves for the aforementioned nonaccrual loans.

Strategically, Blue Ridge Bankshares has exited its indirect fintech lending activities, which contributed to a decrease in loans held for sale. The company has also partnered with a third-party residential mortgage originator, resulting in $17.3 million in mortgage purchases during the second quarter. The total stockholders' equity decreased to $275.4 million, primarily due to a special cash dividend of $54.1 million paid in April 2026. The company has also amended its warrants, reducing the exercise price in connection with cash distributions to shareholders.

Operationally, the company has seen a reduction in its employee headcount, decreasing from 302 employees at the end of 2025 to 269 by June 30, 2026, as part of its transition to a more traditional community banking model. The company reported a decline in noninterest income, which fell to $1.77 million in the second quarter, down from $3.24 million a year earlier, largely due to the exit from its mortgage banking segment and a loss on the sale of securities. Looking ahead, Blue Ridge Bankshares aims to stabilize its financial performance by focusing on core banking operations and managing credit risk effectively, while also navigating the challenges posed by the current economic environment.