The financial results reflect a period of operational transition for the holding company. While the bank saw a 4% annualized loan growth rate—its first quarterly expansion in 13 quarters—the bottom line was impacted by the nonaccrual status of $11.4 million in out-of-market loans. Management established a $1.5 million reserve to address these specific credit issues, which they described as unique rather than systemic to the broader portfolio.
Blue Ridge Bankshares Reports Q2 Loss Amid Loan Growth and Restructuring
Richmond-based Blue Ridge Bankshares recorded a net loss of $0.2 million for the second quarter of 2026, a decline from the $0.8 million income reported in the first quarter, as the company absorbed a $2.1 million provision for credit losses tied to out-of-market loans originated before 2024.
Despite the net loss, the company reported improved pre-tax, pre-provision income of $2.9 million when excluding severance expenses, up from $2.2 million in the previous quarter. This improvement was supported by disciplined cost-cutting, including a reduction in headcount to 269 employees, down from 333 a year ago. Interim CEO Harry Golliday noted that the bank is focusing on its community banking roots while exiting fintech lending partnerships, a shift that contributed to a decrease in average interest-earning assets to $2.28 billion. The firm’s capital position remains stable, with a tier 1 leverage ratio of 11.27% reported at the end of June.
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