Blue Ridge Bankshares posts Q2 net loss on higher credit provisions

Overview

• U.S. community bank posted Q2 net loss, reversing profit from prior quarter and year-ago

• Q2 loss driven by $2.1 mln provision for credit losses and $0.3 mln severance expenses

• Company saw first loan growth in 13 quarters and improved pre-tax, pre-provision income

Outlook

• Blue Ridge Bankshares expects expense reduction actions to be realized in H2 2026

• Company sees healthy economic conditions in local markets driving business investment and consumer spending

Result Drivers

• LOAN GROWTH - Co reported first loan growth in 13 qtrs, driven by commercial and residential mortgage lending and a new partnership to purchase adjustable-rate mortgages

• IMPROVED DEPOSIT MIX - Lower average balances of brokered deposits contributed to a modest improvement in net interest margin and reduced interest expense

• LOWER NONINTEREST EXPENSE - Noninterest expense fell by $2.8 mln from prior qtr, mainly due to lower salaries, severance, and incentive-related costs after headcount reductions

Company press release: ID:nPn8VY6r9a

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)