Blue Ridge earnings fell to a $4.2 million net loss in the third quarter of 2026 as credit loss provisions and expenses tied to a planned merger weighed on results. The loss was $0.05 per diluted share.

Key Takeaways

  • The third-quarter loss widened from $1.3 million in the preceding quarter.
  • Most of the after-tax credit loss provision was attributed to loans involving one out-of-market borrower.
  • Adjusted pre-tax earnings rose to $5.3 million, separate from the reported net loss.

Blue Ridge earnings reflect higher credit provisions

The Virginia-based bank holding company reported its results on October 26, 2026. Its third-quarter loss compared with a $1.3 million loss, or $0.01 per diluted share, in the second quarter. A year earlier, it earned $5.6 million, or $0.06 per diluted share.

The quarter included a $6.6 million after-tax provision for credit losses, mostly attributed to problematic loans connected to a single out-of-market borrower. Blue Ridge also incurred $0.9 million in after-tax expenses related to its planned merger with HomeTrust Bancshares. The merger was not described as completed.

Interest income and adjusted earnings improve

Net interest income rose to $17.4 million from $16.5 million in the second quarter, while the net interest margin increased to 3.08% from 2.91%. Both remained below their third-quarter 2025 levels of $21.9 million and 3.60%, respectively.

Adjusted pre-tax earnings were $5.3 million, approximately 85% higher than in the second quarter. Interim President and CEO Harry Golliday said the results reflected quarterly improvements in loan growth, loan yields, deposit mix and noninterest expense discipline.

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