Blue Ridge Bankshares, Inc. Announces 2026 First Quarter Results
Special Cash Dividend of $0.60 per Common Share Declared in the Quarter
RICHMOND, Va., April 23, 2026 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced financial results for the quarter ended March 31, 2026.
For the quarter ended March 31, 2026, the Company reported net income of $0.8 million, or $0.01 per diluted common share, compared to net income of $4.2 million, or $0.04 per diluted common share, for the quarter ended December 31, 2025, and a net loss of $0.4 million, or ($0.01) per diluted common share, for the quarter ended March 31, 2025. Net income for the first quarter of 2026 included after-tax expenses of $1.3 million related to the transition of executive officers. Net income for the first quarter of 2026 when excluding these transition expenses was $2.1 million, or $0.02 per diluted common share. Additionally, net income for the first quarter of 2026 and fourth quarter of 2025 included after-tax benefit for recovery of credit losses of $0.5 million and $1.2 million, respectively.
"On behalf of our 281 Blue Ridge Bank employees, I am pleased to report a fourth consecutive profitable quarter on the strategic journey back to our community banking roots," commented Harry Golliday, interim president and chief executive officer. "As in the prior quarter, our results reflect the impact of separation, severance, and incentive-related expenses, as well as the ongoing reduction of non-strategic loans outside of our local banking footprint—actions that weighed on near-term results but enhance the core earnings power of the community banking franchise.
"We continue to execute on noninterest expense reduction initiatives to more closely align these expenses with our community banking model. Headcount, a major driver of our noninterest expense, has been reduced by 70, or 20%, since the end of the first quarter of 2025. Results of additional initiatives will be realized in the second half of 2026.
"This quarter was also our first full quarter of operations after release last November from the regulatory consent order. The improved regulatory standing and lower capital requirements provided flexibility for another special dividend declared on March 30. In addition, we have been able to turn even greater attention to sound growth initiatives and are pleased to see increasing loan and deposit pipelines."
Q1 2026 Highlights
(Comparisons for First Quarter 2026 are relative to Fourth Quarter 2025 unless otherwise noted.)
Net Income:
Net Interest Income / Net Interest Margin:
Capital:
Noninterest Income / Noninterest Expense:
Income Tax:
Balance Sheet:
Asset Quality:
Income Statement:
Net interest income was $16.9 million for the first quarter of 2026, compared to $18.1 million and $19.0 million for the fourth and first quarters of 2025, respectively. Relative to the prior quarter, the decrease reflected primarily lower yields on loans, including lower accretion of discounts on acquired loans, and lower average balances of loans held for investment, while relative to the year-ago period, the decrease reflected lower average balances of loans held for investment and loans held for sale. Interest expense declined by $0.9 million and $3.9 million in the first quarter of 2026, compared to the fourth quarter of 2025 and the first quarter of 2025, respectively, primarily driven by lower average balances of brokered deposits.
Average balances of interest-earning assets were $2.33 billion for the three months ended March 31, 2026, a decrease of $48.9 million from the prior quarter and $286.1 million from the first quarter of 2025. Average balances of loans held for investments were $1.85 billion for the first quarter of 2026, a decrease of $43.4 million from the prior quarter and $243.0 million from the first quarter of 2025. Average balances of loans held for sale were $4.7 million for the first quarter of 2026, a decrease of $7.1 million from the fourth quarter of 2025 and $24.8 million from the first quarter of 2025, respectively, reflective of the the Company's winddown and exit of its indirect fintech lending partnerships. The yield on loans held for investment was 5.50% for the first quarter of 2026 compared to 5.66% and 5.70% for the fourth and first quarters of 2025, respectively. The decline in the first quarter of 2026 relative to the prior quarter and the same quarter of 2025 was primarily due to a decline in higher yielding out-of-market loans and lower accretion of discounts on acquired loans. Accretion of discounts on acquired loans had a 4, 10, and 7 basis point positive effect on yield on loans held for investment for the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025, respectively.
Average balances of interest-bearing liabilities were $1.67 billion for the three months ended March 31, 2026, a decrease of $24.0 million relative to the prior quarter and $226.2 million from the first quarter of 2025. The decline in the first quarter of 2026 relative to the prior quarter was primarily attributable to lower rates paid on deposit balances and lower average balances of brokered deposits of approximately $37.0 million. The decline in average balances of interest-bearing liabilities relative to the first quarter of 2025 was primarily due to reductions of brokered time deposits ($138.8 million) and borrowings ($25.1 million of subordinated debt).
Cost of funds was 2.42% for the first quarter of 2026, compared to 2.54% for the fourth quarter of 2025, and 2.78% for the first quarter of 2025, while cost of deposits was 2.27%, 2.40%, and 2.62%, for the same respective periods. These declines reflect lower average balances of higher-rate brokered deposits. Cost of deposits, excluding brokered deposits, was 1.97% for the quarter, compared to 2.04% for the prior quarter, and 2.19% for the year-ago quarter period.
NIM was 2.90% for the first quarter of 2026, compared to 3.04% in the prior quarter, and 2.90% in the first quarter of 2025. The decrease in NIM in the quarter relative to the prior quarter was driven by lower yields on loans held for investment, primarily due to a decline in higher yielding out-of-market loans and lower accretion of discounts on acquired loans, as well as decreases in average balances of higher yielding loans held for sale, partially offset by lower cost of funds, driven by lower average balances of higher-rate brokered deposits. Compared to the prior quarter, the decline in accretion of discounts reduced NIM by approximately 5 basis points.
Recoveries of credit losses of $0.6 million, $1.5 million, and $0 were reported in the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025, respectively. The recovery of credit losses of $0.6 million for the first quarter of 2026 was primarily due to loan portfolio balance reductions of $31.8 million and $0.3 million of net loan recoveries, including an $0.8 million recovery on a loan charged off in 2022. In the prior quarter, the $1.5 million recovery of credit losses was primarily due to loan portfolio balance reductions of approximately $47.0 million, a $0.9 million recovery on a loan charged off in 2022, and reductions to reserves on individually evaluated loans.
Noninterest income was $2.3 million in the first quarter of 2026, compared to $2.7 million in the fourth quarter of 2025, and $3.1 million in the first quarter of 2025. Noninterest income in the first quarter of 2026 and fourth quarter of 2025 included $0 and $0.4 million, respectively, of released reserves associated with the 2024 sales of MSRs. In the first quarter of 2025, the Company reported a loss on the sale of the Company's mortgage division of $0.2 million, and as a result, residential mortgage banking income was $0 for the first quarter of 2026 and fourth quarter of 2025 and $0.7 million in the first quarter of 2025. Swap transaction fee income was $0, $0.3 million, and $0 for the same respective periods.
Noninterest expense was $18.7 million for the first quarter of 2026, a $1.8 million increase from the prior quarter and a $4.2 million decrease from the year-ago period. The largest contributor to the increase in the current quarter was higher salaries and employee benefits expenses of $1.9 million, primarily due to $2.3 million of executive officer transition and incentive-related expenses, partially offset by lower salary expense and health insurance costs. The decrease in noninterest expense in the first quarter of 2026 relative to the same period of 2025 was primarily due to lower expenses as a result of the termination of the consent order with the Bank's primary regulator, under which the Bank was operating until it was terminated in the fourth quarter of 2025, and the transition to a more traditional community banking model. Lower expenses resulting from the consent order termination were primarily in salaries and benefits, as the number of full-time employees declined by 70 full-time employees, or over 20%, since March 31, 2025, and also resulted in lower technology costs, audit fees, and FDIC insurance premiums.
Balance Sheet:
Loans held for investment were $1.83 billion at March 31, 2026, compared to $1.87 billion at December 31, 2025, and $2.06 billion at March 31, 2025. The decline compared to the prior quarter was primarily driven by declines in loans held for investment of $31.8 million and loans held for sale of $14.8 million. Included in the reduction of loans held for investment were payoffs and paydowns of approximately $24.1 million of out-of-market loans. Loans held for investment declined $225.8 million from the first quarter of 2025, primarily attributable to payoffs and paydowns of approximately $121.4 million of out-of-market loans as the Company transitioned to a more traditional community banking model. Loans held for sale at March 31, 2026 declined $23.6 million from the first quarter of 2025, reflecting the Company's winddown and exit of its indirect fintech lending partnerships.
Total deposits were $1.89 billion at March 31, 2026, a decrease of $18.1 million and $236.4 million from December 31, 2025 and March 31, 2025, respectively. Brokered deposit balances were $207.2 million, $238.7 million, and $339.1 million at the end of the first quarter of 2026, fourth quarter of 2025, and first quarter of 2025, respectively. Brokered deposits as a percentage of total deposits declined to 10.9% at March 31, 2026, from 12.5% at December 31, 2025 and 15.9% at March 31, 2025. Excluding brokered deposits, total deposits increased $13.4 million from December 31, 2025 and decreased $104.5 million from March 31, 2025.
Noninterest-bearing deposits represented 20.7%, 20.9%, and 21.3% of total deposits at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Excluding brokered deposits, noninterest-bearing deposits represented 23.3%, 23.8%, and 25.2% of total deposits as of the same respective dates.
Subordinated notes were $14.7 million at both March 31, 2026 and December 31, 2025 and $39.8 million at March 31, 2025. The decrease from the first quarter of 2025 reflects the Company's full redemption of its $15.0 million subordinated note in the second quarter of 2025 and $10.0 million partial redemption of its $25.0 million of subordinated notes maturing October 15, 2029 (the "2029 Notes") in the third quarter of 2025. The effective interest rate in the first quarter of 2026 on the 2029 Notes was 7.92%, inclusive of the amortization of the purchase accounting adjustment (premium).
About Blue Ridge Bankshares, Inc.:
Blue Ridge Bankshares, Inc. is the holding company for Blue Ridge Bank and BRB Financial Group, Inc. The Company, through its subsidiaries and affiliates, provides a wide range of financial services including retail and commercial banking, and retail mortgage lending. The Company also provides investment and wealth management services and management services for personal and corporate trusts, including estate planning and trust administration. Visit www.mybrb.com for more information.
Reclassifications:
Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current period presentations. The reclassifications had no effect on net income (loss), net income (loss) per share, or stockholders' equity, as previously reported.
Non-GAAP Financial Measures:
The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures, including tangible assets, tangible common equity, tangible book value per common share, and tangible common equity to tangible total assets to supplement the evaluation of the Company's financial condition and performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the financial condition and capital position of the Company's business. These non-GAAP disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release.
Forward-Looking Statements:
This release of the Company contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of management's beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and are typically identified with words such as "may," "could," "should," "will," "would," "believe," "anticipate," "estimate," "expect," "aim," "intend," "plan," or words of similar meaning. The Company cautions that the forward-looking statements are based largely on management's expectations and are subject to a number of known and unknown risks and uncertainties that may change based on factors which are, in many instances, beyond its control. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements.
The following factors, among others, could cause the Company's financial performance to differ materially from that expressed in such forward-looking statements:
The foregoing factors should not be considered exhaustive and should be read together with other cautionary statements that are included in filings the Company makes from time to time with the SEC. Any one of these risks or factors could have a material adverse impact on the Company's results of operations or financial condition, or cause the Company's actual results, performance or achievements to differ materially from those expressed in, or implied by, forward-looking information and statements contained in this release. Moreover, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on its forward-looking statements. Therefore, the Company cautions not to place undue reliance on its forward-looking information and statements, which speak only as of the date of this release. The Company does not undertake to, and will not, update or revise these forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise.
1 Non-GAAP financial measure. Further information can be found at the end of this press release.
Blue Ridge Bankshares, Inc.
Consolidated Balance Sheets
(Dollars in thousands, except share data)
(unaudited)
March 31, 2026
December 31,
2025 (1)
Assets
Cash and due from banks
$ 146,608
$ 115,949
Federal funds sold
1,451
1,851
Securities available for sale, at fair value
331,914
332,928
Restricted equity investments
18,405
19,016
Other equity investments
4,952
4,910
Other investments
20,916
20,781
Loans held for sale
—
14,769
Loans held for investment, net of deferred fees and costs
1,833,899
1,865,717
Less: allowance for credit losses
(19,184)
(19,444)
Loans held for investment, net
1,814,715
1,846,273
Accrued interest receivable
11,134
10,787
Other real estate owned
1,560
1,683
Premises and equipment, net
21,635
21,549
Right-of-use lease asset
6,326
6,637
Other intangible assets
2,394
2,642
Deferred tax asset, net
22,586
22,721
Other assets
9,450
10,093
Total assets
$ 2,414,046
$ 2,432,589
Liabilities and Stockholders' Equity
Deposits:
Noninterest-bearing demand
$ 392,067
$ 398,541
Interest-bearing demand and money market deposits
598,599
612,648
Savings
102,400
100,346
Time deposits
800,008
799,627
Total deposits
1,893,074
1,911,162
FHLB borrowings
150,000
150,000
Subordinated notes, net
14,702
14,716
Lease liability
6,906
7,233
Dividends payable
54,055
6,578
Other liabilities
18,345
19,209
Total liabilities
2,137,082
2,108,898
Commitments and contingencies
Stockholders' Equity:
Common stock, no par value; 150,000,000 shares authorized at March 31,
2026 and December 31, 2025, respectively; and 89,796,993 and
91,475,278 shares issued and outstanding at March 31, 2026 and
December 31, 2025, respectively
332,152
331,917
Additional paid-in capital
23,552
23,552
Accumulated deficit
(47,440)
(659)
Accumulated other comprehensive loss, net of tax
(31,300)
(31,119)
Total stockholders' equity
276,964
323,691
Total liabilities and stockholders' equity
$ 2,414,046
$ 2,432,589
(1) Derived from audited December 31, 2025 Consolidated Financial Statements.
Blue Ridge Bankshares, Inc.
Consolidated Statements of Income (unaudited)
For the Three Months Ended
(Dollars in thousands, except per common share data)
March 31, 2026
December 31, 2025
March 31, 2025
Interest income:
Interest and fees on loans
$ 25,709
$ 27,529
$ 31,154
Interest on securities, deposit accounts, and federal funds sold
3,680
3,945
4,196
Total interest income
29,389
31,474
35,350
Interest expense:
Interest on deposits
10,760
11,597
14,192
Interest on subordinated notes
291
294
736
Interest on FHLB borrowings
1,432
1,464
1,432
Total interest expense
12,483
13,355
16,360
Net interest income
16,906
18,119
18,990
Recovery of credit losses - loans
(600)
(1,400)
—
Recovery of credit losses - unfunded commitments
—
(100)
—
Total recovery of credit losses
(600)
(1,500)
—
Net interest income after recovery of credit losses
17,506
19,619
18,990
Noninterest income:
Service charges on deposit accounts
632
670
457
Bank and purchase card interchange income, net
545
499
567
Wealth and trust management fees
464
561
454
Swap transaction fees
—
282
—
Residential mortgage banking income
—
13
724
Mortgage servicing rights ("MSRs")
—
(200)
2
Income on sale of MSRs
—
401
—
Fair value adjustments of other equity investments
66
(120)
(73)
Other
641
581
941
Total noninterest income
2,348
2,687
3,072
Noninterest expense:
Salaries and employee benefits
11,057
9,176
12,610
Occupancy and equipment
1,239
1,219
1,381
Technology and communications
1,987
2,077
2,784
Legal and regulatory filings
582
556
439
Advertising and marketing
765
617
191
Audit fees
255
215
578
FDIC insurance
420
421
1,097
Intangible amortization
202
213
244
Other contractual services
202
222
595
Other taxes and assessments
828
907
921
Other
1,204
1,298
2,111
Total noninterest expense
18,741
16,921
22,951
Income (loss) before income taxes
1,113
5,385
(889)
Income tax expense (benefit)
277
1,141
(455)
Net income (loss)
$ 836
$ 4,244
$ (434)
Basic earnings (loss) per common share
$ 0.01
$ 0.05
$ (0.01)
Diluted earnings (loss) per common share
$ 0.01
$ 0.04
$ (0.01)
Blue Ridge Bankshares, Inc.
Quarter Summary of Selected Financial Data (unaudited)
As of and for the Three Months Ended
(Dollars and shares in thousands, except per common share data)
March 31,
December 31,
September 30,
June 30,
March 31,
Income Statement Data:
2026
2025
2025
2025
2025
Interest income
$ 29,389
$ 31,474
$ 36,213
$ 34,736
$ 35,350
Interest expense
12,483
13,355
14,302
14,895
16,360
Net interest income
16,906
18,119
21,911
19,841
18,990
Recovery of credit losses
(600)
(1,500)
(1,800)
(700)
—
Net interest income after recovery of credit losses
17,506
19,619
23,711
20,541
18,990
Noninterest income
2,348
2,687
3,833
3,244
3,072
Noninterest expense
18,741
16,921
20,041
22,009
22,951
Income (loss) before income taxes
1,113
5,385
7,503
1,776
(889)
Income tax expense (benefit)
277
1,141
1,900
480
(455)
Net income (loss)
836
4,244
5,603
1,296
(434)
Per Common Share Data:
Earnings (loss) per common share - basic
$ 0.01
$ 0.05
$ 0.06
$ 0.01
$ (0.01)
Earnings (loss) per common share - diluted
0.01
0.04
0.06
0.01
(0.01)
Cash dividends per common share
0.60
0.25
—
—
—
Book value per common share
3.13
3.68
4.03
3.88
3.86
Tangible book value per common share - Non-GAAP
3.11
3.65
4.01
3.85
3.83
Balance Sheet Data:
Total assets
$ 2,414,046
$ 2,432,589
$ 2,496,949
$ 2,555,439
$ 2,685,084
Average assets
2,423,491
2,473,241
2,535,853
2,630,898
2,721,714
Average interest-earning assets
2,334,674
2,383,573
2,437,542
2,525,835
2,620,725
Loans held for investment ("LHFI")
1,833,899
1,865,717
1,912,726
1,978,585
2,059,710
Allowance for credit losses
19,184
19,444
20,503
21,974
23,126
Purchase accounting adjustments (discounts) on acquired loans
2,473
2,608
2,984
3,388
3,710
Loans held for sale
—
14,769
12,819
12,380
23,624
Securities available for sale, at fair value
331,914
332,928
341,354
327,958
325,401
Noninterest-bearing demand deposits
392,067
398,541
411,100
432,939
452,590
Total deposits
1,893,074
1,911,162
1,951,079
2,010,266
2,129,477
Subordinated notes, net
14,702
14,716
14,731
24,928
39,773
FHLB advances
150,000
150,000
150,000
150,000
150,000
Average interest-bearing liabilities
1,673,077
1,697,083
1,739,014
1,819,735
1,899,315
Total stockholders' equity
276,964
323,691
355,505
344,265
338,289
Average stockholders' equity
324,390
331,888
345,358
339,131
329,684
Weighted average common shares outstanding - basic
88,343
88,037
88,548
88,258
86,003
Weighted average common shares outstanding - diluted
99,758
99,207
99,384
95,903
86,003
Outstanding warrants to purchase common stock
`
24,320
24,320
27,549
27,674
28,690
Financial Ratios:
Return on average assets (1)
0.14 %
0.69 %
0.88 %
0.20 %
-0.06 %
Return on average equity (1)
1.03 %
5.11 %
6.49 %
1.53 %
-0.53 %
Total loan to deposit ratio
96.9 %
98.4 %
98.7 %
99.0 %
97.8 %
Held for investment loan-to-deposit ratio
96.9 %
97.6 %
98.0 %
98.4 %
96.7 %
Net interest margin (1)
2.90 %
3.04 %
3.60 %
3.15 %
2.90 %
Yield of LHFI (1)
5.50 %
5.66 %
6.40 %
5.80 %
5.70 %
Cost of deposits (1)
2.27 %
2.40 %
2.51 %
2.47 %
2.62 %
Cost of funds (1)
2.42 %
2.54 %
2.65 %
2.63 %
2.78 %
Efficiency ratio
97.3 %
81.3 %
77.8 %
95.3 %
104.0 %
Noninterest expense to total assets (1)
3.11 %
2.78 %
3.21 %
3.45 %
3.42 %
Capital and Asset Quality Ratios:
Average stockholders' equity to average assets
13.4 %
13.4 %
13.6 %
12.9 %
12.1 %
Allowance for credit losses to LHFI
1.05 %
1.04 %
1.07 %
1.11 %
1.12 %
Ratio of net (recoveries) charge-offs to average loans outstanding (1)
-0.07 %
-0.07 %
-0.07 %
0.09 %
-0.02 %
Nonperforming loans to total assets
0.87 %
0.98 %
1.14 %
0.94 %
0.93 %
Nonperforming assets to total assets
0.94 %
1.05 %
1.15 %
0.95 %
0.94 %
Nonperforming loans to total loans
1.15 %
1.26 %
1.48 %
1.20 %
1.19 %
Reconciliation of Non-GAAP Financial Measures (unaudited):
As of and for the Three Months Ended
(Dollars and shares in thousands, except per common share data)
March 31,
December 31,
September 30,
June 30,
March 31,
Tangible Common Equity and Tangible Book Value Per Common Share:
2026
2025
2025
2025
2025
Common stockholders' equity
$ 276,964
$ 323,691
$ 355,505
$ 344,265
$ 338,289
Less: other intangibles, net of deferred tax liability (2)
(1,868)
(2,052)
(2,285)
(2,509)
(2,740)
Tangible common equity (Non-GAAP)
$ 275,096
$ 321,639
$ 353,220
$ 341,756
$ 335,549
Total common shares outstanding
89,797
91,475
91,637
92,175
87,778
Less: unvested performance-based restricted stock awards
(1,412)
(3,453)
(3,460)
(3,496)
(109)
Total common shares outstanding, adjusted
88,385
88,022
88,177
88,679
87,669
Book value per common share
$ 3.13
$ 3.68
$ 4.03
$ 3.88
$ 3.86
Tangible book value per common share (Non-GAAP)
3.11
3.65
4.01
3.85
3.83
Tangible Common Equity to Tangible Total Assets
Total assets
$ 2,414,046
$ 2,432,589
$ 2,496,949
$ 2,555,439
$ 2,685,084
Less: other intangibles, net of deferred tax liability (2)
(1,868)
(2,052)
(2,285)
(2,509)
(2,740)
Tangible total assets (Non-GAAP)
$ 2,412,178
$ 2,430,537
$ 2,494,664
$ 2,552,930
$ 2,682,344
Tangible common equity (Non-GAAP)
$ 275,096
$ 321,639
$ 353,220
$ 341,756
$ 335,549
Tangible common equity to tangible total assets (Non-GAAP)
11.4 %
13.2 %
14.2 %
13.4 %
12.5 %
(1) Annualized.
(2) Excludes mortgage servicing rights.
SOURCE Blue Ridge Bankshares, Inc.