Blue Ridge Bankshares Posts $4.2 Million Loss
The third-quarter loss followed a charge-off tied to a single borrower as the bank prepares to merge with HomeTrust Bancshares.
Updated on Nov. 6, 2026 in Healthcare
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Blue Ridge Bankshares reported a $4.2 million loss in the third quarter, compared with a $5.6 million profit in the same period last year. The loss was largely driven by a $9.9 million charge-off tied to a single borrower relationship.
Why it matters
The loss reflects credit problems tied to loans made before 2024 by the bank's former government-guaranteed lending team, and it comes as the bank pursues a merger with HomeTrust Bancshares valued at about $448.1 million. Virginia regulators must review the merger application, which affects how the state's banking sector consolidates.
The bank reported a $4.2 million third-quarter loss on about $20 million in revenue, after a $1.3 million loss in the second quarter. Its nine-month 2026 loss totals $4.6 million, and it is unclear whether additional charge-offs will follow.
The players
Blue Ridge Bankshares
Blue Ridge Bankshares is the Henrico-headquartered holding company for Blue Ridge Bank, a Virginia community bank.
HomeTrust Bancshares
HomeTrust Bancshares is a North Carolina-based bank holding company that is acquiring Blue Ridge Bankshares.
The details
Blue Ridge exited its former financial technology lending business, raised more than $150 million in new capital, cut its workforce and reduced the amount of money held by the bank. The Henrico-headquartered bank, which operates 27 branches and holds about $2.34 billion in assets, is combining with HomeTrust Bancshares of North Carolina.
Timeline
Loans to the hydroponic farming borrower were originated before 2024.
The OCC lifted its regulatory order against the bank in late 2025.
The merger agreement with HomeTrust was announced in August 2026.
A preliminary joint proxy statement was filed with the SEC on October 2, 2026.
The companies expect the merger to close in early 2027.
Market Landscape
The deal reflects a wave of smaller regional banks in the Southeast combining with larger holding companies to gain scale after credit setbacks. It positions HomeTrust to combine with Blue Ridge's more than 60 locations across the region.
Customers of Blue Ridge Bank should expect the bank to operate under HomeTrust's structure once the merger closes in early 2027. The source does not indicate any change to branch service or account terms before then.
The takeaway
Regional banks facing credit losses often turn to mergers for scale and capital, and Blue Ridge's pending deal with HomeTrust shows how that path unfolds. Readers with accounts at either bank can watch for the merger's regulatory milestones in 2027.
What happens next
The companies expect the merger to close in early 2027, after regulatory review of the application.
Further reading
For more on the sector, see Healthcare coverage across Virginia.
Source note: This article includes information reported by The Virginian-Pilot.
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