Blue Ridge Bankshares, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported a net loss of $4.2 million ($0.05 per diluted share) for the quarter ended September 30, 2026, compared to a net loss of $1.3 million ($0.01 per diluted share) in the prior quarter and net income of $5.6 million ($0.06 per diluted share) in the same period of 2025.
• Net loss for the quarter included an after-tax provision for credit losses of $6.6 million, compared to a $3.2 million provision in the second quarter of 2026 and a $1.4 million recovery in the third quarter of 2025.
• Adjusted Pre-tax Earnings (excluding merger-related and severance expenses) improved to $5.3 million for the third quarter of 2026, up from $2.9 million in the second quarter of 2026.
• Net interest income totaled $17.4 million for the quarter, an increase of $0.9 million from the prior quarter and a decrease of $4.5 million from the third quarter of 2025.
• Net interest margin (NIM) was 3.08% for the quarter, an improvement of 17 basis points from the prior quarter and a decrease from 3.60% in the third quarter of 2025.
• Noninterest expense was $15.9 million for both the third and second quarters of 2026, down from $20.0 million in the third quarter of 2025.
• Noninterest income was $2.6 million for the quarter, compared to $1.8 million in the prior quarter and $3.8 million in the third quarter of 2025.
• Total assets increased to $2.34 billion at quarter-end from $2.33 billion in the prior quarter.
• Total stockholders' equity declined $7.8 million to $267.6 million at quarter-end.
• Tangible common equity to tangible total assets was 11.4% at September 30, 2026, compared to 11.8% at June 30, 2026.
• Tangible book value per common share was $3.00 at September 30, 2026, compared to $3.09 at June 30, 2026.

Guidance and Future Outlook:

• The HomeTrust Merger is anticipated to close in the first quarter of 2027, pending required approvals including shareholder approvals.
• Management stated that focus remains on soundness, profitability, and growth in core community bank markets following the lifting of a regulatory consent order in late 2025.
• The company expects continued quarterly improvements in loan growth, loan yields, deposit mix, and noninterest expense discipline.

Business Segments and Product Lines:

• Loans held for investment increased $33.1 million to $1.89 billion, driven by growth in residential mortgages from an agreement with a third-party originator.
• Loans held for sale were $0 at September 30, 2026, reflecting the exit of indirect fintech lending.
• Total deposits decreased $48.2 million to $1.81 billion; excluding brokered deposits, deposits decreased $19.2 million.
• Brokered deposits declined to $156.9 million at September 30, 2026, from $185.8 million at June 30, 2026, and $267.9 million at September 30, 2025.
• FHLB borrowings increased $86.0 million to $236.0 million at September 30, 2026.
• The company redeemed the remainder of its 2029 Notes totaling $14.7 million on July 15, 2026, resulting in no outstanding subordinated notes.
• Headcount decreased to 255 employees at September 30, 2026, from 269 at June 30, 2026, and 311 at September 30, 2025.

Market and Competitive Landscape:

• The company de-risked the balance sheet with a substantial charge-off on a legacy out-of-footprint relationship operating in the hydroponic farming business.
• The credit issues affecting the single borrower associated with the charge-off are believed to be unique and not systemic to the overall loan portfolio.
• The company exited indirect fintech lending, resulting in zero loans held for sale.

Risks and Challenges:

• Net loss for the quarter was significantly impacted by an $8.0 million provision for credit losses on loans, primarily associated with a single out-of-market relationship originated prior to 2024.
• Merger-related expenses of $1.2 million ($0.9 million after-tax) were incurred in the third quarter of 2026.
• The effective income tax rate declined to 3.7% in the third quarter from 20.5% in the prior quarter due to limitations on the tax deductibility of compensation and certain merger-related expenses.
• Total stockholders' equity decline included a $3.8 million after-tax change in the market value of available-for-sale securities driven by increased market interest rates.

Management Commentary and Tone:

• Harry Golliday, interim president and chief executive officer, commented that the third quarter results reflect continued quarterly improvements in loan growth, loan yields, deposit mix, and noninterest expense discipline.
• Management highlighted the lifting of the regulatory consent order in late 2025 as a catalyst for shifting focus to soundness, profitability, and growth.

Other Key Points:

• On August 17, 2026, the Company and HomeTrust Bancshares, Inc. entered into a definitive merger agreement to merge the Company and Bank with HomeTrust and HomeTrust Bank, respectively.
• Nonperforming loans decreased to $24.9 million (1.07% of total assets) at September 30, 2026, from $31.2 million (1.34% of total assets) at June 30, 2026, including a $9.9 million charge-off.
• Net loan charge-offs were $10.3 million in the third quarter of 2026, with $9.9 million attributable to the out-of-market loans.
• The ratio of net loan charge-offs to average loans outstanding was 2.20% for the third quarter of 2026, compared to 0.14% for the second quarter.
• The allowance for credit losses as a percentage of total loans held for investment was 1.05% at September 30, 2026, down from 1.19% at June 30, 2026.
• No cash dividends were declared for the third quarter of 2026.