Blue Ridge Bankshares in Charlottesville, Va., booked a bigger second-quarter loss than it initially reported after increasing reserves on a problem loan.
The $2.3 billion-asset company said in a press release that it lost $1.3 million in the second quarter, compared with the $200,000 loss it originally disclosed in late July. The company had previously reported an $800,000 profit for the first quarter.
Blue Ridge said the commercial borrower tied to the $11.4 million out-of-market loan relationship, originated before 2024 by the company’s former government-guaranteed lending team, had ceased operations after the original quarterly release. Blue Ridge increased its reserve on the loan to $2.9 million after tax, up from the $1.2 million it had set aside previously.
The revised results pushed the after-tax loan-loss provision to $3.2 million for the quarter.
Nonperforming loans totaled $31.2 million, or 1.34% of total assets, up from $21 million, or 0.87% of total assets, in the first quarter.
Despite the loss, Harry Golliday, Blue Ridge’s interim president and CEO, pointed to underlying improvement. Blue Ridge had 4% annualized loan growth, its first quarterly increase in 13 quarters. Excluding severance costs, pre-tax, pre-provision income rose to $2.9 million, up from $2.2 million in the first quarter.
Noninterest expense fell $2.8 million from the prior quarter to $15.9 million, driven by lower severance and incentive costs. Headcount stood at 269 at quarter-end, down from 333 a year earlier.
Blue Ridge continued exiting its indirect fintech lending partnerships during the quarter; loans held for sale stood at zero, down from $12.4 million a year earlier. The company redeemed the remainder of its subordinated notes in July, leaving it debt-free on that front.
The company paid a $54.1 million special dividend, or 60 cents a share, in April.