Blue Ridge Bankshares (BRBS) investor relations material

Executive summary

• Reported a net loss of $1.3 million for Q2 2026 and $0.5 million for the first half of 2026, compared to net income in prior year periods, driven by a $3.2 million after-tax provision for credit losses and $0.3 million in after-tax severance expenses.

• Special cash dividend of $0.60 per share ($54.1 million) paid in April 2026, impacting equity and liquidity.

• Excluding severance, pre-tax, pre-provision income improved to $2.9 million, up 30% sequentially and more than double year-over-year.

• Significant provision for credit losses due to a single out-of-market commercial relationship placed on nonaccrual.

• Continued transition to a traditional community banking model, with reduced fintech exposure and lower headcount.

Financial highlights

• Net interest income for Q2 2026 was $16.5 million, down from $16.9 million in Q1 2026 and $19.8 million in Q2 2025; for the first half, $33.4 million, down $5.4 million year-over-year.

• Net interest margin was 2.91% in Q2 2026, up slightly from 2.90% in Q1 2026 but down from 3.15% in Q2 2025.

• Provision for credit losses on loans was $3.5 million in Q2 2026, driven by a $2.9 million reserve for a single borrower.

• Noninterest income fell 45% year-over-year in Q2 2026, mainly due to the sale of the mortgage division, fintech exit, and a $0.6 million loss on liquidation of an equity investment.

• Noninterest expense decreased 28% year-over-year in Q2 2026, falling to $15.9 million, mainly due to lower headcount, severance, and FDIC insurance costs.

• Total assets were $2.33 billion at June 30, 2026, down from $2.41 billion in Q1 2026 and $105.3 million from year-end 2025.

• Loans held for investment grew by $19.6 million to $1.85 billion, while total deposits decreased by $30.7 million to $1.86 billion, mainly due to a reduction in brokered deposits.

• Stockholders' equity decreased by $48.3 million to $275.4 million, primarily due to the special dividend.

Outlook and guidance

• Management expects further benefits from expense reduction actions in the second half of 2026 and continues to focus on core community banking, cost efficiency, and risk management.

• Healthy local economic conditions are supporting business investment and consumer spending, with encouraging loan and deposit pipelines.

• No specific quantitative forward guidance provided; ongoing monitoring of credit quality and market conditions.