EX-99.1 2 vabk-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

img2203825_0.jpg

FOR IMMEDIATE RELEASE

INVESTOR RELATIONS CONTACT:

 

Tara Y. Harrison (434) 817-8587

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

ANNOUNCES 2025 SECOND QUARTER EARNINGS

AND QUARTERLY DIVIDEND

Charlottesville, VA – July 24, 2025 - Virginia National Bankshares Corporation (NASDAQ: VABK) (the “Company”) today reported quarterly net income of $4.2 million, or $0.78 per diluted share, for the quarter ended June 30, 2025, compared to $4.2 million, or $0.77 per diluted share, recognized for the quarter ended June 30, 2024. For the six months ended June 30, 2025, the Company recognized net income of $8.7 million, or $1.61 per diluted share, compared to $7.8 million, or $1.45 per diluted share, for the six months ended June 30, 2024.

The increase in second quarter net income year-over-year was primarily the result of increased net interest income, resulting from increased interest income from higher average loan balances compared to the prior period, combined with decreased interest expense, as a result of the reduction in cost of funds associated with deposits and borrowings. The decrease in interest expense on deposits was the primary contributor to the increase in net income year-to-date for 2025 compared to the prior year.

Dividend Declaration

On July 23, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock payable on August 29, 2025, to the holders of record at the close of business on August 15, 2025. The quarterly cash dividend represents an annual yield to shareholders of approximately 3.78% based on the closing price of the Company’s common stock on July 23, 2025.

President and Chief Executive Officer's comments: "We continue to post steady earnings results for 2025, with year-to-date earnings of $8.7 million, putting the Bank 12% ahead of 2024," stated Glenn W. Rust, President and Chief Executive Officer. "Our continuing focus on operating efficiencies and asset quality enables our lending and retail teams to provide exceptional service to depositors and borrowers alike. This translates into a positive return to our customers, the communities we serve, and our shareholders."

Key Performance Indicators

Second quarter 2025 compared to second quarter 2024

•
Return on average assets remained steady at 1.05%.
•
Net interest margin (FTE)1 improved to 3.40% from 3.04%
•
Loan-to-deposit ratio increased to 89.4% from 84.3%, with loan balances increasing by $83.5 million or 7.2% since June 30, 2024.
•
Efficiency ratio (FTE)1 improved to 61.2% from 62.7%

June 30, 2025 Balance Sheet Highlights

•
The Company continued to experience modest loan growth in the second quarter of 2025, with gross loan balances increasing $5.7 million from year-end. Gross loans outstanding as of June 30, 2025 totaled $1.2 billion, an increase of $83.5 million, or 7.2% compared to June 30, 2024.
•
Deposit balance decreases of $34.5 million since December 31, 2024 facilitated the efforts to stabilize the overall cost of funds through changes in the mix of lower cost components. Deposits increased $15.2 million or 1.1% from June 30, 2024.

_____________________________________________________________________

1 See "Reconciliation of Certain Quarterly Non-GAAP Financial Measures" at the end of this release.

 

Page 1 of 10

 

 

•
Securities balances declined $28.3 million from June 30, 2024 to June 30, 2025; this decline was strategic as funds from the maturities of investments were repurposed to higher yielding assets in the form of loans.
•
The Company utilizes a third-party to offer multi-million-dollar FDIC insurance to customers with balances in excess of single-bank limits through reciprocal Insured Cash Sweep® (ICS) plans. Deposit balances held in ICS plans amounted to $159.6 million as of June 30, 2025, $166.6 million as of December 31, 2024 and $144.8 million as of June 30, 2024.
•
Outstanding borrowings from the FHLB increased by $41.0 million to $61.0 million as of June 30, 2025 from December 31, 2024 and by $31.0 million from $30.0 million at June 30, 2024. As of June 30, 2025, the Company had unused borrowing facilities in place of approximately $172.0 million and held no brokered deposits.

Loans and Asset Quality

•
Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.48% as of June 30, 2025, 0.19% as of December 31, 2024 and 0.25% as of June 30, 2024.
•
Nonperforming assets amounted to $7.8 million as of June 30, 2025, compared to $3.0 million as of December 31, 2024 and $4.0 million as of June 30, 2024;
o
Fourteen loans to thirteen borrowers are in non-accrual status, totaling $2.6 million, as of June 30, 2025, compared to $2.3 million as of December 31, 2024 and $2.4 million as of June 30, 2024.
o
Loans 90 days or more past due and still accruing interest amounted to $5.2 million as of June 30, 2025, compared to $754 thousand as of December 31, 2024 and $1.6 million as of June 30, 2024. The past due balance as of June 30, 2025 is comprised of six loans totaling $5.1 million which are 100% government-guaranteed, and six student loans totaling $31 thousand.
o
The Company currently holds no other real estate owned.
•
The period-end Allowance for Credit Losses on Loans (“ACL”) as a percentage of total loans was 0.67% as of June 30, 2025, 0.68% as of December 31, 2024 and 0.69% as of June 30, 2024. The individual differences in the balances of various pools as well as changing loss rates has resulted in only nominal changes to the overall ACL ratio. The proportionate increase in government-guaranteed loans over the respective periods is also a main driver holding the ACL as a percentage of total loans fairly steady year-over-year. Balances in such loans are 100% government-guaranteed and do not require an ACL.
•
The fair value mark that was allocated to the acquired loans was $21.3 million as of April 1, 2021, with a remaining balance of $5.7 million as of June 30, 2025.
•
For the three months ended June 30, 2025, the Company recorded a net charge to the provision for credit losses of $3 thousand, due primarily to declining balances in pools with higher loss rates offsetting reserves required by changes in environmental factors. The provision includes an $87 thousand recovery for changes in unfunded reserves, as a result of a decline in unfunded construction commitments.

Net Interest Income

•
Net interest income for the three months ended June 30, 2025 of $12.8 million increased $1.6 million, or 14.4%, compared to the three months ended June 30, 2024, as interest income earned on assets increased with decreased interest expense on deposit accounts driving an additional net increase.
•
Net interest margin (FTE), (a non-GAAP financial measure)1, for the three months ended June 30, 2025 was 3.40%, compared to 3.04% for the three months ended June 30, 2024. The increase as compared to the first quarter of 2024 was the outcome of the higher yielding mix of interest earning assets and the decrease in cost of funds, both described below.
•
The Bank's yield on loans was 5.60% for the three months ended June 30, 2025, compared to 5.71% for the prior year same period. The accretion of the fair value mark related to purchased loans positively impacted interest income by 14 bps in the second quarter of 2025, compared to 15 bps in the second quarter of 2024.
•
The overall cost of funds, including noninterest-bearing deposits, of 177 bps incurred in the three months ended June 30, 2025 decreased 33 bps from 210 bps in the same period in the prior year. Overall, the cost of interest-bearing deposits decreased period over period by 51 bps, from a cost of 274 bps to 223 bps. The cost of borrowings decreased 39 bps from the second quarter of 2024 to the second quarter of 2025, from 5.13% to 4.74%.

 

 

__________________________________________________________________

1 See "Reconciliation of Certain Quarterly Non-GAAP Financial Measures" at the end of this release.

Page 2 of 10

 

 

Noninterest Income

Noninterest income for the three months ended June 30, 2025 decreased $380 thousand, or 22.5%, compared to the three months ended June 30, 2024, primarily as a result of lower wealth management fees, and lower fee income from deposit accounts and debit card usage.

Noninterest Expense

Noninterest expense for the three months ended June 30, 2025 increased by $559 thousand, or 6.9%, compared to the three months ended June 30, 2024. Increased franchise taxes and the cost of data processing and professional and legal fees for special projects drove increases during the quarter.

Efficiency Ratio

The Company's efficiency ratio (FTE)1 improved to 61.2% for the three months ended June 30, 2025 compared to 62.7% for the three months ended June 30, 2024, primarily due to increased net interest income (FTE)1. On a year-to-date basis, the efficiency ratio (FTE)1 improved to 61.8% in 2025 compared to 64.8% in 2024, also as a result of increased net interest income (FTE)1.

Income Taxes

The effective tax rates amounted to 21.9% and 18.3% for the three months ended June 30, 2025 and 2024, respectively. For each period, the effective income tax rate differed from the U.S. statutory rate of 21% due to the recognition of low-income housing tax credits net of the impact of the accounting change to proportional amortization in 2024, the effect of tax-exempt income from municipal bonds and income from bank owned life insurance policies.

Book Value

Book value per share increased to $31.67 as of June 30, 2025, compared to $28.70 as of June 30, 2024, and tangible book value per share (a non-GAAP financial measure)1 was $29.63 as of June 30, 2025 compared to $26.43 as of June 30, 2024. These values increased as net retained income increased and the impact of intangible assets declined due to the ongoing amortization of the Company's core deposit intangible asset.

Dividends

Cash dividends of $1.9 million, or $0.36 per share, were declared and paid during the second quarter of 2025. The remaining 54% of net income was retained.

 

_____________________________________________________________________

1 See "Reconciliation of Certain Quarterly Non-GAAP Financial Measures" at the end of this release.

 

Page 3 of 10

 

 

About Virginia National Bankshares Corporation

Virginia National Bankshares Corporation, headquartered in Charlottesville, Virginia, is the bank holding company for Virginia National Bank. The Bank has seven banking offices throughout Fauquier and Prince William counties, four banking offices in Charlottesville and Albemarle County (including one limited-service banking facility), and banking offices in Winchester and Richmond, Virginia. The Bank offers a full range of banking and related financial services to meet the needs of individuals, businesses and charitable organizations, including the fiduciary services of VNB Trust and Estate Services. The Company’s common stock trades on the Nasdaq Capital Market under the symbol “VABK.” Additional information on the Company is also available at www.vnbcorp.com.

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 to supplement the evaluation of the Company’s performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for, or more important than, operating results 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; Other Information

Certain statements in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, statements with respect to the Company’s operations, performance, future strategy and goals, and are often characterized by use of qualified words such as “expect,” “believe,” “estimate,” “project,” “anticipate,” “intend,” “will,” “should,” or words of similar meaning or other statements concerning the opinions or judgement of the Company and its management about future events. While Company management believes such statements to be reasonable, future events and predictions are subject to circumstances that are not within the control of the Company and its management. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, without limitation, the effects of and changes in: inflation, interest rates, market and monetary fluctuations; liquidity and capital requirements; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts or other major events, the governmental and societal responses thereto, or the prospect of these events; changes, particularly declines, in general economic and market conditions in the local economies in which the Company operates, including the effects of declines in real estate values; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; the impact of changes in laws, regulations and guidance related to financial services including, but not limited to, taxes, banking, securities and insurance; changes in accounting principles, policies and guidelines; the financial condition of the Company’s borrowers; the Company's ability to attract, hire, train and retain qualified employees; an increase in unemployment levels; competitive pressures on loan and deposit pricing and demand; fluctuation in asset quality; assumptions that underlie the Company’s ACL; the value of securities held in the Company's investment portfolio; performance of assets under management; cybersecurity threats or attacks and the development and maintenance of reliable electronic systems; changes in technology and their impact on the marketing of new products and services and the acceptance of these products and services by new and existing customers; the willingness of customers to substitute competitors’ products and services for the Company’s products and services; the risks and uncertainties described from time to time in the Company’s press releases and filings with the SEC; and the Company’s performance in managing the risks involved in any of the foregoing. Many of these factors and additional risks and uncertainties are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and other reports filed from time to time by the Company with the Securities and Exchange Commission. These statements speak only as of the date made, and the Company does not undertake to update any forward-looking statements to reflect changes or events that may occur after this release.

 

Page 4 of 10

 

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)

 

 

June 30, 2025

 

 

December 31, 2024*

 

 

June 30, 2024

 

 

(Unaudited)

 

 

 

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

$

5,999

 

 

$

5,311

 

 

$

8,785

 

Interest-bearing deposits in other banks

 

9,840

 

 

 

11,792

 

 

 

8,515

 

Federal funds sold

 

22,683

 

 

 

-

 

 

 

-

 

Securities:

 

 

 

 

 

 

 

 

Available for sale (AFS), at fair value

 

254,909

 

 

 

263,537

 

 

 

284,698

 

Restricted securities, at cost

 

8,120

 

 

 

6,193

 

 

 

6,667

 

Total securities

 

263,029

 

 

 

269,730

 

 

 

291,365

 

Loans, net of deferred fees and costs

 

1,241,712

 

 

 

1,235,969

 

 

 

1,158,214

 

Allowance for credit losses

 

(8,347

)

 

 

(8,455

)

 

 

(8,028

)

Loans, net

 

1,233,365

 

 

 

1,227,514

 

 

 

1,150,186

 

Premises and equipment, net

 

12,204

 

 

 

15,383

 

 

 

15,818

 

Bank owned life insurance

 

40,659

 

 

 

40,059

 

 

 

39,468

 

Goodwill

 

7,768

 

 

 

7,768

 

 

 

7,768

 

Core deposit intangible, net

 

3,213

 

 

 

3,792

 

 

 

4,418

 

Right of use asset, net

 

4,805

 

 

 

5,551

 

 

 

6,287

 

Deferred tax asset, net

 

14,084

 

 

 

15,407

 

 

 

15,860

 

Accrued interest receivable and other assets

 

15,046

 

 

 

14,519

 

 

 

25,350

 

Total assets

$

1,632,695

 

 

$

1,616,826

 

 

$

1,573,820

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Demand deposits:

 

 

 

 

 

 

 

 

Noninterest-bearing

$

384,538

 

 

$

374,079

 

 

$

357,931

 

Interest-bearing

 

266,012

 

 

 

303,405

 

 

 

257,365

 

Money market and savings deposit accounts

 

457,077

 

 

 

437,619

 

 

 

423,055

 

Certificates of deposit and other time deposits

 

281,438

 

 

 

308,443

 

 

 

335,490

 

Total deposits

 

1,389,065

 

 

 

1,423,546

 

 

 

1,373,841

 

Federal funds purchased

 

-

 

 

 

236

 

 

 

2,438

 

Borrowings

 

61,000

 

 

 

20,000

 

 

 

30,000

 

Junior subordinated debt, net

 

3,530

 

 

 

3,506

 

 

 

3,483

 

Lease liability

 

4,661

 

 

 

5,389

 

 

 

6,102

 

Accrued interest payable and other liabilities

 

3,667

 

 

 

3,847

 

 

 

3,792

 

Total liabilities

 

1,461,923

 

 

 

1,456,524

 

 

 

1,419,656

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $2.50 par value

 

-

 

 

 

-

 

 

 

-

 

Common stock, $2.50 par value

 

13,318

 

 

 

13,263

 

 

 

13,256

 

Capital surplus

 

106,834

 

 

 

106,394

 

 

 

105,935

 

Retained earnings

 

87,514

 

 

 

82,507

 

 

 

77,961

 

Accumulated other comprehensive loss

 

(36,894

)

 

 

(41,862

)

 

 

(42,988

)

Total shareholders' equity

 

170,772

 

 

 

160,302

 

 

 

154,164

 

Total liabilities and shareholders' equity

$

1,632,695

 

 

$

1,616,826

 

 

$

1,573,820

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

5,391,979

 

 

 

5,370,912

 

 

 

5,370,912

 

Common shares authorized

 

10,000,000

 

 

 

10,000,000

 

 

 

10,000,000

 

Preferred shares outstanding

 

-

 

 

 

-

 

 

 

-

 

Preferred shares authorized

 

2,000,000

 

 

 

2,000,000

 

 

 

2,000,000

 

* Derived from audited consolidated financial statements

Page 5 of 10

 

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)

(Unaudited)

 

 

For the three months ended

 

 

For the six months ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

June 30, 2025

 

 

June 30, 2024

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

17,330

 

 

$

16,242

 

 

$

34,363

 

 

$

31,903

 

Federal funds sold

 

 

64

 

 

 

160

 

 

 

248

 

 

 

399

 

Other interest-bearing deposits

 

 

45

 

 

 

58

 

 

 

87

 

 

 

115

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,265

 

 

 

1,776

 

 

 

2,574

 

 

 

3,935

 

Tax exempt

 

 

323

 

 

 

327

 

 

 

646

 

 

 

653

 

Dividends

 

 

109

 

 

 

100

 

 

 

224

 

 

 

218

 

Total interest and dividend income

 

 

19,136

 

 

 

18,663

 

 

 

38,142

 

 

 

37,223

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

67

 

 

 

68

 

 

 

136

 

 

 

139

 

Money market and savings deposits

 

 

2,927

 

 

 

2,952

 

 

 

5,930

 

 

 

5,874

 

Certificates and other time deposits

 

 

2,670

 

 

 

3,982

 

 

 

5,724

 

 

 

8,032

 

Borrowings

 

 

582

 

 

 

388

 

 

 

1,091

 

 

 

874

 

Federal funds purchased

 

 

18

 

 

 

9

 

 

 

25

 

 

 

16

 

Junior subordinated debt

 

 

76

 

 

 

83

 

 

 

146

 

 

 

171

 

Total interest expense

 

 

6,340

 

 

 

7,482

 

 

 

13,052

 

 

 

15,106

 

Net interest income

 

 

12,796

 

 

 

11,181

 

 

 

25,090

 

 

 

22,117

 

Provision for (recovery of) credit losses

 

 

3

 

 

 

(338

)

 

 

(157

)

 

 

(360

)

Net interest income after provision for (recovery of) credit losses

 

 

12,793

 

 

 

11,519

 

 

 

25,247

 

 

 

22,477

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Wealth management fees

 

 

206

 

 

 

240

 

 

 

435

 

 

 

666

 

Deposit account fees

 

 

293

 

 

 

338

 

 

 

600

 

 

 

725

 

Debit/credit card and ATM fees

 

 

355

 

 

 

523

 

 

 

725

 

 

 

1,011

 

Bank owned life insurance income

 

 

307

 

 

 

289

 

 

 

600

 

 

 

564

 

Gains (losses) on sales of assets, net

 

 

-

 

 

 

(3

)

 

 

278

 

 

 

36

 

Gain on early redemption of debt

 

 

-

 

 

 

-

 

 

 

-

 

 

 

379

 

Losses on sales of AFS, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4

)

Other

 

 

150

 

 

 

304

 

 

 

433

 

 

 

492

 

Total noninterest income

 

 

1,311

 

 

 

1,691

 

 

 

3,071

 

 

 

3,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

3,863

 

 

 

3,850

 

 

 

7,799

 

 

 

8,002

 

Net occupancy

 

 

889

 

 

 

865

 

 

 

1,905

 

 

 

1,837

 

Equipment

 

 

202

 

 

 

167

 

 

 

388

 

 

 

338

 

Bank franchise tax

 

 

489

 

 

 

345

 

 

 

828

 

 

 

685

 

Computer software

 

 

266

 

 

 

276

 

 

 

522

 

 

 

484

 

Data processing

 

 

732

 

 

 

579

 

 

 

1,467

 

 

 

1,318

 

FDIC deposit insurance assessment

 

 

145

 

 

 

180

 

 

 

290

 

 

 

375

 

Marketing, advertising and promotion

 

 

179

 

 

 

157

 

 

 

433

 

 

 

405

 

Professional fees

 

 

331

 

 

 

190

 

 

 

587

 

 

 

442

 

Legal fees

 

 

225

 

 

 

-

 

 

 

461

 

 

 

-

 

Core deposit intangible amortization

 

 

284

 

 

 

332

 

 

 

579

 

 

 

675

 

Other

 

 

1,076

 

 

 

1,181

 

 

 

2,246

 

 

 

2,380

 

Total noninterest expense

 

 

8,681

 

 

 

8,122

 

 

 

17,505

 

 

 

16,941

 

Income before income taxes

 

 

5,423

 

 

 

5,088

 

 

 

10,813

 

 

 

9,405

 

Provision for income taxes

 

 

1,185

 

 

 

929

 

 

 

2,086

 

 

 

1,600

 

Net income

 

$

4,238

 

 

$

4,159

 

 

$

8,727

 

 

$

7,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share, basic

 

$

0.79

 

 

$

0.77

 

 

$

1.62

 

 

$

1.45

 

Net income per common share, diluted

 

$

0.78

 

 

$

0.77

 

 

$

1.61

 

 

$

1.45

 

Weighted average common shares outstanding, basic

 

 

5,391,979

 

 

 

5,377,055

 

 

 

5,385,461

 

 

 

5,371,972

 

Weighted average common shares outstanding, diluted

 

 

5,417,900

 

 

 

5,385,770

 

 

 

5,410,394

 

 

 

5,382,980

 

 

Page 6 of 10

 

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)

(Unaudited)

 

 

At or For the Three Months Ended

 

 

 

June 30, 2025

 

 

March 31, 2025

 

 

December 31, 2024

 

 

September 30, 2024

 

 

June 30, 2024

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4,238

 

 

$

4,489

 

 

$

4,561

 

 

$

4,600

 

 

$

4,159

 

Net income per weighted average share, basic

 

$

0.79

 

 

$

0.83

 

 

$

0.85

 

 

$

0.86

 

 

$

0.77

 

Net income per weighted average share, diluted

 

$

0.78

 

 

$

0.83

 

 

$

0.85

 

 

$

0.85

 

 

$

0.77

 

Weighted average shares outstanding, basic

 

 

5,391,979

 

 

 

5,378,871

 

 

 

5,370,912

 

 

 

5,370,912

 

 

 

5,377,055

 

Weighted average shares outstanding, diluted

 

 

5,417,900

 

 

 

5,402,936

 

 

 

5,407,489

 

 

 

5,396,936

 

 

 

5,385,770

 

Actual shares outstanding

 

 

5,391,979

 

 

 

5,391,979

 

 

 

5,370,912

 

 

 

5,370,912

 

 

 

5,370,912

 

Tangible book value per share at period end 5

 

$

29.63

 

 

$

28.84

 

 

$

27.70

 

 

$

28.68

 

 

$

26.43

 

Key Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets 1

 

 

1.05

%

 

 

1.12

%

 

 

1.12

%

 

 

1.15

%

 

 

1.05

%

Return on average equity 1

 

 

10.05

%

 

 

11.05

%

 

 

10.98

%

 

 

11.44

%

 

 

11.07

%

Net interest margin (FTE) 1, 2

 

 

3.40

%

 

 

3.28

%

 

 

3.21

%

 

 

3.24

%

 

 

3.04

%

Efficiency ratio (FTE) 3

 

 

61.2

%

 

 

62.4

%

 

 

60.2

%

 

 

58.6

%

 

 

62.7

%

Loan-to-deposit ratio

 

 

89.4

%

 

 

86.6

%

 

 

86.8

%

 

 

88.1

%

 

 

84.3

%

Net Interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

12,796

 

 

$

12,295

 

 

$

12,235

 

 

$

12,024

 

 

$

11,181

 

Net interest income (FTE) 2

 

$

12,881

 

 

$

12,381

 

 

$

12,321

 

 

$

12,111

 

 

$

11,268

 

Company Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio 6

 

 

12.12

%

 

 

11.83

%

 

 

11.34

%

 

 

11.81

%

 

 

11.47

%

Total risk-based capital ratio 6

 

 

19.46

%

 

 

18.92

%

 

 

18.77

%

 

 

18.88

%

 

 

18.64

%

Assets and Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

1,521,345

 

 

$

1,529,575

 

 

$

1,526,464

 

 

$

1,487,182

 

 

$

1,491,821

 

Average gross loans

 

$

1,240,563

 

 

$

1,233,520

 

 

$

1,218,460

 

 

$

1,181,447

 

 

$

1,144,350

 

Fair value mark on acquired loans

 

$

5,724

 

 

$

6,242

 

 

$

6,785

 

 

$

7,301

 

 

$

8,237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

$

8,328

 

 

$

8,455

 

 

$

8,523

 

 

$

8,028

 

 

$

8,289

 

Provision for (recovery of) credit losses

 

 

90

 

 

 

(105

)

 

 

(208

)

 

 

(3

)

 

 

(518

)

Charge-offs

 

 

(111

)

 

 

(70

)

 

 

(127

)

 

 

(272

)

 

 

(208

)

Recoveries

 

 

40

 

 

 

48

 

 

 

267

 

 

 

770

 

 

 

465

 

Net (charge-offs) recoveries

 

 

(71

)

 

 

(22

)

 

 

140

 

 

 

498

 

 

 

257

 

End of period

 

$

8,347

 

 

$

8,328

 

 

$

8,455

 

 

$

8,523

 

 

$

8,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

$

2,614

 

 

$

2,764

 

 

$

2,267

 

 

$

2,113

 

 

$

2,365

 

Loans 90 days or more past due and still accruing

 

 

5,178

 

 

 

2,274

 

 

 

754

 

 

 

3,214

 

 

 

1,596

 

Total nonperforming assets (NPA) 4

 

$

7,792

 

 

$

5,038

 

 

$

3,021

 

 

$

5,327

 

 

$

3,961

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NPA as a % of total assets

 

 

0.48

%

 

 

0.31

%

 

 

0.19

%

 

 

0.33

%

 

 

0.25

%

NPA as a % of gross loans

 

 

0.63

%

 

 

0.41

%

 

 

0.24

%

 

 

0.44

%

 

 

0.34

%

ACL to gross loans

 

 

0.67

%

 

 

0.67

%

 

 

0.68

%

 

 

0.70

%

 

 

0.69

%

Non-accruing loans to gross loans

 

 

0.21

%

 

 

0.22

%

 

 

0.18

%

 

 

0.17

%

 

 

0.20

%

Net charge-offs (recoveries) to average loans 1

 

 

0.02

%

 

 

0.01

%

 

 

-0.05

%

 

 

-0.17

%

 

 

-0.09

%

1 Ratio is computed on an annualized basis.

2 The net interest margin and net interest income are reported on a fully tax-equivalent basis (FTE) basis, using a Federal income tax rate of 21%. This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.

3 The efficiency ratio (FTE) is computed as a percentage of noninterest expense divided by the sum of net interest income (FTE) and noninterest income. This is a non-GAAP financial measure that management believes provides investors with important information regarding operational efficiency. Management believes such financial information is meaningful to the reader in understanding operating performance, but cautions that such information should not be viewed as a substitute for GAAP. Comparison of our efficiency ratio with those of other companies may not be possible because other companies may calculate them differently. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.

4 The Bank held no other real estate owned during any of the periods presented.

5 This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.

6 All ratios at June 30, 2025 are estimates and subject to change pending regulatory filings. Ratios for prior periods are presented as filed.

Page 7 of 10

 

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)

(dollars in thousands)

(Unaudited)

 

 

 

For the three months ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

Average

 

 

Income/

 

 

Average

 

 

Average

 

 

Income/

 

 

Average

 

 

 

Balance

 

 

Expense

 

 

Yield/Cost

 

 

Balance

 

 

Expense

 

 

Yield/Cost

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Securities and Dividends

 

$

201,507

 

 

$

1,374

 

 

 

2.73

%

 

$

261,250

 

 

$

1,876

 

 

 

2.87

%

Tax Exempt Securities 1

 

 

65,347

 

 

 

408

 

 

 

2.50

%

 

 

66,463

 

 

 

414

 

 

 

2.49

%

Total Securities 1

 

 

266,854

 

 

 

1,782

 

 

 

2.67

%

 

 

327,713

 

 

 

2,290

 

 

 

2.80

%

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

 

953,504

 

 

 

13,773

 

 

 

5.79

%

 

 

900,581

 

 

 

12,483

 

 

 

5.57

%

Commercial

 

 

255,629

 

 

 

3,012

 

 

 

4.73

%

 

 

206,125

 

 

 

3,080

 

 

 

6.01

%

Consumer

 

 

31,430

 

 

 

545

 

 

 

6.96

%

 

 

37,644

 

 

 

679

 

 

 

7.25

%

      Total Loans

 

 

1,240,563

 

 

 

17,330

 

 

 

5.60

%

 

 

1,144,350

 

 

 

16,242

 

 

 

5.71

%

Federal funds sold

 

 

5,698

 

 

 

64

 

 

 

4.51

%

 

 

11,840

 

 

 

160

 

 

 

5.44

%

Other interest-bearing deposits

 

 

8,230

 

 

 

45

 

 

 

2.19

%

 

 

7,918

 

 

 

58

 

 

 

2.95

%

Total Earning Assets

 

 

1,521,345

 

 

 

19,221

 

 

 

5.07

%

 

 

1,491,821

 

 

 

18,750

 

 

 

5.06

%

Less: Allowance for Credit Losses

 

 

(8,338

)

 

 

 

 

 

 

 

 

(8,299

)

 

 

 

 

 

 

Total Non-Earning Assets

 

 

102,550

 

 

 

 

 

 

 

 

 

112,246

 

 

 

 

 

 

 

Total Assets

 

$

1,615,557

 

 

 

 

 

 

 

 

$

1,595,768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Checking

 

$

268,728

 

 

$

67

 

 

 

0.10

%

 

$

268,621

 

 

$

68

 

 

 

0.10

%

Money Market and Savings Deposits

 

 

464,058

 

 

 

2,927

 

 

 

2.53

%

 

 

421,700

 

 

 

2,952

 

 

 

2.82

%

Time Deposits

 

 

286,555

 

 

 

2,670

 

 

 

3.74

%

 

 

338,648

 

 

 

3,982

 

 

 

4.73

%

Total Interest-Bearing Deposits

 

 

1,019,341

 

 

 

5,664

 

 

 

2.23

%

 

 

1,028,969

 

 

 

7,002

 

 

 

2.74

%

Borrowings

 

 

49,275

 

 

 

582

 

 

 

4.74

%

 

 

30,407

 

 

 

388

 

 

 

5.13

%

Federal funds purchased

 

 

1,472

 

 

 

18

 

 

 

4.90

%

 

 

561

 

 

 

9

 

 

 

6.45

%

Junior subordinated debt

 

 

3,523

 

 

 

76

 

 

 

8.65

%

 

 

3,476

 

 

 

83

 

 

 

9.60

%

Total Interest-Bearing Liabilities

 

 

1,073,611

 

 

 

6,340

 

 

 

2.37

%

 

 

1,063,413

 

 

 

7,482

 

 

 

2.83

%

Non-Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

364,033

 

 

 

 

 

 

 

 

 

370,640

 

 

 

 

 

 

 

Other liabilities

 

 

8,790

 

 

 

 

 

 

 

 

 

10,545

 

 

 

 

 

 

 

Total Liabilities

 

 

1,446,434

 

 

 

 

 

 

 

 

 

1,444,598

 

 

 

 

 

 

 

Shareholders' Equity

 

 

169,123

 

 

 

 

 

 

 

 

 

151,170

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

1,615,557

 

 

 

 

 

 

 

 

$

1,595,768

 

 

 

 

 

 

 

Net Interest Income (FTE) 3

 

 

 

 

$

12,881

 

 

 

 

 

 

 

 

$

11,268

 

 

 

 

Interest Rate Spread 2

 

 

 

 

 

 

 

 

2.70

%

 

 

 

 

 

 

 

 

2.23

%

Cost of Funds

 

 

 

 

 

 

 

 

1.77

%

 

 

 

 

 

 

 

 

2.10

%

Interest Expense as a Percentage of
     Average Earning Assets

 

 

 

 

 

 

 

 

1.67

%

 

 

 

 

 

 

 

 

2.02

%

Net Interest Margin (FTE) 3

 

 

 

 

 

 

 

 

3.40

%

 

 

 

 

 

 

 

 

3.04

%

 

1 Tax-exempt income for investment securities has been adjusted to a fully tax-equivalent basis (FTE), using a Federal income tax rate of 21%.

Refer to the Reconcilement of Non-GAAP Measures table at the end of this release.

2 Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities.

3 Net interest margin (FTE) is net interest income expressed as a percentage of average earning assets. This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.

 

 

Page 8 of 10

 

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)

(dollars in thousands)

(Unaudited)

 

 

For the six months ended

 

 

 

June 30, 2025

 

 

June 30, 2024

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

Average

 

 

Income/

 

 

Average

 

 

Average

 

 

Income/

 

 

Average

 

 

 

Balance

 

 

Expense

 

 

Yield/Cost

 

 

Balance

 

 

Expense

 

 

Yield/Cost

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable Securities and Dividends

 

$

203,584

 

 

$

2,798

 

 

 

2.75

%

 

$

282,493

 

 

$

4,153

 

 

 

2.94

%

Tax Exempt Securities 1

 

 

65,572

 

 

 

818

 

 

 

2.49

%

 

 

66,526

 

 

 

827

 

 

 

2.49

%

Total Securities 1

 

 

269,156

 

 

 

3,616

 

 

 

2.69

%

 

 

349,019

 

 

 

4,980

 

 

 

2.85

%

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

 

950,191

 

 

 

27,160

 

 

 

5.76

%

 

 

903,033

 

 

 

25,026

 

 

 

5.57

%

Commercial

 

 

254,560

 

 

 

6,102

 

 

 

4.83

%

 

 

190,251

 

 

 

5,505

 

 

 

5.82

%

Consumer

 

 

32,310

 

 

 

1,101

 

 

 

6.87

%

 

 

37,676

 

 

 

1,372

 

 

 

7.32

%

      Total Loans

 

 

1,237,061

 

 

 

34,363

 

 

 

5.60

%

 

 

1,130,960

 

 

 

31,903

 

 

 

5.67

%

Federal Funds Sold

 

 

11,256

 

 

 

248

 

 

 

4.44

%

 

 

14,732

 

 

 

399

 

 

 

5.45

%

Other interest-bearing deposits

 

 

8,041

 

 

 

87

 

 

 

2.18

%

 

 

8,171

 

 

 

115

 

 

 

2.83

%

Total Earning Assets

 

 

1,525,514

 

 

 

38,314

 

 

 

5.06

%

 

 

1,502,882

 

 

 

37,397

 

 

 

5.00

%

Less: Allowance for Credit Losses

 

 

(8,416

)

 

 

 

 

 

 

 

 

(8,356

)

 

 

 

 

 

 

Total Non-Earning Assets

 

 

105,321

 

 

 

 

 

 

 

 

 

111,045

 

 

 

 

 

 

 

Total Assets

 

$

1,622,419

 

 

 

 

 

 

 

 

$

1,605,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Checking

 

$

271,736

 

 

$

136

 

 

 

0.10

%

 

$

275,723

 

 

$

139

 

 

 

0.10

%

Money Market and Savings Deposits

 

 

464,231

 

 

 

5,930

 

 

 

2.58

%

 

 

416,837

 

 

 

5,874

 

 

 

2.83

%

Time Deposits

 

 

296,388

 

 

 

5,724

 

 

 

3.89

%

 

 

339,866

 

 

 

8,032

 

 

 

4.75

%

Total Interest-Bearing Deposits

 

 

1,032,355

 

 

 

11,790

 

 

 

2.30

%

 

 

1,032,426

 

 

 

14,045

 

 

 

2.74

%

Borrowings

 

 

46,038

 

 

 

1,091

 

 

 

4.78

%

 

 

36,280

 

 

 

874

 

 

 

4.84

%

Federal funds purchased

 

 

1,017

 

 

 

25

 

 

 

4.96

%

 

 

528

 

 

 

16

 

 

 

6.09

%

Junior subordinated debt

 

 

3,517

 

 

 

146

 

 

 

8.37

%

 

 

3,470

 

 

 

171

 

 

 

9.91

%

Total Interest-Bearing Liabilities

 

 

1,082,927

 

 

 

13,052

 

 

 

2.43

%

 

 

1,072,704

 

 

 

15,106

 

 

 

2.83

%

Non-Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

363,198

 

 

 

 

 

 

 

 

 

369,588

 

 

 

 

 

 

 

Other liabilities

 

 

9,328

 

 

 

 

 

 

 

 

 

11,041

 

 

 

 

 

 

 

Total Liabilities

 

 

1,455,453

 

 

 

 

 

 

 

 

 

1,453,333

 

 

 

 

 

 

 

Shareholders' Equity

 

 

166,966

 

 

 

 

 

 

 

 

 

152,238

 

 

 

 

 

 

 

Total Liabilities & Shareholders' Equity

 

$

1,622,419

 

 

 

 

 

 

 

 

$

1,605,571

 

 

 

 

 

 

 

Net Interest Income (FTE) 3

 

 

 

 

$

25,262

 

 

 

 

 

 

 

 

$

22,291

 

 

 

 

Interest Rate Spread 2

 

 

 

 

 

 

 

 

2.63

%

 

 

 

 

 

 

 

 

2.17

%

Cost of Funds

 

 

 

 

 

 

 

 

1.82

%

 

 

 

 

 

 

 

 

2.11

%

Interest Expense as a Percentage of
     Average Earning Assets

 

 

 

 

 

 

 

 

1.73

%

 

 

 

 

 

 

 

 

2.02

%

Net Interest Margin (FTE) 3

 

 

 

 

 

 

 

 

3.34

%

 

 

 

 

 

 

 

 

2.98

%

 

1 Tax-exempt income for investment securities has been adjusted to a fully tax-equivalent basis (FTE), using a Federal income tax rate of 21%. Refer to the Reconcilement of Non-GAAP Measures table at the end of this release.

2 Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities.

3 Net interest margin (FTE) is net interest income expressed as a percentage of average earning assets. This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.

4 Ratio is computed on an annualized basis.

 

 

 

 

 

 

 

 

Page 9 of 10

 

 

 

 

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

RECONCILIATION OF CERTAIN QUARTERLY NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

(Unaudited)

 

 

 

 

For the Three Months Ended

 

 

 

June 30, 2025

 

 

March 31, 2025

 

 

December 31, 2024

 

 

September 30, 2024

 

 

June 30, 2024

 

Fully tax-equivalent measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

12,796

 

 

$

12,295

 

 

$

12,235

 

 

$

12,024

 

 

$

11,181

 

Fully tax-equivalent adjustment

 

 

85

 

 

 

86

 

 

 

86

 

 

 

87

 

 

 

87

 

Net interest income (FTE) 1

 

$

12,881

 

 

$

12,381

 

 

$

12,321

 

 

$

12,111

 

 

$

11,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio 2

 

 

61.5

%

 

 

62.8

%

 

 

60.6

%

 

 

58.9

%

 

 

63.1

%

Fully tax-equivalent adjustment

 

 

-0.3

%

 

 

-0.4

%

 

 

-0.4

%

 

 

-0.3

%

 

 

-0.4

%

Efficiency ratio (FTE) 3

 

 

61.2

%

 

 

62.4

%

 

 

60.2

%

 

 

58.6

%

 

 

62.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

3.37

%

 

 

3.26

%

 

 

3.19

%

 

 

3.22

%

 

 

3.01

%

Fully tax-equivalent adjustment

 

 

0.03

%

 

 

0.02

%

 

 

0.02

%

 

 

0.02

%

 

 

0.03

%

Net interest margin (FTE) 1

 

 

3.40

%

 

 

3.28

%

 

 

3.21

%

 

 

3.24

%

 

 

3.04

%

 

 

 

 

As of

 

 

 

June 30, 2025

 

 

March 31, 2025

 

 

December 31, 2024

 

 

September 30, 2024

 

 

June 30, 2024

 

Other financial measures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

31.67

 

 

$

30.93

 

 

$

29.85

 

 

$

30.89

 

 

$

28.70

 

Impact of intangible assets 4

 

 

(2.04

)

 

 

(2.09

)

 

 

(2.15

)

 

 

(2.21

)

 

 

(2.27

)

Tangible book value per share (non-GAAP)

 

$

29.63

 

 

$

28.84

 

 

$

27.70

 

 

$

28.68

 

 

$

26.43

 

 

 

 

 

For the Six Months Ended

 

 

 

June 30,
2025

 

 

June 30,
2024

 

Fully tax-equivalent measures

 

 

 

 

 

 

Net interest income

 

$

25,090

 

 

$

22,117

 

Fully tax-equivalent adjustment

 

 

172

 

 

 

174

 

Net interest income (FTE) 1

 

$

25,262

 

 

$

22,291

 

 

 

 

 

 

 

Efficiency ratio 2

 

 

62.2

%

 

 

65.2

%

Fully tax-equivalent adjustment

 

 

-0.4

%

 

 

-0.4

%

Efficiency ratio (FTE) 3

 

 

61.8

%

 

 

64.8

%

 

 

 

 

 

 

Net interest margin

 

 

3.32

%

 

 

2.96

%

Fully tax-equivalent adjustment

 

 

0.02

%

 

 

0.02

%

Net interest margin (FTE) 1

 

 

3.34

%

 

 

2.98

%

 

 

1 FTE calculations use a Federal income tax rate of 21%.

2 The efficiency ratio, GAAP basis, is computed by dividing noninterest expense by the sum of net interest income and noninterest income.

3 The efficiency ratio, FTE, is computed by dividing noninterest expense by the sum of net interest income (FTE) and noninterest income.

4 Intangible assets include goodwill and core deposit intangible assets, net of accumulated amortization, for all periods presented.

Page 10 of 10