Segment Reporting

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

Note 9. Segment Reporting

Virginia National Bankshares Corporation has two reportable segments, the Bank and VNB Wealth.

Commercial banking involves making loans and generating deposits from individuals and businesses. Loan fee income, service charges from deposit accounts, and other non-interest-related fees such as fees for debit cards and ATM usage and fees for treasury management services generate additional income for this segment.

VNB Wealth services include investment management, trust and estate administration, advisory, and brokerage services. Income is primarily derived from two forms of fee income: management fees and performance fees. A management fee for administrative and technology support services provided by the Bank is charged to VNB Wealth. For the nine months ended September 30, 2015 and September 30, 2014, management fees of $101 thousand and $188 thousand, respectively, were charged to VNB Wealth and eliminated in consolidated totals. The VNB Wealth total assets as shown in the following tables represent the assets of VNB Wealth and should not be confused with client assets under management.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies.

Segment information for the three and nine months ended September 30, 2015 and 2014 is shown in the following tables (dollars in thousands):

Three months ended September 30, 2015	Bank			VNB Wealth			Consolidated
Net interest income	$	4,170		$	6		$	4,176
Provision for loan losses		88			-			88
Noninterest income		761			461			1,222
Noninterest expense		3,419			725			4,144
Income (loss) before income taxes		1,424			(258	)		1,166
Provision for (benefit of) income taxes		414			(87	)		327
Net income (loss)	$	1,010		$	(171	)	$	839
Total assets	$	538,836		$	9,937		$	548,773
Three months ended September 30, 2014	Bank			VNB Wealth			Consolidated
Net interest income	$	3,570		$	7		$	3,577
Provision for loan losses		-			-			-
Noninterest income		667			488			1,155
Noninterest expense		3,572			684			4,256
Income (loss) before income taxes		665			(189	)		476
Provision for (benefit of) income taxes		158			(64	)		94
Net income (loss)	$	507		$	(125	)	$	382
Total assets	$	498,061		$	9,950		$	508,011
Nine months ended September 30, 2015	Bank			VNB Wealth			Consolidated
Net interest income	$	11,910		$	19		$	11,929
Provision for loan losses		405			-			405
Noninterest income		2,225			1,436			3,661
Noninterest expense		10,213			2,224			12,437
Income (loss) before income taxes		3,517			(769	)		2,748
Provision for (benefit of) income taxes		986			(259	)		727
Net income (loss)	$	2,531		$	(510	)	$	2,021
Total assets	$	538,836		$	9,937		$	548,773
Nine months ended September 30, 2014	Bank			VNB Wealth			Consolidated
Net interest income	$	10,771		$	26		$	10,797
Provision for (recovery of) loan losses		(118	)		-			(118	)
Noninterest income		1,874			1,508			3,382
Noninterest expense		10,667			2,028			12,695
Income (loss) before income taxes		2,096			(494	)		1,602
Provision for (benefit of) income taxes		435			(166	)		269
Net income (loss)	$	1,661		$	(328	)	$	1,333
Total assets	$	498,061		$	9,950		$	508,011