Segment Reporting

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

Note 20 – Segment Reporting

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

The Bank's commercial banking activities involve making loans and generating deposits from individuals and businesses. Loan fee income, service charges from deposit accounts, and other non-interest-related revenue such as fees for debit cards and ATM usage and fees for treasury management services generate additional income for this segment.

The VNB Wealth segment includes investment management, wealth advisory and trust and estate services offered by VNBTrust. Income from the VNB Wealth segment 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 years ended December 31, 2015 and December 31, 2014, management fees of $135,000 and $250,000, 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 as of, and for the years ended, December 31, 2015 and 2014, is shown in the following tables:

2015	Bank		VNB Wealth			Consolidated
Net interest income	$	16,281	$	27		$	16,308
Provision for loan losses		463		-			463
Non-interest income		3,015		1,856			4,871
Non-interest expense		13,463		2,935			16,398
Income (loss) before income taxes		5,370		(1,052	)		4,318
Provision for (benefit of) income taxes		1,550		(353	)		1,197
Net income (loss)	$	3,820	$	(699	)	$	3,121
Total assets	$	557,685	$	9,806		$	567,491
2014	Bank		VNB Wealth			Consolidated
Net interest income	$	14,422	$	32		$	14,454
Provision for loan losses		306		-			306
Non-interest income		2,614		2,983			5,597
Non-interest expense		14,576		2,815			17,391
Income before income taxes		2,154		200			2,354
Provision for income taxes		383		73			456
Net income	$	1,771	$	127		$	1,898
Total assets	$	526,458	$	10,595		$	537,053