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 June30, 2025, compared to $4.2 million, or $0.77 per diluted share, recognized for the quarter ended June30, 2024. For the six months ended June30, 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 June30, 2024.
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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.
— 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;
— 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.
— 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.
— 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.
Noninterest Income
Noninterest income for the three months ended June30, 2025 decreased $380 thousand, or 22.5%, compared to the three months ended June30, 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 June30, 2025 increased by $559 thousand, or 6.9%, compared to the three months ended June30, 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 June30, 2025 compared to 62.7% for the three months ended June30, 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 June30, 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 June30, 2025, compared to $28.70 as of June30, 2024, and tangible book value per share (a non-GAAP financial measure)1 was $29.63 as of June30, 2025 compared to $26.43 as of June30, 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.
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.
VIRGINIA NATIONALBANKSHARESCORPORATIONCONSOLIDATED BALANCE SHEETS(dollars in thousands, except per share data) June30, 2025 December 31, 2024* June30, 2024 (Unaudited) (Unaudited)ASSETSCash and due from banks $ 5,999 $ 5,311 $ 8,785Interest-bearing deposits in other banks 9,840 11,792 8,515Federal funds sold 22,683 – -Securities:Available for sale (AFS), at fair value 254,909 263,537 284,698Restricted securities, at cost 8,120 6,193 6,667Total securities 263,029 269,730 291,365Loans, net of deferred fees and costs 1,241,712 1,235,969 1,158,214Allowance for credit losses (8,347) (8,455) (8,028)Loans, net 1,233,365 1,227,514 1,150,186Premises and equipment, net 12,204 15,383 15,818Bank owned life insurance 40,659 40,059 39,468Goodwill 7,768 7,768 7,768Core deposit intangible, net 3,213 3,792 4,418Right of use asset, net 4,805 5,551 6,287Deferred tax asset, net 14,084 15,407 15,860Accrued interest receivable and other assets 15,046 14,519 25,350Total assets $ 1,632,695 $ 1,616,826 $ 1,573,820LIABILITIES AND SHAREHOLDERS' EQUITYLiabilities:Demand deposits:Noninterest-bearing $ 384,538 $ 374,079 $ 357,931Interest-bearing 266,012 303,405 257,365Money market and savings deposit accounts 457,077 437,619 423,055Certificates of deposit and other time deposits 281,438 308,443 335,490Total deposits 1,389,065 1,423,546 1,373,841Federal funds purchased – 236 2,438Borrowings 61,000 20,000 30,000Junior subordinated debt, net 3,530 3,506 3,483Lease liability 4,661 5,389 6,102Accrued interest payable and other liabilities 3,667 3,847 3,792Total liabilities 1,461,923 1,456,524 1,419,656Commitments and contingent liabilitiesShareholders' equity:Preferred stock, $2.50 par value – – -Common stock, $2.50 par value 13,318 13,263 13,256Capital surplus 106,834 106,394 105,935Retained earnings 87,514 82,507 77,961Accumulated other comprehensive loss (36,894) (41,862) (42,988)Total shareholders' equity 170,772 160,302 154,164Total liabilities and shareholders' equity $ 1,632,695 $ 1,616,826 $ 1,573,820Common shares outstanding 5,391,979 5,370,912 5,370,912Common shares authorized 10,000,000 10,000,000 10,000,000Preferred shares outstanding – – -Preferred shares authorized 2,000,000 2,000,000 2,000,000
* Derived from audited consolidated financial statements
VIRGINIA NATIONALBANKSHARESCORPORATIONCONSOLIDATED STATEMENTS OF INCOME(dollars in thousands, except per share data)(Unaudited) For the three months ended For the six months ended June30, 2025 June30, 2024 June30, 2025 June30, 2024Interest and dividend income:Loans, including fees $ 17,330 $ 16,242 $ 34,363 $ 31,903Federal funds sold 64 160 248 399Other interest-bearing deposits 45 58 87 115Investment securities:Taxable 1,265 1,776 2,574 3,935Tax exempt 323 327 646 653Dividends 109 100 224 218Total interest and dividend income 19,136 18,663 38,142 37,223Interest expense:Demand deposits 67 68 136 139Money market and savings deposits 2,927 2,952 5,930 5,874Certificates and other time deposits 2,670 3,982 5,724 8,032Borrowings 582 388 1,091 874Federal funds purchased 18 9 25 16Junior subordinated debt 76 83 146 171Total interest expense 6,340 7,482 13,052 15,106Net interest income 12,796 11,181 25,090 22,117Provision 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 22,477Noninterest income:Wealth management fees 206 240 435 666Deposit account fees 293 338 600 725Debit/credit card and ATM fees 355 523 725 1,011Bank owned life insurance income 307 289 600 564Gains (losses) on sales of assets, net – (3) 278 36Gain on early redemption of debt – – – 379Losses on sales of AFS, net – – – (4)Other 150 304 433 492Total noninterest income 1,311 1,691 3,071 3,869Noninterest expense:Salaries and employee benefits 3,863 3,850 7,799 8,002Net occupancy 889 865 1,905 1,837Equipment 202 167 388 338Bank franchise tax 489 345 828 685Computer software 266 276 522 484Data processing 732 579 1,467 1,318FDIC deposit insurance assessment 145 180 290 375Marketing, advertising and promotion 179 157 433 405Professional fees 331 190 587 442Legal fees 225 – 461 -Core deposit intangible amortization 284 332 579 675Other 1,076 1,181 2,246 2,380Total noninterest expense 8,681 8,122 17,505 16,941Income before income taxes 5,423 5,088 10,813 9,405Provision for income taxes 1,185 929 2,086 1,600Net income $ 4,238 $ 4,159 $ 8,727 $ 7,805Net income per common share, basic $ 0.79 $ 0.77 $ 1.62 $ 1.45Net income per common share, diluted $ 0.78 $ 0.77 $ 1.61 $ 1.45Weighted average common shares outstanding, basic 5,391,979 5,377,055 5,385,461 5,371,972Weighted average common shares outstanding, diluted 5,417,900 5,385,770 5,410,394 5,382,980
VIRGINIA NATIONALBANKSHARESCORPORATIONFINANCIAL 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, 2024Common Share Data:Net income $ 4,238 $ 4,489 $ 4,561 $ 4,600 $ 4,159Net income per weighted average share, basic $ 0.79 $ 0.83 $ 0.85 $ 0.86 $ 0.77Net income per weighted average share, diluted $ 0.78 $ 0.83 $ 0.85 $ 0.85 $ 0.77Weighted average shares outstanding, basic 5,391,979 5,378,871 5,370,912 5,370,912 5,377,055Weighted average shares outstanding, diluted 5,417,900 5,402,936 5,407,489 5,396,936 5,385,770Actual shares outstanding 5,391,979 5,391,979 5,370,912 5,370,912 5,370,912Tangible book value per share at period end 5 $ 29.63 $ 28.84 $ 27.70 $ 28.68 $ 26.43Key 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 $ 11,181Net interest income (FTE) 2 $ 12,881 $ 12,381 $ 12,321 $ 12,111 $ 11,268Company 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 $ 1,491,821Average gross loans $ 1,240,563 $ 1,233,520 $ 1,218,460 $ 1,181,447 $ 1,144,350Fair value mark on acquired loans $ 5,724 $ 6,242 $ 6,785 $ 7,301 $ 8,237Allowance for credit losses on loans:Beginning of period $ 8,328 $ 8,455 $ 8,523 $ 8,028 $ 8,289Provision for (recovery of) credit losses 90 (105) (208) (3) (518)Charge-offs (111) (70) (127) (272) (208)Recoveries 40 48 267 770 465Net (charge-offs) recoveries (71) (22) 140 498 257End of period $ 8,347 $ 8,328 $ 8,455 $ 8,523 $ 8,028Non-accrual loans $ 2,614 $ 2,764 $ 2,267 $ 2,113 $ 2,365Loans 90 days or more past due and still accruing 5,178 2,274 754 3,214 1,596Total nonperforming assets (NPA) 4 $ 7,792 $ 5,038 $ 3,021 $ 5,327 $ 3,961NPA 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.
VIRGINIA NATIONALBANKSHARESCORPORATIONAVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)(dollars in thousands)(Unaudited) For the three months ended June30, 2025 June30, 2024 Interest Interest Average Income/ Average Average Income/ Average Balance Expense Yield/Cost Balance Expense Yield/CostASSETSInterest 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 102,550 112,246Total Assets $ 1,615,557 $ 1,595,768LIABILITIES AND SHAREHOLDERS' EQUITYInterest 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 364,033 370,640Other liabilities 8,790 10,545Total Liabilities 1,446,434 1,444,598Shareholders' Equity 169,123 151,170Total Liabilities & Shareholders' Equity $ 1,615,557 $ 1,595,768Net Interest Income (FTE) 3 $ 12,881 $ 11,268Interest Rate Spread 2 2.70 % 2.23 %Cost of Funds 1.77 % 2.10 %Interest Expense as a Percentage of 1.67 % 2.02 %Average Earning AssetsNet 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.
VIRGINIA NATIONALBANKSHARESCORPORATIONAVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)(dollars in thousands)(Unaudited) For the six months ended June30, 2025 June 30, 2024 Interest Interest Average Income/ Average Average Income/ Average Balance Expense Yield/Cost Balance Expense Yield/CostASSETSInterest 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 105,321 111,045Total Assets $ 1,622,419 $ 1,605,571LIABILITIES AND SHAREHOLDERS' EQUITYInterest 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 363,198 369,588Other liabilities 9,328 11,041Total Liabilities 1,455,453 1,453,333Shareholders' Equity 166,966 152,238Total Liabilities & Shareholders' Equity $ 1,622,419 $ 1,605,571Net Interest Income (FTE) 3 $ 25,262 $ 22,291Interest Rate Spread 2 2.63 % 2.17 %Cost of Funds 1.82 % 2.11 %Interest Expense as a Percentage of 1.73 % 2.02 %Average Earning AssetsNet 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.
VIRGINIA NATIONALBANKSHARESCORPORATIONRECONCILIATION OF CERTAIN QUARTERLY NON-GAAP FINANCIAL MEASURES(dollars in thousands, except per share data)(Unaudited) For the Three Months Ended June30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Fully tax-equivalent measuresNet interest income $ 12,796 $ 12,295 $ 12,235 $ 12,024 $ 11,181Fully tax-equivalent adjustment 85 86 86 87 87Net interest income (FTE) 1 $ 12,881 $ 12,381 $ 12,321 $ 12,111 $ 11,268Efficiency 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 June30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Other financial measuresBook value per share $ 31.67 $ 30.93 $ 29.85 $ 30.89 $ 28.70Impact 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 June30, June30, 2025 2024Fully tax-equivalent measuresNet interest income $ 25,090 $ 22,117Fully tax-equivalent adjustment 172 174Net interest income (FTE) 1 $ 25,262 $ 22,291Efficiency 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.
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