Virginia NationalBankshares Corporation (NASDAQ: VABK) (the “Company”) today reported quarterly net income of $4.6 million, or $0.84 per diluted share, for the quarter ended September30, 2025, compared to the $4.6 million, or $0.85 per diluted share, recognized for the quarter ended September30, 2024. For the nine months ended September30, 2025, the Company recognized net income of $13.3 million, or $2.45 per diluted share, compared to $12.4 million, or $2.30 per diluted share, for the nine months ended September30, 2024.
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The increase in 2025 year-to-date net income as compared to the prior year was primarily the result of decreased interest expense, as a result of the reduction in cost of funds associated with deposits and borrowings. Cost of funds declined 30 bps year-over-year while yields on earning assets held steady despite several reductions in the prime rate.
Dividend Declaration
On October 22, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock payable on November 28, 2025, to the holders of record at the close of business on November 14, 2025. The quarterly cash dividend represents an annual yield to shareholders of approximately 3.63% based on the closing price of the Company's common stock on October 22, 2025.
President and Chief Executive Officer's comments: “I am pleased to report that the key performance indicators that we monitor closely, return on average assets, return on average equity, net interest margin and the efficiency ratio, all improved over the last quarter” stated Glenn W. Rust, President and Chief Executive Officer. “While our loan balances slightly declined during the most recent quarter, we continued our focus on strong credit standards which continues to bode well for our organization.”
Key Performance Indicators Third quarter 2025 compared to second quarter 2025
— Return on average assets improved to 1.12%. from 1.05%.
— Return on average equity improved to 10.48% from 10.05%.
— Net interest margin (FTE)1 improved to 3.43% from 3.40%.
— Loan-to-deposit ratio remained stable at 89%.
— Efficiency ratio (FTE)1 improved to 57.9% from 61.2%.
September 30, 2025 Balance Sheet Highlights
— Gross loans outstanding as of September 30, 2025 totaled $1.2 billion, an increase of $19.5 million, or 1.6% compared to September 30, 2024. The Company experienced nominal loan contraction in the third quarter of 2025, with gross loan balances decreasing $1.0 million from year-end.
— Deposit balances increased $5.0 million or 0.4% from September 30, 2024, yet decreased $38.7 million since December 31, 2024. This decline, as highlighted in our second quarter release, facilitated the efforts to stabilize the overall cost of funds through changes in the mix of cost components.
— Securities balances declined $27.5 million from September 30, 2024 to September 30, 2025 as the Company continued to book loans at more attractive yields and reduce higher cost borrowings.
— 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 $145.2 million as of September 30, 2025, $166.6 million as of December 31, 2024 and $145.6 million as of September 30, 2024.
— Outstanding borrowings from the FHLB as of September 30, 2025 decreased $22.5 million from $52.5 million at September 30, 2024 and increased by $10.0 million from December 31, 2024.
— As of September 30, 2025, the Company had unused borrowing facilities in place of approximately $223.0 million and held no brokered deposits.
Loans and Asset Quality
— Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.42% as of September 30, 2025, 0.19% as of December 31, 2024 and 0.33% as of September 30, 2024.
— Nonperforming assets amounted to $6.8 million as of September 30, 2025, compared to $3.0 million as of December 31, 2024 and $5.3 million as of September 30, 2024;
— Fourteen loans to thirteen borrowers are in non-accrual status, totaling $2.6 million, as of September 30, 2025, compared to $2.3 million as of December 31, 2024 and $2.1 million as of September 30, 2024.
— Loans 90 days or more past due and still accruing interest amounted to $4.2 million as of September 30, 2025, compared to $754 thousand as of December 31, 2024 and $3.2 million as of September 30, 2024. The past due balance as of September 30, 2025 is comprised of four loans totaling $4.0 million which are 100% government-guaranteed, two loans secured by residential real estate totaling $158 thousand and five student loans totaling $62 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 0.69% as of September 30, 2025, 0.68% as of December 31, 2024 and 0.70% as of September 30, 2024. The individual differences in the balances of various pools as well as changing loss rates have 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 $5.2 million as of September 30, 2025.
— For the three months ended September 30, 2025, the Company recorded a net charge to the provision for credit losses of $332 thousand, due primarily to changes in loss factors, as a result of a routine annual loss driver analysis, considered in the quantitative portion of the calculation. The provision includes a $78 thousand charge for changes in unfunded reserves, as a result of changes in unfunded loan commitments and application of the aforementioned changes in quantitative factors.
Net Interest Income
— Net interest income for the three months ended September 30, 2025 of $13.1 million increased $1.0 million, or 8.7%, compared to the three months ended September 30, 2024, predominantly due to decreased interest expense associated with deposit accounts, coupled with increased interest income earned on loans and federal funds sold driving an additional net increase.
— Net interest margin (FTE), (a non-GAAP financial measure)1, for the three months ended September 30, 2025 was 3.43%, compared to 3.24% for the three months ended September 30, 2024. The increase as compared to the third quarter of 2024 was primarily due to the decrease in cost of funds, as described below.
— The Bank's yield on loans was 5.64% for the three months ended September 30, 2025, compared to 5.85% for the prior year same period. The accretion of the fair value mark related to purchased loans positively impacted interest income by 13 bps in the third quarter of 2025, compared to 25 bps in the third quarter of 2024.
— The overall cost of funds, including noninterest-bearing deposits, of 177 bps incurred in the three months ended September 30, 2025 decreased 30 bps from 207 bps in the same period in the prior year. Overall, the cost of interest-bearing deposits decreased period over period by 45 bps, from a cost of 2.71% to 2.26%. The cost of borrowings from the FHLB decreased 9 bps from the third quarter of 2024 to the third quarter of 2025, from 4.86% to 4.77%.
__________________________________________________________________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 September30, 2025 decreased $101 thousand, or 7.0%, compared to the three months ended September30, 2024, primarily as a result of lower wealth management fees, and lower fee income from debit card usage.
Noninterest Expense
Noninterest expense for the three months ended September30, 2025 increased by $461 thousand, or 5.8%, compared to the three months ended September30, 2024. Increased franchise taxes, FDIC insurance expense, professional fees and continued investments in information technology drove increases during the quarter.
Efficiency Ratio
The Company's efficiency ratio (FTE)1 improved to 57.9% for the three months ended September30, 2025 compared to 58.6% for the three months ended September30, 2024, as the impact of increased net interest income (FTE)1 more than offset the decrease in noninterest income and increase in noninterest expense on a proportional basis. On a year-to-date basis, the efficiency ratio (FTE)1 improved to 60.5% in 2025 compared to 62.6% in 2024, also as a result of increased net interest income (FTE)1.
Income Taxes
The effective tax rates amounted to 19.5% and 18.5% for the three months ended September30, 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 $32.89 as of September30, 2025, compared to $30.89 as of September30, 2024, and tangible book value per share (a non-GAAP financial measure)1 was $30.90 as of September30, 2025 compared to $28.68as of September30, 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 third quarter of 2025. The remaining 58% 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) September30, 2025 December 31, 2024* September30, 2024 (Unaudited) (Unaudited)ASSETSCash and due from banks $ 6,166 $ 5,311 $ 10,188Interest-bearing deposits in other banks 8,965 11,792 8,977Federal funds sold 7,964 – -Securities:Available for sale (AFS), at fair value 252,952 263,537 279,323Restricted securities, at cost 6,647 6,193 7,737Total securities 259,599 269,730 287,060Loans, net of deferred fees and costs 1,235,000 1,235,969 1,215,512Allowance for credit losses (8,510) (8,455) (8,523)Loans, net 1,226,490 1,227,514 1,206,989Premises and equipment, net 11,775 15,383 15,562Bank owned life insurance 40,977 40,059 39,762Goodwill 7,768 7,768 7,768Core deposit intangible, net 2,942 3,792 4,099Right of use asset, net 6,666 5,551 5,921Deferred tax asset, net 13,097 15,407 13,548Accrued interest receivable and other assets 14,023 14,519 14,906Total assets $ 1,606,432 $ 1,616,826 $ 1,614,780LIABILITIES AND SHAREHOLDERS' EQUITYLiabilities:Demand deposits:Noninterest-bearing $ 361,568 $ 374,079 $ 359,900Interest-bearing 260,424 303,405 258,439Money market and savings deposit accounts 460,160 437,619 431,707Certificates of deposit and other time deposits 302,736 308,443 329,857Total deposits 1,384,888 1,423,546 1,379,903Federal funds purchased – 236 3,112Borrowings 30,000 20,000 52,500Junior subordinated debt, net 3,542 3,506 3,495Lease liability 6,542 5,389 5,748Accrued interest payable and other liabilities 4,101 3,847 4,113Total liabilities 1,429,073 1,456,524 1,448,871Commitments and contingent liabilitiesShareholders' equity:Preferred stock, $2.50 par value – – -Common stock, $2.50 par value 13,318 13,263 13,257Capital surplus 107,076 106,394 106,166Retained earnings 90,149 82,507 80,789Accumulated other comprehensive loss (33,184) (41,862) (34,303)Total shareholders' equity 177,359 160,302 165,909Total liabilities and shareholders' equity $ 1,606,432 $ 1,616,826 $ 1,614,780Common 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 nine months ended September30, September30, September30, September30, 2025 2024 2025 2024Interest and dividend income:Loans, including fees $ 17,500 $ 17,378 $ 51,864 $ 49,281Federal funds sold 283 136 530 535Other interest-bearing deposits 55 50 142 165Investment securities:Taxable 1,199 1,414 3,773 5,349Tax exempt 322 326 968 979Dividends 112 102 336 320Total interest and dividend income 19,471 19,406 57,613 56,629Interest expense:Demand deposits 66 66 202 205Money market and savings deposits 3,026 2,990 8,957 8,864Certificates and other time deposits 2,713 3,915 8,437 11,947Borrowings 513 313 1,604 1,187Federal funds purchased 3 9 28 25Junior subordinated debt 78 89 224 260Total interest expense 6,399 7,382 19,452 22,488Net interest income 13,072 12,024 38,161 34,141Provision for (recovery of) credit losses 332 (114) 174 (474)Net interest income after provision for (recovery of) credit losses 12,740 12,138 37,987 34,615Noninterest income:Wealth management fees 223 239 658 905Deposit account fees 323 317 922 1,042Debit/credit card and ATM fees 340 474 1,065 1,485Bank owned life insurance income 318 294 918 858Gains on sales of assets, net – – 278 36Gain on early redemption of debt – – – 379Losses on sales of AFS, net – – – (4)Other 147 128 580 620Total noninterest income 1,351 1,452 4,421 5,321Noninterest expense:Salaries and employee benefits 3,909 3,769 11,708 11,771Net occupancy 872 919 2,777 2,756Equipment 182 176 569 514Bank franchise tax 439 366 1,266 1,051Computer software 303 219 825 703Data processing 577 707 2,044 2,025FDIC deposit insurance assessment 255 125 545 500Marketing, advertising and promotion 171 166 604 571Professional fees 256 189 843 631Core deposit intangible amortization 271 319 850 994Other 1,169 988 3,877 3,368Total noninterest expense 8,404 7,943 25,908 24,884Income before income taxes 5,687 5,647 16,500 15,052Provision for income taxes 1,111 1,047 3,197 2,647Net income $ 4,576 $ 4,600 $ 13,303 $ 12,405Net income per common share, basic $ 0.85 $ 0.86 $ 2.47 $ 2.31Net income per common share, diluted $ 0.84 $ 0.85 $ 2.45 $ 2.30Weighted average common shares outstanding, basic 5,391,979 5,370,912 5,387,658 5,371,616Weighted average common shares outstanding, diluted 5,424,642 5,396,936 5,414,969 5,387,537
VIRGINIA NATIONALBANKSHARESCORPORATIONFINANCIAL HIGHLIGHTS(dollars in thousands, except per share data)(Unaudited) At or For the Three Months Ended September June 30, 2025 March 31, 2025 December 31, September 30, 2025 2024 30, 2024Common Share Data:Net income $ 4,576 $ 4,238 $ 4,489 $ 4,561 $ 4,600Net income per weighted average share, basic $ 0.85 $ 0.79 $ 0.83 $ 0.85 $ 0.86Net income per weighted average share, diluted $ 0.84 $ 0.78 $ 0.83 $ 0.85 $ 0.85Weighted average shares outstanding, basic 5,391,979 5,391,979 5,378,871 5,370,912 5,370,912Weighted average shares outstanding, diluted 5,424,642 5,417,900 5,402,936 5,407,489 5,396,936Actual shares outstanding 5,391,979 5,391,979 5,391,979 5,370,912 5,370,912Tangible book value per share at period end 5 $ 30.90 $ 29.63 $ 28.84 $ 27.70 $ 28.68Key Ratios:Return on average assets 1 1.12 % 1.05 % 1.12 % 1.12 % 1.15 %Return on average equity 1 10.48 % 10.05 % 11.05 % 10.98 % 11.44 %Net interest margin (FTE) 1, 2 3.43 % 3.40 % 3.28 % 3.21 % 3.24 %Efficiency ratio (FTE) 3 57.9 % 61.2 % 62.4 % 60.2 % 58.6 %Loan-to-deposit ratio 89.2 % 89.4 % 86.6 % 86.8 % 88.1 %Net Interest Income:Net interest income $ 13,072 $ 12,796 $ 12,295 $ 12,235 $ 12,024Net interest income (FTE) 2 $ 13,158 $ 12,881 $ 12,381 $ 12,321 $ 12,111Company Capital Ratios:Tier 1 leverage ratio 6 12.26 % 12.12 % 11.83 % 11.34 % 11.81 %Total risk-based capital ratio 6 20.15 % 19.46 % 18.92 % 18.77 % 18.88 %Assets and Asset Quality:Average earning assets $ 1,523,230 $ 1,521,345 $ 1,529,575 $ 1,526,464 $ 1,487,182Average gross loans $ 1,230,805 $ 1,240,563 $ 1,233,520 $ 1,218,460 $ 1,181,447Fair value mark on acquired loans $ 5,241 $ 5,724 $ 6,242 $ 6,785 $ 7,301Allowance for credit losses on loans:Beginning of period $ 8,347 $ 8,328 $ 8,455 $ 8,523 $ 8,028Provision for (recovery of) credit losses 253 90 (105) (208) (3)Charge-offs (146) (111) (70) (127) (272)Recoveries 56 40 48 267 770Net (charge-offs) recoveries (90) (71) (22) 140 498End of period $ 8,510 $ 8,347 $ 8,328 $ 8,455 $ 8,523Non-accrual loans $ 2,568 $ 2,614 $ 2,764 $ 2,267 $ 2,113Loans 90 days or more past due and still accruing 4,201 5,178 2,274 754 3,214Total nonperforming assets (NPA) 4 $ 6,769 $ 7,792 $ 5,038 $ 3,021 $ 5,327NPA as a % of total assets 0.42 % 0.48 % 0.31 % 0.19 % 0.33 %NPA as a % of gross loans 0.55 % 0.63 % 0.41 % 0.24 % 0.44 %ACL to gross loans 0.69 % 0.67 % 0.67 % 0.68 % 0.70 %Non-accruing loans to gross loans 0.21 % 0.21 % 0.22 % 0.18 % 0.17 %Net charge-offs (recoveries) to average loans 1 0.03 % 0.02 % 0.01 % -0.05 % -0.17 %
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 September 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 September30, 2025 September30, 2024 Interest Interest Average Income/ Average Average Income/ Average Balance Expense Yield/Cost 4 Balance Expense Yield/Cost 4ASSETSInterest Earning Assets:Securities:Taxable Securities and Dividends $ 193,809 $ 1,311 2.71 % $ 221,548 $ 1,516 2.74 %Tax Exempt Securities 1 65,222 408 2.50 % 66,334 413 2.49 %Total Securities 1 259,031 1,719 2.65 % 287,882 1,929 2.68 %Loans:Real Estate 939,765 13,792 5.82 % 905,275 13,348 5.87 %Commercial 262,137 3,216 4.87 % 238,407 3,418 5.70 %Consumer 28,903 492 6.75 % 37,765 612 6.45 %Total Loans 1,230,805 17,500 5.64 % 1,181,447 17,378 5.85 %Federal funds sold 25,482 283 4.41 % 9,875 136 5.48 %Other interest-bearing deposits 7,912 55 2.76 % 7,978 50 2.49 %Total Earning Assets 1,523,230 19,557 5.09 % 1,487,182 19,493 5.21 %Less: Allowance for Credit Losses (8,362) (8,134)Total Non-Earning Assets 106,699 106,616Total Assets $ 1,621,567 $ 1,585,664LIABILITIES AND SHAREHOLDERS'EQUITYInterest Bearing Liabilities:Interest Bearing Deposits:Interest Checking $ 260,217 $ 66 0.10 % $ 261,961 $ 66 0.10 %Money Market and Savings Deposits 468,488 3,026 2.56 % 425,026 2,990 2.80 %Time Deposits 290,246 2,713 3.71 % 334,768 3,915 4.65 %Total Interest-Bearing Deposits 1,018,951 5,805 2.26 % 1,021,755 6,971 2.71 %Borrowings 42,707 513 4.77 % 25,634 313 4.86 %Federal funds purchased 250 3 4.76 % 616 9 5.81 %Junior subordinated debt 3,535 78 8.75 % 3,487 89 10.15 %Total Interest-Bearing Liabilities 1,065,443 6,399 2.38 % 1,051,492 7,382 2.79 %Non-Interest-Bearing Liabilities:Demand deposits 371,859 363,929Other liabilities 10,971 10,347Total Liabilities 1,448,273 1,425,768Shareholders' Equity 173,294 159,896Total Liabilities & Shareholders' Equity $ 1,621,567 $ 1,585,664Net Interest Income (FTE) 3 $ 13,158 $ 12,111Interest Rate Spread 2 2.71 % 2.42 %Cost of Funds 1.77 % 2.07 %Interest Expense as a Percentage of 1.67 % 1.97 %Average Earning Assets 4Net Interest Margin (FTE) 3,4 3.43 % 3.24 %
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 NATIONALBANKSHARESCORPORATIONAVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)(dollars in thousands)(Unaudited) For the nine months ended September30, 2025 September30, 2024 Interest Interest Average Income/ Average Average Income/ Average Balance Expense Yield/Cost 4 Balance Expense Yield/Cost 4ASSETSInterest Earning Assets:Securities:Taxable Securities and Dividends $ 199,991 $ 4,109 2.74 % $ 262,029 $ 5,669 2.88 %Tax Exempt Securities 1 65,753 1,226 2.49 % 66,462 1,240 2.49 %Total Securities 1 265,744 5,335 2.68 % 328,491 6,909 2.80 %Loans:Real Estate 946,652 40,952 5.78 % 903,786 38,373 5.67 %Commercial 257,140 9,319 4.85 % 206,420 8,923 5.77 %Consumer 31,161 1,593 6.83 % 37,706 1,985 7.03 %Total Loans 1,234,953 51,864 5.61 % 1,147,912 49,281 5.73 %Federal funds sold 16,050 530 4.42 % 13,101 535 5.45 %Other interest-bearing deposits 8,051 142 2.36 % 8,002 165 2.75 %Total Earning Assets 1,524,798 57,871 5.07 % 1,497,506 56,890 5.07 %Less: Allowance for Credit Losses (8,398) (8,381)Total Non-Earning Assets 105,741 109,762Total Assets $ 1,622,141 $ 1,598,887LIABILITIES AND SHAREHOLDERS'EQUITYInterest Bearing Liabilities:Interest Bearing Deposits:Interest Checking $ 267,854 $ 202 0.10 % $ 271,102 $ 205 0.10 %Money Market and Savings Deposits 465,665 8,957 2.57 % 419,586 8,864 2.82 %Time Deposits 294,318 8,437 3.83 % 338,154 11,947 4.72 %Total Interest-Bearing Deposits 1,027,837 17,596 2.29 % 1,028,842 21,016 2.73 %Borrowings 44,915 1,604 4.77 % 32,706 1,187 4.85 %Federal funds purchased 759 28 4.93 % 558 25 5.98 %Junior subordinated debt 3,523 224 8.50 % 3,476 260 9.99 %Total Interest-Bearing Liabilities 1,077,034 19,452 2.41 % 1,065,582 22,488 2.82 %Non-Interest-Bearing Liabilities:Demand deposits 366,117 367,688Other liabilities 9,891 10,808Total Liabilities 1,453,042 1,444,078Shareholders' Equity 169,099 154,809Total Liabilities & Shareholders' Equity $ 1,622,141 $ 1,598,887Net Interest Income (FTE) 3 $ 38,419 $ 34,402Interest Rate Spread 2 2.66 % 2.25 %Cost of Funds 1.80 % 2.10 %Interest Expense as a Percentage of 1.71 % 2.01 %Average Earning Assets 4Net Interest Margin (FTE) 3,4 3.37 % 3.07 %
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 September30, June 30, 2025 March 31, 2025 December 31, September 30, 2025 2024 2024Fully tax-equivalent measuresNet interest income $ 13,072 $ 12,796 $ 12,295 $ 12,235 $ 12,024Fully tax-equivalent adjustment 86 85 86 86 87Net interest income (FTE) 1 $ 13,158 $ 12,881 $ 12,381 $ 12,321 $ 12,111Efficiency ratio 2 58.3 % 61.5 % 62.8 % 60.6 % 58.9 %Fully tax-equivalent adjustment -0.4 % -0.3 % -0.4 % -0.4 % -0.3 %Efficiency ratio (FTE) 3 57.9 % 61.2 % 62.4 % 60.2 % 58.6 %Net interest margin 3.40 % 3.37 % 3.26 % 3.19 % 3.22 %Fully tax-equivalent adjustment 0.03 % 0.03 % 0.02 % 0.02 % 0.02 %Net interest margin (FTE) 1 3.43 % 3.40 % 3.28 % 3.21 % 3.24 % As of September30, June 30, 2025 March 31, 2025 December 31, September 30, 2025 2024 2024Other financial measuresBook value per share $ 32.89 $ 31.67 $ 30.93 $ 29.85 $ 30.89Impact of intangible assets 4 (1.99) (2.04) (2.09) (2.15) (2.21)Tangible book value per share (non- $ 30.90 $ 29.63 $ 28.84 $ 27.70 $ 28.68GAAP)
For the Nine Months Ended September30, September30, 2025 2024Fully tax-equivalent measuresNet interest income $ 38,161 $ 34,141Fully tax-equivalent adjustment 258 261Net interest income (FTE) 1 $ 38,419 $ 34,402Efficiency ratio 2 60.8 % 63.1 %Fully tax-equivalent adjustment -0.3 % -0.5 %Efficiency ratio (FTE) 3 60.5 % 62.6 %Net interest margin 3.35 % 3.05 %Fully tax-equivalent adjustment 0.02 % 0.02 %Net interest margin (FTE) 1 3.37 % 3.07 %
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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