VABK

CHARLOTTESVILLE, Va., July 23, 2026 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $9.0 million, or $1.65 per diluted share, for the quarter ended June 30, 2026, compared to $4.2 million, or $0.78 per diluted share, recognized for the quarter ended June 30, 2025. The increase in net income for the quarter ended June 30, 2026 as compared to the same period in the prior year was primarily due to the cost of funds reduction of 13 basis points, reduced non-interest expense and a gain from the sale of a limited investment partnership interest in Bearing Insurance Group, LLC ("Bearing"). Dividend Declaration On July 22, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock payable on August 28, 2026, to the holders of record at the close of business on August 14, 2026. The quarterly cash dividend implies an annualized dividend yield to shareholders of approximately 3.20% based on the closing price of the Company's common stock on July 22, 2026. President and Chief Executive Officer's comments:  "Our second quarter results reflected strong core performance and also benefited from the Bearing transaction, which illustrate consistent performance in a dynamic environment," stated Glenn W. Rust, President and Chief Executive Officer. "We are disciplined in our approach, and we continue to focus on optimizing the balance sheet to maximize profitability. Asset quality, liquidity and capital remain strong enabling us to finance creditworthy projects which enhance our communities." Key Performance Indicators Second quarter 2026 compared to second quarter 2025 Return on average assets1 improved to 2.24% from 1.05%. Return on average equity1 improved to 18.81% from 10.05%. Net interest margin (FTE)1,2 improved to 3.65% from 3.40%. Loan-to-deposit ratio decreased slightly to 87.6% from 89.4%. Efficiency ratio (FTE)2 improved to 41.6% from 61.2%. June 30, 2026 Balance Sheet Highlights Gross loans outstanding as of June 30, 2026 and December 31, 2025 totaled $1.2 billion; this represents a decrease of $7.7 million, or 0.6% compared to June 30, 2025. Securities balances were $241.0 million at June 30, 2026, and $254.2 million at December 31, 2025. The balance declined $22.1 million from June 30, 2025 to June 30, 2026, with the additional liquidity allowing the Company to take advantage of investment opportunities that complement its growth and earnings strategies. Deposits at June 30, 2026 were $1.4 billion, a $22.5 million decrease from December 31, 2025, but a $20.1 million increase from June 30, 2025. The changes noted reflect normal customer behavior in the current rate environment as customers continue to optimize their cash holdings. Outstanding borrowings from the FHLB were $20.0 million as of June 30, 2026 and December 31, 2025, and $61.0 million as of June 30, 2025. As of June 30, 2026, the Company had unused borrowing facilities in place of approximately $237.0 million and held no brokered deposits. Book value per share increased to $35.89 as of June 30, 2026, compared to $31.67 as of June 30, 2025, and tangible book value per share (a non-GAAP financial measure)2 was $34.05 as of June 30, 2026 compared to $29.63 as of June 30, 2025. The increases reflect the consistent earnings performance that the Company posts, and in particular, the gain from the Bearing transaction in the second quarter of 2026. Loans and Asset Quality Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.35% as of June 30, 2026, 0.56% as of December 31, 2025 and 0.48% as of June 30, 2025. Nonperforming assets amounted to $5.8 million as of June 30, 2026, compared to $9.2 million as of December 31, 2025, and $7.8 million as of June 30, 2025. The primary changes over the periods were in the 90 or more days past due and still accruing loans, which are government-guaranteed loans and are serviced by a third party. Timing of the distribution of payments from the servicer can create fluctuations at period ends. The period-end Allowance for Credit Losses on Loans ("ACL") as a percentage of total loans was 0.66% as of June 30, 2026, 0.67% as of December 31, 2025 and 0.67% as of June 30, 2025. The portfolio of government-guaranteed loans continues to be a significant driver impacting the recovery of credit losses on loans year-over-year. Balances in such loans are 100% guaranteed and do not require an ACL. For the three months ended June 30, 2026, the Company recorded a provision for credit losses of $231 thousand on loans, and a $94 thousand reserve for unfunded commitments, both due to construction and multifamily project loans originated in the second quarter, which drove increases in provision expense as those pools require higher reserves. For the six months ended June 30, 2026, the Company recognized a $105 thousand recovery of credit losses on loans and a $39 thousand provision for unfunded commitments. Net Interest Income Net interest income for the three months ended June 30, 2026 of $13.7 million increased $952 thousand, or 7.4%, compared to the three months ended June 30, 2025, predominantly due to decreased interest expense associated with deposit accounts and increased yield on loans. On a year-to-date basis, net interest income at June 30, 2026 was $26.7 million compared to $25.1 million at June 30, 2025. Net interest margin (FTE), (a non-GAAP financial measure)2, for the three months ended June 30, 2026 was 3.65%, compared to 3.40% for the three months ended June 30, 2025. The net interest margin (FTE)2 for the six months ended June 30, 2026 was 3.52% compared to 3.34% for the same period in 2025. The Bank's yield on loans was 5.74% for the three months ended June 30, 2026, compared to 5.60% for the prior year same period. The accretion of the fair value mark related to purchased loans positively impacted interest income by 11 bps in the second quarter of 2026, and 14 bps in the second quarter of 2025. The yield on loans for the six months ended June 30, 2026 was 5.64%, which was 4 bps over the same period for 2025. The overall cost of funds, including noninterest-bearing deposits, of 1.64% incurred in the three months ended June 30, 2026 decreased 13 bps from 1.77% in the same period in the prior year. The cost of interest-bearing deposits decreased period over period by 11 bps, from a cost of 2.23% to 2.12%. The cost of borrowings from the FHLB decreased 85 bps from the second quarter of 2025 to the second quarter of 2026, from 4.74% to 3.89%. On a year-to-date basis, at June 30, 2026, the overall cost of funds decreased 16 bps from 1.82% to 1.66%. Noninterest Income Noninterest income for the three months ended June 30, 2026 increased $4.7 million, or 360.1%, compared to the three months ended June 30, 2025, the result of a gain of $4.7 million on the Bearing transaction. On a year-to-date basis, at June 30, 2026, the $4.5 million increase over June 30, 2025 also reflects the $4.7 million gain on the Bearing transaction. Noninterest Expense Noninterest expense for the three months ended June 30, 2026 decreased by $412 thousand, or 4.7%, compared to the three months ended June 30, 2025. The 2026 quarter reflected continued lower data processing costs resulting from the 2025 core contract renewals, and a reduction of other expense (which includes legal fees) incurred compared to 2025. The $1.0 million decrease in noninterest expense for the six months ended June 30, 2026 compared to the same period of 2025 is due to reduced depreciation and data processing expenses. Efficiency Ratio The Company's efficiency ratio (FTE)2 improved to 41.6% for the three months ended June 30, 2026 compared to 61.2% for the three months ended June 30, 2025, as all the components of this ratio improved. Income Taxes The effective tax rates amounted to 20.1% and 21.9% for the three months ended June 30, 2026 and 2025, respectively. For each period, the effective income tax rate differed from the U.S. statutory rate of 21%. The effective tax rate fluctuations are attributable to changes in pretax earnings, low-income housing tax credits and the levels of permanent tax differences. Dividends Cash dividends of $2.0 million, or $0.36 per share, were declared and paid during the second quarter of 2026. The remaining 78% of net income was retained. 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, 2025 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-2026-second-quarter-earnings-and-quarterly-dividend-302833351.html

CHARLOTTESVILLE, Va., April 23, 2026 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $5.3 million, or $0.97 per diluted share, for the quarter ended March 31, 2026, compared to $4.5 million, or $0.83 per diluted share, recognized for the quarter ended March 31, 2025. The increase in 2026 year-to-date net income as compared to the prior year was primarily due to the cost of funds reduction of 19 basis points and reduced non-interest expense. Dividend Declaration On April 22, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock payable on May 29, 2026, to the holders of record at the close of business on May 13, 2026. The quarterly cash dividend implies an annualized dividend yield to shareholders of approximately 3.50% based on the closing price of the Company's common stock on April 21, 2026. President and Chief Executive Officer's comments: "Our strong performance in the first quarter of 2026 resulted in a 17.2% increase in net income over the first quarter of 2025. We continue to successfully implement financial strategies that enhance our operating efficiency," stated Glenn W. Rust, President and Chief Executive Officer. "Attention to pricing and continued vigilance toward asset quality augment our performance strategies. With our strong capital and liquidity positions, our lending and retail teams are able to work seamlessly to provide exceptional service to the communities we serve." Key Performance Indicators First quarter 2026 compared to first quarter 2025 Return on average assets improved to 1.30% from 1.12%. Return on average equity improved to 11.34% from 11.05%. Net interest margin (FTE)1 improved to 3.40% from 3.28%. Loan-to-deposit ratio increased to 86.7% from 86.6%. Efficiency ratio (FTE)1 improved to 56.6% from 62.4%. March 31, 2026 Balance Sheet Highlights Gross loans outstanding as of March 31, 2026 totaled $1.2 billion, a decrease of $4.8 million, or 0.4% compared to March 31, 2025. Gross loans outstanding at March 31, 2026 remained flat when compared to December 31, 2025. Securities balances declined $22.5 million from March 31, 2025 to March 31, 2026 as the Company allowed the proceeds from natural maturities and cash flow to fund earning assets with more attractive yields. 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 Sweepﾮ (ICS) plans. Deposit balances held in ICS plans amounted to $187.3 million as of March 31, 2026, $200.4 million as of December 31, 2025 and $177.6 million as of March 31, 2025. Outstanding borrowings from the FHLB were $20.0 million as of March 31, 2026, December 31, 2025, and March 31, 2025. As of March 31, 2026, the Company had unused borrowing facilities in place of approximately $225.1 million and held no brokered deposits. Loans and Asset Quality Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.36% as of March 31, 2026, 0.56% as of December 31, 2025 and 0.31% as of March 31, 2025. Nonperforming assets amounted to $6.0 million as of March 31, 2026, compared to $9.2 million as of December 31, 2025, and $5.0 million as of March 31, 2025; Fourteen loans to twelve borrowers are in non-accrual status, totaling $2.1 million, as of March 31, 2026, compared to $2.2 million as of December 31, 2025 and $2.8 million as of March 31, 2025. Loans 90 days or more past due and still accruing interest amounted to $3.8 million as of March 31, 2026, compared to $7.0 million at December 31, 2025 and $2.3 million as of March 31, 2025. The past due balance as of March 31, 2026 is comprised of four loans totaling $3.7 million which are 100% government-guaranteed, and seven student loans totaling $92 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 0.64% as of March 31, 2026, and 0.67% as of December 31, 2025 and March 31, 2025. The change was primarily driven by an improvement in the economic forecast at March 31, 2026, compared to March 31, 2025, and December 31, 2025, as well as the migration of loans to pools requiring lower reserve rates such as loans moving from the construction pool to the permanent loan pools. The portfolio of government-guaranteed loans continues to be a significant driver controlling the ACL year-over-year. Balances in such loans are 100% government-guaranteed and do not require an ACL. For the three months ended March 31, 2026, the Company recorded a net recovery to the provision for credit losses of $336 thousand, primarily due to the aforementioned pool migrations. The reserve for unfunded commitments decreased by $55 thousand. Net Interest Income - Quarterly Comparison Net interest income for the three months ended March 31, 2026 of $12.9 million increased $611 thousand, or 5.0%, compared to the three months ended March 31, 2025, predominantly due to decreased interest expense associated with deposit accounts and borrowings which offset decreased interest income earned on loans and federal funds sold. Net interest margin (FTE), (a non-GAAP financial measure)1, for the three months ended March 31, 2026 was 3.40%, compared to 3.28% for the three months ended March 31, 2025. The Bank's yield on loans was 5.53% for the three months ended March 31, 2026, compared to 5.60% for the prior year same period. The accretion of the fair value mark related to purchased loans positively impacted interest income by 11 bps in the first quarter of 2026, and 15 bps in the first quarter of 2025. The overall cost of funds, including noninterest-bearing deposits, of 1.68% incurred in the three months ended March 31, 2026 decreased 19 bps from 1.87% in the same period in the prior year. The cost of interest-bearing deposits decreased period over period by 20 bps, from a cost of 2.38% to 2.18%. The cost of borrowings from the FHLB decreased 94 bps from the first quarter of 2025 to the first quarter of 2026, from 4.83% to 3.89%. Noninterest Income - Quarterly Comparison Noninterest income for the three months ended March 31, 2026 decreased $271 thousand, or 15.4%, compared to the three months ended March 31, 2025, primarily as a result of lower debit/credit card and ATM fees due to lower usage and reduced income from a gain on the sale of assets in 2025 compared to 2026. Noninterest Expense - Quarterly Comparison Noninterest expense for the three months ended March 31, 2026 decreased by $626 thousand, or 7.1%, compared to the three months ended March 31, 2025. The 2026 quarter reflected lower data processing costs resulting from the contract renewal negotiations which occurred in the fourth quarter of 2025. Efficiency Ratio - Quarterly Comparison The Company's efficiency ratio (FTE)1 improved to 56.6% for the three months ended March 31, 2026 compared to 62.4% for the three months ended March 31, 2025, as the impact of increased net interest income (FTE)1 and decreased noninterest expense offset the decrease in noninterest income. Income Taxes - Quarterly Comparison The effective tax rates amounted to 19.5% and 16.7% for the three months ended March 31, 2026 and 2025, respectively. For each period, the effective income tax rate differed from the U.S. statutory rate of 21%. The effective tax rate fluctuations are attributable to changes in pretax earnings, low-income housing tax credits and the levels of permanent tax differences. Book Value Book value per share increased to $34.39 as of March 31, 2026, compared to $30.93 as of March 31, 2025, and tangible book value per share (a non-GAAP financial measure)1 was $32.51 as of March 31, 2026 compared to $28.84 as of March 31, 2025. 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 first quarter of 2026. The remaining 63% of net income was retained. 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, 2025 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-2026-first-quarter-earnings-and-quarterly-dividend-302751038.html

CHARLOTTESVILLE, Va., Jan. 29, 2026 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $6.0 million, or $1.10 per diluted share, for the quarter ended December 31, 2025, compared to the $4.6 million, or $0.85 per diluted share, recognized for the quarter ended December 31, 2024. For the twelve months ended December 31, 2025, the Company recognized net income of $19.3 million, or $3.55 per diluted share, compared to $17.0 million, or $3.15 per diluted share, for the twelve months ended December 31, 2024. 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 28 bps year-over-year while yields on earning assets held steady despite several reductions in the prime rate. Dividend Declaration On January 27, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock payable on February 27, 2026, to the holders of record at the close of business on February 13, 2026. The quarterly cash dividend represents an annual yield to shareholders of approximately 3.57% based on the closing price of the Company's common stock on January 27, 2026. President and Chief Executive Officer's comments: "Our strong fourth quarter performance demonstrates our continued attention to strategic operating efficiency and sustainable growth, with increased net income of $1.4 million over the prior quarter," stated Glenn W. Rust, President and Chief Executive Officer. "Loan growth was modest for the quarter and the year, but our strong asset quality continues to enhance financial results, and our capital and liquidity positions remain strong." Key Performance Indicators Fourth quarter 2025 compared to third quarter 2025 Return on average assets improved to 1.45%. from 1.12%. Return on average equity improved to 13.04% from 10.48%. Net interest margin (FTE)1 improved to 3.50% from 3.43%. Loan-to-deposit ratio decreased to 86% from 89%. Efficiency ratio (FTE)1 improved to 49.5% from 57.9%. December 31, 2025 Balance Sheet Highlights Gross loans outstanding as of December 31, 2025 totaled $1.2 billion, an increase of $1.6 million, or 0.1% compared to December 31, 2024. The Company experienced modest loan growth in the fourth quarter of 2025, with gross loan balances increasing $2.6 million from September 30, 2025. Deposit balances at December 31, 2025 increased $46.8 million or 3.4% from September 30, 2025, and increased $8.2 million since December 31, 2024. This fourth quarter increase is the combined result of the Company's choice to maintain interest rates despite prime decreases and normal corporate deposit behavior at the end of the calendar cycle. Securities balances declined $5.4 million from September 30, 2025 to December 31, 2025 as the Company allowed the proceeds from natural maturities and cash flow to fund earning assets with more attractive yields. 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 Sweepﾮ (ICS) plans. Deposit balances held in ICS plans amounted to $200.4 million as of December 31, 2025, $166.6 million as of December 31, 2024 and $145.2 million as of September 30, 2025. Outstanding borrowings from the FHLB as of December 31, 2025 were $20.0 million, a decrease of $10.0 million from September 30, 2025. The balance at December 31, 2024 was $20.0 million. As of December 31, 2025, the Company had unused borrowing facilities in place of approximately $233.0 million and held no brokered deposits. Loans and Asset Quality Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.56% as of December 31, 2025, 0.42% as of September 30, 2025 and 0.19% as of December 31, 2024. Nonperforming assets amounted to $9.2 million as of December 31, 2025, compared to $6.8 million as of September 30, 2025 and $3.0 million as of December 31, 2024; Fourteen loans to thirteen borrowers are in non-accrual status, totaling $2.2 million, as of December 31, 2025, compared to $2.6 million as of September 30, 2025 and $2.3 million as of December 31, 2024. Loans 90 days or more past due and still accruing interest amounted to $7.0 million as of December 31, 2025, compared to $4.2 million at September 30, 2025 and $754 thousand as of December 31, 2024. The past due balance as of December 31, 2025 is comprised of seven loans totaling $6.6 million which are 100% government-guaranteed, one loan secured by residential real estate totaling $391 thousand and three student loans totaling $86 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 December 31, 2025, 0.69% as of September 30, 2025 and 0.68% as of December 31, 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 $4.8 million as of December 31, 2025. For the three months ended December 31, 2025, the Company recorded a net recovery to the provision for credit losses of $36 thousand, due primarily to updated analysis performed on the Company's loans secured by marketable securities and cash, netted against additional provision for loan growth and unfunded commitments. The reserve for unfunded commitments increased by $140 thousand. Net Interest Income - Quarterly Comparison Net interest income for the three months ended December 31, 2025 of $13.3 million increased $1.1 million, or 9.1%, compared to the three months ended December 31, 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 December 31, 2025 was 3.50%, compared to 3.21% for the three months ended December 31, 2024. The increase as compared to the fourth quarter of 2024 was primarily due to the decrease in cost of funds, as described below. The Bank's yield on loans was 5.74% for the three months ended December 31, 2025, compared to 5.63% 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 fourth quarter of 2025, and 13 bps in the fourth quarter of 2024. The overall cost of funds, including noninterest-bearing deposits, of 173 bps incurred in the three months ended December 31, 2025 decreased 21 bps from 194 bps in the same period in the prior year. Overall, the cost of interest-bearing deposits decreased period over period by 24 bps, from a cost of 2.51% to 2.27%. The cost of borrowings from the FHLB decreased 35 bps from the fourth quarter of 2024 to the fourth quarter of 2025, from 4.33% to 3.98%. Noninterest Income - Quarterly Comparison Noninterest income for the three months ended December 31, 2025 decreased $595 thousand, or 26.2%, compared to the three months ended December 31, 2024, primarily as a combined result of lower fee income from debit card usage in 2025 and early extinguishment of debt in 2024. Noninterest Expense - Quarterly Comparison Noninterest expense for the three months ended December 31, 2025 decreased by $1.3 million, or 14.9%, compared to the three months ended December 31, 2024. The 2025 quarter reflected service refunds and credits within data processing expense received as a result of negotiations with the Company's core processing provider. Efficiency Ratio - Quarterly Comparison The Company's efficiency ratio (FTE)1 improved to 49.5% for the three months ended December 31, 2025 compared to 60.2% for the three months ended December 31, 2024, as the impact of increased net interest income (FTE)1 and decreased noninterest expense more than offset the decrease in noninterest income. On a year-to-date basis, the efficiency ratio (FTE)1 improved to 57.6% in 2025 compared to 62.0% in 2024, also because of increased net interest income (FTE)1. Income Taxes - Quarterly Comparison The effective tax rates amounted to 21.4% and 22.0% for the three months ended December 31, 2025 and 2024, respectively. For each period, the effective income tax rate differed from the U.S. statutory rate of 21% due to the adoption of the proportional amortization method for accounting for low-income housing tax credits, which increased tax expense, net of the recognition of low-income housing tax credits and 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 $34.15 as of December 31, 2025, compared to $29.85 as of December 31, 2024, and tangible book value per share (a non-GAAP financial measure)1 was $32.21 as of December 31, 2025 compared to $27.70 as of December 31, 2024. These values increased as net retained income increased, the impact of intangible assets declined due to the ongoing amortization of the Company's core deposit intangible asset, and the reduction in accumulated other comprehensive income. Dividends Cash dividends of $1.9 million, or $0.36 per share, were declared and paid during the fourth quarter of 2025. The remaining 67% of net income was retained. 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-2025-full-year-results-and-quarterly-dividend-302673296.html

CHARLOTTESVILLE, Va., Oct. 23, 2025 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $4.6 million, or $0.84 per diluted share, for the quarter ended September 30, 2025, compared to the $4.6 million, or $0.85 per diluted share, recognized for the quarter ended September 30, 2024. For the nine months ended September 30, 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 September 30, 2024. 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%. Noninterest Income Noninterest income for the three months ended September 30, 2025 decreased $101 thousand, or 7.0%, compared to the three months ended September 30, 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 September 30, 2025 increased by $461 thousand, or 5.8%, compared to the three months ended September 30, 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 September 30, 2025 compared to 58.6% for the three months ended September 30, 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 September 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 $32.89 as of September 30, 2025, compared to $30.89 as of September 30, 2024, and tangible book value per share (a non-GAAP financial measure)1 was $30.90 as of September 30, 2025 compared to $28.68 as of September 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 third quarter of 2025. The remaining 58% of net income was retained. 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-2025-third-quarter-earnings-and-quarterly-dividend-302593001.html

CHARLOTTESVILLE, Va., July 24, 2025 /PRNewswire/ -- 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. 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%. 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. 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-2025-second-quarter-earnings-and-quarterly-dividend-302512911.html SOURCE Virginia National Bankshares Corporation

CHARLOTTESVILLE, Va., April 24, 2025 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $4.5 million, or $0.83 per diluted share, for the quarter ended March 31, 2025, compared to $3.6 million, or $0.68 per diluted share, recognized for the quarter ended March 31, 2024. The increase in first 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 we reduced our cost of funds associated with deposits as well as borrowings. Dividend Declaration On April 23, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock payable on May 30, 2025, to the holders of record at the close of business on May 15, 2025. The quarterly cash dividend represents an annual yield to shareholders of approximately 4.09% based on the closing price of the Company's common stock on April 23, 2025 and an increase of 9.1% over the prior quarterly dividend of $0.33 per share. President and Chief Executive Officer's comments: "The Bank reported a strong first quarter, producing net income of $4.5 million, a 23% increase over net income of $3.6 million posted a year ago," stated Glenn W. Rust, President and Chief Executive Officer. "Our focus on loan growth and reducing ongoing operating expenses during 2024 has positioned the Bank for a strong 2025. Our credit quality metrics and capital and liquidity positions continue to be solid and the increase in our quarterly dividend reflects our Board of Director's continuing commitment to provide a fair return to our shareholders." Key Performance Indicators First quarter 2025 compared to first quarter 2024 Return on average assets increased to 1.12% from 0.91% Return on average equity increased to 11.05% from 9.57% Net interest margin (FTE)1 improved to 3.28% from 2.93% Loan-to-deposit ratio increased to 86.6% from 78.8% Efficiency ratio (FTE)1 improved to 62.4% from 66.8% March 31, 2025 Balance Sheet Highlights The Company continued to experience loan growth in the first quarter of 2025, with gross loan balances increasing $6.5 million from year-end. Gross loans outstanding as of March 31, 2025 totaled $1.2 billion, an increase of $114.3 million, or 10.1% compared to March 31, 2024. Deposit balances increased modestly since December 31, 2024, increasing $10.7 million, but more importantly, increased in the lower rate components of the deposit mix, furthering the effort to stabilize overall cost of funds. Securities balances declined $79.0 million from March 31, 2024 to March 31, 2025; 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 $177.6 million as of March 31, 2025, $166.6 million as of December 31, 2024 and $144.0 million as of March 31, 2024. Outstanding borrowings from the FHLB remained flat at $20 million as of March 31, 2025, December 31, 2024 and March 31, 2024. As of March 31, 2025, the Company had unused borrowing facilities in place of approximately $206.3 million and held no brokered deposits. Loans and Asset Quality Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.31% as of March 31, 2025 and 0.19% as of December 31, 2024 and March 31, 2024. Nonperforming assets amounted to $5.0 million as of March 31, 2025, compared to $3.0 million as of December 31, 2024 and $3.1 million as of March 31, 2024; Sixteen loans to fifteen borrowers are in non-accrual status, totaling $2.8 million, as of March 31, 2025, compared to $2.3 million as of December 31, 2024 and $2.2 million as of March 31, 2024. Loans 90 days or more past due and still accruing interest amounted to $2.3 million as of March 31, 2025, compared to $754 thousand as of December 31, 2024 and $876 thousand as of March 31, 2024. The past due balance as of March 31, 2025 is comprised of two loans totaling $2.2 million which are 100% government-guaranteed, and eight student loans totaling $61 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 March 31, 2025, 0.68% as of December 31, 2024 and 0.73% as of March 31, 2024. The proportionate increase in government-guaranteed loans over the respective periods is the main driver of the decrease in the ACL as a percentage of total loans year-over-year. Balances in such loans are 100% government-guaranteed and do not require an ACL. In addition, the sequential quarter variance is partially due to declines in balances within loan pools that had higher loss rates. 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 $6.2 million as of March 31, 2025. For the three months ended March 31, 2025, the Company recorded a net recovery of provision for credit losses of $160 thousand, due primarily to declines in balances within loan pools that had higher loss rates; this recovery includes a $55 thousand recovery of provision for unfunded reserves, as a result of a decline in unfunded construction commitments. Net Interest Income Net interest income for the three months ended March 31, 2025 of $12.3 million increased $1.4 million, or 12.4%, compared to the three months ended March 31, 2024, as interest income earned on assets increased and interest expense on deposit accounts declined. Net interest margin (FTE), (a non-GAAP financial measure)1, for the three months ended March 31, 2025 was 3.28%, compared to 2.93% for the three months ended March 31, 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 March 31, 2025, compared to 5.64% for the prior year same period. The accretion of the credit mark related to purchased loans positively impacted interest income by 14 bps in the first quarter of 2025, compared to 16 bps in the first quarter of 2024. The overall cost of funds, including noninterest-bearing deposits, of 187 bps incurred in the three months ended March 31, 2025 decreased 24 bps from 211 bps in the same period in the prior year. Overall, the cost of interest-bearing deposits decreased period over period by 35 bps, from a cost of 273 bps to 238 bps. The cost of borrowings increased at a more modest level, increasing 19 bps from the first quarter of 2024 to the first quarter of 2025, from 4.64% to 4.83%. Noninterest Income Noninterest income for the three months ended March 31, 2025 decreased $418 thousand, or 19.2%, compared to the three months ended March 31, 2024, as a gain on early redemption of debt of $379 thousand and Masonry wealth management fees of $190 thousand were recognized in the prior year first quarter and not repeated in 2025. The declines were partially offset by a gain on the sale of a branch building of $278 thousand. Noninterest Expense Noninterest expense for the three months ended March 31, 2025 remained flat, increasing a mere $6 thousand, or 0.07%, compared to the three months ended March 31, 2024. Decreased compensation expense of $216 thousand due to lower headcount was partially offset by increased legal fees of $165 thousand related to special projects and general inflationary increases in the costs of other services. Income Taxes The effective tax rates amounted to 16.7% and 15.5% for the three months ended March 31, 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 and the effect of tax-exempt income from municipal bonds and income from bank owned life insurance policies. The effective tax rate for the prior year period was lower than the current year due to the application of prior period tax adjustments. Book Value Book value per share increased to $30.93 as of March 31, 2025, compared to $28.31 as of March 31, 2024, and tangible book value per share (a non-GAAP financial measure)1 was $28.84 as of March 31, 2025 compared to $25.99 as of March 31, 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 Paid in First Quarter Cash dividends of $1.8 million, or $0.33 per share, were declared and paid during the first quarter of 2025. The remaining 60% of net income was retained. 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-2025-first-quarter-earnings-and--increase-in-quarterly-dividend-302437431.html SOURCE Virginia National Bankshares Corporation