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VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2024 FOURTH QUARTER AND FULL YEAR EARNINGS

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Virginia National Bankshares (VABK) reported Q4 2024 net income of $4.6 million ($0.85 per diluted share), up from $3.2 million ($0.59 per diluted share) in Q4 2023. However, full-year 2024 net income decreased to $17.0 million ($3.15 per diluted share) from $19.3 million ($3.58 per diluted share) in 2023.

The company achieved significant loan growth of 13.1% year-over-year, with gross loans reaching $1.2 billion. Key performance metrics improved in Q4 2024 compared to Q4 2023, including return on average assets (1.12% from 0.79%), net interest margin (3.21% from 2.89%), and efficiency ratio (60.2% from 64.0%). Credit quality remained strong with nonperforming assets at 0.19% of total assets.

The bank successfully reduced borrowing costs and overall cost of funds, while maintaining strong capital and liquidity positions. Total deposits increased by $43.6 million (3.2%) quarter-over-quarter and $14.4 million (1.0%) year-over-year.

Virginia National Bankshares (VABK) ha riportato un reddito netto per il quarto trimestre del 2024 di $4,6 milioni ($0,85 per azione diluita), in aumento rispetto ai $3,2 milioni ($0,59 per azione diluita) del quarto trimestre del 2023. Tuttavia, il reddito netto complessivo per l'anno 2024 è diminuito a $17,0 milioni ($3,15 per azione diluita) dai $19,3 milioni ($3,58 per azione diluita) del 2023.

L'azienda ha raggiunto una significativa crescita dei prestiti del 13,1% su base annua, con prestiti lordi che hanno raggiunto $1,2 miliardi. I principali indicatori di performance sono migliorati nel quarto trimestre del 2024 rispetto al quarto trimestre del 2023, inclusi il rendimento medio sugli attivi (1,12% rispetto allo 0,79%), il margine di interesse netto (3,21% rispetto al 2,89%) e il rapporto di efficienza (60,2% rispetto al 64,0%). La qualità del credito è rimasta solida, con attività non performanti allo 0,19% del totale degli attivi.

La banca ha ridotto con successo i costi di indebitamento e il costo complessivo dei fondi, mantenendo nel contempo solide posizioni di capitale e liquidità. I depositi totali sono aumentati di $43,6 milioni (3,2%) nel trimestre e di $14,4 milioni (1,0%) su base annua.

Virginia National Bankshares (VABK) reportó un ingreso neto de $4.6 millones ($0.85 por acción diluida) en el cuarto trimestre de 2024, en comparación con $3.2 millones ($0.59 por acción diluida) en el cuarto trimestre de 2023. Sin embargo, el ingreso neto total para el año 2024 disminuyó a $17.0 millones ($3.15 por acción diluida) desde $19.3 millones ($3.58 por acción diluida) en 2023.

La compañía logró un crecimiento significativo de préstamos del 13.1% interanual, con préstamos brutos que alcanzaron los $1.2 mil millones. Los indicadores de rendimiento clave mejoraron en el cuarto trimestre de 2024 en comparación con el cuarto trimestre de 2023, incluyendo el retorno sobre activos promedio (1.12% desde 0.79%), el margen de interés neto (3.21% desde 2.89%) y la ratio de eficiencia (60.2% desde 64.0%). La calidad crediticia se mantuvo sólida con activos no productivos en el 0.19% de los activos totales.

El banco redujo con éxito los costos de endeudamiento y el costo total de los fondos, mientras mantenía posiciones sólidas de capital y liquidez. Los depósitos totales aumentaron en $43.6 millones (3.2%) en el trimestre y en $14.4 millones (1.0%) interanual.

버지니아 내셔널 뱅크쉐어스 (VABK)는 2024년 4분기 순이익이 $460만($0.85 희석주당)으로, 2023년 4분기 $320만($0.59 희석주당)에서 증가했다고 보고했습니다. 그러나 2024년 전체 순이익은 2023년 $1930만($3.58 희석주당)에서 $1700만($3.15 희석주당)으로 감소했습니다.

회사는 전년 대비 13.1%의 상당한 대출 성장을 달성했으며, 총 대출은 $12억에 달했습니다. 2024년 4분기의 주요 성과 지표는 2023년 4분기와 비교하여 개선되었으며, 평균 자산 수익률(1.12%에서 0.79%로), 순이자 마진(3.21%에서 2.89%로) 및 효율성 비율(60.2%에서 64.0%로)에서 향상되었습니다. 신용 품질은 강력하게 유지되었으며, 비수익 자산은 총 자산의 0.19%에 해당했습니다.

은행은 차입 비용과 자금 총 비용을 성공적으로 줄였으며, 강력한 자본 및 유동성 위치를 유지하고 있습니다. 총 예금은 분기 대비 $4360만 (3.2%) 및 전년 대비 $1440만 (1.0%) 증가했습니다.

Virginia National Bankshares (VABK) a annoncé un revenu net de 4,6 millions de dollars (0,85 $ par action diluée) pour le quatrième trimestre de 2024, en hausse par rapport à 3,2 millions de dollars (0,59 $ par action diluée) au quatrième trimestre de 2023. Cependant, le revenu net annuel pour 2024 a diminué à 17,0 millions de dollars (3,15 $ par action diluée) contre 19,3 millions de dollars (3,58 $ par action diluée) en 2023.

L'entreprise a réalisé une croissance significative des prêts de 13,1 % d'une année sur l'autre, avec des prêts bruts atteignant 1,2 milliard de dollars. Les principaux indicateurs de performance se sont améliorés au quatrième trimestre 2024 par rapport au quatrième trimestre 2023, y compris le retour sur actifs moyens (1,12 % contre 0,79 %), la marge d'intérêt nette (3,21 % contre 2,89 %) et le ratio d'efficacité (60,2 % contre 64,0 %). La qualité de crédit est restée solide avec des actifs non performants représentant 0,19 % du total des actifs.

La banque a réussi à réduire les coûts d'emprunt et le coût total des fonds, tout en maintenant des positions solides en capital et en liquidité. Les dépôts totaux ont augmenté de 43,6 millions de dollars (3,2 %) par rapport au trimestre précédent et de 14,4 millions de dollars (1,0 %) par rapport à l'année précédente.

Virginia National Bankshares (VABK) meldete für das vierte Quartal 2024 einen Nettogewinn von 4,6 Millionen US-Dollar (0,85 US-Dollar pro verwässerter Aktie), ein Anstieg von 3,2 Millionen US-Dollar (0,59 US-Dollar pro verwässerter Aktie) im vierten Quartal 2023. Der Nettogewinn für das Gesamtjahr 2024 hingegen ging auf 17,0 Millionen US-Dollar (3,15 US-Dollar pro verwässerter Aktie) zurück, nach 19,3 Millionen US-Dollar (3,58 US-Dollar pro verwässerter Aktie) im Jahr 2023.

Das Unternehmen verzeichnete ein signifikantes Kreditewachstum von 13,1 % im Jahresvergleich, wobei die Bruttokredite 1,2 Milliarden US-Dollar erreichten. Die wichtigen Leistungskennzahlen verbesserten sich im vierten Quartal 2024 im Vergleich zum vierten Quartal 2023, einschließlich der Rendite auf durchschnittliche Vermögenswerte (1,12 % von 0,79 %), die Nettozinsspanne (3,21 % von 2,89 %) und die Effizienzquote (60,2 % von 64,0 %). Die Kreditqualität blieb stark, mit notleidenden Vermögenswerten, die 0,19 % der Gesamtvermögen ausmachten.

Die Bank reduzierte erfolgreich die Finanzierungskosten und die Gesamtkosten der Finanzmittel, während sie starke Kapital- und Liquiditätspositionen aufrechterhielt. Die Gesamtanlagen stiegen im Quartalsvergleich um 43,6 Millionen US-Dollar (3,2 %) und im Jahresvergleich um 14,4 Millionen US-Dollar (1,0 %).

Positive
  • Q4 2024 net income increased 43.8% year-over-year to $4.6 million
  • Loan growth of 13.1% year-over-year to $1.2 billion
  • Net interest margin improved to 3.21% from 2.89% year-over-year
  • Return on average assets increased to 1.12% from 0.79%
  • Strong credit quality with nonperforming assets at 0.19% of total assets
  • Reduction in borrowing costs and overall cost of funds
Negative
  • Full-year 2024 net income decreased 11.9% to $17.0 million from $19.3 million in 2023
  • Full-year EPS declined to $3.15 from $3.58 in 2023
  • Noninterest expense increased 5.8% in Q4 2024 compared to Q4 2023

Insights

The Q4 2024 results demonstrate VABK's successful execution of its strategic initiatives, marked by robust loan growth and improved operational efficiency. The 13.1% year-over-year loan expansion to $1.2 billion is particularly impressive, driven substantially by government-guaranteed loans which increased by $108.6 million. This strategic shift towards government-guaranteed lending reduces portfolio risk while maintaining yield, showing astute balance sheet management.

The bank's margin management deserves attention, with net interest margin expanding to 3.21% from 2.89% year-over-year. This improvement stems from both asset yield enhancement and liability cost optimization. The reduction in FHLB borrowings by $46.5 million year-over-year, combined with the decrease in borrowing costs from 5.35% to 4.33%, reflects successful liability management.

Credit quality metrics remain exemplary, with nonperforming assets at just 0.19% of total assets. The decline in ACL ratio to 0.68% is justified by the shift toward government-guaranteed loans. The efficiency ratio improvement to 60.2% from 64.0% demonstrates effective cost control despite growth initiatives.

The bank's deposit strategy shows sophistication, utilizing ICS reciprocal deposits ($166.6 million) to accommodate larger depositors while maintaining FDIC insurance coverage. This approach helps manage deposit costs while building stable funding relationships. The 3.2% sequential deposit growth in Q4 indicates strong liquidity position without reliance on brokered deposits.

While full-year earnings declined year-over-year, the Q4 trends suggest a positive inflection point in profitability. The stabilization of funding costs in H2 2024, combined with the strong loan growth and improved operating efficiency, positions VABK well for 2025.

CHARLOTTESVILLE, Va., Jan. 23, 2025 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $4.6 million, or $0.85 per diluted share, for the quarter ended December 31, 2024, compared to $3.2 million, or $0.59 per diluted share, recognized for the quarter ended December 31, 2023.  For the twelve months ended December 31, 2024, the Company recognized net income of $17.0 million, or $3.15 per diluted share, compared to $19.3 million, or $3.58 per diluted share, for the twelve months ended December 31, 2023. 

The increase in net income from the fourth quarter of 2023 to the same quarter in 2024 was primarily the result of increased interest income from increased average balances of loans at higher rates than the prior period, combined with decreased interest expense, as we reduced our borrowing expense and overall cost of funds. The decline in full year 2024 net income compared to 2023 was primarily the result of increased cost of funds year-over-year.

President and Chief Executive Officer's comments:  "During 2024, we focused on loan growth and reducing ongoing operating expenses," stated Glenn W. Rust, President and Chief Executive Officer.  "I am proud to announce that we succeeded in both of these endeavors.  We increased loan balances 13% over the prior year while decreasing our overhead costs.  Our credit quality metrics continue to be strong, along with our capital and liquidity positions."

Key Performance Indicators
Fourth Quarter 2024 Compared to Fourth Quarter 2023

  • Return on average assets increased to 1.12% from 0.79%
  • Return on average equity increased to 10.98% from 9.03%
  • Net interest margin (FTE)1 improved to 3.21% from 2.89%
  • Loan-to-deposit ratio increased to 86.8% from 77.5%
  • Efficiency ratio (FTE)1 improved to 60.2% from 64.0%

December 2024 Balance Sheet Highlights

  • The Company continued to experience loan growth in the fourth quarter of 2024. Gross loans outstanding as of December 31, 2024 totaled $1.2 billion, an increase of $20.5 million, or 1.7%, compared to September 30, 2024, and an increase of $143.3 million, or 13.1% compared to December 31, 2023.
  • Outstanding borrowing from the FHLB declined from the prior quarter by $32.5 million and declined from the prior year-end by $46.5 million, as management made a concerted effort to stabilize overall cost of funds. As of December 31, 2024, the Company had unused borrowing facilities in place of approximately $199.0 million and held no brokered deposits.
  • Securities balances declined $17.3 million and $159.3 million from September 30, 2024 and December 31, 2023, respectively, to December 31, 2024; 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 $166.6 million as of December 31, 2024, $145.6 million as of September 30, 2024 and $151.5 million as of December 31, 2023.
  • Total deposits increased $43.6 million, or 3.2% from September 30, 2024 to December 31, 2024 and increased $14.4 million, or 1.0% year-over year.

Loans and Asset Quality

  • Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.19% as of December 31, 2024, 0.33% as of September 30, 2024 and 0.17% as of December 31, 2023.
  • Nonperforming assets amounted to $3.0 million as of December 31, 2024, compared to $5.3 million as of September 30, 2024 and $2.7 million as of December 31, 2023;
    • Twelve loans to eleven borrowers are in non-accrual status, totaling $2.3 million, as of December 31, 2024, compared to $2.1 million as of September 30, 2024 and $1.9 million as of December 31, 2023.
    • Loans 90 days or more past due and still accruing interest amounted to $754 thousand as of December 31, 2024, compared to $3.2 million as of September 30, 2024 and $880 thousand as of December 31, 2023. The past due balance as of December 31, 2024 is comprised of three loans totaling $705 thousand which are 100% government-guaranteed, and three student loans totaling $49 thousand.
    • The Company currently holds no other real estate owned.
  • The period-end Allowance for Credit Losses ("ACL") as a percentage of total loans was 0.68% as of December 31, 2024, 0.70% as of September 30, 2024 and 0.77% as of December 31, 2023. The proportionate increase in government-guaranteed loans over the respective periods is the driver of the decrease in the ACL as a percentage of total loans year-over-year. Balances in government-guaranteed loans have increased $108.6 million from December 31, 2023 to December 31, 2024. 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 $6.8 million as of December 31, 2024.
  • For the three months ended December 31, 2024, the Company recorded a net recovery of provision for credit losses of $126 thousand, as the recovery of previously charged-off loans nearly offset the increase in provision required for new loan balances; this balance is net of an $82 thousand provision for unfunded reserves, as a result of an increase in unfunded construction commitments.

Net Interest Income - Quarterly Comparison

  • Net interest income for the three months ended December 31, 2024 of $12.2 million increased $1.5 million, or 13.8%, compared to the three months ended December 31, 2023, as interest income earned on assets increased and interest expense on deposit accounts and borrowings declined.
  • Net interest margin (FTE), (a non-GAAP financial measure)1, for the three months ended December 31, 2024 was 3.21%, compared to 2.89% for the three months ended December 31, 2023. The increase as compared to the fourth quarter of 2023 was the outcome of the increase in yield on loans and the decrease in cost of funds, both described below.
  • Yield on loans was 5.63% for the three months ended December 31, 2024, compared to 5.47% for the prior year same period. The accretion of the credit mark related to purchased loans positively impacted interest income by 13 bps in the fourth quarter of 2024, compared to 15 bps in the fourth quarter of 2023.
  • The overall cost of funds, including noninterest-bearing deposits, of 194 bps incurred in the three months ended December 31, 2024 decreased 7 bps from 201 bps in the same period in the prior year. Overall, the cost of interest-bearing deposits also decreased period over period by 7 bps, from a cost of 258 bps to 251 bps. Management believes that the Bank's cost of funds stabilized during the first half of 2024, and the cost of funds and cost of interest-bearing deposits have been declining in the second half of 2024. The cost of borrowings also declined from the fourth quarter of 2023 to the fourth quarter of 2024, from 5.35% to 4.33%.

__________________________________________________________________ 

1 See "Reconciliation of Certain Quarterly Non-GAAP Financial Measures" at the end of this release.

Noninterest Income - Quarterly Comparison
Noninterest income for the three months ended December 31, 2024 increased $132 thousand, or 6.2%, compared to the three months ended December 31, 2023, as the gain on early redemption of debt of $525 thousand partially offset the lower wealth management, deposit account, debit card, credit card and ATM fees.

Noninterest Expense - Quarterly Comparison
Noninterest expense for the three months ended December 31, 2024 increased $484 thousand, or 5.8%, compared to the three months ended December 31, 2023.  This increase is primarily the result of increased compensation expense from lender incentives related to increased loan production, as well as increased professional services expense from increased cost of such services.  These increases were partially offset by lower data processing costs, as a result of effective contract negotiations.

Income Taxes - Quarterly Comparison
The effective tax rates amounted to 22.0% and 16.6% for the three months ended December 31, 2024 and 2023, respectively.  The increase in the effective tax rate in the current year period is higher than the statutory rate as a result of the adoption of the proportional amortization method for accounting for low-income housing tax credits, which increased tax expense.  The prior year period effective tax rate is lower than the statutory rate, 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.

Book Value
Book value per share increased to $29.85 as of December 31, 2024, compared to $28.52 as of December 31, 2023, and tangible book value per share (a non-GAAP financial measure)1 was $27.70 as of December 31, 2024 compared to $26.12 as of December 31, 2023.  These values increased as net retained income increased and unrealized losses in the investment portfolio remained relatively flat period over period.

Dividends
Cash dividends of $1.8 million, or $0.33 per share, were declared and paid during the fourth quarter of 2024.

Share Repurchase Plan
Year-to-date, the Company has repurchased 20,350 shares at an average price of $27.42 per share.  No shares were repurchased during the second half of 2024.

_____________________________________________________________________

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 eight banking offices throughout Fauquier and Prince William counties, three banking offices in Charlottesville and Albemarle County, 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, 2023 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 NATIONAL BANKSHARES CORPORATION

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)





December 31, 2024



December 31, 2023*



(Unaudited)





ASSETS






Cash and due from banks

$

5,311



$

18,074


Interest-bearing deposits in other banks


11,792




10,316


Securities:






Available for sale (AFS), at fair value


263,537




420,595


Restricted securities, at cost


6,193




8,385


Total securities


269,730




428,980


Loans, net of deferred fees and costs


1,235,969




1,092,665


Allowance for credit losses


(8,455)




(8,395)


Loans, net


1,227,514




1,084,270


Premises and equipment, net


15,383




16,195


Bank owned life insurance


40,059




38,904


Goodwill


7,768




7,768


Core deposit intangible, net


3,792




5,093


Right of use asset, net


5,551




6,748


Deferred tax asset, net


15,407




15,382


Accrued interest receivable and other assets


14,519




14,287


Total assets

$

1,616,826



$

1,646,017


LIABILITIES AND SHAREHOLDERS' EQUITY






Liabilities:






Demand deposits:






Noninterest-bearing

$

374,079



$

372,857


Interest-bearing


303,405




305,541


Money market and savings deposit accounts


437,619




412,119


Certificates of deposit and other time deposits


308,443




318,581


Total deposits


1,423,546




1,409,098


Federal funds purchased


236




3,462


Borrowings


20,000




66,500


Junior subordinated debt, net


3,506




3,459


Lease liability


5,389




6,504


Accrued interest payable and other liabilities


3,847




3,954


Total liabilities


1,456,524




1,492,977


Commitments and contingent liabilities






Shareholders' equity:






Preferred stock, $2.50 par value


-




-


Common stock, $2.50 par value


13,263




13,258


Capital surplus


106,394




106,045


Retained earnings


82,507




73,781


Accumulated other comprehensive loss


(41,862)




(40,044)


Total shareholders' equity


160,302




153,040


Total liabilities and shareholders' equity

$

1,616,826



$

1,646,017








Common shares outstanding


5,370,912




5,365,982


Common shares authorized


10,000,000




10,000,000


Preferred shares outstanding


-




-


Preferred shares authorized


2,000,000




2,000,000



*  Derived from audited consolidated financial statements

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)

(Unaudited)






For the three months ended



For the twelve months ended




December 31, 2024



December 31, 2023



December 31, 2024



December 31, 2023


Interest and dividend income:













Loans, including fees


$

17,253



$

14,644



$

66,534



$

56,053


Federal funds sold



230




64




765




207


Other interest-bearing deposits



41




59




206




501


Investment securities:













Taxable



1,340




2,880




6,689




11,554


Tax exempt



323




325




1,302




1,308


Dividends



111




102




431




367


Total interest and dividend income



19,298




18,074




75,927




69,990















Interest expense:













Demand deposits



67




73




272




346


Money market and savings deposits



2,939




2,964




11,803




9,673


Certificates and other time deposits



3,463




3,508




15,410




8,617


Borrowings



504




663




1,691




1,934


Federal funds purchased



4




26




29




138


Junior subordinated debt



86




87




346




313


Total interest expense



7,063




7,321




29,551




21,021


Net interest income



12,235




10,753




46,376




48,969


Provision for (recovery of) credit losses



(126)




794




(600)




734


Net interest income after provision for (recovery of) credit losses



12,361




9,959




46,976




48,235















Noninterest income:













Wealth management fees



247




756




1,152




1,976


Deposit account fees



321




389




1,363




1,593


Debit/credit card and ATM fees



429




535




1,914




2,277


Bank owned life insurance income



297




270




1,155




1,764


Gains (losses) on sales of assets, net



-




(20)




36




112


Gain on early redemption of debt



525




-




904




-


Gain on termination of interest rate swap



-




-




-




460


Losses on sales of AFS, net



-




-




(4)




(206)


Other



449




206




1,069




1,125


Total noninterest income



2,268




2,136




7,589




9,101















Noninterest expense:













Salaries and employee benefits



4,162




3,851




15,933




15,900


Net occupancy



906




918




3,662




4,017


Equipment



206




173




720




762


Bank franchise tax



401




291




1,452




1,220


Computer software



214




188




917




778


Data processing



622




799




2,647




2,970


FDIC deposit insurance assessment



200




170




700




710


Marketing, advertising and promotion



159




186




730




1,098


Professional fees



303




82




934




674


Core deposit intangible amortization



307




355




1,301




1,493


Other



1,302




1,285




4,670




4,441


Total noninterest expense



8,782




8,298




33,666




34,063


Income before income taxes



5,847




3,797




20,899




23,273


Provision for income taxes



1,286




629




3,933




4,010


Net income


$

4,561



$

3,168



$

16,966



$

19,263















Net income per common share, basic


$

0.85



$

0.59



$

3.16



$

3.60


Net income per common share, diluted


$

0.85



$

0.59



$

3.15



$

3.58


Weighted average common shares outstanding, basic



5,370,912




5,365,982




5,371,439




5,357,085


Weighted average common shares outstanding, diluted



5,407,489




5,394,713




5,392,114




5,382,145















 

VIRGINIA NATIONAL BANKSHARES CORPORATION

FINANCIAL HIGHLIGHTS

(dollars in thousands, except share and per share data)

(Unaudited)






At or For the Three Months Ended




December 31, 2024



September 30, 2024



June 30, 2024



March 31, 2024



December 31, 2023


Common Share Data:
















Net income


$

4,561



$

4,600



$

4,159



$

3,646



$

3,168


Net income per weighted average share, basic


$

0.85



$

0.86



$

0.77



$

0.68



$

0.59


Net income per weighted average share, diluted


$

0.85



$

0.85



$

0.77



$

0.68



$

0.59


Weighted average shares outstanding, basic



5,370,912




5,370,912




5,377,055




5,366,890




5,365,982


Weighted average shares outstanding, diluted



5,407,489




5,396,936




5,385,770




5,380,081




5,394,713


Actual shares outstanding



5,370,912




5,370,912




5,370,912




5,390,388




5,365,982


Tangible book value per share at period end (non-GAAP) 5


$

27.70



$

28.68



$

26.43



$

25.99



$

26.12


Key Ratios:
















Return on average assets 1



1.12

%



1.15

%



1.05

%



0.91

%



0.79

%

Return on average equity 1



10.98

%



11.44

%



11.07

%



9.57

%



9.03

%

Net interest margin (FTE) 2



3.21

%



3.24

%



3.04

%



2.93

%



2.89

%

Efficiency ratio (FTE) 3



60.2

%



58.6

%



62.7

%



66.8

%



64.0

%

Loan-to-deposit ratio



86.8

%



88.1

%



84.3

%



78.8

%



77.5

%

Net Interest Income:
















Net interest income


$

12,235



$

12,024



$

11,181



$

10,936



$

10,753


Net interest income (FTE) 2


$

12,321



$

12,111



$

11,268



$

11,023



$

10,839


Company Capital Ratios:
















Tier 1 leverage ratio



11.34

%



11.81

%



11.47

%



11.24

%



11.13

%

Total risk-based capital ratio



18.77

%



18.88

%



18.64

%



18.49

%



18.24

%

Assets and Asset Quality:
















Average earning assets


$

1,526,464



$

1,487,182



$

1,491,821



$

1,513,924



$

1,487,910


Average gross loans


$

1,218,460



$

1,181,447



$

1,144,350



$

1,117,570



$

1,061,297


Fair value mark on acquired loans


$

6,785



$

7,301



$

8,237



$

8,811



$

9,399


















Allowance for credit losses on loans:
















Beginning of period


$

8,523



$

8,028



$

8,289



$

8,395



$

7,799


Provision for (recovery of) credit losses



(208)




(3)




(518)




11




713


Charge-offs



(127)




(272)




(208)




(184)




(207)


Recoveries



267




770




465




67




90


Net recoveries (charge-offs)



140




498




257




(117)




(117)


End of period


$

8,455



$

8,523



$

8,028



$

8,289



$

8,395


















Non-accrual loans


$

2,267



$

2,113



$

2,365



$

2,178



$

1,852


Loans 90 days or more past due and still accruing



754




3,214




1,596




876




880


Total nonperforming assets (NPA) 4


$

3,021



$

5,327



$

3,961



$

3,054



$

2,732


















NPA as a % of total assets



0.19

%



0.33

%



0.25

%



0.19

%



0.17

%

NPA as a % of gross loans



0.24

%



0.44

%



0.34

%



0.27

%



0.25

%

ACL to gross loans



0.68

%



0.70

%



0.69

%



0.73

%



0.77

%

Non-accruing loans to gross loans



0.18

%



0.17

%



0.20

%



0.19

%



0.17

%

Net charge-offs (recoveries) to average loans 1



-0.05

%



-0.17

%



-0.09

%



0.04

%



0.04

%



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.

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)

(dollars in thousands)

(Unaudited)






For the three months ended




December 31, 2024



December 31, 2023







Interest









Interest







Average



Income/



Average



Average



Income/



Average




Balance



Expense



Yield/Cost



Balance



Expense



Yield/Cost


ASSETS



















Interest Earning Assets:



















Securities:



















Taxable Securities and Dividends


$

213,609



$

1,451




2.72

%


$

346,248



$

2,982




3.44

%

Tax Exempt Securities 1



66,211




409




2.47

%



66,710




411




2.46

%

Total Securities 1



279,820




1,860




2.66

%



412,958




3,393




3.29

%

Loans:



















Real Estate



921,967




13,159




5.68

%



873,226




11,919




5.42

%

Commercial



261,544




3,507




5.33

%



149,765




2,018




5.35

%

Consumer



34,949




587




6.68

%



38,306




707




7.32

%

      Total Loans



1,218,460




17,253




5.63

%



1,061,297




14,644




5.47

%

Fed Funds Sold



19,313




230




4.74

%



4,709




64




5.39

%

Other interest-bearing deposits



8,871




41




1.84

%



8,946




59




2.62

%

Total Earning Assets



1,526,464




19,384




5.05

%



1,487,910




18,160




4.84

%

Less: Allowance for Credit Losses



(8,555)










(7,833)








Total Non-Earning Assets



109,030










115,114








Total Assets


$

1,626,939









$

1,595,191



























LIABILITIES AND SHAREHOLDERS' EQUITY



















Interest Bearing Liabilities:



















Interest Bearing Deposits:



















Interest Checking


$

263,281



$

67




0.10

%


$

287,228



$

73




0.10

%

Money Market and Savings Deposits



442,660




2,939




2.64

%



413,771




2,964




2.84

%

Time Deposits



318,203




3,463




4.33

%



304,053




3,508




4.58

%

Total Interest-Bearing Deposits



1,024,144




6,469




2.51

%



1,005,052




6,545




2.58

%

Borrowings



46,253




504




4.33

%



49,147




663




5.35

%

Federal funds purchased



284




4




5.60

%



1,755




26




5.88

%

Junior subordinated debt



3,499




86




9.78

%



3,454




87




9.99

%

Total Interest-Bearing Liabilities



1,074,180




7,063




2.62

%



1,059,408




7,321




2.74

%

Non-Interest-Bearing Liabilities:



















Demand deposits



377,596










386,001








Other liabilities



9,965










10,666








Total Liabilities



1,461,741










1,456,075








Shareholders' Equity



165,198










139,116








Total Liabilities & Shareholders' Equity


$

1,626,939









$

1,595,191








Net Interest Income (FTE)





$

12,321









$

10,839





Interest Rate Spread 2









2.43

%









2.10

%

Cost of Funds









1.94

%









2.01

%

Interest Expense as a Percentage of
     Average Earning Assets









1.84

%









1.95

%

Net Interest Margin (FTE) 3









3.21

%









2.89

%



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.

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)

(dollars in thousands)

(Unaudited)






For the twelve months ended




December 31, 2024



December 31, 2023







Interest









Interest







Average



Income/



Average



Average



Income/



Average




Balance



Expense



Yield/Cost



Balance



Expense



Yield/Cost


ASSETS



















Interest Earning Assets:



















Securities:



















Taxable Securities and Dividends


$

249,858



$

7,120




2.85

%


$

400,189



$

11,921




2.98

%

Tax Exempt Securities 1



66,399




1,649




2.48

%



66,895




1,655




2.47

%

Total Securities 1



316,257




8,769




2.77

%



467,084




13,576




2.91

%

Loans:



















Real Estate



908,356




51,532




5.67

%



839,326




47,996




5.72

%

Commercial



220,276




12,430




5.64

%



100,122




5,121




5.11

%

Consumer



37,013




2,572




6.95

%



41,140




2,936




7.14

%

      Total Loans



1,165,645




66,534




5.71

%



980,588




56,053




5.72

%

Fed Funds Sold



14,663




765




5.22

%



3,825




207




5.41

%

Other interest-bearing deposits



8,220




206




2.51

%



15,489




501




3.23

%

Total Earning Assets



1,504,785




76,274




5.07

%



1,466,986




70,337




4.79

%

Less: Allowance for Credit Losses



(8,350)










(7,907)








Total Non-Earning Assets



109,503










115,908








Total Assets


$

1,605,938









$

1,574,987



























LIABILITIES AND SHAREHOLDERS' EQUITY



















Interest Bearing Liabilities:



















Interest Bearing Deposits:



















Interest Checking


$

269,136



$

272




0.10

%


$

321,154



$

346




0.11

%

Money Market and Savings Deposits



425,386




11,803




2.77

%



421,083




9,673




2.30

%

Time Deposits



333,139




15,410




4.63

%



220,348




8,617




3.91

%

Total Interest-Bearing Deposits



1,027,661




27,485




2.67

%



962,585




18,636




1.94

%

Borrowings



36,111




1,691




4.68

%



37,286




1,934




5.19

%

Federal funds purchased



489




29




5.93

%



2,632




138




5.24

%

Junior subordinated debt



3,482




346




9.94

%



3,436




313




9.11

%

Total Interest-Bearing Liabilities



1,067,743




29,551




2.77

%



1,005,939




21,021




2.09

%

Non-Interest-Bearing Liabilities:



















Demand deposits



370,178










418,091








Other liabilities



10,597










11,514








Total Liabilities



1,448,518










1,435,544








Shareholders' Equity



157,420










139,443








Total Liabilities & Shareholders' Equity


$

1,605,938









$

1,574,987








Net Interest Income (FTE)





$

46,723









$

49,316





Interest Rate Spread 2









2.30

%









2.70

%

Cost of Funds









2.06

%









1.48

%

Interest Expense as a Percentage of
     Average Earning Assets









1.96

%









1.43

%

Net Interest Margin (FTE) 3









3.10

%









3.36

%



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.

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

RECONCILIATION OF CERTAIN QUARTERLY NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

(Unaudited)






For the Three Months Ended




December 31, 2024



September 30, 2024



June 30, 2024



March 31, 2024



December 31, 2023


Fully tax-equivalent measures
















Net interest income


$

12,235



$

12,024



$

11,181



$

10,936



$

10,753


Fully tax-equivalent adjustment



86




87




87




87




86


Net interest income (FTE) 1


$

12,321



$

12,111



$

11,268



$

11,023



$

10,839


















Efficiency ratio 2



60.6

%



58.9

%



63.1

%



67.2

%



64.4

%

Fully tax-equivalent adjustment



-0.4

%



-0.3

%



-0.4

%



-0.4

%



-0.4

%

Efficiency ratio (FTE) 3



60.2

%



58.6

%



62.7

%



66.8

%



64.0

%

















Net interest margin



3.19

%



3.22

%



3.01

%



2.91

%



2.87

%

Fully tax-equivalent adjustment



0.02

%



0.02

%



0.03

%



0.02

%



0.02

%

Net interest margin (FTE) 1



3.21

%



3.24

%



3.04

%



2.93

%



2.89

%





As of




December 31, 2024



September 30, 2024



June 30, 2024



March 31, 2024



December 31, 2023


Other financial measures
















Book value per share


$

29.85



$

30.89



$

28.70



$

28.31



$

28.52


Impact of intangible assets 4



(2.15)




(2.21)




(2.27)




(2.32)




(2.40)


Tangible book value per share (non-GAAP)


$

27.70



$

28.68



$

26.43



$

25.99



$

26.12


 



For the Twelve Months Ended




December 31,
2024



December 31,
2023


Fully tax-equivalent measures







Net interest income


$

46,376



$

48,969


Fully tax-equivalent adjustment



347




347


Net interest income (FTE) 1


$

46,723



$

49,316









Efficiency ratio 2



62.4

%



58.7

%

Fully tax-equivalent adjustment



-0.4

%



-0.4

%

Efficiency ratio (FTE) 3



62.0

%



58.3

%








Net interest margin



3.08

%



3.34

%

Fully tax-equivalent adjustment



0.02

%



0.02

%

Net interest margin (FTE) 1



3.10

%



3.36

%



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. 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-2024-fourth-quarter-and-full-year-earnings-302359016.html

SOURCE Virginia National Bankshares Corporation

FAQ

What was VABK's Q4 2024 earnings per share?

VABK reported earnings of $0.85 per diluted share for Q4 2024, compared to $0.59 per diluted share in Q4 2023.

How much did VABK's loan portfolio grow in 2024?

VABK's gross loans increased by $143.3 million or 13.1% year-over-year, reaching $1.2 billion by December 31, 2024.

What was VABK's net interest margin in Q4 2024?

VABK's net interest margin improved to 3.21% in Q4 2024, up from 2.89% in Q4 2023.

How much did VABK pay in dividends for Q4 2024?

VABK paid cash dividends of $1.8 million, or $0.33 per share, during the fourth quarter of 2024.

What was VABK's book value per share as of December 31, 2024?

VABK's book value per share was $29.85 as of December 31, 2024, up from $28.52 as of December 31, 2023.

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Virginia National Bankshares Corporation

NASDAQ:VABK

VABK Rankings

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#871 Ranked by Dividends

VABK Latest News

Oct 25, 2024
VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES QUARTERLY CASH DIVIDEND
Oct 17, 2024
VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2024 THIRD QUARTER EARNINGS
Jul 25, 2024
VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES QUARTERLY CASH DIVIDEND
Jul 19, 2024
VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2024 SECOND QUARTER EARNINGS
May 24, 2024
VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES QUARTERLY CASH DIVIDEND

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Banks - Regional
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