VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES FIRST QUARTER 2022 EARNINGS
Virginia National Bankshares Corporation (NASDAQ: VABK) reported a net income of $4.9 million for Q1 2022, up 227% from $1.5 million in Q1 2021. The net income per diluted share increased to $0.92 from $0.55 year-over-year. Gross loans rose to $1.0 billion, a 62% increase, primarily due to the merger with Fauquier Bankshares. However, noninterest expenses grew by 111% to $10.1 million from the prior year, influenced by the Fauquier acquisition. The company also declared cash dividends amounting to $1.6 million.
- Net income increased by 227% to $4.9 million.
- Net income per diluted share rose to $0.92.
- Gross loans outstanding increased by 62% to $1.0 billion, driven by the merger.
- Noninterest expenses rose by 111% to $10.1 million, due to the merger.
- Book value per share declined from $29.33 to $27.42.
CHARLOTTESVILLE, Va., April 28, 2022 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported net income of
President and Chief Executive Officer, Glenn W. Rust, commented, "The Company finished the first quarter with strong results and marked the one-year anniversary of the merger with Fauquier on April 1, 2022. The Bank is positioned to benefit from recent and anticipated increases in interest rates. We are excited about our strategy for expanded growth into the northern Virginia markets, with the hiring of Bank President Diane Corscadden-Weaver and a new team of lenders, and our credit quality remains strong."
First Quarter 2022 Results of Operations
- The efficiency ratio on a fully tax equivalent basis ("FTE") (a non-GAAP financial measure) was
62.0% for the three months ended March 31, 2022, an improvement over67.7% for the three months ended March 31, 2021. 1 - Return on average assets ("ROAA") for the three months ended March 31, 2022 increased to
1.03% compared to0.68% realized in the same period in the prior year, as the increase in net income outweighed the increase in assets as a result of the merger. - Return on average equity ("ROAE") for the three months ended March 31, 2022 improved to
12.53% compared to7.40% realized in same period in the prior year, as the increase in net income was greater than the increase in equity as a result of the merger. - The Company has not incurred any merger and merger-related expenses since December 31, 2021, compared to
$278 thousand incurred in the three months ended March 31, 2021. - The Company has begun realizing savings associated with the merger and expects to realize significant additional savings in salaries and employee benefits, data processing and professional fees over the next year. Full-time equivalent employee headcount was 215 as of April 1, 2021, the effective date of the merger, and is down to 163 as of March 31, 2022.
Loans and Asset Quality
- Gross loans outstanding at March 31, 2022 totaled
$1.0 billion , an increase of$386 million , or62% , compared to March 31, 2021. The increase is predominantly due to the merger with Fauquier, which added$602.6 million of loan balances, net of the fair value mark, on the consolidated balance sheet beginning April 1, 2021. This increase was offset by the net decline in outstanding balances of Paycheck Protection Program ("PPP") loans of$60.2 million , due to loan forgiveness, the sale of the$6 million student loan portfolio acquired from Fauquier, and other loan paydowns.
__________________________________________________________________
1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.
Loans and Asset Quality (continued)
- Two loans to one borrower are in non-accrual status, totaling
$518 thousand , as of March 31, 2022, compared to$5 thousand as of March 31, 2021. Loans acquired from Fauquier ("acquired loans") that otherwise would be in non-accrual status are not included in this figure, as they earn interest through the yield accretion. - Loans 90 days or more past due and still accruing interest amounted to
$837 thousand as of March 31, 2022, compared to$399 thousand as of March 31, 2021. The March 31, 2022 balance includes a government-guaranteed loan in the amount of$548 thousand . The portfolio only includes four non-insured student loans that are 90 days or more past due and still accruing interest, amounting to$79 thousand . Acquired loans that are greater than 90 days past due and still accruing interest are included in this figure, net of their fair value mark. - The period-end allowance for loan losses ("ALLL") as a percentage of total loans was
0.58% as of March 31, 2022 and0.90% as of March 31, 2021. The decrease is the result of bringing the acquired loans onto the Company's balance sheet at fair value, with a credit and liquidity mark of$21.3 million effective April 1, 2021. The ALLL as a percentage of loans, excluding the impact of the acquired loans and fair value mark (a non-GAAP financial measure)1, would have been0.95% as of March 31, 2022, and the ALLL as a percentage of total loans, excluding PPP loans (a non-GAAP financial measure)1, would have been0.59% as of March 31, 2022. - A provision for loan losses of
$148 thousand was recognized during the three months ended March 31, 2022, compared to$351 thousand recognized in the three months ended March 31, 2021.
Net Interest Income
- Net interest income for the three months ended March 31, 2022 of
$11.4 million increased$5.5 million , or91% , compared to the three months ended March 31, 2021, due to the inclusion of Fauquier's interest income and expense for the current quarter and the lower rates paid on deposits as compared to the prior year. - The fair value accretion on acquired loans positively impacted net interest income by 12 basis points ("bps") during the current quarter.
- The overall cost of funds, including noninterest deposits, of 21 bps incurred in the three months ended March 31, 2022 decreased 13 bps from 34 bps in the same period in the prior year, due primarily to lower rates paid on deposit accounts.
- Low-cost deposits, which include noninterest checking accounts and interest-bearing checking, savings and money market accounts, remained in excess of
91% of total deposits at March 31, 2022 and 2021.
Noninterest Income
Noninterest income for the three months ended March 31, 2022 increased
Noninterest Expense
Noninterest expense for the three months ended March 31, 2022 increased
Book Value
Book value per share was
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1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.
Income Taxes
The effective tax rate for the three months ended March 31, 2022 amounted to
Dividends
Cash dividends of
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 ten banking offices throughout Fauquier and Prince William counties, four 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 Bank also offers, through its networking agreements with third parties, investment advisory and other investment services under Sturman Wealth Advisors. Investment management services are offered through Masonry Capital Management, LLC, a registered investment adviser and wholly-owned subsidiary of the Company.
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 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: general economic and market conditions, including the effects of declines in real estate values, an increase in unemployment levels and general economic contraction as a result of COVID-19 or other pandemics; fluctuations in interest rates, deposits, loan demand, and asset quality; assumptions that underlie the Company's allowance for loan losses; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts or public health events (e.g., COVID-19 or other pandemics), and of governmental and societal responses thereto; the performance of vendors or other parties with which the Company does business; competition; technology; changes in laws, regulations and guidance; changes in accounting principles or guidelines; performance of assets under management; expected revenue synergies and cost savings from the recently completed merger with Fauquier may not be fully realized or realized within the expected timeframe; the businesses of the Company and Fauquier may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; revenues following the merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the merger; and other factors impacting financial services businesses. 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, 2021 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 | ||||||||
March 31, 2022 | December 31, 2021 * | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks | $ | 16,539 | $ | 20,345 | ||||
Interest-bearing deposits in other banks | 311,546 | 336,032 | ||||||
Federal funds sold | 152,523 | 152,463 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 341,361 | 303,817 | ||||||
Restricted securities, at cost | 5,137 | 4,950 | ||||||
Total securities | 346,498 | 308,767 | ||||||
Loans, net of deferred fees and costs | 1,006,962 | 1,061,211 | ||||||
Allowance for loan losses | (5,834) | (5,984) | ||||||
Loans, net | 1,001,128 | 1,055,227 | ||||||
Premises and equipment, net | 24,680 | 25,093 | ||||||
Bank owned life insurance | 36,987 | 31,234 | ||||||
Goodwill | 8,140 | 8,140 | ||||||
Core deposit intangible, net | 7,832 | 8,271 | ||||||
Other intangible assets, net | 257 | 274 | ||||||
Other real estate owned, net | 611 | 611 | ||||||
Right of use asset, net | 7,744 | 7,583 | ||||||
Accrued interest receivable and other assets | 20,722 | 18,144 | ||||||
Total assets | $ | 1,935,207 | $ | 1,972,184 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Demand deposits: | ||||||||
Noninterest-bearing | $ | 523,189 | $ | 522,281 | ||||
Interest-bearing | 451,339 | 446,314 | ||||||
Money market and savings deposit accounts | 644,418 | 665,530 | ||||||
Certificates of deposit and other time deposits | 155,402 | 162,045 | ||||||
Total deposits | 1,774,348 | 1,796,170 | ||||||
Junior subordinated debt, net | 3,379 | 3,367 | ||||||
Lease liability | 7,295 | 7,108 | ||||||
Accrued interest payable and other liabilities | 4,166 | 3,552 | ||||||
Total liabilities | 1,789,188 | 1,810,197 | ||||||
Commitments and contingent liabilities | ||||||||
Shareholders' equity: | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 13,190 | 13,178 | ||||||
Capital surplus | 104,706 | 104,584 | ||||||
Retained earnings | 49,764 | 46,436 | ||||||
Accumulated other comprehensive loss | (21,641) | (2,211) | ||||||
Total shareholders' equity | 146,019 | 161,987 | ||||||
Total liabilities and shareholders' equity | $ | 1,935,207 | $ | 1,972,184 | ||||
Common shares outstanding | 5,326,271 | 5,308,335 | ||||||
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 | ||||||||
For the three months ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Interest and dividend income: | ||||||||
Loans, including fees | $ | 10,769 | $ | 5,938 | ||||
Federal funds sold | 61 | 12 | ||||||
Other interest-bearing deposits | 136 | - | ||||||
Investment securities: | ||||||||
Taxable | 1,012 | 507 | ||||||
Tax exempt | 304 | 176 | ||||||
Dividends | 62 | 34 | ||||||
Total interest and dividend income | 12,344 | 6,667 | ||||||
Interest expense: | ||||||||
Demand and savings deposits | 676 | 377 | ||||||
Certificates and other time deposits | 195 | 280 | ||||||
Borrowings | 48 | 36 | ||||||
Total interest expense | 919 | 693 | ||||||
Net interest income | 11,425 | 5,974 | ||||||
Provision for loan losses | 148 | 351 | ||||||
Net interest income after provision for loan losses | 11,277 | 5,623 | ||||||
Noninterest income: | ||||||||
Wealth management fees | 2,957 | 329 | ||||||
Advisory and brokerage income | 216 | 191 | ||||||
Deposit account fees | 465 | 160 | ||||||
Debit/credit card and ATM fees | 707 | 154 | ||||||
Earnings/increase in value of bank owned life insurance | 211 | 107 | ||||||
Other | 231 | 98 | ||||||
Total noninterest income | 4,787 | 1,039 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 4,731 | 2,402 | ||||||
Net occupancy | 1,197 | 495 | ||||||
Equipment | 283 | 116 | ||||||
Bank franchise tax | 304 | 173 | ||||||
Computer software | 263 | 167 | ||||||
Data processing | 738 | 289 | ||||||
FDIC deposit insurance assessment | 226 | 63 | ||||||
Marketing, advertising and promotion | 267 | 137 | ||||||
Merger and merger-related expenses | - | 278 | ||||||
Plastics expense | 139 | 42 | ||||||
Professional fees | 337 | 177 | ||||||
Core deposit intangible amortization | 439 | - | ||||||
Other | 1,171 | 442 | ||||||
Total noninterest expense | 10,095 | 4,781 | ||||||
Income before income taxes | 5,969 | 1,881 | ||||||
Provision for income taxes | 1,045 | 376 | ||||||
Net income | $ | 4,924 | $ | 1,505 | ||||
Net income per common share, basic | $ | 0.93 | $ | 0.55 | ||||
Net income per common share, diluted | $ | 0.92 | $ | 0.55 | ||||
Weighted average common shares outstanding, basic | 5,311,983 | 2,719,840 | ||||||
Weighted average common shares outstanding, diluted | 5,343,564 | 2,727,448 | ||||||
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||||||||||||||
At or For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
Common Share Data: | ||||||||||||||||||||
Net income per weighted average share, basic | $ | 0.93 | $ | 0.98 | $ | 0.59 | $ | 0.03 | $ | 0.55 | ||||||||||
Net income per weighted average share, diluted | $ | 0.92 | $ | 0.98 | $ | 0.59 | $ | 0.03 | $ | 0.55 | ||||||||||
Weighted average shares outstanding, basic | 5,311,983 | 5,308,108 | 5,306,370 | 5,305,277 | 2,719,840 | |||||||||||||||
Weighted average shares outstanding, diluted | 5,343,564 | 5,338,088 | 5,338,872 | 5,320,290 | 2,727,448 | |||||||||||||||
Actual shares outstanding | 5,326,271 | 5,308,335 | 5,307,235 | 5,305,819 | 2,728,327 | |||||||||||||||
Tangible book value per share at period end | $ | 24.37 | $ | 27.36 | $ | 26.92 | $ | 26.60 | $ | 29.07 | ||||||||||
Key Ratios: | ||||||||||||||||||||
Return on average assets 1 | 1.03 | % | 1.06 | % | 0.65 | % | 0.03 | % | 0.68 | % | ||||||||||
Return on average equity 1 | 12.53 | % | 12.86 | % | 7.70 | % | 0.37 | % | 7.40 | % | ||||||||||
Net interest margin (FTE) 2 | 2.59 | % | 2.72 | % | 3.08 | % | 3.05 | % | 2.83 | % | ||||||||||
Efficiency ratio (FTE) 3 | 62.02 | % | 57.70 | % | 75.17 | % | 99.06 | % | 67.72 | % | ||||||||||
Loan-to-deposit ratio | 56.75 | % | 59.08 | % | 64.04 | % | 71.57 | % | 77.23 | % | ||||||||||
Net Interest Income: | ||||||||||||||||||||
Net interest income | $ | 11,425 | $ | 12,359 | $ | 13,504 | $ | 13,151 | $ | 5,974 | ||||||||||
Net interest income (FTE) 2 | $ | 11,490 | $ | 12,437 | $ | 13,581 | $ | 13,224 | $ | 6,021 | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Tier 1 leverage ratio | 8.03 | % | 7.61 | % | 7.59 | % | 7.66 | % | 9.01 | % | ||||||||||
Total risk-based capital ratio | 15.66 | % | 14.56 | % | 13.74 | % | 13.47 | % | 15.49 | % | ||||||||||
Assets and Asset Quality: | ||||||||||||||||||||
Average Earning Assets | $ | 1,802,461 | $ | 1,817,010 | $ | 1,750,799 | $ | 1,740,338 | $ | 862,373 | ||||||||||
Average Gross Loans | $ | 1,031,593 | $ | 1,088,278 | $ | 1,140,281 | $ | 1,214,123 | $ | 618,902 | ||||||||||
Paycheck Protection Program Loans, end of period | $ | 9,976 | $ | 24,482 | $ | 36,740 | $ | 73,784 | $ | 70,171 | ||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Beginning of period | $ | 5,984 | $ | 5,623 | $ | 5,522 | $ | 5,615 | $ | 5,455 | ||||||||||
Provision for (recovery of) loan losses | 148 | 537 | 267 | (141) | 351 | |||||||||||||||
Charge-offs | (473) | (230) | (208) | (156) | (241) | |||||||||||||||
Recoveries | 175 | 54 | 42 | 204 | 50 | |||||||||||||||
Net recoveries (charge-offs) | (298) | (176) | (166) | 48 | (191) | |||||||||||||||
End of period | $ | 5,834 | $ | 5,984 | $ | 5,623 | $ | 5,522 | $ | 5,615 | ||||||||||
Non-accrual loans 4 | $ | 518 | $ | 495 | $ | 777 | $ | 17 | $ | 5 | ||||||||||
Loans 90 days or more past due and still accruing 5 | 837 | 800 | 1,044 | 2,770 | 399 | |||||||||||||||
OREO | 611 | 611 | 611 | 611 | - | |||||||||||||||
Total nonperforming assets (NPA) | $ | 1,966 | $ | 1,906 | $ | 2,432 | $ | 3,398 | $ | 404 | ||||||||||
NPA as a % of total assets | 0.10 | % | 0.10 | % | 0.13 | % | 0.18 | % | 0.04 | % | ||||||||||
NPA as a % of total loans plus OREO | 0.20 | % | 0.18 | % | 0.22 | % | 0.29 | % | 0.07 | % | ||||||||||
ALLL to total loans | 0.58 | % | 0.56 | % | 0.51 | % | 0.47 | % | 0.90 | % | ||||||||||
ALLL to total loans, excluding PPP loans (non-GAAP) | 0.59 | % | 0.58 | % | 0.52 | % | 0.51 | % | 1.02 | % | ||||||||||
Non-accruing loans to total loans 4 | 0.05 | % | 0.05 | % | 0.07 | % | 0.00 | % | 0.00 | % | ||||||||||
Net charge-offs (recoveries) to average loans 1 | 0.12 | % | 0.06 | % | 0.06 | % | -0.02 | % | 0.12 | % | ||||||||||
1 | Ratio is computed on an annualized basis. |
2 | The net interest margin and net interest income are reported on a FTE basis, using a Federal income tax rate of |
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 | Acquired loans which otherwise would be in non-accrual status are not included in this figure, as they earn interest through the yield accretion. |
5 | Past due loans from the acquired portfolio are included at fair value. |
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||||||||||||||
For the three months ended | ||||||||||||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||||||||||
Interest | Interest | |||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||||||||
(dollars in thousands) | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | ||||||||||||||
ASSETS | ||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||
Securities | ||||||||||||||||||||
Taxable Securities | $ | 248,219 | $ | 1,074 | 1.73 | % | $ | 142,837 | $ | 541 | 1.52 | % | ||||||||
Tax Exempt Securities 1 | 65,145 | 385 | 2.36 | % | 33,234 | 223 | 2.68 | % | ||||||||||||
Total Securities 1 | 313,364 | 1,459 | 1.86 | % | 176,071 | 764 | 1.74 | % | ||||||||||||
Total Loans | 1,031,593 | 10,770 | 4.23 | % | 618,902 | 5,938 | 3.89 | % | ||||||||||||
Fed Funds Sold | 152,477 | 61 | 0.16 | % | 67,400 | 12 | 0.07 | % | ||||||||||||
Other interest-bearing deposits | 305,027 | 120 | 0.16 | % | — | — | — | |||||||||||||
Total Earning Assets | 1,802,461 | 12,410 | 2.79 | % | 862,373 | 6,714 | 3.16 | % | ||||||||||||
Less: Allowance for Loan Losses | (6,027) | (5,476) | ||||||||||||||||||
Total Non-Earning Assets | 140,916 | 45,619 | ||||||||||||||||||
Total Assets | $ | 1,937,350 | $ | 902,516 | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||
Interest Checking | $ | 421,468 | $ | 61 | 0.06 | % | $ | 146,781 | $ | 26 | 0.07 | % | ||||||||
Money Market and Savings Deposits | 656,219 | 615 | 0.38 | % | 284,333 | 351 | 0.50 | % | ||||||||||||
Time Deposits | 158,423 | 195 | 0.50 | % | 99,692 | 280 | 1.14 | % | ||||||||||||
Total Interest-Bearing Deposits | 1,236,110 | 871 | 0.29 | % | 530,806 | 657 | 0.50 | % | ||||||||||||
Short term borrowings | — | — | — | 30,000 | 36 | 0.49 | % | |||||||||||||
Junior subordinated debt | 3,371 | 49 | 5.90 | % | — | — | — | |||||||||||||
Total Interest-Bearing Liabilities | 1,239,481 | 920 | 0.30 | % | 560,806 | 693 | 0.50 | % | ||||||||||||
Non-Interest-Bearing Liabilities: | ||||||||||||||||||||
Demand deposits | 527,091 | 255,227 | ||||||||||||||||||
Other liabilities | 11,347 | 3,948 | ||||||||||||||||||
Total Liabilities | 1,777,919 | 819,981 | ||||||||||||||||||
Shareholders' Equity | 159,431 | 82,535 | ||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,937,350 | $ | 902,516 | ||||||||||||||||
Net Interest Income (FTE) | $ | 11,490 | $ | 6,021 | ||||||||||||||||
Interest Rate Spread 2 | 2.49 | % | 2.66 | % | ||||||||||||||||
Cost of Funds | 0.21 | % | 0.34 | % | ||||||||||||||||
Interest Expense as a Percentage of Average Earning Assets | 0.21 | % | 0.33 | % | ||||||||||||||||
Net Interest Margin (FTE) 3 | 2.59 | % | 2.83 | % | ||||||||||||||||
1 | Tax-exempt income for investment securities has been adjusted to a fully tax-equivalent basis (FTE), using a Federal income tax rate of |
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 | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||||||||||||
Fully tax-equivalent measures | ||||||||||||||||||||
Net interest income | $ | 11,425 | $ | 12,359 | $ | 13,504 | $ | 13,151 | $ | 5,974 | ||||||||||
Fully tax-equivalent adjustment | 65 | 78 | 77 | 73 | 47 | |||||||||||||||
Net interest income (FTE) 1 | $ | 11,490 | $ | 12,437 | $ | 13,581 | $ | 13,224 | $ | 6,021 | ||||||||||
Efficiency ratio 2 | 62.3 | % | 58.0 | % | 75.5 | % | 99.5 | % | 68.2 | % | ||||||||||
Fully tax-equivalent adjustment | -0.3 | % | -0.3 | % | -0.3 | % | -0.4 | % | -0.5 | % | ||||||||||
Efficiency ratio (FTE) 3 | 62.0 | % | 57.7 | % | 75.2 | % | 99.1 | % | 67.7 | % | ||||||||||
Net interest margin | 2.57 | % | 2.70 | % | 3.06 | % | 3.03 | % | 2.81 | % | ||||||||||
Fully tax-equivalent adjustment | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | ||||||||||
Net interest margin (FTE) 1 | 2.59 | % | 2.72 | % | 3.08 | % | 3.05 | % | 2.83 | % | ||||||||||
As of | ||||||||||||||||||||
March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||||||||||||
Other financial measures | ||||||||||||||||||||
ALLL to total loans | 0.58 | % | 0.56 | % | 0.51 | % | 0.47 | % | 0.90 | % | ||||||||||
Impact of acquired loans and fair value mark | 0.37 | % | 0.39 | % | 0.39 | % | 0.41 | % | — | |||||||||||
ALLL to total loans, excluding acquired loans and fair value mark (non-GAAP) | 0.95 | % | 0.95 | % | 0.90 | % | 0.88 | % | 0.90 | % | ||||||||||
ALLL to total loans | 0.58 | % | 0.56 | % | 0.51 | % | 0.47 | % | 0.90 | % | ||||||||||
Impact of PPP loans | 0.01 | % | 0.02 | % | 0.01 | % | 0.04 | % | 0.12 | % | ||||||||||
ALLL to total loans, excluding PPP loans (non-GAAP) | 0.59 | % | 0.58 | % | 0.52 | % | 0.51 | % | 1.02 | % | ||||||||||
Book value per share | $ | 27.42 | $ | 30.50 | $ | 30.13 | $ | 29.89 | $ | 29.33 | ||||||||||
Impact of intangible assets | (3.05) | (3.14) | (3.21) | $ | (3.29) | $ | (0.26) | |||||||||||||
Tangible book value per share (non-GAAP) | $ | 24.37 | $ | 27.36 | $ | 26.92 | $ | 26.60 | $ | 29.07 | ||||||||||
1 | FTE calculations use a Federal income tax rate of |
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. |
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SOURCE Virginia National Bankshares Corporation
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