☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-40305 VIRGINIA NATIONAL BANKSHARES CORPORATION (Exact Name of Registrant as Specified in its Charter) Virg ...

[Earnings Announcement & Corporate Actions](index=1&type=section&id=Earnings%20Announcement%20%26%20Corporate%20Actions) [Second Quarter 2025 Earnings Summary](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Earnings%20Summary) The company reported stable quarterly net income of $4.2 million and year-to-date net income growth to $8.7 million Net Income and Diluted EPS (Q2 & YTD) | Period | Net Income ($ millions) | Diluted EPS ($) | | :----- | :---------------------- | :-------------- | | Q2 2025 | 4.2 | 0.78 | | Q2 2024 | 4.2 | 0.77 | | YTD 2025 | 8.7 | 1.61 | | YTD 2024 | 7.8 | 1.45 | - The increase in net income year-over-year was primarily due to **increased net interest income** from higher average loan balances and **decreased interest expense**[3](index=3&type=chunk) [Dividend Declaration](index=1&type=section&id=1.2%20Dividend%20Declaration) The Board of Directors declared a quarterly cash dividend of $0.36 per share, payable on August 29, 2025 Quarterly Dividend Declaration | Metric | Value | | :----- | :---- | | Dividend per share | $0.36 | | Annual Yield | ~3.78% | [President and CEO's Comments](index=1&type=section&id=1.3%20President%20and%20CEO's%20Comments) The CEO highlighted steady earnings results for 2025, attributing success to a focus on operating efficiencies and asset quality - Year-to-date earnings of **$8.7 million are 12% ahead of 2024**[5](index=5&type=chunk) - Focus on **operating efficiencies and asset quality** enables exceptional service and positive returns for stakeholders[5](index=5&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) [Key Performance Indicators (Summary)](index=1&type=section&id=2.1%20Key%20Performance%20Indicators%20(Summary)) The company demonstrated improved efficiency and net interest margin in Q2 2025 while maintaining a steady return on assets Key Performance Indicators (Q2 2025 vs. Q2 2024) | Indicator | June 30, 2025 | June 30, 2024 | Change | | :---------------------- | :------------ | :------------ | :----- | | Return on average assets | 1.05% | 1.05% | Steady | | Net interest margin (FTE) | 3.40% | 3.04% | +0.36% | | Loan-to-deposit ratio | 89.4% | 84.3% | +5.1% | | Efficiency ratio (FTE) | 61.2% | 62.7% | -1.5% | [Balance Sheet Highlights (Summary)](index=1&type=section&id=2.2%20Balance%20Sheet%20Highlights%20(Summary)) Gross loan balances grew 7.2% year-over-year to $1.2 billion, while securities were reduced to fund higher-yielding assets Balance Sheet Highlights (YoY Changes) | Metric | June 30, 2025 | June 30, 2024 | Change ($ millions) | Change (%) | | :---------------- | :------------ | :------------ | :------------------ | :--------- | | Gross loan balances | $1.2 billion | $1.158 billion | +$83.5 | +7.2% | | Deposit balances | - | - | +$15.2 | +1.1% | - Securities balances **declined $28.3 million** from June 30, 2024, as funds were repurposed to higher yielding loans[11](index=11&type=chunk) [Loans and Asset Quality](index=3&type=section&id=2.3%20Loans%20and%20Asset%20Quality) The company saw continued loan growth and strong credit performance, though nonperforming assets increased due to government-guaranteed loans [Loan Growth and Securities Strategy](index=3&type=section&id=2.3.1%20Loan%20Growth%20and%20Securities%20Strategy) - Gross loan balances **increased $83.5 million (7.2%)** compared to June 30, 2024, totaling $1.2 billion[8](index=8&type=chunk) - Securities balances **declined $28.3 million** from June 30, 2024, as funds were strategically repurposed to higher yielding loans[11](index=11&type=chunk) [Deposit Balances and Borrowings](index=3&type=section&id=2.3.2%20Deposit%20Balances%20and%20Borrowings) - Deposit balances **increased $15.2 million (1.1%)** from June 30, 2024, reflecting efforts to stabilize the cost of funds[8](index=8&type=chunk) - Deposit balances held in Insured Cash Sweep® (ICS) plans amounted to **$159.6 million** as of June 30, 2025[11](index=11&type=chunk) - Outstanding borrowings from the FHLB **increased by $41.0 million to $61.0 million** as of June 30, 2025, from year-end 2024[11](index=11&type=chunk) [Credit Performance and Nonperforming Assets](index=3&type=section&id=2.3.3%20Credit%20Performance%20and%20Nonperforming%20Assets) Nonperforming Assets (NPA) Trends | Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :------------ | | Nonperforming assets ($ millions) | $7.8 | $3.0 | $4.0 | | NPA as a % of total assets | 0.48% | 0.19% | 0.25% | - Non-accrual loans totaled **$2.6 million** as of June 30, 2025, compared to $2.4 million a year prior[11](index=11&type=chunk) - Loans 90 days or more past due and still accruing interest amounted to **$5.2 million**, primarily comprised of **$5.1 million in 100% government-guaranteed loans**[11](index=11&type=chunk) [Allowance for Credit Losses (ACL)](index=3&type=section&id=2.3.4%20Allowance%20for%20Credit%20Losses%20(ACL)) Allowance for Credit Losses (ACL) Trends | Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :----------- | :------------ | | ACL as a percentage of total loans | 0.67% | 0.68% | 0.69% | - The ACL ratio remained **fairly steady** due to nominal changes in loss rates and the increase in government-guaranteed loans[11](index=11&type=chunk) - A net charge to the provision for credit losses of **$3 thousand** was recorded for Q2 2025[11](index=11&type=chunk) [Net Interest Income and Margin](index=3&type=section&id=2.4%20Net%20Interest%20Income%20and%20Margin) Net interest income increased 14.4% year-over-year to $12.8 million, driven by a higher net interest margin of 3.40% Net Interest Income and Margin (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change ($ millions) | Change (%) | | :---------------------- | :------------------- | :------------------- | :------------------ | :--------- | | Net interest income | $12.8 | $11.2 | +$1.6 | +14.4% | | Net interest margin (FTE) | 3.40% | 3.04% | +0.36% | - | | Yield on loans | 5.60% | 5.71% | -0.11% | - | | Overall cost of funds | 177 bps | 210 bps | -33 bps | - | - The decrease in interest expense on interest-bearing deposits was **51 bps**, from 274 bps to 223 bps[11](index=11&type=chunk) - The cost of borrowings **decreased 39 bps** from 5.13% to 4.74%[11](index=11&type=chunk) [Noninterest Income](index=5&type=section&id=2.5%20Noninterest%20Income) Noninterest income for Q2 2025 decreased by 22.5% compared to Q2 2024, primarily due to lower fee income Noninterest Income (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :--------------- | :-------------------- | :-------------------- | :------------------- | :--------- | | Noninterest income | $1,311 | $1,691 | -$380 | -22.5% | - The decrease was primarily a result of **lower wealth management fees**, and lower fee income from deposit accounts and debit card usage[12](index=12&type=chunk) [Noninterest Expense](index=5&type=section&id=2.6%20Noninterest%20Expense) Noninterest expense increased by 6.9% in Q2 2025 compared to Q2 2024, driven by higher taxes and operational costs Noninterest Expense (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 ($ thousands) | Q2 2024 ($ thousands) | Change ($ thousands) | Change (%) | | :--------------- | :-------------------- | :-------------------- | :------------------- | :--------- | | Noninterest expense | $8,681 | $8,122 | +$559 | +6.9% | - **Increased franchise taxes** and the cost of data processing and professional and legal fees for special projects drove increases[13](index=13&type=chunk) [Efficiency Ratio](index=5&type=section&id=2.7%20Efficiency%20Ratio) The company's efficiency ratio (FTE) improved to 61.2% for Q2 2025, primarily due to increased net interest income Efficiency Ratio (FTE) Trends | Period | Efficiency Ratio (FTE) | | :----- | :--------------------- | | Q2 2025 | 61.2% | | Q2 2024 | 62.7% | | YTD 2025 | 61.8% | | YTD 2024 | 64.8% | - The improvement was primarily due to **increased net interest income (FTE)**[14](index=14&type=chunk) [Income Taxes](index=5&type=section&id=2.8%20Income%20Taxes) The effective tax rate for Q2 2025 was 21.9%, influenced by tax credits and tax-exempt income sources Effective Tax Rates | Period | Effective Tax Rate | | :----- | :----------------- | | Q2 2025 | 21.9% | | Q2 2024 | 18.3% | - Differences from the U.S. statutory rate are due to **low-income housing tax credits** and tax-exempt income[15](index=15&type=chunk) [Book Value](index=5&type=section&id=2.9%20Book%20Value) Book value per share increased to $31.67 as of June 30, 2025, driven by retained net income Book Value Per Share Trends | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Book value per share | $31.67 | $28.70 | | Tangible book value per share | $29.63 | $26.43 | - Values increased as **net retained income increased** and the impact of intangible assets declined[16](index=16&type=chunk) [Dividends Paid (Detailed)](index=5&type=section&id=2.10%20Dividends%20Paid%20(Detailed)) Cash dividends of $1.9 million were paid during Q2 2025, with 54% of net income retained by the company Q2 2025 Dividends Paid | Metric | Value | | :-------------------- | :---- | | Cash dividends paid | $1.9 million | | Per share | $0.36 | | Net income retained | 54% | [Company Information & Disclosures](index=6&type=section&id=Company%20Information%20%26%20Disclosures) [About Virginia National Bankshares Corporation](index=6&type=section&id=3.1%20About%20Virginia%20National%20Bankshares%20Corporation) The company is the bank holding company for Virginia National Bank, offering a full range of financial services across Virginia - Headquartered in Charlottesville, Virginia, operating Virginia National Bank[21](index=21&type=chunk) - Offers a full range of banking and financial services, including fiduciary services, through multiple offices[21](index=21&type=chunk) - Common stock trades on the **Nasdaq Capital Market under "VABK"**[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=3.2%20Non-GAAP%20Financial%20Measures) Management utilizes certain non-GAAP financial measures to provide supplemental information for understanding core business results - Management uses **non-GAAP measures** to supplement GAAP for evaluating performance[23](index=23&type=chunk) - Non-GAAP disclosures provide useful supplemental information for understanding **core business operating results**[23](index=23&type=chunk) - Non-GAAP measures should not be viewed as a substitute for GAAP, and **reconciliations are included**[23](index=23&type=chunk) [Forward-Looking Statements](index=6&type=section&id=3.3%20Forward-Looking%20Statements) This release contains forward-looking statements subject to various risks and uncertainties that could affect actual results - Statements may contain forward-looking information subject to **various risks and uncertainties**[25](index=25&type=chunk) - Factors affecting actual results include **inflation, interest rates, market fluctuations, and economic conditions**[25](index=25&type=chunk) - The Company **does not undertake to update** any forward-looking statements[25](index=25&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=7&type=section&id=4.1%20Consolidated%20Balance%20Sheets) The balance sheets detail the company's assets, liabilities, and equity, with total assets reaching $1.63 billion at June 30, 2025 Consolidated Balance Sheets (Selected Data) | Metric ($ thousands) | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------- | :------------ | :----------- | :------------ | | Total assets | $1,632,695 | $1,616,826 | $1,573,820 | | Total deposits | $1,389,065 | $1,423,546 | $1,373,841 | | Total liabilities | $1,461,923 | $1,456,524 | $1,419,656 | | Total shareholders' equity | $170,772 | $160,302 | $154,164 | [Consolidated Statements of Income](index=8&type=section&id=4.2%20Consolidated%20Statements%20of%20Income) The income statements present financial performance for Q2 and YTD 2025, showing net income of $4.2 million and $8.7 million respectively Consolidated Statements of Income (Selected Data) | Metric ($ thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------- | :------ | :------ | :------- | :------- | | Total interest and dividend income | $19,136 | $18,663 | $38,142 | $37,223 | | Total interest expense | $6,340 | $7,482 | $13,052 | $15,106 | | Net interest income | $12,796 | $11,181 | $25,090 | $22,117 | | Total noninterest income | $1,311 | $1,691 | $3,071 | $3,869 | | Total noninterest expense | $8,681 | $8,122 | $17,505 | $16,941 | | Net income | $4,238 | $4,159 | $8,727 | $7,805 | [Financial Highlights](index=9&type=section&id=4.3%20Financial%20Highlights) This section provides a comprehensive overview of key financial metrics and ratios across multiple quarterly periods Financial Highlights (Selected Data) | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :----------- | :----------- | :------------ | | Net income ($ thousands) | $4,238 | $4,489 | $4,561 | $4,600 | $4,159 | | Diluted EPS | $0.78 | $0.83 | $0.85 | $0.85 | $0.77 | | Return on average assets | 1.05% | 1.12% | 1.12% | 1.15% | 1.05% | | Net interest margin (FTE) | 3.40% | 3.28% | 3.21% | 3.24% | 3.04% | | Efficiency ratio (FTE) | 61.2% | 62.4% | 60.2% | 58.6% | 62.7% | | Loan-to-deposit ratio | 89.4% | 86.6% | 86.8% | 88.1% | 84.3% | | Total nonperforming assets ($ thousands) | $7,792 | $5,038 | $3,021 | $5,327 | $3,961 | | NPA as a % of total assets | 0.48% | 0.31% | 0.19% | 0.33% | 0.25% | [Interest Rate and Yield Analysis](index=10&type=section&id=Interest%20Rate%20and%20Yield%20Analysis) [Average Balances, Income, Expenses, Yields and Rates (Three Months)](index=10&type=section&id=5.1%20Average%20Balances%2C%20Income%2C%20Expenses%2C%20Yields%20and%20Rates%20(Three%20Months)) This table details average balances and yields for Q2 2025 and 2024, highlighting a net interest margin (FTE) of 3.40% for Q2 2025 Average Balances, Income, Expenses, Yields and Rates (Q2) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total Earning Assets (Avg Balance) | $1,521,345 | $1,491,821 | | Total Interest-Bearing Liabilities (Avg Balance) | $1,073,611 | $1,063,413 | | Net Interest Income (FTE) ($ thousands) | $12,881 | $11,268 | | Interest Rate Spread | 2.70% | 2.23% | | Cost of Funds | 1.77% | 2.10% | | Net Interest Margin (FTE) | 3.40% | 3.04% | [Average Balances, Income, Expenses, Yields and Rates (Six Months)](index=11&type=section&id=5.2%20Average%20Balances%2C%20Income%2C%20Expenses%2C%20Yields%20and%20Rates%20(Six%20Months)) This table presents average balances and yields for the six months ended June 30, showing a YTD net interest margin (FTE) of 3.34% Average Balances, Income, Expenses, Yields and Rates (YTD) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total Earning Assets (Avg Balance) | $1,525,514 | $1,502,882 | | Total Interest-Bearing Liabilities (Avg Balance) | $1,082,927 | $1,072,704 | | Net Interest Income (FTE) ($ thousands) | $25,262 | $22,291 | | Interest Rate Spread | 2.63% | 2.17% | | Cost of Funds | 1.82% | 2.11% | | Net Interest Margin (FTE) | 3.34% | 2.98% | [Reconciliation of Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation of Certain Quarterly Non-GAAP Financial Measures](index=12&type=section&id=6.1%20Reconciliation%20of%20Certain%20Quarterly%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of key non-GAAP financial measures to their most comparable GAAP measures Reconciliation of Non-GAAP Financial Measures (Selected Data) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Net interest income (GAAP) ($ thousands) | $12,796 | $12,295 | $12,235 | $12,024 | $11,181 | | Net interest income (FTE) ($ thousands) | $12,881 | $12,381 | $12,321 | $12,111 | $11,268 | | Efficiency ratio (GAAP) | 61.5% | 62.8% | 60.6% | 58.9% | 63.1% | | Efficiency ratio (FTE) | 61.2% | 62.4% | 60.2% | 58.6% | 62.7% | | Net interest margin (GAAP) | 3.37% | 3.26% | 3.19% | 3.22% | 3.01% | | Net interest margin (FTE) | 3.40% | 3.28% | 3.21% | 3.24% | 3.04% | | Book value per share | $31.67 | $30.93 | $29.85 | $30.89 | $28.70 | | Tangible book value per share | $29.63 | $28.84 | $27.70 | $28.68 | $26.43 | - FTE calculations use a **Federal income tax rate of 21%**[42](index=42&type=chunk) - Intangible assets include **goodwill and core deposit intangible assets**, net of accumulated amortization[43](index=43&type=chunk)

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 s ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-40305 VIRGINIA NATIONAL BANKSHARES CORPORATION (Exact Name of Registrant as Specified in its Charter) Vir ...

Exhibit 99.1 FOR IMMEDIATE RELEASE INVESTOR RELATIONS CONTACT: Tara Y. Harrison (434) 817-8587 VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2025 FIRST QUARTER EARNINGS AND INCREASE IN QUARTERLY DIVIDEND Charlottesville, VA – April 24, 2025 - 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-40305 VIRGINIA NATIONAL BANKSHARES CORPORATION (Exact name of Registrant as specified in its Charter) | Virginia | 46-2331578 | | --- ...

CHARLOTTESVILLE, Va., Oct. 17, 2024 /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 September 30, 2024, compared to $4.7 million, or $0.86 per diluted share, recognized for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, the Company recognized net income of $12.4 million, or $2.30 per diluted share, compared to $16.1 million, or $2 ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) The company reported reduced net income and EPS for Q2 and YTD 2024, offset by strong loan growth, solid credit quality, and robust capital [Earnings Announcement and Key Highlights](index=1&type=section&id=Earnings%20Announcement%20and%20Key%20Highlights) Net income and diluted EPS declined in Q2 and YTD 2024 due to higher cost of funds and lower credit mark accretion, despite strong loan growth and capital Net Income and Diluted EPS (Q2 & YTD 2024 vs. 2023) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--------------------- | :------------ | :------------ | :------------ | :------------ | | Net Income | $4.2 million | $5.7 million | $7.8 million | $11.4 million | | Diluted EPS | $0.77 | $1.05 | $1.45 | $2.13 | - **Declines in 2024 net income** for both quarterly and year-to-date periods are attributed to **increased cost of funds** and significantly **lower accretion of the credit mark** related to purchased loans compared to 2023[3](index=3&type=chunk) - **Loan balances increased 6%** in the first half of 2024 and **19% year-over-year**, with **credit quality metrics remaining solid**. **Capital and liquidity positions are strong and stable**[3](index=3&type=chunk) - Virginia National Bankshares Corporation has been included again in the **Russell 2000 index**, which is expected to **enhance stock liquidity**[3](index=3&type=chunk) [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The company experienced a decline in net income and EPS, but key performance ratios showed mixed trends with some improvements from Q4 2023 [Net Income and Earnings Per Share](index=1&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share) The Company's net income and diluted earnings per share saw a decrease in both the second quarter and year-to-date periods of 2024 compared to 2023, reflecting a challenging interest rate environment Net Income and Diluted EPS (Q2 & YTD 2024 vs. 2023) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--------------------- | :------------ | :------------ | :------------ | :------------ | | Net Income | $4,159 | $5,651 | $7,805 | $11,442 | | Diluted EPS | $0.77 | $1.05 | $1.45 | $2.13 | [Key Performance Ratios](index=1&type=section&id=Key%20Performance%20Ratios) Key performance indicators showed mixed trends in Q2 2024. Return on average assets and equity improved from Q4 2023, as did the net interest margin and efficiency ratio. The loan-to-deposit ratio also increased, while capital ratios remained strong Key Performance Ratios (Q2 2024 vs. Q4 2023) | Metric | Q2 2024 | Q4 2023 | | :-------------------------- | :-------- | :-------- | | Return on average assets | 1.05% | 0.79% | | Return on average equity | 11.07% | 9.03% | | Net interest margin (FTE) | 3.04% | 2.89% | | Loan-to-deposit ratio | 84.3% | 77.5% | | Efficiency ratio (FTE) | 62.7% | 64.0% | Capital Ratios (Q2 2024 vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | | :-------------------------- | :-------- | :-------- | | Tier 1 leverage ratio | 11.47% | 11.20% | | Total risk-based capital ratio | 18.64% | 18.80% | [Balance Sheet Highlights](index=1&type=section&id=Balance%20Sheet%20Highlights) The company achieved significant loan growth and reduced borrowings, while deposits saw a slight decrease from year-end 2023 [Loans and Deposits](index=1&type=section&id=Loans%20and%20Deposits) The Company experienced continued loan growth in Q2 2024, with gross loans increasing significantly year-over-year. Total deposits saw a slight decrease from December 2023 but an increase year-over-year, with a notable portion held in Insured Cash Sweep (ICS) plans Gross Loans Outstanding | Date | Amount ($ millions) | | :------------- | :------------------ | | June 30, 2024 | $1,200 | | Dec 31, 2023 | $1,134.5 | | June 30, 2023 | $1,015.1 | | **Change:** | | | vs. Dec 31, 2023 | +$65.5 (+6.0%) | | vs. June 30, 2023 | +$184.9 (+19.0%) | Total Deposits | Date | Amount ($ millions) | | :------------- | :------------------ | | June 30, 2024 | $1,373.8 | | Dec 31, 2023 | $1,409.1 | | June 30, 2023 | $1,348.1 | | **Change:** | | | vs. Dec 31, 2023 | -$35.3 (-2.5%) | | vs. June 30, 2023 | +$25.8 (+1.9%) | - Deposit balances held in Insured Cash Sweep (ICS) plans amounted to **$144.8 million** as of June 30, 2024[5](index=5&type=chunk) [Securities and Borrowings](index=3&type=section&id=Securities%20and%20Borrowings) Securities balances declined as funds were repurposed to higher-yielding assets and to reduce outstanding borrowings. The Company significantly reduced its outstanding borrowings and maintains substantial unused borrowing facilities Total Securities | Date | Amount ($ thousands) | | :------------- | :------------------- | | June 30, 2024 | $291,365 | | Dec 31, 2023 | $428,980 | | June 30, 2023 | $481,306 | | **Change:** | | | vs. Dec 31, 2023 | -$137,615 | Outstanding Borrowings | Date | Amount ($ thousands) | | :------------- | :------------------- | | June 30, 2024 | $30,000 | | Dec 31, 2023 | $66,500 | | June 30, 2023 | $59,666 | | **Change:** | |\ | vs. Dec 31, 2023 | -$36,500 (-54.9%) | | vs. June 30, 2023 | -$29,666 (-49.7%) | - The Company had unused borrowing facilities of approximately **$196.7 million** as of June 30, 2024[9](index=9&type=chunk) [Net Interest Income Analysis](index=3&type=section&id=Net%20Interest%20Income%20Analysis) Net interest income decreased year-over-year due to higher funding costs, though net interest margin improved quarter-over-quarter [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income decreased year-over-year in Q2 2024, primarily due to higher interest expense on deposits and borrowings. However, the net interest margin (FTE) improved quarter-over-quarter, driven by an increase in loan yields Net Interest Income | Period | Amount ($ thousands) | | :--------------- | :------------------- | | Q2 2024 | $11,181 | | Q2 2023 | $13,703 | | **Change (YoY):** | -$2,522 (-18.4%) | Net Interest Margin (FTE) | Period | Rate | | :--------------- | :-------- | | Q2 2024 | 3.04% | | Q4 2023 | 2.89% | | Q2 2023 | 3.83% | - The increase in net interest margin compared to Q4 2023 was primarily due to an **increase in yield on loans from 5.47% to 5.71%**[11](index=11&type=chunk) [Yields and Cost of Funds](index=3&type=section&id=Yields%20and%20Cost%20of%20Funds) Loan yields decreased year-over-year, partly due to lower accretion of the credit mark on purchased loans. The overall cost of funds and cost of interest-bearing deposits increased significantly year-over-year but showed signs of stabilization in the first half of 2024 Yield on Loans | Period | Rate | | :--------------- | :-------- | | Q2 2024 | 5.71% | | Q2 2023 | 6.35% | | YTD 2024 | 5.67% | | YTD 2023 | 5.96% | Overall Cost of Funds | Period | Rate | | :--------------- | :-------- | | Q2 2024 | 210 bps | | Q2 2023 | 133 bps | | **Change (YoY):** | +77 bps | - The accretion of the credit mark related to purchased loans positively impacted interest income by **31 bps in Q2 2024**, down from **88 bps in Q2 2023**[11](index=11&type=chunk) [Noninterest Income and Expense](index=5&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income decreased, while noninterest expense also declined, reflecting cost management efforts [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Noninterest income decreased in Q2 2024 compared to the prior year, primarily driven by lower fees from wealth management, deposit accounts, debit/credit cards, and ATMs Total Noninterest Income | Period | Amount ($ thousands) | | :--------------- | :------------------- | | Q2 2024 | $1,691 | | Q2 2023 | $2,045 | | **Change (YoY):** | -$354 (-17.3%) | - The decrease was primarily due to **lower wealth management, deposit account, debit card, credit card, and ATM fees**[13](index=13&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Noninterest expense decreased in Q2 2024 compared to the prior year, mainly due to reductions in compensation, occupancy, data processing, and marketing costs, reflecting efforts to right-size the branch network post-merger Total Noninterest Expense | Period | Amount ($ thousands) | | :--------------- | :------------------- | | Q2 2024 | $8,122 | | Q2 2023 | $8,564 | | **Change (YoY):** | -$442 (-5.2%) | - The decrease was primarily a result of **lower compensation, occupancy, and data processing costs** due to branch network right-sizing from the merger, and **reduced marketing, advertising, and promotion expense**[34](index=34&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Nonperforming assets increased, but the Allowance for Credit Losses decreased due to a rise in government-guaranteed loans [Nonperforming Assets](index=3&type=section&id=Nonperforming%20Assets) Nonperforming assets (NPA) and non-accrual loans increased as of June 30, 2024, compared to prior periods. However, a significant portion of past due loans are government-guaranteed, mitigating some risk Nonperforming Assets (NPA) | Date | Amount ($ thousands) | | :------------- | :------------------- | | June 30, 2024 | $4,000 | | Dec 31, 2023 | $2,700 | | June 30, 2023 | $1,300 | | **NPA as % of total assets:** | | | June 30, 2024 | 0.25% | | Dec 31, 2023 | 0.17% | | June 30, 2023 | 0.08% | Non-accrual Loans | Date | Amount ($ thousands) | | :------------- | :------------------- | | June 30, 2024 | $2,400 | | Dec 31, 2023 | $1,900 | | June 30, 2023 | $1,200 | - Loans 90 days or more past due and still accruing interest amounted to **$1.6 million** as of June 30, 2024, with **$1.5 million being 100% government-guaranteed**[10](index=10&type=chunk) [Allowance for Credit Losses](index=3&type=section&id=Allowance%20for%20Credit%20Losses) The Allowance for Credit Losses (ACL) as a percentage of total loans decreased, primarily driven by the proportionate increase in government-guaranteed loans, which do not require an ACL. The Company recorded a net recovery of provision for credit losses in Q2 2024 Allowance for Credit Losses (ACL) as % of Total Loans | Date | Rate | | :------------- | :-------- | | June 30, 2024 | 0.69% | | Dec 31, 2023 | 0.77% | | June 30, 2023 | 0.81% | - The **decrease in ACL as a percentage of total loans** is due to the **increase in government-guaranteed loans**, which do not require an ACL[10](index=10&type=chunk) - For Q2 2024, the Company recorded a **net recovery of provision for credit losses of $338 thousand**, primarily from a previously charged-off loan[10](index=10&type=chunk) [Capital and Shareholder Returns](index=5&type=section&id=Capital%20and%20Shareholder%20Returns) Book value per share increased, and the company continued its dividend payments and share repurchase program [Book Value](index=5&type=section&id=Book%20Value) Book value per share and tangible book value per share both increased year-over-year, supported by retained income and stable unrealized losses in the investment portfolio Book Value Per Share | Date | Amount ($) | | :------------- | :--------- | | June 30, 2024 | $28.70 | | June 30, 2023 | $26.54 | Tangible Book Value Per Share (Non-GAAP) | Date | Amount ($) | | :------------- | :--------- | | June 30, 2024 | $26.43 | | June 30, 2023 | $24.01 | [Dividends and Share Repurchase](index=5&type=section&id=Dividends%20and%20Share%20Repurchase) The Company declared and paid cash dividends and continued its share repurchase plan during Q2 2024, repurchasing shares at an average price of $27.32 Cash Dividends Declared and Paid (Q2 2024) | Metric | Amount ($) | | :------------- | :----------- | | Total Dividends | $1.8 million | | Per Share | $0.33 | Share Repurchase Activity (Q2 & YTD 2024) | Period | Shares Repurchased | Average Price Per Share ($) | | :------------- | :----------------- | :-------------------------- | | Q2 2024 | 19,476 | $27.32 | | Year-to-date | 20,350 | $27.42 | [Income Taxes](index=5&type=section&id=Income%20Taxes) Effective tax rates remained below the statutory rate due to tax credits and tax-exempt income [Effective Tax Rates](index=5&type=section&id=Effective%20Tax%20Rates) The effective tax rates for Q2 2024 and Q2 2023 were lower than the statutory rate, primarily due to the recognition of low-income housing tax credits and tax-exempt income from municipal bonds and bank-owned life insurance policies Effective Tax Rates | Period | Rate | | :----- | :---- | | Q2 2024 | 18.3% | | Q2 2023 | 18.4% | - The lower effective tax rates are due to **low-income housing tax credits** and **tax-exempt income from municipal bonds and bank-owned life insurance policies**[14](index=14&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) This section provides an overview of the company, its services, stock listing, and important disclaimers regarding financial reporting [About Virginia National Bankshares Corporation](index=6&type=section&id=About%20Virginia%20National%20Bankshares%20Corporation) Virginia National Bankshares Corporation is the bank holding company for Virginia National Bank, offering a full range of banking and financial services through its offices in Virginia. Its common stock trades on the Nasdaq Capital Market under 'VABK' - Virginia National Bankshares Corporation is headquartered in Charlottesville, Virginia, and operates nine banking offices in Fauquier and Prince William counties, three in Charlottesville and Albemarle County, and offices in Winchester and Richmond, Virginia[16](index=16&type=chunk) - The Bank offers a full range of banking and related financial services to individuals, businesses, and charitable organizations, including fiduciary services through VNB Trust and Estate Services[16](index=16&type=chunk) - The Company's common stock trades on the Nasdaq Capital Market under the symbol **'VABK'**[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The Company uses certain non-GAAP financial measures to supplement the evaluation of its performance, believing they provide useful supplemental information for understanding core business operating results, while cautioning they should not substitute GAAP results - Management uses non-GAAP measures to supplement GAAP for evaluating performance and understanding core business operating results[17](index=17&type=chunk) - Non-GAAP disclosures should not be viewed as a substitute for or more important than GAAP results, nor are they necessarily comparable to non-GAAP measures presented by other companies[17](index=17&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to various risks and uncertainties, including economic conditions, interest rates, regulatory changes, and market disruptions, which could cause actual results to differ materially from expectations - Statements in the release may contain forward-looking statements, characterized by words like 'expect,' 'believe,' 'estimate,' 'project,' 'anticipate,' 'intend,' 'will,' 'should,' or similar meanings[40](index=40&type=chunk) - Actual results may differ materially due to factors such as inflation, interest rates, market fluctuations, liquidity, capital requirements, economic conditions, regulatory changes, and cybersecurity threats[40](index=40&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's detailed balance sheets, income statements, and average balance data [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of the Company's financial position, showing total assets, liabilities, and shareholders' equity as of June 30, 2024, December 31, 2023, and June 30, 2023 Consolidated Balance Sheet Summary ($ thousands) | Metric | June 30, 2024 | Dec 31, 2023 | June 30, 2023 | | :------------------------- | :------------ | :------------ | :------------ | | Total Assets | $1,573,820 | $1,646,017 | $1,584,088 | | Total Liabilities | $1,419,656 | $1,492,977 | $1,441,649 | | Total Shareholders' Equity | $154,164 | $153,040 | $142,439 | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income detail the Company's revenues and expenses, leading to net income for the three and six months ended June 30, 2024 and 2023 Consolidated Statements of Income Summary ($ thousands) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :------------------------- | :------------ | :------------ | :------------ | :------------ | | Total Interest & Dividend Income | $18,663 | $18,332 | $37,223 | $34,702 | | Total Interest Expense | $7,482 | $4,629 | $15,106 | $7,586 | | Net Interest Income | $11,181 | $13,703 | $22,117 | $27,116 | | Total Noninterest Income | $1,691 | $2,045 | $3,869 | $4,321 | | Total Noninterest Expense | $8,122 | $8,564 | $16,941 | $17,425 | | Net Income | $4,159 | $5,651 | $7,805 | $11,442 | [Average Balances, Income and Expenses, Yields and Rates](index=13&type=section&id=Average%20Balances%2C%20Income%20and%20Expenses%2C%20Yields%20and%20Rates) This section provides a detailed breakdown of average balances for interest-earning assets and interest-bearing liabilities, along with their corresponding interest income/expense and average yields/costs for the three and six months ended June 30, 2024 and 2023 Average Balances, Income, Yields & Rates (Q2 2024 vs. Q2 2023) ($ thousands) | Metric | Q2 2024 Average Balance | Q2 2024 Interest Income/Expense | Q2 2024 Average Yield/Cost | Q2 2023 Average Balance | Q2 2023 Interest Income/Expense | Q2 2023 Average Yield/Cost | | :------------------------- | :---------------------- | :------------------------------ | :------------------------- | :---------------------- | :------------------------------ | :------------------------- | | Total Earning Assets | $1,491,821 | $18,750 | 5.06% | $1,443,048 | $18,418 | 5.12% | | Total Interest-Bearing Liabilities | $1,063,413 | $7,482 | 2.83% | $981,361 | $4,629 | 1.89% | | Net Interest Income (FTE) | | $11,268 | | | $13,789 | | | Interest Rate Spread | | | 2.23% | | | 3.23% | | Cost of Funds | | | 2.10% | | | 1.33% | | Net Interest Margin (FTE) | | | 3.04% | | | 3.83% | Average Balances, Income, Yields & Rates (YTD 2024 vs. YTD 2023) ($ thousands) | Metric | YTD 2024 Average Balance | YTD 2024 Interest Income/Expense | YTD 2024 Average Yield/Cost | YTD 2023 Average Balance | YTD 2023 Interest Income/Expense | YTD 2023 Average Yield/Cost | | :------------------------- | :----------------------- | :------------------------------- | :-------------------------- | :----------------------- | :------------------------------- | :-------------------------- | | Total Earning Assets | $1,502,882 | $37,397 | 5.00% | $1,459,051 | $34,877 | 4.82% | | Total Interest-Bearing Liabilities | $1,072,704 | $15,106 | 2.83% | $977,972 | $7,586 | 1.56% | | Net Interest Income (FTE) | | $22,291 | | | $27,291 | | | Interest Rate Spread | | | 2.17% | | | 3.26% | | Cost of Funds | | | 2.11% | | | 1.08% | | Net Interest Margin (FTE) | | | 2.98% | | | 3.77% | [Reconciliation of Non-GAAP Financial Measures](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP measures, providing additional insights into financial performance [Non-GAAP Reconciliations](index=16&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of various GAAP financial measures to their non-GAAP fully tax-equivalent (FTE) counterparts and tangible book value per share, offering a clearer view of operational efficiency and underlying financial performance Net Interest Income (FTE) Reconciliation ($ thousands) | Metric | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :-------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Net interest income (GAAP) | $11,181 | $10,936 | $10,753 | $11,100 | $13,703 | | FTE adjustment | $87 | $87 | $86 | $87 | $86 | | Net interest income (FTE) | $11,268 | $11,023 | $10,839 | $11,187 | $13,789 | Efficiency Ratio (FTE) Reconciliation | Metric | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Efficiency ratio (GAAP) | 63.1% | 67.2% | 64.4% | 60.7% | 54.4% | | FTE adjustment | -0.4% | -0.4% | -0.4% | -0.4% | -0.3% | | Efficiency ratio (FTE) | 62.7% | 66.8% | 64.0% | 60.3% | 54.1% | Tangible Book Value Per Share Reconciliation ($) | Metric | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :-------------------------- | :------ | :------ | :------ | :------ | :------ | | Book value per share | $28.70 | $28.31 | $28.52 | $25.29 | $26.54 | | Impact of intangible assets | (2.27) | (2.32) | (2.40) | (2.46) | (2.53) | | Tangible book value per share (non-GAAP) | $26.43 | $25.99 | $26.12 | $22.83 | $24.01 |

CHARLOTTESVILLE, Va., July 19, 2024 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $4.2 million, or $0.77 per diluted share, for the quarter ended June 30, 2024, compared to $5.7 million, or $1.05 per diluted share, recognized for the quarter ended June 30, 2023. For the six months ended June 30, 2024, the Company recognized net income of $7.8 million, or $1.45 per diluted share, compared to $11.4 million, or $2.13 per diluted s ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION VIRGINIA NATIONAL BANKSHARES CORPORATION (Exact Name of Registrant as Specified in its Charter) WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-40305 Vir ...