Virginia National Bankshares (US:VABK)2025-05-09 14:04Financial Performance - Net income for the first quarter of 2025 was $4,489 thousand, a 23.2% increase from $3,646 thousand in the first quarter of 2024[13]. - Total comprehensive income for the three months ended March 31, 2025, was $8,010 thousand, significantly higher than $1,138 thousand for the same period in 2024[15]. - Basic net income per share for the three months ended March 31, 2025, was $0.83, up from $0.68 in the same quarter of 2024, reflecting a growth of 22.1%[13]. - Diluted net income per share for the three months ended March 31, 2025, was also $0.83, reflecting an increase from $0.68 in 2024[73]. - The Company reported a total of $1.1 million in gross write-offs across all loan categories for the year ended December 31, 2024[64]. Income and Expenses - Net interest income for the three months ended March 31, 2025, was $12,294 thousand, an increase of 12.4% compared to $10,936 thousand for the same period in 2024[13]. - Total noninterest income decreased to $1,760 thousand for the three months ended March 31, 2025, down from $2,178 thousand in the same period of 2024, a decline of 19.2%[13]. - Total noninterest expense remained stable at $8,824 thousand, slightly up from $8,819 thousand, indicating a marginal increase of 0.06%[13]. - Total noninterest expense for the Bank segment was $8,468, with salaries and employee benefits accounting for $3,697[96]. Assets and Liabilities - Total assets increased to $1,634,025 thousand as of March 31, 2025, up from $1,616,826 thousand at December 31, 2024, representing a growth of 1.3%[11]. - Total deposits increased to $1,434,213 thousand as of March 31, 2025, compared to $1,423,546 thousand at the end of 2024, marking a growth of 0.5%[11]. - Total shareholders' equity increased to $166,781,000 as of March 31, 2025, up from $160,302,000 as of December 31, 2024, reflecting a growth of 4.2%[16]. - The carrying value of cash and cash equivalents increased from $17,103 thousand as of December 31, 2024, to $29,573 thousand as of March 31, 2025, representing a growth of approximately 72.8%[91]. Loans and Credit Losses - The allowance for credit losses was $8,328 thousand as of March 31, 2025, slightly down from $8,455 thousand at December 31, 2024[11]. - The provision for credit losses for the three months ended March 31, 2025, was a recovery of $105 thousand, compared to a provision of $11 thousand for the same period in 2024[57]. - The total recorded investment in loans by credit quality indicators as of March 31, 2025, was $610,835,000, with $252,821,000 classified as "Pass" loans[63]. - The company reported a total of $2,764 thousand in nonaccrual loans as of March 31, 2025, compared to $2,267 thousand as of December 31, 2024, representing an increase of 22%[44]. Securities and Fair Value - Total securities available for sale amounted to $262,923,000 as of March 31, 2025, with an unrealized loss of $48,556,000[29]. - The fair value of available-for-sale securities as of March 31, 2025, was $262,923, slightly down from $263,537 at December 31, 2024[91]. - The fair value of U.S. Government treasuries was $1,499,000 as of March 31, 2025, compared to $1,493,000 as of December 31, 2024[88]. - The company follows ASC 820 for fair value measurements, categorizing assets into three levels based on market activity and input reliability[85]. Stock and Compensation - The company recognized $34 thousand in compensation expense for stock options during the three months ended March 31, 2025, compared to $24 thousand in 2024[78]. - As of March 31, 2025, there were 223,384 stock options outstanding with a weighted average exercise price of $33.08[78]. - The total number of nonvested restricted stock grants as of March 31, 2025, was 73,485 shares, with an average fair value of $33.16 per share[82]. - The Company has $2.1 million in unrecognized compensation expense for restricted stock grants remaining to be recognized through 2029[81]. Strategic Decisions - The Company sold the membership interests in Masonry Capital Management, LLC effective April 1, 2024, and will receive an annual revenue-share for six years[94]. - A share repurchase plan was approved to buy back up to 5% of outstanding common stock, with no shares repurchased during the three months ended March 31, 2025[99]. - The Company expects to receive an annual revenue-share amount from Masonry Capital for six years following the sale of its membership interests, indicating a strategic shift in revenue generation[94].