Virginia National Bankshares (VABK) - 2025 Q2 - Quarterly Report

Financial Performance - Net income for the six months ended June 30, 2025, reached $8,727 thousand, representing a 11.8% increase from $7,805 thousand in the same period of 2024[13] - Net income for the three months ended June 30, 2025, was $4,238,000, compared to $4,159,000 for the same period in 2024, representing a 1.9% increase[15] - Total comprehensive income for the six months ended June 30, 2025, was $13,695,000, up from $4,861,000 in 2024, indicating a significant increase[15] - Basic net income per share for the three months ended June 30, 2025, was $0.79, compared to $0.77 in 2024, representing a 2.6% increase[73] - Diluted net income per share for the six months ended June 30, 2025, was $1.61, up from $1.45 in 2024, showing an increase of 11.0%[73] Assets and Liabilities - Total assets increased to $1,634,922 thousand as of June 30, 2025, compared to $1,616,826 thousand at December 31, 2024, reflecting a growth of 1.9%[11] - The company’s total liabilities stood at $1,464,150 thousand as of June 30, 2025, compared to $1,456,524 thousand at December 31, 2024, reflecting a slight increase of 0.5%[11] - The total balance of shareholders' equity as of June 30, 2025, was $170,772,000, an increase from $154,164,000 as of June 30, 2024[16] Income and Expenses - Net interest income for the three months ended June 30, 2025, was $12,796 thousand, up 14.4% from $11,181 thousand for the same period in 2024[13] - Noninterest income for the six months ended June 30, 2025, was $3,071 thousand, compared to $3,869 thousand for the same period in 2024, indicating a decrease of 20.6%[13] - The total noninterest expense for the Bank segment for the three months ended June 30, 2025, was $8,681, compared to $8,122 for the same period in 2024[98][100] Loans and Credit Quality - Loans, net of deferred fees and costs, amounted to $1,241,712 thousand as of June 30, 2025, a slight increase from $1,235,969 thousand at December 31, 2024[11] - The provision for credit losses for the three months ended June 30, 2025, was $3 thousand, compared to a recovery of $338 thousand in the same period of 2024[13] - The company reported a recovery of credit losses of $(157,000) for the six months ended June 30, 2025, compared to $(360,000) in 2024, showing improved credit quality[18] - The total loans categorized as 90 days or more past due were $5,178 thousand as of June 30, 2025[40] - The total charge-offs for the six months ended June 30, 2025, were $181 thousand, with recoveries amounting to $88 thousand[56] Cash Flow and Investments - Cash flows from operating activities for the six months ended June 30, 2025, provided $8,830,000, compared to a use of $3,250,000 in 2024, reflecting improved operational efficiency[18] - Net cash provided by investing activities for the six months ended June 30, 2025, was $10,026,000, compared to $69,042,000 in 2024, indicating a decrease in investment activity[18] - The company did not sell any available-for-sale securities during the six months ended June 30, 2025, while it sold $39.6 million in securities in the same period of 2024, incurring a pre-tax loss of $4,000[33] Securities and Fair Value - As of June 30, 2025, total securities available for sale amounted to $301.6 million, with a fair value of $254.9 million, reflecting an unrealized loss of $46.7 million[27] - The fair value of U.S. Government agencies securities was $30.7 million as of June 30, 2025, with unrealized losses of $4.1 million[28] - The fair value of restricted securities was $8,120,000 as of June 30, 2025, consistent with the carrying value[92] Shareholder Returns - The company declared cash dividends of $0.33 per share in 2024 and increased it to $0.36 per share in 2025, reflecting a commitment to returning value to shareholders[16] - The Board of Directors approved a share repurchase plan of up to 5% of outstanding common stock during Q2 2023, with 20,350 shares repurchased at an average price of $27.42 through June 30, 2025[103][104] Lease Liabilities - Lease liability increased to $6,888,000 as of June 30, 2025, compared to $5,389,000 in 2024, reflecting a 27.8% increase[71] - Total lease expense for the three months ended June 30, 2025, was $435,000, slightly up from $430,000 in 2024, indicating a 1.2% increase[71]