Virginia National Bankshares (VABK) - 2025 Q3 - Quarterly Report

Financial Performance - Net interest income for the three months ended September 30, 2025, was $13,072,000, an increase of 8.7% compared to $12,024,000 for the same period in 2024[13] - Net income for the nine months ended September 30, 2025, was $13,303,000, representing a 7.2% increase from $12,405,000 for the same period in 2024[13] - For the three months ended September 30, 2025, net income was $4,576 thousand, compared to $4,600 thousand for the same period in 2024, representing a decrease of 0.5%[15] - For the nine months ended September 30, 2025, net income increased to $13,303 thousand, up 7.2% from $12,405 thousand in 2024[15] - Total comprehensive income for the three months ended September 30, 2025, was $8,286 thousand, compared to $13,285 thousand in 2024, reflecting a decrease of 37.5%[15] - Total comprehensive income for the nine months ended September 30, 2025, was $21,981 thousand, an increase of 21.5% from $18,146 thousand in 2024[15] Assets and Liabilities - Total assets as of September 30, 2025, were $1,606,432,000, a decrease of 1.3% from $1,616,826,000 on December 31, 2024[11] - Total deposits as of September 30, 2025, were $1,384,888,000, down from $1,423,546,000 as of December 31, 2024, reflecting a decrease of 2.7%[11] - The company's common shares outstanding as of September 30, 2025, were 5,391,979, compared to 5,370,912 as of December 31, 2024[11] - The balance of accumulated other comprehensive loss decreased to $(33,184) thousand as of September 30, 2025, from $(34,303) thousand in 2024[16] - The company experienced a net increase in cash and cash equivalents of $5,992 thousand for the nine months ended September 30, 2025, compared to a decrease of $(9,225) thousand in 2024[18] Income and Expenses - The total noninterest expense for the three months ended September 30, 2025, was $8,404,000, an increase of 5.8% from $7,943,000 for the same period in 2024[13] - Noninterest income for the nine months ended September 30, 2025, was $4,421,000, a decrease of 16.9% from $5,321,000 for the same period in 2024[13] - The company's net interest income after provision for credit losses for the nine months ended September 30, 2025, was $37,987,000, up from $34,615,000 for the same period in 2024[13] - Noninterest expenses totaled $25,908,000, with salaries and employee benefits being the largest component at $11,708,000[101] Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2025, was $332,000, compared to a recovery of $114,000 for the same period in 2024[13] - The allowance for credit losses (ACL) was $8,510 thousand as of September 30, 2025, slightly higher than $8,455 thousand on December 31, 2024[40] - The provision for loan losses for the nine months ended September 30, 2025, was a recovery of $105,000 compared to a provision of $511,000 for the same period in 2024[57] - Charge-offs for the nine months ended September 30, 2025, totaled $146,000, while recoveries amounted to $56,000[57] Securities and Investments - The company reported unrealized gains on available-for-sale securities of $10,986 thousand for the nine months ended September 30, 2025, compared to $7,267 thousand in 2024[18] - As of September 30, 2025, total securities available for sale amounted to $252.952 million, with unrealized losses of $42.033 million[28] - The fair value of mortgage-backed securities was $126.270 million as of September 30, 2025, with an amortized cost of $145.747 million[28] - The company believes that the impairments in its securities portfolio are temporary and no credit loss has been realized in its consolidated statements of income[32] Loan Portfolio - As of September 30, 2025, total loans amounted to $1,235,000 thousand, a slight decrease from $1,235,969 thousand on December 31, 2024, representing a decline of 0.1%[40] - The net loans as of September 30, 2025, were $1,226,490 thousand, compared to $1,227,514 thousand as of December 31, 2024, indicating a decrease of 0.1%[40] - The aging of the loan portfolio shows that as of September 30, 2025, total nonaccrual loans were $2,568 thousand, with $2,568 thousand in 1-4 family residential mortgages[42][44] - The company categorizes loans into various risk ratings, including "Pass," "Watch," "Special Mention," "Substandard," and "Doubtful," to assess credit quality[58][59][61][62] Stock and Compensation - Basic net income per share for the three months ended September 30, 2025, was $0.85, compared to $0.86 for the same period in 2024[73] - The 2022 Stock Incentive Plan was amended to increase the shares available for issuance by 150,000 shares at the Annual Meeting of Shareholders on July 24, 2025[74] - The total outstanding stock options as of September 30, 2025, is 225,454, with a weighted average exercise price of $33.10[79] - The company issued 21,068 restricted shares during the nine months ended September 30, 2025, with $637,000 expensed for restricted stock grants[82]