Virginia National Bankshares (US:VABK)2024-05-15 21:31Financial Performance - Net income for the three months ended March 31, 2024, was $3,646 thousand, a decrease of 37.0% compared to $5,791 thousand for the same period in 2023[13] - The company reported a net income per common share of $0.68 for the first quarter of 2024, down from $1.08 in the same quarter of 2023[13] - Net income for Q1 2024 was $3.646 million, a decrease of 37.1% from $5.791 million in Q1 2023[18] - The company reported a total comprehensive income of $1,138,000, down from $11,562,000 in the prior year, indicating a significant decline[15] - For the three months ended March 31, 2024, diluted net income per share was $0.68, a decrease of 37.0% compared to $1.08 for the same period in 2023[77] Income and Expenses - Total interest and dividend income increased to $18,560 thousand for the three months ended March 31, 2024, up 13.2% from $16,370 thousand in the prior year[13] - Net interest income after recovery of credit losses was $10,958 thousand, down 19.8% from $13,661 thousand in the same quarter of 2023[13] - Total noninterest income for the quarter was $2,178 thousand, slightly down from $2,276 thousand in the previous year[13] - Total noninterest expense decreased marginally to $8,819 thousand from $8,861 thousand year-over-year[13] - Total interest expense rose significantly to $7,624,000, compared to $2,957,000 in the prior year, reflecting a 157% increase[13] Assets and Liabilities - Total assets decreased to $1,619,496 thousand as of March 31, 2024, down from $1,646,017 thousand at December 31, 2023, representing a decline of approximately 1.6%[11] - The company’s total liabilities decreased to $1,466,919,000 as of March 31, 2024, from $1,492,977,000 as of December 31, 2023[111] - Total deposits rose to $1,431,972 thousand as of March 31, 2024, an increase of 1.6% from $1,409,098 thousand at the end of 2023[11] - The allowance for credit losses stood at $8,289 thousand as of March 31, 2024, compared to $8,395 thousand at the end of 2023[11] - The company’s common shares outstanding increased to 5,390,388 as of March 31, 2024, from 5,365,982 at December 31, 2023[11] Securities and Investments - Total securities available for sale decreased to $341.857 million as of March 31, 2024, down from $420.595 million at the end of 2023, a reduction of 18.7%[27] - The company reported an unrealized loss of $54.0 million on securities held in an unrealized loss position, which includes 279 individual securities[27] - The fair value of U.S. Government agencies decreased to $36.451 million from $39.580 million, reflecting an unrealized loss of $5.550 million[29] - The total fair value of debt securities available for sale was $341.857 million, with an unrealized loss of $53.973 million[36] - The company has not recognized any credit losses on securities in an unrealized loss position, as management believes these impairments are temporary[31] Loans and Credit Quality - The loan portfolio totaled $1,128.168 million as of March 31, 2024, an increase from $1,092.665 million as of December 31, 2023[38] - The aging of the loan portfolio shows that total loans 90 days or more past due amounted to $2,178 thousand as of March 31, 2024, compared to $1,852 thousand as of December 31, 2023, reflecting an increase of approximately 17.6%[41] - The company modified one 1-4 family residential mortgage loan for $703 thousand during the three months ended March 31, 2024, representing 0.002% of this loan segment[44] - The provision for credit losses for the three months ended March 31, 2024, was a recovery of $22 thousand, compared to a recovery of $248 thousand for the same period in 2023, indicating a significant decrease in recovery[57] - The company reported charge-offs of $184,000 for the three months ended March 31, 2024, compared to $721,000 for the same period in 2023, showing a decrease of approximately 74.5%[56] Lease Liabilities and Expenses - The Company’s lease liability was reported at $6,451 thousand as of March 31, 2024, an increase from $5,968 thousand in the previous year, showing a rise of about 8.06%[75] - The Company’s total lease expense for the three months ended March 31, 2024, was $441 thousand, a decrease from $634 thousand in the same period of 2023, indicating a reduction of approximately 30.43%[75] - The cash paid for lease liabilities was $388 thousand for the three months ended March 31, 2024, compared to $512 thousand in the same period of 2023, indicating a reduction of about 24.2%[75] - The weighted average discount rate for lease liabilities increased to 2.71% as of March 31, 2024, compared to 2.05% in the previous year[75] - The estimated future amortization expense for core deposit intangible assets totals $4,750 thousand over the next several years, with the highest amount of $1,110 thousand expected in 2025[71] Stock Options and Compensation - The company recognized $24 thousand in compensation expense for stock options during the three months ended March 31, 2024, compared to $42 thousand for the same period in 2023[83] - As of March 31, 2024, there were 181,101 stock options outstanding with a weighted average exercise price of $33.89[83] - The company issued 25,280 restricted shares during the three months ended March 31, 2024, with an expense of $171 thousand recognized for these grants[86] - The company has $221 thousand in unrecognized compensation expense related to stock options remaining to be recognized through 2028[83] - The 2022 Stock Incentive Plan has 150,000 shares available for issuance, with 93,988 shares remaining for grant as of March 31, 2024[81]