VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2024 THIRD QUARTER EARNINGS

Core Insights - Virginia National Bankshares Corporation reported a quarterly net income of $4.6 million, or $0.85 per diluted share, for Q3 2024, a slight decrease from $4.7 million, or $0.86 per diluted share, in Q3 2023 [1] - Year-to-date net income for the first nine months of 2024 was $12.4 million, down from $16.1 million in the same period of 2023 [1][2] Financial Performance - The decline in net income is attributed to increased cost of funds and the absence of bank-owned life insurance proceeds received in the prior year, although there was an increase in interest income and a decrease in operating expenses [2] - Net interest income for Q3 2024 was $12.0 million, an increase of $924 thousand, or 8.3%, compared to Q3 2023 [6] - The net interest margin (FTE) improved to 3.24% in Q3 2024 from 2.89% in Q3 2023, primarily due to an increase in loan yields [6][23] Loan and Asset Quality - Gross loans outstanding as of September 30, 2024, totaled $1.2 billion, reflecting an increase of $122.8 million, or 11.2%, from December 31, 2023, and an increase of $195.0 million, or 19.1%, year-over-year [4] - Nonperforming assets as a percentage of total assets were 0.33% as of September 30, 2024, up from 0.17% at the end of 2023 [5][24] - The allowance for credit losses (ACL) as a percentage of total loans was 0.70% as of September 30, 2024, down from 0.77% at the end of 2023, driven by an increase in government-guaranteed loans [5][24] Operational Efficiency - The efficiency ratio (FTE) improved to 58.6% in Q3 2024 from 62.7% in Q2 2024, indicating better operational efficiency [4][23] - Noninterest expense decreased by $397 thousand, or 4.8%, compared to Q3 2023, primarily due to lower compensation and occupancy costs [10] Capital and Liquidity - The company maintained solid capital and liquidity positions, with unused borrowing facilities of approximately $160.4 million as of September 30, 2024 [4] - Book value per share increased to $30.89 as of September 30, 2024, compared to $25.29 a year earlier, reflecting net retained income growth and a decline in unrealized losses [11] Dividends and Share Repurchase - Cash dividends of $1.8 million, or $0.33 per share, were declared and paid during Q3 2024 [13] - Year-to-date, the company repurchased 20,350 shares at an average price of $27.42 per share, with no shares repurchased during Q3 2024 [13]