VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2025 SECOND QUARTER EARNINGS AND QUARTERLY DIVIDEND

Core Insights - Virginia National Bankshares Corporation reported a quarterly net income of $4.2 million, or $0.78 per diluted share, for Q2 2025, compared to $4.2 million, or $0.77 per diluted share, for Q2 2024. Year-to-date net income for the first half of 2025 was $8.7 million, or $1.61 per diluted share, up from $7.8 million, or $1.45 per diluted share, in the same period of 2024 [1][2][10]. Financial Performance - The increase in net income year-over-year was primarily due to higher net interest income, driven by increased interest income from higher average loan balances and decreased interest expense from lower costs of funds associated with deposits and borrowings [2][10]. - Noninterest income decreased by $380 thousand, or 22.5%, compared to Q2 2024, mainly due to lower wealth management fees and reduced fee income from deposit accounts and debit card usage [10]. - Noninterest expense increased by $559 thousand, or 6.9%, compared to Q2 2024, attributed to higher franchise taxes and costs related to data processing and professional services [11]. Key Ratios and Metrics - Return on average assets remained steady at 1.05% [25]. - Net interest margin improved to 3.40% from 3.04% year-over-year [25]. - The efficiency ratio improved to 61.2% from 62.7% in the same period last year, reflecting increased net interest income [12][25]. Asset Quality - Nonperforming assets as a percentage of total assets were 0.48% as of June 30, 2025, compared to 0.25% as of June 30, 2024 [6][25]. - The allowance for credit losses on loans was 0.67% as of June 30, 2025, showing stability compared to previous periods [12][25]. Dividends - The Board of Directors declared a quarterly cash dividend of $0.36 per share, representing an annual yield of approximately 3.78% based on the closing price on July 23, 2025 [3][16]. Balance Sheet Highlights - Total assets increased to $1.63 billion as of June 30, 2025, from $1.57 billion a year earlier [21]. - Gross loans outstanding totaled $1.2 billion, an increase of $83.5 million, or 7.2%, compared to June 30, 2024 [7][21]. - Deposit balances increased by $15.2 million, or 1.1%, from June 30, 2024 [7][21].