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

Core Insights - Virginia National Bankshares Corporation reported a quarterly net income of $4.6 million, or $0.84 per diluted share, for Q3 2025, which is a slight decrease from $4.6 million, or $0.85 per diluted share, in Q3 2024 [1][22] - Year-to-date net income for the first nine months of 2025 increased to $13.3 million, or $2.45 per diluted share, compared to $12.4 million, or $2.30 per diluted share, for the same period in 2024 [1][22] - The increase in net income year-to-date was primarily due to decreased interest expense, with a 30 basis points decline in the cost of funds year-over-year [2][8] Financial Performance - Key performance indicators improved, including return on average assets at 1.12% (up from 1.05%) and return on average equity at 10.48% (up from 10.05%) [7][23] - Net interest margin (FTE) improved to 3.43% from 3.40% [7][23] - The efficiency ratio (FTE) improved to 57.9% from 61.2% year-over-year [11][23] Loan and Deposit Trends - Gross loans outstanding totaled $1.2 billion, an increase of $19.5 million, or 1.6%, compared to September 30, 2024 [7][23] - Deposit balances increased by $5.0 million, or 0.4%, from September 30, 2024, but decreased by $38.7 million since December 31, 2024 [7][23] - The loan-to-deposit ratio remained stable at 89% [7][23] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.36 per share, payable on November 28, 2025, representing an annual yield of approximately 3.63% based on the closing price on October 22, 2025 [2][14] Asset Quality - Nonperforming assets as a percentage of total assets were 0.42% as of September 30, 2025, compared to 0.33% a year earlier [7][23] - The allowance for credit losses on loans was 0.69% of total loans as of September 30, 2025, showing nominal changes year-over-year [7][23] Noninterest Income and Expense - Noninterest income decreased by $101 thousand, or 7.0%, primarily due to lower wealth management fees and debit card usage [10][23] - Noninterest expense increased by $461 thousand, or 5.8%, driven by higher franchise taxes, FDIC insurance expenses, and investments in technology [10][23]