Core Points - Virginia National Bankshares Corporation announced the retirement of CFO Tara Y. Harrison and the hiring of Cathy W. Liles as her successor, effective November 21, 2025 [1][2] - The transition is expected to be smooth due to the professionalism and prior collaboration between Ms. Harrison and Ms. Liles [2] - Ms. Harrison will continue to serve as a Senior Advisor during the transition period [1][2] Company Overview - Virginia National Bankshares Corporation is headquartered in Charlottesville, Virginia, and operates Virginia National Bank, which has multiple banking offices across various counties [4] - The bank offers a full range of banking and financial services, including fiduciary services through VNB Trust and Estate Services [4] - The company's common stock is traded on the Nasdaq Capital Market under the symbol "VABK" [4] Leadership Insights - CEO Glenn W. Rust acknowledged the challenges faced during Ms. Harrison's tenure, including a merger and various industry crises, while noting the bank's growth from $800 million to $1.6 billion in assets [2] - Ms. Liles expressed excitement about her new role and commitment to community banking, aiming to build on the company's strong foundation [3]

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]

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].