CHARLOTTESVILLE, Va., July 23, 2026 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $9.0 million, or $1.65 per diluted share, for the quarter ended June 30, 2026, compared to $4.2 million, or $0.78 per diluted share, recognized for the quarter ended June 30, 2025.
The increase in net income for the quarter ended June 30, 2026 as compared to the same period in the prior year was primarily due to the cost of funds reduction of 13 basis points, reduced non-interest expense and a gain from the sale of a limited investment partnership interest in Bearing Insurance Group, LLC ("Bearing").
Dividend Declaration
On July 22, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock payable on August 28, 2026, to the holders of record at the close of business on August 14, 2026. The quarterly cash dividend implies an annualized dividend yield to shareholders of approximately 3.20% based on the closing price of the Company's common stock on July 22, 2026.
President and Chief Executive Officer's comments: "Our second quarter results reflected strong core performance and also benefited from the Bearing transaction, which illustrate consistent performance in a dynamic environment," stated Glenn W. Rust, President and Chief Executive Officer. "We are disciplined in our approach, and we continue to focus on optimizing the balance sheet to maximize profitability. Asset quality, liquidity and capital remain strong enabling us to finance creditworthy projects which enhance our communities."
Key Performance Indicators
Second quarter 2026 compared to second quarter 2025
- Return on average assets1 improved to 2.24% from 1.05%.
- Return on average equity1 improved to 18.81% from 10.05%.
- Net interest margin (FTE)1,2 improved to 3.65% from 3.40%.
- Loan-to-deposit ratio decreased slightly to 87.6% from 89.4%.
- Efficiency ratio (FTE)2 improved to 41.6% from 61.2%.
June 30, 2026 Balance Sheet Highlights
- Gross loans outstanding as of June 30, 2026 and December 31, 2025 totaled $1.2 billion; this represents a decrease of $7.7 million, or 0.6% compared to June 30, 2025.
- Securities balances were $241.0 million at June 30, 2026, and $254.2 million at December 31, 2025. The balance declined $22.1 million from June 30, 2025 to June 30, 2026, with the additional liquidity allowing the Company to take advantage of investment opportunities that complement its growth and earnings strategies.
- Deposits at June 30, 2026 were $1.4 billion, a $22.5 million decrease from December 31, 2025, but a $20.1 million increase from June 30, 2025. The changes noted reflect normal customer behavior in the current rate environment as customers continue to optimize their cash holdings.
- Outstanding borrowings from the FHLB were $20.0 million as of June 30, 2026 and December 31, 2025, and $61.0 million as of June 30, 2025. As of June 30, 2026, the Company had unused borrowing facilities in place of approximately $237.0 million and held no brokered deposits.
- Book value per share increased to $35.89 as of June 30, 2026, compared to $31.67 as of June 30, 2025, and tangible book value per share (a non-GAAP financial measure)2 was $34.05 as of June 30, 2026 compared to $29.63 as of June 30, 2025. The increases reflect the consistent earnings performance that the Company posts, and in particular, the gain from the Bearing transaction in the second quarter of 2026.
Loans and Asset Quality
- Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.35% as of June 30, 2026, 0.56% as of December 31, 2025 and 0.48% as of June 30, 2025.
- Nonperforming assets amounted to $5.8 million as of June 30, 2026, compared to $9.2 million as of December 31, 2025, and $7.8 million as of June 30, 2025. The primary changes over the periods were in the 90 or more days past due and still accruing loans, which are government-guaranteed loans and are serviced by a third party. Timing of the distribution of payments from the servicer can create fluctuations at period ends.
- The period-end Allowance for Credit Losses on Loans ("ACL") as a percentage of total loans was 0.66% as of June 30, 2026, 0.67% as of December 31, 2025 and 0.67% as of June 30, 2025. The portfolio of government-guaranteed loans continues to be a significant driver impacting the recovery of credit losses on loans year-over-year. Balances in such loans are 100% guaranteed and do not require an ACL.
- For the three months ended June 30, 2026, the Company recorded a provision for credit losses of $231 thousand on loans, and a $94 thousand reserve for unfunded commitments, both due to construction and multifamily project loans originated in the second quarter, which drove increases in provision expense as those pools require higher reserves. For the six months ended June 30, 2026, the Company recognized a $105 thousand recovery of credit losses on loans and a $39 thousand provision for unfunded commitments.
Net Interest Income
- Net interest income for the three months ended June 30, 2026 of $13.7 million increased $952 thousand, or 7.4%, compared to the three months ended June 30, 2025, predominantly due to decreased interest expense associated with deposit accounts and increased yield on loans. On a year-to-date basis, net interest income at June 30, 2026 was $26.7 million compared to $25.1 million at June 30, 2025.
- Net interest margin (FTE), (a non-GAAP financial measure)2, for the three months ended June 30, 2026 was 3.65%, compared to 3.40% for the three months ended June 30, 2025. The net interest margin (FTE)2 for the six months ended June 30, 2026 was 3.52% compared to 3.34% for the same period in 2025.
- The Bank's yield on loans was 5.74% for the three months ended June 30, 2026, compared to 5.60% for the prior year same period. The accretion of the fair value mark related to purchased loans positively impacted interest income by 11 bps in the second quarter of 2026, and 14 bps in the second quarter of 2025. The yield on loans for the six months ended June 30, 2026 was 5.64%, which was 4 bps over the same period for 2025.
- The overall cost of funds, including noninterest-bearing deposits, of 1.64% incurred in the three months ended June 30, 2026 decreased 13 bps from 1.77% in the same period in the prior year. The cost of interest-bearing deposits decreased period over period by 11 bps, from a cost of 2.23% to 2.12%. The cost of borrowings from the FHLB decreased 85 bps from the second quarter of 2025 to the second quarter of 2026, from 4.74% to 3.89%. On a year-to-date basis, at June 30, 2026, the overall cost of funds decreased 16 bps from 1.82% to 1.66%.
Noninterest Income
Noninterest income for the three months ended June 30, 2026 increased $4.7 million, or 360.1%, compared to the three months ended June 30, 2025, the result of a gain of $4.7 million on the Bearing transaction. On a year-to-date basis, at June 30, 2026, the $4.5 million increase over June 30, 2025 also reflects the $4.7 million gain on the Bearing transaction.
Noninterest Expense
Noninterest expense for the three months ended June 30, 2026 decreased by $412 thousand, or 4.7%, compared to the three months ended June 30, 2025. The 2026 quarter reflected continued lower data processing costs resulting from the 2025 core contract renewals, and a reduction of other expense (which includes legal fees) incurred compared to 2025. The $1.0 million decrease in noninterest expense for the six months ended June 30, 2026 compared to the same period of 2025 is due to reduced depreciation and data processing expenses.
Efficiency Ratio
The Company's efficiency ratio (FTE)2 improved to 41.6% for the three months ended June 30, 2026 compared to 61.2% for the three months ended June 30, 2025, as all the components of this ratio improved.
Income Taxes
The effective tax rates amounted to 20.1% and 21.9% for the three months ended June 30, 2026 and 2025, respectively. For each period, the effective income tax rate differed from the U.S. statutory rate of 21%. The effective tax rate fluctuations are attributable to changes in pretax earnings, low-income housing tax credits and the levels of permanent tax differences.
Dividends
Cash dividends of $2.0 million, or $0.36 per share, were declared and paid during the second quarter of 2026. The remaining 78% of net income was retained.
_____________________________________________________________________
1 Annualized.
2 See "Reconciliation of Certain Quarterly Non-GAAP Financial Measures" at the end of this release.
About Virginia National Bankshares Corporation
Virginia National Bankshares Corporation, headquartered in Charlottesville, Virginia, is the bank holding company for Virginia National Bank. The Bank has seven banking offices throughout Fauquier and Prince William counties, four banking offices in Charlottesville and Albemarle County (including one limited-service banking facility), and banking offices in Winchester and Richmond, Virginia. The Bank offers a full range of banking and related financial services to meet the needs of individuals, businesses and charitable organizations, including the fiduciary services of VNB Trust and Estate Services. The Company's common stock trades on the Nasdaq Capital Market under the symbol "VABK." Additional information on the Company is also available at www.vnbcorp.com.
Non-GAAP Financial Measures
The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") and prevailing practices in the banking industry. However, management uses certain non-GAAP measures to supplement the evaluation of the Company's performance. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's core businesses. These non-GAAP disclosures should not be viewed as a substitute for, or more important than, operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included at the end of this release.
Forward-Looking Statements; Other Information
Certain statements in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, statements with respect to the Company's operations, performance, future strategy and goals, and are often characterized by use of qualified words such as "expect," "believe," "estimate," "project," "anticipate," "intend," "will," "should," or words of similar meaning or other statements concerning the opinions or judgement of the Company and its management about future events. While Company management believes such statements to be reasonable, future events and predictions are subject to circumstances that are not within the control of the Company and its management. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, without limitation, the effects of and changes in: inflation, interest rates, market and monetary fluctuations; liquidity and capital requirements; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts or other major events, the governmental and societal responses thereto, or the prospect of these events; changes, particularly declines, in general economic and market conditions in the local economies in which the Company operates, including the effects of declines in real estate values; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; the impact of changes in laws, regulations and guidance related to financial services including, but not limited to, taxes, banking, securities and insurance; changes in accounting principles, policies and guidelines; the financial condition of the Company's borrowers; the Company's ability to attract, hire, train and retain qualified employees; an increase in unemployment levels; competitive pressures on loan and deposit pricing and demand; fluctuation in asset quality; assumptions that underlie the Company's ACL; the value of securities held in the Company's investment portfolio; performance of assets under management; cybersecurity threats or attacks and the development and maintenance of reliable electronic systems; changes in technology and their impact on the marketing of new products and services and the acceptance of these products and services by new and existing customers; the willingness of customers to substitute competitors' products and services for the Company's products and services; the risks and uncertainties described from time to time in the Company's press releases and filings with the SEC; and the Company's performance in managing the risks involved in any of the foregoing. Many of these factors and additional risks and uncertainties are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and other reports filed from time to time by the Company with the Securities and Exchange Commission. These statements speak only as of the date made, and the Company does not undertake to update any forward-looking statements to reflect changes or events that may occur after this release.
VIRGINIA NATIONAL BANKSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
June 30, 2026 December 31,
2025* June 30, 2025
(Unaudited) (Unaudited)
ASSETS
Cash and due from banks $
35,705 $
5,798 $
5,999
Interest-bearing deposits in other banks 9,694 10,552 9,840
Federal funds sold 31,948 54,264 22,683
Securities:
Available-for-sale (AFS), at fair value 234,770 247,992 254,909
Restricted securities, at cost 6,195 6,172 8,120
Total securities 240,965 254,164 263,029
Loans, net of deferred fees and costs 1,233,980 1,237,577 1,241,712
Allowance for credit losses (8,124) (8,270) (8,347)
Loans, net 1,225,856 1,229,307 1,233,365
Premises and equipment, net 11,575 11,687 12,204
Bank owned life insurance 41,953 41,302 40,659
Goodwill 7,768 7,768 7,768
Core deposit intangible, net 2,199 2,682 3,213
Right of use asset, net 5,551 6,297 7,032
Deferred tax asset, net 12,179 12,079 14,084
Accrued interest receivable and other assets 12,803 13,842 15,046
Total assets $
1,638,196 $
1,649,742 $
1,634,922
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand deposits:
Noninterest-bearing $
367,348 $
362,322 $
384,538
Interest-bearing 279,179 308,295 266,012
Money market and savings deposit accounts 481,847 469,815 457,077
Certificates of deposit and other time deposits 280,822 291,299 281,438
Total deposits 1,409,196 1,431,731 1,389,065
Borrowings 20,000 20,000 61,000
Junior subordinated debt, net 3,578 3,554 3,530
Lease liability 5,474 6,192 6,888
Accrued interest payable and other liabilities 5,263 4,104 3,667
Total liabilities 1,443,511 1,465,581 1,464,150
Commitments and contingent liabilities
Shareholders' equity:
Preferred stock, $2.50 par value
Common stock, $2.50 par value 13,416 13,327 13,318
Capital surplus 107,781 107,337 106,834
Retained earnings 104,531 94,165 87,514
Accumulated other comprehensive loss (31,043) (30,668) (36,894)
Total shareholders' equity 194,685 184,161 170,772
Total liabilities and shareholders' equity $
1,638,196 $
1,649,742 $
1,634,922
Common shares outstanding 5,424,431 5,393,140 5,391,979
Common shares authorized 10,000,000 10,000,000 10,000,000
Preferred shares outstanding
Preferred shares authorized 2,000,000 2,000,000 2,000,000
* Derived from audited consolidated financial statements
VIRGINIA NATIONAL BANKSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
For the three months ended For the six months ended
June 30, June 30, June 30, June 30,
2026 2025 2026 2025
Interest and dividend income:
Loans, including fees $
17,688 $
17,330 $
34,521 $
34,363
Federal funds sold 288 64 782 248
Other interest-bearing deposits 47 45 82 87
Investment securities:
Taxable 1,066 1,265 2,169 2,574
Tax-exempt 326 323 648 646
Dividends 83 109 173 224
Total interest and dividend income 19,498 19,136 38,375 38,142
Interest expense:
Demand deposits 67 67 137 136
Money market and savings deposits 2,940 2,927 5,993 5,930
Certificates and other time deposits 2,478 2,670 5,063 5,724
Borrowings 194 582 386 1,091
Federal funds purchased 18 25
Junior subordinated debt 71 76 141 146
Total interest expense 5,750 6,340 11,720 13,052
Net interest income 13,748 12,796 26,655 25,090
Provision for (recovery of) credit losses 231 3 (105) (157)
Net interest income after provision for (recovery of) credit losses 13,517 12,793 26,760 25,247
Noninterest income:
Wealth management fees 214 206 434 435
Deposit account fees 359 293 725 600
Debit/credit card and ATM fees 245 355 496 725
Bank owned life insurance income 332 307 651 600
Gains on sales of assets, net 5 278
Gain on sale of limited partnership investment 4,662 4,662
Other 220 150 548 433
Total noninterest income 6,032 1,311 7,521 3,071
Noninterest expense:
Salaries and employee benefits 4,027 3,863 8,026 7,799
Net occupancy 720 889 1,499 1,905
Equipment 212 202 398 388
Bank franchise tax 468 489 936 828
Computer software 214 266 428 522
Data processing 609 732 1,159 1,467
FDIC deposit insurance assessment 187 145 362 290
Marketing, advertising and promotion 254 179 521 433
Professional fees 333 331 681 587
Core deposit intangible amortization 236 284 483 579
Other 1,009 1,301 1,975 2,707
Total noninterest expense 8,269 8,681 16,468 17,505
Income before income taxes 11,280 5,423 17,813 10,813
Provision for income taxes 2,272 1,185 3,545 2,086
Net income $
9,008 $
4,238 $
14,268 $
8,727
Net income per common share, basic $
1.66 $
0.79 $
2.63 $
1.62
Net income per common share, diluted $
1.65 $
0.78 $
2.62 $
1.61
Weighted average common shares outstanding, basic 5,423,642 5,391,979 5,416,631 5,385,461
Weighted average common shares outstanding, diluted 5,455,403 5,417,900 5,449,308 5,410,430
VIRGINIA NATIONAL BANKSHARES CORPORATION
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
At or for the three months ended
June 30, March 31, December 31, 2025 September 30, June 30,
2026 2026 2025 2025
Common Share Data:
Net income $
9,008 $
5,259 $
5,958 $
4,576 $
4,238
Net income per weighted average share, basic $
1.66 $
0.97 $
1.10 $
0.85 $
0.79
Net income per weighted average share, diluted $
1.65 $
0.97 $
1.10 $
0.84 $
0.78
Weighted average shares outstanding, basic 5,423,642 5,409,543 5,392,763 5,391,979 5,391,979
Weighted average shares outstanding, diluted 5,455,403 5,443,437 5,424,154 5,424,642 5,417,900
Actual shares outstanding 5,424,431 5,422,513 5,393,140 5,391,979 5,391,979
Tangible book value per share at period end 4 $
34.05 $
32.51 $
32.21 $
30.90 $
29.63
Key Ratios:
Return on average assets (1) 2.24
% % %
% 1.30 1.45 1.12
% 1.05
Return on average equity (1) 18.81
% % % %
% 11.34 13.04 10.48 10.05
Net interest margin (FTE) 1, (2) 3.65
% % %
% 3.40 3.50 3.43
% 3.40
Efficiency ratio (FTE) (3) 41.6
% % %
% 56.6 49.5 57.9
% 61.2
Loan-to-deposit ratio 87.6
% % %
% 86.7 86.4 89.2
% 89.4
Net Interest Income:
Net interest income $
13,748 $
12,906 $
13,348 $
13,072 $
12,796
Net interest income (FTE) (2) $
13,835 $
12,991 $
13,433 $
13,158 $
12,881
Company Capital Ratios:
Tier 1 leverage ratio 5 13.38
% % % %
% 12.70 12.52 12.26 12.12
Total risk-based capital ratio 5 21.59
% % % %
% 20.80 20.42 20.15 19.46
Assets and Asset Quality:
Average earning assets $
1,520,330 $
1,550,030 $
1,521,387 $
1,523,230 $
1,521,345
Average gross loans $
1,235,696 $
1,233,478 $
1,223,703 $
1,230,805 $
1,240,563
Fair value mark on acquired loans $
3,911 $
4,344 $
4,754 $
5,241 $
5,724
Allowance for credit losses on loans:
Beginning of period $
7,981 $
8,270 $
8,510 $
8,347 $
8,328
Provision for (recovery of) credit losses 137 (281) (176) 253 90
Charge-offs (65) (93) (126) (146) (111)
Recoveries 71 85 62 56 40
End of period $
8,124 $
7,981 $
8,270 $
8,510 $
8,347
Non-accrual loans $
2,099 $
2,147 $
2,198 $
2,568 $
2,614
Loans 90 days or more past due and still accruing 3,692 3,841 7,042 4,201 5,178
Total nonperforming assets (NPA) $
5,791 $
5,988 $
9,240 $
6,769 $
7,792
NPA as a % of total assets 0.35
% % %
% 0.36 0.56 0.42
% 0.48
NPA as a % of gross loans 0.47
% % %
% 0.48 0.75 0.55
% 0.63
ACL to gross loans 0.66
% % %
% 0.64 0.67 0.69
% 0.67
Non-accruing loans to gross loans 0.17
% % %
% 0.17 0.18 0.21
% 0.21
Net charge-offs to average loans (1) 0.00
% % %
% 0.00 0.02 0.03
% 0.02
(1)
Ratio is computed on an annualized basis.
(2) The net interest margin and net interest income are reported on a fully tax-equivalent basis (FTE) basis, using a Federal income tax rate of 21%. This
is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.
(3) The efficiency ratio (FTE) is computed as a percentage of noninterest expense divided by the sum of net interest income (FTE) and noninterest income. This
is a non-GAAP financial measure that management believes provides investors with important information regarding operational efficiency. Management
believes such financial information is meaningful to the reader in understanding operating performance, but cautions that such information should not be
viewed as a substitute for GAAP. Comparison of our efficiency ratio with those of other companies may not be possible because other companies may
calculate them differently. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.
4
This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.
5
All ratios at June 30, 2026 are estimates and subject to change pending regulatory filings. Ratios for prior periods are presented as filed.
VIRGINIA NATIONAL BANKSHARES CORPORATION
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)
(dollars in thousands)
(Unaudited)
For the three months ended
June 30, 2026
June 30, 2025
Interest Interest
Average Income/ Average Average Income/ Average
Balance Expense Yield/Cost Balance Expense Yield/Cost
4 4
ASSETS
Interest Earning Assets:
Securities:
Taxable Securities and Dividends $
179,586 $
1,149 2.56 $
201,507 $
1,374 2.73
% %
Tax-Exempt Securities (1) 64,347 413 2.57 65,347 408 2.50
% %
Total Securities (1) 243,933 1,562 2.56 266,854 1,782 2.67
% %
Total Loans 1,235,696 17,688 5.74 1,240,563 17,330 5.60
% %
Federal funds sold 31,554 288 3.66 5,698 64 4.51
% %
Other interest-bearing deposits 9,147 47 2.06 8,230 45 2.19
% %
Total Earning Assets 1,520,330 19,585 5.17 1,521,345 19,221 5.07
% %
Less: Allowance for Credit Losses (7,996) (8,338)
Total Non-Earning Assets 97,395 102,550
Total Assets $
1,609,729 $
1,615,557
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest Bearing Liabilities:
Interest Bearing Deposits:
Interest Checking $
265,742 $
67 0.10 $
268,728 $
67 0.10
% %
Money Market and Savings Deposits 489,059 2,940 2.41 464,058 2,927 2.53
% %
Time Deposits 283,277 2,478 3.51 286,555 2,670 3.74
% %
Total Interest-Bearing Deposits 1,038,078 5,485 2.12 1,019,341 5,664 2.23
% %
Borrowings 20,000 194 3.89 49,275 582 4.74
% %
Federal funds purchased 0.00 1,472 18 4.90
% %
Junior subordinated debt 3,570 71 7.98 3,523 76 8.65
% %
Total Interest-Bearing Liabilities 1,061,648 5,750 2.17 1,073,611 6,340 2.37
% %
Non-Interest-Bearing Liabilities:
Demand deposits 344,699 364,033
Other liabilities 11,299 8,790
Total Liabilities 1,417,646 1,446,434
Shareholders' Equity 192,083 169,123
Total Liabilities & Shareholders' Equity $
1,609,729 $
1,615,557
Net Interest Income (FTE) (3) $
13,835 $
12,881
Interest Rate Spread (2) 3.00 2.70
% %
Cost of Funds 1.64 1.77
% %
Interest Expense as a Percentage of 1.52 1.67
% %
Average Earning Assets 4
Net Interest Margin (FTE) 3, 4 3.65 3.40
% %
(1) Tax-exempt income for investment securities has been adjusted to a fully tax-equivalent basis (FTE), using a Federal income tax rate of 21%. Refer to the
Reconcilement of Certain Non-GAAP Measures table at the end of this release.
(2)
Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities.
(3) Net interest margin (FTE) is net interest income expressed as a percentage of average earning assets. This is a non-GAAP financial measure. Refer to the
Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.
4
Ratio is computed on an annualized basis.
VIRGINIA NATIONAL BANKSHARES CORPORATION
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)
(dollars in thousands)
(Unaudited)
For the six months ended
June 30, 2026
June 30, 2025
Interest Interest
Average Income/ Average Average Income/ Average
Balance Expense Yield/Cost Balance Expense Yield/Cost
4 4
ASSETS
Interest Earning Assets:
Securities:
Taxable Securities and Dividends $
184,352 $
2,342 2.54 $
203,584 $
2,798 2.75
% %
Tax Exempt Securities (1) 64,411 820 2.55 65,572 818 2.49
% %
Total Securities (1) 248,763 3,162 2.54 269,156 3,616 2.69
% %
Total Loans 1,234,592 34,521 5.64 1,237,061 34,363 5.60
% %
Federal funds sold 43,046 782 3.66 11,256 248 4.44
% %
Other interest-bearing deposits 8,696 82 1.90 8,041 87 2.18
% %
Total Earning Assets 1,535,097 38,547 5.06 1,525,514 38,314 5.06
% %
Less: Allowance for Credit Losses (8,135) (8,416)
Total Non-Earning Assets 98,624 105,321
Total Assets $
1,625,586 $
1,622,419
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest Bearing Liabilities:
Interest Bearing Deposits:
Interest Checking $
275,134 $
137 0.10 $
271,736 $
136 0.10
% %
Money Market and Savings Deposits 488,403 5,993 2.47 464,231 5,930 2.58
% %
Time Deposits 287,339 5,063 3.55 296,388 5,724 3.89
% %
Total Interest-Bearing Deposits 1,050,876 11,193 2.15 1,032,355 11,790 2.30
% %
Borrowings 20,000 386 3.89 46,038 1,091 4.78
% %
Federal funds purchased 0.00 1,017 25 4.96
% %
Junior subordinated debt 3,564 141 7.98 3,517 146 8.37
% %
Total Interest-Bearing Liabilities 1,074,440 11,720 2.20 1,082,927 13,052 2.43
% %
Non-Interest-Bearing Liabilities:
Demand deposits 349,925 363,198
Other liabilities 11,125 9,328
Total Liabilities 1,435,490 1,455,453
Shareholders' Equity 190,096 166,966
Total Liabilities & Shareholders' Equity $
1,625,586 $
1,622,419
Net Interest Income (FTE) (3) $
26,827 $
25,262
Interest Rate Spread (2) 2.86 2.63
% %
Cost of Funds 1.66 1.82
% %
Interest Expense as a Percentage of 1.54 1.73
% %
Average Earning Assets
Net Interest Margin (FTE) 3,4 3.52 3.34
% %
(1) Tax-exempt income for investment securities has been adjusted to a fully tax-equivalent basis (FTE), using a Federal income tax rate of 21%. Refer to the
Reconcilement of Certain Non-GAAP Measures table at the end of this release.
(2)
Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities.
(3) Net interest margin (FTE) is net interest income expressed as a percentage of average earning assets. This is a non-GAAP financial measure. Refer to the
Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release.
4
Ratio is computed on an annualized basis.
VIRGINIA NATIONAL BANKSHARES CORPORATION
RECONCILIATION OF CERTAIN QUARTERLY NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per share data)
(Unaudited)
For the Three Months Ended
June 30, March 31, December 31, 2025 September 30, June 30,
2026 2026 2025 2025
Fully tax-equivalent measures
Net interest income (GAAP) $
13,748 $
12,906 $
13,348 $
13,072 $
12,796
Fully tax-equivalent adjustment 87 85 85 86 85
Net interest income (FTE) (1) (non-GAAP) $
13,835 $
12,991 $
13,433 $
13,158 $
12,881
Efficiency ratio (2) (GAAP) 41.8 57.0 49.8 58.3 61.5
% % % % %
Fully tax-equivalent adjustment -0.2 -0.4 -0.3 -0.4 -0.3
% % % % %
Efficiency ratio (FTE) 3 (non-GAAP) 41.6 56.6 49.5 57.9 61.2
% % % % %
Net interest margin (GAAP) 3.63 3.38 3.48 3.40 3.37
% % % % %
Fully tax-equivalent adjustment 0.02 0.02 0.02 0.03 0.03
% % % % %
Net interest margin (FTE) (1) (non-GAAP) 3.65 3.40 3.50 3.43 3.40
% % % % %
As of
June 30, March 31, December 31, 2025 September 30, June 30,
2026 2026 2025 2025
Other financial measures
Book value per share (GAAP) $
35.89 $
34.39 $
34.15 $
32.89 $
31.67
Impact of intangible assets 4 (1.84) (1.88) (1.94) (1.99) (2.04)
Tangible book value per share (non-GAAP) $
34.05 $
32.51 $
32.21 $
30.90 $
29.63
For the Six Months
Ended
June 30, June 30,
2026 2025
Fully tax-equivalent measures
Net interest income (GAAP) $
26,655 $
25,090
Fully tax-equivalent adjustment 172 172
Net interest income (FTE) (1) (non-GAAP) $
26,827 $
25,262
Net interest margin (GAAP) 3.50
%
% 3.32
Fully tax-equivalent adjustment 0.02
%
% 0.02
Net interest margin (FTE) (1) 3.52
%
% 3.34
(1)
FTE calculations use a Federal income tax rate of 21%.
(2) The efficiency ratio, GAAP basis, is computed by dividing noninterest expense by the sum of net interest
income and noninterest income.
(3) The efficiency ratio, FTE, is computed by dividing noninterest expense by the sum of net interest income
(FTE) and noninterest income.
4 Intangible assets include goodwill and core deposit intangible assets, net of accumulated amortization, for
all periods presented.
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SOURCE Virginia National Bankshares Corporation
INVESTOR RELATIONS CONTACT: Cathy W. Liles (434) 817-8267