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Virginia National Bankshares Corporation Announces First Quarter Results for 2026

Virginia National Bankshares Corporation (NASDAQ: VABK) has recently published its financial results for the first quarter ending March 31, 2026. The company reported a remarkable net income of $5.3 million, translating to earnings of $0.97 per diluted share. This is up from $4.5 million, or $0.83 per diluted share, reported in the same quarter of the previous year. This positive trajectory reflects a robust 17.2% increase in net income compared to the first quarter of 2025.

Factors Contributing to Financial Success

The growth in net income for 2026 has been largely attributed to a decrease in the cost of funds, which dropped by 19 basis points, alongside a reduction in non-interest expenses. Glenn W. Rust, the President and Chief Executive Officer, emphasized the company’s commitment to efficient financial strategies that drive operational excellence. Rust remarked, “Our continued focus on pricing and asset quality contributes to strong performance.”

Dividend Declaration

On April 22, 2026, the Board of Directors also declared a quarterly cash dividend of $0.36 per share, payable on May 29, 2026, to shareholders recorded by May 13, 2026. This dividend yield approximates an annualized return of 3.50%, based on the market closing price of the company's stock on April 21, 2026.

Key Performance Indicators

Comparing the first quarter of 2026 to the same quarter in 2025, several key performance indicators have shown improvement:

• - Return on average assets rose to 1.30% from 1.12%.
• - Return on average equity increased to 11.34%, compared to 11.05% last year.
• - Net interest margin (tax-equivalent basis) improved to 3.40% from 3.28%.
• - The loan-to-deposit ratio saw a slight increase to 86.7% from 86.6%.
• - The company’s efficiency ratio improved to 56.6% compared to 62.4% a year prior.

Balance Sheet and Asset Quality

As of March 31, 2026, total gross loans were reported at $1.2 billion, reflecting a slight decrease from the previous year. The securities balance also fell as the company opted to utilize cash flow from maturing securities to support assets with more favorable yields. Outstanding deposits in the Insured Cash Sweep® plans, designed to provide customers with extended FDIC insurance, totaled $187.3 million as of March 31, 2026.

The asset quality remains reassuring, with nonperforming assets comprising only 0.36% of total assets. This is an improvement from the previous year and indicates strong credit performance.

Noninterest Income and Expenses

While noninterest income showed a decline to $1.49 million, primarily due to reduced fees associated with debit/credit cards and asset sales, noninterest expenses decreased by 7.1% to $8.2 million. Rust pointed to successful negotiations lowering data processing costs as a significant factor in reducing expenses.

Future Outlook

Virginia National Bankshares Corporation continues to strengthen its capital and liquidity ratios, enhancing its lending capabilities and community service. The ongoing monitoring of asset quality and operating efficiency suggests a solid foundation for future growth. Shareholders and investors can anticipate a stable performance trajectory as the company navigates market conditions.

In conclusion, Virginia National Bankshares Corporation’s recent performance indicates a robust outlook for 2026, marked by increased profitability and shareholder returns, alongside strategic plans aimed at sustaining growth in the competitive landscape.