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Virginia National Bankshares Reports Stellar Q2 2025 Results

Charlottesville, Virginia – July 24, 2025 – Virginia National Bankshares Corporation (NASDAQ: VABK) has announced notable financial results for the second quarter of 2025, showcasing a robust net income of $4.2 million, translating to $0.78 per diluted share. This figure stands comparably to the same quarter in 2024, where the net income was also $4.2 million, yet per diluted share was slightly lower at $0.77.

The bank has recorded a total net income of $8.7 million for the first half of 2025, with earnings per diluted share at $1.61, signifying an increase from $7.8 million and $1.45 per diluted share from the previous year. The substantial improvement in earnings is attributed to a rise in net interest income, predominantly driven by increased interest income arising from higher average loan balances.

Moreover, the bank's decreased interest expenses have significantly contributed to the bottom line, enhancing its profitability. The strategic reduction in loan funding costs has proved beneficial, allowing the bank to maintain a strong net interest income amid changing economic conditions.

Quarterly Dividend Declaration

On July 23, 2025, Virginia National Bankshares' Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock, scheduled for payment on August 29, 2025. The dividend reflects an annual yield of approximately 3.78% based on the stock's closing price on the declaration date.

Glenn W. Rust, the President and CEO of Virginia National Bankhares, commented on the results, stating, _“We continue to post steady earnings results for 2025, with year-to-date earnings significantly outperforming 2024. Our consistent focus on operational efficiencies and ensuring asset quality has positioned us to provide exceptional service for both depositors and borrowers.”_

Key Performance Metrics

Virginia National Bankshares' performance for the second quarter of 2025 highlights several key metrics:

• - The return on average assets remains stable at 1.05%.
• - The net interest margin (on a fully taxable equivalent basis) improved to 3.40% from 3.04%.
• - The loan-to-deposit ratio rose to 89.4%, up from 84.3%, showcasing successful loan growth.
• - The efficiency ratio (on a fully taxable equivalent basis) improved to 61.2%, compared to 62.7% from the previous year.

Virginia National Bankshares continued to witness modest loan growth in the second quarter, with gross loan balances increasing by $5.7 million since the end of 2024, totaling $1.2 billion as of June 30, 2025.

The bank's balance sheet reflects strategic movements, paired with a decrease in total deposit balances of $34.5 million since December 31, 2024, which helped stabilize funding costs. In terms of securities, the bank has strategically reduced securities balances while enhancing its holdings in high-yielding loans.

Asset Quality and Credit Performance

The bank maintains a solid foundation with a nonperforming assets ratio of 0.48%, up from 0.25% in June 2024, yet highlights strong credit performance with a significant portion of loans being government-backed. Non-accrual loans totaled $2.6 million as of June 30, 2025, demonstrative of improvements in asset quality.

Conclusion

As Virginia National Bankshares positions itself for the future, its dedicated management and sound operational strategies continue to fuel growth and stability. The announced dividends and solid financial performance reinforce investor confidence and commitment to shareholder value. With preparations for the upcoming quarters, the bank aims to sustain its momentum in a competitive banking landscape.

For more details, visit Virginia National Bank's website.