#United States #Charlottesville #Virginia National Bank #VABK

Virginia National Bankshares Reports Third Quarter Earnings and Dividend for 2025

Virginia National Bankshares Corporation (NASDAQ: VABK) recently announced its financial results for the third quarter of 2025, reflecting consistent performance compared to the previous year. The company reported a net income of $4.6 million, equivalent to $0.84 per diluted share for the quarter ending September 30, 2025. This mirrors the financial results of $4.6 million or $0.85 per diluted share recorded in the same quarter of 2024, indicating stability in profit generation amid a shifting economic landscape.

Over the nine-month period from January to September 2025, Virginia National Bankshares accumulated a net income of $13.3 million, corresponding to $2.45 per diluted share, which is an increase from $12.4 million or $2.30 per diluted share a year prior. This growth was primarily driven by decreased interest expenses linked to lower funding costs from both deposits and borrowings.

Financial Highlights

In the latest earnings report, it was noted that the company's cost of funds dropped by 30 basis points year-over-year; this was complemented by steady yields on earning assets despite a series of prime rate reductions. Notably, the company's quarterly cash dividend was declared at $0.36 per share, payable to shareholders recorded at the close of business on November 14, 2025. This dividend represents an attractive annual yield of approximately 3.63% based on the stock's closing price as of October 22, 2025.

Insight from Leadership

Glenn W. Rust, the President and CEO of Virginia National Bankshares, expressed satisfaction with the progress made in essential financial metrics, stating, "Our key performance indicators, including return on average assets, return on average equity, and net interest margin, all showed improvement this quarter." Even though there was a slight decline in loan balances, the bank’s commitment to maintaining strong credit standards continues to yield positive results for the organization.

Performance Indicators

The performance indicators for the third quarter of 2025, relative to the previous quarter, revealed:

• - Return on Average Assets: Improving to 1.12% from 1.05%
• - Return on Average Equity: Rising to 10.48% from 10.05%
• - Net Interest Margin: Increasing to 3.43% from 3.40%
• - Loan-to-Deposit Ratio: Remaining steady at 89%
• - Efficiency Ratio: Enhanced to 57.9% down from 61.2%

Balance Sheet Overview

As of September 30, 2025, the company's total gross loans stood at $1.2 billion, reflecting a modest incline of 1.6% compared to the previous year. However, a slight contraction of $1.0 million was noted in the gross loan balances since year-end. Conversely, deposit balances show a 0.4% increase year-over-year, amounting to $1.384 billion even with a decrease of $38.7 million since December 31, 2024.

Assets totaled $1.606 billion, showing a minor reduction from the $1.617 billion recorded at year-end 2024. This trend was attributed to a tactical shift towards holding loans with more favorable yields while decreasing higher-cost borrowings.

Loan and Asset Quality

In terms of credit quality, the company maintains a robust credit performance characterized by nonperforming assets constituting 0.42% of total assets. This marks an increase from 0.19% in December 2024 and 0.33% in September 2024, indicating some necessary attention is needed in this area.
The allowance for credit losses ratio remains stable at 0.69% of gross loans, underlining it as a proactive measure against potential future defaults. Furthermore, the net interest income for the most recent quarter rose by 8.7%, largely stemming from reduced interest expenses associated with deposit accounts.

In summary, Virginia National Bankshares Corporation exhibits steady growth and strong fundamentals, presenting a favorable outlook amid fluctuating market conditions. Stakeholders can anticipate positive outcomes as the bank continues to adapt and thrive through effective financial management and strategic decision-making.