#United States #dividend increase #Charlottesville #Virginia National Bank #VABK

Virginia National Bankshares Reports Strong Q1 2025 Earnings

Virginia National Bankshares Corporation, listed under NASDAQ with the ticker symbol VABK, has announced its financial performance for the first quarter of 2025. The company reported a remarkable quarterly net income of $4.5 million, which corresponds to $0.83 per diluted share. This figure marks a significant increase of 23% from $3.6 million, or $0.68 per diluted share, earned during the same period in 2024.

Financial Highlights

The surge in net income can primarily be attributed to a rise in net interest income. This increase was driven by higher average loan balances, which elevated interest earnings. Additionally, Virginia National Bank was able to reduce its interest expenses, successfully lowering the costs associated with deposits and borrowings.

On April 23, 2025, the Board of Directors declared a quarterly cash dividend of $0.36 per share on common stock. This dividend, payable on May 30, 2025, to shareholders on record as of May 15, 2025, reflects an annual yield of approximately 4.09% based on the company’s closing stock price on the declaration date. Notably, this amount represents a 9.1% increase over the prior quarterly dividend, which was $0.33 per share.

President and CEO Glenn W. Rust commented on the quarter's performance: "The Bank reported a strong first quarter, producing net income that illustrates our commitment to growth and operational efficiency. Our efforts to foster loan growth and manage operating expenses have set a solid foundation for the bank this year."

Key Performance Indicators

The performance metrics further highlight the bank's robust standing:

• - Return on average assets escalated to 1.12%, up from 0.91%.
• - Return on average equity increased to 11.05%, compared to 9.57% a year earlier.
• - The net interest margin improved to 3.28% from 2.93% in the previous year.
• - The loan-to-deposit ratio also reflected positively, rising to 86.6% from 78.8%.

These indicators underscore the bank's enhanced operational efficiency, demonstrating a commitment to sound financial management practices.

Balance Sheet Overview

As of March 31, 2025, Virginia National Bank reported a modest growth in gross loan balances, rising by $6.5 million since year-end, amounting to $1.2 billion. This represents an impressive year-on-year increase of 10.1%, reflecting a total growth of $114.3 million since March 31, 2024.

The bank's deposit balances have also experienced slight increases, contributing to a more stable funding mix that favors lower interest-cost components, minimizing overall funding costs. Moreover, while securities balances decreased by $79 million, these funds were effectively reallocated to higher-yielding loan assets.

Asset Quality and Credit Performance

The bank continues to exhibit strong credit performance, with nonperforming assets constituting 0.31% of total assets. Despite a slight increase in nonperforming assets from $3.1 million to $5.0 million, this reflects greater vigilance in credit management and risk assessment, ensuring minimal impact on overall asset quality.

As of the end of March 2025, the allowance for credit losses on loans was 0.67%, maintaining a healthy level in line with industry standards. No real estate owned was reported at this time, further indicating effective management of the bank's loan portfolio.

Conclusion

The strong first quarter results for Virginia National Bankshares Corporation depict a bank that is efficiently managing its growth initiatives while increasing returns for shareholders. The increase in loan balances, effective cost management, and commitment to a strong dividend policy underscore the bank's operational success and strategic foresight heading into 2025.

For more information about Virginia National Bankshares, visit their official website at www.vnbcorp.com.