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VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2026 THIRD QUARTER EARNINGS

Higher lending returns and lower funding costs supported earnings, alongside a $421 thousand life-insurance payout.

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Rhea-AI Summary

Virginia National Bankshares (VABK) reported third-quarter 2026 net income of $6.6 million, with higher loan yields and lower funding costs. Diluted earnings were $1.20 per share, versus $0.84 a year earlier, while net income rose from $4.6 million. Net interest income increased 11.2% to $14.5 million. Annualized net interest margin on a tax-equivalent basis, a non-GAAP measure, rose to 3.73% from 3.43%.

Results included a $421 thousand life-insurance payout and a $114 thousand net credit-loss recovery. Quarterly noninterest expense fell 1.6%, while card and ATM fees declined $157 thousand. At September 30, loans were up 1.0% year over year; deposits rose $14.6 million year over year but fell $32.2 million from December 31, 2025. Nonperforming assets declined to $5.9 million from $6.8 million a year earlier. Book value per share increased to $35.01 from $32.89.

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Positive

  • Moderate pointThird-quarter net income rose to $6.6 million, or $1.20 per diluted share, from $4.6 million, or $0.84.
  • Moderate pointThird-quarter net interest income increased 11.2% to $14.5 million year over year.
  • Moderate pointAnnualized tax-equivalent net interest margin rose to 3.73% from 3.43% in the prior-year quarter.
  • Moderate pointNine-month noninterest income increased $4.8 million year over year, including a $4.7 million partnership-sale gain.
  • Moderate pointNine-month noninterest expense decreased $1.2 million from the same period in 2025.
  • Moderate pointThird-quarter tax-equivalent efficiency ratio improved to 50.7% from 57.9% a year earlier.
22 minor points
  • Minor pointNine-month net interest income rose to $41.2 million from $38.2 million in 2025.
  • Minor pointNine-month annualized tax-equivalent net interest margin increased to 3.59% from 3.37% a year earlier.
  • Minor pointAnnualized return on average assets improved to 1.58% from 1.12% in the prior-year quarter.
  • Minor pointAnnualized return on average equity improved to 13.34% from 10.48% in the prior-year quarter.
  • Minor pointThird-quarter loan yield increased to 5.90% from 5.64% a year earlier.
  • Minor pointNine-month loan yield reached 5.73%, up 12 basis points from the same period in 2025.
  • Minor pointThird-quarter overall funding cost fell to 1.68% from 1.77% a year earlier.
  • Minor pointNine-month overall funding cost declined to 1.67% from 1.80% a year earlier.
  • Minor pointThird-quarter interest-bearing deposit cost decreased to 2.18% from 2.26% a year earlier.
  • Minor pointThird-quarter FHLB borrowing cost decreased to 3.91% from 4.77% a year earlier.
  • Minor pointThird-quarter noninterest income increased 24.1%, or $0.3 million, year over year, including a $421 thousand life-insurance payout.
  • Minor pointThird-quarter noninterest expense decreased $134 thousand, or 1.6%, year over year.
  • Minor pointThird-quarter effective tax rate declined to 18.7% from 19.5% a year earlier.
  • Minor pointGross loans increased $12.3 million year over year and $9.7 million from December 31, 2025.
  • Minor pointDeposits increased $14.6 million from September 30, 2025.
  • Minor pointFHLB borrowings fell to $20.0 million from $30.0 million a year earlier; unchanged since December 31, 2025.
  • Minor pointUnused borrowing facilities totaled approximately $227.0 million at September 30, 2026.
  • Minor pointNonperforming assets fell to $5.9 million, from $9.2 million at year-end and $6.8 million a year earlier.
  • Minor pointThird-quarter net credit-loss recovery totaled $114 thousand, versus a $332 thousand provision a year earlier.
  • Minor pointNine-month net credit-loss recovery totaled $219 thousand, versus a $174 thousand provision a year earlier.
  • Minor pointBook value per share increased to $35.01 from $32.89 a year earlier.
  • Minor pointNon-GAAP tangible book value per share increased to $33.21 from $30.90 a year earlier.

Negative

  • Moderate pointDeposits decreased $32.2 million from December 31, 2025, to September 30, 2026.
  • Moderate pointAccumulated other comprehensive loss widened to $40.586 million, from $30.668 million at December 31, 2025.
  • Minor pointThird-quarter card and ATM fees declined $157 thousand year over year because of decreased usage.
  • Minor pointNine-month card and ATM fees declined $386 thousand year over year because of decreased usage.

News Explained

During the third quarter of 2026, Virginia National Bankshares declared and paid cash dividends of $2.0 million, or $0.36 per share, while retaining 70% of net income—cash went to shareholders, and most quarterly earnings stayed in the company.

Key Figures

Net income: $6.6 million Diluted EPS: $1.20 per diluted share Net interest margin (FTE): 3.73% +3 more
Net income
$6.6 million
Third quarter 2026; compared with $4.6 million in third quarter 2025
Diluted EPS
$1.20 per diluted share
Third quarter 2026; compared with $0.84 in third quarter 2025
Net interest margin (FTE)
3.73%
Third quarter 2026; compared with 3.43% in third quarter 2025
Net interest income
$14.5 million
Third quarter 2026; increased 11.2% year over year
Efficiency ratio (FTE)
50.7%
Third quarter 2026; compared with 57.9% in third quarter 2025
Cash dividend
$0.36 per share
Declared and paid during third quarter 2026

Historical Context

1 past event · Latest: Jul 23
1 event
  1. Jul 23

    Earnings report

    24h Move
    +1.6%

    Second-quarter net income and diluted EPS rose year over year, with net interest margin improvement.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, efficiency ratio, allowance for credit losses, nonperforming assets, +1 more
5 terms
net interest margin financial
"Net interest margin (FTE)1,2 improved to 3.73% from 3.43%."
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
efficiency ratio financial
"Efficiency ratio (FTE)2 improved to 50.7% from 57.9%."
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
allowance for credit losses financial
"The period-end allowance for credit losses on loans ("ACL")"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
nonperforming assets financial
"Nonperforming assets as a percentage of total assets of 0.36%"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
non-gaap financial measure financial
"tangible book value per share (a non-GAAP financial measure)"
A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CHARLOTTESVILLE, Va., Oct. 29, 2026 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $6.6 million, or $1.20 per diluted share, for the quarter ended September 30, 2026, compared to $4.6 million, or $0.84 per diluted share, recognized for the quarter ended September 30, 2025. 

Virginia National Bankshares Corporation

The increase in net income for the quarter ended September 30, 2026 as compared to the same period in the prior year was primarily due to a 26 basis point increase in loan yields, a reduction of 9 basis points in cost of funds, and a payout from bank owned life insurance following the death of a former employee.   

President and Chief Executive Officer's comments:  "We are very pleased with our third quarter 2026 performance, highlighted by a 30-basis point expansion in net interest margin on a fully tax-equivalent basis (FTE)1,2 from the same quarter of 2025," stated Glenn W. Rust, President and Chief Executive Officer. "The improvement reflects our disciplined balance sheet management focused on delivering long-term value to our shareholders."

Key Performance Indicators

 Third quarter 2026 compared to Third quarter 2025

  • Return on average assets1 improved to 1.58% from 1.12%.
  • Return on average equity1 improved to 13.34% from 10.48%.
  • Net interest margin (FTE)1,2 improved to 3.73% from 3.43%.
  • Loan-to-deposit ratio decreased slightly to 89.1% from 89.2%.
  • Efficiency ratio (FTE)2 improved to 50.7% from 57.9%.

September 30, 2026 Balance Sheet Highlights

  • Gross loans outstanding as of September 30, 2026 and December 31, 2025 totaled $1.2 billion; this represents an increase of $12.3 million, or 1.0% from September 30, 2025 and $9.7 million, or 0.8% from December 31, 2025 to September 30, 2026.
  • Securities balances were $219.9 million at September 30, 2026, and $254.2 million at December 31, 2025. The balance declined $39.7 million from September 30, 2025 to September 30, 2026 and $34.3 million from December 31, 2025 to September 30, 2026 due to normal portfolio runoff from scheduled maturities and issuer calls.

  • Deposits at September 30, 2026 were $1.4 billion, a $32.2 million decrease from December 31, 2025, and a $14.6 million increase from September 30, 2025. As a primarily commercial bank, deposit fluctuations between periods are the result of normal seasonal customer behavior.

  • Outstanding borrowings from the Federal Home Loan Bank of Atlanta ("FHLB") were $20.0 million as of September 30, 2026 and December 31, 2025, and $30.0 million as of September 30, 2025. As of September 30, 2026, the Company had unused borrowing facilities in place of approximately $227.0 million and held no brokered deposits.

  • Book value per share increased to $35.01 as of September 30, 2026, compared to $32.89 as of September 30, 2025, and tangible book value per share (a non-GAAP financial measure)2 was $33.21 as of September 30, 2026 compared to $30.90 as of September 30, 2025. The increases were driven by strong earnings and retained profits that bolstered shareholders' equity.

Loans and Asset Quality

  • Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.36% as of September 30, 2026, 0.56% as of December 31, 2025 and 0.42% as of September 30, 2025.

  • Nonperforming assets amounted to $5.9 million as of September 30, 2026, compared to $9.2 million as of December 31, 2025, and $6.8 million as of September 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 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 September 30, 2026, 0.67% as of December 31, 2025 and 0.69% as of September 30, 2025. The consistent ACL ratio to total loans emphasizes our focus on high-quality credit relationships and strong underwriting. The government-guaranteed loans category continues to have a significant impact on the reserves year-over-year, as the guaranteed portion of these loans generally does not result in an ACL because expected credit losses are mitigated by the government guarantee.

  • For the three months ended September 30, 2026, the Company recorded a provision for credit losses on loans of $91 thousand due to loan growth and a recovery of $205 thousand in the reserve for unfunded commitments for a net recovery of $114 thousand. For the nine months ended September 30, 2026, the Company recognized a recovery of credit losses on loans of $52 thousand and a recovery of $167 thousand in the reserve for unfunded commitments for a net recovery of $219 thousand. The recovery of credit losses in the quarter and year-to-date was primarily driven by the recovery in the reserve for unfunded commitments as balances outstanding decreased.

Net Interest Income

  • Net interest income for the three months ended September 30, 2026 of $14.5 million increased $1.5 million, or 11.2%, compared to the three months ended September 30, 2025, predominantly due to decreased interest expense associated with deposit accounts and increased loan yields. On a year-to-date basis, net interest income at September 30, 2026 was $41.2 million compared to $38.2 million for the nine months ended September 30, 2025. 

  • Net interest margin (FTE)1, (a non-GAAP financial measure)2, for the three months ended September 30, 2026 was 3.73%, compared to 3.43% for the three months ended September 30, 2025. The net interest margin (FTE)1, (a non-GAAP financial measure)2 for the nine months ended September 30, 2026 was 3.59% compared to 3.37% for the same period in 2025.

  • Virginia National Bank's (the "Bank") yield on loans was 5.90% for the three months ended September 30, 2026, compared to 5.64% for the prior year same period. The accretion of the fair value mark related to purchased loans positively impacted interest income by 18 bps in the third quarter of 2026, and 13 bps in the third quarter of 2025. The yield on loans for the nine months ended September 30, 2026 was 5.73%, which was 12 bps over the same period for 2025.   
  • The overall cost of funds, including noninterest-bearing deposits, of 1.68% incurred in the three months ended September 30, 2026 decreased 9 bps from 1.77% in the same period in the prior year. The cost of interest-bearing deposits decreased period over period by 8 bps, from a cost of 2.26% to 2.18%. The cost of borrowings from the FHLB decreased 86 bps from the third quarter of 2025 to the third quarter of 2026, from 4.77% to 3.91%. On a year-to-date basis, at September 30, 2026, the overall cost of funds decreased 13 bps from 1.80% to 1.67%.

Noninterest Income

Noninterest income for the three months ended September 30, 2026 increased $0.3 million, or 24.1%, compared to the three months ended September 30, 2025. The increase is due to the payout from bank owned life insurance of $421 thousand netted against $157 thousand less in debit/credit card and ATM fees from decreased card usage. On a year-to-date basis, at September 30, 2026, the $4.8 million increase compared to the nine months ended September 30, 2025 reflects the aforementioned bank owned life insurance payout and a $4.7 million gain on the sale of a limited partnership interest netted against $386 thousand less in debit/credit card and ATM fees from decreased card usage.

Noninterest Expense

Noninterest expense for the three months ended September 30, 2026 decreased by $134 thousand, or 1.6%, compared to the three months ended September 30, 2025. The decrease in the 2026 quarter compared to the same quarter of last year is the result of continued management of administrative expenses. The $1.2 million decrease in noninterest expense for the nine months ended September 30, 2026 is due to reduced data processing expenses as a result of the renewal of the Bank's core contract in late 2025 and reduced other expenses (primarily legal and telecommunications expenses) compared to the same period of 2025.

Efficiency Ratio

The Company's efficiency ratio (FTE)2 improved to 50.7% for the three months ended September 30, 2026 compared to 57.9% for the three months ended September 30, 2025, as all the components of this ratio improved.

Income Taxes

The effective tax rates amounted to 18.7% and 19.5% for the three months ended September 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 third quarter of 2026. The remaining 70% of net income was retained.











1

Annualized.

2

Non-GAAP financial measure, 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. See "Reconciliation of Certain Quarterly Non-GAAP Financial Measures" 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 judgment 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)


September 30, 2026

December 31, 2025*

September 30, 2025

(Unaudited)




(Unaudited)

ASSETS







Cash and due from banks

$

5,765

$

5,798

$

6,166

Interest-bearing deposits in other banks

11,234


10,552


8,965

Federal funds sold

52,168


54,264


7,964

Securities:







Available-for-sale (AFS), at fair value

213,738


247,992


252,952

Restricted securities, at cost

6,195


6,172


6,647

Total securities

219,933


254,164


259,599

Loans, net of deferred fees and costs

1,247,313


1,237,577


1,235,000

Allowance for credit losses

(8,171)


(8,270)


(8,510)

Loans, net

1,239,142


1,229,307


1,226,490

Premises and equipment, net

11,695


11,687


11,775

Bank owned life insurance

41,505


41,302


40,977

Goodwill

7,768


7,768


7,768

Core deposit intangible, net

1,976


2,682


2,942

Right of use asset, net

10,409


6,297


6,666

Deferred tax asset, net

14,719


12,079


13,097

Accrued interest receivable and other assets

11,284


13,842


14,023

Total assets

$

1,627,598

$

1,649,742

$

1,606,432

LIABILITIES AND SHAREHOLDERS' EQUITY







Liabilities:







Demand deposits:







Noninterest-bearing

$

357,499

$

362,322

$

361,568

Interest-bearing

259,101


308,295


260,424

Money market and savings deposit accounts

510,349


469,815


460,160

Certificates of deposit and other time deposits

272,562


291,299


302,736

Total deposits

1,399,511


1,431,731


1,384,888

Borrowings

20,000


20,000


30,000

Junior subordinated debt, net

3,590


3,554


3,542

Lease liability

10,362


6,192


6,542

Accrued interest payable and other liabilities

4,111


4,104


4,101

Total liabilities

1,437,574


1,465,581


1,429,073

Commitments and contingent liabilities







Shareholders' equity:







Preferred stock, $2.50 par value

-


-


-

Common stock, $2.50 par value

13,424


13,327


13,318

Capital surplus

108,052


107,337


107,076

Retained earnings

109,134


94,165


90,149

Accumulated other comprehensive loss

(40,586)


(30,668)


(33,184)

Total shareholders' equity

190,024


184,161


177,359

Total liabilities and shareholders' equity

$

1,627,598

$

1,649,742

$

1,606,432









Common shares outstanding

5,427,691


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 nine months ended


September 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

Interest and dividend income:











Loans, including fees

$

18,379

$

17,500

$

52,900

$

51,864

Federal funds sold

723


283


1,505


530

Other interest-bearing deposits

46


55


128


142

Investment securities:











Taxable

1,076


1,199


3,245


3,773

Tax-exempt

319


322


967


968

Dividends

89


112


262


336

Total interest and dividend income

20,632


19,471


59,007


57,613













Interest expense:











Demand deposits

69


66


205


202

Money market and savings deposits

3,315


3,026


9,308


8,957

Certificates and other time deposits

2,442


2,713


7,505


8,437

Borrowings

197


513


583


1,604

Federal funds purchased

-


3


-


28

Junior subordinated debt

70


78


211


224

Total interest expense

6,093


6,399


17,812


19,452

Net interest income

14,539


13,072


41,195


38,161

(Recovery of) provision for credit losses

(114)


332


(219)


174

Net interest income after (recovery of) provision for credit losses

14,653


12,740


41,414


37,987













Noninterest income:











Wealth management fees

226


223


660


658

Deposit account fees

364


323


1,089


922

Debit/credit card and ATM fees

183


340


679


1,065

Bank owned life insurance income

761


318


1,412


918

Gains on sales or disposal of assets, net

-


-


5


278

Gain on sale of limited partnership investment

-


-


4,662


-

Other

143


147


691


580

Total noninterest income

1,677


1,351


9,198


4,421













Noninterest expense:











Salaries and employee benefits

4,045


3,909


12,071


11,708

Net occupancy

808


872


2,307


2,777

Equipment

214


182


612


569

Bank franchise tax

467


439


1,403


1,266

Computer software

204


303


632


825

Data processing

616


577


1,775


2,044

FDIC deposit insurance assessment

195


255


557


545

Marketing, advertising and promotion

141


171


662


604

Professional fees

292


256


973


843

Core deposit intangible amortization

224


271


707


850

Other

1,064


1,169


3,040


3,877

Total noninterest expense

8,270


8,404


24,739


25,908

Income before income taxes

8,060


5,687


25,873


16,500

Provision for income taxes

1,504


1,111


5,049


3,197

Net income

$

6,556

$

4,576

$

20,824

$

13,303













Net income per common share, basic

$

1.21

$

0.85

$

3.84

$

2.47

Net income per common share, diluted

$

1.20

$

0.84

$

3.82

$

2.45

Weighted average common shares outstanding, basic

5,426,050


5,391,979


5,419,806


5,387,658

Weighted average common shares outstanding, diluted

5,467,745


5,424,642


5,454,936


5,414,969

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)

(Unaudited)




At or for the three months ended


September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

Common Share Data:














Net income

$

6,556

$

9,008

$

5,259

$

5,958

$

4,576

Net income per weighted average share, basic

$

1.21

$

1.66

$

0.97

$

1.10

$

0.85

Net income per weighted average share, diluted

$

1.20

$

1.65

$

0.97

$

1.10

$

0.84

Weighted average shares outstanding, basic

5,426,050


5,423,642


5,409,543


5,392,763


5,391,979

Weighted average shares outstanding, diluted

5,467,745


5,455,403


5,443,437


5,424,154


5,424,642

Actual shares outstanding

5,427,691


5,424,431


5,422,513


5,393,140


5,391,979

Tangible book value per share at period end 4

$

33.21

$

34.05

$

32.51

$

32.21

$

30.90

Key Ratios:














Return on average assets 1

1.58

%

2.24

%

1.30

%

1.45

%

1.12

%

Return on average equity 1

13.34

%

18.81

%

11.34

%

13.04

%

10.48

%

Net interest margin (FTE) 1, 2

3.73

%

3.65

%

3.40

%

3.50

%

3.43

%

Efficiency ratio (FTE) 3

50.7

%

41.6

%

56.6

%

49.5

%

57.9

%

Loan-to-deposit ratio

89.1

%

87.6

%

86.7

%

86.4

%

89.2

%

Net Interest Income:














Net interest income

$

14,539

$

13,748

$

12,906

$

13,348

$

13,072

Net interest income (FTE) 2

$

14,625

$

13,835

$

12,991

$

13,433

$

13,158

Company Capital Ratios:














Tier 1 leverage ratio 5

13.33

%

13.38

%

12.70

%

12.52

%

12.26

%

Total risk-based capital ratio 5

22.05

%

21.59

%

20.80

%

20.42

%

20.15

%

Assets and Asset Quality:














Average earning assets

$

1,555,957

$

1,520,330

$

1,550,030

$

1,521,387

$

1,523,230

Average gross loans

$

1,234,915

$

1,235,696

$

1,233,478

$

1,223,703

$

1,230,805

Fair value mark on acquired loans

$

3,205

$

3,911

$

4,344

$

4,754

$

5,241
















Allowance for credit losses on loans:














Beginning of period

$

8,124

$

7,981

$

8,270

$

8,510

$

8,347

Provision for (recovery of) credit losses

91


138


(281)


(176)


253

Charge-offs

(83)


(65)


(93)


(126)


(146)

Recoveries

39


70


85


62


56

End of period

$

8,171

$

8,124

$

7,981

$

8,270

$

8,510
















Non-accrual loans

$

2,055

$

2,099

$

2,147

$

2,198

$

2,568

Loans 90 days or more past due and still accruing

3,846


3,692


3,841


7,042


4,201

Total nonperforming assets (NPA)

$

5,901

$

5,791

$

5,988

$

9,240

$

6,769
















NPA as a % of total assets

0.36

%

0.35

%

0.36

%

0.56

%

0.42

%

NPA as a % of gross loans

0.47

%

0.47

%

0.48

%

0.75

%

0.55

%

ACL to gross loans

0.66

%

0.66

%

0.64

%

0.67

%

0.69

%

Non-accruing loans to gross loans

0.16

%

0.17

%

0.17

%

0.18

%

0.21

%

Net charge-offs to average loans 1

0.01

%

0.00

%

0.00

%

0.02

%

0.03

%

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), using a Federal income tax rate of 21%.  This is a non-GAAP financial measure.  Refer to the Reconciliation of Certain Quarterly Non-GAAP Financial Measures table 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 Quarterly Non-GAAP Financial Measures table at the end of this release.

4

This is a non-GAAP financial measure.  Refer to the Reconciliation of Certain Quarterly Non-GAAP Financial Measures at the end of this release.

5

All ratios at September 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


September 30, 2026

September 30, 2025





Interest







Interest





Average

Income/

Average

Average

Income/

Average


Balance

Expense

Yield/Cost 4

Balance

Expense

Yield/Cost 4

ASSETS

















Interest Earning Assets:

















Securities:

















Taxable Securities and Dividends

$

170,787

$

1,165


2.73

%

$

193,809

$

1,311


2.71

%

Tax-Exempt Securities 1

63,508


405


2.55

%

65,222


408


2.50

%

Total Securities 1

234,295


1,570


2.68

%

259,031


1,719


2.65

%

Total Loans

1,234,915


18,379


5.90

%

1,230,805


17,500


5.64

%

Federal funds sold

77,483


723


3.70

%

25,482


283


4.41

%

Other interest-bearing deposits

9,264


46


1.97

%

7,912


55


2.76

%

Total Earning Assets

1,555,957


20,718


5.28

%

1,523,230


19,557


5.09

%

Less: Allowance for Credit Losses

(8,136)








(8,362)






Total Non-Earning Assets

102,881








106,699






Total Assets

$

1,650,702







$

1,621,567

























LIABILITIES AND SHAREHOLDERS' EQUITY

















Interest Bearing Liabilities:

















Interest Bearing Deposits:

















Interest Checking

$

260,990

$

69


0.10

%

$

260,217

$

66


0.10

%

Money Market and Savings Deposits

521,889


3,315


2.52

%

468,488


3,026


2.56

%

Time Deposits

278,750


2,442


3.48

%

290,246


2,713


3.71

%

Total Interest-Bearing Deposits

1,061,629


5,826


2.18

%

1,018,951


5,805


2.26

%

Borrowings

20,000


197


3.91

%

42,707


513


4.77

%

Federal funds purchased

-


-


0.00

%

250


3


4.76

%

Junior subordinated debt

3,583


70


7.75

%

3,535


78


8.75

%

Total Interest-Bearing Liabilities

1,085,212


6,093


2.23

%

1,065,443


6,399


2.38

%

Non-Interest-Bearing Liabilities:

















Demand deposits

355,730








371,859






Other liabilities

14,791








10,971






Total Liabilities

1,455,733








1,448,273






Shareholders' Equity

194,969








173,294






Total Liabilities & Shareholders' Equity

$

1,650,702







$

1,621,567






Net Interest Income (FTE) 3



$

14,625







$

13,158



Interest Rate Spread 2







3.05

%







2.71

%

Cost of Funds







1.68

%







1.77

%

Interest Expense as a Percentage of
     Average Earning Assets 4







1.55

%







1.67

%

Net Interest Margin (FTE) 3,  4







3.73

%







3.43

%

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 Reconciliation of Certain Quarterly Non-GAAP Financial Measures table at the end of this release.

2

Interest rate 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 Quarterly Non-GAAP Financial Measures table 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 nine months ended


September 30, 2026

September 30, 2025





Interest







Interest





Average

Income/

Average

Average

Income/

Average


Balance

Expense

Yield/Cost 4

Balance

Expense

Yield/Cost 4

ASSETS

















Interest Earning Assets:

















Securities:

















Taxable Securities and Dividends

$

179,781

$

3,507


2.60

%

$

199,991

$

4,109


2.74

%

Tax Exempt Securities 1

64,107


1,225


2.55

%

65,753


1,226


2.49

%

Total Securities 1

243,888


4,732


2.59

%

265,744


5,335


2.68

%

Total Loans

1,234,702


52,900


5.73

%

1,234,953


51,864


5.61

%

Federal funds sold

54,651


1,505


3.68

%

16,050


530


4.42

%

Other interest-bearing deposits

8,887


128


1.93

%

8,051


142


2.36

%

Total Earning Assets

1,542,128


59,265


5.14

%

1,524,798


57,871


5.07

%

Less: Allowance for Credit Losses

(8,135)








(8,398)






Total Non-Earning Assets

100,057








105,741






Total Assets

$

1,634,050







$

1,622,141

























LIABILITIES AND SHAREHOLDERS' EQUITY

















Interest Bearing Liabilities:

















Interest Bearing Deposits:

















Interest Checking

$

270,367

$

205


0.10

%

$

267,854

$

202


0.10

%

Money Market and Savings Deposits

499,688


9,308


2.49

%

465,665


8,957


2.57

%

Time Deposits

284,444


7,505


3.53

%

294,318


8,437


3.83

%

Total Interest-Bearing Deposits

1,054,499


17,018


2.16

%

1,027,837


17,596


2.29

%

Borrowings

20,000


583


3.90

%

44,915


1,604


4.77

%

Federal funds purchased

-


-


0.00

%

759


28


4.93

%

Junior subordinated debt

3,571


211


7.90

%

3,523


224


8.50

%

Total Interest-Bearing Liabilities

1,078,070


17,812


2.21

%

1,077,034


19,452


2.41

%

Non-Interest-Bearing Liabilities:

















Demand deposits

351,881








366,117






Other liabilities

12,361








9,891






Total Liabilities

1,442,312








1,453,042






Shareholders' Equity

191,738








169,099






Total Liabilities & Shareholders' Equity

$

1,634,050







$

1,622,141






Net Interest Income (FTE) 3



$

41,453







$

38,419



Interest Rate Spread 2







2.93

%







2.66

%

Cost of Funds







1.67

%







1.80

%

Interest Expense as a Percentage of
     Average Earning Assets 4







1.54

%







1.71

%

Net Interest Margin (FTE) 3, 4







3.59

%







3.37

%

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 Reconciliation of Certain Quarterly Non-GAAP Financial Measures table at the end of this release.

2

Interest rate 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 Quarterly Non-GAAP Financial 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


September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

Fully tax-equivalent measures














Net interest income (GAAP)

$

14,539

$

13,748

$

12,906

$

13,348

$

13,072

Fully tax-equivalent adjustment

86


87


85


85


86

Net interest income (FTE) 1 (non-GAAP)

$

14,625

$

13,835

$

12,991

$

13,433

$

13,158
















Efficiency ratio 2 (GAAP)

51.0

%

41.8

%

57.0

%

49.8

%

58.3

%

Fully tax-equivalent adjustment

-0.3

%

-0.2

%

-0.4

%

-0.3

%

-0.4

%

Efficiency ratio (FTE) 3 (non-GAAP)

50.7

%

41.6

%

56.6

%

49.5

%

57.9

%
















Net interest margin (GAAP)

3.71

%

3.63

%

3.38

%

3.48

%

3.40

%

Fully tax-equivalent adjustment

0.02

%

0.02

%

0.02

%

0.02

%

0.03

%

Net interest margin (FTE) 1 (non-GAAP)

3.73

%

3.65

%

3.40

%

3.50

%

3.43

%




As of


September 30, 2026

June 30, 2026

March 31, 2026

December 31, 2025

September 30, 2025

Other financial measures














Book value per share (GAAP)

$

35.01

$

35.89

$

34.39

$

34.15

$

32.89

Impact of intangible assets 4

(1.80)


(1.84)


(1.88)


(1.94)


(1.99)

Tangible book value per share (non-GAAP)

$

33.21

$

34.05

$

32.51

$

32.21

$

30.90


For the nine months ended


September 30,
2026

September 30,
2025

Fully tax-equivalent measures





Net interest income (GAAP)

$

41,195

$

38,161

Fully tax-equivalent adjustment

258


258

Net interest income (FTE)1 (non-GAAP)

$

41,453

$

38,419







Net interest margin (GAAP)

3.57

%

3.35

%

Fully tax-equivalent adjustment

0.02

%

0.02

%

Net interest margin (FTE)1 (non-GAAP)

3.59

%

3.37

%

 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. 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-2026-third-quarter-earnings-302923923.html

SOURCE Virginia National Bankshares Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Virginia National Bankshares' third-quarter 2026 earnings?

Virginia National Bankshares earned $6.6 million, or $1.20 per diluted share, for the quarter ended September 30, 2026. That compares with $4.6 million, or $0.84 per diluted share, for the same quarter in 2025.

Why did VABK record a credit-loss recovery in the third quarter of 2026?

The $114 thousand net recovery reflected a $205 thousand recovery in the reserve for unfunded commitments, offset by a $91 thousand loan credit-loss provision. The company attributed the unfunded-commitment reserve recovery primarily to lower outstanding balances and the loan provision to loan growth.

What dividend did Virginia National Bankshares pay in the third quarter of 2026?

Virginia National Bankshares declared and paid cash dividends of $0.36 per share, totaling $2.0 million, during the third quarter of 2026. The remaining 70% of net income was retained.

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