Exhibit 99.1
FOR IMMEDIATE RELEASE | INVESTOR RELATIONS CONTACT: |
| Tara Y. Harrison (434) 817-8587 |
VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES
RECORD 2022 FOURTH QUARTER AND RECORD FULL YEAR EARNINGS
Charlottesville, VA – January 31, 2023 - Virginia National Bankshares Corporation (NASDAQ: VABK) (the “Company”) today reported record quarterly net income of $7.1 million, or $1.32 per diluted share, for the quarter ended December 31, 2022, which represents a 35% increase over net income of $5.2 million, or $0.98 per diluted share, recognized for the quarter ended December 31, 2021. For the twelve months ended December 31, 2022, record net income of $23.4 million, or $4.38 per diluted share, was recognized, compared to $10.1 million, or $2.14 per diluted share, for the twelve months ended December 31, 2021. Note that pre-tax merger and merger-related expenses of $7.4 million were incurred in the year-to-date period ended December 31, 2021, in connection with the April 1, 2021 mergers of Fauquier Bankshares, Inc. (“Fauquier”) and The Fauquier Bank ("TFB") with and into the Company and Virginia National Bank (the "Bank"), respectively.
“We are proud to post record results for the fourth quarter and calendar year of 2022,” commented President and Chief Executive Officer, Glenn W. Rust. “Our earn back period for the 2021 merger with Fauquier was less than two years and we continue to reap the benefits of an effectively managed overhead cost structure. We posted a return on average assets of 1.30% for 2022 and we continue to maintain a strong credit discipline.”
Fourth Quarter 2022 Highlights
Loans and Asset Quality
__________________________________________________________________
1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.
Page 1 of 11
Loans and Asset Quality (continued)
Net Interest Income
Noninterest Income
Noninterest income for the three months ended December 31, 2022 decreased $100 thousand, or 3%, compared to the three months ended December 31, 2021, primarily due to the decline in wealth management fees, due to an anticipated reduction in the number of accounts served by the Trust & Estate segment and the decline in performance fees collected by Masonry Capital Management. In the fourth quarter of 2022, the Company received a $267 thousand recovery of unearned premiums related to the loss of insurance on the student loan portfolio, bringing the total recovered life-to-date to over $1 million. The Company also closed on the sale of Sturman Wealth Advisors, as noted above, in the current period.
Noninterest Expense
Noninterest expense for the three months ended December 31, 2022 increased $592 thousand, or 7%, compared to the three months ended December 31, 2021, due to combination of several variances, including an increase in losses due to fraud and an impairment charge on an asset held for sale, offset by reduced plastics expense as a result of changing vendors and lower salaries and employee benefits as a result of efficiencies gained from the merger. In addition, the fourth quarter of 2021 noninterest expense included a favorable adjustment to merger and merger-related expenses after receiving a refund from a third-party vendor for system implementation credits and adjusting merger-related accrued bonuses.
Page 2 of 11
Book Value
Book value per share was $25.05 as of December 31, 2022 and $30.50 as of December 31, 2021, and tangible book value per share (a non-GAAP financial measure)1 was $22.36 as of December 31, 2022 compared to $27.36 as of December 31, 2021. These values declined due to the increase in unrealized losses on the investment portfolio period over period.
Income Taxes
The effective tax rate for the twelve months ended December 31, 2022 amounted to 17.9% compared to 15.5% for the twelve months ended December 31, 2021, which are both lower than the statutory rate due to the recognition of low-income housing tax credits and the effect of tax-exempt income from municipal bonds and bank owned life insurance policies. The 2021 effective tax rate was also impacted by the non-deductibility of certain merger-related expenses for tax purposes.
Dividends
Cash dividends of $1.6 million, or $0.30 per share, were declared during the current quarter, and $6.4 million, or $1.20 per share, were declared during the current year.
_____________________________________________________________________
1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.
Page 3 of 11
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 nine banking offices throughout Fauquier and Prince William counties, three banking offices in Charlottesville and Albemarle County, 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. Investment management services are offered through Masonry Capital Management, LLC, a registered investment adviser and wholly-owned subsidiary of the Company.
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 operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of GAAP to non-GAAP measures are included 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 judgement 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: general economic and market conditions, including the effects of declines in real estate values, an increase in unemployment levels and general economic contraction as a result of COVID-19 or other pandemics; fluctuations in interest rates, deposits, loan demand, and asset quality; assumptions that underlie the Company’s allowance for loan losses; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts or public health events (e.g., COVID-19 or other pandemics), and of governmental and societal responses thereto; the performance of vendors or other parties with which the Company does business; competition; technology; changes in laws, regulations and guidance; changes in accounting principles or guidelines; performance of assets under management; expected revenue synergies and cost savings from the recently completed merger with Fauquier may not be fully realized or realized within the expected timeframe; the businesses of the Company and Fauquier may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; revenues following the merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the merger; and other factors impacting financial services businesses. 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, 2021 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.
Page 4 of 11
VIRGINIA NATIONAL BANKSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
| December 31, 2022 |
|
| December 31, 2021* |
| ||
| (Unaudited) |
|
|
|
| ||
ASSETS |
|
|
|
|
| ||
Cash and due from banks | $ | 20,993 |
|
| $ | 20,345 |
|
Interest-bearing deposits in other banks |
| 19,098 |
|
|
| 336,032 |
|
Federal funds sold |
| 45 |
|
|
| 152,463 |
|
Securities: |
|
|
|
|
| ||
Available for sale, at fair value |
| 538,186 |
|
|
| 303,817 |
|
Restricted securities, at cost |
| 5,137 |
|
|
| 4,950 |
|
Total securities |
| 543,323 |
|
|
| 308,767 |
|
Loans, net of deferred fees and costs |
| 936,415 |
|
|
| 1,061,211 |
|
Allowance for loan losses |
| (5,552 | ) |
|
| (5,984 | ) |
Loans, net |
| 930,863 |
|
|
| 1,055,227 |
|
Premises and equipment, net |
| 17,808 |
|
|
| 25,093 |
|
Assets held for sale |
| 965 |
|
|
| - |
|
Bank owned life insurance |
| 38,552 |
|
|
| 31,234 |
|
Goodwill |
| 7,768 |
|
|
| 8,140 |
|
Core deposit intangible, net |
| 6,586 |
|
|
| 8,271 |
|
Other intangible assets, net |
| - |
|
|
| 274 |
|
Other real estate owned, net |
| - |
|
|
| 611 |
|
Right of use asset, net |
| 6,536 |
|
|
| 7,583 |
|
Deferred tax asset, net |
| 17,165 |
|
|
| 4,840 |
|
Accrued interest receivable and other assets |
| 13,151 |
|
|
| 13,304 |
|
Total assets | $ | 1,622,853 |
|
| $ | 1,972,184 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
| ||
Liabilities: |
|
|
|
|
| ||
Demand deposits: |
|
|
|
|
| ||
Noninterest-bearing | $ | 495,649 |
|
| $ | 522,281 |
|
Interest-bearing |
| 399,983 |
|
|
| 446,314 |
|
Money market and savings deposit accounts |
| 467,600 |
|
|
| 665,530 |
|
Certificates of deposit and other time deposits |
| 115,106 |
|
|
| 162,045 |
|
Total deposits |
| 1,478,338 |
|
|
| 1,796,170 |
|
Junior subordinated debt, net |
| 3,413 |
|
|
| 3,367 |
|
Lease liability |
| 6,173 |
|
|
| 7,108 |
|
Accrued interest payable and other liabilities |
| 1,513 |
|
|
| 3,552 |
|
Total liabilities |
| 1,489,437 |
|
|
| 1,810,197 |
|
Commitments and contingent liabilities |
|
|
|
|
| ||
Shareholders' equity: |
|
|
|
|
| ||
Preferred stock, $2.50 par value |
| - |
|
|
| - |
|
Common stock, $2.50 par value |
| 13,214 |
|
|
| 13,178 |
|
Capital surplus |
| 105,344 |
|
|
| 104,584 |
|
Retained earnings |
| 63,482 |
|
|
| 46,436 |
|
Accumulated other comprehensive loss |
| (48,624 | ) |
|
| (2,211 | ) |
Total shareholders' equity |
| 133,416 |
|
|
| 161,987 |
|
Total liabilities and shareholders' equity | $ | 1,622,853 |
|
| $ | 1,972,184 |
|
Common shares outstanding |
| 5,337,271 |
|
|
| 5,308,335 |
|
Common shares authorized |
| 10,000,000 |
|
|
| 10,000,000 |
|
Preferred shares outstanding |
| - |
|
|
| - |
|
Preferred shares authorized |
| 2,000,000 |
|
|
| 2,000,000 |
|
* Derived from audited consolidated financial statements
Page 5 of 11
VIRGINIA NATIONAL BANKSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
Page 6 of 11
|
| For the three months ended |
|
| For the twelve months ended |
| ||||||||||
|
| December 31, 2022 |
|
| December 31, 2021 |
|
| December 31, 2022 |
|
| December 31, 2021 |
| ||||
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Loans, including fees |
| $ | 11,828 |
|
| $ | 11,995 |
|
| $ | 44,231 |
|
| $ | 43,899 |
|
Federal funds sold |
|
| 426 |
|
|
| 61 |
|
|
| 1,088 |
|
|
| 139 |
|
Other interest-bearing deposits |
|
| 494 |
|
|
| 139 |
|
|
| 1,467 |
|
|
| 233 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Taxable |
|
| 3,116 |
|
|
| 804 |
|
|
| 8,416 |
|
|
| 2,810 |
|
Tax exempt |
|
| 324 |
|
|
| 292 |
|
|
| 1,249 |
|
|
| 1,021 |
|
Dividends |
|
| 88 |
|
|
| 49 |
|
|
| 280 |
|
|
| 170 |
|
Total interest and dividend income |
|
| 16,276 |
|
|
| 13,340 |
|
|
| 56,731 |
|
|
| 48,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Demand and savings deposits |
|
| 682 |
|
|
| 710 |
|
|
| 2,327 |
|
|
| 2,308 |
|
Certificates and other time deposits |
|
| 158 |
|
|
| 222 |
|
|
| 657 |
|
|
| 1,108 |
|
Junior subordinated debt |
|
| 52 |
|
|
| 49 |
|
|
| 200 |
|
|
| (132 | ) |
Total interest expense |
|
| 892 |
|
|
| 981 |
|
|
| 3,184 |
|
|
| 3,284 |
|
Net interest income |
|
| 15,384 |
|
|
| 12,359 |
|
|
| 53,547 |
|
|
| 44,988 |
|
Provision for loan losses |
|
| 136 |
|
|
| 537 |
|
|
| 106 |
|
|
| 1,014 |
|
Net interest income after provision for loan losses |
|
| 15,248 |
|
|
| 11,822 |
|
|
| 53,441 |
|
|
| 43,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Wealth management fees |
|
| 721 |
|
|
| 1,455 |
|
|
| 2,440 |
|
|
| 3,508 |
|
Advisory and brokerage income |
|
| 131 |
|
|
| 246 |
|
|
| 770 |
|
|
| 1,154 |
|
Deposit account fees |
|
| 433 |
|
|
| 477 |
|
|
| 1,799 |
|
|
| 1,459 |
|
Debit/credit card and ATM fees |
|
| 648 |
|
|
| 509 |
|
|
| 2,794 |
|
|
| 2,070 |
|
Earnings/increase in value of bank owned life insurance |
|
| 254 |
|
|
| 201 |
|
|
| 963 |
|
|
| 708 |
|
Resolution of commercial dispute |
|
| - |
|
|
| - |
|
|
| 2,400 |
|
|
| - |
|
Gain on sale of business line |
|
| 404 |
|
|
| - |
|
|
| 404 |
|
|
| - |
|
Gains (losses) on sale of assets, net |
|
| (74 | ) |
|
| 1 |
|
|
| 1,043 |
|
|
| 81 |
|
Other |
|
| 411 |
|
|
| 139 |
|
|
| 1,048 |
|
|
| 1,485 |
|
Total noninterest income |
|
| 2,928 |
|
|
| 3,028 |
|
|
| 13,661 |
|
|
| 10,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Salaries and employee benefits |
|
| 4,191 |
|
|
| 4,424 |
|
|
| 17,260 |
|
|
| 16,129 |
|
Net occupancy |
|
| 729 |
|
|
| 932 |
|
|
| 4,526 |
|
|
| 3,575 |
|
Equipment |
|
| 111 |
|
|
| 305 |
|
|
| 897 |
|
|
| 966 |
|
Bank franchise tax |
|
| 304 |
|
|
| 214 |
|
|
| 1,216 |
|
|
| 1,136 |
|
Computer software |
|
| 229 |
|
|
| 276 |
|
|
| 1,136 |
|
|
| 1,020 |
|
Data processing |
|
| 805 |
|
|
| 620 |
|
|
| 2,954 |
|
|
| 2,793 |
|
FDIC deposit insurance assessment |
|
| 90 |
|
|
| 264 |
|
|
| 511 |
|
|
| 858 |
|
Marketing, advertising and promotion |
|
| 351 |
|
|
| 216 |
|
|
| 1,224 |
|
|
| 922 |
|
Merger and merger-related expenses |
|
| - |
|
|
| (664 | ) |
|
| - |
|
|
| 7,423 |
|
Plastics expense |
|
| 72 |
|
|
| 389 |
|
|
| 394 |
|
|
| 978 |
|
Professional fees |
|
| 306 |
|
|
| 244 |
|
|
| 1,357 |
|
|
| 1,117 |
|
Core deposit intangible amortization |
|
| 403 |
|
|
| 544 |
|
|
| 1,684 |
|
|
| 1,389 |
|
Impairment on assets held for sale |
|
| 242 |
|
|
| - |
|
|
| 242 |
|
|
| - |
|
Other |
|
| 1,683 |
|
|
| 1,160 |
|
|
| 5,155 |
|
|
| 4,216 |
|
Total noninterest expense |
|
| 9,516 |
|
|
| 8,924 |
|
|
| 38,556 |
|
|
| 42,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Income before income taxes |
|
| 8,660 |
|
|
| 5,926 |
|
|
| 28,546 |
|
|
| 11,917 |
|
Provision for income taxes |
|
| 1,603 |
|
|
| 707 |
|
|
| 5,108 |
|
|
| 1,846 |
|
Net income |
| $ | 7,057 |
|
| $ | 5,219 |
|
| $ | 23,438 |
|
| $ | 10,071 |
|
Net income per common share, basic |
| $ | 1.32 |
|
| $ | 0.98 |
|
| $ | 4.40 |
|
| $ | 2.16 |
|
Page 7 of 11
Net income per common share, diluted |
| $ | 1.32 |
|
| $ | 0.98 |
|
| $ | 4.38 |
|
| $ | 2.14 |
|
Weighted average common shares outstanding, basic |
|
| 5,333,902 |
|
|
| 5,308,108 |
|
|
| 5,324,740 |
|
|
| 4,668,761 |
|
Weighted average common shares outstanding, diluted |
|
| 5,362,220 |
|
|
| 5,338,088 |
|
|
| 5,351,358 |
|
|
| 4,695,405 |
|
Page 8 of 11
VIRGINIA NATIONAL BANKSHARES CORPORATION
FINANCIAL HIGHLIGHTS
(dollars in thousands, except per share data)
(Unaudited)
|
| At or For the Three Months Ended |
| |||||||||||||||||
|
| December 31, |
|
| September 30, 2022 |
|
| June 30, 2022 |
|
| March 31, 2022 |
|
| December 31, |
| |||||
Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income per weighted average share, basic |
| $ | 1.32 |
|
| $ | 1.08 |
|
| $ | 1.07 |
|
| $ | 0.93 |
|
| $ | 0.98 |
|
Net income per weighted average share, diluted |
| $ | 1.32 |
|
| $ | 1.08 |
|
| $ | 1.06 |
|
| $ | 0.92 |
|
| $ | 0.98 |
|
Weighted average shares outstanding, basic |
|
| 5,333,902 |
|
|
| 5,326,543 |
|
|
| 5,326,271 |
|
|
| 5,311,983 |
|
|
| 5,308,108 |
|
Weighted average shares outstanding, diluted |
|
| 5,362,220 |
|
|
| 5,348,900 |
|
|
| 5,347,008 |
|
|
| 5,343,564 |
|
|
| 5,338,088 |
|
Actual shares outstanding |
|
| 5,327,271 |
|
|
| 5,327,271 |
|
|
| 5,326,271 |
|
|
| 5,326,271 |
|
|
| 5,308,335 |
|
Tangible book value per share at period end |
| $ | 22.36 |
|
| $ | 20.77 |
|
| $ | 22.24 |
|
| $ | 24.37 |
|
| $ | 27.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Key Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average assets 1 |
|
| 1.65 | % |
|
| 1.30 | % |
|
| 1.27 | % |
|
| 1.03 | % |
|
| 1.06 | % |
Return on average equity 1 |
|
| 22.23 | % |
|
| 16.50 | % |
|
| 16.16 | % |
|
| 12.53 | % |
|
| 12.86 | % |
Net interest margin (FTE) 2 |
|
| 3.91 | % |
|
| 3.47 | % |
|
| 3.02 | % |
|
| 2.59 | % |
|
| 2.72 | % |
Efficiency ratio (FTE) 3 |
|
| 51.7 | % |
|
| 57.0 | % |
|
| 58.3 | % |
|
| 62.0 | % |
|
| 57.7 | % |
Loan-to-deposit ratio |
|
| 63.3 | % |
|
| 59.0 | % |
|
| 60.1 | % |
|
| 56.8 | % |
|
| 59.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income |
| $ | 15,384 |
|
| $ | 14,277 |
|
| $ | 12,461 |
|
| $ | 11,425 |
|
| $ | 12,359 |
|
Net interest income (FTE) 2 |
| $ | 15,470 |
|
| $ | 14,361 |
|
| $ | 12,543 |
|
| $ | 11,490 |
|
| $ | 12,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Capital Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tier 1 leverage ratio |
|
| 9.77 | % |
|
| 9.17 | % |
|
| 8.79 | % |
|
| 8.03 | % |
|
| 7.61 | % |
Total risk-based capital ratio |
|
| 17.64 | % |
|
| 16.97 | % |
|
| 16.51 | % |
|
| 15.66 | % |
|
| 14.56 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Assets and Asset Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average earning assets |
| $ | 1,568,765 |
|
| $ | 1,644,124 |
|
| $ | 1,668,471 |
|
| $ | 1,802,461 |
|
| $ | 1,817,010 |
|
Average gross loans |
| $ | 938,740 |
|
| $ | 959,086 |
|
| $ | 984,883 |
|
| $ | 1,031,593 |
|
| $ | 1,088,278 |
|
Paycheck Protection Program loans, end of period |
| $ | 234 |
|
| $ | 254 |
|
| $ | 1,925 |
|
| $ | 9,976 |
|
| $ | 24,482 |
|
Fair value mark on acquired loans |
| $ | 15,887 |
|
| $ | 17,046 |
|
| $ | 17,502 |
|
| $ | 17,920 |
|
| $ | 18,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Beginning of period |
| $ | 5,485 |
|
| $ | 5,503 |
|
| $ | 5,834 |
|
| $ | 5,984 |
|
| $ | 5,623 |
|
Provision for (recovery of) loan losses |
|
| 136 |
|
|
| 39 |
|
|
| (217 | ) |
|
| 148 |
|
|
| 537 |
|
Charge-offs |
|
| (472 | ) |
|
| (119 | ) |
|
| (191 | ) |
|
| (473 | ) |
|
| (230 | ) |
Recoveries |
|
| 403 |
|
|
| 62 |
|
|
| 77 |
|
|
| 175 |
|
|
| 54 |
|
Net charge-offs |
|
| (69 | ) |
|
| (57 | ) |
|
| (114 | ) |
|
| (298 | ) |
|
| (176 | ) |
End of period |
| $ | 5,552 |
|
| $ | 5,485 |
|
| $ | 5,503 |
|
| $ | 5,834 |
|
| $ | 5,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Non-accrual loans 4 |
| $ | 673 |
|
| $ | 607 |
|
| $ | 511 |
|
| $ | 518 |
|
| $ | 495 |
|
Loans 90 days or more past due and still accruing 5 |
|
| 705 |
|
|
| 859 |
|
|
| 626 |
|
|
| 837 |
|
|
| 800 |
|
OREO |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 611 |
|
|
| 611 |
|
Total nonperforming assets (NPA) |
| $ | 1,378 |
|
| $ | 1,466 |
|
| $ | 1,137 |
|
| $ | 1,966 |
|
| $ | 1,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
NPA as a % of total assets |
|
| 0.08 | % |
|
| 0.08 | % |
|
| 0.07 | % |
|
| 0.10 | % |
|
| 0.10 | % |
NPA as a % of gross loans plus OREO |
|
| 0.15 | % |
|
| 0.16 | % |
|
| 0.12 | % |
|
| 0.20 | % |
|
| 0.18 | % |
ALLL to gross loans |
|
| 0.59 | % |
|
| 0.58 | % |
|
| 0.57 | % |
|
| 0.58 | % |
|
| 0.56 | % |
ALLL + fair value mark to gross loans (non-GAAP) |
|
| 2.29 | % |
|
| 2.38 | % |
|
| 2.39 | % |
|
| 2.35 | % |
|
| 2.30 | % |
Non-accruing loans to gross loans 4 |
|
| 0.07 | % |
|
| 0.06 | % |
|
| 0.05 | % |
|
| 0.05 | % |
|
| 0.05 | % |
Net charge-offs to average loans 1 |
|
| 0.03 | % |
|
| 0.02 | % |
|
| 0.05 | % |
|
| 0.12 | % |
|
| 0.06 | % |
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) basis, using a Federal income tax rate of 21%.
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 Non-GAAP Financial (FTE) Measures at the end of this release.
4 Acquired loans which otherwise would be in non-accrual status are not included in this figure, as they earn interest through the yield accretion.
5 Past due loans from the acquired portfolio are included at fair value.
Page 9 of 11
VIRGINIA NATIONAL BANKSHARES CORPORATION
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)
(dollars in thousands)
(Unaudited)
|
| For the three months ended |
| |||||||||||||||||||||
|
| December 31, 2022 |
|
| December 31, 2021 |
| ||||||||||||||||||
|
|
|
|
| Interest |
|
|
|
|
|
|
|
| Interest |
|
|
|
| ||||||
|
| Average |
|
| Income/ |
|
| Average |
|
| Average |
|
| Income/ |
|
| Average |
| ||||||
|
| Balance |
|
| Expense |
|
| Yield/Cost |
|
| Balance |
|
| Expense |
|
| Yield/Cost |
| ||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Taxable Securities |
| $ | 471,566 |
|
| $ | 3,204 |
|
|
| 2.72 | % |
| $ | 225,757 |
|
| $ | 853 |
|
|
| 1.51 | % |
Tax Exempt Securities 1 |
|
| 67,090 |
|
|
| 410 |
|
|
| 2.44 | % |
|
| 63,083 |
|
|
| 370 |
|
|
| 2.35 | % |
Total Securities 1 |
|
| 538,656 |
|
|
| 3,614 |
|
|
| 2.68 | % |
|
| 288,840 |
|
|
| 1,223 |
|
|
| 1.69 | % |
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Real Estate |
|
| 820,751 |
|
|
| 10,322 |
|
|
| 4.99 | % |
|
| 923,040 |
|
|
| 10,456 |
|
|
| 4.49 | % |
Commercial |
|
| 71,730 |
|
|
| 785 |
|
|
| 4.34 | % |
|
| 109,024 |
|
|
| 846 |
|
|
| 3.08 | % |
Consumer |
|
| 46,259 |
|
|
| 721 |
|
|
| 6.18 | % |
|
| 56,214 |
|
|
| 693 |
|
|
| 4.89 | % |
Total Loans |
|
| 938,740 |
|
|
| 11,828 |
|
|
| 5.00 | % |
|
| 1,088,278 |
|
|
| 11,995 |
|
|
| 4.37 | % |
Fed Funds Sold |
|
| 46,042 |
|
|
| 426 |
|
|
| 3.67 | % |
|
| 152,435 |
|
|
| 61 |
|
|
| 0.16 | % |
Other interest-bearing deposits |
|
| 45,327 |
|
|
| 494 |
|
|
| 4.32 | % |
|
| 287,457 |
|
|
| 139 |
|
|
| 0.19 | % |
Total Earning Assets |
|
| 1,568,765 |
|
|
| 16,362 |
|
|
| 4.14 | % |
|
| 1,817,010 |
|
|
| 13,418 |
|
|
| 2.93 | % |
Less: Allowance for Loan Losses |
|
| (5,395 | ) |
|
|
|
|
|
|
|
| (5,704 | ) |
|
|
|
|
|
| ||||
Total Non-Earning Assets |
|
| 135,015 |
|
|
|
|
|
|
|
|
| 140,539 |
|
|
|
|
|
|
| ||||
Total Assets |
| $ | 1,698,385 |
|
|
|
|
|
|
|
| $ | 1,951,845 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Bearing Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Checking |
| $ | 403,570 |
|
| $ | 55 |
|
|
| 0.05 | % |
| $ | 421,372 |
|
| $ | 70 |
|
|
| 0.07 | % |
Money Market and Savings Deposits |
|
| 500,397 |
|
|
| 627 |
|
|
| 0.50 | % |
|
| 660,438 |
|
|
| 639 |
|
|
| 0.38 | % |
Time Deposits |
|
| 125,334 |
|
|
| 158 |
|
|
| 0.50 | % |
|
| 162,584 |
|
|
| 222 |
|
|
| 0.54 | % |
Total Interest-Bearing Deposits |
|
| 1,029,301 |
|
|
| 840 |
|
|
| 0.32 | % |
|
| 1,244,394 |
|
|
| 931 |
|
|
| 0.30 | % |
Borrowings |
|
| 2 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Junior subordinated debt |
|
| 3,406 |
|
|
| 52 |
|
|
| 6.06 | % |
|
| 3,360 |
|
|
| 50 |
|
|
| 5.90 | % |
Total Interest-Bearing Liabilities |
|
| 1,032,709 |
|
|
| 892 |
|
|
| 0.34 | % |
|
| 1,247,754 |
|
|
| 981 |
|
|
| 0.31 | % |
Non-Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Demand deposits |
|
| 531,719 |
|
|
|
|
|
|
|
|
| 532,397 |
|
|
|
|
|
|
| ||||
Other liabilities |
|
| 8,019 |
|
|
|
|
|
|
|
|
| 10,741 |
|
|
|
|
|
|
| ||||
Total Liabilities |
|
| 1,572,447 |
|
|
|
|
|
|
|
|
| 1,790,892 |
|
|
|
|
|
|
| ||||
Shareholders' Equity |
|
| 125,938 |
|
|
|
|
|
|
|
|
| 160,953 |
|
|
|
|
|
|
| ||||
Total Liabilities & Shareholders' Equity |
| $ | 1,698,385 |
|
|
|
|
|
|
|
| $ | 1,951,845 |
|
|
|
|
|
|
| ||||
Net Interest Income (FTE) |
|
|
|
| $ | 15,470 |
|
|
|
|
|
|
|
| $ | 12,437 |
|
|
|
| ||||
Interest Rate Spread 2 |
|
|
|
|
|
|
|
| 3.80 | % |
|
|
|
|
|
|
|
| 2.62 | % | ||||
Cost of Funds |
|
|
|
|
|
|
|
| 0.23 | % |
|
|
|
|
|
|
|
| 0.22 | % | ||||
Interest Expense as a Percentage of |
|
|
|
|
|
|
|
| 0.23 | % |
|
|
|
|
|
|
|
| 0.21 | % | ||||
Net Interest Margin (FTE) 3 |
|
|
|
|
|
|
|
| 3.91 | % |
|
|
|
|
|
|
|
| 2.72 | % |
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 Reconcilement of Non-GAAP Measures table at the end of this release.
2 Interest 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.
Page 10 of 11
VIRGINIA NATIONAL BANKSHARES CORPORATION
AVERAGE BALANCES, INCOME AND EXPENSES, YIELDS AND RATES (TAXABLE EQUIVALENT BASIS)
(dollars in thousands)
(Unaudited)
|
| For the twelve months ended |
| |||||||||||||||||||||
|
| December 31, 2022 |
|
| December 31, 2021 |
| ||||||||||||||||||
|
|
|
|
| Interest |
|
|
|
|
|
|
|
| Interest |
|
|
|
| ||||||
|
| Average |
|
| Income/ |
|
| Average |
|
| Average |
|
| Income/ |
|
| Average |
| ||||||
|
| Balance |
|
| Expense |
|
| Yield/Cost |
|
| Balance |
|
| Expense |
|
| Yield/Cost |
| ||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Taxable Securities |
| $ | 373,680 |
|
| $ | 8,696 |
|
|
| 2.33 | % |
| $ | 198,450 |
|
| $ | 2,980 |
|
|
| 1.50 | % |
Tax Exempt Securities 1 |
|
| 65,861 |
|
|
| 1,582 |
|
|
| 2.40 | % |
|
| 53,716 |
|
|
| 1,292 |
|
|
| 2.41 | % |
Total Securities 1 |
|
| 439,541 |
|
|
| 10,278 |
|
|
| 2.34 | % |
|
| 252,166 |
|
|
| 4,272 |
|
|
| 1.69 | % |
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Real Estate |
|
| 847,238 |
|
|
| 38,011 |
|
|
| 4.49 | % |
|
| 808,707 |
|
|
| 35,303 |
|
|
| 4.37 | % |
Commercial |
|
| 81,410 |
|
|
| 3,583 |
|
|
| 4.40 | % |
|
| 145,462 |
|
|
| 5,731 |
|
|
| 3.94 | % |
Consumer |
|
| 49,619 |
|
|
| 2,637 |
|
|
| 5.31 | % |
|
| 63,039 |
|
|
| 2,865 |
|
|
| 4.54 | % |
Total Loans |
|
| 978,267 |
|
|
| 44,231 |
|
|
| 4.52 | % |
|
| 1,017,208 |
|
|
| 43,899 |
|
|
| 4.32 | % |
Fed Funds Sold |
|
| 100,033 |
|
|
| 1,088 |
|
|
| 1.09 | % |
|
| 109,104 |
|
|
| 139 |
|
|
| 0.13 | % |
Other interest-bearing deposits |
|
| 161,260 |
|
|
| 1,467 |
|
|
| 0.91 | % |
|
| 160,960 |
|
|
| 233 |
|
|
| 0.14 | % |
Total Earning Assets |
|
| 1,679,101 |
|
|
| 57,064 |
|
|
| 3.40 | % |
|
| 1,539,438 |
|
|
| 48,543 |
|
|
| 3.15 | % |
Less: Allowance for Loan Losses |
|
| (5,702 | ) |
|
|
|
|
|
|
|
| (5,297 | ) |
|
|
|
|
|
| ||||
Total Non-Earning Assets |
|
| 124,525 |
|
|
|
|
|
|
|
|
| 115,193 |
|
|
|
|
|
|
| ||||
Total Assets |
| $ | 1,797,924 |
|
|
|
|
|
|
|
| $ | 1,649,334 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Bearing Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest Checking |
| $ | 409,504 |
|
| $ | 230 |
|
|
| 0.06 | % |
| $ | 355,419 |
|
| $ | 261 |
|
|
| 0.07 | % |
Money Market and Savings Deposits |
|
| 563,374 |
|
|
| 2,097 |
|
|
| 0.37 | % |
|
| 529,027 |
|
|
| 2,047 |
|
|
| 0.39 | % |
Time Deposits |
|
| 144,564 |
|
|
| 657 |
|
|
| 0.45 | % |
|
| 152,211 |
|
|
| 1,108 |
|
|
| 0.73 | % |
Total Interest-Bearing Deposits |
|
| 1,117,442 |
|
|
| 2,984 |
|
|
| 0.27 | % |
|
| 1,036,657 |
|
|
| 3,416 |
|
|
| 0.33 | % |
Borrowings |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 23,700 |
|
|
| (280 | ) |
|
| -1.18 | % |
Junior subordinated debt |
|
| 3,389 |
|
|
| 200 |
|
|
| 5.90 | % |
|
| 2,565 |
|
|
| 148 |
|
|
| 5.77 | % |
Total Interest-Bearing Liabilities |
|
| 1,120,831 |
|
|
| 3,184 |
|
|
| 0.28 | % |
|
| 1,062,922 |
|
|
| 3,284 |
|
|
| 0.31 | % |
Non-Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Demand deposits |
|
| 526,389 |
|
|
|
|
|
|
|
|
| 434,989 |
|
|
|
|
|
|
| ||||
Other liabilities |
|
| 9,581 |
|
|
|
|
|
|
|
|
| 10,875 |
|
|
|
|
|
|
| ||||
Total Liabilities |
|
| 1,656,801 |
|
|
|
|
|
|
|
|
| 1,508,786 |
|
|
|
|
|
|
| ||||
Shareholders' Equity |
|
| 141,123 |
|
|
|
|
|
|
|
|
| 140,548 |
|
|
|
|
|
|
| ||||
Total Liabilities & Shareholders' Equity |
| $ | 1,797,924 |
|
|
|
|
|
|
|
| $ | 1,649,334 |
|
|
|
|
|
|
| ||||
Net Interest Income (FTE) |
|
|
|
| $ | 53,880 |
|
|
|
|
|
|
|
| $ | 45,259 |
|
|
|
| ||||
Interest Rate Spread 2 |
|
|
|
|
|
|
|
| 3.11 | % |
|
|
|
|
|
|
|
| 2.84 | % | ||||
Cost of Funds |
|
|
|
|
|
|
|
| 0.19 | % |
|
|
|
|
|
|
|
| 0.22 | % | ||||
Interest Expense as a Percentage of |
|
|
|
|
|
|
|
| 0.19 | % |
|
|
|
|
|
|
|
| 0.21 | % | ||||
Net Interest Margin (FTE) 3 |
|
|
|
|
|
|
|
| 3.21 | % |
|
|
|
|
|
|
|
| 2.94 | % |
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 Reconcilement of Non-GAAP Measures table at the end of this release.
2 Interest 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.
Page 11 of 11
VIRGINIA NATIONAL BANKSHARES CORPORATION
RECONCILIATION OF CERTAIN QUARTERLY NON-GAAP FINANCIAL MEASURES
(dollars in thousands)
(Unaudited)
|
| Three Months Ended |
| |||||||||||||||||
|
| December 31, |
|
| September 30, 2022 |
|
| June 30, 2022 |
|
| March 31, 2022 |
|
| December 31, 2021 |
| |||||
Fully tax-equivalent measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income |
| $ | 15,384 |
|
| $ | 14,277 |
|
| $ | 12,461 |
|
| $ | 11,425 |
|
| $ | 12,359 |
|
Fully tax-equivalent adjustment |
|
| 86 |
|
|
| 83 |
|
|
| 82 |
|
|
| 65 |
|
|
| 78 |
|
Net interest income (FTE) 1 |
| $ | 15,470 |
|
| $ | 14,360 |
|
| $ | 12,543 |
|
| $ | 11,490 |
|
| $ | 12,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Efficiency ratio 2 |
|
| 52.0 | % |
|
| 57.3 | % |
|
| 58.6 | % |
|
| 62.3 | % |
|
| 58.0 | % |
Fully tax-equivalent adjustment |
|
| -0.3 | % |
|
| -0.3 | % |
|
| -0.3 | % |
|
| -0.3 | % |
|
| -0.3 | % |
Efficiency ratio (FTE) 3 |
|
| 51.7 | % |
|
| 57.0 | % |
|
| 58.3 | % |
|
| 62.0 | % |
|
| 57.7 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest margin |
|
| 3.89 | % |
|
| 3.45 | % |
|
| 3.00 | % |
|
| 2.57 | % |
|
| 2.70 | % |
Fully tax-equivalent adjustment |
|
| 0.02 | % |
|
| 0.02 | % |
|
| 0.02 | % |
|
| 0.02 | % |
|
| 0.02 | % |
Net interest margin (FTE) 1 |
|
| 3.91 | % |
|
| 3.47 | % |
|
| 3.02 | % |
|
| 2.59 | % |
|
| 2.72 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| As of |
| |||||||||||||||||
|
| December 31, |
|
| September 30, 2022 |
|
| June 30, 2022 |
|
| March 31, 2022 |
|
| December 31, 2021 |
| |||||
Other financial measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
ALLL to gross loans |
|
| 0.59 | % |
|
| 0.58 | % |
|
| 0.57 | % |
|
| 0.58 | % |
|
| 0.56 | % |
Impact of acquired loans and fair value mark |
|
| 0.31 | % |
|
| 0.32 | % |
|
| 0.34 | % |
|
| 0.37 | % |
|
| 0.39 | % |
ALLL to gross loans, excluding acquired loans and fair value mark (non-GAAP) |
|
| 0.90 | % |
|
| 0.90 | % |
|
| 0.91 | % |
|
| 0.95 | % |
|
| 0.95 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
ALLL to gross loans |
|
| 0.59 | % |
|
| 0.58 | % |
|
| 0.57 | % |
|
| 0.58 | % |
|
| 0.56 | % |
Fair value mark to gross loans |
|
| 1.70 | % |
|
| 1.80 | % |
|
| 1.82 | % |
|
| 1.77 | % |
|
| 1.74 | % |
ALLL + fair value mark to gross loans (non-GAAP) |
|
| 2.29 | % |
|
| 2.38 | % |
|
| 2.39 | % |
|
| 2.35 | % |
|
| 2.30 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Book value per share |
| $ | 25.05 |
|
| $ | 23.65 |
|
| $ | 25.20 |
|
| $ | 27.42 |
|
| $ | 30.50 |
|
Impact of intangible assets |
|
| (2.69 | ) |
|
| (2.88 | ) |
|
| (2.96 | ) |
|
| (3.05 | ) |
| $ | (3.14 | ) |
Tangible book value per share (non-GAAP) |
| $ | 22.36 |
|
| $ | 20.77 |
|
| $ | 22.24 |
|
| $ | 24.37 |
|
| $ | 27.36 |
|
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.
Page 12 of 11
VIRGINIA NATIONAL BANKSHARES CORPORATION
RECONCILIATION OF CERTAIN ANNUAL NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per share data)
(Unaudited)
|
| For the Twelve Months Ended |
| |||||
|
| December 31, 2022 |
|
| December 31, 2021 |
| ||
Fully tax-equivalent measures |
|
|
|
|
|
| ||
Net interest income |
| $ | 53,547 |
|
| $ | 44,988 |
|
Fully tax-equivalent adjustment |
|
| 333 |
|
|
| 271 |
|
Net interest income (FTE) 1 |
| $ | 53,880 |
|
| $ | 45,259 |
|
|
|
|
|
|
|
| ||
Efficiency ratio 2 |
|
| 57.4 | % |
|
| 76.7 | % |
Fully tax-equivalent adjustment |
|
| -0.3 | % |
|
| -0.4 | % |
Efficiency ratio (FTE) 3 |
|
| 57.1 | % |
|
| 76.3 | % |
|
|
|
|
|
|
| ||
Net interest margin |
|
| 3.19 | % |
|
| 2.92 | % |
Fully tax-equivalent adjustment |
|
| 0.02 | % |
|
| 0.02 | % |
Net interest margin (FTE) 1 |
|
| 3.21 | % |
|
| 2.94 | % |
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.
Page 13 of 11