Virginia National Bankshares Corp 8-K, filed Jul 17, 2023

Virginia National Bankshares Corp (VABK)

8-K 2023-07-17 For: 2023-07-17

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Added on April 09, 2026

About this 8-K

Virginia National Bankshares Corp filed this 8-K on July 17, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Virginia	001-40305	46-2331578
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

404 People Place
Charlottesville, Virginia		22911
(Address of Principal Executive Offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	VABK	The Nasdaq Stock Market LLC


99.1	Press statement issued by Virginia National Bankshares Corporation on July 17, 2023.

104	Cover Page Interactive Data File (embedded within the Inline XBRL document).


			VIRGINIA NATIONAL BANKSHARES CORPORATION

Date:	July 17, 2023	By:	/s/ Tara Y. Harrison
			Tara Y. Harrison Executive Vice President and Chief Financial Officer


	June 30, 2023			December 31, 2022*			June 30, 2022
	(Unaudited)						(Unaudited)
ASSETS
Cash and due from banks	$	9,714		$	20,993		$	17,631
Interest-bearing deposits in other banks		20,225			19,098			145,217
Federal funds sold		-			45			52,819
Securities:
Available for sale, at fair value		473,868			538,186			461,830
Restricted securities, at cost		7,438			5,137			5,138
Total securities		481,306			543,323			466,968
Loans, net of deferred fees and costs		973,348			936,415			960,192
Allowance for credit losses		(7,863	)		(5,552	)		(5,503	)
Loans, net		965,485			930,863			954,689
Premises and equipment, net		17,564			17,808			19,193
Assets held for sale		-			965			-
Bank owned life insurance		39,065			38,552			38,046
Goodwill		7,768			7,768			8,140
Core deposit intangible, net		5,815			6,586			7,405
Right of use asset, net		6,634			6,536			7,343
Deferred tax asset, net		16,961			17,315			14,279
Accrued interest receivable and other assets		13,551			13,507			13,210
Total assets	$	1,584,088		$	1,623,359		$	1,744,940
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand deposits:
Noninterest-bearing	$	412,273		$	495,649		$	512,889
Interest-bearing		312,773			399,983			399,930
Money market and savings deposit accounts		398,074			467,600			535,958
Certificates of deposit and other time deposits		224,956			115,106			150,121
Total deposits		1,348,076			1,478,338			1,598,898
Federal funds purchased		20,503			-			-
Borrowings		59,666			-			-
Junior subordinated debt, net		3,436			3,413			3,390
Lease liability		6,301			6,173			6,925
Accrued interest payable and other liabilities		3,667			2,019			1,511
Total liabilities		1,441,649			1,489,943			1,610,724
Commitments and contingent liabilities
Shareholders' equity:
Preferred stock, $2.50 par value		-			-			-
Common stock, $2.50 par value		13,239			13,214			13,201
Capital surplus		107,568			105,344			104,858
Retained earnings		67,612			63,482			53,852
Accumulated other comprehensive loss		(45,980	)		(48,624	)		(37,695	)
Total shareholders' equity		142,439			133,416			134,216
Total liabilities and shareholders' equity	$	1,584,088		$	1,623,359		$	1,744,940
Common shares outstanding		5,365,982			5,337,271			5,326,271
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


FOR IMMEDIATE RELEASE	INVESTOR RELATIONS CONTACT:
	Tara Y. Harrison (434) 817-8587


	For the three months ended					For the six months ended
	June 30, 2023		June 30, 2022			June 30, 2023		June 30, 2022
Interest and dividend income:
Loans, including fees	$	14,894	$	10,610		$	27,661	$	21,379
Federal funds sold		10		302			10		363
Other interest-bearing deposits		119		219			377		355
Investment securities:
Taxable		2,876		1,662			5,827		2,674
Tax exempt		329		308			656		612
Dividends		104		64			171		126
Total interest and dividend income		18,332		13,165			34,702		25,509

Interest expense:
Demand deposits		106		58			195		119
Money market and savings deposits		2,197		440			3,970		1,055
Certificates and other time deposits		1,776		157			2,424		352
Borrowings		439		-			766		-
Federal funds purchased		32		-			91		-
Junior subordinated debt		79		49			140		97
Total interest expense		4,629		704			7,586		1,623
Net interest income		13,703		12,461			27,116		23,886
Provision for (recovery of) credit losses		261		(217	)		13		(69	)
Net interest income after provision for (recovery of) credit losses		13,442		12,678			27,103		23,955

Noninterest income:
Wealth management fees		397		572			801		1,129
Advisory and brokerage income		-		210			-		426
Deposit account fees		399		458			800		923
Debit/credit card and ATM fees		636		779			1,207		1,486
Bank owned life insurance income		261		246			513		457
Resolution of commercial dispute		-		-			-		2,400
Gains on sales of assets		-		1,113			-		1,113
Gains on sales of securities, net		-		-			254		-
Other		352		268			746		499
Total noninterest income		2,045		3,646			4,321		8,433

Noninterest expense:
Salaries and employee benefits		4,062		4,086			8,113		8,817
Net occupancy		929		1,282			2,108		2,479
Equipment		176		254			394		537
Bank franchise tax		313		304			637		608
Computer software		203		357			405		620
Data processing		806		699			1,548		1,437
FDIC deposit insurance assessment		220		125			320		351
Marketing, advertising and promotion		275		259			650		526
Plastics expense		30		92			78		231
Professional fees		198		404			390		741
Core deposit intangible amortization		379		427			770		866
Other		973		1,153			2,012		2,324
Total noninterest expense		8,564		9,442			17,425		19,537

Income before income taxes		6,923		6,882			13,999		12,851
Provision for income taxes		1,272		1,197			2,557		2,242
Net income	$	5,651	$	5,685		$	11,442	$	10,609
Net income per common share, basic	$	1.05	$	1.07		$	2.14	$	1.99
Net income per common share, diluted	$	1.05	$	1.06		$	2.13	$	1.98
Weighted average common shares outstanding, basic		5,357,873		5,326,271			5,348,040		5,319,166
Weighted average common shares outstanding, diluted		5,375,073		5,347,008			5,375,545		5,345,242


	At or For the Three Months Ended
	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
Common Share Data:
Net income per weighted average share, basic	$	1.05		$	1.08		$	1.32		$	1.08		$	1.07
Net income per weighted average share, diluted	$	1.05		$	1.08		$	1.32		$	1.08		$	1.06
Weighted average shares outstanding, basic		5,357,873			5,338,099			5,333,902			5,326,543			5,326,271
Weighted average shares outstanding, diluted		5,375,073			5,375,619			5,362,220			5,348,900			5,347,008
Actual shares outstanding		5,365,982			5,338,650			5,327,271			5,327,271			5,326,271
Tangible book value per share at period end	$	24.01		$	23.88		$	22.31		$	20.81		$	22.28

Key Ratios:
Return on average assets 1		1.46	%		1.48	%		1.65	%		1.30	%		1.27	%
Return on average equity 1		15.98	%		17.57	%		22.23	%		16.50	%		16.16	%
Net interest margin (FTE) 2		3.83	%		3.71	%		3.91	%		3.47	%		3.02	%
Efficiency ratio (FTE) 3		54.1	%		56.2	%		51.7	%		57.0	%		58.3	%
Loan-to-deposit ratio		72.2	%		67.3	%		63.3	%		59.0	%		60.1	%

Capital Ratios:
Tier 1 leverage ratio		11.20	%		10.64	%		9.77	%		9.17	%		8.79	%
Total risk-based capital ratio		18.80	%		18.37	%		17.64	%		16.97	%		16.51	%

Assets and Asset Quality:
Average earning assets	$	1,443,048		$	1,475,617		$	1,568,765		$	1,644,124		$	1,668,471
Average gross loans	$	940,264		$	932,834		$	938,740		$	959,086		$	984,883
Paycheck Protection Program loans, end of period	$	196		$	215		$	234		$	254		$	1,925
Fair value mark on acquired loans	$	10,957		$	14,120		$	15,887		$	17,046		$	17,502

Allowance for credit losses:
Beginning of period	$	7,772		$	5,552		$	5,485		$	5,503		$	5,834
Impact of adoption of CECL		-		$	2,491		$	-		$	-		$	-
Provision for (recovery of) credit losses		216			(235	)		136			39			(217	)
Charge-offs		(180	)		(136	)		(472	)		(119	)		(191	)
Recoveries		55			100			403			62			77
Net charge-offs		(125	)		(36	)		(69	)		(57	)		(114	)
End of period	$	7,863		$	7,772		$	5,552		$	5,485		$	5,503

Non-accrual loans	$	1,185		$	1,228		$	673		$	607		$	511
Loans 90 days or more past due and still accruing		107			69			705			859			626
OREO		-			-			-			-			-
Total nonperforming assets (NPA)	$	1,292		$	1,297		$	1,378		$	1,466		$	1,137

NPA as a % of total assets		0.08	%		0.08	%		0.08	%		0.08	%		0.07	%
NPA as a % of gross loans plus OREO		0.13	%		0.14	%		0.15	%		0.16	%		0.12	%
ACL to gross loans		0.81	%		0.83	%		0.59	%		0.58	%		0.57	%
ACL + fair value mark to gross loans (non-GAAP)		1.94	%		2.33	%		2.29	%		2.38	%		2.39	%
Non-accruing loans to gross loans		0.12	%		0.13	%		0.07	%		0.06	%		0.05	%
Net charge-offs to average loans 1		0.05	%		0.02	%		0.03	%		0.02	%		0.05	%


	As of
	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
Other financial measures
ACL to gross loans		0.81	%		0.83	%		0.59	%		0.58	%		0.57	%
Fair value mark to gross loans		1.13	%		1.50	%		1.70	%		1.80	%		1.82	%
ACL + fair value mark to gross loans (non-GAAP)		1.94	%		2.33	%		2.29	%		2.38	%		2.39	%

Book value per share	$	26.54		$	26.50		$	25.00		$	23.65		$	25.20
Impact of intangible assets 4		(2.53	)		(2.62	)		(2.69	)		(2.84	)	$	(2.92	)
Tangible book value per share (non-GAAP)	$	24.01		$	23.88		$	22.31		$	20.81		$	22.28


	For the three months ended
	June 30, 2023								June 30, 2022
				Interest								Interest
	Average			Income/		Average			Average			Income/		Average
	Balance			Expense		Yield/Cost			Balance			Expense		Yield/Cost
ASSETS
Interest Earning Assets:
Securities:
Taxable Securities	$	421,156		$	2,980		2.83	%	$	325,833		$	1,726		2.12	%
Tax Exempt Securities 1		66,956			415		2.48	%		65,352			390		2.39	%
Total Securities 1		488,112			3,395		2.78	%		391,185			2,116		2.16	%
Loans:
Real Estate		823,289			13,167		6.41	%		847,661			8,988		4.25	%
Commercial		74,665			969		5.21	%		86,394			995		4.62	%
Consumer		42,310			758		7.19	%		50,828			627		4.95	%
Total Loans		940,264			14,894		6.35	%		984,883			10,610		4.32	%
Fed Funds Sold		895			10		4.48	%		150,393			302		0.81	%
Other interest-bearing deposits		13,777			119		3.46	%		142,010			219		0.62	%
Total Earning Assets		1,443,048			18,418		5.12	%		1,668,471			13,247		3.18	%
Less: Allowance for Credit Losses		(7,805	)							(5,866	)
Total Non-Earning Assets		113,883								133,526
Total Assets	$	1,549,126							$	1,796,131

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest Bearing Liabilities:
Interest Bearing Deposits:
Interest Checking	$	331,523		$	106		0.13	%	$	411,374		$	58		0.06	%
Money Market and Savings Deposits		415,015			2,197		2.12	%		550,883			440		0.32	%
Time Deposits		194,736			1,776		3.66	%		152,695			157		0.41	%
Total Interest-Bearing Deposits		941,274			4,079		1.74	%		1,114,952			655		0.24	%
Borrowings		34,265			439		5.14	%		—			—		—
Federal funds purchased		2,392			32		5.37	%		—			—		—
Junior subordinated debt		3,430			79		9.24	%		3,383			49		5.81	%
Total Interest-Bearing Liabilities		981,361			4,629		1.89	%		1,118,335			704		0.25	%
Non-Interest-Bearing Liabilities:
Demand deposits		416,039								527,008
Other liabilities		9,853								10,067
Total Liabilities		1,407,253								1,655,410
Shareholders' Equity		141,873								140,721


	For the six months ended
	June 30, 2023								June 30, 2022
				Interest								Interest
	Average			Income/		Average			Average			Income/		Average
	Balance			Expense		Yield/Cost			Balance			Expense		Yield/Cost
ASSETS
Interest Earning Assets:
Securities:
Taxable Securities	$	434,219		$	5,998		2.76	%	$	287,241		$	2,800		1.95	%
Tax Exempt Securities 1		67,019			831		2.48	%		65,249			775		2.38	%
Total Securities 1		501,238			6,829		2.72	%		352,490			3,575		2.03	%
Loans:
Real Estate		820,033			24,032		5.91	%		866,863			18,082		4.21	%
Commercial		73,357			2,098		5.77	%		89,944			2,084		4.67	%
Consumer		43,179			1,531		7.15	%		51,302			1,213		4.77	%
Total Loans		936,569			27,661		5.96	%		1,008,109			21,379		4.28	%
Fed Funds Sold		455			10		4.43	%		151,429			363		0.48	%
Other interest-bearing deposits		20,789			377		3.66	%		235,418			356		0.30	%
Total Earning Assets		1,459,051			34,877		4.82	%		1,747,446			25,673		2.96	%
Less: Allowance for Credit Losses		(7,947	)							(5,946	)
Total Non-Earning Assets		114,372								124,851
Total Assets	$	1,565,476							$	1,866,351

LIABILITIES AND SHAREHOLDERS' EQUITY
Interest Bearing Liabilities:
Interest Bearing Deposits:
Interest Checking	$	346,625		$	195		0.11	%	$	416,393		$	119		0.06	%
Money Market and Savings Deposits		431,849			3,970		1.85	%		603,259			1,055		0.35	%
Time Deposits		161,247			2,424		3.03	%		155,544			352		0.46	%
Total Interest-Bearing Deposits		939,721			6,589		1.41	%		1,175,196			1,526		0.26	%
Borrowings		31,074			766		4.97	%		—			—		—
Federal funds purchased		3,754			91		4.89	%		—			—		—
Junior subordinated debt		3,423			140		8.25	%		3,377			98		5.85	%
Total Interest-Bearing Liabilities		977,972			7,586		1.56	%		1,178,573			1,624		0.28	%
Non-Interest-Bearing Liabilities:
Demand deposits		440,285								527,049
Other liabilities		9,423								10,704
Total Liabilities		1,427,680								1,716,326
Shareholders' Equity		137,796								150,025