VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2025 FULL YEAR RESULTS AND QUARTERLY DIVIDEND

VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES 2025 FULL YEAR RESULTS AND QUARTERLY DIVIDEND , /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported quarterly net income of $6.0 million, or $1.10 per diluted share, for the quarter ended December 31, 2025, compared to the $4.6 million, or $0.85 per diluted share, recognized for the quarter ended December 31, 2024. For the twelve months ended December 31, 2025, the Company recognized net income of $19.3 million, or $3.55 per diluted share, compared to $17.0 million, or $3.15 per diluted share, for the twelve months ended December 31, 2024. The increase in 2025 year-to-date net income as compared to the prior year was primarily the result of decreased interest expense, as a result of the reduction in cost of funds associated with deposits and borrowings. Cost of funds declined 28 bps year-over-year while yields on earning assets held steady despite several reductions in the prime rate.  Dividend Declaration On January 27, 2026, the Company's Board of Directors declared a quarterly cash dividend of $0.36 per share of common stock payable on February 27, 2026, to the holders of record at the close of business on February 13, 2026. The quarterly cash dividend represents an annual yield to shareholders of approximately 3.57% based on the closing price of the Company's common stock on January 27, 2026. President and Chief Executive Officer's comments: "Our strong fourth quarter performance demonstrates our continued attention to strategic operating efficiency and sustainable growth, with increased net income of $1.4 million over the prior quarter," stated Glenn W. Rust, President and Chief Executive Officer. "Loan growth was modest for the quarter and the year, but our strong asset quality continues to enhance financial results, and our capital and liquidity positions remain strong." Key Performance IndicatorsFourth quarter 2025 compared to third quarter 2025 Return on average assets improved to 1.45%. from 1.12%. Return on average equity improved to 13.04% from 10.48%. Net interest margin (FTE)1 improved to 3.50% from 3.43%. Loan-to-deposit ratio decreased to 86% from 89%. Efficiency ratio (FTE)1 improved to 49.5% from 57.9%. December 31, 2025 Balance Sheet Highlights Gross loans outstanding as of December 31, 2025 totaled $1.2 billion, an increase of $1.6 million, or 0.1% compared to December 31, 2024. The Company experienced modest loan growth in the fourth quarter of 2025, with gross loan balances increasing $2.6 million from September 30, 2025. Deposit balances at December 31, 2025 increased $46.8 million or 3.4% from September 30, 2025, and increased $8.2 million since December 31, 2024. This fourth quarter increase is the combined result of the Company's choice to maintain interest rates despite prime decreases and normal corporate deposit behavior at the end of the calendar cycle. Securities balances declined $5.4 million from September 30, 2025 to December 31, 2025 as the Company allowed the proceeds from natural maturities and cash flow to fund earning assets with more attractive yields. The Company utilizes a third-party to offer multi-million-dollar FDIC insurance to customers with balances in excess of single-bank limits through reciprocal Insured Cash Sweep® (ICS) plans. Deposit balances held in ICS plans amounted to $200.4 million as of December 31, 2025, $166.6 million as of December 31, 2024 and $145.2 million as of September 30, 2025. Outstanding borrowings from the FHLB as of December 31, 2025 were $20.0 million, a decrease of $10.0 million from September 30, 2025. The balance at December 31, 2024 was $20.0 million. As of December 31, 2025, the Company had unused borrowing facilities in place of approximately $233.0 million and held no brokered deposits. Loans and Asset Quality Credit performance remains strong with nonperforming assets as a percentage of total assets of 0.56% as of December 31, 2025, 0.42% as of September 30, 2025 and 0.19% as of December 31, 2024. Nonperforming assets amounted to $9.2 million as of December 31, 2025, compared to $6.8 million as of September 30, 2025 and $3.0 million as of December 31, 2024; Fourteen loans to thirteen borrowers are in non-accrual status, totaling $2.2 million, as of December 31, 2025, compared to $2.6 million as of September 30, 2025 and $2.3 million as of December 31, 2024. Loans 90 days or more past due and still accruing interest amounted to $7.0 million as of December 31, 2025, compared to $4.2 million at September 30, 2025 and $754 thousand as of December 31, 2024. The past due balance as of December 31, 2025 is comprised of seven loans totaling $6.6 million which are 100% government-guaranteed, one loan secured by residential real estate totaling $391 thousand and three student loans totaling $86 thousand. The Company currently holds no other real estate owned. The period-end Allowance for Credit Losses on Loans ("ACL") as a percentage of total loans was 0.67% as of December 31, 2025, 0.69% as of September 30, 2025 and 0.68% as of December 31, 2024. The individual differences in the balances of various pools as well as changing loss rates have resulted in only nominal changes to the overall ACL ratio. The proportionate increase in government-guaranteed loans over the respective periods is also a main driver holding the ACL as a percentage of total loans fairly steady year-over-year. Balances in such loans are 100% government-guaranteed and do not require an ACL. The fair value mark that was allocated to the acquired loans was $21.3 million as of April 1, 2021, with a remaining balance of $4.8 million as of December 31, 2025. For the three months ended December 31, 2025, the Company recorded a net recovery to the provision for credit losses of $36 thousand, due primarily to updated analysis performed on the Company's loans secured by marketable securities and cash, netted against additional provision for loan growth and unfunded commitments. The reserve for unfunded commitments increased by $140 thousand. Net Interest Income - Quarterly Comparison Net interest income for the three months ended December 31, 2025 of $13.3 million increased $1.1 million, or 9.1%, compared to the three months ended December 31, 2024, predominantly due to decreased interest expense associated with deposit accounts, coupled with increased interest income earned on loans and federal funds sold driving an additional net increase. Net interest margin (FTE), (a non-GAAP financial measure)1, for the three months ended December 31, 2025 was 3.50%, compared to 3.21% for the three months ended December 31, 2024. The increase as compared to the fourth quarter of 2024 was primarily due to the decrease in cost of funds, as described below. The Bank's yield on loans was 5.74% for the three months ended December 31, 2025, compared to 5.63% for the prior year same period. The accretion of the fair value mark related to purchased loans positively impacted interest income by 13 bps in the fourth quarter of 2025, and 13 bps in the fourth quarter of 2024. The overall cost of funds, including noninterest-bearing deposits, of 173 bps incurred in the three months ended December 31, 2025 decreased 21 bps from 194 bps in the same period in the prior year. Overall, the cost of interest-bearing deposits decreased period over period by 24 bps, from a cost of 2.51% to 2.27%. The cost of borrowings from the FHLB decreased 35 bps from the fourth quarter of 2024 to the fourth quarter of 2025, from 4.33% to 3.98%. _____________________________________________________________________ 1 See "Reconciliation of Certain Quarterly Non-GAAP Financial Measures" at the end of this release. Noninterest Income - Quarterly Comparison Noninterest income for the three months ended December 31, 2025 decreased $595 thousand, or 26.2%, compared to the three months ended December 31, 2024, primarily as a combined result of lower fee income from debit card usage in 2025 and early extinguishment of debt in 2024.  Noninterest Expense - Quarterly Comparison Noninterest expense for the three months ended December 31, 2025 decreased by $1.3 million, or 14.9%, compared to the three months ended December 31, 2024. The 2025 quarter reflected service refunds and credits within data processing expense received as a result of negotiations with the Company's core processing provider.  Efficiency Ratio - Quarterly Comparison The Company's efficiency ratio (FTE)1 improved to 49.5% for the three months ended December 31, 2025 compared to 60.2% for the three months ended December 31, 2024, as the impact of increased net interest income (FTE)1 and decreased noninterest expense more than offset the decrease in noninterest income. On a year-to-date basis, the efficiency ratio (FTE)1 improved to 57.6% in 2025 compared to 62.0% in 2024, also because of increased net interest income (FTE)1. Income Taxes - Quarterly Comparison The effective tax rates amounted to 21.4% and 22.0% for the three months ended December 31, 2025 and 2024, respectively. For each period, the effective income tax rate differed from the U.S. statutory rate of 21% due to the adoption of the proportional amortization method for accounting for low-income housing tax credits, which increased tax expense, net of the recognition of low-income housing tax credits and the effect of tax-exempt income from municipal bonds and income from bank owned life insurance policies.  Book Value Book value per share increased to $34.15 as of December 31, 2025, compared to $29.85 as of December 31, 2024, and tangible book value per share (a non-GAAP financial measure)1 was $32.21 as of December 31, 2025 compared to $27.70 as of December 31, 2024. These values increased as net retained income increased, the impact of intangible assets declined due to the ongoing amortization of the Company's core deposit intangible asset, and the reduction in accumulated other comprehensive income. Dividends Cash dividends of $1.9 million, or $0.36 per share, were declared and paid during the fourth quarter of 2025. The remaining 67% of net income was retained. _____________________________________________________________________ 1 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. 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: 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, 2024 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) December 31, 2025 December 31, 2024* (Unaudited) ASSETS Cash and due from banks $ 5,798 $ 5,311 Interest-bearing deposits in other banks 10,552 11,792 Federal funds sold 54,264 - Securities: Available for sale (AFS), at fair value 247,992 263,537 Restricted securities, at cost 6,172 6,193 Total securities 254,164 269,730 Loans, net of deferred fees and costs 1,237,577 1,235,969 Allowance for credit losses (8,270) (8,455) Loans, net 1,229,307 1,227,514 Premises and equipment, net 11,687 15,383 Bank owned life insurance 41,302 40,059 Goodwill 7,768 7,768 Core deposit intangible, net 2,682 3,792 Right of use asset, net 6,297 5,551 Deferred tax asset, net 12,079 15,407 Accrued interest receivable and other assets 13,842 14,519 Total assets $ 1,649,742 $ 1,616,826 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Demand deposits: Noninterest-bearing $ 362,322 $ 374,079 Interest-bearing 308,295 303,405 Money market and savings deposit accounts 469,815 437,619 Certificates of deposit and other time deposits 291,299 308,443 Total deposits 1,431,731 1,423,546 Federal funds purchased - 236 Borrowings 20,000 20,000 Junior subordinated debt, net 3,554 3,506 Lease liability 6,192 5,389 Accrued interest payable and other liabilities 4,104 3,847 Total liabilities 1,465,581 1,456,524 Commitments and contingent liabilities Shareholders' equity: Preferred stock, $2.50 par value - - Common stock, $2.50 par value 13,327 13,263 Capital surplus 107,337 106,394 Retained earnings 94,165 82,507 Accumulated other comprehensive loss (30,668) (41,862) Total shareholders' equity 184,161 160,302 Total liabilities and shareholders' equity $ 1,649,742 $ 1,616,826 Common shares outstanding 5,393,140 5,370,912 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 VIRGINIA NATIONAL BANKSHARES CORPORATION CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) (Unaudited) For the three months ended For the twelve months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Interest and dividend income: Loans, including fees $ 17,706 $ 17,253 $ 69,571 $ 66,534 Federal funds sold 304 230 835 765 Other interest-bearing deposits 33 41 174 206 Investment securities: Taxable 1,154 1,340 4,929 6,689 Tax exempt 320 323 1,287 1,302 Dividends 114 111 450 431 Total interest and dividend income 19,631 19,298 77,246 75,927 Interest expense: Demand deposits 67 67 270 272 Money market and savings deposits 3,057 2,939 12,014 11,803 Certificates and other time deposits 2,827 3,463 11,264 15,410 Borrowings 255 504 1,860 1,691 Federal funds purchased - 4 28 29 Junior subordinated debt 77 86 301 346 Total interest expense 6,283 7,063 25,737 29,551 Net interest income 13,348 12,235 51,509 46,376 Provision for (recovery of) credit losses (36) (126) 137 (600) Net interest income after provision for (recovery of) credit losses 13,384 12,361 51,372 46,976 Noninterest income: Wealth management fees 236 247 894 1,152 Deposit account fees 338 321 1,261 1,363 Debit/credit card and ATM fees 319 429 1,383 1,914 Bank owned life insurance income 324 297 1,242 1,155 Gains on sales of assets, net - - 278 36 Gain on early redemption of debt - 525 - 904 Losses on sales of AFS, net - - - (4) Other 456 449 1,036 1,069 Total noninterest income 1,673 2,268 6,094 7,589 Noninterest expense: Salaries and employee benefits 3,983 4,162 15,692 15,933 Net occupancy 739 906 3,516 3,662 Equipment 186 206 755 720 Bank franchise tax 439 401 1,706 1,452 Computer software 271 214 1,096 917 Data processing (63) 622 1,981 2,647 FDIC deposit insurance assessment 240 200 785 700 Marketing, advertising and promotion 157 159 761 730 Professional fees 303 303 1,146 934 Core deposit intangible amortization 259 307 1,110 1,301 Other 962 1,302 4,836 4,670 Total noninterest expense 7,476 8,782 33,384 33,666 Income before income taxes 7,581 5,847 24,082 20,899 Provision for income taxes 1,623 1,286 4,821 3,933 Net income $ 5,958 $ 4,561 $ 19,261 $ 16,966 Net income per common share, basic $ 1.10 $ 0.85 $ 3.57 $ 3.16 Net income per common share, diluted $ 1.10 $ 0.85 $ 3.55 $ 3.15 Weighted average common shares outstanding, basic 5,392,763 5,370,912 5,388,926 5,371,439 Weighted average common shares outstanding, diluted 5,424,154 5,407,489 5,418,399 5,392,114 VIRGINIA NATIONAL BANKSHARES CORPORATION FINANCIAL HIGHLIGHTS (dollars in thousands, except per share data) (Unaudited) At or For the Three Months Ended December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Common Share Data: Net income $ 5,958 $ 4,576 $ 4,238 $ 4,489 $ 4,561 Net income per weighted average share, basic $ 1.10 $ 0.85 $ 0.79 $ 0.83 $ 0.85 Net income per weighted average share, diluted $ 1.10 $ 0.84 $ 0.78 $ 0.83 $ 0.85 Weighted average shares outstanding, basic 5,392,763 5,391,979 5,391,979 5,378,871 5,370,912 Weighted average shares outstanding, diluted 5,424,154 5,424,642 5,417,900 5,402,936 5,407,489 Actual shares outstanding 5,393,140 5,391,979 5,391,979 5,391,979 5,370,912 Tangible book value per share at period end 5 $ 32.21 $ 30.90 $ 29.63 $ 28.84 $ 27.70 Key Ratios: Return on average assets 1 1.45 % 1.12 % 1.05 % 1.12 % 1.12 % Return on average equity 1 13.04 % 10.48 % 10.05 % 11.05 % 10.98 % Net interest margin (FTE) 1,2 3.50 % 3.43 % 3.40 % 3.28 % 3.21 % Efficiency ratio (FTE) 3 49.5 % 57.9 % 61.2 % 62.4 % 60.2 % Loan-to-deposit ratio 86.4 % 89.2 % 89.4 % 86.6 % 86.8 % Net Interest Income: Net interest income $ 13,348 $ 13,072 $ 12,796 $ 12,295 $ 12,235 Net interest income (FTE) 2 $ 13,433 $ 13,158 $ 12,881 $ 12,381 $ 12,321 Company Capital Ratios: Tier 1 leverage ratio 6 12.52 % 12.26 % 12.12 % 11.83 % 11.34 % Total risk-based capital ratio 6 20.42 % 20.15 % 19.46 % 18.92 % 18.77 % Assets and Asset Quality: Average earning assets $ 1,521,387 $ 1,523,230 $ 1,521,345 $ 1,529,575 $ 1,526,464 Average gross loans $ 1,223,703 $ 1,230,805 $ 1,240,563 $ 1,233,520 $ 1,218,460 Fair value mark on acquired loans $ 4,754 $ 5,241 $ 5,724 $ 6,242 $ 6,785 Allowance for credit losses on loans: Beginning of period $ 8,510 $ 8,347 $ 8,328 $ 8,455 $ 8,523 Provision for (recovery of) credit losses (176) 253 90 (105) (208) Charge-offs (126) (146) (111) (70) (127) Recoveries 62 56 40 48 267 Net (charge-offs) recoveries (64) (90) (71) (22) 140 End of period $ 8,270 $ 8,510 $ 8,347 $ 8,328 $ 8,455 Non-accrual loans $ 2,198 $ 2,568 $ 2,614 $ 2,764 $ 2,267 Loans 90 days or more past due and still accruing 7,042 4,201 5,178 2,274 754 Total nonperforming assets (NPA)4 $ 9,240 $ 6,769 $ 7,792 $ 5,038 $ 3,021 NPA as a % of total assets 0.56 % 0.42 % 0.48 % 0.31 % 0.19 % NPA as a % of gross loans 0.75 % 0.55 % 0.63 % 0.41 % 0.24 % ACL to gross loans 0.67 % 0.69 % 0.67 % 0.67 % 0.68 % Non-accruing loans to gross loans 0.18 % 0.21 % 0.21 % 0.22 % 0.18 % Net charge-offs (recoveries) to average loans 1 0.02 % 0.03 % 0.02 % 0.01 % -0.05 % 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%. This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures 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 Non-GAAP Financial (FTE) Measures at the end of this release. 4 The Bank held no other real estate owned during any of the periods presented. 5 This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release. 6 All ratios at December 31, 2025 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 December 31, 2025 December 31, 2024 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 $ 192,797 $ 1,268 2.63 % $ 213,609 $ 1,451 2.72 % Tax Exempt Securities1 65,096 405 2.49 % 66,211 409 2.47 % Total Securities1 257,893 1,673 2.59 % 279,820 1,860 2.66 % Loans: Real Estate 933,710 14,166 6.02 % 921,967 13,159 5.68 % Commercial 263,382 3,100 4.67 % 261,544 3,507 5.33 % Consumer 26,611 440 6.56 % 34,949 587 6.68 % Total Loans 1,223,703 17,706 5.74 % 1,218,460 17,253 5.63 % Federal funds sold 31,551 304 3.82 % 19,313 230 4.74 % Other interest-bearing deposits 8,240 33 1.59 % 8,871 41 1.84 % Total Earning Assets 1,521,387 19,716 5.14 % 1,526,464 19,384 5.05 % Less: Allowance for Credit Losses (8,868) (8,555) Total Non-Earning Assets 119,007 109,030 Total Assets $ 1,631,526 $ 1,626,939 LIABILITIES AND SHAREHOLDERS' EQUITY Interest Bearing Liabilities: Interest Bearing Deposits: Interest Checking $ 265,346 $ 67 0.10 % $ 263,281 $ 67 0.10 % Money Market and Savings Deposits 473,389 3,057 2.56 % 442,660 2,939 2.64 % Time Deposits 301,856 2,827 3.72 % 318,203 3,463 4.33 % Total Interest-Bearing Deposits 1,040,591 5,951 2.27 % 1,024,144 6,469 2.51 % Borrowings 25,435 255 3.98 % 46,253 504 4.33 % Federal funds purchased 4 0 4.07 % 284 4 5.60 % Junior subordinated debt 3,547 77 8.61 % 3,499 86 9.78 % Total Interest-Bearing Liabilities 1,069,577 6,283 2.33 % 1,074,180 7,063 2.62 % Non-Interest-Bearing Liabilities: Demand deposits 369,880 377,596 Other liabilities 10,860 9,965 Total Liabilities 1,450,317 1,461,741 Shareholders' Equity 181,209 165,198 Total Liabilities & Shareholders' Equity $ 1,631,526 $ 1,626,939 Net Interest Income (FTE)3 $ 13,433 $ 12,321 Interest Rate Spread2 2.81 % 2.43 % Cost of Funds 1.73 % 1.94 % Interest Expense as a Percentage of Average Earning Assets4 1.64 % 1.84 % Net Interest Margin (FTE) 3,4 3.50 % 3.21 % 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. This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures 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 twelve months ended December 31, 2025 December 31, 2024 Interest Interest Average Income/ Average Average Income/ Average Balance Expense Yield/Cost Balance Expense Yield/Cost ASSETS Interest Earning Assets: Securities: Taxable Securities and Dividends $ 198,401 $ 5,377 2.71 % $ 249,858 $ 7,120 2.85 % Tax Exempt Securities1 65,364 1,631 2.50 % 66,399 1,649 2.48 % Total Securities1 263,765 7,008 2.66 % 316,257 8,769 2.77 % Loans: Real Estate 943,389 55,119 5.84 % 908,356 51,532 5.67 % Commercial 258,713 12,418 4.80 % 220,276 12,430 5.64 % Consumer 30,015 2,034 6.78 % 37,013 2,572 6.95 % Total Loans 1,232,117 69,571 5.65 % 1,165,645 66,534 5.71 % Federal funds sold 19,957 835 4.18 % 14,663 765 5.22 % Other interest-bearing deposits 8,099 174 2.15 % 8,220 206 2.51 % Total Earning Assets 1,523,938 77,588 5.09 % 1,504,785 76,274 5.07 % Less: Allowance for Credit Losses (8,516) (8,350) Total Non-Earning Assets 109,084 109,503 Total Assets $ 1,624,506 $ 1,605,938 LIABILITIES AND SHAREHOLDERS' EQUITY Interest Bearing Liabilities: Interest Bearing Deposits: Interest Checking $ 267,222 $ 270 0.10 % $ 269,136 $ 272 0.10 % Money Market and Savings Deposits 467,612 12,014 2.57 % 425,386 11,803 2.77 % Time Deposits 296,218 11,264 3.80 % 333,139 15,410 4.63 % Total Interest-Bearing Deposits 1,031,052 23,548 2.28 % 1,027,661 27,485 2.67 % Borrowings 40,005 1,860 4.65 % 36,111 1,691 4.68 % Federal funds purchased 569 28 4.92 % 489 29 5.93 % Junior subordinated debt 3,529 301 8.53 % 3,482 346 9.94 % Total Interest-Bearing Liabilities 1,075,155 25,737 2.39 % 1,067,743 29,551 2.77 % Non-Interest-Bearing Liabilities: Demand deposits 367,066 370,178 Other liabilities 10,134 10,597 Total Liabilities 1,452,355 1,448,518 Shareholders' Equity 172,151 157,420 Total Liabilities & Shareholders' Equity $ 1,624,506 $ 1,605,938 Net Interest Income (FTE)3 $ 51,851 $ 46,723 Interest Rate Spread2 2.70 % 2.30 % Cost of Funds 1.78 % 2.06 % Interest Expense as a Percentage of Average Earning Assets 1.69 % 1.96 % Net Interest Margin (FTE) 3 3.40 % 3.10 % 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. This is a non-GAAP financial measure. Refer to the Reconciliation of Certain Non-GAAP Financial (FTE) Measures at the end of this release. 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 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Fully tax-equivalent measures Net interest income $ 13,348 $ 13,072 $ 12,796 $ 12,295 $ 12,235 Fully tax-equivalent adjustment 85 86 85 86 86 Net interest income (FTE)1 $ 13,433 $ 13,158 $ 12,881 $ 12,381 $ 12,321 Efficiency ratio2 49.8 % 58.3 % 61.5 % 62.8 % 60.6 % Fully tax-equivalent adjustment -0.3 % -0.4 % -0.3 % -0.4 % -0.4 % Efficiency ratio (FTE) 3 49.5 % 57.9 % 61.2 % 62.4 % 60.2 % Net interest margin 3.48 % 3.40 % 3.37 % 3.26 % 3.19 % Fully tax-equivalent adjustment 0.02 % 0.03 % 0.03 % 0.02 % 0.02 % Net interest margin (FTE)1 3.50 % 3.43 % 3.40 % 3.28 % 3.21 % As of December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Other financial measures Book value per share $ 34.15 $ 32.89 $ 31.67 $ 30.93 $ 29.85 Impact of intangible assets4 (1.94) (1.99) (2.04) (2.09) (2.15) Tangible book value per share (non- GAAP) $ 32.21 $ 30.90 $ 29.63 $ 28.84 $ 27.70 For the Years Ended December 31, 2025 December 31, 2024 Fully tax-equivalent measures Net interest income $ 51,509 $ 46,376 Fully tax-equivalent adjustment 342 347 Net interest income (FTE)1 $ 51,851 $ 46,723 Efficiency ratio2 58.0 % 62.4 % Fully tax-equivalent adjustment -0.4 % -0.4 % Efficiency ratio (FTE) 3 57.6 % 62.0 % Net interest margin 3.38 % 3.08 % Fully tax-equivalent adjustment 0.02 % 0.02 % Net interest margin (FTE)1 3.40 % 3.10 % 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. 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