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VNB Q1 2025 Earnings Report
Virginia National Bankshares Corporation reported increased net income and diluted EPS for the first quarter of 2025, driven by higher net interest income and loan growth.
Key Takeaways
Virginia National Bankshares Corporation reported a strong first quarter in 2025, with net income increasing to $4.5 million, or $0.83 per diluted share, up from $3.6 million, or $0.68 per diluted share, in the prior year. This growth was primarily due to increased net interest income from higher average loan balances and decreased interest expense.
Net income increased by 23% year-over-year to $4.5 million.
Diluted EPS rose to $0.83 from $0.68 in the prior year's first quarter.
Net interest margin (FTE) improved to 3.28% from 2.93% in the prior year.
The quarterly cash dividend was increased by 9.1% to $0.36 per share.
VNB
VNB
VNB Revenue by Segment
Revenue by Segment
Loans, including fees Revenue
CapyFin.comFederal funds sold Revenue
CapyFin.comOther interest-bearing deposits Revenue
CapyFin.comInvestment securities: Taxable Revenue
CapyFin.comInvestment securities: Tax exempt Revenue
CapyFin.comDividends Revenue
CapyFin.com Forward Guidance
The Company's focus on loan growth and reducing operating expenses in 2024 has positioned the Bank for a strong 2025, with solid credit quality metrics and capital and liquidity positions, and a commitment to providing a fair return to shareholders through increased dividends.
Positive Outlook
- Strong first quarter performance with a 23% increase in net income year-over-year.
- Continued loan growth, with gross loan balances increasing by $6.5 million from year-end 2024.
- Improved net interest income due to higher average loan balances and decreased interest expense.
- Solid credit quality metrics and capital and liquidity positions.
- Increased quarterly cash dividend by 9.1%, reflecting commitment to shareholder returns.
Challenges Ahead
- Noninterest income decreased by $418 thousand, or 19.2%, compared to the prior year, due to non-recurring gains in 2024.
- Securities balances declined by $79.0 million from March 31, 2024, with funds repurposed to loans.
- Nonperforming assets increased to $5.0 million as of March 31, 2025, from $3.0 million as of December 31, 2024.
- Loans 90 days or more past due and still accruing interest increased to $2.3 million as of March 31, 2025, from $754 thousand as of December 31, 2024.
- The effective tax rate for the prior year period was lower than the current year due to the application of prior period tax adjustments.