Virginia National Bankshares Corporation reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, total interest and dividend income increased to $19.4 million, up from $17.2 million in the same period of 2023. However, total interest expense also rose significantly to $7.4 million from $6.1 million, leading to a net interest income of $12.0 million, a slight increase from $11.1 million year-over-year. For the nine-month period, total interest and dividend income was $56.6 million, compared to $51.9 million in 2023, while net interest income decreased to $34.1 million from $38.2 million.

Net income for the third quarter was $4.6 million, a slight decline from $4.7 million in the prior year, resulting in a net income per diluted share of $0.85, down from $0.86. For the nine months, net income fell to $12.4 million from $16.1 million, with net income per diluted share decreasing to $2.30 from $2.99. The decline in profitability was attributed to increased costs of funds.

Total assets as of September 30, 2024, were $1.6 billion, a decrease of $31.2 million from December 31, 2023, but an increase of $52.2 million from the previous year. The total loan portfolio grew to $1.2 billion, up from $1.1 billion at year-end 2023, with commercial loans significantly increasing to $260.1 million from $152.5 million. Total deposits decreased to $1.4 billion, down from $1.4 billion at the end of 2023.

Strategically, the company sold Masonry Capital Management, LLC on April 1, 2024, to an officer of the company, which will provide an annual revenue share for six years post-sale. The company also initiated a share repurchase plan in June 2023, repurchasing 20,350 shares at an average price of $27.42 during the first half of 2024, with no repurchases in the third quarter.

The efficiency ratio (FTE) for the third quarter improved to 58.6% from 60.3% in the prior year, while the nine-month efficiency ratio increased to 62.6% from 56.7%, primarily due to a decline in net interest income. The company’s capital ratios remained strong, with Tier 1 capital at 18.04%, exceeding minimum requirements.

Overall, Virginia National Bankshares Corporation's financial results reflect a challenging environment with increased costs impacting profitability, despite growth in interest income and loan balances.