Virginia National Bankshares Reports $17M Net Income for Fiscal Year 2024

Virginia National Bankshares Corporation reported a net income of $17.0 million, or $3.15 per diluted share, for the fiscal year ending December 31, 2024, reflecting an 11.9% decrease from the previous year's net income of $19.3 million, or $3.58 per diluted share. The decline in profitability was primarily attributed to a $2.6 million decrease in net interest income and a $1.5 million drop in noninterest income, which were partially offset by a $397,000 reduction in noninterest expenses. The efficiency ratio (FTE) increased to 62.0% in 2024 from 58.3% in 2023, indicating a rise in operational costs relative to income.

The company's total assets as of December 31, 2024, were approximately $1.62 billion, a slight decrease from $1.65 billion in 2023. Total loans increased by 13.1% to $1.24 billion, driven by growth in commercial and real estate lending. The allowance for credit losses (ACL) stood at $8.5 million, representing 0.68% of total loans, a decrease from 0.77% in the prior year. The company recorded a net recovery of provision for credit losses of $600,000 in 2024, compared to a provision expense of $734,000 in 2023, reflecting improved credit quality and successful collection efforts.

Strategically, Virginia National Bankshares completed the sale of its investment management subsidiary, Masonry Capital Management, LLC, to an officer of the company effective April 1, 2024. This transaction is expected to provide the company with an annual revenue share for six years, although it will no longer incur expenses related to Masonry Capital. The company also initiated a share repurchase plan in June 2023, allowing for the repurchase of up to 5% of its outstanding common stock, with 20,350 shares repurchased at an average price of $27.42 during 2024.

Operationally, the company maintained a workforce of 146 full-time equivalent employees as of December 31, 2024, down from 155 in the previous year. The company continues to focus on enhancing its customer base and expanding its market presence in Virginia, particularly in areas such as Charlottesville, Winchester, Manassas, and Richmond. The company’s capital ratios remain strong, with the Tier 1 capital ratio at 17.77%, well above the regulatory minimums, indicating a solid financial foundation for future growth.

Looking ahead, Virginia National Bankshares anticipates continued challenges in the economic environment, including potential impacts from inflation and interest rate fluctuations. The company remains committed to managing its credit risk and maintaining strong capital levels while exploring opportunities for growth through strategic initiatives and market expansion.