Wed, May 15, 9:42 PM (72 days ago)
Virginia National Bankshares Corporation's quarterly report for the period ended March 31, 2024, reflects a mixed financial performance. Key points include: 1. **Net Income**: The company reported a net income of $3.6 million, down from $5.8 million in the same period last year. This decline resulted in a lower return on average assets (ROAA) of 0.91% and a return on average equity (ROAE) of 9.57%. 2. **Net Interest Income**: Net interest income decreased by $2.5 million to $11.0 million, primarily due to higher interest expenses, which increased by $4.7 million. The net interest margin (FTE) also dropped to 2.93% from 3.71% in the prior year. 3. **Noninterest Income**: Noninterest income slightly decreased to $2.2 million, driven by lower debit/credit card fees and gains on interest rate swap terminations. 4. **Noninterest Expense**: Noninterest expenses remained relatively stable at $8.8 million, with notable decreases in occupancy and marketing expenses. 5. **Loan Portfolio**: Total loans increased by $35.5 million to $1.1 billion, with a significant portion attributed to the purchase of government-guaranteed loans. 6. **Deposits**: Total deposits grew by $22.9 million to $1.4 billion, with a shift towards higher-cost time deposits. 7. **Asset Quality**: Nonaccrual loans increased slightly to $2.2 million, with the allowance for credit losses (ACL) at $8.3 million, representing 0.73% of total loans. 8. **Capital Ratios**: The company maintained strong capital ratios, with a Tier 1 capital ratio of 17.67% and a total capital ratio of 18.49%. Overall, while the company experienced growth in loans and deposits, the increased interest expense and lower noninterest income impacted profitability. The company remains well-capitalized and continues to manage its asset quality effectively.