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VIRGINIA NATIONAL BANKSHARES CORPORATION

(VABK)
  Report
Delayed Nasdaq  -  04:00:00 2023-01-27 pm EST
36.31 USD   +0.08%
2022Virginia National Bankshares Corp : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
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2022VIRGINIA NATIONAL BANKSHARES CORPORATION : Ex-dividend day for
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2022Virginia National Bankshares Corp : Other Events, Financial Statements and Exhibits (form 8-K)
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VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES RECORD NET INCOME FOR 2021

02/18/2022 | 05:26pm EST

CHARLOTTESVILLE, Va., Feb. 18, 2022 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported net income of $10.0 million for the year ended December 31, 2021, attaining the highest consolidated net income for any year in the Company's history, even after realizing $7.4 million of pre-tax ($5.6 million after-tax) merger and merger-related expenses.  The record net income of $10.0 million is a  25% increase compared to net income of $8.0 million recognized for the year ended December 31, 2020. 

Net income of $5.2 million for the quarter ended December 31, 2021, represents a 100% increase over net income of $2.6 million recognized for the quarter ended December 31, 2020.  Net income per diluted share of $2.13 for the year ended December 31, 2021 declined from $2.95 for the year ended December 31, 2020 and this decline was driven by the increase in number of shares outstanding as a result of the April 1, 2021 mergers of Fauquier Bankshares, Inc. and The Fauquier Bank ("Fauquier") with and into the Company and Virginia National Bank, respectively. 

Excluding merger and merger-related expenses, the Company would have posted net income of $15.6 million, or $3.31 per diluted share, (a non-GAAP financial measure)1 for the year ended December 31, 2021.  Return on average assets ("ROAA") of 0.61% for the year ended December 31, 2021 would have amounted to 0.95% excluding merger and merger-related expenses (a non-GAAP financial measure),1 compared to 1.00%, or 1.09% excluding merger and merger-related expenses (a non-GAAP financial measure),1 in the  year ended December 31, 2020. 

"We finished the year with strong financial results after successfully integrating our systems, processes and people in the merger with Fauquier," said Glenn W. Rust, President and Chief Executive Officer.  "We have begun to realize significant cost savings, which will allow us to return value to our shareholders earlier than originally anticipated."

Fourth Quarter 2021 Results of Operations

  • The efficiency ratio on a fully tax equivalent basis ("FTE") (a non-GAAP financial measure) was 57.7% for the three months ended December 31, 2021, compared to 57.0% for the three months ended December 31, 2020. 1
  • ROAA for the three months ended December 31, 2021 declined to 1.06% compared to 1.23% realized in the same period in the prior year, primarily due to the significant increase in assets as a result of the merger.
  • Return on average equity ("ROAE") for the three months ended December 31, 2021 increased to 12.86% compared to 12.75% realized in same period in the prior year, as the increase in net income was greater than the increase in equity as a result of the merger.
  • The Company reversed $664 thousand in pre-tax merger and merger-related expenses during the three months ended December 31, 2021, after receiving a refund from a third-party vendor for system implementation credits and adjusting merger-related accrued bonuses. This post-tax reversal of $588 thousand represents an improvement of $0.11 per diluted share.
  • The Company has begun realizing savings associated with the merger and expects to realize significant additional savings over the next year. Full-time equivalent employee headcount was 215 as of April 1, 2021 and 173 as of December 31, 2021.

____________________

1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.

Loans and Asset Quality

  • Gross loans outstanding at December 31, 2021 totaled $1.1 billion, an increase of $452 million, or 74%, compared to December 31, 2020. The increase is predominantly due to the acquisition of Fauquier, which added $602.6 million of loan balances, net of the fair value mark, on the consolidated balance sheet beginning April 1, 2021, but was offset by the decline in outstanding balances of Paycheck Protection Program ("PPP") loans of $121.2 million, due to loan forgiveness, the sale of the $6 million student loan portfolio formerly held by Fauquier, and other loan paydowns.
  • Loan deferrals declined to $1.2 million as of December 31, 2021, from $3.3 million as of December 31, 2020. Only two loans remain in deferral status as of December 31, 2021, and each loan is government guaranteed.
  • One non-accrual loan, in the amount of $495 thousand, was on the books as of December 31, 2021, compared to $8 thousand as of December 31, 2020. Acquired loans which otherwise would be in non-accrual status are not included in this figure, as they earn interest through the yield accretion.
  • Loans 90 days or more past due and still accruing interest amounted to $800 thousand as of December 31, 2021, compared to $137 thousand as of December 31, 2020. The December 31, 2021 balance includes a government-guaranteed loan in the amount of $548 thousand. The portfolio only includes eight non-insured student loans that are 90 days or more past due and still accruing interest, amounting to $83 thousand. Loans acquired from Fauquier which are greater than 90 days past due and still accruing interest are included in this figure, net of their fair value mark.
  • The period-end allowance for loan losses ("ALLL") as a percentage of total loans was 0.56% as of December 31, 2021 and 0.90% as of December 31, 2020. The decrease is the result of bringing the Fauquier loans onto the Company's balance sheet at fair value, with a credit and liquidity mark of $21.3 million effective April 1, 2021. The ALLL as a percentage of loans, excluding the impact of the acquired loans and fair value mark (a non-GAAP financial measure)1, would have been 0.95% as of December 31, 2021, and the ALLL as a percentage of total loans, excluding PPP loans (a non-GAAP financial measure)1, would have been 0.58% as of December 31, 2021.
  • A provision for loan losses of $537 thousand was recognized during the three months ended December 31, 2021, compared to $255 thousand recognized in the three months ended December 31, 2020. A provision for loan losses of $1.0 million was recognized during the year ended December 31, 2021, compared to $1.6 million recognized during the year ended December 31, 2020.

Net Interest Income

  • Net interest income for the three months ended December 31, 2021 of $12.4 million increased $5.7 million, or 84%, compared to the three months ended December 31, 2020, due to the inclusion of Fauquier's interest income and expense for the current quarter and the lower rates paid on deposits as compared to the prior year. Net interest income for the year ended December 31, 2021 of $45.0 million increased $21.1 million, or 88%, compared to the prior year due to the inclusion of Fauquier's interest income and expense for three quarters and lower rates paid on deposits.
  • The fair value accretion on loans acquired positively impacted net interest income by 19 basis points ("bps") during the current quarter and by 72 bps for the year ended December 31, 2021.
  • The overall cost of funds, including noninterest deposits, of 22 bps incurred in the three months ended December 31, 2021 decreased 14 bps from 36 bps in the same period in 2020, due to lower rates paid on deposit accounts, coupled with the acceleration of the fair value accretion related to the payoff of FHLB advances.
  • Low-cost deposits, which include noninterest checking accounts and interest-bearing checking, savings and money market accounts, remained in excess of 86% of total deposits at December 31, 2021 and 2020.

_______________

1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.

Noninterest Income

Noninterest income for the three months ended December 31, 2021 increased $1.2 million, or 64%, compared to the three months ended December 31, 2020 primarily due to the recognition of $822 thousand of performance fee income by Masonry's Capital LLC (a wholly-owned subsidiary of the Company), included in wealth management fees on the consolidated statements of income.  Also, the inclusion of Fauquier's wealth management fees, advisory and brokerage income, income from bank-owned life insurance policies, deposit fees and debit card income attributed to increases in each of those categories.  Swap fee income declined $314 thousand, as swap arrangements are not as attractive to borrowers in the current rate environment.

Noninterest income for the year ended December 31, 2021  increased $3.9 million, or 59%, compared to the prior year.  Wealth management income, including the performance fees noted above, contributed $2.4 million of this increase.  The inclusion of Fauquier's wealth management fees, advisory and brokerage income,  income from bank-owned life insurance policies, deposit fees and debit card income also attributed to the year-over-year increase.  Swap fee income declined $1.2 million, and limited securities were sold in the current year, compared to a gain of $743 thousand in the prior year. 

Noninterest Expense

Noninterest expense for the three months ended December 31, 2021 increased $4.0 million, or 82%, compared to the three months ended December 31, 2020, due to the inclusion of Fauquier's noninterest expense, in nearly all line items within the category, offset by an adjustment to merger and merger-related expenses after receiving a refund from a third-party vendor for system implementation credits and adjusting merger-related accrued bonuses.  

Noninterest expense for the year ended December 31, 2021 increased $23.7 million, or 126%, due to the inclusion of Fauquier's noninterest expenses and an increase of $6.4 million in merger and merger-related expenses.

Book Value

Book value per share was $30.50 as of December 31, 2021 and $30.43 as of December 31, 2020.  Tangible book value per share (a non-GAAP financial measure)1 as of December 31, 2021 was $27.36 compared to $30.17 as of December 31, 2020, declining due to the impact of goodwill and other intangible assets recorded upon the acquisition of Fauquier.  These amounts are impacted by the increase in shares outstanding as a result of the merger.

Income Taxes

The effective tax rate for the three months ended December 31, 2021 amounted to 11.9%, due to the recognition of low-income housing tax credits, compared to 22.9% for the three months ended December 31, 2020.  The effective tax rate for 2021 was 16.0%, also less than the statutory rate due to the recognition of low-income housing tax credits, compared to 20.6% in the prior year.

Dividends

Cash dividends of $1.6 million were declared during the fourth quarter of 2021.  The remaining 69% of net income was retained.

____________________

1 See "Reconciliation of Certain 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 ten banking offices throughout Fauquier and Prince William counties, four banking offices in Charlottesville and Albemarle County, and one banking office in Winchester, and offers loan, deposit and treasury management services in 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 Bank also offers, through its networking agreements with third parties, investment advisory and other investment services under Sturman Wealth Advisors.  Investment management services are offered through Masonry Capital Management, LLC, a registered investment adviser and wholly-owned subsidiary of the Company.

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 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: general economic and market conditions, including the effects of declines in real estate values, an increase in unemployment levels and general economic contraction as a result of COVID-19 or other pandemics; fluctuations in interest rates, deposits, loan demand, and asset quality; assumptions that underlie the Company's allowance for loan losses; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts or public health events (e.g., COVID-19 or other pandemics), and of governmental and societal responses thereto; the performance of vendors or other parties with which the Company does business; competition; technology; changes in laws, regulations and guidance; changes in accounting principles or guidelines; performance of assets under management; expected revenue synergies and cost savings from the recently completed merger with Fauquier may not be fully realized or realized within the expected timeframe; the businesses of the Company and Fauquier may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; revenues following the merger may be lower than expected; customer and employee relationships and business operations may be disrupted by the merger; and other factors impacting financial services businesses.  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, 2020 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,

2021



December 31, 

2020 *




(Unaudited)





ASSETS







Cash and due from banks


$

20,345



$

8,116


Interest-bearing deposits in other banks



336,032




-


Federal funds sold



152,463




26,579


Securities:







Available for sale, at fair value



303,817




174,086


Restricted securities, at cost



4,950




3,010


Total securities



308,767




177,096


Loans



1,061,211




609,406


Allowance for loan losses



(5,984)




(5,455)


Loans, net



1,055,227




603,951


Premises and equipment, net



25,093




5,238


Bank owned life insurance



31,234




16,849


Goodwill



8,140




372


Core deposit intangible, net



8,271




-


Other intangible assets, net



274




341


Other real estate owned, net



611




-


Right of use asset, net



7,583




3,527


Accrued interest receivable and other assets



18,485




6,341


Total assets


$

1,972,525



$

848,410


LIABILITIES AND SHAREHOLDERS' EQUITY







Liabilities:







Demand deposits:







Noninterest-bearing


$

522,281



$

209,772


Interest-bearing



446,314




148,910


Money market and savings deposit accounts



665,530




272,980


Certificates of deposit and other time deposits



162,045




99,102


Total deposits



1,796,170




730,764


Advances from the FHLB



-




30,000


Junior subordinated debt



3,367




-


Lease liability



7,108




3,589


Accrued interest payable and other liabilities



3,955




1,459


Total liabilities



1,810,600




765,812


Commitments and contingent liabilities







Shareholders' equity:







Preferred stock, $2.50 par value, 2,000,000 shares authorized,

   no shares outstanding



-




-


Common stock, $2.50 par value, 10,000,000 shares authorized;

     5,308,335 shares issued and outstanding as of December 31,          

     2021 (includes 35,911 nonvested), and 2,714,273 shares issued

     and outstanding as of December 31, 2020 (includes

     25,268 nonvested)



13,178




6,722


Capital surplus



104,584




32,457


Retained earnings



46,374




41,959


Accumulated other comprehensive income (loss)



(2,211)




1,460


Total shareholders' equity



161,925




82,598


Total liabilities and shareholders' equity


$

1,972,525



$

848,410



*  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, 2021


December 31, 2020



December 31, 2021



December 31, 2020


Interest and dividend income:












Loans, including fees


$

11,995


$

6,743



$

43,899



$

24,945


Federal funds sold



61



6




139




104


Other interest-bearing deposits



139



-




233




-


Investment securities:












Taxable



804



452




2,810




1,602


Tax exempt



292



149




1,021




475


Dividends



49



34




170




104


Total interest and dividend income



13,340



7,384




48,272




27,230














Interest expense:












Demand and savings deposits



710



356




2,308




1,824


Certificates and other time deposits



222



288




1,108




1,454


Borrowings



49



38




(132)




73


Total interest expense



981



682




3,284




3,351


Net interest income



12,359



6,702




44,988




23,879


Provision for loan losses



537



255




1,014




1,622


Net interest income after provision for loan losses



11,822



6,447




43,974




22,257














Noninterest income:












Wealth management fees



1,455



332




3,508




1,133


Advisory and brokerage income



246



184




1,154




700


Deposit account fees



477



167




1,459




651


Debit/credit card and ATM fees



509



177




2,070




612


Earnings/increase in value of bank owned life insurance



201



110




708




437


Gains on sales of securities



1



9




1




743


Loan swap fee income



22



336




81




1,313


Other



117



530




1,484




976


Total noninterest income



3,028



1,845




10,465




6,565














Noninterest expense:












Salaries and employee benefits



4,424



2,462




16,129




9,466


Net occupancy



932



503




3,575




1,908


Equipment



305



62




966




463


Bank franchise tax



214



161




1,136




649


Computer software



276



143




1,020




579


Data processing



620



266




3,017




1,106


FDIC deposit insurance assessment



264



99




858




187


Marketing, advertising and promotion



216



74




922




409


Merger and merger-related expenses



(664)



439




7,423




988


Plastics expense



389



40




978




180


Professional fees



244



221




1,117




723


Core deposit intangible amortization



544



-




1,389




-


Other



1,160



427




3,992




2,121


Total noninterest expense



8,924



4,897




42,522




18,779














Income before income taxes



5,926



3,395




11,917




10,043


Provision for income taxes



707



779




1,908




2,065


Net income


$

5,219


$

2,616



$

10,009



$

7,978


Net income per common share, basic


$

0.98


$

0.96



$

2.14



$

2.95


Net income per common share, diluted


$

0.98


$

0.96



$

2.13



$

2.95


Weighted average common shares outstanding, basic



5,308,108



2,714,273




4,668,761




2,707,877


Weighted average common shares outstanding, diluted



5,338,088



2,714,905




4,695,405




2,708,567


 

VIRGINIA NATIONAL BANKSHARES CORPORATION

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)

(Unaudited)




At or For the Three Months Ended




December 31,

2021



September 30,

2021



June 30,

2021



March 31,

2021



December 31,

2020


Common Share Data:
















Net income per weighted average share, basic


$

0.98



$

0.59



$

0.03



$

0.55



$

0.96


Net income per weighted average share, diluted


$

0.98



$

0.59



$

0.03



$

0.55



$

0.96


Weighted average shares outstanding, basic



5,308,108




5,306,370




5,305,277




2,719,840




2,714,273


Weighted average shares outstanding, diluted



5,338,088




5,338,872




5,320,290




2,727,448




2,714,905


Actual shares outstanding



5,308,335




5,307,235




5,305,819




2,728,327




2,714,273


Tangible book value per share at period end


$

27.36



$

26.92



$

26.60



$

29.07



$

30.17


















Key Ratios:
















Return on average assets 1



1.06

%



0.65

%



0.03

%



0.68

%



1.23

%

Return on average equity 1



12.86

%



7.70

%



0.37

%



7.40

%



12.75

%

Net interest margin (FTE) 2



2.72

%



3.08

%



3.05

%



2.83

%



3.32

%

Efficiency ratio (FTE) 3



57.70

%



75.17

%



99.27

%



67.72

%



57.03

%

Loan-to-deposit ratio



59.08

%



64.04

%



71.57

%



77.23

%



83.39

%

















Net Interest Income:
















Net interest income


$

12,359



$

13,504



$

13,151



$

5,974



$

6,702


Net interest income (FTE) 2,3


$

12,437



$

13,581



$

13,224



$

6,021



$

6,740


















Capital Ratios:
















Tier 1 leverage ratio



7.61

%



7.59

%



7.66

%



9.01

%



9.54

%

Total risk-based capital ratio



14.56

%



13.74

%



13.47

%



15.49

%



15.35

%

















Assets and Asset Quality:
















Average Earning Assets


$

1,817,010



$

1,750,799



$

1,740,338



$

862,373



$

807,351


Average Gross Loans


$

1,088,278



$

1,140,281



$

1,214,123



$

618,902



$

618,296


Paycheck Protection Program Loans, end of period


$

24,482



$

36,740



$

73,784



$

70,171



$

55,120


Loan Deferrals, Pandemic Related


$

1,215



$

1,243



$

2,004



$

1,539



$

3,346


Allowance for loan losses:
















Beginning of period


$

5,623



$

5,522



$

5,615



$

5,455



$

5,334


Provision for (recovery of) loan losses



537




267




(141)




351




255


Charge-offs



(230)




(208)




(156)




(241)




(162)


Recoveries



54




42




204




50




28


Net recoveries (charge-offs)



(176)




(166)




48




(191)




(134)


End of period


$

5,984



$

5,623



$

5,522



$

5,615



$

5,455


















Non-accrual loans 4


$

495



$

777



$

17



$

5



$

8


Loans 90 days or more past due and still accruing 5



800




1,044




2,770




399




137


OREO



611




611




611




-




-


Total nonperforming assets (NPA)


$

1,906



$

2,432



$

3,398



$

404



$

145


















NPA as a % of total assets



0.10

%



0.13

%



0.18

%



0.04

%



0.02

%

NPA as a % of total loans plus OREO



0.18

%



0.22

%



0.29

%



0.07

%



0.02

%

ALLL to total loans



0.56

%



0.51

%



0.47

%



0.90

%



0.90

%

ALLL to total loans, excluding PPP loans (non-GAAP)



0.58

%



0.52

%



0.51

%



1.02

%



0.98

%

Non-accruing loans to total loans 4



0.05

%



0.07

%



0.00

%



0.00

%



0.00

%

Net charge-offs (recoveries) to average loans 1



0.06

%



0.06

%



-0.02

%



0.12

%



0.09

%



1

Ratio is computed on an annualized basis.

2

The net interest margin and net interest income are reported on a FTE basis, using a Federal income tax rate of 21%.

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

Acquired loans which otherwise would be in non-accrual status are not included in this figure, as they earn interest through the yield accretion.

5

Past due loans from the acquired portfolio are included at fair value.

 

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, 2021


September 30, 2021


December 31, 2020






Interest






Interest






Interest






Average


Income/


Average


Average


Income/


Average


Average


Income/


Average


(dollars in thousands)


Balance


Expense


Yield/Cost


Balance


Expense


Yield/Cost


Balance


Expense


Yield/Cost


ASSETS




















Interest Earning Assets:




















Securities




















Taxable Securities


$

225,757


$

853



1.51

%

$

214,194


$

797



1.49

%

$

129,201


$

526



1.63

%

Tax Exempt Securities 1



63,083



371



2.35

%


59,869



355



2.37

%


26,932



149



2.21

%

Total Securities 1



288,840



1,224



1.70

%


274,063



1,152



1.68

%


156,133



675



1.73

%

Total Loans



1,088,278



11,995



4.37

%


1,140,281



12,959



4.51

%


618,296



6,742



4.34

%

Fed Funds Sold



152,435



61



0.16

%


137,472



45



0.13

%


32,922



6



0.07

%

Other interest-bearing deposits



287,457



138



0.19

%


198,983



55



0.11

%







Total Earning Assets



1,817,010



13,418



2.93

%


1,750,799



14,211



3.22

%


807,351



7,423



3.65

%

Less: Allowance for Loan Losses



(5,704)







(5,532)







(5,345)






Total Non-Earning Assets



140,539







159,014







43,184






Total Assets


$

1,951,845






$

1,904,281






$

845,190


























LIABILITIES AND SHAREHOLDERS' EQUITY




















Interest Bearing Liabilities:




















Interest Bearing Deposits:




















Interest Checking


$

421,372


$

70



0.07

%

$

410,504


$

72



0.07

%

$

135,993


$

24



0.07

%

Money Market and Savings Deposits



660,438



639



0.38

%


621,211



601



0.38

%


277,850



332



0.48

%

Time Deposits



162,584



222



0.54

%


171,256



282



0.65

%


98,447



288



1.16

%

Total Interest-Bearing Deposits



1,244,394



931



0.30

%


1,202,971



955



0.31

%


512,290



644



0.50

%

Short term borrowings









22,260



(375)



-6.68

%


32,719



39



0.47

%

Junior subordinated debt



3,360



50



5.86

%


3,349



50



5.92

%







Total Interest-Bearing Liabilities



1,247,754



981



0.31

%


1,228,580



630



0.20

%


545,009



683



0.50

%

Non-Interest-Bearing Liabilities:




















Demand deposits



532,397







499,068







214,020






Other liabilities



10,741







15,003







4,210






Total Liabilities



1,790,892







1,742,651







763,239






Shareholders' Equity



160,953







161,630







81,951






Total Liabilities & Shareholders' Equity


$

1,951,845






$

1,904,281






$

845,190






Net Interest Income (FTE)




$

12,437






$

13,581






$

6,740




Interest Rate Spread 2







2.62

%






3.02

%






3.16

%

Cost of Funds







0.22

%






0.14

%






0.36

%

Interest Expense as a Percentage of Average Earning Assets







0.21

%






0.14

%






0.34

%

Net Interest Margin (FTE) 3







2.72

%






3.08

%






3.32

%



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.

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

QUARTERLY RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

(Unaudited)




Three Months Ended




December 31, 2021



September 30, 2021



June 30, 2021




March 31, 2021



December 31, 2020


Performance measures

















Return on average assets ("ROAA")



1.06

%



0.65

%



0.03

%




0.68

%



1.23

%

Impact of merger expenses 1



-0.12

%



0.30

%



0.99

%




0.08

%



0.17

%

ROAA, excluding merger expenses 1 (non-GAAP)



0.94

%



0.95

%



1.02

%




0.76

%



1.40

%


















Return on average equity ("ROAE")



12.86

%



7.70

%



0.37

%




7.40

%



12.75

%

Impact of merger expenses 1



-1.45

%



3.53

%



11.51

%




0.83

%



1.79

%

ROAE, excluding merger expenses 1 (non-GAAP)



11.41

%



11.23

%



11.88

%




8.23

%



14.54

%


















Net income


$

5,219



$

3,138



$

147




$

1,505



$

2,616


Impact of merger expenses 1



(588)




1,424




4,553



0



169




368


Net income, excluding merger expenses 1 (non-GAAP)


$

4,631



$

4,562



$

4,700




$

1,674



$

2,984



















Net income per share


$

0.98



$

0.59



$

0.03




$

0.53



$

0.77


Impact of merger expenses 1



(0.11)




0.27




0.86





0.06




0.15


Net income per share, excluding merger expenses 1 (non-GAAP)


$

0.87



$

0.86



$

0.89




$

0.59



$

0.92



















Fully tax-equivalent measures

















Net interest income


$

12,359



$

13,504



$

13,151




$

5,974



$

6,702


Fully tax-equivalent adjustment



78




77




73





47




38


Net interest income (FTE) 2


$

12,437



$

13,581



$

13,224




$

6,021



$

6,740



















Efficiency ratio 3



58.0

%



75.5

%



99.5

%




68.2

%



57.3

%

Fully tax-equivalent adjustment



-0.3

%



-0.3

%



-0.4

%




-0.5

%



-0.3

%

Efficiency ratio (FTE) 4



57.7

%



75.2

%



99.1

%




67.7

%



57.0

%


















Net interest margin



2.70

%



3.06

%



3.03

%




2.81

%



3.30

%

Fully tax-equivalent adjustment



0.02

%



0.02

%



0.02

%




0.02

%



0.02

%

Net interest margin (FTE) 2



2.72

%



3.08

%



3.05

%




2.83

%



3.32

%




















As of




December 31,



September 30,



June 30,




March 31,



December 31,




2021



2021



2021




2021



2020


Other financial measures

















ALLL to total loans



0.56

%



0.51

%



0.47

%




0.90

%



0.90

%

Impact of acquired loans and fair value mark



0.39

%



0.39

%



0.41

%








ALLL to total loans, excluding acquired loans and

fair value mark (non-GAAP)



0.95

%



0.90

%



0.88

%




0.90

%



0.90

%


















ALLL to total loans



0.56

%



0.51

%



0.47

%




0.90

%



0.90

%

Impact of PPP loans



0.02

%



0.01

%



0.04

%




0.12

%



0.08

%

ALLL to total loans, excluding PPP loans (non-GAAP)



0.58

%



0.52

%



0.51

%




1.02

%



0.98

%


















Book value per share


$

30.50



$

30.13



$

29.89




$

29.33



$

30.43


Impact of intangible assets



(3.14)




(3.21)




(3.29)




$

(0.26)



$

(0.26)


Tangible book value per share (non-GAAP)


$

27.36



$

26.92



$

26.60




$

29.07



$

30.17



























1

References to merger expenses include merger and merger-related expenses and are net of tax. 

2

FTE calculations use a Federal income tax rate of 21%.

3

The efficiency ratio, GAAP basis, is computed by dividing noninterest expense by the sum of net interest income and noninterest income.

4

The efficiency ratio, FTE, is computed by dividing noninterest expense by the sum of net interest income (FTE) and noninterest income.

 

VIRGINIA NATIONAL BANKSHARES CORPORATION

ANNUAL RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

(Unaudited)




For the Twelve Months Ended




December 31, 2021



December 31, 2020


Performance measures







Return on average assets ("ROAA")



0.61

%



1.00

%

Impact of merger expenses 1



0.34

%



0.09

%

ROAA, excluding merger expenses 1 (non-GAAP)



0.95

%



1.09

%








Return on average equity ("ROAE")



7.12

%



10.01

%

Impact of merger expenses 1



3.95

%



0.88

%

ROAE, excluding merger expenses 1 (non-GAAP)



11.07

%



10.89

%








Net income


$

10,009



$

7,978


Impact of merger expenses 1



5,557




704


Net income, excluding merger expenses 1 (non-GAAP)


$

15,566



$

8,682









Net income per share


$

2.13



$

2.95


Impact of merger expenses 1



1.18




0.26


Net income per share, excluding merger expenses 1 (non-GAAP)


$

3.31



$

3.21









Fully tax-equivalent measures







Net interest income


$

44,988



$

23,879


Fully tax-equivalent adjustment



275




126


Net interest income (FTE) 2


$

45,263



$

24,005









Efficiency ratio 3



76.7

%



61.7

%

Fully tax-equivalent adjustment



-0.4

%



-0.3

%

Efficiency ratio (FTE) 4



76.3

%



61.4

%








Net interest margin



2.73

%



3.16

%

Fully tax-equivalent adjustment



0.01

%



0.01

%

Net interest margin (FTE) 2



2.74

%



3.17

%



1

References to merger expenses include merger and merger-related expenses and are net of tax. 

2

FTE calculations use a Federal income tax rate of 21%.

3

The efficiency ratio, GAAP basis, is computed by dividing noninterest expense by the sum of net interest income and noninterest income.

4

The efficiency ratio, FTE, is computed by dividing noninterest expense by the sum of net interest income (FTE) and noninterest income.

 

Cision
View original content:https://www.prnewswire.com/news-releases/virginia-national-bankshares-corporation-announces-record-net-income-for-2021-301485972.html

SOURCE Virginia National Bankshares


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