Yahoo Finance Virginia National Bankshares Corp Reports Mixed Q1 2024 Financial Results
Net Income: $3.6M for Q1 2024, up from $3.2M in Q4 2023 but down from $5.8M in Q1 2023.
Earnings Per Share: $0.68 in Q1 2024, compared to $0.59 in Q4 2023 and $1.08 in Q1 2023.
Loan Growth: Gross loans increased by 20% year-over-year to $1.1 billion as of March 31, 2024.
Deposit Growth: Total deposits rose by 2.5% year-over-year to $1.432 billion as of March 31, 2024.
Net Interest Margin: Declined to 2.93% in Q1 2024 from 3.71% in Q1 2023.
Nonperforming Assets: Increased to 0.19% of total assets as of March 31, 2024, up from 0.08% year-over-year.
Dividends: Paid cash dividends of $1.8 million, or $0.33 per share, during Q1 2024.
On April 23, 2024, Virginia National Bankshares Corp (NASDAQ:VABK) disclosed its first-quarter earnings through an 8-K filing, revealing a net income of $3.6 million, or $0.68 per diluted share. This represents a decrease from the $5.8 million, or $1.08 per diluted share, reported in the same period last year, but an increase from $3.2 million, or $0.59 per diluted share, in the preceding quarter.
Company Overview
Virginia National Bankshares Corp, headquartered in Charlottesville, Virginia, operates as a bank holding company primarily through Virginia National Bank. It provides a comprehensive range of banking and financial services to individuals, businesses, and charitable organizations. The company's offerings include various deposit products, loans, and wealth management services, among others.
Financial Performance and Key Highlights
The first quarter of 2024 saw VABK achieving a 20% year-over-year increase in loan balances, reaching $1.1 billion. The bank's President and CEO, Glenn W. Rust, highlighted the solid credit quality and the strategic avoidance of brokered funds as key factors contributing to the financial stability of the bank. Despite these gains, the company experienced a decline in net interest income, which fell by 18.5% to $10.9 million from the previous year, primarily due to higher interest expenses.
Detailed Financial Analysis
Virginia National Bankshares Corp's asset quality remains robust with nonperforming assets making up only 0.19% of total assets as of March 31, 2024. The allowance for credit losses stood at 0.73% of total loans, reflecting a cautious yet stable financial cushion against potential loan defaults.
The bank's deposit portfolio grew modestly. Total deposits increased by 1.6% from the end of 2023, amounting to $1.43 billion. This growth, coupled with a reduction in borrowings by $46.5 million, supports the company's claim of a stabilized cost of funds during the quarter.
Capital and Liquidity
Virginia National Bankshares maintained strong capital and liquidity positions. The bank's book value per share increased to $28.31 from $26.50 year-over-year, and its tangible book value per share rose to $25.99 from $23.88. These increases are indicative of a solid balance sheet and prudent retention of earnings.
Operational Highlights
During the quarter, VABK sold its interests in Masonry Capital Management, LLC, which is expected to reduce future expenses and provide a steady stream of revenue-share for the next six years. Additionally, the bank enacted a share repurchase plan, buying back 874 shares at an average price of $29.60, signaling confidence in its intrinsic value.
Challenges and Forward Outlook
While the bank has shown adept management of its loan portfolio and cost of funds, the overall reduction in net interest income and the slight increase in nonperforming assets year-over-year pose challenges that will require continued strategic management. The financial landscape remains competitive, and sustaining growth amidst fluctuating interest rates and economic conditions will be critical for VABK's ongoing success.
For more detailed financial information and future updates on Virginia National Bankshares Corp, investors and stakeholders are encouraged to refer to the company's filings and official announcements.
Explore the complete 8-K earnings release (here) from Virginia National Bankshares Corp for further details.
This article first appeared on GuruFocus.
