Virginia National Bankshares (VABK) investor relations material

Executive summary

• Q3 2026 net income was $6.6 million, or $1.20 per diluted share, versus $4.6 million, or $0.84, in Q3 2025; higher loan yields, lower funding costs and a bank-owned life insurance payout contributed to the increase.

• Q3 FTE net interest margin expanded 30 bps YoY to 3.73%, reflecting balance-sheet management and improved interest spreads.

Financial highlights

• Q3 net interest income was $14.5 million, up 11.2% YoY; 9M net interest income was $41.2 million versus $38.2 million in 9M 2025.

• Q3 noninterest income rose 24.1% YoY to $1.7 million, including a $421,000 bank-owned life insurance payout, partly offset by lower card and ATM fees.

• Q3 noninterest expense decreased 1.6% YoY to $8.3 million; 9M expense fell $1.2 million, including lower data processing, legal and telecommunications costs.

• 9M net income was $20.8 million versus $13.3 million in 9M 2025; 9M noninterest income included a $4.7 million gain on sale of a limited partnership interest.

Key financial ratios and metrics

• Return on average assets increased to 1.58% from 1.12% YoY; return on average equity rose to 13.34% from 10.48%.

• Q3 FTE efficiency ratio improved to 50.7% from 57.9% YoY; loan-to-deposit ratio was 89.1% versus 89.2%.

• Q3 loan yield rose to 5.90% from 5.64%; total cost of funds decreased 9 bps to 1.68%, while interest-bearing deposit cost fell 8 bps to 2.18%.

• Nonperforming assets were 0.36% of total assets versus 0.42% a year earlier; ACL was 0.66% of gross loans versus 0.69%.

• Book value per share was $35.01 and tangible book value per share was $33.21, versus $32.89 and $30.90, respectively, at September 30, 2025.