Virginia National Bankshares Corporation (NASDAQ: VABK) reported net income of $6.6 million for the quarter ended September 30, 2026, or $1.20 per diluted share. This represents an increase from $4.6 million, or $0.84 per diluted share, in the same period of the prior year.
The company attributed the earnings growth to a 26 basis point increase in loan yields, a reduction in the cost of funds by 9 basis points, and a payout from bank-owned life insurance following the death of a former employee.
Key performance indicators for the quarter showed a 30 basis point expansion in the net interest margin on a fully tax-equivalent basis, rising to 3.73% from 3.43% in the prior year. Return on average assets improved to 1.58% from 1.12%, while return on average equity rose to 13.34% from 10.48%. The efficiency ratio improved to 50.7% from 57.9%.
As of September 30, 2026, gross loans totaled $1.2 billion, a slight increase from the previous year. Securities balances were $219.9 million, down from $254.2 million at the end of 2025 due to portfolio runoff. Deposits stood at $1.4 billion, with the company holding $20.0 million in borrowings from the Federal Home Loan Bank of Atlanta.
Nonperforming assets decreased to $5.9 million, or 0.36% of total assets. The allowance for credit losses on loans was 0.66% of total loans. Book value per share increased to $35.01 as of September 30, 2026, compared to $32.89 in the prior year.
During the third quarter, the company declared cash dividends of $0.36 per share.
