VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES FIRST QUARTER 2022 EARNINGS
VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES FIRST QUARTER 2022 EARNINGS
PR Newswire
CHARLOTTESVILLE, Va., April 28, 2022
CHARLOTTESVILLE, Va., April 28, 2022 /PRNewswire/ — Virginia National Bankshares Corporation (NASDAQ: VABK) (the “Compa…
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VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES FIRST QUARTER 2022 EARNINGS
PR Newswire
CHARLOTTESVILLE, Va., April 28, 2022
CHARLOTTESVILLE, Va., April 28, 2022 /PRNewswire/ -- Virginia National Bankshares Corporation (NASDAQ: VABK) (the "Company") today reported net income of $4.9 million for the quarter ended March 31, 2022, which represents a 227% increase over net income of $1.5 million recognized for the quarter ended March 31, 2021. Net income per diluted share of $0.92 for the quarter ended March 31, 2022 improved from $0.55 for the same quarter in the prior year. Note that the diluted weighted average common shares outstanding increased from 2,727,448 to 5,343,564 period over period 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 (the "Bank"), respectively.
President and Chief Executive Officer, Glenn W. Rust, commented, "The Company finished the first quarter with strong results and marked the one-year anniversary of the merger with Fauquier on April 1, 2022. The Bank is positioned to benefit from recent and anticipated increases in interest rates. We are excited about our strategy for expanded growth into the northern Virginia markets, with the hiring of Bank President Diane Corscadden-Weaver and a new team of lenders, and our credit quality remains strong."
First Quarter 2022 Results of Operations
- The efficiency ratio on a fully tax equivalent basis ("FTE") (a non-GAAP financial measure) was 62.0% for the three months ended March 31, 2022, an improvement over 67.7% for the three months ended March 31, 2021. 1
- Return on average assets ("ROAA") for the three months ended March 31, 2022 increased to 1.03% compared to 0.68% realized in the same period in the prior year, as the increase in net income outweighed the increase in assets as a result of the merger.
- Return on average equity ("ROAE") for the three months ended March 31, 2022 improved to 12.53% compared to 7.40% 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 has not incurred any merger and merger-related expenses since December 31, 2021, compared to $278 thousand incurred in the three months ended March 31, 2021.
- The Company has begun realizing savings associated with the merger and expects to realize significant additional savings in salaries and employee benefits, data processing and professional fees over the next year. Full-time equivalent employee headcount was 215 as of April 1, 2021, the effective date of the merger, and is down to 163 as of March 31, 2022.
Loans and Asset Quality
- Gross loans outstanding at March 31, 2022 totaled $1.0 billion, an increase of $386 million, or 62%, compared to March 31, 2021. The increase is predominantly due to the merger with Fauquier, which added $602.6 million of loan balances, net of the fair value mark, on the consolidated balance sheet beginning April 1, 2021. This increase was offset by the net decline in outstanding balances of Paycheck Protection Program ("PPP") loans of $60.2 million, due to loan forgiveness, the sale of the $6 million student loan portfolio acquired from Fauquier, and other loan paydowns.
__________________________________________________________________
1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.
Loans and Asset Quality (continued)
- Two loans to one borrower are in non-accrual status, totaling $518 thousand, as of March 31, 2022, compared to $5 thousand as of March 31, 2021. Loans acquired from Fauquier ("acquired loans") that 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 $837 thousand as of March 31, 2022, compared to $399 thousand as of March 31, 2021. The March 31, 2022 balance includes a government-guaranteed loan in the amount of $548 thousand. The portfolio only includes four non-insured student loans that are 90 days or more past due and still accruing interest, amounting to $79 thousand. Acquired loans that 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 0.58% as of March 31, 2022 and 0.90% as of March 31, 2021. The decrease is the result of bringing the acquired 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 March 31, 2022, and the ALLL as a percentage of total loans, excluding PPP loans (a non-GAAP financial measure)1, would have been 0.59% as of March 31, 2022.
- A provision for loan losses of $148 thousand was recognized during the three months ended March 31, 2022, compared to $351 thousand recognized in the three months ended March 31, 2021.
Net Interest Income
- Net interest income for the three months ended March 31, 2022 of $11.4 million increased $5.5 million, or 91%, compared to the three months ended March 31, 2021, 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.
- The fair value accretion on acquired loans positively impacted net interest income by 12 basis points ("bps") during the current quarter.
- The overall cost of funds, including noninterest deposits, of 21 bps incurred in the three months ended March 31, 2022 decreased 13 bps from 34 bps in the same period in the prior year, due primarily to lower rates paid on deposit accounts.
- Low-cost deposits, which include noninterest checking accounts and interest-bearing checking, savings and money market accounts, remained in excess of 91% of total deposits at March 31, 2022 and 2021.
Noninterest Income
Noninterest income for the three months ended March 31, 2022 increased $3.7 million, or 361%, compared to the three months ended March 31, 2021 largely due to the receipt and recognition of a $2.4 million one-time payment to resolve a commercial dispute, which is included within wealth management fees. 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 contributed to increases in each of those categories.
Noninterest Expense
Noninterest expense for the three months ended March 31, 2022 increased $5.3 million, or 111%, compared to the three months ended March 31, 2021, due to the inclusion of noninterest expense related to the legacy Fauquier business in nearly all line items within the category. In addition, core deposit intangible amortization expense, which was not incurred prior to the merger with Fauquier, was $439 thousand for the three months ended March 31, 2022.
Book Value
Book value per share was $27.42 as of March 31, 2022 and $29.33 as of March 31, 2021, declining primarily due to the increase in unrealized loss on the investment portfolio period over period. Tangible book value per share (a non-GAAP financial measure)1 as of March 31, 2022 was $24.37 compared to $29.07 as of March 31, 2021, declining also due to the impact of goodwill and other intangible assets recorded upon the merger with Fauquier. These amounts are impacted by the increase in shares outstanding as a result of the merger.
_____________________________________________________________________
1 See "Reconciliation of Certain Non-GAAP Financial Measures" at the end of this release.
Income Taxes
The effective tax rate for the three months ended March 31, 2022 amounted to 17.5%, due to the recognition of low-income housing tax credits, compared to 20.0% for the three months ended March 31, 2021.
Dividends
Cash dividends of $1.6 million were declared during the first quarter of 2022. The remaining 68% of net income was retained.
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 banking offices in Winchester and 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, 2021 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 | ||||||||
March 31, 2022 | December 31, 2021 * | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash and due from banks | $ | 16,539 | $ | 20,345 | ||||
Interest-bearing deposits in other banks | 311,546 | 336,032 | ||||||
Federal funds sold | 152,523 | 152,463 | ||||||
Securities: | ||||||||
Available for sale, at fair value | 341,361 | 303,817 | ||||||
Restricted securities, at cost | 5,137 | 4,950 | ||||||
Total securities | 346,498 | 308,767 | ||||||
Loans, net of deferred fees and costs | 1,006,962 | 1,061,211 | ||||||
Allowance for loan losses | (5,834) | (5,984) | ||||||
Loans, net | 1,001,128 | 1,055,227 | ||||||
Premises and equipment, net | 24,680 | 25,093 | ||||||
Bank owned life insurance | 36,987 | 31,234 | ||||||
Goodwill | 8,140 | 8,140 | ||||||
Core deposit intangible, net | 7,832 | 8,271 | ||||||
Other intangible assets, net | 257 | 274 | ||||||
Other real estate owned, net | 611 | 611 | ||||||
Right of use asset, net | 7,744 | 7,583 | ||||||
Accrued interest receivable and other assets | 20,722 | 18,144 | ||||||
Total assets | $ | 1,935,207 | $ | 1,972,184 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Demand deposits: | ||||||||
Noninterest-bearing | $ | 523,189 | $ | 522,281 | ||||
Interest-bearing | 451,339 | 446,314 | ||||||
Money market and savings deposit accounts | 644,418 | 665,530 | ||||||
Certificates of deposit and other time deposits | 155,402 | 162,045 | ||||||
Total deposits | 1,774,348 | 1,796,170 | ||||||
Junior subordinated debt, net | 3,379 | 3,367 | ||||||
Lease liability | 7,295 | 7,108 | ||||||
Accrued interest payable and other liabilities | 4,166 | 3,552 | ||||||
Total liabilities | 1,789,188 | 1,810,197 | ||||||
Commitments and contingent liabilities | ||||||||
Shareholders' equity: | ||||||||
Preferred stock, $2.50 par value | - | - | ||||||
Common stock, $2.50 par value | 13,190 | 13,178 | ||||||
Capital surplus | 104,706 | 104,584 | ||||||
Retained earnings | 49,764 | 46,436 | ||||||
Accumulated other comprehensive loss | (21,641) | (2,211) | ||||||
Total shareholders' equity | 146,019 | 161,987 | ||||||
Total liabilities and shareholders' equity | $ | 1,935,207 | $ | 1,972,184 | ||||
Common shares outstanding | 5,326,271 | 5,308,335 | ||||||
Common shares authorized | 10,000,000 | 10,000,000 | ||||||
Preferred shares outstanding | - | - | ||||||
Preferred shares authorized | 2,000,000 | 2,000,000 | ||||||
* Derived from audited consolidated financial statements | ||||||||
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||
For the three months ended | ||||||||
March 31, 2022 | March 31, 2021 | |||||||
Interest and dividend income: | ||||||||
Loans, including fees | $ | 10,769 | $ | 5,938 | ||||
Federal funds sold | 61 | 12 | ||||||
Other interest-bearing deposits | 136 | - | ||||||
Investment securities: | ||||||||
Taxable | 1,012 | 507 | ||||||
Tax exempt | 304 | 176 | ||||||
Dividends | 62 | 34 | ||||||
Total interest and dividend income | 12,344 | 6,667 | ||||||
Interest expense: | ||||||||
Demand and savings deposits | 676 | 377 | ||||||
Certificates and other time deposits | 195 | 280 | ||||||
Borrowings | 48 | 36 | ||||||
Total interest expense | 919 | 693 | ||||||
Net interest income | 11,425 | 5,974 | ||||||
Provision for loan losses | 148 | 351 | ||||||
Net interest income after provision for loan losses | 11,277 | 5,623 | ||||||
Noninterest income: | ||||||||
Wealth management fees | 2,957 | 329 | ||||||
Advisory and brokerage income | 216 | 191 | ||||||
Deposit account fees | 465 | 160 | ||||||
Debit/credit card and ATM fees | 707 | 154 | ||||||
Earnings/increase in value of bank owned life insurance | 211 | 107 | ||||||
Other | 231 | 98 | ||||||
Total noninterest income | 4,787 | 1,039 | ||||||
Noninterest expense: | ||||||||
Salaries and employee benefits | 4,731 | 2,402 | ||||||
Net occupancy | 1,197 | 495 | ||||||
Equipment | 283 | 116 | ||||||
Bank franchise tax | 304 | 173 | ||||||
Computer software | 263 | 167 | ||||||
Data processing | 738 | 289 | ||||||
FDIC deposit insurance assessment | 226 | 63 | ||||||
Marketing, advertising and promotion | 267 | 137 | ||||||
Merger and merger-related expenses | - | 278 | ||||||
Plastics expense | 139 | 42 | ||||||
Professional fees | 337 | 177 | ||||||
Core deposit intangible amortization | 439 | - | ||||||
Other | 1,171 | 442 | ||||||
Total noninterest expense | 10,095 | 4,781 | ||||||
Income before income taxes | 5,969 | 1,881 | ||||||
Provision for income taxes | 1,045 | 376 | ||||||
Net income | $ | 4,924 | $ | 1,505 | ||||
Net income per common share, basic | $ | 0.93 | $ | 0.55 | ||||
Net income per common share, diluted | $ | 0.92 | $ | 0.55 | ||||
Weighted average common shares outstanding, basic | 5,311,983 | 2,719,840 | ||||||
Weighted average common shares outstanding, diluted | 5,343,564 | 2,727,448 | ||||||
VIRGINIA NATIONAL BANKSHARES CORPORATION | ||||||||||||||||||||
At or For the Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
Common Share Data: | ||||||||||||||||||||
Net income per weighted average share, basic | $ | 0.93 | $ | 0.98 | $ | 0.59 | $ | 0.03 | $ | 0.55 | ||||||||||
Net income per weighted average share, diluted | $ | 0.92 | $ | 0.98 | $ | 0.59 | $ | 0.03 | $ | 0.55 | ||||||||||
Weighted average shares outstanding, basic | 5,311,983 | 5,308,108 | 5,306,370 | 5,305,277 | 2,719,840 | |||||||||||||||
Weighted average shares outstanding, diluted | 5,343,564 | 5,338,088 | 5,338,872 | 5,320,290 | 2,727,448 | |||||||||||||||
Actual shares outstanding | 5,326,271 | 5,308,335 | 5,307,235 | 5,305,819 | 2,728,327 | |||||||||||||||
Tangible book value per share at period end | $ | 24.37 | $ | 27.36 | $ | 26.92 | $ | 26.60 | $ | 29.07 | ||||||||||
Key Ratios: | ||||||||||||||||||||
Return on average assets 1 | 1.03 | % | 1.06 | % | 0.65 | % | 0.03 | % | 0.68 | % | ||||||||||
Return on average equity 1 | 12.53 | % | 12.86 | % | 7.70 | % | 0.37 | % | 7.40 | % | ||||||||||
Net interest margin (FTE) 2 | 2.59 | % | 2.72 | % | 3.08 | % | 3.05 | % | 2.83 | % | ||||||||||
Efficiency ratio (FTE) 3 | 62.02 | % | 57.70 | % | 75.17 | % | 99.06 | % | 67.72 | % | ||||||||||
Loan-to-deposit ratio | 56.75 | % | 59.08 | % | 64.04 | % | 71.57 | % | 77.23 | % | ||||||||||
Net Interest Income: | ||||||||||||||||||||
Net interest income | $ | 11,425 | $ | 12,359 | $ | 13,504 | $ | 13,151 | $ | 5,974 | ||||||||||
Net interest income (FTE) 2 | $ | 11,490 | $ | 12,437 | $ | 13,581 | $ | 13,224 | $ | 6,021 | ||||||||||
Capital Ratios: | ||||||||||||||||||||
Tier 1 leverage ratio | 8.03 | % | 7.61 | % | 7.59 | % | 7.66 | % | 9.01 | % | ||||||||||
Total risk-based capital ratio | 15.66 | % | 14.56 | % | 13.74 | % | 13.47 | % | 15.49 | % | ||||||||||
Assets and Asset Quality: | ||||||||||||||||||||
Average Earning Assets | $ | 1,802,461 | $ | 1,817,010 | $ | 1,750,799 | $ | 1,740,338 | $ | 862,373 | ||||||||||
Average Gross Loans | $ | 1,031,593 | $ | 1,088,278 | $ | 1,140,281 | $ | 1,214,123 | $ | 618,902 | ||||||||||
Paycheck Protection Program Loans, end of period | $ | 9,976 | $ | 24,482 | $ | 36,740 | $ | 73,784 | $ | 70,171 | ||||||||||
Allowance for loan losses: | ||||||||||||||||||||
Beginning of period | $ | 5,984 | $ | 5,623 | $ | 5,522 | $ | 5,615 | $ | 5,455 | ||||||||||
Provision for (recovery of) loan losses | 148 | 537 | 267 | (141) | 351 | |||||||||||||||
Charge-offs | (473) | (230) | (208) | (156) | (241) | |||||||||||||||
Recoveries | 175 | 54 | 42 | 204 | 50 | |||||||||||||||
Net recoveries (charge-offs) | (298) | (176) | (166) | 48 | (191) | |||||||||||||||
End of period | $ | 5,834 | $ | 5,984 | $ | 5,623 | $ | 5,522 | $ | 5,615 | ||||||||||
Non-accrual loans 4 | $ | 518 | $ | 495 | $ | 777 | $ | 17 | $ | 5 | ||||||||||
Loans 90 days or more past due and still accruing 5 | 837 | 800 | 1,044 | 2,770 | 399 | |||||||||||||||
OREO | 611 | 611 | 611 | 611 | - | |||||||||||||||
Total nonperforming assets (NPA) | $ | 1,966 | $ | 1,906 | $ | 2,432 | $ | 3,398 | $ | 404 | ||||||||||
NPA as a % of total assets | 0.10 | % | 0.10 | % | 0.13 | % | 0.18 | % | 0.04 | % | ||||||||||
NPA as a % of total loans plus OREO | 0.20 | % | 0.18 | % | 0.22 | % | 0.29 | % | 0.07 | % | ||||||||||
ALLL to total loans | 0.58 | % | 0.56 | % | 0.51 | % | 0.47 | % | 0.90 | % | ||||||||||
ALLL to total loans, excluding PPP loans (non-GAAP) | 0.59 | % | 0.58 | % | 0.52 | % | 0.51 | % | 1.02 | % | ||||||||||
Non-accruing loans to total loans 4 | 0.05 | % | 0.05 | % | 0.07 | % | 0.00 | % | 0.00 | % | ||||||||||
Net charge-offs (recoveries) to average loans 1 | 0.12 | % | 0.06 | % | 0.06 | % | -0.02 | % | 0.12 | % | ||||||||||
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 | ||||||||||||||||||||
For the three months ended | ||||||||||||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||||||||||
Interest | Interest | |||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||||||||
(dollars in thousands) | Balance | Expense | Yield/Cost | Balance | Expense | Yield/Cost | ||||||||||||||
ASSETS | ||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||
Securities | ||||||||||||||||||||
Taxable Securities | $ | 248,219 | $ | 1,074 | 1.73 | % | $ | 142,837 | $ | 541 | 1.52 | % | ||||||||
Tax Exempt Securities 1 | 65,145 | 385 | 2.36 | % | 33,234 | 223 | 2.68 | % | ||||||||||||
Total Securities 1 | 313,364 | 1,459 | 1.86 | % | 176,071 | 764 | 1.74 | % | ||||||||||||
Total Loans | 1,031,593 | 10,770 | 4.23 | % | 618,902 | 5,938 | 3.89 | % | ||||||||||||
Fed Funds Sold | 152,477 | 61 | 0.16 | % | 67,400 | 12 | 0.07 | % | ||||||||||||
Other interest-bearing deposits | 305,027 | 120 | 0.16 | % | — | — | — | |||||||||||||
Total Earning Assets | 1,802,461 | 12,410 | 2.79 | % | 862,373 | 6,714 | 3.16 | % | ||||||||||||
Less: Allowance for Loan Losses | (6,027) | (5,476) | ||||||||||||||||||
Total Non-Earning Assets | 140,916 | 45,619 | ||||||||||||||||||
Total Assets | $ | 1,937,350 | $ | 902,516 | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||
Interest Bearing Deposits: | ||||||||||||||||||||
Interest Checking | $ | 421,468 | $ | 61 | 0.06 | % | $ | 146,781 | $ | 26 | 0.07 | % | ||||||||
Money Market and Savings Deposits | 656,219 | 615 | 0.38 | % | 284,333 | 351 | 0.50 | % | ||||||||||||
Time Deposits | 158,423 | 195 | 0.50 | % | 99,692 | 280 | 1.14 | % | ||||||||||||
Total Interest-Bearing Deposits | 1,236,110 | 871 | 0.29 | % | 530,806 | 657 | 0.50 | % | ||||||||||||
Short term borrowings | — | — | — | 30,000 | 36 | 0.49 | % | |||||||||||||
Junior subordinated debt | 3,371 | 49 | 5.90 | % | — | — | — | |||||||||||||
Total Interest-Bearing Liabilities | 1,239,481 | 920 | 0.30 | % | 560,806 | 693 | 0.50 | % | ||||||||||||
Non-Interest-Bearing Liabilities: | ||||||||||||||||||||
Demand deposits | 527,091 | 255,227 | ||||||||||||||||||
Other liabilities | 11,347 | 3,948 | ||||||||||||||||||
Total Liabilities | 1,777,919 | 819,981 | ||||||||||||||||||
Shareholders' Equity | 159,431 | 82,535 | ||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 1,937,350 | $ | 902,516 | ||||||||||||||||
Net Interest Income (FTE) | $ | 11,490 | $ | 6,021 | ||||||||||||||||
Interest Rate Spread 2 | 2.49 | % | 2.66 | % | ||||||||||||||||
Cost of Funds | 0.21 | % | 0.34 | % | ||||||||||||||||
Interest Expense as a Percentage of Average Earning Assets | 0.21 | % | 0.33 | % | ||||||||||||||||
Net Interest Margin (FTE) 3 | 2.59 | % | 2.83 | % | ||||||||||||||||
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 | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||||||||||||
Fully tax-equivalent measures | ||||||||||||||||||||
Net interest income | $ | 11,425 | $ | 12,359 | $ | 13,504 | $ | 13,151 | $ | 5,974 | ||||||||||
Fully tax-equivalent adjustment | 65 | 78 | 77 | 73 | 47 | |||||||||||||||
Net interest income (FTE) 1 | $ | 11,490 | $ | 12,437 | $ | 13,581 | $ | 13,224 | $ | 6,021 | ||||||||||
Efficiency ratio 2 | 62.3 | % | 58.0 | % | 75.5 | % | 99.5 | % | 68.2 | % | ||||||||||
Fully tax-equivalent adjustment | -0.3 | % | -0.3 | % | -0.3 | % | -0.4 | % | -0.5 | % | ||||||||||
Efficiency ratio (FTE) 3 | 62.0 | % | 57.7 | % | 75.2 | % | 99.1 | % | 67.7 | % | ||||||||||
Net interest margin | 2.57 | % | 2.70 | % | 3.06 | % | 3.03 | % | 2.81 | % | ||||||||||
Fully tax-equivalent adjustment | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | 0.02 | % | ||||||||||
Net interest margin (FTE) 1 | 2.59 | % | 2.72 | % | 3.08 | % | 3.05 | % | 2.83 | % | ||||||||||
As of | ||||||||||||||||||||
March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||||||||||||
Other financial measures | ||||||||||||||||||||
ALLL to total loans | 0.58 | % | 0.56 | % | 0.51 | % | 0.47 | % | 0.90 | % | ||||||||||
Impact of acquired loans and fair value mark | 0.37 | % | 0.39 | % | 0.39 | % | 0.41 | % | — | |||||||||||
ALLL to total loans, excluding acquired loans and fair value mark (non-GAAP) | 0.95 | % | 0.95 | % | 0.90 | % | 0.88 | % | 0.90 | % | ||||||||||
ALLL to total loans | 0.58 | % | 0.56 | % | 0.51 | % | 0.47 | % | 0.90 | % | ||||||||||
Impact of PPP loans | 0.01 | % | 0.02 | % | 0.01 | % | 0.04 | % | 0.12 | % | ||||||||||
ALLL to total loans, excluding PPP loans (non-GAAP) | 0.59 | % | 0.58 | % | 0.52 | % | 0.51 | % | 1.02 | % | ||||||||||
Book value per share | $ | 27.42 | $ | 30.50 | $ | 30.13 | $ | 29.89 | $ | 29.33 | ||||||||||
Impact of intangible assets | (3.05) | (3.14) | (3.21) | $ | (3.29) | $ | (0.26) | |||||||||||||
Tangible book value per share (non-GAAP) | $ | 24.37 | $ | 27.36 | $ | 26.92 | $ | 26.60 | $ | 29.07 | ||||||||||
1 | FTE calculations use a Federal income tax rate of 21%. |
2 | The efficiency ratio, GAAP basis, is computed by dividing noninterest expense by the sum of net interest income and noninterest income. |
3 | The efficiency ratio, FTE, is computed by dividing noninterest expense by the sum of net interest income (FTE) and noninterest income. |
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SOURCE Virginia National Bankshares Corporation
Spread & Containment
The Coming Of The Police State In America
The Coming Of The Police State In America
Authored by Jeffrey Tucker via The Epoch Times,
The National Guard and the State Police are now…
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Authored by Jeffrey Tucker via The Epoch Times,
The National Guard and the State Police are now patrolling the New York City subway system in an attempt to do something about the explosion of crime. As part of this, there are bag checks and new surveillance of all passengers. No legislation, no debate, just an edict from the mayor.
Many citizens who rely on this system for transportation might welcome this. It’s a city of strict gun control, and no one knows for sure if they have the right to defend themselves. Merchants have been harassed and even arrested for trying to stop looting and pillaging in their own shops.
The message has been sent: Only the police can do this job. Whether they do it or not is another matter.
Things on the subway system have gotten crazy. If you know it well, you can manage to travel safely, but visitors to the city who take the wrong train at the wrong time are taking grave risks.
In actual fact, it’s guaranteed that this will only end in confiscating knives and other things that people carry in order to protect themselves while leaving the actual criminals even more free to prey on citizens.
The law-abiding will suffer and the criminals will grow more numerous. It will not end well.
When you step back from the details, what we have is the dawning of a genuine police state in the United States. It only starts in New York City. Where is the Guard going to be deployed next? Anywhere is possible.
If the crime is bad enough, citizens will welcome it. It must have been this way in most times and places that when the police state arrives, the people cheer.
We will all have our own stories of how this came to be. Some might begin with the passage of the Patriot Act and the establishment of the Department of Homeland Security in 2001. Some will focus on gun control and the taking away of citizens’ rights to defend themselves.
My own version of events is closer in time. It began four years ago this month with lockdowns. That’s what shattered the capacity of civil society to function in the United States. Everything that has happened since follows like one domino tumbling after another.
It goes like this:
1) lockdown,
2) loss of moral compass and spreading of loneliness and nihilism,
3) rioting resulting from citizen frustration, 4) police absent because of ideological hectoring,
5) a rise in uncontrolled immigration/refugees,
6) an epidemic of ill health from substance abuse and otherwise,
7) businesses flee the city
8) cities fall into decay, and that results in
9) more surveillance and police state.
The 10th stage is the sacking of liberty and civilization itself.
It doesn’t fall out this way at every point in history, but this seems like a solid outline of what happened in this case. Four years is a very short period of time to see all of this unfold. But it is a fact that New York City was more-or-less civilized only four years ago. No one could have predicted that it would come to this so quickly.
But once the lockdowns happened, all bets were off. Here we had a policy that most directly trampled on all freedoms that we had taken for granted. Schools, businesses, and churches were slammed shut, with various levels of enforcement. The entire workforce was divided between essential and nonessential, and there was widespread confusion about who precisely was in charge of designating and enforcing this.
It felt like martial law at the time, as if all normal civilian law had been displaced by something else. That something had to do with public health, but there was clearly more going on, because suddenly our social media posts were censored and we were being asked to do things that made no sense, such as mask up for a virus that evaded mask protection and walk in only one direction in grocery aisles.
Vast amounts of the white-collar workforce stayed home—and their kids, too—until it became too much to bear. The city became a ghost town. Most U.S. cities were the same.
As the months of disaster rolled on, the captives were let out of their houses for the summer in order to protest racism but no other reason. As a way of excusing this, the same public health authorities said that racism was a virus as bad as COVID-19, so therefore it was permitted.
The protests had turned to riots in many cities, and the police were being defunded and discouraged to do anything about the problem. Citizens watched in horror as downtowns burned and drug-crazed freaks took over whole sections of cities. It was like every standard of decency had been zapped out of an entire swath of the population.
Meanwhile, large checks were arriving in people’s bank accounts, defying every normal economic expectation. How could people not be working and get their bank accounts more flush with cash than ever? There was a new law that didn’t even require that people pay rent. How weird was that? Even student loans didn’t need to be paid.
By the fall, recess from lockdown was over and everyone was told to go home again. But this time they had a job to do: They were supposed to vote. Not at the polling places, because going there would only spread germs, or so the media said. When the voting results finally came in, it was the absentee ballots that swung the election in favor of the opposition party that actually wanted more lockdowns and eventually pushed vaccine mandates on the whole population.
The new party in control took note of the large population movements out of cities and states that they controlled. This would have a large effect on voting patterns in the future. But they had a plan. They would open the borders to millions of people in the guise of caring for refugees. These new warm bodies would become voters in time and certainly count on the census when it came time to reapportion political power.
Meanwhile, the native population had begun to swim in ill health from substance abuse, widespread depression, and demoralization, plus vaccine injury. This increased dependency on the very institutions that had caused the problem in the first place: the medical/scientific establishment.
The rise of crime drove the small businesses out of the city. They had barely survived the lockdowns, but they certainly could not survive the crime epidemic. This undermined the tax base of the city and allowed the criminals to take further control.
The same cities became sanctuaries for the waves of migrants sacking the country, and partisan mayors actually used tax dollars to house these invaders in high-end hotels in the name of having compassion for the stranger. Citizens were pushed out to make way for rampaging migrant hordes, as incredible as this seems.
But with that, of course, crime rose ever further, inciting citizen anger and providing a pretext to bring in the police state in the form of the National Guard, now tasked with cracking down on crime in the transportation system.
What’s the next step? It’s probably already here: mass surveillance and censorship, plus ever-expanding police power. This will be accompanied by further population movements, as those with the means to do so flee the city and even the country and leave it for everyone else to suffer.
As I tell the story, all of this seems inevitable. It is not. It could have been stopped at any point. A wise and prudent political leadership could have admitted the error from the beginning and called on the country to rediscover freedom, decency, and the difference between right and wrong. But ego and pride stopped that from happening, and we are left with the consequences.
The government grows ever bigger and civil society ever less capable of managing itself in large urban centers. Disaster is unfolding in real time, mitigated only by a rising stock market and a financial system that has yet to fall apart completely.
Are we at the middle stages of total collapse, or at the point where the population and people in leadership positions wise up and decide to put an end to the downward slide? It’s hard to know. But this much we do know: There is a growing pocket of resistance out there that is fed up and refuses to sit by and watch this great country be sacked and taken over by everything it was set up to prevent.
Government
Low Iron Levels In Blood Could Trigger Long COVID: Study
Low Iron Levels In Blood Could Trigger Long COVID: Study
Authored by Amie Dahnke via The Epoch Times (emphasis ours),
People with inadequate…
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Authored by Amie Dahnke via The Epoch Times (emphasis ours),
People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.
A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.
Long COVID Patients Have Low Iron Levels
Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.
In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.
According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.
But it can jeopardize a person’s recovery.
“When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”
The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.
“It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”
The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.
1 in 5 Still Affected by Long COVID
COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.
Uncategorized
February Employment Situation
By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…
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By Paul Gomme and Peter Rupert
The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.
Temporary help services employment continues a steep decline after a sharp post-pandemic rise.
Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.
The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.
The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.
Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.
As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.
Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.
The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.
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