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Virginia National Bankshares Corporation Announces Third Quarter Financial Results
CHARLOTTESVILLE, Va., Oct. 26, 2020 (GLOBE NEWSWIRE) -- Virginia National Bankshares Corporation (OTCQX: VABK) (the “Company”) today reported third quarter
About this update from Virginia National Bankshares Corporation
[{"type":"text","content":"CHARLOTTESVILLE, Va., Oct. 26, 2020 (GLOBE NEWSWIRE) -- Virginia National Bankshares Corporation (OTCQX: VABK) (the “Company”) today reported third quarter net income of $1.87 million, or $0.69 per diluted share, a slight decrease compared to net income of $1.90 million, or $0.71 per diluted share, recognized during the third quarter of 2019. In the first nine months of 2020, net income was $5.36 million, or $1.98 per diluted share, which is a 2% increase over net income of $5.26 million, or $1.96 per diluted share, posted for the first nine months of 2019.\n “As we expected, we posted strong third quarter and year-to-date results, despite running through $549 thousand of merger expenses in connection with our announcement earlier this month,” said Glenn W. Rust, President and Chief Executive Officer. “We are honored to be entering into a partnership with The Fauquier Bank and Fauquier Bankshares, Inc., to combine the two banks and companies, joining forces to improve the experiences of clients and employees and accelerate the returns of our shareholders.” Update on Our Response to COVID-19 Paycheck Protection Program – Through September 30, 2020, Virginia National Bank has assisted nonprofits and local businesses by funding $86.9 million of Small Business Administration Paycheck Protection Program (“PPP”) loans, which were designed to provide economic relief to small businesses adversely impacted by COVID-19. The loans carry a 1% annual interest rate. The Company recorded PPP loan origination fees of approximately $3.0 million and deferred $95 thousand in loan origination costs that are being recognized as an adjustment to yield over the contractual life of the underlying loans, most of which are over a 24-month period. Upon repayment or forgiveness of each loan, the remaining unamortized fees and costs allocated to that loan will be recorded as income and expensed, respectively. The PPP loans generated pre-tax income of $645 thousand, from interest income and fee amortization, net of cost accretion, in the third quarter of 2020, with an effective yield of 2.95%.Loan Deferments - Also to assist our customers whose businesses were impacted by COVID-19, we processed a total of $58.4 million in loan deferments since the beginning of the pandemic, of which $28.7 million, or 49.1% were principal-only deferments; $20.0 million, or 34...