Virginia National Bankshares Corporation · NASDAQ:VABK
Virginia National Bankshares — Shareholder Meeting (June 2019)
30 slides from Virginia National Bankshares's shareholder meeting presentation, Jun 14, 2019
Slide 1: Annual Shareholders' Meeting
ANNUAL SHAREHOLDERS’ MEETING June 14, 2019 Wr VIRGINIA NATIONAL BANKSHARES CORPORATION
Slide 2: Forward-looking statements
Statements in this letter which express or imply a view about the objectives and future performance of the Virginia National Bankshares Corporation are “forward-looking statements.” Such statements are often characterized by use of qualified words such as “expect,” “believe,” “estimate,” “project,”
Slide 3: Introduction
INTRODUCTION e Welcome from President and CEO, Glenn Rust e Remarks from Chairman of the Board, Bill Dittmar e Financial presentation by CFO, Tara Harrison
Slide 4: Dividend History
DIVIDEND HISTORY Cash Dividends Per Share $1.09 $0.64 ; 49 $0.38 7 28 $0.15 “2013 2014 2015 2016 “2017 2018 VIRGINIA NATIONAL
Slide 5: Total Return Performance
TOTAL RETURN PERFORMANCE —¢— Virginia National Bankshares Corporation —#- NASDAQ Composite Index —4— NASDAQ Financial Index —— SNL U.S. Bank $500M-$1B Index +*@++ SNL Mid-Atlantic U.S. Bank Index Index Value 50 12/3113 12/31/14 12/3115 12/31/16 1213417 12/3118 ‘Source: S&P Global Market Intelligence
Slide 6: Stock Dividends
STOCK DIVIDENDS ¢ Issued 5% stock dividend in April 2018 ¢ Board approved an additional 5% stock dividend e For shareholders of record as of June 26, 2019 e Payable July 5, 2019 ¢ Cash will be paid for fractional shares © Cash dividend of $0.30 will be paid on the increased shares from the stock div
Slide 7: Financial Information
FINANCIAL INFORMATION Wr VIRGINIA NATIONAL eae nian
Slide 8: Consolidated Net Income
CONSOLIDATED NET INCOME $8.5 Millions 2015 2016 2017 2017 2018 Pre-DTA Post-DTA Ve VIRGINIA NATIONAL BA.
Slide 9: Net Income Per Share
NET INCOME PER SHARE $3.31 $2.96 $2.58 $2.30 Dollars 2015 2016 2017 2017 #2018 Pre-DTA Post-DTA Ve VIRGINIA NATIONAL BANK;
Slide 10: Performance Metrics
PERFORMANCE METRICS Return on Average Assets and Equity eB 11.88% 12.39% e 3 12.0% € Z 1.33% = < 1.20% : 2 3p & 5 9.0% & 2 $ a < =I = 0.80% 5.34% 5 £ 6.0% §£ s 3 3 3 a 0.56% 4 0.40% 3.0% 2015 2016 2017 2017 2018 Pre-DTA Post-DTA —-—ROAA —-—ROAE ye VIRGINIA NATIONAL BANKSHARES. 9 ‘CORPORATION,
Slide 11: Efficiency Ratio
EFFICIENCY RATIO 90% 84% 80% 70% 60% 50% _- _HYaoyo__ _ 2014 2015 2016 2017 2018 ——VNB -—*—Peer-National —e—Peer-Virginia Peer = All commercial banks with assets of $100 million to $1 billion \er VIRGINIA NATIONAL
Slide 12: Net Charge-Offs to Total Loans
NET CHARGE-OFFS TO TOTAL LOANS 1.50% 1.00% 0.50% 0.00% : T 1 2009 2012 2015 2018 —— VNB ——Peer-National ——Peer-Virginia Peer = All commercial banks with assets of $100 million to $1 billion re Wr VIRGINIA
Slide 13: Loan Loss Allowance
LOAN LOSS ALLOWANCE 2.25% 1.75% 1.25% 0.75% 1 T T T T T T 1 2009 2012 2015 2018 —— VNB ——Peer-National —-— Peer-Virginia Peer = All commercial banks with assets of $100 million to $1 billion We VIRGINIA ~
Slide 14: Nonperforming Assets/Assets
NONPERFORMING ASSETS/ASSETS 4.00% 2.00% 0.00% T T 1 T 2009 2012 2015 2018 —— VNB ——Peer-National —— Peer-Virginia Peer = All commercial banks with assets of $100 million to $1 billion re Wr VIRGINIA
Slide 15: VNB Rankings
VNB RANKINGS * Virginia National Bank is the #3 bank in Virginia in the year-end 2018 Overall Ranking by Banks Street Partners. BisiP BANKS STREET PARTNERS ** Virginia National Bank is ranked #85 in the 2019 Top 200 Community Banks in the United States by American Banker. AMERICAN BANKER. TOP 200 CO
Slide 16: Student Loans
STUDENT LOANS Wr VIRGINIA NATIONAL eae nian
Slide 17: Student Loans
STUDENT LOANS Student Loan Balances $64.4 $56.7 $55.5 $46.4 39.9 $35.7 ) ; $34.1 | T T T T I Dec. Dec. Dec. Dec. Dec. Dec. Dec. 2015 2016 «2017 2018 2019 2020 2021 i Actual BB Projected Millions Projections are estimates only; the Company does not undertake to update these projections. Ver VIRGINIA
Slide 18: Student Loans
STUDENT LOANS Student Loan Balances as of % of Total Loans 11.8% 12.2% 10.2% 8.4% 8.4% 9 6.8% | | | [| T T T T T T T d 1 Dec. Dee. Dee. Dec. Dec. Dee. Dee. 2015 2016 = 2017's 2018 »=— 2019 = 2020S 2021 HB Actual Hl Projected Projections are estimates only; the Company does not undertake to update th
Slide 19: ALLL as % of Total Loans as of 12/31/18
¢ ALLLasa % of Total Loans as of 12/31/18= 0.91% e 2.42% attributable to student loans © 0.62% organic
Slide 20: Student Loans
STUDENT LOANS ¢ Since inception - $10.8 mm in interest income recognized ¢ 3Q 2015 — 2Q 2018 — avg 5.62% e 3Q 2018 - 4.46% e 4Q 2018 - 1.61%* e 1Q 2019 -1.57%* ¢ Inno quarter have charge-offs exceeded income *Prior to active collection strategy We VIRGINIA
Slide 21: Corporate Changes Through Q1 2019
CORPORATE CHANGES THROUGH Q1 2019 Wr VIRGINIA NATIONAL BANKSHARES CORPORATION
Slide 22: Corporate Changes
CORPORATE CHANGES e [.T. Steering Committee formed e Fiduciary and Wealth Committee formed e Advisory Board of young business leaders e Finance Career & Leadership Academy education program ¢ Commercial Lender certification and training program ¢ Richmond commercial lending team ¢ Wealth Management
Slide 23: Reorganization of Wealth Management
REORGANIZATION OF WEALTH MANAGEMENT Wr VIRGINIA NATIONAL BANKSHARES CORPORATION
Slide 24: VNB Wealth Management
VNB WEALTH MANAGEMENT ¢ Reorganization of VNB Wealth Management ¢ Elimination of VNB Trust charter — July 2018 ¢ Buildout of new departments — January 2019 e Lowered IT. expenses for Trust & Estate Services — March 2019 Ww s*
Slide 25: VNB Wealth Management Stages
VNB WEALTH MANAGEMENT STAGES STAGE I Wr VIRGINIA NATIONAL BANK’ 4 Wr VNBTrust v + Investment Trust & Services Estate Services Avr VIRGINIA
Slide 26: VNB Wealth Management Stages
VNB WEALTH MANAGEMENT STAGES Y\r FINAL STAGE _ VIRGINA NATIONAL BANKSHARES. CORPORATION % s \Wr === MASONRY VIRGINIA © ir NATIONAL BANK’ v7 ’ Ww ava VNB VNB INVESTMENT TRUST & ESTATE SERVICES. SERVICES Avr VIRGINIA NATIONAL 25 COMORATION
Slide 27: Locations
LOCATIONS Wr VIRGINIA NATIONAL aang nian
Slide 28: Expansion
EXPANSION © Virginia National Bankshares Headquarters Wr VIRGINIA NATIONAL BANKSHARES. 27 ‘CORPORATION
Slide 29: Questions?
QUESTIONS? Wr VIRGINIA NATIONAL eae nian
Slide 30: Thank You
THANK YOU Wr VIRGINIA NATIONAL aang nian
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