Virginia National Bankshares Corporation · NASDAQ:VABK

Virginia National Bankshares — Shareholder Meeting (May 2016)

22 slides from Virginia National Bankshares's shareholder meeting presentation, May 18, 2016

  1. Slide 1: Annual Shareholders' Meeting

    ANNUAL SHAREHOLDERS’ MEETING May 18, 2016 \r- VIRGINIA NATIONAL BANKSHARES CORPORATION

  2. Slide 2: Forward Looking Statements, Other Information & Explanations

    FORWARD LOOKING STATEMENTS, OTHER INFORMATION & EXPLANATIONS Forward-Looking Statements; Other Information: Certain information in this presentation which expresses or implies a view about the objectives and future performance ofthe Virgina National Bankshares Corporation are "forward-looking statem

  3. Slide 3: Management team and years of experience

    Years of hae a“ a Experience Glenn Rust President and CEO Gina Bayes Chief Credit Officer/Executive VP 36 18 Jennifer Matheny Chief Operations Officer/Retail Banking/Executive VP 26 18 Donna Shewmake General Counsel/Executive VP 30 8 Mark Meulenberg Chief Investment Officer/Executive VP - VNBTrust 2

  4. Slide 4: Strategies Deployed in 2015

    y STRATEGIES DEPLOYED IN 2015 VIRGINIA NATIONAL BANKSHARES CORPORATION

  5. Slide 5: Focal Points

    FOCAL POINTS Capital Allocation Non-Interest Expense Net Interest Income Wealth Management Ve VIRGINIA NATIONAL

  6. Slide 6: Focus - Capital Allocation

    FOCUS - CAP’ * Repurchased stock under our approved repurchase plan > Purchased 276,997 shares in 2015 > Purchased 55,062 shares in first quarter of 2016 ¢ Revisited dividend discussion © Considered acquisition opportunities > Wealth Management > Bank Wwe VIRGINIA NATIONAL

  7. Slide 7: Focus - Non-Interest Expense

    FOCUS - NON-INTEREST EXPENSE * Streamlined and reorganized Company > Combined retail and operations under one manager > Eliminated three executive management positions > Consolidated Charlottesville commercial lenders ¢ Reduced headcount to 2005 levels Awe VIRGINIA NATIONAL

  8. Slide 8: Focus - Net Interest Income

    FOCUS - NET INTEREST INCOME Remained competitive in our markets for quality loans Diversified our loan portfolio Looked at new markets and redefined market boundaries Retained our excellent asset quality Ae VIRGINIA NATIONAL

  9. Slide 9: Focus - Wealth Management

    TH MANAGEMENT * Focused on client profitability * Streamlined structure and expenses Wwe VIRGINIA _

  10. Slide 10: Company Information

    y COMPANY INFORMATION VIRGINIA NATIONAL BANKSHARES CORPORATION

  11. Slide 11: Consolidated Assets of Company & VNB Wealth Client Assets Under Management

    CONSOLIDATED ASSETS OF COMPANY & VNB WEALTH CLIENT ASSETS UNDER MANAGEMEN’ ($ Amounts Shown in Thousands) 2007 | 2008 | 2009 | 2010 | zou | 2oiz | 203 | 2014 | 2015 uviswa| $316 304] $263,335 $384853) Sau0.se0| $529,537 $601,733] $583,597 | $484669 | 5414909 rvs | $545,598] $401,175] $441,298) $459,

  12. Slide 12: Balance Sheet at Year-End

    BALANCE SHEET AT YEAR-END ($ Amounts Shown in Thousands) Total Assets Total Earning Assets $567,624 r] i a esse 9500405 $530,722 2013 2013 ‘Total Loans ‘Total Deposits 7 aisase $423,664 i i a of Vr one 2013 ViRGINIA NATIONAL

  13. Slide 13: Net Interest Margin

    NET INTEREST MARGIN 2007” 2008 —«2009==«2010=2011.=202~—«2013. =O 2S, Ww VIRGINIA NATIONAL

  14. Slide 14: Net Interest Margin & Average Loan Yield

    NET INTEREST MARGIN & AVERAGE LOAN YIELD soos soos _—___ 2.00% 0.00% —_—_$_ =a $a 2012 2013 2014 2015 steNet Interest Margin illeAverage Loan Yield

  15. Slide 15: Credit Quality

    CREDIT QUALITY Net charge-offs to Total Loans Nonperforming Assets/Assets 1.50% 4.00% 3.0% 1.00% 2.0% 050% con o.oo 0.00% 2005 2007-2009” 2011« 20132015 200s 20072009 20120132015, VNB —Peer-National —Peer-vieginia VNB —PeerNational —Peer-virginia Pear = commercial bank wth ses of $100 millon t 1 tit

  16. Slide 16: Net Income - Commercial Bank Only

    ‘T INCOME - COMMERCIAL BANK ONLY ($ Amounts Shown in Thousands) saase $2236 $2018 $2300 suga $138 $602 500 $1000 _ a so 2011 20132014 Ae VIRGINIA

  17. Slide 17: Net Income - VNB Wealth Only

    NET INCOME - VNB WEALTH ONLY ($ Amounts Shown in Thousands) soo som sae sagen = son 200 sm see sgn as on c= ene ‘51209 6) cr a ve VIRGINIA NATIONAL,

  18. Slide 18: Commercial Bank Only Non-Interest Expense & Number of Employees

    COMMERCIAL BANK ONLY NON-INTEREST EXPENSE & NUMBER OF EMPLOYEES ($ Amounts Shown in Thousands) S800 10 915909 sisees _s1s2%6 515260 Ww VIRGINIA NatiONAL

  19. Slide 19: Consolidated Highlights

    y CONSOLIDATED HIGHLIGHTS VIRGINIA NATIONAL BANKSHARES CORPORATION

  20. Slide 20: Consolidated Net Income & Efficiency Ratio

    CONSOLIDATED NET INCOME & EFFICIENCY RATIO ($ Amounts Shown in Thousands) Ae ASEINET INCOME —@eEFFICIENCY RATIO. VIRGINIA

  21. Slide 21: Consolidated Net Income, ROA & ROE

    CONSOLIDATED NET INCOME, ROA & ROE ($ Amounts Shown in Thousands) 1% se ms ne = = wn : se 7 sme : - Al Be: 7 eo eet ed ee e =i Stuer move eeRok eno ROWING) ———-ROEIOKGo Viecinua INATIONAL

  22. Slide 22: Questions?

    y QUESTIONS? Y\F VIRGINIA NATIONAL BANKSHARES CORPORATION

Virginia National Bankshares — Shareholder Meeting (May 2016) on 6ix