Virginia National Bankshares Corporation · NASDAQ:VABK
Virginia National Bankshares — Investor Presentation (December 2022)
31 slides from Virginia National Bankshares's investor presentation, Dec 19, 2022
Slide 1: Investor Presentation December 2022
Investor Presentation December 2022 Exhibit 99.1
Slide 2: Disclosures: Forward-Looking Statements
Disclosures Forward-Looking Statements 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,
Slide 3: Table of Contents
Table of Contents Introduction to Virginia National Financial Highlights Why VABK? Appendix
Slide 4: Introduction to Virginia National
Introduction to Virginia National
Slide 5: Overview of Virginia National Bankshares Corporation
Source: S&P Global Market Intelligence; Company documents Data as of or for the three months ended 9/30/22 Note: VABK plans to close two additional branches on 12/30/22 Overview of Virginia National Bankshares Corporation $1.7 billion in assets bank holding company headquartered in Charlottesville,
Slide 6: Experienced Management and Board of Directors
Virginia R. Bayes Chief Credit Officer & Executive Vice President Age: 61 Banking Experience: 35 Years Virginia National Experience: 24 Years Donna G. Shewmake General Counsel, Corporate Secretary & Executive Vice President Age: 61 Legal Experience: 37 Years Virginia National Experience: 14 Years Ta
Slide 7: Our Corporate Vision
Our Corporate Vision Customer Experience Empowered Employees Local Commitment Deliver caring and innovative financial solutions to our communities Commitment to customer journey Investment in digital strategy Recognition within markets for customer service excellence Unwavering commitment to invest
Slide 8: History of Our Growth
Source: S&P Global Market Intelligence Data as of or for the twelve months ended each year end stated; Q3 ’22 data as of or for the three months ended 9/30/22 History of Our Growth Timeline of Major Events Footprint Through Time Consistent Balance Sheet Growth 1998 Virginia National Bank opened in C
Slide 9: Overview of Virginia's Economy
Source: S&P Global Market Intelligence; CNBC; US News; Forbes; IBISWorld; Fortune Demographic data as of 6/30/22 Overview of Virginia’s Economy Virginia Market Highlights Top Counties in the US – 2022 Proj. Median HHI ($000) Major Employers Ranked the Top State for Business two years in a row CNBC 2
Slide 10: Overview of Our Markets
Source: U.S. Bureau of Labor Statistics; aggregated by S&P Global Market Intelligence Source: U.S. Bureau of Economic Analysis; data for the year 2020 as of 6/6/22 Source: U.S. Census Bureau County Business Patterns; data for the year 2020 as of 6/6/22 Population weighted between Prince William Coun
Slide 11: Dominant Market Share in Core Markets
Source: S&P Global Market Intelligence Deposit data as of 6/30 each respective year * Prior to Truist merger, Virginia National was ranked third in Charlottesville MSA by deposit market share Dominant Market Share in Core Markets Charlottesville, VA MSA * Historical Growth in Charlottesville Deposit
Slide 12: Overview of our Merger with Fauquier Bankshares Inc.
Source: Company documents, S&P Global Market Intelligence Standalone data as of the quarter prior to announcement (Q3 ’20) (1) Community banks defined as less than $15 billion in total assets Overview of our Merger with Fauquier Bankshares Inc. Pro Forma Branch Footprint Creates a Top 10 largest Vir
Slide 13: Organic Growth vs. M&A
Organic Growth vs. M&A Continue our organic growth strategy in Northern Virginia and Richmond Hired our bank president, Diane Corscadden-Weaver, who has spent her entire career as a banker in Northern Virginia Hired 4 commercial / business lenders in Richmond and Northern Virginia in 2022 Maintain d
Slide 14: Financial Highlights
Financial Highlights \Wer VIRGINIA NATIONAL BANKSHARES CORPORATION
Slide 15: Balance Sheet Trends
Balance Sheet Trends Source: S&P Global Market Intelligence Data as of or for the twelve months ended each year end stated; Q3 ’22 data as of or for the three months ended 9/30/22 Total Assets ($M) Total Gross Loans ($M) Total Deposits ($M) Total Assets ($M)
Slide 16: Core Funded Deposit Portfolio
Core Funded Deposit Portfolio Cost of Deposits Over Time Historical Deposit Composition ($M) Source: S&P Global Market Intelligence Data as of or for the twelve months ended each year end stated; quarterly data as of or for the three months ended quarter stated Deposit beta for the last cycle of ris
Slide 17: Loan Composition Highlights
Loan Composition Highlights Loan Composition (%) Source: S&P Global Market Intelligence Data as of or for the twelve months ended each year end stated; Q3 ’22 data as of or for the three months ended 9/30/22 Loans / Deposits (%) Historical Loan Composition ($M) No Shared National Credit Exposure and
Slide 18: Asset Quality
Asset Quality Cumulative losses from the Global Financial Crisis of 0.66%(1) Post-Global Financial Crisis Peak NPAs of $8.7mm, 1.98% of total assets, in 2009 Source: S&P Global Market Intelligence Data as of or for the twelve months ended each year end stated; Q3 ’22 data as of or for the three mont
Slide 19: Diversified Business Segments
Wealth & investment advisory services Revenue generated primarily from investment advisory and financial planning fees; decreasing portion from brokerage commissions Purchased this book of business in 2016 Investment management services for separately managed accounts and private investment fund Emp
Slide 20: Operating Expense
Operating Expense Noninterest Expense / Average Assets (%) Noninterest Expense ($M) Source: S&P Global Market Intelligence Annual data as of or for the twelve months ended each year end stated; Quarterly data as of or for the three months ended each quarter stated Peers include major-exchange traded
Slide 21: Profitability Trends
Profitability Trends Source: S&P Global Market Intelligence Annual data as of or for the twelve months ended each year end stated; Quarterly data as of or for the three months ended each quarter stated Refer to the Non-GAAP reconciliation in the appendix for a calculation of core metrics Core Return
Slide 22: Securities Book Overview
Securities Book Overview Investment Securities Average Balance and Yield Maturity Schedule Accumulated Other Comprehensive (Loss) Income Source: S&P Global Market Intelligence Data as of or for the twelve months ended each year end stated; Q3 ’22 data as of or for the three months ended 9/30/22 Cash
Slide 23: Interest Rate Sensitivity
Interest Rate Sensitivity Source: Company documents Data as of or for the three months ended 9/30/22 Variable vs. Fixed Rate Loans (As of 9/30/22) $493 million of total variable rate loans $273 million ARMs will reprice in the next 5 years $449 million of total fixed rate loans $217 million mature i
Slide 24: Capital Ratios
Capital Ratios Source: S&P Global Market Intelligence Data as of or for the twelve months ended each year end stated; Q3 ’22 data as of or for the three months ended 9/30/22 Tangible Common Equity / Tangible Assets (%) CET1 Ratio (%) Total Capital Ratio (%) Bank CRE / C&D Concentration Ratios
Slide 25: Why VABK?
Why VABkK? \Wer VIRGINIA NATIONAL BANKSHARES CORPORATION
Slide 26: Consistent Credit Quality and Profitability
Virginia National has been profitable since the first year post-inception Cumulative losses in Global Financial Crisis of 0.66% vs. aggregate banking industry losses of 8.56% (1) Consistent Credit Quality and Profitability… ROAA: Source: S&P Global Market Intelligence, FDIC Data as of or for the twe
Slide 27: Top-Tier Shareholder Value Growth
2006 – Q3 ’22: TBVPS CAGR of 4.00% vs. KRX Median of 3.30% vs. Peer Median of 3.66% …Has Driven Top-Tier Shareholder Value Growth Source: S&P Global Market Intelligence Data as of or for the twelve months ended each year end stated; YTD data as of or for the nine months ended 9/30/22 Peers include m
Slide 28: Key Investment Highlights
Key Investment Highlights Experienced board of directors and management team Attractive markets driving future growth Attractive core deposit franchise Conservative credit culture Scalable and efficient operating model Committed to serving and developing local economies Shareholder alignment and per
Slide 29: Appendix
Appendix \Wer VIRGINIA NATIONAL BANKSHARES CORPORATION
Slide 30: Historical Financials
Historical Financials Source: S&P Global Market Intelligence Data as of the period stated Note: Income statement and relevant per share CAGRs annualized for the quarter ended 9/30/22 to reflect equivalent time horizons relative to the year ended 12/31/16 Historical Financials (Dollars in Thousands)
Slide 31: Core Profitability Non-GAAP Reconciliation
Core Profitability Non-GAAP Reconciliation Source: S&P Global Market Intelligence Data as of the period stated 9 58 128 161 161 160 1 86 151 187 224 227 (Dollars in Thousands) As of or for the Twelve Months Ended, As of or for the Quarter Ended, 2016 2017 2018 2019 2020 2021 3/31/22 6/30/22 9/30/22
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