Virginia National Bankshares CorpVABK

Virginia National Bankshares Corp Segments Disclosure

10-KFiled Mar 27, 20265 min read

Note 23 – Segment Reporting

 

Virginia National Bankshares Corporation has two reportable segments in 2025 and three in 2024. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report.

The reportable segments are:

 

•
Bank - The commercial banking segment involves making loans and generating deposits from individuals, businesses and charitable organizations. Loan fee income, service charges from deposit accounts, and other non-interest-related fees, such as fees for debit cards and ATM usage and fees for treasury management services, generate additional income for the Bank segment.
•
VNB Trust and Estate Services – VNB Trust and Estate Services offers corporate trustee services, trust and estate administration, IRA administration and custody services. Revenue for this segment is generated from administration, service and custody fees, as well as management fees which are derived from Assets Under Management. Investment management services currently are offered through in-house and third-party managers. In addition, royalty income, in the form of fixed and incentive fees, from the sale of Swift Run Capital Management, LLC in 2013 is reported as income of VNB Trust and Estate Services. More information on royalty income and the related sale can be found under Note 1 - Summary of Significant Accounting Policies.
•
Masonry Capital (Masonry) - Masonry Capital offers investment management services for separately managed accounts and a private investment fund employing a value-based, catalyst-driven investment strategy. Revenue for this segment is generated from management fees which
are derived from Assets Under Management and incentive income which is based on the investment returns generated on performance-based Assets Under Management. Note that the membership interests in this business line were sold to an officer of Masonry effective April 1, 2024. Subsequent to the date of sale, the Company will receive an annual revenue-share amount for a period of six years. No expenses will be incurred by the Company related to Masonry subsequent to April 1, 2024.

 

The Company's chief operating decision makers are the President/Chief Executive Officer and the Chief Financial Officer. The CODMs use income, operating expenses and net income to evaluate income generated from segment assets, including AUMs, in deciding whether to reinvest profits into the segments or into other parts of the Company, such as for acquisitions or to pay dividends. Net income is used to monitor budget versus actual results. The CODMs also use income, operating expenses and net income in competitive analysis by benchmarking to the Company's competitors. The competitive analysis along with monitoring of budgeted versus actual results are used in assessing performance of the segments and determining if a segment should be continued or sold.

 

Segment information for the years ended December 31, 2025 and 2024 is shown in the following tables. Note that asset information is not reported below, as the assets of VNB Trust & Estate Services are reported at the Bank level; also, assets specifically allocated to the lines of business other than the Bank are insignificant and are no longer provided to the CODM.

 

2025
(Dollars in thousands)

 

Bank

 

 

VNB Trust &
Estate
Services

 

 

Consolidated

 

Net interest income

 

$

51,509

 

 

$

-

 

 

$

51,509

 

Provision for credit losses

 

 

137

 

 

 

-

 

 

 

137

 

Net interest income after provision for credit losses

 

$

51,372

 

 

$

-

 

 

$

51,372

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

Wealth management fees

 

 

-

 

 

 

894

 

 

 

894

 

Deposit account fees

 

 

1,261

 

 

 

-

 

 

 

1,261

 

Debit/credit card and ATM fees

 

 

1,383

 

 

 

-

 

 

 

1,383

 

Bank owned life insurance income

 

 

1,242

 

 

 

-

 

 

 

1,242

 

Gains on sale of assets, net

 

 

278

 

 

 

-

 

 

 

278

 

Other

 

 

886

 

 

 

150

 

 

 

1,036

 

Total noninterest income

 

$

5,050

 

 

$

1,044

 

 

$

6,094

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

14,717

 

 

 

975

 

 

 

15,692

 

Net occupancy

 

 

3,384

 

 

 

132

 

 

 

3,516

 

Equipment

 

 

741

 

 

 

14

 

 

 

755

 

Bank franchise tax

 

 

1,706

 

 

 

-

 

 

 

1,706

 

Computer software

 

 

1,096

 

 

 

-

 

 

 

1,096

 

Data processing

 

 

1,825

 

 

 

156

 

 

 

1,981

 

FDIC deposit insurance assessment

 

 

785

 

 

 

-

 

 

 

785

 

Marketing, advertising and promotion

 

 

761

 

 

 

-

 

 

 

761

 

Professional fees

 

 

1,019

 

 

 

127

 

 

 

1,146

 

Core deposit intangible amortization

 

 

1,110

 

 

 

-

 

 

 

1,110

 

Other

 

 

4,810

 

 

 

26

 

 

 

4,836

 

Total noninterest expense

 

$

31,954

 

 

$

1,430

 

 

$

33,384

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

24,468

 

 

 

(386

)

 

 

24,082

 

Provision for (benefit of) income taxes

 

 

4,887

 

 

 

(80

)

 

 

4,821

 

Net income (loss)

 

$

19,567

 

 

$

(306

)

 

$

19,261

 

 

 

2024
(Dollars in thousands)

 

Bank

 

 

VNB Trust &
Estate
Services

 

 

Masonry
Capital

 

 

Consolidated

 

Net interest income

 

$

46,376

 

 

$

-

 

 

$

-

 

 

$

46,376

 

Recovery of credit losses

 

 

(600

)

 

 

-

 

 

 

-

 

 

 

(600

)

Net interest income after recovery of credit losses

 

$

46,976

 

 

$

-

 

 

$

-

 

 

$

46,976

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

Wealth management fees

 

 

-

 

 

 

961

 

 

 

191

 

 

 

1,152

 

Deposit account fees

 

 

1,363

 

 

 

-

 

 

 

-

 

 

 

1,363

 

Debit/credit card and ATM fees

 

 

1,914

 

 

 

-

 

 

 

-

 

 

 

1,914

 

Bank owned life insurance income

 

 

1,155

 

 

 

-

 

 

 

-

 

 

 

1,155

 

Gains on sale of assets, net

 

 

36

 

 

 

-

 

 

 

-

 

 

 

36

 

Gains on early redemption of debt

 

 

904

 

 

 

-

 

 

 

-

 

 

 

904

 

Losses on sales of AFS, net

 

 

(4

)

 

 

-

 

 

 

-

 

 

 

(4

)

Other

 

 

1,001

 

 

 

68

 

 

 

-

 

 

 

1,069

 

Total noninterest income

 

$

6,369

 

 

$

1,029

 

 

$

191

 

 

$

7,589

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

14,847

 

 

 

949

 

 

 

137

 

 

 

15,933

 

Net occupancy

 

 

3,525

 

 

 

130

 

 

 

7

 

 

 

3,662

 

Equipment

 

 

702

 

 

 

17

 

 

 

1

 

 

 

720

 

Bank franchise tax

 

 

1,452

 

 

 

-

 

 

 

-

 

 

 

1,452

 

Computer software

 

 

917

 

 

 

-

 

 

 

-

 

 

 

917

 

Data processing

 

 

2,530

 

 

 

112

 

 

 

5

 

 

 

2,647

 

FDIC deposit insurance assessment

 

 

700

 

 

 

-

 

 

 

-

 

 

 

700

 

Marketing, advertising and promotion

 

 

727

 

 

 

2

 

 

 

1

 

 

 

730

 

Professional fees

 

 

728

 

 

 

139

 

 

 

27

 

 

 

894

 

Core deposit intangible amortization

 

 

1,301

 

 

 

-

 

 

 

-

 

 

 

1,301

 

Other

 

 

4,665

 

 

 

28

 

 

 

17

 

 

 

4,710

 

Total noninterest expense

 

$

32,094

 

 

$

1,377

 

 

$

195

 

 

$

33,666

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

21,251

 

 

 

(348

)

 

 

(4

)

 

 

20,899

 

Provision for (benefit of) income taxes

 

 

4,008

 

 

 

(73

)

 

 

(2

)

 

 

3,933

 

Net income (loss)

 

$

17,243

 

 

$

(275

)

 

$

(2

)

 

$

16,966

 

Historical Timeline

Fiscal YearFiled
2025Mar 27, 2026Showing above
2024Mar 28, 2025
2023Mar 28, 2024
2022Mar 29, 2023
2021Mar 25, 2022
2020Mar 19, 2021
2019Mar 12, 2020
2018Mar 15, 2019
2017Mar 27, 2018
2016Mar 27, 2017
2015Mar 30, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsNew StandardsPay vs Performance