Virginia National Bankshares Sets 8% Stock Dividend and Raises Cash Dividend to $0.38
Key Facts
Virginia National Bankshares announced on November 10 that its board had approved an 8% stock dividend the previous day, along with an increase in the quarterly cash dividend to $0.38 per share. The stock dividend will be paid on November 30 to shareholders of record on November 20, while the cash dividend will be paid on December 15 to shareholders of record at the close of business on December 1. The company said in its filing with the Securities and Exchange Commission that shareholders will receive 0.08 additional shares for each share they own on the record date. The cash dividend represents an increase of $0.02 per share from the previous quarter. The timing of the two distributions adds shares to shareholders’ holdings before the subsequent cash payment is calculated.
The company said the stock dividend will increase shares outstanding by about 430,000, from 5.4 million to 5.9 million shares. This means the higher cash dividend will be calculated on the expanded share count, according to the company’s filing, which said it would be paid after the stock dividend takes effect. The company will pay cash in lieu of fractional shares resulting from the stock dividend. It set separate record dates: November 20 for the stock dividend and December 1 for the cash dividend. This sequence allows eligible shareholders to receive the additional shares before the cash payment date in December.
According to the company, the cash dividend implies an annualized yield of about 2.85%, based on the share’s closing price on November 9, 2026. This calculation follows the increase in the quarterly payment to $0.38 per share from the previous quarter, with payment scheduled for December 15. The filing did not cite a share price target or forecast its performance, and the yield calculation was based solely on the closing price on the stated date. Chief Executive Glenn Rust said the company’s strong financial position allows it to continue its commitment to delivering value to shareholders. He added: "Our strong financial position allows us to continue our commitment to delivering value to our shareholders."
The dividend decisions follow results for the quarter ended September 30, 2026, when net income was $6.6 million, or $1.20 per diluted share. In the corresponding quarter of 2025, the company reported net income of $4.6 million and diluted earnings of $0.84 per share. Third-quarter net interest income rose to $14.5 million, up 11.2% year over year. The company attributed the increase mainly to lower interest expense related to deposit accounts and higher loan yields. This operating performance provides context for the decision to increase the cash dividend, while the chief executive attributed the ability to continue delivering value to shareholders to the strength of the company’s financial position.
Profitability metrics improved in the third quarter: net interest margin rose to 3.73% from 3.43% in the corresponding period of 2025, while the efficiency ratio fell to 50.7% from 57.9%. Return on average assets was 1.58%, compared with 1.12% in the third quarter of 2025, and return on average equity rose to 13.34% from 10.48%. Rust said net interest margin on a tax-equivalent basis widened 30 basis points year over year. He attributed the improvement to disciplined balance sheet management to support long-term shareholder value. These comparisons show improvements in margins, efficiency and returns in the period before the dividend announcement.
Deposits totaled $1.4 billion on September 30, 2026, up $14.6 million from September 30, 2025. However, they were $32.2 million below their level on December 31, 2025. The company attributed deposit fluctuations to customers’ seasonal behavior. In asset quality, nonperforming assets totaled $5.9 million on September 30, 2026, compared with $6.8 million on September 30, 2025. They had stood at $9.2 million on December 31, 2025, according to company data.