| Segment Reporting |
Note 11. Segment Reporting For the financial periods noted in this report, the Company has two reportable segments. 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. Asset information is not disclosed because all are held at the bank level. The two 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 noninterest 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 & Estate Services - VNB Trust & 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 that are derived from Assets Under Management. Investment management services currently are offered through in-house and third-party managers. Segment information for the three and six months ended June 30, 2026 and 2025 is shown in the following tables (dollars in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2026 |
|
Bank |
|
|
VNB Trust &
Estate
Services |
|
|
Consolidated |
|
Net interest income |
|
$ |
13,748 |
|
|
$ |
- |
|
|
$ |
13,748 |
|
Provision for credit losses |
|
|
231 |
|
|
|
- |
|
|
|
231 |
|
Net interest income after provision for credit losses |
|
$ |
13,517 |
|
|
$ |
- |
|
|
$ |
13,517 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Wealth management fees |
|
$ |
- |
|
|
$ |
214 |
|
|
$ |
214 |
|
Deposit account fees |
|
|
359 |
|
|
|
- |
|
|
|
359 |
|
Debit/credit card and ATM fees |
|
|
245 |
|
|
|
- |
|
|
|
245 |
|
Bank owned life insurance income |
|
|
332 |
|
|
|
- |
|
|
|
332 |
|
Gain on sale of limited partnership investment |
|
|
4,662 |
|
|
|
- |
|
|
|
4,662 |
|
Other |
|
|
220 |
|
|
|
- |
|
|
|
220 |
|
Total noninterest income |
|
$ |
5,818 |
|
|
$ |
214 |
|
|
$ |
6,032 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
3,840 |
|
|
$ |
187 |
|
|
$ |
4,027 |
|
Net occupancy |
|
|
693 |
|
|
|
27 |
|
|
|
720 |
|
Equipment |
|
|
212 |
|
|
|
- |
|
|
|
212 |
|
Bank franchise tax |
|
|
468 |
|
|
|
- |
|
|
|
468 |
|
Computer software |
|
|
214 |
|
|
|
- |
|
|
|
214 |
|
Data processing |
|
|
609 |
|
|
|
- |
|
|
|
609 |
|
FDIC deposit insurance assessment |
|
|
187 |
|
|
|
- |
|
|
|
187 |
|
Marketing, advertising and promotion |
|
|
254 |
|
|
|
- |
|
|
|
254 |
|
Professional fees |
|
|
333 |
|
|
|
- |
|
|
|
333 |
|
Core deposit intangible amortization |
|
|
236 |
|
|
|
- |
|
|
|
236 |
|
Other |
|
|
954 |
|
|
|
55 |
|
|
|
1,009 |
|
Total noninterest expense |
|
$ |
8,000 |
|
|
$ |
269 |
|
|
$ |
8,269 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
11,335 |
|
|
$ |
(55 |
) |
|
$ |
11,280 |
|
Provision for (benefit of) income taxes |
|
|
2,283 |
|
|
|
(11 |
) |
|
|
2,272 |
|
Net income (loss) |
|
$ |
9,052 |
|
|
$ |
(44 |
) |
|
$ |
9,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2026 |
|
Bank |
|
|
VNB Trust &
Estate
Services |
|
|
Consolidated |
|
Net interest income |
|
$ |
26,655 |
|
|
$ |
- |
|
|
$ |
26,655 |
|
Recovery of credit losses |
|
|
(105 |
) |
|
|
- |
|
|
|
(105 |
) |
Net interest income after recovery of credit losses |
|
$ |
26,760 |
|
|
$ |
- |
|
|
$ |
26,760 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Wealth management fees |
|
$ |
- |
|
|
$ |
434 |
|
|
$ |
434 |
|
Deposit account fees |
|
|
725 |
|
|
|
- |
|
|
|
725 |
|
Debit/credit card and ATM fees |
|
|
496 |
|
|
|
- |
|
|
|
496 |
|
Bank owned life insurance income |
|
|
651 |
|
|
|
- |
|
|
|
651 |
|
Gains on sale of assets, net |
|
|
5 |
|
|
|
- |
|
|
|
5 |
|
Gain on sale of limited partnership investment |
|
|
4,662 |
|
|
|
- |
|
|
|
4,662 |
|
Other |
|
|
548 |
|
|
|
- |
|
|
|
548 |
|
Total noninterest income |
|
$ |
7,087 |
|
|
$ |
434 |
|
|
$ |
7,521 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
7,649 |
|
|
$ |
377 |
|
|
$ |
8,026 |
|
Net occupancy |
|
|
1,447 |
|
|
|
52 |
|
|
|
1,499 |
|
Equipment |
|
|
398 |
|
|
|
- |
|
|
|
398 |
|
Bank franchise tax |
|
|
936 |
|
|
|
- |
|
|
|
936 |
|
Computer software |
|
|
428 |
|
|
|
- |
|
|
|
428 |
|
Data processing |
|
|
1,159 |
|
|
|
- |
|
|
|
1,159 |
|
FDIC deposit insurance assessment |
|
|
362 |
|
|
|
- |
|
|
|
362 |
|
Marketing, advertising and promotion |
|
|
521 |
|
|
|
- |
|
|
|
521 |
|
Professional fees |
|
|
681 |
|
|
|
- |
|
|
|
681 |
|
Core deposit intangible amortization |
|
|
483 |
|
|
|
- |
|
|
|
483 |
|
Other |
|
|
1,828 |
|
|
|
147 |
|
|
|
1,975 |
|
Total noninterest expense |
|
$ |
15,892 |
|
|
$ |
576 |
|
|
$ |
16,468 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
17,955 |
|
|
$ |
(142 |
) |
|
$ |
17,813 |
|
Provision for (benefit of) income taxes |
|
|
3,574 |
|
|
|
(29 |
) |
|
|
3,545 |
|
Net income (loss) |
|
$ |
14,381 |
|
|
$ |
(113 |
) |
|
$ |
14,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2025 |
|
Bank |
|
|
VNB Trust &
Estate
Services |
|
|
Consolidated |
|
Net interest income |
|
$ |
12,796 |
|
|
$ |
- |
|
|
$ |
12,796 |
|
Provision for credit losses |
|
|
3 |
|
|
|
- |
|
|
|
3 |
|
Net interest income after provision for credit losses |
|
$ |
12,793 |
|
|
$ |
- |
|
|
$ |
12,793 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Wealth management fees |
|
$ |
- |
|
|
$ |
206 |
|
|
$ |
206 |
|
Deposit account fees |
|
|
293 |
|
|
|
- |
|
|
|
293 |
|
Debit/credit card and ATM fees |
|
|
355 |
|
|
|
- |
|
|
|
355 |
|
Bank owned life insurance income |
|
|
307 |
|
|
|
- |
|
|
|
307 |
|
Other |
|
|
150 |
|
|
|
- |
|
|
|
150 |
|
Total noninterest income |
|
$ |
1,105 |
|
|
$ |
206 |
|
|
$ |
1,311 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
3,612 |
|
|
$ |
251 |
|
|
$ |
3,863 |
|
Net occupancy |
|
|
856 |
|
|
|
33 |
|
|
|
889 |
|
Equipment |
|
|
198 |
|
|
|
4 |
|
|
|
202 |
|
Bank franchise tax |
|
|
489 |
|
|
|
- |
|
|
|
489 |
|
Computer software |
|
|
266 |
|
|
|
- |
|
|
|
266 |
|
Data processing |
|
|
693 |
|
|
|
39 |
|
|
|
732 |
|
FDIC deposit insurance assessment |
|
|
145 |
|
|
|
- |
|
|
|
145 |
|
Marketing, advertising and promotion |
|
|
179 |
|
|
|
- |
|
|
|
179 |
|
Professional fees |
|
|
297 |
|
|
|
34 |
|
|
|
331 |
|
Core deposit intangible amortization |
|
|
284 |
|
|
|
- |
|
|
|
284 |
|
Other |
|
|
1,293 |
|
|
|
8 |
|
|
|
1,301 |
|
Total noninterest expense |
|
$ |
8,312 |
|
|
$ |
369 |
|
|
$ |
8,681 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
5,586 |
|
|
$ |
(163 |
) |
|
$ |
5,423 |
|
Provision for (benefit of) income taxes |
|
|
1,219 |
|
|
|
(34 |
) |
|
|
1,185 |
|
Net income (loss) |
|
$ |
4,367 |
|
|
$ |
(129 |
) |
|
$ |
4,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30, 2025 |
|
Bank |
|
|
VNB Trust &
Estate
Services |
|
|
Consolidated |
|
Net interest income |
|
$ |
25,090 |
|
|
$ |
- |
|
|
$ |
25,090 |
|
Recovery of credit losses |
|
|
(157 |
) |
|
|
- |
|
|
|
(157 |
) |
Net interest income after recovery of credit losses |
|
$ |
25,247 |
|
|
$ |
- |
|
|
$ |
25,247 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Wealth management fees |
|
$ |
- |
|
|
$ |
435 |
|
|
$ |
435 |
|
Deposit account fees |
|
|
600 |
|
|
|
- |
|
|
|
600 |
|
Debit/credit card and ATM fees |
|
|
725 |
|
|
|
- |
|
|
|
725 |
|
Bank owned life insurance income |
|
|
600 |
|
|
|
- |
|
|
|
600 |
|
Gains on sale of assets, net |
|
|
278 |
|
|
|
- |
|
|
|
278 |
|
Other |
|
|
433 |
|
|
|
- |
|
|
|
433 |
|
Total noninterest income |
|
$ |
2,636 |
|
|
$ |
435 |
|
|
$ |
3,071 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
$ |
7,309 |
|
|
$ |
490 |
|
|
$ |
7,799 |
|
Net occupancy |
|
|
1,840 |
|
|
|
65 |
|
|
|
1,905 |
|
Equipment |
|
|
381 |
|
|
|
7 |
|
|
|
388 |
|
Bank franchise tax |
|
|
828 |
|
|
|
- |
|
|
|
828 |
|
Computer software |
|
|
522 |
|
|
|
- |
|
|
|
522 |
|
Data processing |
|
|
1,388 |
|
|
|
79 |
|
|
|
1,467 |
|
FDIC deposit insurance assessment |
|
|
290 |
|
|
|
- |
|
|
|
290 |
|
Marketing, advertising and promotion |
|
|
433 |
|
|
|
- |
|
|
|
433 |
|
Professional fees |
|
|
517 |
|
|
|
70 |
|
|
|
587 |
|
Core deposit intangible amortization |
|
|
579 |
|
|
|
- |
|
|
|
579 |
|
Other |
|
|
2,693 |
|
|
|
14 |
|
|
|
2,707 |
|
Total noninterest expense |
|
$ |
16,780 |
|
|
$ |
725 |
|
|
$ |
17,505 |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
11,103 |
|
|
$ |
(290 |
) |
|
$ |
10,813 |
|
Provision for (benefit of) income taxes |
|
|
2,146 |
|
|
|
(60 |
) |
|
|
2,086 |
|
Net income (loss) |
|
$ |
8,957 |
|
|
$ |
(230 |
) |
|
$ |
8,727 |
|
|