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FOR IMMEDIATE RELEASE VIRGINIA NATIONAL BANKSHARES CORPORATION INVESTOR RELATIONS CONTACT : Tara Y. Harrison ( 434 ) 817-8587 VIRGINIA NATIONAL BANKSHARES CORPORATION ANNOUNCES FIRST QUARTER FINANCIAL RESULTS Charlottesville , VA - April 30 , 2021 - Virginia National Bankshares Corporation ( NASDAQ : VABK ) ( the “ Company ” ) today reported net income of $ 1.5 million , or $ 0.55 per diluted share , for the quarter ended March 31 , 2021 , which is a 7.2 % increase compared to net income of $ 1.4 million , or $ 0.52 per diluted share , recognized for the quarter ended March 31 , 2020 . " We are pleased to post another strong first quarter and solid asset quality ratios , ” said Glenn W. Rust , President and Chief Executive Officer . " This was done in spite of incurring $ 278 thousand in merger - related expenses . As we move forward following our merger with Fauquier Bankshares , Inc. , this secure foundation will be key to future results . " • • • • Update on Our Response to COVID - 19 Paycheck Protection Program During 2020 , Virginia National Bank ( the " Bank ” ) assisted nonprofit organizations and local businesses by funding $ 86.9 million of Small Business Administration ( " SBA " ) Paycheck Protection Program ( " PPP " ) loans , which were designed to provide economic relief to small businesses adversely impacted by COVID - 19 . During the first quarter of 2021 , the Bank funded an additional $ 36.2 million in PPP loans . The loans carry a 1 % annual interest rate . As of March 31 , 2021 , 43 % of the total dollars of PPP loans had been forgiven by the SBA , with $ 70.2 million outstanding . The Company recognized $ 2.1 million in net PPP loan origination fees in 2020 and $ 548 thousand in the first quarter of 2021 . Loan Deferments - Also to assist our customers whose businesses were impacted by COVID - 19 , we processed a total of $ 59.0 million in loan deferments since the beginning of the pandemic , of which $ 28.7 million , or 48.6 % , were principal - only deferments ; $ 20.0 million , or 33.9 % , were principal and interest deferments ; $ 8.6 million , or 14.5 % , were government - guaranteed loans ; and $ 1.8 million , or 3.0 % , were student loans . As of March 31 , 2021 , $ 57.5 million in loan balances , or 97.4 % of the total loan deferments approved , have returned to normal payment schedules and are now current , leaving a remaining balance of deferments of $ 1.5 million . Of this remaining balance , $ 1.2 million , or 77.3 % , are 100 % government - guaranteed loans for which the deferrals were approved by the United States Department of Agriculture ; and $ 349 thousand , or 22.7 % , are student loans , which are private student loans not subject to potential federal forgiveness . All organic loans have come out of deferment and are now current . First Quarter 2021 and Selected Balance Sheet Financial Highlights Gross loans outstanding at March 31 , 2021 totaled $ 621.1 million , an increase of $ 67.1 million , or 12.1 % , compared to March 31 , 2020. The increase is primarily due to the origination of PPP loans as noted above . The balance of loans in non - accrual status decreased to $ 5 thousand as of March 31 , 2021 , from $ 273 thousand as of March 31 , 2020 .