Profile: Virginia National Bank (VABK.PK)

Virginia National Bank (the Bank) is engaged in commercial and retail banking business. The Bank offers a range of banking and related financial services, including checking accounts, negotiable order of withdrawal (NOW) accounts, money market deposit accounts, certificates of deposit, individual retirement accounts and other depository services. The Bank operates in two segments: the commercial bank and VNBTrust, National Association (VNBTrust). Commercial banking involves making loans and generating deposits from individuals and businesses. VNBTrust services include investment management, trust account administration and estate planning. The Bank also offers short-to-medium term commercial, real estate and consumer loans. Other services offered by Virginia National Bank include automated teller machines (ATMs), Internet banking, safe deposit boxes, travelers’ checks, cash management services and direct deposit of payroll and federal recurring payments. In addition, the Bank is associated with the STAR and Cirrus networks, giving customers access to cash at ATMs all across America and internationally.

As of March 12, 2012, the Company operated eight offices located in Central Virginia. Four of the offices are located in Charlottesville/Albemarle County, two are located in Orange, Virginia, and two are located in Winchester, Virginia. The Bank offers credit facilities, both secured and occasionally unsecured, to business customers. These facilities include term loans, single payment loans, revolving credit facilities and other lines of credit. These loans may be for temporary or seasonal working capital needs, or to provide funding for the acquisition of fixed assets or real estate. In addition, the Bank offers commercial real estate construction loans for both investment properties and owner-occupants of business facilities. Installment loans, consumer purpose loans, revolving lines of credit and home equity lines of credit are also offered by the Bank.

The Bank has designated its unrestricted securities portfolio into held to maturity and available for sale. The Bank offers three types of loans, which includes mortgage loans, commercial loans and consumer loans. Depository accounts represent the Bank’s primary source of funds. The Company’s deposit accounts include demand deposits, interest-bearing checking accounts, money market deposit accounts and time deposits.