Village Bank and Trust Financial Corp. (VBFC): Business Model Canvas [Dec-2025 Updated]

You're looking at the new playbook for Village Bank and Trust Financial Corp. (VBFC) following the April 1, 2025, integration with TowneBank-a move that instantly reshaped its footprint in Richmond and Williamsburg. Honestly, the core value proposition remains hyper-local, relationship-based commercial lending, but now it's backed by a much deeper bench, evidenced by their pre-merger $756.1 million in assets and a solid 4.02% Net Interest Margin heading into the change. We need to see how they manage the operational complexity of integrating nine branches while balancing the immediate hit of $932,000 in Q4 2024 merger costs against the long-term gains from TowneBank's scale. Dive below to see the full nine-block breakdown of how Village Bank and Trust Financial Corp. (VBFC) plans to win in this new regional landscape.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Key Partnerships

You're looking at the structure right after a major change-the merger with TowneBank closed on April 1, 2025. This fundamentally reshaped VBFC's key partnerships, moving it under a larger umbrella. Here's the data on the most critical relationships as of late 2025.

TowneBank and its affiliates (e.g., Towne Financial Services Group)

The partnership is now an acquisition; Village Bank operates as a Division of TowneBank following the April 1, 2025, merger completion. The final core system conversion was scheduled for mid-June 2025. This move was intended to create diverse revenue synergies with affiliates like Towne Financial Services Group.

Partner Entity	Key Metric	Value/Date
TowneBank (Post-Merger Parent)	Total Assets (as of 12/31/2024)	$17.25 billion
VBFC Merger Effective Date	Merger Completion Date	April 1, 2025
VBFC Shareholder Approval	Approval Percentage (Dec 2024 meeting)	Over 86%
Core System Conversion Target	Scheduled Completion Date	Mid-June 2025

Federal Deposit Insurance Corporation (FDIC) for deposit insurance

Deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to the standard maximum deposit insurance amount. The Bank is subject to the Deposit Insurance Fund (DIF) assessments, calculated based on average total assets minus average tangible equity.

• Standard Maximum Deposit Insurance Amount: $250,000 per depositor.
• Assessment Base Calculation: Average total assets minus average tangible equity.
• Regulatory Oversight: FDIC and the Virginia State Corporation Commission (BFI).

Local commercial real estate developers for lending opportunities

The Bank historically focused on Commercial Real Estate Acquisition, Development, Construction and Mortgage Lending in the Central Virginia and greater Williamsburg markets. The merger is noted to enhance TowneBank's presence in the Richmond MSA, suggesting continued focus on this sector.

The Bank intends to be disciplined, focusing on real estate sectors and sponsors expected to perform better during difficult times.

Core system and technology vendors for integrated platform

The integration process following the April 2025 merger involved converting Village Bank's operations to TowneBank's existing core systems. While specific vendor names aren't detailed, the operational transition itself represents a significant, time-bound partnership milestone.

• Operational Integration Timeline: Post-merger through mid-June 2025.
• Prior Expense Mention: Administrative and operating expenses were major expenses for the Bank segment.

Small Business Administration (SBA) for loan programs

The Bank previously made loans under Small Business Administration programs. The combined entity continues to offer these programs, which require evaluation of business cash flows and guarantor support.

SBA Program Type (Post-Merger)	Key Fee/Term Detail	Amount/Guideline
SBA 7(a) Loan	Packaging Fee	$2,500.00
SBA 504 Loan	Financing Type	Long-term fixed-rate
SBA Revolving Lines of Credit	Purpose	Short-term working capital needs

You'll want Finance to track the total volume of new SBA originations in the Richmond MSA for Q2 and Q3 2025 to gauge the immediate impact of the TowneBank integration on this segment.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Key Activities

You're looking at the core engine of Village Bank and Trust Financial Corp. (VBFC) as it transitioned through its merger with TowneBank, effective April 1, 2025. The key activities revolve around maintaining high-quality local relationships while integrating into a larger structure.

Relationship-based commercial and real estate lending remains central. This activity focuses on making short-to-medium term commercial and personal loans, plus a wide range of real estate finance services, primarily in the Central Virginia and greater Williamsburg markets where the Bank has its offices. The focus on relationship lending clearly paid off in credit quality; non-performing loans as a percentage of total loans held steady at a very low 0.06% as of December 31, 2024. Furthermore, commercial loans, excluding student loans, grew by 8.71% during 2024, showing strong origination activity leading up to the merger. The legal lending limit for loans to one borrower as of December 31, 2024, was approximately $13,973,000.

Deposit gathering and core deposit growth is the necessary fuel for that lending engine. The strategy emphasizes disciplined management of the funding mix. Total deposits grew by 2.33% in 2024. A critical success factor here is the reliance on stable, low-cost funding, with non-interest bearing deposits remaining near 38% of the total deposit base at the end of 2024. This strong core deposit level helped temper the overall cost of funds, even as rates rose. For instance, the overall cost of funds increased by only 36 basis points in Q4 2024 compared to Q4 2023, despite the cost of interest-bearing liabilities rising by 51 basis points to 2.85% in the same period. This shows success in attracting and retaining non-interest bearing balances.

Residential mortgage origination via TowneBank Mortgage is framed by the operations of Village Bank Mortgage Corporation pre-merger, with residential construction-to-permanent financing offered directly to clients. The mortgage segment faced headwinds, but revenue generation was a key activity. For the full year 2024, revenue generated by the Mortgage Company (after intercompany eliminations) totaled $3.2 million, primarily from gains on loan sales and origination fees. The Bank's own revenue from interest and fees on loans and deposits was significantly higher at $43.1 million in 2024. Post-merger, this activity is integrated into the broader Towne Financial Services Group capabilities.

Operating and integrating nine branch offices is a physical activity that underpins the relationship focus. While the prompt mentions nine offices, FDIC data for Village Bank and Trust, N.A. shows 8 domestic locations as of the latest report, all within the Central Virginia and greater Williamsburg markets. A major operational activity throughout the first half of 2025 was the integration of these locations, which operated as "Village Bank, a Division of TowneBank" following the April 1, 2025, closing, with core systems conversion scheduled for June 2025. This required significant management focus on personnel transition, including the appointment of the former CEO as a Senior Executive Vice President at TowneBank.

Managing a strong Net Interest Margin (NIM) is the ultimate measure of success for these core activities. The focus on increasing earning asset yields and controlling funding costs resulted in a strong NIM performance.

Metric	Value	Period/Date
Net Interest Margin (NIM)	4.02%	Q4 2024
Yield on Earning Assets	5.74%	Q4 2024
Cost of Interest-Bearing Liabilities	2.85%	Q4 2024
Non-Interest Bearing Deposits (% of Total Deposits)	Near 38%	Q4 2024

The expansion of the NIM to 4.02% in Q4 2024 from 3.83% in Q4 2023 was driven by the yield on earning assets increasing by 51 basis points. This margin management was a clear priority, especially while navigating the merger process.

The core operational focus can be summarized by these key output metrics from the commercial banking segment:

• Commercial loan growth (ex-student) for 2024: 8.71%
• Total deposit growth for 2024: 2.33%
• Allowance for Credit Losses (ACL) to Loans ratio: 0.60%
• NPL/Loans ratio: 0.06%

Finance: draft 13-week cash view by Friday.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Key Resources

You're looking at the core assets that Village Bank and Trust Financial Corp. (VBFC), now fully integrated into TowneBank, relies on as of late 2025. These aren't just line items; they are the engine room for the combined entity's community banking strategy in the Richmond area.

The most concrete resource is the balance sheet foundation inherited from Village Bank and Trust Financial Corp. As of December 31, 2024, before the April 1, 2025, merger, Village Bank and Trust Financial Corp. held $756.1 million in total assets. That figure represents the tangible base that was brought into the larger structure.

The human element remains critical, especially for a community-focused model. You have the local, experienced banking personnel and management team who understand the specific market nuances of the Richmond Metropolitan Statistical Area and Williamsburg regions. The retention of key figures, such as James E. Hendricks, Jr., former Village CEO, now serving as Senior Executive Vice President at TowneBank, shows a commitment to preserving that relationship capital.

Technology is now a unified asset. The planned integration of core systems and operations, which was scheduled to be finalized around June 2025, means the combined entity is operating on integrated core banking and digital technology systems. This transition from separate platforms to a unified, modern core is a key resource for efficiency and delivering consistent digital service across the expanded footprint.

A significant underlying strength is the funding profile, specifically the strong non-interest bearing deposit base. This type of funding is cheaper than interest-bearing accounts, which helps manage the overall cost of funds. As of Q4 2024, this base was near 38% of total deposits. Here's a quick look at the deposit composition at that time:

Deposit Type	Amount (in thousands) as of Dec 31, 2024
Noninterest-bearing demand	$ 240,529
Interest checking	$ 72,104
Money market	$ 223,325
Savings	$ 32,442
Time deposits	Data not explicitly provided for Dec 31, 2024 in the same table structure as others, but total deposits were supported by this mix.

The final, overarching resource is the backing of TowneBank's larger balance sheet and capital support. TowneBank reported total assets of $17.25 billion as of December 31, 2024. This scale provides significant advantages in capital deployment, regulatory compliance capacity, and the ability to offer a broader suite of financial products through the Towne Financial Services Group. That scale definitely changes the risk profile for the former Village Bank operations.

The key tangible and intangible assets supporting the business model now include:

• Total assets of $756.1 million (Village Bank and Trust Financial Corp. as of Dec 31, 2024, pre-merger).
• Local, experienced banking personnel and management team.
• Integrated core banking and digital technology systems (completed post-June 2025).
• Strong non-interest bearing deposit base (near 38% of deposits in Q4 2024).
• TowneBank's larger balance sheet and capital support (TowneBank total assets of $17.25 billion as of Dec 31, 2024).

Finance: draft 13-week cash view by Friday.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Value Propositions

You're looking at the value propositions for Village Bank and Trust Financial Corp. (VBFC) as they integrate into the larger TowneBank platform following the merger effective April 1, 2025. The value proposition centers on maintaining local relationship banking while gaining the scale and product depth of the acquiring institution.

Local decision-making for commercial loans and services

The commitment to local underwriting remains a core promise. Loan decisions for commercial clients continue to be made locally, leveraging the deep understanding of the Central Virginia and greater Williamsburg markets that VBFC bankers brought to the combined entity. This local focus is explicitly stated as a key part of the TowneBank strategy, even after the system integration completed in June 2025.

Key metrics reflecting the pre-merger strength and the lending capacity now available include:

Metric	Value/Date
VBFC Legal Lending Limit (Dec 31, 2024)	$13,973,000
VBFC Allowance for Credit Losses to Total Loans (Dec 31, 2024)	0.60%
VBFC Common Equity Tier 1 Capital Ratio (Dec 31, 2024)	13.82%
VBFC Commercial Loan Growth (Twelve Months Ended Dec 31, 2024)	8.71%

Personal, customized service for business and professional clients

The emphasis is on dedicated, client-first service delivered by the bankers you already know. This personalized approach is designed to craft custom financial solutions, a hallmark of the community banking DNA that TowneBank states it embraces. The merger was intended to keep the bankers who serve you in place to deliver this service.

Expanded product suite via Towne Financial Services Group

The acquisition was explicitly positioned to create revenue synergies by cross-selling services from the Towne Financial Services Group. This means former VBFC clients now have access to a broader array of specialized services beyond traditional commercial banking, which was a primary driver for the transaction.

• Revenue synergy opportunities with Towne Financial Services Group.
• Access to a broader array of insurance, wealth management, and mortgage products.

Robust digital banking and remote deposit capture for business

Digital capabilities were enhanced through the full transition of Village Bank's online systems to TowneBank's platforms on June 9, 2025. Business clients who used Remote Deposit Capture (RDC) transitioned to the TowneBank system on that date, ensuring continued access to technology for depositing checks remotely.

The global Remote Deposit Capture market size was valued at USD 317.79 million in 2024 and was projected to reach USD 342.85 million in 2025.

Access to a larger, more diversified regional bank platform

The merger significantly increased the scale of the banking platform supporting your services. The combined entity offers greater lending power and an expanded geographical footprint across Virginia and North Carolina. The integration of Village Bank's operations into TowneBank's core systems was scheduled for completion in June 2025.

Here's a quick math on the scale change post-merger, using figures around the April 1, 2025 closing date:

Financial Metric	Village Bank (Approx. Dec 31, 2024)	TowneBank (Approx. June 30, 2025)
Total Assets	$756.1 million	$18.26 billion
Total Deposits	$637.49 million (Acquired)	$15.33 billion
Loans Held for Investment	$576.57 million (Acquired)	Increased by $0.71 billion from linked quarter
Branch Network (Post-Integration)	Nine locations (pre-merger)	58 offices

The all-cash acquisition deal valued Village Bank and Trust Financial Corp. at $120 million, with shareholders receiving $80.25 per share.

Finance: review the cross-sell metrics for Towne Financial Services Group by end of Q3 2025.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Customer Relationships

You're analyzing the relationship strategy for Village Bank and Trust Financial Corp. (VBFC) following its acquisition by TowneBank, which closed on April 1, 2025. The core relationship strategy, which emphasizes personalized service, is now being integrated into a larger structure, with core systems conversion expected in June 2025.

Dedicated relationship managers for SMBs and professionals

Village Bank and Trust Financial Corp. specializes in customized financial services for small and medium-sized businesses and professionals. The bank also specifically targets wealth-building real estate investors. To support this, industry data suggests that banks maintaining dedicated relationship managers for priority customers see a 22% rise in retention rates. The bank, pre-merger, operated with 136 total employees as of 2024, supporting its local market focus across nine branch offices in the Central Virginia region, including the Richmond and Williamsburg metropolitan areas.

High-touch, personal service model in local markets

The bank's model is built on providing personal, customized service alongside modern technology. This approach directly counters the impersonal service risks associated with large-scale transitions. To be fair, even in late 2025, industry metrics show that 71% of customers still prefer human advisors for high-value financial decisions. The bank's strategy is to maintain this local expert availability where you matter, whether for a new personal account or custom business solutions.

Automated self-service via online and mobile banking platforms

While emphasizing human touch, Village Bank and Trust Financial Corp. supports its relationships with digital channels. Industry statistics from 2025 show that 89% of US banking customers use online or mobile banking regularly. The bank requires online or mobile banking to access services like Zelle® and remote deposit capture. The banking app satisfaction score in the broader industry reached 669 out of 1000 in 2025, indicating a general improvement in user experience that VBFC must match.

Community involvement to foster local trust and loyalty

Fostering local trust is a stated commitment, outlined in a formal Community Commitment Initiative (CCI). This commitment translates into tangible local engagement. Employee volunteerism supports over 200 civic, educational, and charitable organizations annually. Furthermore, more than two dozen employees actively serve on the boards and standing committees of community groups. Industry trends suggest that banks with strong Corporate Social Responsibility (CSR) programs enjoy a 30% boost in customer loyalty.

Fee waivers for high-balance accounts (e.g., $75,000 combined balance)

The bank incentivizes deeper, multi-product relationships through fee waivers tied to combined balances. This is a clear mechanism to move customers from transactional to relationship status. Here's the quick math on the consumer side for avoiding monthly maintenance fees:

Account Tier	Monthly Fee Avoidance Balance (ADB)	Monthly Fee Avoidance Balance (Combined Relationship)	Monthly Fee Waived
Premier Checking	$10,000 Average Daily Balance	$75,000 combined average relationship balance	$25.00
Access Plus Checking	$2,500 Average Daily Balance	$25,000 combined average relationship balance	$10.00

Relationship balances for these waivers include owned consumer checking, savings, money market, and certificate of deposit accounts held directly at the same charter bank. What this estimate hides is the commercial relationship value, which is not publicly detailed in the same fee schedule format.

The bank also provides specific fee waivers for customers under 19 or 65 and older, which may include waivers for stop payment orders and treasurer's checks. For example, consumer customers receive 1 Free Money Order and 1 Free Treasurer's Check.

• Wire Transfer - Incoming: No Charge
• Wire Transfer - Outgoing - Domestic (Online): $10.00 fee (waived for some tiers)
• Insufficient Funds Fee (items $100.00 or more): $30.00 (or $5.00 for 18/65 accounts)

Finance: draft post-merger relationship retention projection by next Tuesday.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Channels

You're looking at the distribution channels for Village Bank and Trust Financial Corp. (VBFC) as of late 2025. Honestly, the landscape shifted significantly because the merger with TowneBank closed on April 1, 2025. This means the channels are now largely defined by the acquiring entity, TowneBank, which was one of the largest banks headquartered in Virginia with total assets of $17.25 billion as of December 31, 2024.

The physical footprint, which was VBFC's core local channel, is now integrated. Before the merger, Village Bank and Trust Financial Corp. operated nine branch offices serving the greater Richmond Metropolitan area and Williamsburg, Virginia. These locations now function as part of TowneBank's expanded network, which, prior to the acquisition, already included over 50 banking offices across Hampton Roads, Central Virginia, and parts of North Carolina. The core systems conversion was scheduled for mid-June 2025, so by late 2025, the customer experience is running on TowneBank's infrastructure.

The channel strategy is now about leveraging this combined scale and the specialized personnel that came over from Village Bank and Trust Financial Corp. The former President and CEO, James E. Hendricks, Jr., is now a Senior Executive Vice President at TowneBank, ensuring continuity for those relationship-focused channels. Here's a breakdown of the physical and digital touchpoints now available:

• Nine former Village Bank branch locations in Richmond/Williamsburg now serve as TowneBank access points.
• Digital banking platforms inherited the customer base from VBFC's prior technology, which included online banking.
• The merger provides access to TowneBank's family of companies for expanded financial services.
• Relationship managers, including experienced local lending officers, are now TowneBank employees.

The physical channel strength of Village Bank and Trust Financial Corp. was rooted in its local presence, which serviced a holding company asset base of $756.1 million as of December 31, 2024. Now, that local service is overlaid onto a much larger platform.

Consider the scale of the combined physical and digital reach:

Channel Component	Pre-Merger VBFC Metric (As of 12/31/2024)	Post-Merger TowneBank Context (As of 12/31/2024 Pre-Merger)
Physical Branch Offices	9 offices in Richmond/Williamsburg MSA	Over 50 offices across Virginia and North Carolina
Total Consolidated Assets	$756.1 million	$17.25 billion
Digital Access (Pre-Conversion)	Online banking, customer care team, ATMs	Integrated into TowneBank's core systems by mid-June 2025
Key Personnel Integration	Former President/CEO appointed Senior Executive Vice President	Frank E. Jenkins, Jr. appointed to TowneBank board of directors

For business clients, the channel for cash management is definitely enhanced. Remote deposit capture was a service offered by Village Bank, which specialized in customized financial services for small and medium-sized businesses. This capability is now supported by the larger operational capacity of TowneBank, which aims for diverse revenue synergies with the Towne Financial Services Group.

The private banking and lending officers represent a key high-touch channel. Village Bank provided commercial loans and personal customized service. The integration means that the former VBFC client base now has access to the full suite of TowneBank's capabilities, which is the strategic capital deployment benefit of the deal. The key is that the relationship bankers you knew are still there, just under a new operational umbrella.

The expanded service capability through TowneBank's broader network is the primary channel value proposition post-merger. You're no longer limited to the Richmond/Williamsburg footprint for certain services. The combined entity allows for the broader delivery of financial services through its affiliated businesses. This means the local relationship channel is now a gateway to a regional powerhouse.

Finance: draft the pro-forma Q4 2025 channel expense comparison (VBFC vs. TowneBank segment) by Friday.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Customer Segments

You're looking at the customer base for Village Bank and Trust Financial Corp. right before the April 1, 2025, merger with TowneBank. The core focus was always on providing personal, customized service within specific Virginia markets.

The Bank explicitly specialized in providing customized financial services to small and medium sized businesses, professionals, and individuals. Their lending footprint was tightly focused on the Central Virginia and greater Williamsburg markets where they maintained branch banking offices.

The overall scale of the lending activity, which serves these segments, gives you a baseline. As of December 31, 2024, the total loans on the books stood at $614.772 million.

Here is a look at some key financial figures related to the Bank's operations leading up to the merger:

Metric	Value	Date/Context
Total Loans	$614.772 million	As of December 31, 2024
Legal Lending Limit (One Borrower)	Approximately $13,973,000	As of December 31, 2024
Non-Interest Bearing Deposits (% of Total Deposits)	Near 38%	As of December 31, 2024
Q4 2024 Net Income	$1,486,000	Fourth Quarter 2024
Shares of Common Stock Outstanding	1,498,097	As of March 15, 2025

The customer base is served through various channels, reflecting a commitment to local accessibility, even with technology integration. You can see the delivery methods used to service the deposit clients:

• Full-service branches
• Drive-up windows
• ATMs
• Customer care team
• Online technology

The Bank's revenue streams were derived from interest and fees connected to loans, deposits, and mortgage services, which directly tie back to the needs of these local customer groups. The primary lending services included short-to-medium term commercial and personal loans, plus a wide range of real estate finance services.

The focus on the Small and medium-sized businesses (SMBs) in the Richmond MSA and Professionals and commercial real estate developers is supported by the Commercial Business Lending focus within the Traditional Commercial Banking segment. For Residential homebuyers in the Richmond/Williamsburg area, the Bank offered residential construction-to-permanent financing through its Mortgage Company.

The structure of the business, split into Traditional Commercial banking and Mortgage banking segments, shows how the Bank organized to serve these distinct needs. The Commercial Banking Segment provided the mortgage banking segment with short-term funds via a warehouse line of credit.

The Affluent individuals and high net-worth clients, along with Local non-profit organizations, would primarily be serviced through the comprehensive deposit services, which included checking, savings, money market accounts, and various time deposits like Certificates of Deposit and IRAs.

Finance: draft the pro-forma deposit mix for the combined entity as of Q3 2025 by Friday.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Cost Structure

You're looking at the costs that drive the engine for Village Bank and Trust Financial Corp. (VBFC) right as it integrates with TowneBank following the April 2025 closing. Honestly, for a bank, the cost structure is dominated by what it pays for money and what it pays its people. We'll map out what we know from the latest available filings before the full integration.

Interest expense on deposits and borrowings is a primary cost driver, as noted in their reporting. The pressure on funding costs was significant heading into 2025. For the twelve months ended December 31, 2024, the overall cost of funds increased by 67 basis points, reaching 1.86%, up from 1.19% for the prior twelve-month period.

Looking specifically at the fourth quarter of 2024 compared to 2023:

• The rate paid on interest-bearing liabilities rose by 51 basis points to 2.85% for Q4 2024.
• The rate on money market deposit accounts increased 49 basis points to 3.20%.
• The rate paid on time deposits saw a larger jump, increasing 109 basis points to 3.52%.

Personnel and compensation costs for local bankers, along with administrative and operating expenses, are cited as the major expenses, second only to interest paid on liabilities. Specific dollar amounts for these categories for the 2025 fiscal year aren't public yet, but the structure relies heavily on local expertise.

The cost structure also includes expenses related to the acquisition by TowneBank. You are required to account for the Noninterest expense, including merger-related costs of $932,000 (Q4 2024), which is a specific, one-time hit related to the transaction announced in late 2024.

The physical footprint contributes to operating costs. Village Bank and Trust Financial Corp. serviced its market through nine full-service branch banking offices in Central Virginia and the Williamsburg area as of early 2025.

Here's a summary of the quantifiable cost structure elements we have:

Cost Component Detail	Metric/Period	Value
Merger-Related Costs (Noninterest Expense)	Q4 2024 Amount	$932,000
Branch Locations Maintained	As of Early 2025	9
Cost of Funds (12 Months Ended Dec 31, 2024)	Rate	1.86%
Cost of Interest-Bearing Liabilities (Q4 2024)	Rate	2.85%

The Mortgage Company segment also has its own major expenses, which consist of personnel, occupancy, and data processing costs. To be fair, understanding the full 2025 cost structure means waiting for the post-integration 10-K, as the system conversion was scheduled for mid-June 2025.

Finance: draft 13-week cash view incorporating estimated Q1/Q2 2025 run-rate expenses by Friday.

Village Bank and Trust Financial Corp. (VBFC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Village Bank and Trust Financial Corp. brings in money, based on their latest reported figures from the end of 2024.

The primary engine is Net Interest Income (NII), which comes from the spread between what Village Bank and Trust Financial Corp. earns on its assets, like commercial and real estate loans, and what it pays out on liabilities, like deposits. For the twelve months ended December 31, 2024, the Net Interest Margin (NIM) was reported at 3.86%. This compares to 4.02% for the fourth quarter of 2024 alone.

Non-interest income is another key piece. For the fourth quarter of 2024, the Commercial Banking Segment specifically posted noninterest income of $967,000.

Service charges and fees on deposit accounts are a component of that non-interest income. For instance, in the fourth quarter of 2023, noninterest income saw an increase driven by higher deposit fee income as a result of increased transactions.

The Mortgage Company also contributes directly to revenue, which includes gains from the sale of residential mortgage loans. For the full year 2024, the Mortgage Company generated $3.2 million in revenue.

Here's a breakdown of the reported segment revenues for the full year 2024:

Revenue Source Segment	2024 Revenue Amount
Bank (Traditional Commercial Banking)	$43.1 million
Mortgage Company	$3.2 million

You can see the revenue streams are heavily weighted toward the core banking operations, which is typical for this structure. The total revenue for the Bank segment, after intercompany eliminations, was $43.1 million in 2024.

The components making up the non-interest income for the Commercial Banking Segment include:

• Service charges and fees on deposit accounts.
• Other miscellaneous fees related to commercial banking activities.

The total noninterest income for the Commercial Banking Segment for the twelve months ended December 31, 2024, was $3,529,000.