First National Corporation Reports Record Fourth Quarter and Annual 2025 Earnings

Rhea-AI Summary

First National Corporation (NASDAQ: FXNC) reported record fourth quarter and full-year 2025 results. Consolidated net income was $5.5 million in Q4 2025 with basic and diluted EPS of $0.61. For the year, consolidated earnings were $17.7 million and basic EPS was $1.97 (adjusted operating earnings $19.1 million, adjusted basic EPS $2.13).

Key metrics: Q4 net interest margin (FTE) 3.95%, loan growth of $16.3 million in Q4, nonperforming assets at 0.32% of loans, total assets $2.039 billion, total deposits $1.800 billion, and tangible book value per share $18.83. Quarterly dividend rose to $0.17.

Positive

• Record full-year consolidated earnings of $17.7 million
• Adjusted operating earnings of $19.1 million and adjusted basic EPS $2.13
• Net interest margin (FTE) improved to 3.95% in Q4 2025
• Tangible book value per share grew to $18.83 (up vs prior periods)
• Quarterly loan growth of $16.3 million in Q4 2025

Negative

• Total deposits declined 0.6% quarter-over-quarter to $1.800 billion
• Net charge-offs of $651 thousand in Q4 2025
• Allowance for credit losses decreased to $14.7 million from $16.4 million year-over-year
• Net unrealized losses on AFS securities of $14.8 million at Dec 31, 2025

Key Figures

Q4 2025 net income: $5.5 million Q4 2025 EPS: $0.61 2025 EPS: $1.97 +5 more

8 metrics

Q4 2025 net income $5.5 million Consolidated net income for fourth quarter 2025

Q4 2025 EPS $0.61 Basic and diluted EPS, fourth quarter 2025

2025 EPS $1.97 Basic EPS for year ended Dec 31, 2025

Adj 2025 EPS $2.13 Adjusted basic EPS for year ended Dec 31, 2025

Q4 2025 NIM (FTE) 3.95% Net interest margin (FTE) for fourth quarter 2025

Loan growth Q4 $16.3 million Quarterly loan growth, 4.6% annualized rate

NPAs ratio 0.32% Non-performing assets as % of total loans, Dec 31, 2025

Total assets $2.039 billion Balance sheet total assets at Dec 31, 2025

Market Reality Check

Price: $25.76 Vol: Volume 13,922 is 0.55x th...

low vol

$25.76 Last Close

Volume Volume 13,922 is 0.55x the 20-day average of 25,384, indicating subdued trading ahead of the release. low

Technical Shares at 25.53 are trading above the 200-day MA of 22.31, and about 7.32% below the 52-week high of 27.55.

Peers on Argus

FXNC was down 0.82% pre-news while close peers showed a mixed tape: ESSA -1.2%, ...

FXNC was down 0.82% pre-news while close peers showed a mixed tape: ESSA -1.2%, BPRN -4.53% versus OPOF +3.43%, FRAF +1.67%, VABK +1.36%. This points to stock-specific factors rather than a unified regional bank move.

Historical Context

3 past events · Latest: Nov 13 (Positive)

Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Nov 13	Dividend increase	Positive	+1.6%	Announced 9.7% increase in quarterly cash dividend to $0.17 per share.
Oct 30	Earnings report	Positive	+0.0%	Reported record Q3 2025 earnings with higher EPS, loans, and deposits.
Jul 30	Earnings report	Positive	+0.2%	Posted record Q2 2025 earnings with strong NIM and loan growth.

Pattern Detected

Recent dividend and earnings announcements have coincided with modest positive price reactions, suggesting the stock has historically responded constructively to fundamental updates.

Recent Company History

Over the past year, FXNC has repeatedly reported record results, with strong quarters in Q2 2025 and Q3 2025 tied to the Touchstone acquisition, and a dividend increase announced on Nov 13, 2025. Those events produced small but positive one-day moves. Today’s record fourth-quarter and full-year 2025 earnings continue that trajectory of improving profitability, asset growth, and capital strength, extending the narrative seen in prior quarterly releases and the dividend hike.

Market Pulse Summary

This announcement highlights record fourth-quarter and full-year 2025 earnings, supported by a 3.95%...

Analysis

This announcement highlights record fourth-quarter and full-year 2025 earnings, supported by a 3.95% net interest margin, loan growth of $16.3 million, and improved asset quality with NPAs at 0.32% of total loans. Capital ratios and tangible book value per share strengthened, while dividends were increased. In assessing this update, investors may track future loan growth, credit loss provisions, and integration progress from the Touchstone acquisition as key indicators of ongoing performance.

Key Terms

net interest margin, non-performing assets, allowance for credit losses, available for sale, +4 more

8 terms

net interest margin financial

"Net interest margin, fully tax equivalent ("FTE") (1) of 3.95%, up from 3.84%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-performing assets financial

"Asset quality improved with non-performing assets ("NPAs") declining to 0.32% of total loans"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

allowance for credit losses financial

"The allowance for credit losses on loans totaled $14.7 million, or 1.02% of total loans"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

available for sale financial

"additional investment in securities available for sale. On December 31, 2025, total investments"

Available for sale describes investments, usually bonds or stocks, that a company intends to keep but may sell before they mature; they are reported at current market value on the balance sheet while any unrealized profit or loss is kept separate from regular earnings. For investors, this matters because changes in market value affect a company’s reported net worth and can become realized gains or losses when sold, similar to how the changing resale value of a collectible affects your net wealth even before you sell it.

held to maturity financial

"Held to maturity securities are carried at amortized cost and totaled $103.0 million"

A "held to maturity" classification applies to debt securities a company intends and is able to keep until they are fully repaid. Think of it like putting a bond in a locked safe until the issuer returns your money; the company does not mark the holding to daily market swings, so reported income and balance-sheet values are steadier. For investors, it signals predictable future interest receipts and reduced volatility in reported results, but also less liquidity if cash is needed before maturity.

tier 1 risk-based capital ratio regulatory

"Tier 1 risk-based capital ratio | | 12.93 | % | | 12.83 | %"

A Tier 1 risk-based capital ratio measures a bank’s core financial cushion—its highest-quality capital such as common equity—relative to the size and risk of its assets, where riskier loans count for more. Think of it as the safety margin a bank keeps against losses compared to the amount and riskiness of what it owns; investors use it to judge a bank’s solvency, regulatory strength, and ability to withstand shocks or sustain payouts.

common equity tier 1 capital ratio regulatory

"Common equity Tier 1 capital ratio | | 12.30 | % | | 12.20 | %"

A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.

leverage ratio financial

"Leverage ratio | | 9.29 | % | | 9.24 | % | | 8.59 | %"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

AI-generated analysis. Not financial advice.

STRASBURG, Va., Jan. 29, 2026 (GLOBE NEWSWIRE) -- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of First Bank (the “Bank”), reported consolidated net income of $5.5 million and basic and diluted earnings per common share of $0.61 for the fourth quarter of 2025.  For the year ended December 31, 2025, the Company reported consolidated earnings of $17.7 million and basic and diluted earnings per common share of $1.97 and $1.96, respectively, and adjusted operating earnings⁽¹⁾ of $19.1 million and adjusted basic and diluted earnings per common share⁽¹⁾ of $2.13 and $2.12, respectively, for the year ended December 31, 2025.

“We are pleased to report a record fourth quarter of financial performance, as well as a record year. We spent 2025 integrating the Touchstone family and operations into our company, with a major focus on customer retention. The addition of experienced bankers in our Richmond, Roanoke, and Staunton markets helped support our net loan growth in the fourth quarter. We delivered a strong return to our shareholders as we increased our quarterly dividend in the fourth quarter 9.7% and grew our per share tangible book value 14% - all of which helped drive a stock price increase of 9.7% for the year. We are extremely pleased to deliver a double-digit return for our shareholders in 2025,” said Scott C. Harvard, President and Chief Executive Officer of First National.

FINANCIAL HIGHLIGHTS FOR FOURTH QUARTER 2025

	●	Basic earnings per share of $0.61 per share, compared to $0.62 in the previous period, up from ($0.10) one year prior
	●	Return on average assets of 1.06% compared to 1.09% in the previous period and (0.18%) one year prior
	●	Return on average equity of 11.86% compared to 12.43% in the previous period and (2.35%) one year prior
	●	Net interest margin, fully tax equivalent ("FTE")(1) of 3.95%, up from 3.84% in the previous period and 3.83% one year prior
	●	Asset quality improved with non-performing assets ("NPAs") declining to 0.32% of total loans
	●	Loan growth of $16.3 million for the quarter, a 4.6% annualized growth rate
	●	Noninterest bearing deposits of $509.9 million, or 28% of deposits, contributing to our low funding cost

FINANCIAL HIGHLIGHTS FOR 2025

	●	Basic earnings per share of $1.97 compared to $1.00 one year prior
	●	Return on average assets of 0.87% compared to 0.44% one year prior
	●	Return on average equity of 10.10% compared to 5.33% one year prior
	●	Net interest margin (FTE)(1) of 3.88% compared to 3.51% one year prior

NET INTEREST INCOME

For the fourth quarter of 2025, the Company’s net interest margin (FTE)⁽¹⁾ was 3.95%, compared to 3.84% for the third quarter of 2025 and 3.83% in the fourth quarter of 2024. The Company’s net interest margin (FTE)⁽¹⁾ for the fourth quarter of 2025 includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting was $201 thousand, a 4-basis point incremental increase to the net interest margin for the fourth quarter ended December 31, 2025. Net accretion income related to acquisition accounting was $1.1 million for the year ended December 31, 2025, a 6-basis point incremental increase to the net interest margin.

The quarterly impact of acquisition accretion and amortization in 2025 is reflected in the following table (dollars in thousands):

	Loans				Deposits				Borrowings				Total
For the quarter ended March 31, 2025	$	(194	)		$	443			$	(285	)		$	(36	)
For the quarter ended June 30, 2025		930				163				(186	)			907
For the quarter ended September 30, 2025		81				55				(93	)			43
For the quarter ended December 31, 2025		283				(10	)			(72	)			201
	$	1,100			$	651			$	(636	)		$	1,115

Earning asset yields for the fourth quarter of 2025 decreased 2-basis points to 5.24% compared to the third quarter of 2025. Loan accretion increased in the fourth quarter compared to the prior quarter. For the fourth quarter of 2025, net interest income was $19.0 million, an increase of $657 thousand from $18.3 million in the third quarter of 2025 due to a slight increase in net accretion income combined with a decrease in interest expense on average interest-bearing liabilities.

ALLOWANCE AND PROVISION FOR CREDIT LOSSES

The Company recorded a $951 thousand provision for credit losses in the fourth quarter of 2025, compared to $193 thousand for the third quarter of 2025. The fourth quarter provision was comprised of a $923 thousand provision for credit losses on loans and a $28 thousand provision for credit losses on unfunded commitments.  Net charge-offs totaled $651 thousand in the fourth quarter of 2025, compared to net charge-offs of $939 thousand in the third quarter of 2025 and net charge-offs of $1.3 million in the fourth quarter of 2024.

The allowance for credit losses on loans totaled $14.7 million, or 1.02% of total loans on December 31, 2025, compared to $14.4 million, or 1.01% of total loans on September 30, 2025, and $16.4 million, or 1.12% of total loans on December 31, 2024. The increase in allowance for credit losses from the prior period is primarily due to increased pooled loan balances as well as three new loans with specific reserves on individually analyzed loans added in the fourth quarter. The decrease in allowance for credit losses from the fourth quarter of 2024 was driven by lower individually analyzed loans balances following charge-offs recorded in 2025. The allowance for credit losses to NPA coverage increased to 316% on December 31, 2025, compared to 253% on September 30, 2025, and to 231% on December 31, 2024. 

NONINTEREST INCOME AND EXPENSE

Non-interest income increased $518 thousand to $5.0 million for the fourth quarter of 2025 from $4.5 million in the prior quarter.  Non-interest income increased 11.5% in the fourth quarter primarily due to increases in other income from the $895 thousand recovery from an acquired loan that was charged off prior to the acquisition of Touchstone. This increase in other income was offset by decreases in ATM and check card income, decreases in fees for other customer services, and no bargain purchase gain recognized compared to the prior quarter. 

Adjusted noninterest income⁽¹⁾, which excludes the bargain purchase gain ($304 thousand in the third quarter of 2025) and loan recovery ($895 thousand in the fourth quarter of 2025), decreased $73 thousand to $4.1 million for the fourth quarter of 2025 from $4.2 million in the prior quarter, due to nominal decreases in ATM and check card income and fees for other customer services.

Noninterest expense increased $343 thousand to $16.1 million for the fourth quarter of 2025 from $15.8 million in the prior quarter. Merger expense increased due to the one-time early lease termination for the now closed Raleigh loan production office acquired in the Touchstone merger. The Company is currently reviewing our total office footprint with plans to further improve operating leverage.

Adjusted operating noninterest expense⁽¹⁾, which excludes the Raleigh LPO lease termination ($127 thousand in the fourth quarter of 2025) and amortization of intangible assets ($442 thousand in the fourth quarter of 2025 and $442 thousand in the third quarter of 2025), increased $216 thousand to $15.6 million for the fourth quarter of 2025 from $15.3 million in the prior quarter, due to increases in equipment and other operating expense.

INCOME TAXES

Income tax expense was $1.39 million for the fourth quarter of 2025, compared to $1.27 million for the third quarter of 2025.  The effective tax rate of 20.2% for the fourth quarter of 2025 increased from the 18.6% in the third quarter of 2025.  This increased effective tax rate in the fourth quarter was driven by additional income tax expense of $78 thousand related to an adjustment to deferred tax assets related to the Touchstone acquisition partially offset by the final state tax refund for Touchstone.  Tax expense and the related effective tax rate for the third quarter of 2025 were reduced due to the $304 thousand adjustment to the bargain purchase gain related to the final Touchstone federal tax filing.

BALANCE SHEET

On December 31, 2025, total assets were $2.039 billion, an increase of $7.9 million or 0.4% from September 30, 2025, and an increase of $28.4 million or 1.4% from December 31, 2024. Total assets were consistent with the prior quarter, and the increase from the prior year was driven by additional investment in securities available for sale. 

On December 31, 2025, loans held for investment ("LHFI") net of allowance totaled $1.435 billion, an increase of $16.3 million or 1.1% from $1.419 billion on September 30, 2025, and a decrease of $15.6 million or 1.1% from December 31, 2024. Loans grew by $17 million during the fourth quarter, the first quarter of net loan growth in 2025. 

On December 31, 2025, total investments were $326.0 million, an increase of $20.5 million or 6.7% from September 30, 2025, and an increase of $48.7 million or 17.6% from December 31, 2024. Available for sale ("AFS") securities totaled $217.5 million on December 31, 2025, and $196.5 million on September 30, 2025, and $163.8 million on December 31, 2024. The increases compared to the prior quarters were driven by security purchases exceeding portfolio cashflows. Total net unrealized losses on the AFS securities portfolio were $14.8 million on December 31, 2025, compared to $15.4 million on September 30, 2025, and $22.1 million on December 31, 2024. Held to maturity securities are carried at amortized cost and totaled $103.0 million on December 31, 2025, $104.6 million on September 30, 2025, and $109.8 million on December 31, 2024.

On December 31, 2025, total deposits were $1.800 billion, a decrease of $10.0 million or 0.6% from the prior quarter, and a decrease of $4.2 million or 0.2% from December 31, 2024. Overall, the deposit balances were consistent with the prior quarter and the prior year. There were $25.0 million in other borrowings with the Federal Home Loan Bank on December 31, 2025, compared to no other borrowings on September 30, 2025, or December 31, 2024.

LIQUIDITY

Liquidity sources available to the Bank, including interest-bearing deposits in banks, unpledged securities available for sale, at fair value, and available lines of credit totaled $743.0 million on December 31, 2025, $676.1 million on September 30, 2025, and $770.0 million on December 31, 2024.

The Bank maintains liquidity to fund loan growth and to meet potential demand from deposit customers, including potential volatile deposits. The estimated amount of uninsured customer deposits totaled $538.2 million on December 31, 2025, $555.0 million on September 30, 2025, and $537.0 million on December 31, 2024. Excluding municipal deposits that have collateral pledged, the estimated amount of uninsured customer deposits totaled $448.8 million on December 31, 2025, $473.4 million on September 30, 2025, and $445.5 million on December 31, 2024.

ASSET QUALITY

Overall NPAs improved over the previous period and previous year as previously reserved loans were charged off in the fourth quarter of 2025.  Management classifies NPAs as non-accrual loans and other real estate owned ("OREO"). NPAs as a percentage of total loans declined to 0.32% on December 31, 2025, down from 0.40% on September 30, 2025, and down from 0.48% on December 31, 2024.  NPAs decreased by $1.0 million to $4.7 million on December 31, 2025, compared to $5.7 million on September 30, 2025, and $7.1 million on December 31, 2024.

There were no loans past due over 90 days or more and still accruing interest on December 31, 2025, compared to $388 thousand on September 30, 2025, and $365 thousand on December 31, 2024. Loans past-due 30-89 days and still accruing interest increased to $3.8 million, or 0.26% of total loans on December 31, 2025, compared to $3.6 million, or 0.25% of total loans on September 30, 2025, and $3.1 million, or 0.21%, of total loans on December 31, 2024.  The health care provider portfolio continues to decline with $10.0 million in loan balances and $4.1 million in unamortized premiums, with $2.1 million on non-accrual which include specific reserves of $1.6 million. 

CAPITAL

During the fourth quarter of 2025, the Company declared and paid cash dividends of $0.17 per common share, compared to $0.155 in the third quarter of 2025 and $0.155 in the fourth quarter of 2024. Tangible book value per share⁽¹⁾ grew to $18.83 at December 31, 2025, from $18.26 per share at September 30, 2025, and $16.55 at December 31, 2024 primarily due to earnings and improvements in unrealized losses on available for sale securities, less dividends and corporate expenses paid.

The following table provides capital ratios and values for the periods ended:

First National Corporation (2)	Dec 31, 2025				Sep 30, 2025			Dec 31, 2024
Total risk-based capital ratio		14.53	%		15.15	%		14.57	%
Tier 1 risk-based capital ratio		12.93	%		12.83	%		11.98	%
Common equity Tier 1 capital ratio		12.30	%		12.20	%		11.35	%
Leverage ratio		9.29	%		9.24	%		8.59	%
Tangible common equity to tangible assets (1)		8.40	%		8.17	%		7.46	%
Tangible book value per share (1)	$	18.83		$	18.26		$	16.55
First Bank	Dec 31, 2025			Sep 30, 2025			Dec 31, 2024
Total risk-based capital ratio (3)		13.64	%		13.40	%		12.34	%
Tier 1 risk-based capital ratio (3)		12.59	%		12.36	%		11.19	%
Common equity Tier 1 capital ratio (3)		12.59	%		12.36	%		11.19	%
Leverage ratio (3)		9.13	%		8.88	%		7.95	%
Tangible common equity to tangible assets (1)		8.51	%		8.18	%		7.14	%

During the fourth quarter of 2025, the Company redeemed $13 million in subordinated debt, at par, including redemptions on October 1, 2025 ($5 million) and November 15, 2025 ($8 million). There was no gain or loss recognized on these redemptions. These capital redemptions had minimal impact on the total risk-based capital ratio and should position the Company for improved profitability in future periods.

ABOUT FIRST NATIONAL CORPORATION

First National Corporation (NASDAQ: FXNC) is the parent company and bank holding company of First Bank, a community bank that first opened for business in 1907 in Strasburg, Virginia. The Bank offers loan and deposit products and services through its consumer and business mobile banking platforms, a network of ATMs located throughout its market area, two loan production offices, a customer service center in a retirement community, and thirty-three bank branch office locations located throughout the Shenandoah Valley, the Roanoke Valley, the Richmond MSA, the south-central regions of Virginia, and in northern North Carolina. In addition to providing traditional banking services, the Bank operates a wealth management division under the name First Bank Wealth Management. First Bank also owns First Bank Financial Services, Inc., which owns an interest in an entity that provides title insurance services.

NON-GAAP FINANCIAL MEASURES

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include adjusted operating net income, adjusted operating non-interest expense, adjusted operating non-interest income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision pre-tax earnings, adjusted pre-provision pre-tax earnings, fully taxable equivalent interest income, the net interest margin, the efficiency ratio, tangible book value per share, and tangible common equity to tangible assets.

The Company believes certain non-GAAP financial measures enhance the understanding of its business and performance. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is included at the end of this release.

FORWARD-LOOKING STATEMENTS

Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts, and other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” "will," "continue," and “projects,” as well as similar expression. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties. For details on factors that could affect expectations, future events, or results, see the risk factors and other cautionary language included in First National’s Annual Report on Form 10-K for the year ended December 31, 2024, most recent Quarterly Report on Form 10-Q and other filings with the Securities and Exchange Commission (the “SEC”).

CONTACTS
Scott C. Harvard		Brad E. Schwartz
President and CEO		Executive Vice President and CFO
(540) 545-7695		(540) 465-6130
sharvard@fbvirginia.com		bschwartz@fbvirginia.com

FIRST NATIONAL CORPORATION Performance Summary (in thousands) (unaudited)
	For the Three Months Ended												For the Year Ended
	Dec 31, 2025				Sep 30, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Income Statement
Interest and dividend income
Interest and fees on loans	$	21,513			$	21,430			$	21,516			$	85,174			$	63,483
Interest on deposits in banks		1,618				1,733				2,085				6,913				6,490
Interest on federal funds sold		1				1				189				41				189
Taxable interest on securities		1,734				1,562				1,284				5,923				4,733
Tax-exempt interest on securities		292				296				308				1,186				1,222
Dividends		66				65				104				260				202
Total interest and dividend income	$	25,224			$	25,087			$	25,486			$	99,497			$	76,319
Interest expense
Interest on deposits	$	5,929			$	6,246			$	6,415			$	24,292			$	20,964
Interest on federal funds purchased		—				—				1				—				1
Interest on subordinated debt		273				479				396				1,687				603
Interest on junior subordinated debt		67				67				68				266				270
Interest on other borrowings		3				—				247				6				2,029
Total interest expense	$	6,272			$	6,792			$	7,127			$	26,251			$	23,867
Net interest income	$	18,952			$	18,295			$	18,359			$	73,246			$	52,452
Provision for credit losses		951				193				4,750				2,887				7,850
Net interest income after provision for credit losses	$	18,001			$	18,102			$	13,609			$	70,359			$	44,602
Noninterest income
Service charges on deposit accounts	$	937			$	985			$	1,181			$	3,955			$	3,122
ATM and check card fees		1,124				1,336				792				4,584				3,305
Wealth management fees		936				910				903				3,611				3,617
Fees for other customer services		292				407				317				1,187				966
Brokered mortgage fees		190				166				90				649				252
Income from bank owned life insurance		383				284				264				1,144				755
Net (losses) on securities available for sale		—				—				(154	)			—				(115	)
Net gains on sale of loans held for sale		3				5				—				8				—
Bargain purchase gain		—				304				2,920				304				2,920
Net gain on subordinated debt payoff		—				—				—				80				—
Other operating income		1,153				103				131				1,496				1,558
Total noninterest income	$	5,018			$	4,500			$	6,444			$	17,018			$	16,380
Noninterest expense
Salaries and employee benefits	$	8,454			$	8,487			$	7,503			$	33,663			$	25,134
Occupancy		881				1,025				913				3,919				2,573
Equipment		1,282				1,056				1,123				4,420				3,131
Marketing		350				324				331				1,180				1,037
Supplies		207				158				186				780				489
Legal and professional fees		667				660				520				2,442				1,993
ATM and check card expense		570				569				385				2,115				1,508
FDIC assessment		258				305				285				1,292				860
Bank franchise tax		349				350				262				1,364				1,047
Data processing expense		501				495				684				2,262				1,404
Amortization expense		442				442				448				1,767				461
Other real estate owned expense (income), net		—				—				5				(7	)			15
Net (gain) loss on disposal of premises and equipment		—				(7	)			—				—				47
Merger expense		127				—				7,316				2,159				8,107
Other operating expense		2,037				1,918				1,968				8,077				5,128
Total noninterest expense	$	16,125			$	15,782			$	21,929			$	65,433			$	52,934
Income (loss) before income taxes	$	6,894			$	6,820			$	(1,876	)		$	21,944			$	8,048
Income tax expense (benefit)		1,390				1,270				(943	)			4,241				1,082
Net income (loss)	$	5,504			$	5,550			$	(933	)		$	17,703			$	6,966

FIRST NATIONAL CORPORATION Performance Summary (in thousands, except share and per share data) (unaudited)
	For the Three Months Ended												For the Year Ended
	Dec 31, 2025				Sep 30, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Common Share and Per Common Share Data
Earnings (loss) per common share, basic	$	0.61			$	0.62			$	(0.10	)		$	1.97			$	1.00
Adjusted earnings per common share, basic (1)	$	0.62			$	0.58			$	0.66			$	2.13			$	2.10
Weighted average shares, basic		9,011,378				8,999,153				8,971,649				8,994,410				6,955,592
Earnings (loss) per common share, diluted	$	0.61			$	0.62			$	(0.10	)		$	1.96			$	1.00
Adjusted earnings per common share, diluted (1)	$	0.62			$	0.58			$	0.66			$	2.12			$	2.10
Weighted average shares, diluted		9,030,437				9,023,185				8,994,315				9,015,480				6,971,089
Shares outstanding at period end		9,025,395				9,009,209				8,974,102				9,025,395				8,974,102
Tangible book value per share at period end (1)	$	18.83			$	18.26			$	16.55			$	18.83			$	16.55
Market price per share at period end	$	25.24			$	22.68			$	23.01			$	25.24			$	23.01
Cash dividends declared	$	0.170			$	0.155			$	0.155			$	0.635			$	0.605
Key Performance Ratios
Return on average assets (4)		1.06	%			1.09	%			(0.18	%)			0.87	%			0.44	%
Adjusted return on average assets (1)(4)		1.08	%			1.03	%			1.15	%			0.94	%			0.92	%
Return on average equity (4)		11.86	%			12.43	%			(2.35	%)			10.10	%			5.33	%
Adjusted return on average equity (1)(4)		12.08	%			11.75	%			15.01	%			10.92	%			11.19	%
Net interest margin (4)		3.93	%			3.83	%			3.83	%			3.86	%			3.51	%
Net interest margin fully tax-equivalent (1)(4)		3.95	%			3.84	%			3.83	%			3.88	%			3.51	%
Efficiency ratio (1)		64.66	%			67.97	%			63.97	%			68.18	%			66.73	%
Average Balances
Average assets	$	2,061,973			$	2,022,958			$	2,051,578			$	2,026,527			$	1,597,150
Average earning assets		1,914,802				1,897,328				1,919,864				1,898,424				1,504,946
Average noninterest deposits to total average deposits		29.28	%			29.13	%			29.20	%			29.12	%			30.83	%
Average shareholders’ equity	$	184,167			$	177,130				157,844			$	175,264				130,715
Asset Quality
Allowance for credit losses on loans to nonperforming assets		316.27	%			253.37	%			230.63	%			316.27	%			230.63	%
Allowance for credit losses on loans to period end loans		1.02	%			1.01	%			1.12	%			1.02	%			1.12	%
Nonperforming assets to period end loans		0.32	%			0.40	%			0.48	%			0.32	%			0.48	%
Loan charge-offs	$	753			$	1,027			$	1,432			$	4,805			$	4,033
Loan recoveries		102				88				98				366				283
Net charge-offs		651				939				1,334				4,439				3,750
Non-accrual loans		4,654				5,702				7,058				4,654				7,058
Other real estate owned, net		—				—				53				—				53
Nonperforming assets		4,654				5,702				7,111				4,654				7,111
Loans 30 to 89 days past due, accruing		3,830				3,580				3,085				3,830				3,085
Loans over 90 days past due, accruing		—				388				365				—				365
Capital Ratios (5)
Total capital	$	201,622			$	194,910			$	181,449			$	201,622			$	181,449
Tier 1 capital		186,193				179,781				164,454				186,193				164,454
Common equity Tier 1 capital		186,193				179,781				164,454				186,193				164,454
Total capital to risk-weighted assets (3)		13.64	%			13.40	%			12.34	%			13.64	%			12.34	%
Tier 1 capital to risk-weighted assets (3)		12.59	%			12.36	%			11.19	%			12.59	%			11.19	%
Common equity Tier 1 capital / risk-weighted assets (3)		12.59	%			12.36	%			11.19	%			12.59	%			11.19	%
Leverage ratio (3)		9.13	%			8.88	%			7.95	%			9.13	%			7.95	%

FIRST NATIONAL CORPORATION Performance Summary (in thousands) (unaudited)
	For the Period Ended
	Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024
Balance Sheet
Cash and due from banks	$	20,836			$	23,716			$	34,435			$	27,432			$	24,916
Interest-bearing deposits in banks		140,074				165,601				159,880				178,600				137,958
Cash and cash equivalents	$	160,910			$	189,317			$	194,315			$	206,032			$	162,874
Securities available for sale, at fair value		217,538				196,476				187,579				160,976				163,847
Securities held to maturity, at amortized cost (net of allowance for credit losses)		102,872				104,608				106,430				108,292				109,741
Restricted securities, at cost		5,624				4,436				5,624				4,436				3,741
Loans, net of allowance for credit losses		1,435,026				1,418,750				1,428,251				1,435,895				1,450,604
Other real estate owned, net		—				—				—				—				53
Premises and equipment, net		34,561				34,107				34,530				34,609				34,824
Accrued interest receivable		6,430				6,238				6,143				6,126				6,020
Bank owned life insurance		38,577				38,652				38,367				38,136				37,873
Goodwill		3,030				3,030				3,030				3,030				3,030
Core deposit intangibles, net		13,219				13,661				14,102				14,544				14,986
Other assets		20,907				21,479				23,070				21,270				22,688
Total assets	$	2,038,694			$	2,030,754			$	2,041,441			$	2,033,346			$	2,010,281
Noninterest-bearing demand deposits	$	509,874			$	511,482			$	541,204			$	540,387			$	520,153
Savings and interest-bearing demand deposits		926,579				931,241				900,658				922,197				924,880
Time deposits		363,095				366,860				361,304				362,392				358,745
Total deposits	$	1,799,548			$	1,809,583			$	1,803,166			$	1,824,976			$	1,803,778
Other borrowings		25,000				—				25,000				—				—
Subordinated debt, net		8,312				21,241				21,148				21,461				21,176
Junior subordinated debt		9,279				9,279				9,279				9,279				9,279
Accrued interest payable and other liabilities		10,359				9,442				9,316				8,955				9,517
Total liabilities	$	1,852,498			$	1,849,545			$	1,867,909			$	1,864,671			$	1,843,750
Common stock		11,282				11,262				11,236				11,233				11,218
Surplus		78,216				78,187				77,578				77,354				77,058
Retained earnings		108,937				104,964				100,810				97,152				96,947
Accumulated other comprehensive (loss), net		(12,239	)			(13,204	)			(16,092	)			(17,064	)			(18,692	)
Total shareholders’ equity	$	186,196			$	181,209			$	173,532			$	168,675			$	166,531
Total liabilities and shareholders’ equity	$	2,038,694			$	2,030,754			$	2,041,441			$	2,033,346			$	2,010,281
Loan Portfolio
Real estate loans:
Construction and land development	$	88,424			$	78,470			$	78,169			$	81,596			$	84,480
Secured by farmland		11,879				12,812				12,514				12,314				14,133
Secured by 1-4 family residential		527,282				533,458				544,577				550,183				547,576
Other real estate loans		685,099				671,723				667,550				653,367				658,029
Commercial and industrial loans (except those secured by real estate)		117,256				117,047				119,910				131,539				140,393
Consumer installment loans		8,419				8,358				8,113				8,034				7,582
Deposit overdrafts		543				535				454				486				450
All other loans		10,843				10,794				12,150				13,111				14,361
Total loans	$	1,449,745			$	1,433,197			$	1,443,437			$	1,450,630			$	1,467,004
Allowance for credit losses		(14,719	)			(14,447	)			(15,186	)			(14,735	)			(16,400	)
Loans, net	$	1,435,026			$	1,418,750			$	1,428,251			$	1,435,895			$	1,450,604

FIRST NATIONAL CORPORATION Average Balances, Yields and Rates Paid (in thousands) (unaudited)
	Three Months Ended
	December 31, 2025																September 30, 2025																			December 31, 2024
	Average Balance				Interest Income/ Expense					Yield/ Rate (7)							Average Balance						Interest Income/ Expense						Yield/ Rate (7)							Average Balance						Interest Income/ Expense						Yield/ Rate (7)
Assets
Securities:
Taxable	$	261,463			$	1,735						2.63	%				$		242,797				$		1,562						2.55	%				$		222,869				$		1,284						2.29	%
Tax-exempt (1)		52,441				370						2.80	%						51,493						375						2.89	%						52,943						391						2.93	%
Restricted		4,449				66						5.88	%						4,436						65						5.80	%						3,773						104						10.96	%
Total securities	$	318,353			$	2,171						2.70	%				$		298,726				$		2,002						2.66	%				$		279,585				$		1,779						2.53	%
Loans:
Taxable	$	1,431,171			$	21,468						5.95	%				$		1,437,946				$		21,386						5.90	%				$		1,446,432				$		21,447						5.90	%
Tax-exempt (1)		3,565				57						6.32	%						3,473						55						6.29	%						5,193						88						6.74	%
Total loans	$	1,434,736			$	21,525						5.95	%				$		1,441,419				$		21,441						5.90	%				$		1,451,625				$		21,535						5.90	%
Federal funds sold		33				—						—							55						—						—							16,963						188						4.42	%
Interest-bearing deposits with other institutions		161,680				1,618						3.97	%						157,128						1,734						4.38	%						171,692						2,085						4.83	%
Total earning assets	$	1,914,802			$	25,314						5.24	%				$		1,897,328				$		25,177						5.26	%				$		1,919,865				$		25,587						5.30	%
Less: allowance for credit losses on loans		(14,883	)																(15,378	)																		(16,781	)
Total non-earning assets		162,054																	141,008																			148,495
Total assets	$	2,061,973															$		2,022,958																	$		2,051,579
Liabilities and Shareholders’ Equity
Interest bearing deposits:
Checking	$	401,385			$	1,185						1.17	%				$		376,344				$		1,256						1.32	%				$		369,546				$		1,314						1.41	%
Regular savings		207,169				183						0.35	%						209,909						208						0.39	%						212,738						171						0.32	%
Money market accounts		331,288				1,656						1.98	%						330,115						1,882						2.26	%						359,708						2,320						2.57	%
Time deposits		365,961				2,905						3.15	%						363,702						2,900						3.16	%						355,181						2,610						2.92	%
Total interest-bearing deposits	$	1,305,803			$	5,929						1.80	%				$		1,280,070				$		6,246						1.94	%				$		1,297,173				$		6,415						1.97	%
Federal funds purchased		1				—						—							—						—						—							6						—						—
Subordinated debt		12,167				274						8.94	%						21,304						479						8.92	%						17,131						395						9.17	%
Junior subordinated debt		9,279				67						2.87	%						9,279						66						2.83	%						9,279						68						2.94	%
Other borrowings		272				3						3.93	%						—						—						0.00	%						20,109						248						4.90	%
Total interest-bearing liabilities	$	1,327,522			$	6,273						1.87	%				$		1,310,653				$		6,791						2.06	%				$		1,343,698				$		7,126						2.11	%
Non-interest bearing liabilities
Demand deposits		540,640																	526,240																			534,951
Other liabilities		9,644																	8,935																			15,086
Total liabilities	$	1,877,806															$		1,845,828																	$		1,893,735
Shareholders’ equity		184,167																	177,130																			157,844
Total liabilities and Shareholders’ equity	$	2,061,973															$		2,022,958																	$		2,051,579
Net interest income (1)					$	19,041																	$		18,386																	$		18,461
Interest rate spread (1)												3.37	%																		3.21	%																		3.19	%
Cost of funds												1.33	%																		1.47	%																		1.51	%
Interest expense as a percent of average earning assets												1.30	%																		1.42	%																		1.48	%
Net interest margin FTE (1)												3.95	%																		3.84	%																		3.83	%

FIRST NATIONAL CORPORATION Average Balances, Yields and Rates Paid (in thousands)
(unaudited)	Year Ended
	December 31, 2025												December 31, 2024
	Average Balance				Interest Income/ Expense				Yield / Rate (7)				Average Balance				Interest Income/ Expense				Yield / Rate (7)
Assets
Securities:
Taxable	$	236,181			$	5,923				2.51	%		$	221,611			$	4,733				2.14	%
Tax-exempt (1)		51,613				1,502				2.91	%			53,289				1,547				2.90	%
Restricted		4,377				260				5.94	%			2,522				202				8.01	%
Total securities	$	292,171			$	7,685				2.63	%		$	277,422			$	6,482				2.34	%
Loans:
Taxable	$	1,441,319			$	84,982				5.90	%		$	1,096,312			$	63,320				5.78	%
Tax-exempt (1)		3,978				244				6.13	%			2,561				206				8.04	%
Total loans	$	1,445,297			$	85,226				5.90	%		$	1,098,873			$	63,526				5.78	%
Federal funds sold		892				40				4.52	%			4,244				189				4.44	%
Interest-bearing deposits with other institutions		160,064				6,913				4.32	%			124,407				6,490				5.22	%
Total earning assets	$	1,898,424			$	99,864				5.26	%		$	1,504,946			$	76,687				5.10	%
Less: allowance for credit losses on loans		(15,437	)											(13,381	)
Total non-earning assets		143,540												105,585
Total assets	$	2,026,527											$	1,597,150
Liabilities and Shareholders’ Equity
Interest bearing deposits:
Checking	$	377,944			$	4,880				1.29	%		$	278,558			$	4,870				1.75	%
Regular savings		210,510				756				0.36	%			160,795				292				0.18	%
Money market accounts		332,467				7,370				2.22	%			294,818				8,265				2.80	%
Time deposits		363,641				11,286				3.10	%			239,590				7,537				3.15	%
Total interest-bearing deposits	$	1,284,562			$	24,292				1.89	%		$	973,761			$	20,964				2.15	%
Federal funds purchased		1				—				—				2				—				—
Subordinated debt		20,308				1,688				8.31	%			8,889				603				6.78	%
Junior subordinated debt		9,279				266				2.86	%			9,279				270				2.91	%
Other borrowings		137				6				4.28	%			42,486				2,029				4.78	%
Total interest-bearing liabilities	$	1,314,287			$	26,252				2.00	%		$	1,034,417			$	23,866				2.31	%
Non-interest bearing liabilities
Demand deposits		527,756												422,981
Other liabilities		9,220												9,037
Total liabilities	$	1,851,263											$	1,466,435
Shareholders’ equity		175,264												130,715
Total liabilities and Shareholders’ equity	$	2,026,527											$	1,597,150
Net interest income (1)					$	73,612											$	52,821
Interest rate spread (1)										3.26	%											2.79	%
Cost of funds										1.43	%											1.64	%
Interest expense as a percent of average earning assets										1.38	%											1.59	%
Net interest margin FTE (1)										3.88	%											3.51	%

FIRST NATIONAL CORPORATION Non-GAAP Reconciliation (in thousands, except share and per share data) (unaudited)
	For the Three Months Ended												For the Year Ended
	Dec 31, 2025				Sep 30, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Operating Net Income
Net income (GAAP)	$	5,504			$	5,550			$	(933	)		$	17,703			$	6,966
Add: Merger-related expenses		127				—				7,316				2,159				8,107
Add: Day 2 Non-PCD Provision		—				—				3,931				—				3,931
Subtract: Bargain purchase gain		—				(304	)			(2,920	)			(304	)			(2,920	)
Subtract: Tax effect of adjustment (5)		(27	)			64				(1,439	)			(417	)			(1,463	)
Adjusted operating net income (non-GAAP)	$	5,604			$	5,310			$	5,955			$	19,141			$	14,621
Adjusted Earnings Per Share, Basic
Weighted average shares, basic		9,011,378				8,999,153				8,971,649				8,994,410				6,955,592
Basic earnings (loss) per share (GAAP)	$	0.61			$	0.62			$	(0.10	)		$	1.97			$	1.00
Adjusted earnings per share, basic (non-GAAP)	$	0.62			$	0.58			$	0.66			$	2.13			$	2.10
Adjusted Earnings Per Share, Diluted
Weighted average shares, diluted		9,030,437				9,023,185				8,994,315				9,015,480				6,971,089
Diluted earnings (loss) per share (GAAP)	$	0.61			$	0.62			$	(0.10	)		$	1.96			$	1.00
Adjusted diluted earnings per share (non-GAAP)	$	0.62			$	0.58			$	0.66			$	2.12			$	2.10
Adjusted Pre-Provision, Pre-Tax Earnings
Net interest income	$	18,952			$	18,295			$	18,359			$	73,246			$	52,452
Total noninterest income		5,018				4,500				6,444				17,018				16,380
Net revenue	$	23,970			$	22,795			$	24,803			$	90,264			$	68,832
Total noninterest expense		16,125				15,782				21,929				65,433				52,934
Pre-provision, pre-tax earnings	$	7,845			$	7,013			$	2,874			$	24,831			$	15,898
Add: Merger expenses		127				—				7,316				2,159				8,107
Add: Day 2 Non-PCD Provision		—				—				3,931				—				3,931
Subtract: Bargain purchase gain		—				(304	)			(2,920	)			(304	)			(2,920	)
Adjusted pre-provision, pre-tax earnings	$	7,972			$	6,709			$	11,201			$	26,686			$	25,016
Adjusted Performance Ratios
Average assets	$	2,061,973			$	2,022,958			$	2,051,578			$	2,026,527			$	1,597,150
Return on average assets (GAAP)		1.06	%			1.09	%			(0.18	%)			0.87	%			0.44	%
Adjusted return on average assets (non-GAAP)		1.08	%			1.03	%			1.15	%			0.94	%			0.92	%
Average shareholders’ equity	$	184,167			$	177,130			$	157,844			$	175,264			$	130,715
Return on average equity (GAAP)		11.86	%			12.43	%			(2.35	%)			10.10	%			5.33	%
Adjusted return on average equity (non-GAAP)		12.08	%			11.75	%			15.01	%			10.92	%			11.19	%
Net Interest Margin
Net interest income	$	18,952			$	18,295			$	18,359			$	73,246			$	52,452
Tax-equivalent net interest income (non-GAAP)		19,041				18,385				18,461				73,612				52,821
Average earning assets		1,914,802				1,897,328				1,919,864				1,898,424				1,504,946
Net interest margin		3.93	%			3.83	%			3.80	%			3.86	%			3.49	%
Net interest margin fully tax equivalent (non-GAAP)		3.95	%			3.84	%			3.83	%			3.88	%			3.51	%

FIRST NATIONAL CORPORATION Non-GAAP Reconciliation (in thousands) (unaudited)
	For the Three Months Ended												For the Year Ended
	Dec 31, 2025				Sep 30, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Adjusted Noninterest Income
Total noninterest income	$	5,018			$	4,500			$	6,444			$	17,018			$	16,380
Subtract: bargain purchase gain		—				(304	)			(2,920	)			(304	)			(2,920	)
Subtract: loan recovery		(895	)			—				—				(895	)			—
Net revenue		4,123				4,196			$	3,524			$	15,819			$	13,460
Adjusted Operating Noninterest Expense
Total noninterest expense	$	16,125			$	15,782			$	21,929			$	65,433			$	52,934
Subtract: merger expenses		(127	)			—				(7,316	)			(2,159	)			(8,107	)
Subtract: amortization expense		(442	)			(442	)			(448	)			(1,767	)			(461	)
Adjusted operating noninterest expense	$	15,556			$	15,340			$	14,165			$	61,507			$	44,366
Efficiency Ratio
Total noninterest expense (GAAP)	$	16,125			$	15,782			$	21,929			$	65,433			$	52,934
Subtract/Add: other real estate owned (expense) income, net		—				—				(5	)			7				(15	)
Subtract: amortization of intangibles		(442	)			(442	)			(448	)			(1,767	)			(461	)
Add/Subtract: gain (loss) on disposal of premises and equipment, net		—				9				3				16				(47	)
Subtract: merger expenses		(127	)			—				(7,316	)			(2,159	)			(8,107	)
Adjusted operating non-interest expense (non-GAAP)	$	15,556			$	15,349			$	14,163			$	61,530			$	44,304
Tax-equivalent net interest income (non-GAAP)	$	19,041			$	18,385			$	18,461			$	73,612			$	52,821
Total noninterest income (GAAP)		5,018				4,500				6,444				17,018				16,380
Subtract: net gain on subordinated debt payoff		—				—				—				(80	)			—
Subtract: bargain purchase gain		—				(304	)			(2,920	)			(304	)			(2,920	)
Add/Subtract: securities losses (gains), net		—				—				154				—				115
Adjusted income for efficiency ratio (non-GAAP)	$	24,059			$	22,581			$	22,139			$	90,246			$	66,396
Efficiency ratio (non-GAAP)		64.66	%			67.97	%			63.97	%			68.18	%			66.73	%

FIRST NATIONAL CORPORATION Non-GAAP Reconciliation (in thousands, except share and per share data) (unaudited)
	For the Three Months Ended												For the Year Ended
	Dec 31, 2025				Sep 30, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Tax-Equivalent Net Interest Income
GAAP measures:
Interest income – loans	$	21,513			$	21,430			$	21,516			$	85,174			$	63,483
Interest income – investments and other		3,711				3,657				3,970				14,323				12,836
Interest expense – deposits		(5,929	)			(6,246	)			(6,415	)			(24,292	)			(20,964	)
Interest expense – federal funds purchased		—				—				(1	)			—				(1	)
Interest expense – subordinated debt		(273	)			(479	)			(396	)			(1,687	)			(603	)
Interest expense – junior subordinated debt		(67	)			(67	)			(68	)			(266	)			(270	)
Interest expense – other borrowings		(3	)			—				(247	)			(6	)			(2,029	)
Net interest income	$	18,952			$	18,295			$	18,359			$	73,246			$	52,452
Non-GAAP measures:
Add: Tax benefit realized on non-taxable interest income – loans (6)	$	12			$	11			$	18			$	51			$	43
Add: Tax benefit realized on non-taxable interest income – municipal securities (6)		77				79				84				315				326
Tax benefit realized on non-taxable interest income	$	89			$	90			$	102			$	366			$	369
Tax-equivalent net interest income	$	19,041			$	18,385			$	18,461			$	73,612			$	52,821
Tangible Common Equity and Tangible Assets
Total assets (GAAP)	$	2,038,694			$	2,030,754			$	2,010,281			$	2,038,694			$	2,010,281
Subtract: goodwill		(3,030	)			(3,030	)			(3,030	)			(3,030	)			(3,030	)
Subtract: core deposit intangibles, net		(13,219	)			(13,661	)			(14,986	)			(13,219	)			(14,986	)
Tangible assets (Non-GAAP)	$	2,022,445			$	2,014,063			$	1,992,265			$	2,022,445			$	1,992,265
Total shareholders’ equity (GAAP)	$	186,196			$	181,209			$	166,531			$	186,196			$	166,531
Subtract: goodwill		(3,030	)			(3,030	)			(3,030	)			(3,030	)			(3,030	)
Subtract: core deposit intangibles, net		(13,219	)			(13,661	)			(14,986	)			(13,219	)			(14,986	)
Tangible common equity (Non-GAAP)	$	169,947			$	164,518			$	148,515			$	169,947			$	148,515
Tangible common equity to tangible assets ratio (non-GAAP)		8.40	%			8.17	%			7.45	%			8.40	%			7.45	%
Tangible Book Value Per Share
Tangible common equity (non-GAAP)	$	169,947			$	164,518			$	148,515			$	169,947			$	148,515
Common shares outstanding, ending		9,025,395				9,009,209				8,974,102				9,025,395				8,974,102
Tangible book value per share (non-GAAP)	$	18.83			$	18.26			$	16.55			$	18.83			$	16.55

(1)		Non-GAAP financial measure.  See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” tables for additional information and detailed calculations of adjustments.
(2)		The Company is a small bank holding company under applicable regulations and guidance and is not subject to the minimum regulatory capital regulations for bank holding companies. The regulatory requirements that apply to bank holding companies that are subject to regulatory capital requirements are presented above, along with the Company's capital ratios as determined under those regulations.
(3)		All ratios on December 31, 2025, are estimates and subject to change pending the Bank's filing of its Call Report. All other periods are presented as filed.
(4)		Ratios are annualized.
(5)		Capital ratios presented are for First Bank.
(6)		The tax rate utilized in calculating the tax benefit is 21%
(7)		Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 21%

FAQ

What were First National Corporation (FXNC) earnings per share for Q4 2025?

Q4 2025 basic and diluted EPS were $0.61. According to the company, consolidated net income for the quarter was $5.5 million, driven by higher net interest income and lower nonperforming assets.

How did First National (FXNC) perform for full-year 2025 in earnings and adjusted operating earnings?

Full-year 2025 consolidated earnings were $17.7 million with basic EPS $1.97. According to the company, adjusted operating earnings were $19.1 million with adjusted basic EPS of $2.13.

What was First National’s (FXNC) net interest margin and what affected it in Q4 2025?

Net interest margin (FTE) for Q4 2025 was 3.95%. According to the company, this included acquisition accounting accretion of $201 thousand in the quarter and modest decreases in interest expense.

How did First National’s (FXNC) loan balances and asset quality change in Q4 2025?

Loans grew by $16.3 million in the quarter and NPAs declined to 0.32% of loans. According to the company, previously reserved loans were charged off, improving NPA ratios.

Did First National (FXNC) change its dividend in Q4 2025 and what was the amount?

The company declared and paid a quarterly cash dividend of $0.17 per share in Q4 2025. According to the company, that compared with $0.155 in the prior quarter, representing the declared increase.

What capital and liquidity metrics did First National (FXNC) report at December 31, 2025?

At Dec 31, 2025 total assets were $2.039 billion, deposits were $1.800 billion, and tangible book value per share was $18.83. According to the company, available liquidity sources totaled $743.0 million.