First National Corporation Reports Record Second Quarter 2025 Earnings
First National Corporation (NASDAQ: FXNC) reported record second quarter 2025 earnings of $5.05 million, with earnings per share of $0.56, marking a 211% increase from the previous period and 44% year-over-year growth. The company's performance was bolstered by its recently completed Touchstone franchise acquisition.
Key highlights include a net interest margin of 3.95%, up from 3.40% year-over-year, and an improved efficiency ratio of 65.11%. Net loans held for investment reached $1.428 billion, up 46.1% from the previous year, while total deposits grew to $1.803 billion, a 42.5% increase. The company maintained strong asset quality with nonperforming assets at 0.33% of total assets.
The bank's capital position remained robust with a total capital ratio of 14.89% and declared a quarterly cash dividend of $0.155 per common share.
First National Corporation (NASDAQ: FXNC) ha riportato risultati record nel secondo trimestre 2025 con utili di 5,05 milioni di dollari e un utile per azione di 0,56 dollari, segnando un aumento del 211% rispetto al periodo precedente e una crescita del 44% su base annua. La performance dell'azienda è stata rafforzata dall'acquisizione recentemente completata del franchising Touchstone.
I punti salienti includono un margine di interesse netto del 3,95%, in aumento rispetto al 3,40% dell'anno precedente, e un miglioramento del rapporto di efficienza al 65,11%. I prestiti netti detenuti per investimento hanno raggiunto 1,428 miliardi di dollari, con un incremento del 46,1% rispetto all'anno precedente, mentre i depositi totali sono cresciuti fino a 1,803 miliardi di dollari, con un aumento del 42,5%. L'azienda ha mantenuto una solida qualità degli attivi con attività non performanti pari allo 0,33% del totale degli attivi.
La posizione patrimoniale della banca è rimasta solida con un rapporto patrimoniale totale del 14,89% e ha dichiarato un dividendo trimestrale in contanti di 0,155 dollari per azione ordinaria.
First National Corporation (NASDAQ: FXNC) reportó ganancias récord en el segundo trimestre de 2025 por 5,05 millones de dólares, con ganancias por acción de 0,56 dólares, lo que representa un aumento del 211% respecto al período anterior y un crecimiento interanual del 44%. El desempeño de la empresa se vio impulsado por la reciente adquisición de la franquicia Touchstone.
Los puntos clave incluyen un margen de interés neto del 3,95%, superior al 3,40% del año anterior, y una mejora en la ratio de eficiencia al 65,11%. Los préstamos netos para inversión alcanzaron los 1.428 millones de dólares, un aumento del 46,1% respecto al año anterior, mientras que los depósitos totales crecieron hasta 1.803 millones de dólares, un incremento del 42,5%. La compañía mantuvo una sólida calidad de activos con activos no productivos en el 0,33% del total de activos.
La posición de capital del banco se mantuvo robusta con un índice de capital total del 14,89% y declaró un dividendo trimestral en efectivo de 0,155 dólares por acción común.
퍼스트 내셔널 코퍼레이션(NASDAQ: FXNC)은 2025년 2분기 실적에서 505만 달러의 기록적인 순이익과 주당 순이익 0.56달러를 보고했으며, 이는 전기 대비 211%, 전년 동기 대비 44% 증가한 수치입니다. 회사의 실적은 최근 완료된 터치스톤 프랜차이즈 인수에 힘입었습니다.
주요 내용으로는 전년 동기 대비 3.40%에서 상승한 순이자마진 3.95%와 개선된 효율성 비율 65.11%가 있습니다. 투자용 순대출금은 전년 대비 46.1% 증가한 14억 2,800만 달러에 달했으며, 총 예금은 18억 300만 달러로 42.5% 증가했습니다. 회사는 총자산 대비 0.33%에 불과한 부실 자산 비율로 견고한 자산 품질을 유지했습니다.
은행의 자본 상태는 총자본비율 14.89%로 견고했으며, 보통주 1주당 0.155달러의 분기 현금 배당금을 선언했습니다.
First National Corporation (NASDAQ : FXNC) a annoncé des résultats records pour le deuxième trimestre 2025, avec un bénéfice de 5,05 millions de dollars et un bénéfice par action de 0,56 dollar, soit une augmentation de 211 % par rapport à la période précédente et une croissance annuelle de 44 %. La performance de l'entreprise a été renforcée par l'acquisition récente de la franchise Touchstone.
Les points clés incluent une marge d'intérêt nette de 3,95 %, en hausse par rapport à 3,40 % l'année précédente, et un ratio d'efficacité amélioré à 65,11 %. Les prêts nets détenus pour investissement ont atteint 1,428 milliard de dollars, en hausse de 46,1 % par rapport à l'année précédente, tandis que les dépôts totaux ont augmenté à 1,803 milliard de dollars, soit une hausse de 42,5 %. La société a maintenu une bonne qualité d'actifs avec des actifs non performants représentant 0,33 % du total des actifs.
La position en capital de la banque est restée solide avec un ratio de capital total de 14,89 % et un dividende trimestriel en espèces de 0,155 dollar par action ordinaire a été déclaré.
First National Corporation (NASDAQ: FXNC) meldete für das zweite Quartal 2025 Rekordgewinne von 5,05 Millionen US-Dollar mit einem Gewinn je Aktie von 0,56 US-Dollar, was einer Steigerung von 211 % gegenüber dem Vorquartal und einem Wachstum von 44 % im Jahresvergleich entspricht. Die Leistung des Unternehmens wurde durch die kürzlich abgeschlossene Übernahme der Touchstone-Franchise gestärkt.
Zu den wichtigsten Punkten zählen eine Nettozinsmarge von 3,95 %, gestiegen von 3,40 % im Jahresvergleich, sowie ein verbesserter Effizienzquotient von 65,11 %. Die Nettokredite zur Investition erreichten 1,428 Milliarden US-Dollar, ein Anstieg von 46,1 % gegenüber dem Vorjahr, während die Gesamteinlagen auf 1,803 Milliarden US-Dollar wuchsen, ein Plus von 42,5 %. Das Unternehmen hielt eine starke Vermögensqualität mit notleidenden Aktiva von 0,33 % der Gesamtaktiva aufrecht.
Die Kapitalausstattung der Bank blieb robust mit einer Gesamtkapitalquote von 14,89 % und es wurde eine vierteljährliche Bardividende von 0,155 US-Dollar je Stammaktie angekündigt.
- Record quarterly earnings of $5.05 million, with EPS up 211% from previous quarter
- Net interest margin expanded to 3.95%, up from 3.40% year-over-year
- Efficiency ratio improved to 65.11% from 75.44% in previous quarter
- Strong deposit base with 30% being noninterest bearing deposits
- Successful integration of Touchstone acquisition driving growth
- Robust liquidity position with $633.7 million in available sources
- Muted loan growth due to higher than average loan payoff volumes
- Total deposits decreased $21.8 million (1.2%) from previous quarter
- Nonperforming assets increased to 0.33% from 0.24% in previous quarter
- Net charge-offs of $448 thousand in Q2 2025
- Tangible book value per share decreased to $17.40 from $18.59 year-over-year
Insights
First National reports strong Q2 with 44% EPS growth YoY, driven by acquisition synergies and margin expansion despite muted loan growth.
First National Corporation delivered an impressive Q2 2025 performance, with earnings per share reaching
The company's profitability metrics show remarkable improvement. Return on average assets climbed to
Net interest margin, a critical metric for banks, expanded to
On the balance sheet side, while loan growth was muted quarter-over-quarter (down
Asset quality metrics present a mixed picture. Nonperforming assets increased to
The bank maintains strong capital ratios with tangible common equity to tangible assets at
First National's quarterly dividend remained stable at
STRASBURG, Va., July 30, 2025 (GLOBE NEWSWIRE) -- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of First Bank (the “Bank”), reported earnings for the quarter ended June 30, 2025 of
“We are extremely pleased with our performance in the second quarter as we begin to realize the value of our recently completed acquisition of the Touchstone franchise. Earnings improved over the prior quarter and the previous year due to net interest margin expansion and our improved efficiency as a combined company. While growth was muted due to higher than average loan payoff volumes and our focus on managing deposit pricing, this discipline delivered on improved earnings, strong liquidity and capital growth,” said Scott Harvard, President and Chief Executive Officer of First National.
FINANCIAL HIGHLIGHTS FOR SECOND QUARTER 2025
- Earnings per share of
$0.56 per share, up211% from the previous period and up44% from one year prior - Return on average assets of
1.00% compared to0.32% in the previous period and0.68% one year prior - Return on average equity of
11.85% compared to3.85% in the previous period and8.31% one year prior - Net interest margin fully taxable equivalent ("FTE")(1) of
3.95% , up16.2% from3.40% one year prior - Efficiency ratio(1) improved to
65.11% from75.44% in the previous period and70.64% one year prior - Net loans held for investment of
$1.42 8 billion, up46.1% from one year prior - Total deposits of
$1.80 3 billion, up42.5% from one year prior - Noninterest bearing deposits of
$541.2 million , up36.1% from one year prior - Noninterest bearing deposits comprised
30% of total deposits at June 30, 2025
NET INTEREST INCOME
For the second quarter of 2025, the Company’s net interest margin (FTE)(1) was
| Loan Accretion (Amortization) | Deposit Accretion | Borrowings (Amortization) | Total | |||||||||||||
| For the quarter ended March 31, 2025 | $ | (194 | ) | $ | 443 | $ | (285 | ) | $ | (36 | ) | |||||
| For the quarter ended June 30, 2025 | 930 | 163 | (186 | ) | 907 | |||||||||||
Earning asset yields for the second quarter of 2025 increased 17 basis points to
NONINTEREST INCOME
Non-interest income increased
NONINTEREST EXPENSE
Noninterest expense decreased
Adjusted operating noninterest expense(1), which excludes merger-related costs (
BALANCE SHEET
At June 30, 2025, total assets were
At June 30, 2025, LHFI net of allowance totaled
At June 30, 2025, total investments were
At June 30, 2025, total deposits were
There were
LIQUIDITY
Liquidity sources available to the Bank, including interest-bearing deposits in banks, unpledged securities available for sale, at fair value, unpledged securities held-to-maturity, at par, eligible to be pledged, and available lines of credit totaled
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
ASSET QUALITY
Nonperforming Assets
Management classifies non-performing assets ("NPAs") as non-accrual loans and other real estate owned ("OREO"). NPAs as a percentage of total assets increased to
NPAs increased by
Past Due Loans
There were no loans past due over 90 days or more and still accruing interest on June 30, 2025, consistent with
Net Charge-offs
Net charge-offs totaled
Allowance and Provision for Credit Losses
The allowance for credit losses on loans totaled
The Company recorded a
CAPITAL
During the second quarter of 2025, the Company declared and paid cash dividends of
The following table provides capital ratios and values for the periods ended:
| First National Corporation (3) | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | ||||||
| Total capital ratio (2) | 14.89 | % | 14.58 | % | 15.58 | % | |||
| Tier 1 capital ratio (2) | 12.37 | % | 12.07 | % | 13.85 | % | |||
| Common equity Tier 1 capital ratio (2) | 11.74 | % | 11.44 | % | 12.97 | % | |||
| Leverage ratio (2) | 8.99 | % | 8.78 | % | 9.88 | % | |||
| Common equity to total assets | 8.51 | % | 8.30 | % | 8.23 | % | |||
| Tangible common equity to tangible assets (1) | 7.73 | % | 7.50 | % | 8.03 | % | |||
| Tangible book value per share (1) | $ | 17.40 | $ | 16.81 | $ | 18.59 | |||
| First Bank | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | ||||||
| Total capital ratio (2) | 12.89 | % | 12.44 | % | 14.13 | % | |||
| Tier 1 capital ratio (2) | 11.81 | % | 11.39 | % | 12.88 | % | |||
| Common equity Tier 1 capital ratio (2) | 11.81 | % | 11.39 | % | 12.88 | % | |||
| Leverage ratio (2) | 8.56 | % | 8.28 | % | 9.17 | % | |||
| Common equity to total assets | 8.45 | % | 8.15 | % | 7.99 | % | |||
| Tangible common equity to tangible assets (1) | 7.68 | % | 7.35 | % | 7.79 | % | |||
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 website, www.fbvirginia.com, its mobile banking platform, a network of ATMs located throughout its market area, three loan production offices, a customer service center in a retirement community, and thirty-three bank branch office locations located throughout the Shenandoah Valley, the south-central regions of Virginia, the Roanoke Valley, the Richmond MSA, 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 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,” 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) 465-9121 | (540) 465-9121 | |
| sharvard@fbvirginia.com | bschwartz@fbvirginia.com | |
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands)
(unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | ||||||||||||||||
| Income Statement | ||||||||||||||||||||
| Interest and dividend income | ||||||||||||||||||||
| Interest and fees on loans | $ | 21,594 | $ | 20,637 | $ | 14,004 | $ | 42,231 | $ | 27,488 | ||||||||||
| Interest on deposits in banks | 1,891 | 1,671 | 1,579 | 3,562 | 2,867 | |||||||||||||||
| Interest on federal funds sold | — | 40 | — | 40 | — | |||||||||||||||
| Taxable interest on securities | 1,313 | 1,314 | 1,134 | 2,627 | 2,358 | |||||||||||||||
| Tax-exempt interest on securities | 298 | 300 | 306 | 598 | 611 | |||||||||||||||
| Dividends | 69 | 60 | 32 | 129 | 65 | |||||||||||||||
| Total interest and dividend income | $ | 25,165 | $ | 24,022 | $ | 17,055 | $ | 49,187 | $ | 33,389 | ||||||||||
| Interest expense | ||||||||||||||||||||
| Interest on deposits | $ | 6,080 | $ | 6,038 | $ | 4,820 | $ | 12,118 | $ | 9,591 | ||||||||||
| Interest on subordinated debt | 468 | 467 | 69 | 935 | 138 | |||||||||||||||
| Interest on junior subordinated debt | 66 | 66 | 66 | 132 | 134 | |||||||||||||||
| Interest on other borrowings | 3 | — | 606 | 3 | 1,182 | |||||||||||||||
| Total interest expense | $ | 6,617 | $ | 6,571 | $ | 5,561 | $ | 13,188 | $ | 11,045 | ||||||||||
| Net interest income | $ | 18,548 | $ | 17,451 | $ | 11,494 | $ | 35,999 | $ | 22,344 | ||||||||||
| Provision for credit losses | 911 | 832 | 400 | 1,743 | 1,400 | |||||||||||||||
| Net interest income after provision for credit losses | $ | 17,637 | $ | 16,619 | $ | 11,094 | $ | 34,256 | $ | 20,944 | ||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges on deposit accounts | $ | 1,020 | $ | 1,013 | $ | 612 | $ | 2,033 | $ | 1,266 | ||||||||||
| ATM and check card fees | 1,128 | 996 | 809 | 2,124 | 1,579 | |||||||||||||||
| Wealth management fees | 867 | 898 | 879 | 1,765 | 1,762 | |||||||||||||||
| Fees for other customer services | 230 | 258 | 178 | 488 | 373 | |||||||||||||||
| Brokered mortgage fees | 183 | 110 | 32 | 293 | 70 | |||||||||||||||
| Income from bank owned life insurance | 231 | 246 | 149 | 477 | 300 | |||||||||||||||
| Net gain on subdebt payoff | 80 | — | — | 80 | — | |||||||||||||||
| Other operating income | 150 | 90 | 27 | 240 | 1,383 | |||||||||||||||
| Total noninterest income | $ | 3,889 | $ | 3,611 | $ | 2,686 | $ | 7,500 | $ | 6,733 | ||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | $ | 8,033 | $ | 8,689 | $ | 5,839 | $ | 16,722 | $ | 11,710 | ||||||||||
| Occupancy | 944 | 1,069 | 548 | 2,013 | 1,083 | |||||||||||||||
| Equipment | 1,057 | 1,025 | 691 | 2,082 | 1,282 | |||||||||||||||
| Marketing | 286 | 220 | 273 | 506 | 468 | |||||||||||||||
| Supplies | 198 | 217 | 115 | 415 | 231 | |||||||||||||||
| Legal and professional fees | 593 | 522 | 1,124 | 1,115 | 1,576 | |||||||||||||||
| ATM and check card expense | 537 | 439 | 368 | 976 | 729 | |||||||||||||||
| FDIC assessment | 315 | 414 | 203 | 729 | 380 | |||||||||||||||
| Bank franchise tax | 348 | 317 | 261 | 665 | 523 | |||||||||||||||
| Data processing expense | 504 | 762 | 163 | 1,266 | 409 | |||||||||||||||
| Amortization expense | 441 | 442 | 5 | 883 | 9 | |||||||||||||||
| Other real estate owned expense (income), net | (3 | ) | (8 | ) | — | (11 | ) | — | ||||||||||||
| Net loss on disposal of premises and equipment | 7 | — | — | 7 | 49 | |||||||||||||||
| Merger expense | 92 | 1,940 | — | 2,032 | — | |||||||||||||||
| Other operating expense | 1,839 | 2,287 | 1,069 | 4,126 | 2,097 | |||||||||||||||
| Total noninterest expense | $ | 15,191 | $ | 18,335 | $ | 10,659 | $ | 33,526 | $ | 20,546 | ||||||||||
| Income before income taxes | $ | 6,335 | $ | 1,895 | $ | 3,121 | $ | 8,230 | $ | 7,131 | ||||||||||
| Income tax expense | 1,284 | 297 | 679 | 1,581 | 1,480 | |||||||||||||||
| Net income | $ | 5,051 | $ | 1,598 | $ | 2,442 | $ | 6,649 | $ | 5,651 | ||||||||||
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
(unaudited)
| As of or For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | ||||||||||||||||
| Common Share and Per Common Share Data | ||||||||||||||||||||
| Earnings (loss) per common share, basic | $ | 0.56 | $ | 0.18 | $ | 0.39 | $ | 0.74 | $ | 0.90 | ||||||||||
| Adjusted earnings (loss) per common share, basic (1) | $ | 0.57 | $ | 0.35 | 0.48 | $ | 0.92 | $ | 0.99 | |||||||||||
| Weighted average shares, basic | 8,987,179 | 8,979,527 | 6,278,113 | 8,983,374 | 6,273,952 | |||||||||||||||
| Earnings (loss) per common share, diluted | $ | 0.56 | $ | 0.18 | $ | 0.39 | $ | 0.74 | $ | 0.90 | ||||||||||
| Adjusted earnings (loss) per common share, diluted (1) | $ | 0.57 | $ | 0.35 | 0.48 | $ | 0.92 | $ | 0.99 | |||||||||||
| Weighted average shares, diluted | 9,001,972 | 9,005,923 | 6,289,405 | 9,003,969 | 6,285,970 | |||||||||||||||
| Shares outstanding at period end | 8,989,138 | 8,986,696 | 6,280,406 | 8,989,138 | 6,280,406 | |||||||||||||||
| Tangible book value per share at period end (1) | $ | 17.40 | $ | 16.81 | $ | 18.59 | $ | 17.40 | $ | 18.59 | ||||||||||
| Cash dividends declared | $ | 0.155 | $ | 0.155 | $ | 0.15 | $ | 0.31 | $ | 0.30 | ||||||||||
| Key Performance Ratios | ||||||||||||||||||||
| Return on average assets (4) | 1.00 | % | 0.32 | % | 0.68 | % | 0.66 | % | 0.79 | % | ||||||||||
| Adjusted return on average assets (1)(4) | 1.02 | % | 0.63 | % | 0.84 | % | 0.83 | % | 0.86 | % | ||||||||||
| Return on average equity (4) | 11.85 | % | 3.85 | % | 8.31 | % | 7.90 | % | 9.68 | % | ||||||||||
| Adjusted return on average equity (1)(4) | 12.05 | % | 7.61 | % | 10.23 | % | 11.19 | % | 10.65 | % | ||||||||||
| Net interest margin (4) | 3.93 | % | 3.75 | % | 3.37 | % | 3.84 | % | 3.30 | % | ||||||||||
| Net interest margin fully tax-equivalent (1)(4) | 3.95 | % | 3.77 | % | 3.40 | % | 3.86 | % | 3.31 | % | ||||||||||
| Efficiency ratio (1) | 65.11 | % | 75.44 | % | 70.64 | % | 70.01 | % | 68.09 | % | ||||||||||
| Average Balances | ||||||||||||||||||||
| Average assets | $ | 2,019,344 | $ | 2,016,958 | $ | 1,448,478 | $ | 2,020,425 | $ | 1,438,219 | ||||||||||
| Average earning assets | 1,893,133 | 1,888,428 | 1,370,072 | 1,890,749 | 1,362,687 | |||||||||||||||
| Average noninterest deposits to total average deposits | 29.88 | % | 29.01 | % | 31.44 | % | 29.49 | % | 30.70 | % | ||||||||||
| Average shareholders’ equity | $ | 170,920 | $ | 168,245 | 118,255 | $ | 169,713 | 117,388 | ||||||||||||
| Asset Quality | ||||||||||||||||||||
| Allowance for credit losses on loans to nonperforming assets | 223.45 | % | 302.94 | % | 146.84 | % | 223.45 | % | 146.84 | % | ||||||||||
| Allowance for credit losses on loans to period end loans | 1.05 | % | 1.02 | % | 1.27 | % | 1.05 | % | 1.27 | % | ||||||||||
| Nonperforming assets to period end loans | 0.47 | % | 0.34 | % | 0.86 | % | 0.47 | % | 0.86 | % | ||||||||||
| Loan charge-offs | $ | 535 | $ | 2,490 | $ | 521 | $ | 3,025 | $ | 934 | ||||||||||
| Loan recoveries | 87 | 89 | 39 | 176 | 90 | |||||||||||||||
| Net charge-offs | 448 | 2,401 | 482 | 2,849 | 844 | |||||||||||||||
| Non-accrual loans | 6,796 | 4,864 | 8,549 | 6,796 | 8,549 | |||||||||||||||
| Other real estate owned, net | — | — | — | — | — | |||||||||||||||
| Nonperforming assets | 6,796 | 4,864 | 8,549 | 6,796 | 8,549 | |||||||||||||||
| Loans 30 to 89 days past due, accruing | 3,190 | 5,021 | 2,399 | 3,190 | 2,399 | |||||||||||||||
| Loans over 90 days past due, accruing | — | — | — | — | — | |||||||||||||||
| Capital Ratios (5) | ||||||||||||||||||||
| Total capital | $ | 189,115 | $ | 182,563 | $ | 147,500 | $ | 189,115 | $ | 147,500 | ||||||||||
| Tier 1 capital | 173,240 | 167,150 | 134,451 | 173,240 | 134,451 | |||||||||||||||
| Common equity Tier 1 capital | 173,240 | 167,150 | 134,451 | 173,240 | 134,451 | |||||||||||||||
| Total capital to risk-weighted assets (2) | 12.89 | % | 12.44 | % | 14.13 | % | 12.89 | % | 14.13 | % | ||||||||||
| Tier 1 capital to risk-weighted assets (2) | 11.81 | % | 11.39 | % | 12.88 | % | 11.81 | % | 12.88 | % | ||||||||||
| Common equity Tier 1 capital to risk-weighted assets (2) | 11.81 | % | 11.39 | % | 12.88 | % | 11.81 | % | 12.88 | % | ||||||||||
| Leverage ratio (2) | 8.56 | % | 8.28 | % | 9.17 | % | 8.56 | % | 9.17 | % | ||||||||||
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands)
(unaudited)
| For the Period Ended | ||||||||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||||||||||||||||
| Balance Sheet | ||||||||||||||||||||
| Cash and due from banks | $ | 34,435 | $ | 27,432 | $ | 24,916 | $ | 18,197 | $ | 16,729 | ||||||||||
| Interest-bearing deposits in banks | 159,880 | 178,600 | 137,958 | 108,319 | 118,906 | |||||||||||||||
| Cash and cash equivalents | $ | 194,315 | $ | 206,032 | $ | 162,874 | $ | 126,516 | $ | 135,635 | ||||||||||
| Securities available for sale, at fair value | 187,579 | 160,976 | 163,847 | 146,013 | 144,816 | |||||||||||||||
| Securities held to maturity, at amortized cost (net of allowance for credit losses) | 106,430 | 108,292 | 109,741 | 121,425 | 123,497 | |||||||||||||||
| Restricted securities, at cost | 5,624 | 4,436 | 3,741 | 2,112 | 2,112 | |||||||||||||||
| Loans, net of allowance for credit losses | 1,428,251 | 1,435,895 | 1,450,604 | 982,016 | 977,423 | |||||||||||||||
| Other real estate owned, net | — | — | 53 | 56 | — | |||||||||||||||
| Premises and equipment, net | 34,530 | 34,609 | 34,824 | 22,960 | 22,205 | |||||||||||||||
| Accrued interest receivable | 6,143 | 6,126 | 6,020 | 4,794 | 4,916 | |||||||||||||||
| Bank owned life insurance | 38,367 | 38,136 | 37,873 | 24,992 | 24,802 | |||||||||||||||
| Goodwill | 3,030 | 3,030 | 3,030 | 3,030 | 3,030 | |||||||||||||||
| Core deposit intangibles, net | 14,102 | 14,544 | 14,986 | 104 | 108 | |||||||||||||||
| Other assets | 23,070 | 21,270 | 22,688 | 16,698 | 18,984 | |||||||||||||||
| Total assets | $ | 2,041,441 | $ | 2,033,346 | $ | 2,010,281 | $ | 1,450,716 | $ | 1,457,528 | ||||||||||
| Noninterest-bearing demand deposits | $ | 541,204 | $ | 540,387 | $ | 520,153 | $ | 383,400 | $ | 397,770 | ||||||||||
| Savings and interest-bearing demand deposits | 900,658 | 922,197 | 924,880 | 663,925 | 665,208 | |||||||||||||||
| Time deposits | 361,304 | 362,392 | 358,745 | 205,930 | 202,818 | |||||||||||||||
| Total deposits | $ | 1,803,166 | $ | 1,824,976 | $ | 1,803,778 | $ | 1,253,255 | $ | 1,265,796 | ||||||||||
| Other borrowings | 25,000 | — | — | 50,000 | 50,000 | |||||||||||||||
| Subordinated debt, net | 21,148 | 21,461 | 21,176 | 4,999 | 4,998 | |||||||||||||||
| Junior subordinated debt | 9,279 | 9,279 | 9,279 | 9,279 | 9,279 | |||||||||||||||
| Accrued interest payable and other liabilities | 9,316 | 8,955 | 9,517 | 8,068 | 7,564 | |||||||||||||||
| Total liabilities | $ | 1,867,909 | $ | 1,864,671 | $ | 1,843,750 | $ | 1,325,601 | $ | 1,337,637 | ||||||||||
| Common stock | 11,236 | 11,233 | 11,218 | 7,871 | 7,851 | |||||||||||||||
| Surplus | 77,578 | 77,354 | 77,058 | 33,409 | 33,116 | |||||||||||||||
| Retained earnings | 100,810 | 97,152 | 96,947 | 99,270 | 97,966 | |||||||||||||||
| Accumulated other comprehensive (loss), net | (16,092 | ) | (17,064 | ) | (18,692 | ) | (15,435 | ) | (19,042 | ) | ||||||||||
| Total shareholders’ equity | $ | 173,532 | $ | 168,675 | $ | 166,531 | $ | 125,115 | $ | 119,891 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 2,041,441 | $ | 2,033,346 | $ | 2,010,281 | $ | 1,450,716 | $ | 1,457,528 | ||||||||||
| Loan Data | ||||||||||||||||||||
| Real estate loans: | ||||||||||||||||||||
| Construction and land development | $ | 78,169 | $ | 81,596 | $ | 84,480 | $ | 61,446 | $ | 60,919 | ||||||||||
| Secured by farmland | 12,514 | 12,314 | 14,133 | 9,099 | 8,911 | |||||||||||||||
| Secured by 1-4 family residential | 544,577 | 550,183 | 547,576 | 351,004 | 346,976 | |||||||||||||||
| Other real estate loans | 667,550 | 653,367 | 658,029 | 440,648 | 440,857 | |||||||||||||||
| Loans to farmers (except those secured by real estate) | 790 | 858 | 940 | 633 | 349 | |||||||||||||||
| Commercial and industrial loans (except those secured by real estate) | 119,910 | 131,539 | 140,393 | 114,190 | 115,951 | |||||||||||||||
| Consumer installment loans | 8,113 | 8,034 | 7,582 | 5,396 | 5,068 | |||||||||||||||
| Deposit overdrafts | 454 | 486 | 450 | 253 | 365 | |||||||||||||||
| All other loans | 11,360 | 12,253 | 13,421 | 12,051 | 10,580 | |||||||||||||||
| Total loans | $ | 1,443,437 | $ | 1,450,630 | $ | 1,467,004 | $ | 994,720 | $ | 989,976 | ||||||||||
| Allowance for credit losses | (15,186 | ) | (14,735 | ) | (16,400 | ) | (12,704 | ) | (12,553 | ) | ||||||||||
| Loans, net | $ | 1,428,251 | $ | 1,435,895 | $ | 1,450,604 | $ | 982,016 | $ | 977,423 | ||||||||||
FIRST NATIONAL CORPORATION
Average Balances, Yields and Rates Paid
(in thousands)
(unaudited)
| Three Months Ended | |||||||||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | June 30, 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 | $ | 220,100 | $ | 1,313 | 2.39 | % | $ | 219,815 | $ | 1,314 | 2.42 | % | $ | 216,079 | $ | 1,134 | 2.11 | % | |||||||||||
| Tax-exempt | 50,871 | 377 | 2.98 | % | 51,935 | 380 | 2.97 | % | 53,162 | 387 | 2.93 | % | |||||||||||||||||
| Restricted | 4,449 | 70 | 6.27 | % | 4,171 | 60 | 5.78 | % | 2,112 | 32 | 6.18 | % | |||||||||||||||||
| Total securities | $ | 275,420 | $ | 1,760 | 2.56 | % | $ | 275,921 | $ | 1,754 | 2.58 | % | $ | 271,353 | $ | 1,553 | 2.30 | % | |||||||||||
| Loans: | |||||||||||||||||||||||||||||
| Taxable | $ | 1,441,800 | $ | 21,551 | 6.00 | % | $ | 1,454,653 | $ | 20,575 | 5.74 | % | $ | 980,226 | $ | 13,959 | 5.73 | % | |||||||||||
| Tax-exempt | 4,095 | 54 | 5.26 | % | 4,798 | 79 | 6.62 | % | 1,730 | 57 | 13.32 | % | |||||||||||||||||
| Total loans | $ | 1,445,895 | $ | 21,605 | 5.99 | % | $ | 1,459,451 | $ | 20,654 | 5.74 | % | $ | 981,956 | $ | 14,016 | 5.74 | % | |||||||||||
| Federal funds sold | 1 | — | 0.00 | % | 3,527 | 39 | 4.53 | % | 1 | — | 0.00 | % | |||||||||||||||||
| Interest-bearing deposits with other institutions | 171,817 | 1,891 | 4.41 | % | 149,529 | 1,671 | 4.55 | % | 116,762 | 1,579 | 5.44 | % | |||||||||||||||||
| Total earning assets | $ | 1,893,133 | $ | 25,256 | 5.35 | % | $ | 1,888,428 | $ | 24,118 | 5.18 | % | $ | 1,370,072 | $ | 17,148 | 5.03 | % | |||||||||||
| Less: allowance for credit losses on loans | (14,888 | ) | (16,620 | ) | (12,588 | ) | |||||||||||||||||||||||
| Total non-earning assets | 141,099 | 145,150 | 90,995 | ||||||||||||||||||||||||||
| Total assets | $ | 2,019,344 | $ | 2,016,958 | $ | 1,448,479 | |||||||||||||||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||||||
| Interest bearing deposits: | |||||||||||||||||||||||||||||
| Checking | $ | 364,686 | $ | 1,208 | 1.33 | % | $ | 369,023 | $ | 1,232 | 1.35 | % | $ | 225,967 | $ | 1,133 | 2.02 | % | |||||||||||
| Regular savings | 212,433 | 191 | 0.36 | % | 212,594 | 175 | 0.33 | % | 143,588 | 40 | 0.11 | % | |||||||||||||||||
| Money market accounts | 329,273 | 1,869 | 2.28 | % | 339,306 | 1,962 | 2.34 | % | 293,137 | 2,005 | 2.75 | % | |||||||||||||||||
| Time deposits | 361,571 | 2,812 | 3.12 | % | 363,301 | 2,669 | 2.98 | % | 200,756 | 1,642 | 3.29 | % | |||||||||||||||||
| Total interest-bearing deposits | $ | 1,267,963 | $ | 6,080 | 1.92 | % | $ | 1,284,224 | $ | 6,038 | 1.91 | % | $ | 863,448 | $ | 4,820 | 2.24 | % | |||||||||||
| Federal funds purchased | 2 | — | 0.00 | % | 1 | — | 0.00 | % | 2 | — | 0.00 | % | |||||||||||||||||
| Subordinated debt | 21,304 | 468 | 8.80 | % | 21,247 | 467 | 8.91 | % | 4,998 | 69 | 5.57 | % | |||||||||||||||||
| Junior subordinated debt | 9,279 | 66 | 2.86 | % | 9,279 | 66 | 2.88 | % | 9,279 | 66 | 2.88 | % | |||||||||||||||||
| Other borrowings | 275 | 3 | 4.63 | % | — | — | 0.00 | % | 50,000 | 606 | 4.88 | % | |||||||||||||||||
| Total interest-bearing liabilities | $ | 1,298,823 | $ | 6,617 | 2.04 | % | $ | 1,314,751 | $ | 6,571 | 2.03 | % | $ | 927,727 | $ | 5,561 | 2.41 | % | |||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||||||||||||
| Demand deposits | 540,377 | 524,908 | 396,014 | ||||||||||||||||||||||||||
| Other liabilities | 9,224 | 9,054 | 6,483 | ||||||||||||||||||||||||||
| Total liabilities | $ | 1,848,424 | $ | 1,848,713 | $ | 1,330,224 | |||||||||||||||||||||||
| Shareholders’ equity | 170,920 | 168,245 | 118,255 | ||||||||||||||||||||||||||
| Total liabilities and Shareholders’ equity | $ | 2,019,344 | $ | 2,016,958 | $ | 1,448,479 | |||||||||||||||||||||||
| Net interest income (1) | $ | 18,639 | $ | 17,547 | $ | 11,587 | |||||||||||||||||||||||
| Interest rate spread (1) | 3.31 | % | 3.15 | % | 2.62 | % | |||||||||||||||||||||||
| Cost of funds | 1.44 | % | 1.45 | % | 1.69 | % | |||||||||||||||||||||||
| Interest expense as a percent of average earning assets | 1.40 | % | 1.41 | % | 1.63 | % | |||||||||||||||||||||||
| Net interest margin FTE (1) | 3.95 | % | 3.77 | % | 3.40 | % | |||||||||||||||||||||||
FIRST NATIONAL CORPORATION
Average Balances, Yields and Rates Paid
(in thousands)
(unaudited)
| Six Months Ended | |||||||||||||||||||||||
| June 30, 2025 | June 30, 2024 | ||||||||||||||||||||||
| Average Balance | Interest Income/ Expense | Yield / Rate (7) | Average Balance | Interest Income/ Expense | Yield / Rate (7) | ||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Securities: | |||||||||||||||||||||||
| Taxable | $ | 219,990 | $ | 2,627 | 2.41 | % | $ | 224,656 | $ | 2,358 | 2.11 | % | |||||||||||
| Tax-exempt | 51,323 | 757 | 2.98 | % | 53,634 | 773 | 2.90 | % | |||||||||||||||
| Restricted | 4,311 | 129 | 6.04 | % | 2,098 | 65 | 6.23 | % | |||||||||||||||
| Total securities | $ | 275,624 | $ | 3,513 | 2.57 | % | $ | 280,388 | $ | 3,196 | 2.29 | % | |||||||||||
| Loans: | |||||||||||||||||||||||
| Taxable | $ | 1,448,191 | $ | 42,127 | 5.87 | % | $ | 975,420 | $ | 27,443 | 5.66 | % | |||||||||||
| Tax-exempt | 4,445 | 132 | 5.99 | % | 865 | 57 | 13.32 | % | |||||||||||||||
| Total loans | $ | 1,452,636 | $ | 42,259 | 5.87 | % | $ | 976,285 | $ | 27,500 | 5.66 | % | |||||||||||
| Federal funds sold | 1,755 | 39 | 4.53 | % | 5 | — | 5.49 | % | |||||||||||||||
| Interest-bearing deposits with other institutions | 160,734 | 3,562 | 4.47 | % | 106,009 | 2,867 | 5.44 | % | |||||||||||||||
| Total earning assets | $ | 1,890,749 | $ | 49,373 | 5.27 | % | $ | 1,362,687 | $ | 33,563 | 4.95 | % | |||||||||||
| Less: allowance for credit losses on loans | (15,749 | ) | (12,284 | ) | |||||||||||||||||||
| Total non-earning assets | 145,425 | 87,816 | |||||||||||||||||||||
| Total assets | $ | 2,020,425 | $ | 1,438,219 | |||||||||||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
| Interest bearing deposits: | |||||||||||||||||||||||
| Checking | $ | 366,843 | $ | 2,439 | 1.34 | % | $ | 254,248 | $ | 2,455 | 1.94 | % | |||||||||||
| Regular savings | 212,513 | 366 | 0.35 | % | 145,763 | 82 | 0.11 | % | |||||||||||||||
| Money market accounts | 334,261 | 3,831 | 2.31 | % | 267,797 | 3,847 | 2.89 | % | |||||||||||||||
| Time deposits | 362,431 | 5,481 | 3.05 | % | 198,910 | 3,207 | 3.24 | % | |||||||||||||||
| Total interest-bearing deposits | $ | 1,276,048 | $ | 12,117 | 1.91 | % | $ | 866,718 | $ | 9,591 | 2.23 | % | |||||||||||
| Federal funds purchased | 1 | — | 0.00 | % | 1 | — | 0.00 | % | |||||||||||||||
| Subordinated debt | 22,500 | 935 | 8.38 | % | 4,998 | 138 | 5.57 | % | |||||||||||||||
| Junior subordinated debt | 9,279 | 132 | 2.87 | % | 9,279 | 134 | 2.90 | % | |||||||||||||||
| Other borrowings | 138 | 3 | 4.63 | % | 50,000 | 1,182 | 4.75 | % | |||||||||||||||
| Total interest-bearing liabilities | $ | 1,307,966 | $ | 13,187 | 2.03 | % | $ | 930,996 | $ | 11,045 | 2.39 | % | |||||||||||
| Non-interest bearing liabilities | |||||||||||||||||||||||
| Demand deposits | 533,596 | 383,956 | |||||||||||||||||||||
| Other liabilities | 9,150 | 5,879 | |||||||||||||||||||||
| Total liabilities | $ | 1,850,712 | $ | 1,320,831 | |||||||||||||||||||
| Shareholders’ equity | 169,713 | 117,388 | |||||||||||||||||||||
| Total liabilities and Shareholders’ equity | $ | 2,020,425 | $ | 1,438,219 | |||||||||||||||||||
| Net interest income (1) | $ | 36,186 | $ | 22,518 | |||||||||||||||||||
| Interest rate spread (1) | 3.23 | % | 2.55 | % | |||||||||||||||||||
| Cost of funds | 1.44 | % | 1.69 | % | |||||||||||||||||||
| Interest expense as a percent of average earning assets | 1.41 | % | 1.62 | % | |||||||||||||||||||
| Net interest margin FTE (1) | 3.86 | % | 3.31 | % | |||||||||||||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)
(unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | ||||||||||||||||
| Operating Net Income | ||||||||||||||||||||
| Net income (GAAP) | $ | 5,051 | $ | 1,598 | $ | 2,442 | $ | 6,649 | $ | 5,651 | ||||||||||
| Add: Merger-related expenses | 92 | 1,940 | 571 | 2,032 | 571 | |||||||||||||||
| Subtract: Tax effect of adjustment (5) | (10 | ) | (381 | ) | (5 | ) | (391 | ) | (5 | ) | ||||||||||
| Adjusted operating net income (non-GAAP) | $ | 5,133 | $ | 3,157 | $ | 3,008 | $ | 8,290 | $ | 6,217 | ||||||||||
| Adjusted Earnings Per Share, Basic | ||||||||||||||||||||
| Weighted average shares, basic | 8,987,179 | 8,979,527 | 6,278,113 | 8,983,374 | 6,273,952 | |||||||||||||||
| Basic earnings per share (GAAP) | $ | 0.56 | $ | 0.18 | $ | 0.39 | $ | 0.74 | $ | 0.90 | ||||||||||
| Adjusted earnings per share, basic (non-GAAP) | $ | 0.57 | $ | 0.35 | $ | 0.48 | $ | 0.92 | $ | 0.99 | ||||||||||
| Adjusted Earnings Per Share, Diluted | ||||||||||||||||||||
| Weighted average shares, diluted | 9,001,972 | 9,005,923 | 6,289,405 | 9,003,969 | 6,285,970 | |||||||||||||||
| Diluted earnings per share (GAAP) | $ | 0.56 | $ | 0.18 | $ | 0.39 | $ | 0.74 | $ | 0.90 | ||||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.57 | $ | 0.35 | $ | 0.48 | $ | 0.92 | $ | 0.99 | ||||||||||
| Adjusted Pre-Provision, Pre-Tax Earnings | ||||||||||||||||||||
| Net interest income | $ | 18,548 | $ | 17,451 | $ | 11,494 | $ | 35,999 | $ | 22,344 | ||||||||||
| Total noninterest income | 3,889 | 3,611 | 2,686 | 7,500 | 6,733 | |||||||||||||||
| Net revenue | $ | 22,437 | $ | 21,062 | $ | 14,180 | $ | 43,499 | $ | 29,077 | ||||||||||
| Total noninterest expense | 15,191 | 18,335 | 10,659 | 33,526 | 20,546 | |||||||||||||||
| Pre-provision, pre-tax earnings | $ | 7,246 | $ | 2,727 | $ | 3,521 | $ | 9,973 | $ | 8,531 | ||||||||||
| Add: Merger expenses | 92 | 1,940 | 571 | 2,032 | 571 | |||||||||||||||
| Adjusted pre-provision, pre-tax, earnings | $ | 7,338 | $ | 4,667 | $ | 4,092 | $ | 12,005 | $ | 9,102 | ||||||||||
| Adjusted Performance Ratios | ||||||||||||||||||||
| Average assets | $ | 2,019,344 | $ | 2,016,958 | $ | 1,448,478 | $ | 2,020,425 | $ | 1,438,219 | ||||||||||
| Return on average assets (GAAP) | 1.00 | % | 0.32 | % | 0.68 | % | 0.66 | % | 0.79 | % | ||||||||||
| Adjusted return on average assets (non-GAAP) | 1.02 | % | 0.63 | % | 0.84 | % | 0.83 | % | 0.86 | % | ||||||||||
| Average shareholders’ equity | $ | 170,920 | $ | 168,245 | $ | 118,255 | $ | 169,713 | $ | 117,388 | ||||||||||
| Return on average equity (GAAP) | 11.85 | % | 3.85 | % | 8.31 | % | 7.90 | % | 9.68 | % | ||||||||||
| Adjusted return on average equity (non-GAAP) | 12.05 | % | 7.61 | % | 10.23 | % | 11.19 | % | 10.65 | % | ||||||||||
| Pre-provision, pre-tax return on average assets (non-GAAP) | 1.44 | % | 0.54 | % | 0.97 | % | 0.99 | % | 1.19 | % | ||||||||||
| Adjusted pre-provision, pre-tax return on average assets (non-GAAP) | 1.45 | % | 0.93 | % | 1.13 | % | 1.19 | % | 1.27 | % | ||||||||||
| Adjusted Net Interest Margin | ||||||||||||||||||||
| Net interest income | $ | 18,548 | $ | 17,451 | $ | 11,494 | $ | 35,999 | $ | 22,344 | ||||||||||
| Tax-equivalent net interest income (non-GAAP) | 18,639 | 17,547 | 11,587 | 36,186 | 22,518 | |||||||||||||||
| Average earning assets | 1,893,133 | 1,888,428 | 1,370,072 | 1,890,749 | 1,362,687 | |||||||||||||||
| Net interest margin | 3.93 | % | 3.75 | % | 3.37 | % | 3.84 | % | 3.30 | % | ||||||||||
| Net interest margin fully tax equivalent (non-GAAP) | 3.95 | % | 3.77 | % | 3.40 | % | 3.86 | % | 3.31 | % | ||||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands)
(unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | ||||||||||||||||
| Efficiency Ratio | ||||||||||||||||||||
| Total noninterest expense (GAAP) | $ | 15,191 | $ | 18,335 | $ | 10,659 | $ | 33,526 | $ | 20,546 | ||||||||||
| Add: other real estate owned income, net | 3 | 8 | — | 11 | — | |||||||||||||||
| Subtract: amortization of intangibles | (441 | ) | (442 | ) | (5 | ) | (883 | ) | (9 | ) | ||||||||||
| Subtract: loss on disposal of premises and equipment, net | 7 | — | — | 7 | (49 | ) | ||||||||||||||
| Subtract: merger expenses | (92 | ) | (1,940 | ) | (571 | ) | (2,032 | ) | (571 | ) | ||||||||||
| Adjusted operating non-interest expense (non-GAAP) | $ | 14,668 | $ | 15,961 | $ | 10,083 | $ | 30,629 | $ | 19,917 | ||||||||||
| Tax-equivalent net interest income (non-GAAP) | $ | 18,639 | $ | 17,547 | $ | 11,587 | $ | 36,186 | $ | 22,518 | ||||||||||
| Total noninterest income (GAAP) | 3,889 | 3,611 | 2,686 | 7,500 | 6,733 | |||||||||||||||
| Adjusted income for efficiency ratio (non-GAAP) | $ | 22,528 | $ | 21,158 | $ | 14,273 | $ | 43,686 | $ | 29,251 | ||||||||||
| Efficiency ratio (non-GAAP) | 65.11 | % | 75.44 | % | 70.64 | % | 70.11 | % | 68.09 | % | ||||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)
(unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 | Jun 30, 2024 | ||||||||||||||||
| Tax-Equivalent Net Interest Income | ||||||||||||||||||||
| GAAP measures: | ||||||||||||||||||||
| Interest income – loans | $ | 21,594 | $ | 20,639 | $ | 14,004 | $ | 42,231 | $ | 27,488 | ||||||||||
| Interest income – investments and other | 3,571 | 3,383 | 3,051 | 6,956 | 5,901 | |||||||||||||||
| Interest expense – deposits | (6,080 | ) | (6,038 | ) | (4,820 | ) | (12,118 | ) | (9,591 | ) | ||||||||||
| Interest expense – federal funds purchased | — | — | — | — | — | |||||||||||||||
| Interest expense – subordinated debt | (468 | ) | (467 | ) | (69 | ) | (935 | ) | (138 | ) | ||||||||||
| Interest expense – junior subordinated debt | (66 | ) | (66 | ) | (66 | ) | (132 | ) | (134 | ) | ||||||||||
| Interest expense – other borrowings | (3 | ) | — | (606 | ) | (3 | ) | (1,182 | ) | |||||||||||
| Net interest income | $ | 18,548 | $ | 17,451 | $ | 11,494 | $ | 35,999 | $ | 22,344 | ||||||||||
| Non-GAAP measures: | ||||||||||||||||||||
| Add: Tax benefit realized on non-taxable interest income – loans (6) | $ | 12 | $ | 16 | $ | 12 | $ | 28 | $ | 12 | ||||||||||
| Add: Tax benefit realized on non-taxable interest income – municipal securities (6) | 79 | 80 | 81 | 159 | 162 | |||||||||||||||
| Tax benefit realized on non-taxable interest income | $ | 91 | $ | 96 | $ | 93 | $ | 187 | $ | 174 | ||||||||||
| Tax-equivalent net interest income | $ | 18,639 | $ | 17,547 | $ | 11,587 | $ | 36,186 | $ | 22,518 | ||||||||||
| Tangible Common Equity and Tangible Assets | ||||||||||||||||||||
| Total assets (GAAP) | $ | 2,041,441 | $ | 2,033,346 | $ | 1,457,528 | $ | 2,041,441 | $ | 1,457,528 | ||||||||||
| Subtract: goodwill | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | ||||||||||
| Subtract: core deposit intangibles, net | (14,102 | ) | (14,544 | ) | (108 | ) | (14,102 | ) | (108 | ) | ||||||||||
| Tangible assets (Non-GAAP) | $ | 2,024,309 | $ | 2,015,772 | $ | 1,454,390 | $ | 2,024,309 | $ | 1,454,390 | ||||||||||
| Total shareholders’ equity (GAAP) | $ | 173,532 | $ | 168,675 | $ | 119,891 | $ | 173,532 | $ | 119,891 | ||||||||||
| Subtract: goodwill | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | ||||||||||
| Subtract: core deposit intangibles, net | (14,102 | ) | (14,544 | ) | (108 | ) | (14,102 | ) | (108 | ) | ||||||||||
| Tangible common equity (Non-GAAP) | $ | 156,400 | $ | 151,101 | $ | 116,753 | $ | 156,400 | $ | 116,753 | ||||||||||
| Tangible common equity to tangible assets ratio (non-GAAP) | 7.73 | % | 7.50 | % | 8.03 | % | 7.73 | % | 8.03 | % | ||||||||||
| Tangible Book Value Per Share | ||||||||||||||||||||
| Tangible common equity (non-GAAP) | $ | 156,400 | $ | 151,101 | $ | 116,753 | $ | 156,400 | $ | 116,753 | ||||||||||
| Common shares outstanding, ending | 8,989,138 | 8,986,696 | 6,280,406 | 8,989,138 | 6,280,406 | |||||||||||||||
| Tangible book value per share (non-GAAP) | $ | 17.40 | $ | 16.81 | $ | 18.59 | $ | 17.40 | $ | 18.59 | ||||||||||
| (1) | Non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” tables for additional information and detailed calculations of adjustments. |
| (2) | All ratios at June 30, 2025 are estimates and subject to change pending the Bank's filing of its Call Report. All other periods are presented as filed. |
| (3) | 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. |
| (4) | Ratios are annualized. |
| (5) | Capital ratios presented are for First Bank. |
| (6) | The tax rate utilized in calculating the tax benefit is |
| (7) | Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of |
FAQ
What were First National Corporation's (FXNC) Q2 2025 earnings per share?
How did FXNC's net interest margin perform in Q2 2025?
What is First National Corporation's deposit composition as of Q2 2025?
How has FXNC's asset quality changed in Q2 2025?
What is FXNC's capital position as of Q2 2025?
