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Earnings jump at First National (NASDAQ: FXNC) with higher Q1 2026 EPS

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(Very High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

First National Corporation reported strong first quarter 2026 results. Net income rose to $4.9 million, with basic and diluted earnings per share of $0.54 for the quarter ended March 31, 2026, up sharply from $0.18 a year earlier.

Profitability improved, with return on average assets at 0.98% and return on average equity at 10.51%. The fully tax-equivalent net interest margin expanded to 3.99%, supported by disciplined funding costs and acquisition-related accretion. Asset quality remained solid as nonperforming assets fell to 0.21% of total assets and coverage ratios increased.

Balance sheet growth was modest but healthy. Net loans increased by $14.7 million, a 4.0% annualized pace, while deposits grew $37.7 million, or 8.4% annualized, driven by lower-cost deposit categories. Tangible book value per share increased to $19.11, and regulatory capital ratios at both the holding company and bank stayed comfortably above required levels.

Positive

  • Earnings and profitability improved markedly, with Q1 2026 net income of $4.9 million and EPS of $0.54 versus $0.18 a year earlier, alongside stronger return on average assets (0.98%) and return on average equity (10.51%).

Negative

  • None.

Insights

Q1 2026 shows sharply higher earnings, solid credit, and steady growth.

First National delivered net income of $4.9 million and EPS of $0.54, versus $0.18 a year earlier, reflecting improved core profitability after prior merger-related noise. Return on average assets reached 0.98% and return on equity was 10.51%, both meaningfully higher year over year.

Core banking trends were constructive. The fully tax-equivalent net interest margin was 3.99%, up from 3.77% in Q1 2025, even as average earning-asset yields eased slightly versus the prior quarter. Net loans grew $14.7 million (4.0% annualized), while deposits increased $37.7 million (8.4% annualized), led by lower-cost transactional and savings balances.

Credit quality and capital metrics remained supportive. Nonperforming assets declined to 0.21% of total assets, with allowance coverage of nonperforming assets above 300%. Tangible book value per share rose to $19.11, and total risk-based capital at the bank level was 13.75%. Future quarters will show whether late-quarter loan production sustains this growth and earnings level.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income $4.9 million For the quarter ended March 31, 2026
Earnings per share $0.54 basic and diluted Q1 2026, versus $0.18 in Q1 2025
Return on average assets 0.98% Q1 2026 annualized
Return on average equity 10.51% Q1 2026 annualized
Net interest margin FTE 3.99% For the first quarter of 2026
Net loan growth $14.7 million (4.0% annualized) Q1 2026 increase in loans held for investment
Deposit growth $37.7 million (8.4% annualized) Q1 2026 increase in total deposits
Tangible book value per share $19.11 As of March 31, 2026
net interest margin financial
"For the first quarter of 2026, the Company’s net interest margin fully tax equivalent ("FTE")(1) was 3.99%"
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.
allowance for credit losses financial
"The allowance for credit losses on loans totaled $14.7 million, or 1.00% of total loans on March 31, 2026"
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.
non-performing assets financial
"Asset quality improved with non-performing assets declining to 0.21% of total assets"
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.
tangible book value per share financial
"Tangible book value per share(1) grew to $19.11 at March 31, 2026"
Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.
efficiency ratio financial
"Efficiency ratio (1) 68.86 % for the three months ended March 31, 2026"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
tax-equivalent net interest income financial
"Tax-equivalent net interest income (non-GAAP) was $18,764 for the three months ended March 31, 2026"
Tax-equivalent net interest income converts income that is sheltered from taxes (such as interest from certain municipal securities) into the amount it would have been if taxed, so all interest receipts can be compared on the same after-tax basis. For investors this matters because it reveals the true, apples-to-apples contribution of different interest sources to a lender’s earnings and helps assess profitability and value as if all income faced the same tax treatment.
Net income $4.9 million vs $1.6 million in Q1 2025
EPS (diluted) $0.54 vs $0.18 in Q1 2025
Net interest income $18.7 million vs $17.5 million in Q1 2025
Net interest margin FTE 3.99% vs 3.77% in Q1 2025
Return on average assets 0.98% vs 0.32% in Q1 2025
Understanding 8-K Material Events →
false 0000719402 0000719402 2026-04-30 2026-04-30
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
___________
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): April 30, 2026
___________
 
FIRST NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
 
Virginia
(State or other jurisdiction of incorporation)
1-38874
(Commission File Number)
54-1232965
(IRS Employer Identification No.)
 
112 West King Street
Strasburg, Virginia
(Address of principal executive offices)
 
22657
(Zip Code)
 
Registrant’s telephone number, including area code: (540) 465-9121
 
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $1.25 per share
FXNC
The Nasdaq Stock Market LLC
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
 
      Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
 
 
 
 
Item 2.02
Results of Operations and Financial Condition.
 
On April 30, 2026, First National Corporation issued a press release reporting its financial results for the period ended March 31, 2026.  A copy of the press release is being furnished as an exhibit to this report and is incorporated by reference into this Item 2.02.
 
Item 9.01
Financial Statements and Exhibits.
 
(d)
Exhibits. The following exhibit is being furnished pursuant to Item 2.02 above.
 
Exhibit No.
Description
 
 
99.1
Press Release dated April 30, 2026
   
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
2
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
FIRST NATIONAL CORPORATION
 
(Registrant)
 
 
 
 
 
 
 
 
 
Date:  April 30, 2026
By:
/s/ Brad E. Schwartz
 
 
 
 Brad E. Schwartz
 
 
 
Executive Vice President and Chief Financial Officer
 
 
3
 

Exhibit 99.1

logo.jpg

 

First National Corporation Reports FIRST Quarter 2026 EARNINGS

 

STRASBURG, Va., April 30, 2026 --- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of First Bank (the “Bank”), reported consolidated net income of $4.9 million and basic and diluted earnings per common share of $0.54 for the first quarter ended March 31, 2026. 

 

“After a slow start to the first quarter, loan production picked up in March and lifted loan balances for the quarter. Deposit flows were also strong in the quarter with an eight percent annualized growth rate. We were excited to see our recently hired bankers teaming up with our legacy bankers to produce solid success on both sides of the balance sheet. With fewer days, the first quarter is typically the most challenging of the year for profitability, yet we were pleased to exceed our budgeted metrics for earnings, deposits, loans, and asset quality.  We expect that the loan production late in the quarter will reap benefits going forward and we will begin the year with good momentum.” said Scott C. Harvard, President and Chief Executive Officer of First National.

 

FINANCIAL HIGHLIGHTS FOR FIRST QUARTER 2026

 

  ● Diluted earnings per share of $0.54 per share, compared to $0.18 one year prior, and $0.61 in the previous quarter
  ● Adjusted diluted earnings per share(1) of $0.54 per share, compared to $0.35 one year prior adjusted for merger expenses
  ● Return on average assets of 0.98% compared to 0.32% one year prior, and 1.06% in the previous quarter
  ● Return on average equity of 10.51% compared to 3.85% one year prior, and 11.86% in the previous quarter
  ● Tax equivalent(1) net interest margin of 3.99%, up from 3.77% one year prior, and 3.95% in the previous quarter
  ● Asset quality improved with non-performing assets declining to 0.21% of total assets
  ● Net loan growth of $14.7 million for the quarter, a 4.0% annualized growth rate
  ● Deposit growth of $37.7 million, an 8.4% annualized growth rate, in lower cost demand deposits and interest-bearing checking, money market, and savings accounts.  Time deposits declined slightly during the quarter
  ● Noninterest bearing deposits of $524.3 million, or 29% of deposits, contributed to our low funding cost

 

NET INTEREST INCOME

 

For the first quarter of 2026, the Company’s net interest margin fully tax equivalent ("FTE")(1) was 3.99%, compared to 3.95% for the fourth quarter of 2025 and 3.77% in the first quarter of 2025. The Company’s net interest margin (FTE)(1) for the first quarter of 2026 includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting was $211 thousand, a 4-basis point incremental increase to the net interest margin for the first quarter ended March 31, 2026. Prior period acquisition accounting resulted in net accretion income of $201 thousand, or a 5-basis point incremental increase to the net interest margin for the quarter ended December 31, 2025, and net amortization expense of $36 thousand, or a one basis point incremental decrease to the net interest margin for the first quarter ended March 31, 2025.

 

Earning asset yields for the first quarter of 2026 decreased 4-basis points to 5.20% compared to the fourth quarter of 2025. For the first quarter of 2026, net interest income was $18.8 million, a decrease of $276 thousand from $19.0 million in the fourth quarter of 2025 due to a decrease in average interest-earning assets.  Loan growth occurred late in the first quarter of 2026 and was negative in the first two months of the quarter, limiting interest income growth for the quarter. 

 

1
 

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

 

For the quarter ended:

  

Mar 31, 2026

    

Dec 31, 2025

    

Mar 31, 2025

  

Loans

   $ 294     $ 283     $ (194 )

Deposits

     (10 )     (10 )     443  

Borrowings

     (73 )     (72 )     (285 )
    $ 211     $ 201     $ (36 )

 

 
ALLOWANCE AND PROVISION FOR CREDIT LOSSES

 

The Company recorded a $450 thousand provision for credit losses in the first quarter of 2026, compared to $951 thousand for the fourth quarter of 2025. The first quarter provision was comprised of a $521 thousand provision for credit losses on loans, a $56 thousand reduction in provision for credit losses on unfunded commitments, and a $15 thousand reduction in the credit losses on securities.  Net charge-offs totaled $542 thousand in the first quarter of 2026, compared to net charge-offs of $651 thousand in the fourth quarter of 2025 and net charge-offs of $2.4 million in the first quarter of 2025.

 

The allowance for credit losses on loans totaled $14.7 million, or 1.00% of total loans on March 31, 2026, compared to $14.7 million, or 1.02% of total loans on December 31, 2025, and $14.7 million, or 1.02% of total loans on March 31, 2025. The decrease in allowance for credit losses to total loans from the prior period is primarily driven by lower individually analyzed loans balances following charge-offs recorded during the quarter. The allowance for credit losses to non-performing assets coverage increased to 331% on March 31, 2026, compared to 316% on December 31, 2025, and 303% on March 31, 2025. 

 

NONINTEREST INCOME AND EXPENSE

 

Noninterest income decreased $1.2 million to $3.8 million for the first quarter of 2026 from $5.0 million in the prior quarter. This decrease was primarily due to a one-time recovery, recognized in the prior period, of $895 thousand related to an acquired loan that was charged off prior to the acquisition of Touchstone Bank. The decrease in noninterest income includes additional decreases in income from bank owned life insurance, decreases in ATM and check card income, and decreases in brokered mortgage fees compared to the prior quarter. 

 

Adjusted operating noninterest income(1), which excludes the loan recovery ($895 thousand in the fourth quarter of 2025), decreased $299 thousand to $3.8 million for the first quarter of 2026 from $4.1 million in the prior quarter, due to nominal decreases in income from bank owned life insurance, in ATM and check card income, and in brokered mortgage fees.

 

Noninterest expense decreased $143 thousand to $16.0 million for the first quarter of 2026 from $16.1 million in the prior quarter. Decreases in other operating expenses, merger expenses, data processing expense, and equipment expense were partially offset by the increase in salaries and employee benefits. Merger expenses in the prior quarter were incurred due to the one-time early lease termination of $127 thousand for the now closed Raleigh loan production office acquired in the Touchstone Bank merger. 

 

Adjusted operating noninterest expense(1), which excludes the Raleigh LPO lease termination in the fourth quarter of 2025 and amortization of intangible assets ($434 thousand in the first quarter of 2026 and $442 thousand in the fourth quarter of 2025), decreased $8 thousand to $15.5 million for the first quarter of 2026 from $15.6 million in the prior quarter, due to decreases in equipment expense, data processing expense, and other operating expense that were offset by increases in salaries and employee benefits.

 

INCOME TAXES

 

Income tax expense was $1.2 million for the first quarter of 2026, compared to $1.4 million for the fourth quarter of 2025.  The effective tax rate of 19.5% for the first quarter of 2026 decreased from 20.2% in the fourth quarter of 2025.  This decreased effective tax rate in the first quarter was driven by the impact of nondeductible merger expenses in the prior quarter. 

 

2
 
 
BALANCE SHEET
 
On March 31, 2026, total assets were $2.076 billion, an increase of $37.8 million or 1.9% (7.5% annualized) from December 31, 2025, and an increase of $42.5 million or 2.1% (8.5% annualized) from March 31, 2025. Total assets increased from the prior quarter due to loan growth and increased cash and cash equivalents, and the increase from the prior year was driven by loan growth and additional investment in securities available for sale.
 

On March 31, 2026, loans held for investment ("LHFI") net of allowance totaled $1.450 billion, an increase of $14.7 million or 4.0% annualized from $1.435 billion on December 31, 2025, and an increase of $13.8 million or 4.0% annualized from March 31, 2025. Loans grew in the first quarter of 2026 due to higher new loan production.

 

On March 31, 2026, total investments were $324.6 million, a decrease of $1.5 million or 0.5% from December 31, 2025, and an increase of $50.9 million or 18.6% from March 31, 2025. Available for sale ("AFS") securities totaled $217.7 million on March 31, 2026, and $217.5 million on December 31, 2025, and $161.0 million on March 31, 2025. The increase compared to the prior year was driven by security purchases exceeding portfolio cashflows and utilization of excess cash from the Touchstone Bank acquisition. Total net unrealized losses on the AFS securities portfolio were $16.2 million on March 31, 2026, compared to $14.8 million on December 31, 2025, and $20.1 million on March 31, 2025. Held to maturity securities are carried at amortized cost and totaled $101.3 million on March 31, 2026, $102.9 million on December 31, 2025, and $108.3 million on March 31, 2025.

 

On March 31, 2026, total deposits were $1.837 billion, an increase of $37.7 million or 2.1% from the prior quarter, and an increase of $12.3 million or 0.7% from March 31, 2025. Overall, the deposit balances were relatively stable in comparison with the prior quarter and the prior year with increases primarily in savings and interest-bearing demand deposits. There were $25.0 million in other borrowings with the Federal Home Loan Bank on March 31, 2026, and December 31, 2025, compared to no other borrowings on March 31, 2025.

 

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 $764.2 million on March 31, 2026, $743.0 million on December 31, 2025, and $800.2 million on March 31, 2025.

 

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 $558.9 million on March 31, 2026, $538.2 million on December 31, 2025, and $549.3 million on March 31, 2025. Excluding municipal deposits that have collateral pledged, the estimated amount of uninsured customer deposits totaled $461.3 million on March 31, 2026, $448.8 million on December 31, 2025, and $458.7 million on March 31, 2025.

 

ASSET QUALITY

 

Overall non-performing assets ("NPAs") improved over the prior period and prior year as previously reserved loans were charged off in the first quarter of 2026. Management classifies NPAs as non-accrual loans and other real estate owned ("OREO"). The Bank had no OREO on March 31, 2026, December 31, 2025, or March 31, 2025. NPAs as a percentage of total loans declined to 0.30% on March 31, 2026, down from 0.32% on December 31, 2025, and down from 0.34% on March 31, 2025. NPAs decreased by $209 thousand to $4.4 million on March 31, 2026, compared to $4.7 million on December 31, 2025, and $4.9 million on March 31, 2025.

 

There were no loans past due over 90 days or more and still accruing interest on March 31, 2026, December 31, 2025, or March 31, 2025. Loans past-due 30-89 days and still accruing interest increased to $5.0 million, or 0.34% of total loans on March 31, 2026, compared to $3.8 million, or 0.26% of total loans on December 31, 2025, and $5.0 million, or 0.35%, of total loans on March 31, 2025.  The health care provider portfolio balance continues to decline with $9.1 million in loan balances and $3.7 million in unamortized premiums. The portfolio has loans totaling $1.8 million currently on non-accrual that are specifically reserved for $1.2 million. 

 

3
 

 

CAPITAL

 

During the first quarter of 2026, the Company declared and paid cash dividends of $0.17 per common share, compared to $0.17 in the fourth quarter of 2025 and $0.155 in the first quarter of 2025. Tangible book value per share(1) grew to $19.11 at March 31, 2026, from $18.83 per share at December 31, 2025, and $16.81 at March 31, 2025.

 

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

 

First National Corporation (2)

 Mar 31, 2026     Dec 31, 2025     Mar 31, 2025  

Total risk-based capital ratio

   14.64 %   14.53 %   14.58 %

Tier 1 risk-based capital ratio

   13.06 %   12.93 %   12.07 %

Common equity Tier 1 capital ratio

   12.44 %   12.30 %   11.44 %

Leverage ratio

   9.65 %   9.29 %   8.78 %

Tangible common equity to tangible assets (1)

   8.39 %   8.41 %   7.50 %

Tangible book value per share (1)

 $ 19.11   $ 18.83   $ 16.81  
                   

First Bank

 Mar 31, 2026   Dec 31, 2025   Mar 31, 2025  

Total risk-based capital ratio (3)

   13.75 %   13.64 %   12.44 %

Tier 1 risk-based capital ratio (3)

   12.73 %   12.59 %   11.39 %

Common equity Tier 1 capital ratio (3)

   12.73 %   12.59 %   11.39 %

Leverage ratio (3)

   9.38 %   9.13 %   8.28 %

Tangible common equity to tangible assets (1)

   8.49 %   8.51 %   7.35 %

  

 

4
 

 

 

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 bankers, consumer and business mobile banking platforms, a network of ATMs located throughout its market area, a loan production office, a customer service center in a retirement community, and thirty-three banking 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, 2025 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

 

5
 

FIRST NATIONAL CORPORATION

Performance Summary

(in thousands)

(unaudited)

                                        
   

For the Three Months Ended

  
   

Mar 31, 2026

    

Dec 31, 2025

    

Sep 30, 2025

    

Jun 30, 2025

    

Mar 31, 2025

  

Income Statement

                                        

Interest and dividend income

                                        

Interest and fees on loans

   $ 21,017     $ 21,513     $ 21,430     $ 21,594     $ 20,639  

Interest on deposits in banks

     1,170       1,618       1,733       1,891       1,671  

Interest on federal funds sold

     —       1       1       —       39  

Taxable interest on securities

     1,786       1,734       1,562       1,313       1,314  

Tax-exempt interest on securities

     292       292       296       298       300  

Dividends

     64       66       65       69       59  

Total interest and dividend income

   $ 24,329     $ 25,224     $ 25,087     $ 25,165     $ 24,022  

Interest expense

                                        

Interest on deposits

   $ 5,414     $ 5,929     $ 6,246     $ 6,080     $ 6,038  

Interest on subordinated debt

     168       273       479       468       467  

Interest on junior subordinated debt

     66       67       67       66       66  

Interest on other borrowings

     5       3       —       3       —  

Total interest expense

   $ 5,653     $ 6,272     $ 6,792     $ 6,617     $ 6,571  

Net interest income

   $ 18,676     $ 18,952     $ 18,295     $ 18,548     $ 17,451  

Provision for credit losses

     450       951       193       911       832  

Net interest income after provision for credit losses

   $ 18,226     $ 18,001     $ 18,102     $ 17,637     $ 16,619  

Noninterest income

                                        

Service charges on deposit accounts

   $ 924     $ 937     $ 985     $ 1,020     $ 1,013  

ATM and check card fees

     1,047       1,124       1,336       1,128       996  

Wealth management fees

     911       936       910       867       898  

Fees for other customer services

     287       292       407       230       258  

Brokered mortgage fees

     115       190       166       183       110  

Income from bank owned life insurance

     259       383       284       231       246  

Net gains on securities available for sale

     8       —       —       —       —  

Net gains on sale of loans held for sale

     1       3       5       —       —  

Bargain purchase gain

     —       —       304       —       —  

Net gain on subordinated debt payoff

     —       —       —       80       —  

Other operating income

     272       1,153       103       150       90  

Total noninterest income

   $ 3,824     $ 5,018     $ 4,500     $ 3,889     $ 3,611  

Noninterest expense

                                        

Salaries and employee benefits

   $ 8,982     $ 8,454     $ 8,487     $ 8,033     $ 8,689  

Occupancy

     972       996       1,025       944       1,069  

Equipment

     1,093       1,167       1,056       1,057       1,025  

Marketing

     341       350       324       286       220  

Supplies

     146       207       158       198       217  

Legal and professional fees

     688       667       660       594       522  

ATM and check card expense

     571       570       569       537       439  

FDIC assessment

     227       258       305       315       414  

Bank franchise tax

     380       349       350       348       317  

Data processing expense

     394       501       495       504       762  

Core deposit intangible amortization expense

     434       442       442       441       442  

Other real estate owned expense (income), net

     —       —       —       —       (8 )

Net (gain) loss on disposal of premises and equipment

     —       —       (7 )     7       —  

Merger expense

     —       127       —       92       1,940  

Other operating expense

     1,754       2,037       1,918       1,835       2,287  

Total noninterest expense

   $ 15,982     $ 16,125     $ 15,782     $ 15,191     $ 18,335  

Income before income taxes

   $ 6,068     $ 6,894     $ 6,820     $ 6,335     $ 1,895  

Income tax expense

     1,181       1,390       1,270       1,284       297  

Net income

   $ 4,887     $ 5,504     $ 5,550     $ 5,051     $ 1,598  

 

6
 

FIRST NATIONAL CORPORATION

Performance Summary

(in thousands, except share and per share data)

(unaudited)

                                        
   

For the Three Months Ended

  
   

Mar 31, 2026

    

Dec 31, 2025

    

Sep 30, 2025

    

Jun 30, 2025

    

Mar 31, 2025

  

Common Share and Per Common Share Data

                                        

Earnings per common share, basic

   $ 0.54     $ 0.61     $ 0.62     $ 0.56     $ 0.18  

Adjusted earnings per common share, basic (1)

   $ 0.54     $ 0.62     $ 0.58     $ 0.57     $ 0.35  

Weighted average shares, basic

     9,031,591       9,011,378       8,999,153       8,987,179       8,979,527  

Earnings per common share, diluted

   $ 0.54     $ 0.61     $ 0.62     $ 0.56     $ 0.18  

Adjusted earnings per common share, diluted (1)

   $ 0.54     $ 0.62     $ 0.58     $ 0.57     $ 0.35  

Weighted average shares, diluted

     9,047,416       9,030,437       9,023,185       9,001,972       9,005,923  

Shares outstanding at period end

     9,040,967       9,025,395       9,009,209       8,989,138       8,986,696  

Tangible book value per share at period end (1)

   $ 19.11     $ 18.83     $ 18.26     $ 17.40     $ 16.81  

Market price per share at period end

   $ 26.92     $ 25.24     $ 22.68     $ 19.47     $ 22.45  

Cash dividends declared

   $ 0.170     $ 0.170     $ 0.155     $ 0.155     $ 0.155  
                                         

Key Performance Ratios

                                        

Return on average assets (4)

     0.98 %     1.06 %     1.09 %     1.00 %     0.32 %

Adjusted return on average assets (1)(4)

     0.98 %     1.08 %     1.03 %     1.02 %     0.63 %

Return on average equity (4)

     10.51 %     11.86 %     12.43 %     11.85 %     3.85 %

Adjusted return on average equity (1)(4)

     10.51 %     12.08 %     11.75 %     12.05 %     7.61 %

Net interest margin (4)

     3.98 %     3.93 %     3.83 %     3.93 %     3.75 %

Net interest margin fully tax equivalent (1)(4)

     3.99 %     3.95 %     3.84 %     3.95 %     3.77 %

Efficiency ratio (1)

     68.86 %     67.16 %     67.97 %     65.27 %     75.44 %
                                         

Average Balances

                                        

Average assets

   $ 2,026,947     $ 2,061,973     $ 2,022,958     $ 2,019,344     $ 2,016,958  

Average earning assets

     1,905,400       1,914,802       1,897,328       1,893,133       1,888,427  

Average noninterest deposits to total average deposits

     27.96 %     29.28 %     29.13 %     29.88 %     29.01 %

Average shareholders’ equity

   $ 188,585     $ 184,167       177,130     $ 170,920       168,245  
                                         

Asset Quality

                                        

Allowance for credit losses on loans to nonperforming assets

     330.66 %     316.27 %     253.37 %     223.45 %     302.94 %

Allowance for credit losses on loans to period end loans

     1.00 %     1.02 %     1.01 %     1.05 %     1.02 %

Nonperforming assets to period end loans

     0.30 %     0.32 %     0.40 %     0.47 %     0.34 %

Nonperforming assets to total assets

     0.21 %     0.23 %     0.28 %     0.33 %     0.24 %

Loan charge-offs

   $ 709     $ 753     $ 1,027     $ 535     $ 2,490  

Loan recoveries

     167       102       88       87       89  

Net charge-offs

     542       651       939       448       2,401  

Non-accrual loans

     4,445       4,654       5,702       6,796       4,864  

Other real estate owned, net

     —       —       —       —       —  

Nonperforming assets

     4,445       4,654       5,702       6,796       4,864  

Loans 30 to 89 days past due, accruing

     5,025       3,830       3,580       3,190       5,021  

Loans over 90 days past due, accruing

     —       —       388       —       —  
                                         

Capital Ratios (5)

                                        

Total capital

   $ 205,509     $ 201,622     $ 194,910     $ 189,115     $ 182,563  

Tier 1 capital

     190,173       186,193       179,781       173,240       167,150  

Common equity Tier 1 capital

     190,173       186,193       179,781       173,240       167,150  

Total capital to risk-weighted assets (3)

     13.75 %     13.64 %     13.40 %     12.89 %     12.44 %

Tier 1 capital to risk-weighted assets (3)

     12.73 %     12.59 %     12.36 %     11.81 %     11.39 %

Common equity Tier 1 capital / risk-weighted assets (3)

     12.73 %     12.59 %     12.36 %     11.81 %     11.39 %

Leverage ratio (3)

     9.38 %     9.13 %     8.88 %     8.56 %     8.28 %

 

7
 

FIRST NATIONAL CORPORATION

Performance Summary

(in thousands)

(unaudited)

                                        
   

For the Period Ended

  
   

Mar 31, 2026

    

Dec 31, 2025

    

Sept 30, 2025

    

Jun 30, 2025

    

Mar 31, 2025

  

Balance Sheet

                                        

Cash and due from banks

   $ 22,624     $ 20,836     $ 23,716     $ 34,435     $ 27,432  

Interest-bearing deposits in banks

     165,185       140,074       165,601       159,880       178,600  

Cash and cash equivalents

   $ 187,809     $ 160,910     $ 189,317     $ 194,315     $ 206,032  

Securities available for sale, at fair value

     217,655       217,538       196,476       187,579       160,976  

Securities held to maturity, at amortized cost (net of allowance for credit losses)

     101,261       102,872       104,608       106,430       108,292  

Restricted securities, at cost

     5,642       5,624       4,436       5,624       4,436  

Loans, net of allowance for credit losses

     1,449,708       1,435,026       1,418,750       1,428,251       1,435,895  

Premises and equipment, net

     34,327       34,561       34,107       34,530       34,609  

Accrued interest receivable

     6,656       6,467       6,238       6,143       6,126  

Bank owned life insurance

     38,837       38,577       38,652       38,367       38,136  

Goodwill

     3,030       3,030       3,030       3,030       3,030  

Core deposit intangibles, net

     12,785       13,219       13,661       14,102       14,544  

Other assets

     18,113       20,154       21,479       23,070       21,270  

Total assets

   $ 2,075,823     $ 2,037,978     $ 2,030,754     $ 2,041,441     $ 2,033,346  
                                         

Noninterest-bearing demand deposits

   $ 524,323     $ 509,874     $ 511,482     $ 541,204     $ 540,387  

Savings and interest-bearing demand deposits

     953,399       926,579       931,241       900,658       922,197  

Time deposits

     359,570       363,095       366,860       361,304       362,392  

Total deposits

   $ 1,837,292     $ 1,799,548     $ 1,809,583     $ 1,803,166     $ 1,824,976  

Other borrowings

     25,000       25,000       —       25,000       —  

Subordinated debt, net

     8,385       8,312       21,241       21,148       21,461  

Junior subordinated debt

     9,279       9,279       9,279       9,279       9,279  

Accrued interest payable and other liabilities

     7,305       9,643       9,442       9,316       8,955  

Total liabilities

   $ 1,887,261     $ 1,851,782     $ 1,849,545     $ 1,867,909     $ 1,864,671  
                                         

Common stock

     11,301       11,282       11,262       11,236       11,233  

Surplus

     78,400       78,216       78,187       77,578       77,354  

Retained earnings

     112,288       108,937       104,964       100,810       97,152  

Accumulated other comprehensive (loss), net

     (13,427 )     (12,239 )     (13,204 )     (16,092 )     (17,064 )

Total shareholders’ equity

   $ 188,562     $ 186,196     $ 181,209     $ 173,532     $ 168,675  

Total liabilities and shareholders’ equity

   $ 2,075,823     $ 2,037,978     $ 2,030,754     $ 2,041,441     $ 2,033,346  
                                         

Loan Portfolio

                                        

Real estate loans:

                                        

Construction and land development

   $ 97,487     $ 88,424     $ 78,470     $ 78,169     $ 81,596  

Secured by farmland

     11,554       11,879       12,812       12,514       12,314  

Secured by 1-4 family residential

     520,821       527,282       533,458       544,577       550,183  

Other real estate loans

     701,013       685,099       671,723       667,550       653,367  

Commercial and industrial loans (except those secured by real estate)

     114,517       117,256       117,047       119,910       131,539  

Consumer installment loans

     8,060       8,419       8,358       8,113       8,034  

Deposit overdrafts

     547       543       535       454       486  

All other loans

     10,407       10,843       10,794       12,150       13,111  

Total loans

   $ 1,464,406     $ 1,449,745     $ 1,433,197     $ 1,443,437     $ 1,450,630  

Allowance for credit losses

     (14,698 )     (14,719 )     (14,447 )     (15,186 )     (14,735 )

Loans, net

   $ 1,449,708     $ 1,435,026     $ 1,418,750     $ 1,428,251     $ 1,435,895  

 

8
 

FIRST NATIONAL CORPORATION

Average Balances, Yields and Rates Paid

(in thousands)

(unaudited)

Three Months Ended

  
 

March 31, 2026

    

December 31, 2025

    

March 31, 2025

  
 

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

 $ 259,592   $ 1,786     2.79 %   $ 261,463   $ 1,735     2.63 %   $ 219,815   $ 1,314     2.42 %

Tax-exempt (1)

   61,705     369     2.43 %     52,441     370     2.80 %     51,935     380     2.97 %

Restricted

   4,465     64     5.85 %     4,449     66     5.88 %     4,171     60     5.78 %

Total securities

 $ 325,762   $ 2,219     2.76 %   $ 318,353   $ 2,171     2.70 %   $ 275,921   $ 1,754     2.58 %

Loans:

                                                          

Taxable

 $ 1,446,201   $ 20,974     5.88 %   $ 1,431,171   $ 21,468     5.95 %   $ 1,454,653   $ 20,575     5.74 %

Tax-exempt (1)

   3,479     54     6.30 %     3,565     57     6.32 %     4,798     79     6.62 %

Total loans

 $ 1,449,680   $ 21,028     5.88 %   $ 1,434,736   $ 21,525     5.95 %   $ 1,459,451   $ 20,654     5.74 %

Federal funds sold

   38     —     —       33     —     —       3,527     39     4.53 %

Interest-bearing deposits with other institutions

   129,920     1,170     3.65 %     161,680     1,618     3.97 %     149,529     1,671     4.55 %

Total earning assets

 $ 1,905,400   $ 24,417     5.20 %   $ 1,914,802   $ 25,314     5.24 %   $ 1,888,428   $ 24,118     5.18 %

Less: allowance for credit losses on loans

   (15,039 )                 (14,883 )                 (16,620 )            

Total non-earning assets

   136,586                   162,054                   145,150              

Total assets

 $ 2,026,947                 $ 2,061,973                 $ 2,016,958              

Liabilities and Shareholders’ Equity

                                                          

Interest bearing deposits:

                                                          

Checking

 $ 403,086   $ 1,078     1.09 %   $ 401,385   $ 1,185     1.17 %   $ 369,023   $ 1,232     1.35 %

Regular savings

   211,058     177     0.34 %     207,169     183     0.35 %     212,594     175     0.33 %

Money market accounts

   330,735     1,492     1.83 %     331,288     1,656     1.98 %     339,306     1,962     2.34 %

Time deposits

   360,515     2,667     3.00 %     365,961     2,905     3.15 %     363,301     2,669     2.98 %

Total interest-bearing deposits

 $ 1,305,394   $ 5,414     1.68 %   $ 1,305,803   $ 5,929     1.80 %   $ 1,284,224   $ 6,038     1.91 %

Federal funds purchased

   20     —     —       1     —     —       1     —     —  

Subordinated debt

   8,384     168     8.11 %     12,167     274     8.94 %     21,247     467     8.91 %

Junior subordinated debt

   9,279     66     2.91 %     9,279     67     2.87 %     9,279     66     2.88 %

Other borrowings

   556     5     3.93 %     272     3     3.93 %     —     —     —  

Total interest-bearing liabilities

 $ 1,323,633   $ 5,653     1.73 %   $ 1,327,522   $ 6,273     1.87 %   $ 1,314,751   $ 6,571     2.03 %

Non-interest bearing liabilities

                                                          

Demand deposits

   506,573                   540,640                   524,908              

Other liabilities

   8,156                   9,644                   9,054              

Total liabilities

 $ 1,838,362                 $ 1,877,806                 $ 1,848,713              

Shareholders’ equity

   188,585                   184,167                   168,245              

Total liabilities and Shareholders’ equity

 $ 2,026,947                 $ 2,061,973                 $ 2,016,958              

Net interest income (1)

       $ 18,764                 $ 19,041                 $ 17,547        

Interest rate spread (1)

               3.46 %                 3.37 %                 3.15 %

Cost of funds

               1.25 %                 1.33 %                 1.45 %

Interest expense as a percent of average earning assets

               1.20 %                 1.30 %                 1.41 %

Net interest margin FTE (1)

               3.99 %                 3.95 %                 3.77 %

 

9

FIRST NATIONAL CORPORATION

Non-GAAP Reconciliation

(in thousands, except share and per share data)

(unaudited)

                                        
   

For the Three Months Ended

  
   

Mar 31, 2026

    

Dec 31, 2025

    

Sept 30, 2025

    

Jun 30, 2025

    

Mar 31, 2025

  

Operating Net Income

                                        

Net income (GAAP)

   $ 4,887     $ 5,504     $ 5,550     $ 5,051     $ 1,598  

Add: Merger-related expenses

     —       127       —       92       1,940  

Subtract: Bargain purchase gain

     —       —       (304 )     —       —  

Subtract: Tax effect of adjustment (5)

     —       (27 )     64       (10 )     (381 )

Adjusted operating net income (non-GAAP)

   $ 4,887     $ 5,604     $ 5,310     $ 5,133     $ 3,157  
                                         

Adjusted Earnings Per Share, Basic

                                        

Weighted average shares, basic

     9,031,591       9,011,378       8,999,153       8,987,179       8,979,527  

Basic earnings per share (GAAP)

   $ 0.54     $ 0.61     $ 0.62     $ 0.56     $ 0.18  

Adjusted earnings per share, basic (non-GAAP)

   $ 0.54     $ 0.62     $ 0.58     $ 0.57     $ 0.35  
                                         

Adjusted Earnings Per Share, Diluted

                                        

Weighted average shares, diluted

     9,047,416       9,030,437       9,023,185       9,001,972       9,005,923  

Diluted earnings per share (GAAP)

   $ 0.54     $ 0.61     $ 0.62     $ 0.56     $ 0.18  

Adjusted diluted earnings per share (non-GAAP)

   $ 0.54     $ 0.62     $ 0.58     $ 0.57     $ 0.35  
                                         

Adjusted Pre-Provision, Pre-Tax Earnings

                                        

Net interest income

   $ 18,676     $ 18,952     $ 18,295     $ 18,548     $ 17,451  

Total noninterest income

     3,824       5,018       4,500       3,889       3,611  

Net revenue

   $ 22,500     $ 23,970     $ 22,795     $ 22,437     $ 21,062  

Total noninterest expense

     15,982       16,125       15,782       15,191       18,335  

Pre-provision, pre-tax earnings

   $ 6,518     $ 7,845     $ 7,013     $ 7,246     $ 2,727  

Add: Merger expenses

     —       127       —       92       1,940  

Subtract: One time recovery gain

     —       (895 )     —       —       —  

Subtract: Bargain purchase gain

     —       —       (304 )     —       —  

Adjusted pre-provision, pre-tax earnings

   $ 6,518     $ 7,077     $ 6,709     $ 7,338     $ 4,667  
                                         

Adjusted Performance Ratios

                                        

Average assets

   $ 2,026,947     $ 2,061,973     $ 2,022,958     $ 2,019,344     $ 2,016,958  

Return on average assets (GAAP)

     0.98 %     1.06 %     1.09 %     1.00 %     0.32 %

Adjusted return on average assets (non-GAAP)

     0.98 %     1.08 %     1.03 %     1.02 %     0.63 %
                                         

Average shareholders’ equity

   $ 188,585     $ 184,167     $ 177,130     $ 170,920     $ 168,245  

Return on average equity (GAAP)

     10.51 %     11.86 %     12.43 %     11.85 %     3.85 %

Adjusted return on average equity (non-GAAP)

     10.51 %     12.08 %     11.75 %     12.05 %     7.61 %
                                         

Net Interest Margin

                                        

Net interest income

   $ 18,676     $ 18,952     $ 18,295     $ 18,548     $ 17,451  

Tax-equivalent net interest income (non-GAAP)

     18,764       19,041       18,385       18,639       17,547  

Average earning assets

     1,905,400       1,914,802       1,897,328       1,893,133       1,888,427  

Net interest margin

     3.98 %     3.93 %     3.83 %     3.93 %     3.75 %

Net interest margin fully tax equivalent (non-GAAP)

     3.99 %     3.95 %     3.84 %     3.95 %     3.77 %

 

10
 

FIRST NATIONAL CORPORATION

Non-GAAP Reconciliation

(in thousands)

(unaudited)

  

For the Three Months Ended

  
   

Mar 31, 2026

    

Dec 31, 2025

    

Sept 30, 2025

    

Jun 30, 2025

    

Mar 31, 2025

  

Adjusted Operating Noninterest Income

                                        

Total noninterest income (GAAP)

   $ 3,824     $ 5,018     $ 4,500     $ 3,889     $ 3,611  

Subtract: bargain purchase gain

     —       —       (304 )     —       —  

Subtract: loan recovery

     —       (895 )     —       —       —  

Adjusted operating noninterest income (non-GAAP)

   $ 3,824     $ 4,123     $ 4,196     $ 3,889     $ 3,611  
                                         

Adjusted Operating Noninterest Expense

                                        

Total noninterest expense (GAAP)

   $ 15,982     $ 16,125     $ 15,782     $ 15,191     $ 18,335  

Subtract: merger expenses

     —       (127 )     —       (92 )     (1,940 )

Subtract: amortization expense

     (434 )     (442 )     (442 )     (441 )     (442 )

Adjusted operating noninterest expense (non-GAAP)

   $ 15,548     $ 15,556     $ 15,340     $ 14,658     $ 15,953  
                                         

Efficiency Ratio

                                        

Total noninterest expense (GAAP)

   $ 15,982     $ 16,125     $ 15,782     $ 15,191     $ 18,335  

Add: other real estate owned (expense) income, net

     —       —       —       —       8  

Subtract: amortization of intangibles

     (434 )     (442 )     (442 )     (441 )     (442 )

Add/Subtract: gain (loss) on disposal of premises and equipment, net

     —       —       9       (7 )     1  

Subtract: merger expenses

     —       (127 )     —       (92 )     (1,940 )

Adjusted operating non-interest expense (non-GAAP)

   $ 15,548     $ 15,556     $ 15,349     $ 14,651     $ 15,962  

Tax-equivalent net interest income (non-GAAP)

   $ 18,764     $ 19,041     $ 18,385     $ 18,639     $ 17,547  

Total noninterest income (GAAP)

     3,824       5,018       4,500       3,889       3,611  

Subtract: net gain on subordinated debt payoff

     —       —       —       (80 )     —  

Subtract: bargain purchase gain

     —       —       (304 )     —       —  

Subtract: securities (gains), net

     (8 )     —       —       —       —  

Subtract: one time recovery gain

     —       (895 )     —       —       —  

Adjusted income for efficiency ratio (non-GAAP)

   $ 22,580     $ 23,164     $ 22,581     $ 22,448     $ 21,158  
                                         

Efficiency ratio (non-GAAP)

     68.86 %     67.16 %     67.97 %     65.27 %     75.44 %

 

11
 

FIRST NATIONAL CORPORATION

Non-GAAP Reconciliation

(in thousands, except share and per share data)

(unaudited)

                                        
   

For the Three Months Ended

  
   

Mar 31, 2026

    

Dec 31, 2025

    

Sep 30, 2025

    

Jun 30, 2025

    

Mar 31, 2025

  

Tax-Equivalent Net Interest Income

                                        

GAAP measures:

                                        

Interest income – loans

   $ 21,017     $ 21,513     $ 21,430     $ 21,594     $ 20,639  

Interest income – investments and other

     3,312       3,711       3,657       3,571       3,383  

Interest expense – deposits

     (5,414 )     (5,929 )     (6,246 )     (6,080 )     (6,038 )

Interest expense – subordinated debt

     (168 )     (273 )     (479 )     (468 )     (467 )

Interest expense – junior subordinated debt

     (66 )     (67 )     (67 )     (66 )     (66 )

Interest expense – other borrowings

     (5 )     (3 )     —       (3 )     —  

Net interest income

   $ 18,676     $ 18,952     $ 18,295     $ 18,548     $ 17,451  

Non-GAAP measures:

                                        

Add: Tax benefit realized on non-taxable interest income – loans (6)

   $ 11     $ 12     $ 11     $ 12     $ 16  

Add: Tax benefit realized on non-taxable interest income – municipal securities (6)

     77       77       79       79       80  

Tax benefit realized on non-taxable interest income

   $ 88     $ 89     $ 90     $ 91     $ 96  

Tax-equivalent net interest income (non-GAAP)

   $ 18,764     $ 19,041     $ 18,385     $ 18,639     $ 17,547  
                                         

Tangible Common Equity and Tangible Assets

                                        

Total assets (GAAP)

   $ 2,075,823     $ 2,037,978     $ 2,030,754     $ 2,041,441     $ 2,033,346  

Subtract: goodwill

     (3,030 )     (3,030 )     (3,030 )     (3,030 )     (3,030 )

Subtract: core deposit intangibles, net

     (12,785 )     (13,219 )     (13,661 )     (14,102 )     (14,544 )

Tangible assets (Non-GAAP)

   $ 2,060,008     $ 2,021,729     $ 2,014,063     $ 2,024,309     $ 2,015,772  
                                         

Total shareholders’ equity (GAAP)

   $ 188,562     $ 186,196     $ 181,209     $ 173,532     $ 168,675  

Subtract: goodwill

     (3,030 )     (3,030 )     (3,030 )     (3,030 )     (3,030 )

Subtract: core deposit intangibles, net

     (12,785 )     (13,219 )     (13,661 )     (14,102 )     (14,544 )

Tangible common equity (Non-GAAP)

   $ 172,747     $ 169,947     $ 164,518     $ 156,400     $ 151,101  
                                         

Tangible common equity to tangible assets ratio (non-GAAP)

     8.39 %     8.41 %     8.17 %     7.73 %     7.50 %
                                         

Tangible Book Value Per Share

                                        

Tangible common equity (non-GAAP)

   $ 172,747     $ 169,947     $ 164,518     $ 156,400     $ 151,101  

Common shares outstanding, ending

     9,040,967       9,025,395       9,009,209       8,989,138       8,986,696  

Tangible book value per share (non-GAAP)

   $ 19.11     $ 18.83     $ 18.26     $ 17.40     $ 16.81  

 

(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 March 31, 2026, 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%

 

12

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