First National Corporation Reports Fourth Quarter and Annual 2024 Financial Results
First National (NASDAQ: FXNC) reported mixed results for Q4 2024, with a net loss of $933,000 ($0.10 per share) but adjusted operating earnings of $6.0 million ($0.66 per share). The company completed its largest acquisition to date with Touchstone Bankshares on October 1, 2024, expanding total assets to $2.0 billion with 33 branch offices.
Key financial metrics include a net interest margin increase of 40 basis points to 3.83%, with noninterest bearing deposits comprising 29% of total deposits. The Touchstone acquisition added $664.3 million in total assets, including $479.3 million in loans and $555.4 million in deposits. The company recorded a preliminary bargain purchase gain of $2.9 million and incurred pre-tax merger costs of $7.3 million in Q4 2024.
Asset quality remained stable with nonperforming assets at 0.35% of total assets. The company maintained its dividend policy, paying $0.155 per share in Q4 2024, up from $0.15 in previous quarters.
First National (NASDAQ: FXNC) ha riportato risultati misti per il quarto trimestre del 2024, con una perdita netta di 933.000 dollari (0,10 dollari per azione) ma utili operativi rettificati di 6,0 milioni di dollari (0,66 dollari per azione). L'azienda ha completato la sua più grande acquisizione fino ad oggi con Touchstone Bankshares il 1° ottobre 2024, espandendo il totale degli attivi a 2,0 miliardi di dollari con 33 filiali.
I principali indicatori finanziari includono un incremento del margine di interesse netto di 40 punti base, portandolo al 3,83%, con depositi non fruttiferi che rappresentano il 29% dei depositi totali. L'acquisizione di Touchstone ha aggiunto 664,3 milioni di dollari in attivi totali, inclusi 479,3 milioni di dollari in prestiti e 555,4 milioni di dollari in depositi. L'azienda ha registrato un guadagno preliminare su acquisto vantaggioso di 2,9 milioni di dollari e ha sostenuto costi di fusione ante imposte di 7,3 milioni di dollari nel quarto trimestre del 2024.
La qualità degli attivi è rimasta stabile, con attivi non performanti che rappresentano lo 0,35% del totale degli attivi. L'azienda ha mantenuto la propria politica sui dividendi, pagando 0,155 dollari per azione nel quarto trimestre del 2024, rispetto a 0,15 dollari nei trimestri precedenti.
First National (NASDAQ: FXNC) reportó resultados mixtos para el cuarto trimestre de 2024, con una pérdida neta de 933,000 dólares (0.10 dólares por acción) pero ganancias operativas ajustadas de 6.0 millones de dólares (0.66 dólares por acción). La empresa completó su adquisición más grande hasta la fecha con Touchstone Bankshares el 1 de octubre de 2024, expandiendo los activos totales a 2.0 mil millones de dólares con 33 sucursales.
Los principales indicadores financieros incluyen un aumento en el margen de interés neto de 40 puntos básicos al 3.83%, con depósitos no remunerados que representan el 29% del total de depósitos. La adquisición de Touchstone añadió 664.3 millones de dólares en activos totales, incluidos 479.3 millones de dólares en préstamos y 555.4 millones de dólares en depósitos. La compañía registró una ganancia preliminar por compra ventajosa de 2.9 millones de dólares y incurrió en costos de fusión antes de impuestos de 7.3 millones de dólares en el cuarto trimestre de 2024.
La calidad de los activos se mantuvo estable, con activos no productivos que representan el 0.35% del total de activos. La empresa mantuvo su política de dividendos, pagando 0.155 dólares por acción en el cuarto trimestre de 2024, un aumento con respecto a 0.15 dólares en trimestres anteriores.
퍼스트 내셔널 (NASDAQ: FXNC)은 2024년 4분기에 혼합된 결과를 보고했으며, 순손실은 933,000달러(주당 0.10달러)였으나 조정된 운영 수익은 600만 달러(주당 0.66달러)로 나타났습니다. 이 회사는 2024년 10월 1일 터치스톤 뱅크셰어스와의 최대 인수를 완료하며, 총 자산을 20억 달러로 확장하고 33개의 지점을 운영하게 되었습니다.
주요 재무 지표로는 순이자 마진이 40bp 상승하여 3.83%에 도달하였고, 비이자성 예금이 총 예금의 29%를 차지하였습니다. 터치스톤 인수로 총 자산이 6억 6,430만 달러 증가했으며, 이에는 4억 7,930만 달러의 대출과 5억 5,540만 달러의 예금이 포함됩니다. 회사는 2024년 4분기에 290만 달러의 예비 계약 이익을 기록했으며, 인수 관련 세전 비용으로 730만 달러를 발생시켰습니다.
자산 품질은 안정세를 유지하며, 비수익 자산은 총 자산의 0.35%에 해당했습니다. 이 회사는 배당 정책을 유지하며 2024년 4분기에 주당 0.155달러를 지급하였고, 이는 이전 분기의 0.15달러에서 증가한 것입니다.
First National (NASDAQ: FXNC) a déclaré des résultats mitigés pour le quatrième trimestre de 2024, avec une perte nette de 933 000 dollars (0,10 dollar par action), mais des bénéfices d'exploitation ajustés de 6,0 millions de dollars (0,66 dollar par action). L'entreprise a finalisé sa plus grande acquisition à ce jour avec Touchstone Bankshares le 1er octobre 2024, étendant ses actifs totaux à 2,0 milliards de dollars avec 33 agences.
Les principaux indicateurs financiers comprennent une augmentation de la marge d'intérêt net de 40 points de base pour atteindre 3,83 %, les dépôts non rémunérateurs représentant 29 % des dépôts totaux. L'acquisition de Touchstone a ajouté 664,3 millions de dollars d'actifs totaux, dont 479,3 millions de dollars de prêts et 555,4 millions de dollars de dépôts. L'entreprise a enregistré un gain préliminaire d'achat avantageux de 2,9 millions de dollars et a engagé des frais de fusion avant impôts de 7,3 millions de dollars au quatrième trimestre de 2024.
La qualité des actifs est restée stable, avec des actifs non performants représentant 0,35 % des actifs totaux. L'entreprise a maintenu sa politique de dividende, versant 0,155 dollar par action au quatrième trimestre de 2024, contre 0,15 dollar au cours des trimestres précédents.
First National (NASDAQ: FXNC) berichtete über gemischte Ergebnisse für das vierte Quartal 2024, mit einem Nettoverlust von 933.000 Dollar (0,10 Dollar pro Aktie) jedoch angepassten Betriebseinnahmen von 6,0 Millionen Dollar (0,66 Dollar pro Aktie). Das Unternehmen vollendete am 1. Oktober 2024 die bislang größte Akquisition mit Touchstone Bankshares und erweiterte die Gesamtes auf 2,0 Milliarden Dollar mit 33 Filialen.
Zu den wichtigen finanziellen Kennzahlen gehört ein Anstieg der Nettomarge um 40 Basispunkte auf 3,83%, wobei zinstragende Einlagen 29% der Gesamteinlagen ausmachten. Die Akquisition von Touchstone fügte 664,3 Millionen Dollar an Gesamtkapital hinzu, einschließlich 479,3 Millionen Dollar an Krediten und 555,4 Millionen Dollar an Einlagen. Das Unternehmen verzeichnete einen vorläufigen Gewinn aus vorteilhaften Käufen von 2,9 Millionen Dollar und hatte im vierten Quartal 2024 vorsteuerliche Fusionskosten von 7,3 Millionen Dollar zu tragen.
Die Qualität der Vermögenswerte blieb stabil, mit ausfallenden Vermögenswerten von 0,35% der Gesamtsumme. Das Unternehmen hielt an seiner Dividendenpolitik fest und zahlte im vierten Quartal 2024 0,155 Dollar pro Aktie, was einen Anstieg gegenüber 0,15 Dollar in den vorhergehenden Quartalen darstellt.
- Completed major acquisition of Touchstone Bankshares, expanding assets to $2.0 billion
- Net interest margin increased 40 basis points to 3.83%
- Recorded $2.9 million bargain purchase gain from acquisition
- Increased quarterly dividend to $0.155 per share
- Strong deposit mix with 29% noninterest bearing deposits
- Reported Q4 2024 net loss of $933,000 ($0.10 per share)
- Incurred $7.3 million in pre-tax merger costs
- Net charge-offs of $1.3 million in Q4 2024
- Unrealized losses on AFS securities increased to $22.1 million
Insights
The Q4 2024 results reflect a transformative period marked by the strategic Touchstone acquisition, which has significantly altered First National's financial profile. The reported quarterly net loss of
Several key metrics warrant attention:
- The net interest margin expansion of 40 basis points to
3.83% indicates improved earning asset yields - Asset quality remains solid with NPAs at
0.35% of total assets, improving from0.41% in Q3 - The allowance for credit losses stands at
1.12% of total loans, providing adequate coverage - Capital ratios remain healthy with total capital at
12.35% , though decreased from14.29% due to acquisition impacts
The
The integration process appears on track with system conversions scheduled for completion in several weeks. This should enable cost synergy realization and improved operational efficiency in coming quarters. However, investors should monitor the success of cultural integration and potential customer attrition during this transition period.
STRASBURG, Va., Feb. 06, 2025 (GLOBE NEWSWIRE) -- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of First Bank (the “Bank”), reported an unaudited consolidated net loss of
For the year ended December 31, 2024, the Company reported unaudited consolidated earnings of
“2024 was a transformational year for First National as we consummated our largest acquisition to date and resulting partnership with Touchstone Bankshares. Our results for the quarter reflected solid operating metrics adjusting for merger costs, and is the first quarter to include the combined financial results of First National and Touchstone,” said Scott Harvard, President and Chief Executive Officer of First National. “I am proud of all the work from our teammates to get us to this point. We are completing system conversions in several weeks which will allow us to operate as one bank across our footprint. We believe the fourth quarter financial operating performance is indicative of the benefits of the acquisition and look forward to fully completing the integration of our two companies."
FOURTH QUARTER HIGHLIGHTS
- Completed acquisition of Touchstone Bankshares, Inc. on October 1
- Total assets of
$2.0 billion with 33 branch offices - Net interest margin increased 40 basis points to
3.83% - Noninterest bearing deposits comprised
29% of total deposits - Efficiency ratio of
63.97% (1)
Merger with Touchstone Bankshares, Inc. (“Touchstone”)
On October 1, 2024, the Company completed its acquisition of Touchstone. Touchstone’s results of operations are included in the Company’s consolidated results since the date of acquisition, and, therefore, the Company’s fourth quarter and full year 2024 results reflect increased levels of average balances, net interest income, and expense compared to its prior quarter and full year 2023 results. After purchase accounting fair value adjustments, the acquisition added
In connection with the acquisition, the Company recorded an allowance for credit losses on acquired loans that experienced a more than insignificant amount of credit deterioration since origination (“PCD” loans) of
The Company incurred pre-tax merger costs of approximately
NET INTEREST INCOME
For the fourth quarter of 2024, net interest income was
The Company’s net interest margin (FTE)(1) for the fourth quarter of 2024 includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting was
NONINTEREST INCOME
Noninterest income increased
NONINTEREST EXPENSE
Noninterest expense increased
Adjusted operating noninterest expense, which excludes merger-related costs (
ASSET QUALITY
Overview
Loans past due greater than 30 days and still accruing interest as a percentage of total loans amounted to
Nonperforming Assets
NPAs increased to
Past Due Loans
Loans past due 30-89 days and still accruing interest increased to
Allowance for Credit Losses on Loans
For the fourth quarter of 2024, the Company recorded a provision for credit losses of
BALANCE SHEET
At December 31, 2024, the Company’s consolidated balance sheet includes the impact of the Touchstone acquisition, which closed October 1, 2024, as discussed above. ASC 805, Business Combinations, allows for a measurement period of 12 months beyond the acquisition date to finalize the fair value measurements of the acquired Company’s net assets as additional information not existing as of the acquisition date becomes available. Any future measurement period adjustments will be recorded through an adjustment to the bargain purchase gain upon identification. Below is a summary of the related impact of the acquisition on the Company's consolidated balance sheet as of the acquisition date.
- The fair value of assets acquired totaled
$664.3 million and included total loans of$479.3 million with an initial loan discount of$13.5 million . - The fair value of the liabilities assumed totaled
$614.6 million and included total deposits of$555.4 million with an initial deposit mark related to time deposits of$1.1 million . - Core deposit intangibles and other intangibles acquired totaled
$15.6 million . - No goodwill was recorded in the transaction, and the preliminary bargain purchase gain (included in other income) totaled
$2.9 million .
At December 31, 2024, total assets were
At December 31, 2024, LHFI net of allowance totaled
At December 31, 2024, total investments were
At December 31, 2024, total deposits were
Other borrowings decreased
Shareholders’ equity totaled
The following table provides capital ratios at the periods ended:
| Dec 31, 2024 | Sept 30, 2024 | Dec 31, 2023 | ||||||||||
| Total capital ratio (2) | 12.35 | % | 14.29 | % | 14.13 | % | ||||||
| Tier 1 capital ratio (2) | 11.19 | % | 13.04 | % | 12.88 | % | ||||||
| Common equity Tier 1 capital ratio (2) | 11.19 | % | 13.04 | % | 12.88 | % | ||||||
| Leverage ratio (2) | 7.95 | % | 9.23 | % | 9.17 | % | ||||||
| Common equity to total assets (3) | 8.29 | % | 8.62 | % | 8.23 | % | ||||||
| Tangible common equity to tangible assets (1) (3) | 7.46 | % | 8.43 | % | 8.03 | % | ||||||
| (1) | These are financial measures not calculated in accordance with generally accepted accounting principles ("GAAP"). For a reconciliation of these non-GAAP financial measures, see the "Non-GAAP Reconciliation" sections of the Performance Summary tables included in this release. |
| (2) | All ratios at December 31, 2024 are estimates and subject to change pending the Company’s filing of its FR Y9-C. All other periods are presented as filed. |
| (3) | Capital ratios presented are for First National Corporation. |
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 basic and diluted earnings (loss) 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.
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, a loan production office, 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.
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, 2023, and most recent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (the “SEC”).
Additional risks and uncertainties may include, but are not limited to: (1) the risk that the cost savings and any revenue synergies from the Touchstone merger may not be realized or take longer than anticipated to be realized, including due to the state of the economy or other competitive factors in the areas in which the parties operate, (2) disruption from the merger of customer, supplier, employee or other business partner relationships, including diversion of management's attention from ongoing business operations and opportunities due to the merger, (3) the possibility that the costs, fees, expenses and charges related to the merger may be greater than anticipated, (4) reputational risk and the reaction of each of the parties’ customers, suppliers, employees or other business partners to the merger, (5) the risks relating to the integration of Touchstone’s operations into the operations of First National, including the risk that such integration will be materially delayed or will be more costly or difficult than expected, (6) the risk of expansion into new geographic or product markets, (7) the dilution caused by First National’s issuance of additional shares of its common stock in the merger, and (8) general competitive, economic, political and market conditions. All subsequent written and oral forward-looking statements concerning First National or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. First National does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.
CONTACTS
| Scott C. Harvard | Bruce E. Thomas | |
| President and CEO | Senior Vice President and Interim CFO | |
| (540) 465-9121 | (540) 465-9121 | |
| sharvard@fbvirginia.com | bthomas@fbvirginia.com | |
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
| (unaudited) | ||||||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | ||||||||||||||||
| Income Statement | ||||||||||||||||||||
| Interest and dividend income | ||||||||||||||||||||
| Interest and fees on loans | $ | 21,516 | $ | 14,479 | $ | 13,255 | $ | 63,483 | $ | 49,293 | ||||||||||
| Interest on deposits in banks | 2,085 | 1,538 | 368 | 6,490 | 1,809 | |||||||||||||||
| Interest on federal funds sold | 189 | — | — | 189 | — | |||||||||||||||
| Interest on securities | ||||||||||||||||||||
| Taxable interest on securities | 1,284 | 1,091 | 1,318 | 4,733 | 5,286 | |||||||||||||||
| Tax-exempt interest on securities | 308 | 303 | 303 | 1,222 | 1,220 | |||||||||||||||
| Dividends | 104 | 33 | 30 | 202 | 111 | |||||||||||||||
| Total interest and dividend income | $ | 25,486 | $ | 17,444 | $ | 15,274 | $ | 76,319 | $ | 57,719 | ||||||||||
| Interest expense | ||||||||||||||||||||
| Interest on deposits | $ | 6,415 | $ | 4,958 | $ | 4,232 | $ | 20,964 | $ | 13,660 | ||||||||||
| Interest on federal funds purchased | 1 | — | 1 | 1 | 1 | |||||||||||||||
| Interest on subordinated debt | 396 | 69 | 70 | 603 | 277 | |||||||||||||||
| Interest on junior subordinated debt | 68 | 68 | 68 | 270 | 271 | |||||||||||||||
| Interest on other borrowings | 247 | 600 | 94 | 2,029 | 97 | |||||||||||||||
| Total interest expense | $ | 7,127 | $ | 5,695 | $ | 4,465 | $ | 23,867 | $ | 14,306 | ||||||||||
| Net interest income | $ | 18,359 | $ | 11,749 | $ | 10,809 | $ | 52,452 | $ | 43,413 | ||||||||||
| Provision for credit losses | 4,750 | 1,700 | 5,950 | 7,850 | 6,150 | |||||||||||||||
| Net interest income after provision for credit losses | $ | 13,609 | $ | 10,049 | $ | 4,859 | $ | 44,602 | $ | 37,263 | ||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges on deposit accounts | $ | 1,181 | $ | 675 | $ | 718 | $ | 3,122 | $ | 2,780 | ||||||||||
| ATM and check card fees | 792 | 934 | 825 | 3,305 | 3,449 | |||||||||||||||
| Wealth management fees | 903 | 952 | 784 | 3,617 | 3,120 | |||||||||||||||
| Fees for other customer services | 317 | 276 | 232 | 966 | 770 | |||||||||||||||
| Brokered mortgage fees | 90 | 92 | 46 | 252 | 119 | |||||||||||||||
| Income from bank owned life insurance | 264 | 191 | 168 | 755 | 627 | |||||||||||||||
| Net gains (losses) on securities available for sale | (154 | ) | 39 | — | (115 | ) | — | |||||||||||||
| Gain on sale of other investment | — | — | 186 | — | 186 | |||||||||||||||
| Net gains on disposal of premises and equipment | — | — | — | — | 47 | |||||||||||||||
| Bargain purchase gain | 2,920 | — | — | 2,920 | — | |||||||||||||||
| Other operating income | 131 | 44 | 110 | 1,558 | 686 | |||||||||||||||
| Total noninterest income | $ | 6,444 | $ | 3,203 | $ | 3,069 | $ | 16,380 | $ | 11,784 | ||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | $ | 10,439 | $ | 5,927 | $ | 4,999 | $ | 28,076 | $ | 21,039 | ||||||||||
| Occupancy | 936 | 585 | 568 | 2,604 | 2,154 | |||||||||||||||
| Equipment | 1,123 | 726 | 621 | 3,131 | 2,377 | |||||||||||||||
| Marketing | 371 | 262 | 190 | 1,101 | 910 | |||||||||||||||
| Supplies | 264 | 123 | 153 | 618 | 576 | |||||||||||||||
| Legal and professional fees | 1,214 | 596 | 443 | 3,386 | 1,647 | |||||||||||||||
| ATM and check card expense | 385 | 394 | 313 | 1,508 | 1,578 | |||||||||||||||
| FDIC assessment | 285 | 195 | 154 | 860 | 633 | |||||||||||||||
| Bank franchise tax | 262 | 262 | 262 | 1,047 | 1,040 | |||||||||||||||
| Data processing expense | 4,142 | 290 | 327 | 4,841 | 1,047 | |||||||||||||||
| Amortization expense | 448 | 4 | 4 | 461 | 18 | |||||||||||||||
| Other real estate owned expense (income), net | 5 | 10 | 2 | 15 | (199 | ) | ||||||||||||||
| Net losses on disposal of premises and equipment | (4 | ) | 2 | — | 47 | — | ||||||||||||||
| Other operating expense | 2,059 | 1,083 | 1,064 | 5,239 | 4,422 | |||||||||||||||
| Total noninterest expense | $ | 21,929 | $ | 10,459 | $ | 9,100 | $ | 52,934 | $ | 37,242 | ||||||||||
| Income (loss) before income taxes | $ | (1,876 | ) | $ | 2,793 | $ | (1,172 | ) | $ | 8,048 | $ | 11,805 | ||||||||
| Income tax expense (benefit) | (943 | ) | 545 | (321 | ) | 1,082 | 2,181 | |||||||||||||
| Net income (loss) | $ | (933 | ) | $ | 2,248 | $ | (851 | ) | $ | 6,966 | $ | 9,624 | ||||||||
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
| (unaudited) | ||||||||||||||||||||
| As of or For the Three Months Ended | As of or For the Year Ended | |||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | ||||||||||||||||
| Common Share and Per Common Share Data | ||||||||||||||||||||
| Earnings (loss) per common share, basic | $ | (0.10 | ) | $ | 0.36 | $ | (0.14 | ) | $ | 1.00 | $ | 1.54 | ||||||||
| Adjusted earnings (loss) per common share, basic(1) | $ | 0.66 | 0.39 | (0.14 | ) | $ | 2.10 | $ | 1.54 | |||||||||||
| Weighted average shares, basic | 8,971,649 | 6,287,997 | 6,261,500 | 6,955,592 | 6,265,394 | |||||||||||||||
| Earnings (loss) per common share, diluted | $ | (0.10 | ) | $ | 0.36 | $ | (0.14 | ) | $ | 1.00 | $ | 1.53 | ||||||||
| Adjusted earnings (loss) per common share, diluted(1) | $ | 0.66 | 0.39 | (0.14 | ) | $ | 2.10 | $ | 1.53 | |||||||||||
| Weighted average shares, diluted | 8,994,315 | 6,303,282 | 6,282,815 | 6,971,089 | 6,279,106 | |||||||||||||||
| Shares outstanding at period end | 8,974,102 | 6,296,705 | 6,263,102 | 8,974,102 | 6,263,102 | |||||||||||||||
| Tangible book value per share at period end (1) | $ | 16.55 | $ | 19.37 | $ | 18.06 | $ | 16.55 | $ | 18.06 | ||||||||||
| Cash dividends | $ | 0.155 | $ | 0.150 | $ | 0.150 | $ | 0.605 | $ | 0.600 | ||||||||||
| Key Performance Ratios | ||||||||||||||||||||
| Return on average assets | (0.18 | %) | 0.62 | % | (0.25 | %) | 0.44 | % | 0.71 | % | ||||||||||
| Adjusted return on average assets (1) | 1.15 | % | 0.67 | % | (0.25 | %) | 0.92 | % | 0.71 | % | ||||||||||
| Return on average equity | (2.35 | %) | 7.28 | % | (2.97 | %) | 5.33 | % | 8.59 | % | ||||||||||
| Adjusted return on average equity (1) | 15.01 | % | 7.93 | % | (2.97 | %) | 11.19 | % | 8.59 | % | ||||||||||
| Net interest margin (1) | 3.83 | % | 3.43 | % | 3.35 | % | 3.51 | % | 3.41 | % | ||||||||||
| Efficiency ratio (1) | 63.97 | % | 68.13 | % | 66.26 | % | 66.73 | % | 67.69 | % | ||||||||||
| Average Balances | ||||||||||||||||||||
| Average assets | $ | 2,051,578 | $ | 1,449,185 | $ | 1,372,365 | $ | 1,597,150 | $ | 1,363,339 | ||||||||||
| Average earning assets | 1,919,864 | 1,374,566 | 1,290,231 | 1,504,946 | 1,280,980 | |||||||||||||||
| Average shareholders’ equity | 157,844 | 122,802 | 113,614 | 130,715 | 112,083 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Loan charge-offs | $ | 1,432 | $ | 1,667 | $ | 2,765 | $ | 4,033 | $ | 3,993 | ||||||||||
| Loan recoveries | 98 | 95 | 92 | 283 | 418 | |||||||||||||||
| Net charge-offs | 1,334 | 1,572 | 2,673 | 3,750 | 3,575 | |||||||||||||||
| Non-accrual loans | 7,058 | 5,929 | 6,763 | 7,058 | 6,763 | |||||||||||||||
| Other real estate owned, net | 53 | 56 | — | 53 | — | |||||||||||||||
| Nonperforming assets (3) | 7,111 | 5,985 | 6,763 | 7,111 | 6,763 | |||||||||||||||
| Loans 30 to 89 days past due, accruing | 3,085 | 2,358 | 2,484 | 3,085 | 2,484 | |||||||||||||||
| Loans over 90 days past due, accruing | 365 | — | 524 | 365 | 524 | |||||||||||||||
| Special mention loans | 7,043 | 516 | — | 7,043 | — | |||||||||||||||
| Substandard loans, accruing | 2,030 | 1,713 | 287 | 2,030 | 287 | |||||||||||||||
| Capital Ratios (2) | ||||||||||||||||||||
| Total capital | $ | 181,449 | $ | 148,477 | $ | 142,333 | $ | 181,449 | $ | 142,333 | ||||||||||
| Tier 1 capital | 164,454 | 135,490 | 129,840 | 164,454 | 129,840 | |||||||||||||||
| Common equity Tier 1 capital | 164,454 | 135,490 | 129,840 | 164,454 | 129,840 | |||||||||||||||
| Total capital to risk-weighted assets | 12.35 | % | 14.29 | % | 14.05 | % | 12.35 | % | 14.05 | % | ||||||||||
| Tier 1 capital to risk-weighted assets | 11.19 | % | 13.04 | % | 12.82 | % | 11.19 | % | 12.82 | % | ||||||||||
| Common equity Tier 1 capital to risk-weighted assets | 11.19 | % | 13.04 | % | 12.82 | % | 11.19 | % | 12.82 | % | ||||||||||
| Leverage ratio | 7.95 | % | 9.23 | % | 9.31 | % | 7.95 | % | 9.31 | % | ||||||||||
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
| (unaudited) | ||||||||||||||||||||
| For the Period Ended | ||||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | ||||||||||||||||
| Balance Sheet | ||||||||||||||||||||
| Cash and due from banks | $ | 24,916 | $ | 18,197 | $ | 16,729 | $ | 14,476 | $ | 17,194 | ||||||||||
| Interest-bearing deposits in banks | 137,958 | 108,319 | 118,906 | 124,232 | 69,967 | |||||||||||||||
| Cash and cash equivalents | $ | 162,874 | $ | 126,516 | $ | 135,635 | $ | 138,708 | $ | 87,161 | ||||||||||
| Securities available for sale, at fair value | 163,847 | 146,013 | 144,816 | 147,675 | 152,857 | |||||||||||||||
| Securities held to maturity, at amortized cost (net of allowance for credit losses) | 109,741 | 121,425 | 123,497 | 125,825 | 148,244 | |||||||||||||||
| Restricted securities, at cost | 3,741 | 2,112 | 2,112 | 2,112 | 2,078 | |||||||||||||||
| Loans, net of allowance for credit losses | 1,450,604 | 982,016 | 977,423 | 960,371 | 957,456 | |||||||||||||||
| Other real estate owned, net | 53 | 56 | — | — | — | |||||||||||||||
| Premises and equipment, net | 34,824 | 22,960 | 22,205 | 21,993 | 22,142 | |||||||||||||||
| Accrued interest receivable | 6,020 | 4,794 | 4,916 | 4,978 | 4,655 | |||||||||||||||
| Bank owned life insurance | 37,873 | 24,992 | 24,802 | 24,652 | 24,902 | |||||||||||||||
| Goodwill | 3,030 | 3,030 | 3,030 | 3,030 | 3,030 | |||||||||||||||
| Core deposit intangibles, net | 14,986 | 104 | 108 | 113 | 117 | |||||||||||||||
| Other assets | 22,688 | 16,698 | 18,984 | 17,738 | 16,653 | |||||||||||||||
| Total assets | $ | 2,010,281 | $ | 1,450,716 | $ | 1,457,528 | $ | 1,447,195 | $ | 1,419,295 | ||||||||||
| Noninterest-bearing demand deposits | $ | 520,153 | $ | 383,400 | $ | 397,770 | $ | 384,092 | $ | 379,208 | ||||||||||
| Savings and interest-bearing demand deposits | 924,880 | 663,925 | 665,208 | 677,458 | 662,169 | |||||||||||||||
| Time deposits | 358,745 | 205,930 | 202,818 | 197,587 | 192,349 | |||||||||||||||
| Total deposits | $ | 1,803,778 | $ | 1,253,255 | $ | 1,265,796 | $ | 1,259,137 | $ | 1,233,726 | ||||||||||
| Other borrowings | — | 50,000 | 50,000 | 50,000 | 50,000 | |||||||||||||||
| Subordinated debt, net | 21,176 | 4,999 | 4,998 | 4,998 | 4,997 | |||||||||||||||
| Junior subordinated debt | 9,279 | 9,279 | 9,279 | 9,279 | 9,279 | |||||||||||||||
| Accrued interest payable and other liabilities | 9,517 | 8,068 | 7,564 | 5,965 | 5,022 | |||||||||||||||
| Total liabilities | $ | 1,843,750 | $ | 1,325,601 | $ | 1,337,637 | $ | 1,329,379 | $ | 1,303,024 | ||||||||||
| Preferred stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Common stock | 11,218 | 7,871 | 7,851 | 7,847 | 7,829 | |||||||||||||||
| Surplus | 77,058 | 33,409 | 33,116 | 33,021 | 32,950 | |||||||||||||||
| Retained earnings | 96,947 | 99,270 | 97,966 | 96,465 | 94,198 | |||||||||||||||
| Accumulated other comprehensive (loss), net | (18,692 | ) | (15,435 | ) | (19,042 | ) | (19,517 | ) | (18,706 | ) | ||||||||||
| Total shareholders’ equity | $ | 166,531 | $ | 125,115 | $ | 119,891 | $ | 117,816 | $ | 116,271 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 2,010,281 | $ | 1,450,716 | $ | 1,457,528 | $ | 1,447,195 | $ | 1,419,295 | ||||||||||
| Loan Data | ||||||||||||||||||||
| Mortgage real estate loans: | ||||||||||||||||||||
| Construction and land development | $ | 84,480 | $ | 61,446 | $ | 60,919 | $ | 53,364 | $ | 52,680 | ||||||||||
| Secured by farmland | 14,133 | 9,099 | 8,911 | 9,079 | 9,154 | |||||||||||||||
| Secured by 1-4 family residential | 547,576 | 351,004 | 346,976 | 347,014 | 344,369 | |||||||||||||||
| Other real estate loans | 658,029 | 440,648 | 440,857 | 436,006 | 438,118 | |||||||||||||||
| Loans to farmers (except those secured by real estate) | 940 | 633 | 349 | 332 | 455 | |||||||||||||||
| Commercial and industrial loans (except those secured by real estate) | 140,393 | 114,190 | 115,951 | 113,230 | 112,619 | |||||||||||||||
| Consumer installment loans | 7,582 | 5,396 | 5,068 | 4,808 | 4,753 | |||||||||||||||
| Deposit overdrafts | 450 | 253 | 365 | 251 | 222 | |||||||||||||||
| All other loans | 13,421 | 12,051 | 10,580 | 8,890 | 7,060 | |||||||||||||||
| Total loans | $ | 1,467,004 | $ | 994,720 | $ | 989,976 | $ | 972,974 | $ | 969,430 | ||||||||||
| Allowance for credit losses | (16,400 | ) | (12,704 | ) | (12,553 | ) | (12,603 | ) | (11,974 | ) | ||||||||||
| Loans, net | $ | 1,450,604 | $ | 982,016 | $ | 977,423 | $ | 960,371 | $ | 957,456 | ||||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)
| (unaudited) | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | |||||||||||
| Operating Net Income | |||||||||||||||
| Net income (GAAP) | $ | (933 | ) | $ | 2,248 | $ | (851 | ) | $ | 6,966 | $ | 9,624 | |||
| Add: Merger-related expenses | 7,316 | 219 | — | 8,107 | — | ||||||||||
| Add: Day 2 Non-PCD Provision | 3,931 | — | — | 3,931 | — | ||||||||||
| Subtract: Bargain purchase gain | (2,920 | ) | — | — | (2,920 | ) | — | ||||||||
| Subtract: Tax effect of adjustment (4) | (1,439 | ) | (19 | ) | — | (1,463 | ) | — | |||||||
| Adjusted operating net income (non-GAAP) | $ | 5,955 | $ | 2,448 | $ | (851 | ) | $ | 14,621 | $ | 9,624 | ||||
| Adjusted Earnings Per Share, Basic | |||||||||||||||
| Weighted average shares, basic | 8,971,649 | 6,287,997 | 6,261,500 | 6,955,592 | 6,265,394 | ||||||||||
| Basic earnings (loss) per share (GAAP) | $ | (0.10 | ) | $ | 0.36 | $ | (0.14 | ) | $ | 1.00 | $ | 1.54 | |||
| Adjusted earnings (loss) per share, basic (non-GAAP) | $ | 0.66 | $ | 0.39 | $ | (0.14 | ) | $ | 2.10 | $ | 1.54 | ||||
| Adjusted Earnings Per Share, Diluted | |||||||||||||||
| Weighted average shares, diluted | 8,994,315 | 6,303,282 | 6,282,815 | 6,971,089 | 6,279,106 | ||||||||||
| Diluted earnings (loss) per share (GAAP) | $ | (0.10 | ) | $ | 0.36 | $ | (0.14 | ) | $ | 1.00 | $ | 1.53 | |||
| Adjusted diluted earnings (loss) per share (non-GAAP) | $ | 0.66 | $ | 0.39 | $ | (0.14 | ) | $ | 2.10 | $ | 1.53 | ||||
| Adjusted Pre-Provision, Pre-Tax Earnings | |||||||||||||||
| Net interest income | $ | 18,359 | $ | 11,749 | $ | 10,809 | $ | 52,452 | $ | 43,413 | |||||
| Total noninterest income | 6,444 | 3,203 | 3,069 | 16,380 | 11,784 | ||||||||||
| Net revenue | $ | 24,803 | $ | 14,952 | $ | 13,878 | $ | 68,832 | $ | 55,197 | |||||
| Total noninterest expense | 21,929 | 10,459 | 9,100 | 52,934 | 37,242 | ||||||||||
| Pre-provision, pre-tax earnings | $ | 2,874 | $ | 4,493 | $ | 4,778 | $ | 15,898 | $ | 17,955 | |||||
| Add: Merger expenses | 7,316 | 219 | — | 8,107 | — | ||||||||||
| Add: Day 2 Non-PCD Provision | 3,931 | — | — | 3,931 | — | ||||||||||
| Subtract: Bargain purchase gain | (2,920 | ) | — | — | (2,920 | ) | — | ||||||||
| Adjusted pre-provision, pre-tax, earnings | $ | 7,270 | $ | 4,712 | $ | 4,778 | $ | 21,085 | $ | 17,955 | |||||
| Adjusted Performance Ratios | |||||||||||||||
| Average assets | $ | 2,051,578 | $ | 1,449,185 | $ | 1,372,365 | $ | 1,597,150 | $ | 1,363,339 | |||||
| Return on average assets (GAAP) | (0.18 | %) | 0.62 | % | (0.25 | %) | 0.44 | % | 0.71 | % | |||||
| Adjusted return on average assets (non-GAAP) | 1.15 | % | 0.67 | % | (0.25 | %) | 0.92 | % | 0.71 | % | |||||
| Average shareholders’ equity | $ | 157,844 | $ | 122,802 | 113,614 | $ | 130,715 | $ | 112,083 | ||||||
| Return on average equity (GAAP) | (2.35 | %) | 7.28 | % | (2.97 | %) | 5.33 | % | 8.59 | % | |||||
| Adjusted return on average equity (non-GAAP) | 15.01 | % | 7.93 | % | (2.97 | %) | 11.19 | % | 8.59 | % | |||||
| Pre-provision, pre-tax return on average assets (non-GAAP) | 0.56 | % | 1.24 | % | 1.39 | % | 1.00 | % | 1.32 | % | |||||
| Adjusted pre-provision, pre-tax return on average assets (non-GAAP) | 1.42 | % | 1.30 | % | 1.39 | % | 1.32 | % | 1.32 | % | |||||
| Net Interest Margin | |||||||||||||||
| Tax-equivalent net interest income | $ | 18,461 | $ | 11,842 | $ | 10,889 | $ | 52,821 | $ | 43,738 | |||||
| Average earning assets | 1,919,864 | 1,374,566 | 1,290,231 | 1,504,946 | 1,280,980 | ||||||||||
| Net interest margin (non-GAAP) | 3.83 | % | 3.43 | % | 3.35 | % | 3.51 | % | 3.41 | % | |||||
FIRST NATIONAL CORPORATION Non-GAAP Reconciliation (in thousands, except share and per share data) (unaudited) | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | |||||||||||
| Efficiency Ratio | |||||||||||||||
| Total noninterest expense (GAAP) | $ | 21,929 | $ | 10,459 | $ | 9,100 | $ | 52,934 | $ | 37,242 | |||||
| Add: other real estate owned income, net | (5 | ) | (10 | ) | (2 | ) | (15 | ) | 199 | ||||||
| Subtract: amortization of intangibles | (448 | ) | (4 | ) | (4 | ) | (461 | ) | (18 | ) | |||||
| Subtract: loss on disposal of premises and equipment, net | 3 | (2 | ) | — | (47 | ) | — | ||||||||
| Subtract: merger expenses | (7,316 | ) | (219 | ) | — | (8,107 | ) | — | |||||||
| Adjusted non-interest expense (non-GAAP) | $ | 14,163 | $ | 10,224 | $ | 9,094 | $ | 44,304 | $ | 37,423 | |||||
| Tax-equivalent net interest income (non-GAAP) | $ | 18,461 | $ | 11,842 | $ | 10,889 | $ | 52,821 | $ | 43,738 | |||||
| Total noninterest income (GAAP) | 6,444 | 3,203 | 3,069 | 16,380 | 11,784 | ||||||||||
| (Gain) loss on disposal of premises and equipment | — | — | (47 | ) | — | (47 | ) | ||||||||
| Gain on sale of other investment | — | — | (186 | ) | — | (186 | ) | ||||||||
| Bargain purchase gain | (2,920 | ) | — | — | (2,920 | ) | — | ||||||||
| Securities losses (gains), net | 154 | (39 | ) | — | 115 | — | |||||||||
| Adjusted income for efficiency ratio (non-GAAP) | $ | 22,139 | $ | 15,006 | $ | 13,725 | $ | 66,396 | $ | 55,289 | |||||
| Efficiency ratio (non-GAAP) | 63.97 | % | 68.13 | % | 66.26 | % | 66.73 | % | 67.69 | % | |||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliation
(in thousands, except share and per share data)
| (unaudited) | ||||||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||||||
| Dec 31, 2024 | Sept 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | ||||||||||||||||
| Tax-Equivalent Net Interest Income | ||||||||||||||||||||
| GAAP measures: | ||||||||||||||||||||
| Interest income – loans | $ | 21,516 | $ | 14,479 | $ | 13,255 | $ | 63,483 | $ | 49,293 | ||||||||||
| Interest income – investments and other | 3,970 | 2,965 | 2,019 | 12,836 | 8,426 | |||||||||||||||
| Interest expense – deposits | (6,415 | ) | (4,958 | ) | (4,232 | ) | (20,964 | ) | (13,660 | ) | ||||||||||
| Interest expense – federal funds purchased | (1 | ) | - | - | (1 | ) | - | |||||||||||||
| Interest expense – subordinated debt | (396 | ) | (69 | ) | (70 | ) | (603 | ) | (277 | ) | ||||||||||
| Interest expense – junior subordinated debt | (68 | ) | (68 | ) | (68 | ) | (270 | ) | (271 | ) | ||||||||||
| Interest expense – other borrowings | (247 | ) | (600 | ) | (95 | ) | (2,029 | ) | (98 | ) | ||||||||||
| Net interest income | $ | 18,359 | $ | 11,749 | $ | 10,809 | $ | 52,452 | $ | 43,413 | ||||||||||
| Non-GAAP measures: | ||||||||||||||||||||
| Add: Tax benefit realized on non-taxable interest income – loans (4) | $ | 18 | $ | 13 | $ | — | $ | 43 | $ | — | ||||||||||
| Add: Tax benefit realized on non-taxable interest income – municipal securities (4) | 84 | 80 | 80 | 326 | 325 | |||||||||||||||
| Tax benefit realized on non-taxable interest income | $ | 102 | $ | 93 | $ | 80 | $ | 369 | $ | 325 | ||||||||||
| Tax-equivalent net interest income | $ | 18,461 | $ | 11,842 | $ | 10,889 | $ | 52,821 | $ | 43,738 | ||||||||||
| Tangible Common Equity and Tangible Assets | ||||||||||||||||||||
| Total assets (GAAP) | $ | 2,010,281 | $ | 1,450,716 | $ | 1,419,295 | $ | 2,010,281 | $ | 1,419,295 | ||||||||||
| Subtract: goodwill | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | ||||||||||
| Subtract: core deposit intangibles, net | (14,986 | ) | (104 | ) | (117 | ) | (14,986 | ) | (117 | ) | ||||||||||
| Tangible assets (Non-GAAP) | $ | 1,992,265 | $ | 1,447,582 | $ | 1,416,148 | $ | 1,992,265 | $ | 1,416,148 | ||||||||||
| Total shareholders’ equity (GAAP) | $ | 166,531 | $ | 125,115 | $ | 116,271 | $ | 166,531 | $ | 116,271 | ||||||||||
| Subtract: goodwill | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | ||||||||||
| Subtract: core deposit intangibles, net | (14,986 | ) | (104 | ) | (117 | ) | (14,986 | ) | (117 | ) | ||||||||||
| Tangible common equity (Non-GAAP) | $ | 148,515 | $ | 121,981 | $ | 113,124 | $ | 148,515 | $ | 113,124 | ||||||||||
| Tangible common equity to tangible assets ratio | 7.45 | % | 8.43 | % | 7.99 | % | 7.45 | % | 7.99 | % | ||||||||||
| Tangible Book Value Per Share | ||||||||||||||||||||
| Tangible common equity (non-GAAP) | $ | 148,515 | $ | 121,981 | $ | 113,124 | $ | 148,515 | $ | 113,124 | ||||||||||
| Common shares outstanding, ending | 8,974,102 | 6,296,705 | 6,263,102 | 8,974,102 | 6,263,102 | |||||||||||||||
| Tangible book value per share | $ | 16.48 | $ | 19.37 | $ | 18.06 | $ | 16.48 | $ | 18.06 | ||||||||||
| (1) | Non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” for additional information and detailed calculations of adjustments. |
| (2) | Capital ratios are for First Bank. |
| (3) | Nonperforming assets are comprised of nonaccrual loans and other real estate owned. |
| (4) | The tax rate utilized in calculating the tax benefit is |
FAQ
What was FXNC's net loss in Q4 2024?
How much did the Touchstone acquisition add to FXNC's assets in Q4 2024?
What was FXNC's net interest margin in Q4 2024?
How much were FXNC's merger-related costs in Q4 2024?
What is FXNC's current quarterly dividend payment?
