First National Corporation Reports Third Quarter 2024 Financial Results
First National (NASDAQ: FXNC) reported Q3 2024 unaudited consolidated net income of $2.2 million and earnings per share of $0.36. Key highlights include a net interest margin improvement to 3.43%, a 2% annualized loan growth, stable noninterest-bearing deposits at 31% of total deposits, and a 19% increase in noninterest income. The company completed the acquisition of Touchstone Bankshares on October 1, 2024, resulting in a combined entity with approximately $2.1 billion in assets, $1.5 billion in loans, and $1.8 billion in deposits. The allowance for credit losses on loans stood at 1.28% of total loans, with net charge-offs at 0.63% for the quarter.
First National (NASDAQ: FXNC) ha riportato un reddito netto consolidato non verificato di $2,2 milioni per il terzo trimestre del 2024 e un utile per azione di $0,36. I punti salienti includono un miglioramento del margine di interesse netto al 3,43%, una crescita dei prestiti annualizzata del 2%, depositi non interessati stabili al 31% del totale dei depositi e un incremento del 19% nel reddito non da interessi. L'azienda ha completato l'acquisizione di Touchstone Bankshares il 1° ottobre 2024, risultando in un'entità combinata con circa $2,1 miliardi in attivi, $1,5 miliardi in prestiti e $1,8 miliardi in depositi. La riserva per perdite su crediti sui prestiti si è attestata all'1,28% del totale dei prestiti, con perdite nette su crediti pari allo 0,63% per il trimestre.
First National (NASDAQ: FXNC) reportó un ingreso neto consolidado no auditado de $2.2 millones en el tercer trimestre de 2024 y ganancias por acción de $0.36. Los aspectos más destacados incluyen una mejora en el margen de interés neto al 3.43%, un crecimiento anualizado de préstamos del 2%, depósitos no remunerados estables en el 31% del total de los depósitos y un aumento del 19% en los ingresos no por intereses. La compañía completó la adquisición de Touchstone Bankshares el 1 de octubre de 2024, resultando en una entidad combinada con aproximadamente $2.1 mil millones en activos, $1.5 mil millones en préstamos y $1.8 mil millones en depósitos. La reserva para pérdidas crediticias sobre préstamos se situó en el 1.28% del total de préstamos, con cancelaciones netas del 0.63% para el trimestre.
퍼스트 내셔널 (NASDAQ: FXNC)는 2024년 3분기 감사되지 않은 연결 순이익이 220만 달러이며 주당 순이익이 0.36달러라고 보고했습니다. 주요 하이라이트로는 순이자 마진이 3.43%로 개선되었고, 연간 대출 성장률이 2%, 총 예금의 31%를 차지하는 비이자성 예금이 안정적이며, 비이자 수익이 19% 증가한 점이 포함됩니다. 이 회사는 2024년 10월 1일에 터치스톤 뱅크쉐어를 인수하여 약 21억 달러의 자산, 15억 달러의 대출 및 18억 달러의 예금을 가진 통합 주체를 구성했습니다. 대출의 신용 손실 충당금은 총 대출의 1.28%에 달하며, 분기 동안 순충당금은 0.63%였습니다.
First National (NASDAQ: FXNC) a annoncé un revenu net consolidé non audité de 2,2 millions de dollars pour le troisième trimestre 2024 et un bénéfice par action de 0,36 dollar. Les faits saillants incluent une amélioration de la marge d'intérêt nette à 3,43%, une croissance des prêts annualisée de 2%, des dépôts non rémunérés stables à 31% du total des dépôts, et une augmentation de 19% des revenus non issus des intérêts. L'entreprise a finalisé l'acquisition de Touchstone Bankshares le 1er octobre 2024, créant ainsi une entité combinée avec environ 2,1 milliards de dollars d'actifs, 1,5 milliard de dollars de prêts et 1,8 milliard de dollars de dépôts. La provision pour créances douteuses sur les prêts s'élevait à 1,28% du total des prêts, avec des annulations nettes de 0,63% pour le trimestre.
First National (NASDAQ: FXNC) berichtete im dritten Quartal 2024 von einem nicht geprüften konsolidierten Nettogewinn von 2,2 Millionen Dollar und einem Gewinn pro Aktie von 0,36 Dollar. Zu den wichtigsten Punkten gehören eine Verbesserung der Nettozinsmarge auf 3,43%, ein annualisierter Kreditwachstums von 2%, stabile nicht zinstragende Einlagen, die 31% der Gesamteinlagen ausmachen, und ein Anstieg der nichtzinstragenden Erträge um 19%. Das Unternehmen hat am 1. Oktober 2024 die Übernahme von Touchstone Bankshares abgeschlossen, was zu einer kombinierten Einheit mit rund 2,1 Milliarden Dollar an Vermögenswerten, 1,5 Milliarden Dollar an Darlehen und 1,8 Milliarden Dollar an Einlagen führte. Die Rückstellung für Kreditverluste bei Darlehen lag bei 1,28% der Gesamtdarlehen, wobei die netten Ausbuchungen im Quartal bei 0,63% lagen.
- Net interest margin improved to 3.43% from 3.40% in Q2
- Noninterest income increased by 19%
- Loan balances grew by 2% annualized
- Tangible book value per share increased to $19.37 from $17.38 year-over-year
- Strategic acquisition of Touchstone Bankshares expanding assets to $2.1 billion
- Net income decreased to $2.2M from $3.1M year-over-year
- Return on average assets declined to 0.62% from 0.91% year-over-year
- Net charge-offs increased to 0.63% from 0.19% in Q2
- Nonperforming assets increased to 0.41% from 0.23% year-over-year
- Earnings per share decreased to $0.36 from $0.50 year-over-year
Insights
The Q3 2024 results reveal mixed performance with some concerning trends. Net income decreased to
Notable positives include a slight improvement in net interest margin to
The recent Touchstone acquisition, expanding assets to
STRASBURG, Va., Nov. 01, 2024 (GLOBE NEWSWIRE) -- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), reported unaudited consolidated net income of
| (Dollars in thousands, except earnings per share) | Three Months Ended | |||||||||||
| Sept 30, 2024 | Jun 30, 2024 | Sept 30, 2023 | ||||||||||
| Net income | $ | 2,248 | $ | 2,442 | $ | 3,121 | ||||||
| Basic and diluted earnings per share | $ | 0.36 | $ | 0.39 | $ | 0.50 | ||||||
| Return on average assets | 0.62 | % | 0.68 | % | 0.91 | % | ||||||
| Return on average equity | 7.28 | % | 8.31 | % | 10.96 | % | ||||||
| Non-GAAP Measures: | ||||||||||||
| Adjusted net income(1) | $ | 2,448 | $ | 3,008 | $ | 3,121 | ||||||
| Adjusted basic and diluted earnings per share(1) | $ | 0.39 | $ | 0.48 | $ | 0.50 | ||||||
| Adjusted return on average assets(1) | 0.67 | % | 0.84 | % | 0.91 | % | ||||||
| Adjusted return on average equity(1) | 7.93 | % | 10.23 | % | 10.96 | % | ||||||
| Adjusted pre-provision, pre-tax earnings(1) | $ | 4,712 | $ | 4,092 | $ | 3,952 | ||||||
| Adjusted pre-provision, pre-tax return on average assets(1) | 1.29 | % | 1.14 | % | 1.16 | % | ||||||
| Net interest margin(1) | 3.43 | % | 3.40 | % | 3.35 | % | ||||||
| Efficiency ratio(1) | 67.95 | % | 70.65 | % | 70.67 | % | ||||||
*See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” for additional information and detailed calculations of adjustments.
“During the third quarter the company saw continued improvement in net interest margin thanks to proactive deposit pricing boosted by sticky noninterest-bearing deposits continuing to represent
THIRD QUARTER HIGHLIGHTS
Key highlights of the three months ending September 30, 2024, are as follows. Comparisons are to the three-month period ending June 30, 2024, unless otherwise stated:
| ● | Net interest margin(1) continued to improve to | |
| ● | Loan balances increased by | |
| ● | Noninterest-bearing deposits were stable at | |
| ● | Noninterest income increased by | |
| ● | Adjusted ROA and ROE(1) of | |
| ● | Tangible book value per share(1) increased to |
MERGER WITH TOUCHSTONE BANKSHARES, INC.
The Company completed the acquisition of Touchstone Bankshares, Inc. (“Touchstone”) with and into the Company, effective October 1, 2024 (the “Merger”). Immediately following the Merger, Touchstone Bank, the wholly owned subsidiary of Touchstone, was merged with and into First Bank. Pursuant to the previously announced terms of the Merger, each outstanding share of Touchstone common stock and preferred stock (on an as-converted, one-for-one basis, which shares of preferred stock converted automatically to common stock at the effective time of the Merger) received 0.8122 shares of the Company’s common stock.
Following the Merger, the former branches of Touchstone Bank assumed in the Merger continued to operate in Virginia as Touchstone Bank, a division of First Bank, and, in North Carolina, as Touchstone Bank, a division of First Bank, Strasburg, Virginia, until the systems integration is completed in February 2025. With the addition of Touchstone, the Company would have had approximately
NET INTEREST INCOME
Net interest income increased
The
The
NONINTEREST INCOME
Noninterest income totaled
NONINTEREST EXPENSE
Noninterest expense totaled
ASSET QUALITY
Overview
Loans that were past due greater than 30 days and still accruing interest as a percentage of total loans were
Past Due Loans
Loans past due greater than 30 days and still accruing interest totaled
Nonperforming Assets
NPAs decreased to
Net Charge-offs
Net charge-offs totaled
Provision for Credit Losses
The provision for credit losses totaled
Allowance for Credit Losses on Loans
The allowance for credit losses on loans totaled
The following table provides the changes in the allowance for credit losses on loans for the three-month periods ended (dollars in thousands):
| Sept 30, 2024 | Jun 30, 2024 | Sept 30, 2023 | ||||||||||
| Allowance for credit losses on loans, beginning of period | $ | 12,553 | $ | 12,603 | $ | 8,858 | ||||||
| Net charge-offs | (1,572 | ) | (482 | ) | (83 | ) | ||||||
| Provision for credit losses on loans | 1,723 | 432 | 121 | |||||||||
| Allowance for credit losses on loans, end of period | $ | 12,704 | $ | 12,553 | $ | 8,896 | ||||||
The allowance for credit losses on loans as a percentage of total loans totaled
Allowance for Credit Losses on Unfunded Commitments
The allowance for credit losses on unfunded commitments totaled
Allowance for Credit Losses on Securities
The allowance for credit losses on securities held-to-maturity (“HTM”) totaled
LIQUIDITY
Liquidity sources available to the Bank, including interest-bearing deposits in banks, unpledged securities available for sale, at fair value, unpledged securities held-to-maturity, at par, that were eligible to be pledged to the Federal Reserve Bank through its Bank Term Funding Program, and available lines of credit totaled
The Bank maintains liquidity to fund loan growth and to meet potential demand from deposit customers. The estimated amount of uninsured customer deposits totaled
BALANCE SHEET
Assets totaled
On September 30, 2024, loans totaled
On September 30, 2024, securities totaled
On September 30, 2024, total deposits were
On September 30, 2024 and June 30, 2024, other borrowings totaled
The following table provides capital ratios at the periods ended:
| Sept 30, 2024 | Jun 30, 2024 | Sept 30, 2023 | ||||||||||
| Total capital ratio(2) | 14.29 | % | 14.13 | % | 14.80 | % | ||||||
| Tier 1 capital ratio(2) | 13.04 | % | 12.88 | % | 13.86 | % | ||||||
| Common equity Tier 1 capital ratio(2) | 13.04 | % | 12.88 | % | 13.86 | % | ||||||
| Leverage ratio(2) | 9.23 | % | 9.17 | % | 9.96 | % | ||||||
| Common equity to total assets(3) | 8.62 | % | 8.23 | % | 8.20 | % | ||||||
| Tangible common equity to tangible assets(1)(3) | 8.43 | % | 8.03 | % | 8.00 | % | ||||||
During the third quarter of 2024, the Company declared and paid cash dividends of
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 the Company’s management believes 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 net 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, performance and financial position. 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 (the “Bank”), a community bank that first opened for business in 1907 in Strasburg, Virginia. The Bank offers loan and deposit products and services through its website, www.fbvirginia.com, its mobile banking platform, a network of ATMs located throughout its market area, three loan production offices, a customer service center in a retirement community, and thirty-three bank branch office locations located throughout the Shenandoah Valley, the Roanoke Valley, the central and south-central regions of Virginia, the city of Richmond, 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. The 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 Report 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 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 | M. Shane Bell | |
| President and CEO | Executive Vice President and CFO | |
| (540) 465-9121 | (540) 465-9121 | |
| sharvard@fbvirginia.com | sbell@fbvirginia.com |
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 Nine Months Ended | |||||||||||||||||||
| Sept 30, 2024 | Jun 30, 2024 | Sept 30, 2023 | Sept 30, 2024 | Sept 30, 2023 | ||||||||||||||||
| Income Statement | ||||||||||||||||||||
| Interest and dividend income | ||||||||||||||||||||
| Interest and fees on loans | $ | 14,479 | $ | 14,004 | $ | 12,640 | $ | 41,967 | $ | 36,038 | ||||||||||
| Interest on deposits in banks | 1,538 | 1,579 | 338 | 4,405 | 1,441 | |||||||||||||||
| Taxable interest on securities | 1,091 | 1,134 | 1,323 | 3,449 | 3,968 | |||||||||||||||
| Tax-exempt interest on securities | 303 | 306 | 304 | 914 | 917 | |||||||||||||||
| Dividends | 33 | 32 | 26 | 98 | 81 | |||||||||||||||
| Total interest and dividend income | $ | 17,444 | $ | 17,055 | $ | 14,631 | $ | 50,833 | $ | 42,445 | ||||||||||
| Interest expense | ||||||||||||||||||||
| Interest on deposits | $ | 4,958 | $ | 4,820 | $ | 3,810 | $ | 14,549 | $ | 9,428 | ||||||||||
| Interest on subordinated debt | 69 | 69 | 69 | 207 | 207 | |||||||||||||||
| Interest on junior subordinated debt | 68 | 66 | 69 | 202 | 203 | |||||||||||||||
| Interest on other borrowings | 600 | 606 | — | 1,782 | 3 | |||||||||||||||
| Total interest expense | $ | 5,695 | $ | 5,561 | $ | 3,948 | $ | 16,740 | $ | 9,841 | ||||||||||
| Net interest income | $ | 11,749 | $ | 11,494 | $ | 10,683 | $ | 34,093 | $ | 32,604 | ||||||||||
| Provision for credit losses | 1,700 | 400 | 100 | 3,100 | 200 | |||||||||||||||
| Net interest income after provision for credit losses | $ | 10,049 | $ | 11,094 | $ | 10,583 | $ | 30,993 | $ | 32,404 | ||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges on deposit accounts | $ | 675 | $ | 612 | $ | 733 | $ | 1,941 | $ | 2,062 | ||||||||||
| ATM and check card fees | 934 | 809 | 976 | 2,513 | 2,624 | |||||||||||||||
| Wealth management fees | 952 | 879 | 811 | 2,714 | 2,336 | |||||||||||||||
| Fees for other customer services | 276 | 178 | 122 | 649 | 538 | |||||||||||||||
| Brokered mortgage fees | 92 | 32 | 38 | 162 | 73 | |||||||||||||||
| Income from bank owned life insurance | 191 | 149 | 175 | 491 | 459 | |||||||||||||||
| Net gains on securities available for sale | 39 | — | — | 39 | — | |||||||||||||||
| Other operating income | 44 | 27 | 198 | 1,427 | 623 | |||||||||||||||
| Total noninterest income | $ | 3,203 | $ | 2,686 | $ | 3,053 | $ | 9,936 | $ | 8,715 | ||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | $ | 5,927 | $ | 5,839 | $ | 5,505 | $ | 17,637 | $ | 16,040 | ||||||||||
| Occupancy | 585 | 548 | 534 | 1,668 | 1,586 | |||||||||||||||
| Equipment | 726 | 691 | 598 | 2,008 | 1,756 | |||||||||||||||
| Marketing | 262 | 273 | 204 | 730 | 720 | |||||||||||||||
| Supplies | 123 | 115 | 128 | 354 | 423 | |||||||||||||||
| Legal and professional fees | 596 | 1,124 | 439 | 2,172 | 1,204 | |||||||||||||||
| ATM and check card expense | 394 | 368 | 440 | 1,123 | 1,265 | |||||||||||||||
| FDIC assessment | 195 | 203 | 161 | 575 | 479 | |||||||||||||||
| Bank franchise tax | 262 | 261 | 262 | 785 | 778 | |||||||||||||||
| Data processing expense | 290 | 163 | 266 | 699 | 720 | |||||||||||||||
| Amortization expense | 4 | 5 | 5 | 13 | 14 | |||||||||||||||
| Other real estate owned expense (income), net | 10 | — | 15 | 10 | (201 | ) | ||||||||||||||
| Net losses on disposal of premises and equipment | 2 | — | — | 50 | — | |||||||||||||||
| Other operating expense | 1,083 | 1,069 | 1,227 | 3,181 | 3,358 | |||||||||||||||
| Total noninterest expense | $ | 10,459 | $ | 10,659 | $ | 9,784 | $ | 31,005 | $ | 28,142 | ||||||||||
| Income before income taxes | $ | 2,793 | $ | 3,121 | $ | 3,852 | $ | 9,924 | $ | 12,977 | ||||||||||
| Income tax expense | 545 | 679 | 731 | 2,025 | 2,502 | |||||||||||||||
| Net income | $ | 2,248 | $ | 2,442 | $ | 3,121 | $ | 7,899 | $ | 10,475 | ||||||||||
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
| Sept 30, 2024 | Jun 30, 2024 | Sept 30, 2023 | Sept 30, 2024 | Sept 30, 2023 | ||||||||||||||||
| Common Share and Per Common Share Data | ||||||||||||||||||||
| Earnings per common share, basic | $ | 0.36 | $ | 0.39 | $ | 0.50 | $ | 1.26 | $ | 1.67 | ||||||||||
| Adjusted earnings per common share, basic (1) | $ | 0.39 | 0.48 | 0.50 | $ | 1.38 | $ | 1.67 | ||||||||||||
| Weighted average shares, basic | 6,287,997 | 6,278,113 | 6,256,663 | 6,278,668 | 6,266,707 | |||||||||||||||
| Earnings per common share, diluted | $ | 0.36 | $ | 0.39 | $ | 0.50 | $ | 1.26 | $ | 1.67 | ||||||||||
| Adjusted earnings per common share, diluted (1) | $ | 0.39 | 0.48 | 0.50 | $ | 1.38 | $ | 1.67 | ||||||||||||
| Weighted average shares, diluted | 6,303,282 | 6,289,405 | 6,271,351 | 6,291,775 | 6,276,502 | |||||||||||||||
| Shares outstanding at period end | 6,296,705 | 6,280,406 | 6,260,934 | 6,296,705 | 6,260,934 | |||||||||||||||
| Tangible book value per share at period end (1) | $ | 19.37 | $ | 18.59 | $ | 17.38 | $ | 19.37 | $ | 17.38 | ||||||||||
| Cash dividends | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.45 | $ | 0.45 | ||||||||||
| Key Performance Ratios | ||||||||||||||||||||
| Return on average assets | 0.62 | % | 0.68 | % | 0.91 | % | 0.73 | % | 1.03 | % | ||||||||||
| Adjusted return on average assets (1) | 0.67 | % | 0.84 | % | 0.91 | % | 0.80 | % | 1.03 | % | ||||||||||
| Return on average equity | 7.28 | % | 8.31 | % | 10.96 | % | 8.84 | % | 12.57 | % | ||||||||||
| Adjusted return on average equity (1) | 7.93 | % | 10.23 | % | 10.96 | % | 9.70 | % | 12.57 | % | ||||||||||
| Net interest margin(1) | 3.43 | % | 3.40 | % | 3.35 | % | 3.36 | % | 3.44 | % | ||||||||||
| Efficiency ratio (1) | 67.95 | % | 70.65 | % | 70.67 | % | 68.05 | % | 68.17 | % | ||||||||||
| Average Balances | ||||||||||||||||||||
| Average assets | $ | 1,449,185 | $ | 1,448,478 | $ | 1,355,113 | $ | 1,441,965 | $ | 1,360,154 | ||||||||||
| Average earning assets | 1,374,566 | 1,370,187 | 1,275,111 | 1,366,639 | 1,278,135 | |||||||||||||||
| Average shareholders’ equity | 122,802 | 118,255 | 112,987 | 119,303 | 111,460 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Loan charge-offs | $ | 1,667 | $ | 521 | $ | 143 | $ | 2,601 | $ | 1,228 | ||||||||||
| Loan recoveries | 95 | 39 | 60 | 185 | 326 | |||||||||||||||
| Net charge-offs | 1,572 | 482 | 83 | 2,416 | 902 | |||||||||||||||
| Non-accrual loans | 5,929 | 8,549 | 3,116 | 5,929 | 3,116 | |||||||||||||||
| Other real estate owned, net | 56 | — | — | 56 | — | |||||||||||||||
| Nonperforming assets (5) | 5,985 | 8,549 | 3,116 | 5,985 | 3,116 | |||||||||||||||
| Loans 30 to 89 days past due, accruing | 2,358 | 2,399 | 1,395 | 2,358 | 1,395 | |||||||||||||||
| Loans over 90 days past due, accruing | — | — | 370 | — | 370 | |||||||||||||||
| Special mention loans | 516 | 1,380 | — | 516 | — | |||||||||||||||
| Substandard loans, accruing | 1,713 | 279 | 1,683 | 1,713 | 1,683 | |||||||||||||||
| Capital Ratios (2) | ||||||||||||||||||||
| Total capital | $ | 148,477 | $ | 147,500 | $ | 146,163 | $ | 148,477 | $ | 146,163 | ||||||||||
| Tier 1 capital | 135,490 | 134,451 | 136,947 | 135,490 | 136,947 | |||||||||||||||
| Common equity Tier 1 capital | 135,490 | 134,451 | 136,947 | 135,490 | 136,947 | |||||||||||||||
| Total capital to risk-weighted assets | 14.29 | % | 14.13 | % | 14.80 | % | 14.29 | % | 14.80 | % | ||||||||||
| Tier 1 capital to risk-weighted assets | 13.04 | % | 12.88 | % | 13.86 | % | 13.04 | % | 13.86 | % | ||||||||||
| Common equity Tier 1 capital to risk-weighted assets | 13.04 | % | 12.88 | % | 13.86 | % | 13.04 | % | 13.86 | % | ||||||||||
| Leverage ratio | 9.23 | % | 9.17 | % | 9.97 | % | 9.23 | % | 9.97 | % | ||||||||||
FIRST NATIONAL CORPORATION
Performance Summary
(in thousands, except share and per share data)
(unaudited)
| For the Period Ended | ||||||||||||||||||||
| Sept 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sept 30, 2023 | ||||||||||||||||
| Balance Sheet | ||||||||||||||||||||
| Cash and due from banks | $ | 18,197 | $ | 16,729 | $ | 14,476 | $ | 17,194 | $ | 17,168 | ||||||||||
| Interest-bearing deposits in banks | 108,319 | 118,906 | 124,232 | 69,967 | 32,931 | |||||||||||||||
| Cash and cash equivalents | $ | 126,516 | $ | 135,635 | $ | 138,708 | $ | 87,161 | $ | 50,099 | ||||||||||
| Securities available for sale, at fair value | 146,013 | 144,816 | 147,675 | 152,857 | 148,175 | |||||||||||||||
| Securities held to maturity, at amortized cost (net of allowance for credit losses) | 121,425 | 123,497 | 125,825 | 148,244 | 149,948 | |||||||||||||||
| Restricted securities, at cost | 2,112 | 2,112 | 2,112 | 2,078 | 2,077 | |||||||||||||||
| Loans, net of allowance for credit losses | 982,016 | 977,423 | 960,371 | 957,456 | 943,603 | |||||||||||||||
| Other real estate owned, net | 56 | — | — | — | — | |||||||||||||||
| Premises and equipment, net | 22,960 | 22,205 | 21,993 | 22,142 | 21,363 | |||||||||||||||
| Accrued interest receivable | 4,794 | 4,916 | 4,978 | 4,655 | 4,502 | |||||||||||||||
| Bank owned life insurance | 24,992 | 24,802 | 24,652 | 24,902 | 24,734 | |||||||||||||||
| Goodwill | 3,030 | 3,030 | 3,030 | 3,030 | 3,030 | |||||||||||||||
| Core deposit intangibles, net | 104 | 108 | 113 | 117 | 122 | |||||||||||||||
| Other assets | 16,698 | 18,984 | 17,738 | 16,653 | 18,567 | |||||||||||||||
| Total assets | $ | 1,450,716 | $ | 1,457,528 | $ | 1,447,195 | $ | 1,419,295 | $ | 1,366,220 | ||||||||||
| Noninterest-bearing demand deposits | $ | 383,400 | $ | 397,770 | $ | 384,092 | $ | 379,208 | $ | 403,774 | ||||||||||
| Savings and interest-bearing demand deposits | 663,925 | 665,208 | 677,458 | 662,169 | 646,980 | |||||||||||||||
| Time deposits | 205,930 | 202,818 | 197,587 | 192,349 | 184,419 | |||||||||||||||
| Total deposits | $ | 1,253,255 | $ | 1,265,796 | $ | 1,259,137 | $ | 1,233,726 | $ | 1,235,173 | ||||||||||
| Other borrowings | 50,000 | 50,000 | 50,000 | 50,000 | — | |||||||||||||||
| Subordinated debt, net | 4,999 | 4,998 | 4,998 | 4,997 | 4,997 | |||||||||||||||
| Junior subordinated debt | 9,279 | 9,279 | 9,279 | 9,279 | 9,279 | |||||||||||||||
| Accrued interest payable and other liabilities | 8,068 | 7,564 | 5,965 | 5,022 | 4,792 | |||||||||||||||
| Total liabilities | $ | 1,325,601 | $ | 1,337,637 | $ | 1,329,379 | $ | 1,303,024 | $ | 1,254,241 | ||||||||||
| Preferred stock | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Common stock | 7,871 | 7,851 | 7,847 | 7,829 | 7,826 | |||||||||||||||
| Surplus | 33,409 | 33,116 | 33,021 | 32,950 | 32,840 | |||||||||||||||
| Retained earnings | 99,270 | 97,966 | 96,465 | 94,198 | 95,988 | |||||||||||||||
| Accumulated other comprehensive (loss), net | (15,435 | ) | (19,042 | ) | (19,517 | ) | (18,706 | ) | (24,675 | ) | ||||||||||
| Total shareholders’ equity | $ | 125,115 | $ | 119,891 | $ | 117,816 | $ | 116,271 | $ | 111,979 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 1,450,716 | $ | 1,457,528 | $ | 1,447,195 | $ | 1,419,295 | $ | 1,366,220 | ||||||||||
| Loan Data | ||||||||||||||||||||
| Mortgage real estate loans: | ||||||||||||||||||||
| Construction and land development | $ | 61,446 | $ | 60,919 | $ | 53,364 | $ | 52,680 | $ | 50,405 | ||||||||||
| Secured by farmland | 9,099 | 8,911 | 9,079 | 9,154 | 7,113 | |||||||||||||||
| Secured by 1-4 family residential | 351,004 | 346,976 | 347,014 | 344,369 | 340,773 | |||||||||||||||
| Other real estate loans | 440,648 | 440,857 | 436,006 | 438,118 | 426,065 | |||||||||||||||
| Loans to farmers (except those secured by real estate) | 633 | 349 | 332 | 455 | 667 | |||||||||||||||
| Commercial and industrial loans (except those secured by real estate) | 114,190 | 115,951 | 113,230 | 112,619 | 116,463 | |||||||||||||||
| Consumer installment loans | 5,396 | 5,068 | 4,808 | 4,753 | 4,596 | |||||||||||||||
| Deposit overdrafts | 253 | 365 | 251 | 222 | 368 | |||||||||||||||
| All other loans | 12,051 | 10,580 | 8,890 | 7,060 | 6,049 | |||||||||||||||
| Total loans | $ | 994,720 | $ | 989,976 | $ | 972,974 | $ | 969,430 | $ | 952,499 | ||||||||||
| Allowance for credit losses | (12,704 | ) | (12,553 | ) | (12,603 | ) | (11,974 | ) | (8,896 | ) | ||||||||||
| Loans, net | $ | 982,016 | $ | 977,423 | $ | 960,371 | $ | 957,456 | $ | 943,603 | ||||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliations
(in thousands, except share and per share data)
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
| Sept 30, 2024 | Jun 30, 2024 | Sept 30, 2023 | Sept 30, 2024 | Sept 30, 2023 | ||||||||||||||||
| Adjusted Net Income | ||||||||||||||||||||
| Net income (GAAP) | $ | 2,248 | $ | 2,442 | $ | 3,121 | $ | 7,899 | $ | 10,475 | ||||||||||
| Add: Merger-related expenses | 219 | 571 | — | 790 | — | |||||||||||||||
| Subtract: Tax effect of adjustment (4) | (19 | ) | (5 | ) | — | (24 | ) | — | ||||||||||||
| Adjusted net income (non-GAAP) | $ | 2,448 | $ | 3,008 | $ | 3,121 | $ | 8,665 | $ | 10,475 | ||||||||||
| Adjusted Earnings Per Share, Basic | ||||||||||||||||||||
| Weighted average shares, basic | 6,287,997 | 6,278,113 | 6,256,663 | 6,278,668 | 6,266,707 | |||||||||||||||
| Basic earnings per share (GAAP) | $ | 0.36 | $ | 0.39 | $ | 0.50 | $ | 1.26 | $ | 1.67 | ||||||||||
| Adjusted earnings per share, basic (Non-GAAP) | $ | 0.39 | $ | 0.48 | $ | 0.50 | $ | 1.38 | $ | 1.67 | ||||||||||
| Adjusted Earnings Per Share, Diluted | ||||||||||||||||||||
| Weighted average shares, diluted | 6,303,282 | 6,289,405 | 6,271,351 | 6,291,775 | 6,276,502 | |||||||||||||||
| Diluted earnings per share (GAAP) | $ | 0.36 | $ | 0.39 | $ | 0.50 | $ | 1.26 | $ | 1.67 | ||||||||||
| Adjusted diluted earnings per share (Non-GAAP) | $ | 0.39 | $ | 0.48 | $ | 0.50 | $ | 1.38 | $ | 1.67 | ||||||||||
| Adjusted Pre-Provision, Pre-Tax Earnings | ||||||||||||||||||||
| Net interest income | $ | 11,749 | $ | 11,494 | $ | 10,683 | $ | 34,093 | $ | 32,604 | ||||||||||
| Total noninterest income | 3,203 | 2,686 | 3,053 | 9,936 | 8,715 | |||||||||||||||
| Net revenue | $ | 14,952 | $ | 14,180 | $ | 13,736 | $ | 44,029 | $ | 41,319 | ||||||||||
| Total noninterest expense | 10,459 | 10,659 | 9,784 | 31,005 | 28,142 | |||||||||||||||
| Pre-provision, pre-tax earnings | $ | 4,493 | $ | 3,521 | $ | 3,952 | $ | 13,024 | $ | 13,177 | ||||||||||
| Add: Merger expenses | 219 | 571 | - | 790 | - | |||||||||||||||
| Adjusted pre-provision, pre-tax, earnings | $ | 4,712 | $ | 4,092 | $ | 3,952 | $ | 13,814 | $ | 13,177 | ||||||||||
| Adjusted Performance Ratios | ||||||||||||||||||||
| Average assets | $ | 1,449,264 | $ | 1,448,478 | $ | 1,355,178 | $ | 1,441,996 | $ | 1,360,154 | ||||||||||
| Return on average assets (GAAP) | 0.62 | % | 0.68 | % | 0.91 | % | 0.73 | % | 1.03 | % | ||||||||||
| Adjusted return on average assets (Non-GAAP) | 0.67 | % | 0.84 | % | 0.91 | % | 0.80 | % | 1.03 | % | ||||||||||
| Average shareholders’ equity | $ | 122,802 | $ | 118,255 | 11,309 | $ | 119,303 | $ | 111,460 | |||||||||||
| Return on average equity (GAAP) | 7.28 | % | 8.31 | % | 10.96 | % | 8.87 | % | 12.57 | % | ||||||||||
| Adjusted return on average equity (Non-GAAP) | 7.93 | % | 10.23 | % | 10.96 | % | 9.70 | % | 12.57 | % | ||||||||||
| Pre-provision, pre-tax return on average assets | 1.23 | % | 0.98 | % | 1.16 | % | 1.21 | % | 1.30 | % | ||||||||||
| Adjusted pre-provision, pre-tax return on average assets | 1.29 | % | 1.14 | % | 1.16 | % | 1.28 | % | 1.30 | % | ||||||||||
| Net Interest Margin | ||||||||||||||||||||
| Tax-equivalent net interest income | $ | 11,842 | $ | 11,587 | $ | 10,764 | $ | 34,360 | $ | 32,848 | ||||||||||
| Average earning assets | 1,374,566 | 1,370,187 | 1,275,111 | 1,366,639 | 1,278,136 | |||||||||||||||
| Net interest margin | 3.43 | % | 3.40 | % | 3.35 | % | 3.36 | % | 3.44 | % | ||||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliations
(in thousands, except share and per share data)
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
| Sept 30, 2024 | June 30, 2024 | Sept 30, 2023 | Sept 30, 2024 | Sept 30, 2023 | |||||||||||||||||||||||
| Efficiency Ratio | |||||||||||||||||||||||||||
| Total noninterest expense | $ | 10,459 | $ | 10,659 | $ | 9,784 | $ | 31,005 | $ | 28,142 | |||||||||||||||||
| Add: other real estate owned income, net | (10 | ) | — | (15 | ) | (10 | ) | 201 | |||||||||||||||||||
| Subtract: amortization of intangibles | (4 | ) | (4 | ) | (5 | ) | (13 | ) | (14 | ) | |||||||||||||||||
| Subtract: loss on disposal of premises and equipment, net | (2 | ) | — | — | (50 | ) | — | ||||||||||||||||||||
| Subtract: merger expenses | (219 | ) | (571 | ) | — | (790 | ) | — | |||||||||||||||||||
| Subtotal | $ | 10,224 | $ | 10,084 | $ | 9,764 | $ | 30,142 | $ | 28,329 | |||||||||||||||||
| Tax-equivalent net interest income | $ | 11,842 | $ | 11,587 | $ | 10,764 | $ | 34,360 | $ | 32,848 | |||||||||||||||||
| Total noninterest income | 3,203 | 2,686 | 3,053 | 9,936 | 8,715 | ||||||||||||||||||||||
| Subtotal | $ | 15,045 | $ | 14,273 | $ | 13,817 | $ | 44,296 | $ | 41,563 | |||||||||||||||||
| Efficiency ratio | 67.95 | % | 70.65 | % | 70.67 | % | 68.05 | % | 68.16 | % | |||||||||||||||||
| Tax-Equivalent Net Interest Income | ||||||||||||||||||||
| GAAP measures: | ||||||||||||||||||||
| Interest income – loans | $ | 14,479 | $ | 14,004 | $ | 12,640 | $ | 41,967 | $ | 36,038 | ||||||||||
| Interest income – investments and other | 2,965 | 3,051 | 1,991 | 8,866 | 6,407 | |||||||||||||||
| Interest expense – deposits | (4,958 | ) | (4,820 | ) | (3,810 | ) | (14,549 | ) | (9,428 | ) | ||||||||||
| Interest expense – subordinated debt | (69 | ) | (69 | ) | (69 | ) | (207 | ) | (207 | ) | ||||||||||
| Interest expense – junior subordinated debt | (68 | ) | (66 | ) | (69 | ) | (202 | ) | (203 | ) | ||||||||||
| Interest expense – other borrowings | (600 | ) | (606 | ) | - | (1,782 | ) | (3 | ) | |||||||||||
| Net interest income | $ | 11,749 | $ | 11,494 | $ | 10,683 | $ | 34,093 | $ | 32,604 | ||||||||||
| Non-GAAP measures: | ||||||||||||||||||||
| Add: Tax benefit realized on non-taxable interest income – loans (4) | $ | 13 | $ | 12 | $ | — | $ | 25 | $ | — | ||||||||||
| Add: Tax benefit realized on non-taxable interest income – municipal securities (4) | 80 | 81 | 81 | 242 | 244 | |||||||||||||||
| Tax benefit realized on non-taxable interest income | $ | 93 | $ | 93 | $ | 81 | $ | 267 | $ | 244 | ||||||||||
| Tax-equivalent net interest income | $ | 11,842 | $ | 11,587 | $ | 10,764 | $ | 34,360 | $ | 32,848 | ||||||||||
| Tangible Common Equity and Tangible Assets | ||||||||||||||||||||
| Total assets (GAAP) | $ | 1,450,716 | $ | 1,457,528 | $ | 1,366,220 | $ | 1,451,032 | $ | 1,366,220 | ||||||||||
| Subtract: goodwill | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | ||||||||||
| Subtract: core deposit intangibles, net | (104 | ) | (108 | ) | (122 | ) | (104 | ) | (122 | ) | ||||||||||
| Tangible assets (Non-GAAP) | $ | 1,447,582 | $ | 1,454,390 | $ | 1,363,068 | $ | 1,447,898 | $ | 1,363,068 | ||||||||||
| Total shareholders’ equity (GAAP) | $ | 125,115 | $ | 119,891 | $ | 111,979 | $ | 125,115 | $ | 111,979 | ||||||||||
| Subtract: goodwill | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | (3,030 | ) | ||||||||||
| Subtract: core deposit intangibles, net | (104 | ) | (108 | ) | (122 | ) | (104 | ) | (122 | ) | ||||||||||
| Tangible common equity (Non-GAAP) | $ | 121,981 | $ | 116,753 | $ | 108,827 | $ | 121,981 | $ | 108,827 | ||||||||||
| Tangible common equity to tangible assets ratio | 8.43 | % | 8.03 | % | 8.00 | % | 8.43 | % | 8.00 | % | ||||||||||
FIRST NATIONAL CORPORATION
Non-GAAP Reconciliations
(in thousands, except share and per share data)
(unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||
| Sept 30, 2024 | June 30, 2024 | Sept 30, 2023 | Sept 30, 2024 | Sept 30, 2023 | ||||||||||||||||||
| Tangible Book Value Per Share | ||||||||||||||||||||||
| Tangible common equity | $ | 121,981 | $ | 116,753 | $ | 108,827 | $ | 121,981 | $ | 108,827 | ||||||||||||
| Common shares outstanding, ending | 6,296,705 | 6,280,406 | 6,260,934 | 6,296,705 | 6,260,934 | |||||||||||||||||
| Tangible book value per share | $ | 19.37 | $ | 18.59 | $ | 17.38 | $ | 19.37 | $ | 17.38 | ||||||||||||
(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) Capital ratios presented are for First National Corporation.
(4) The tax rate utilized in calculating the tax benefit is
(5) Nonperforming assets are comprised of nonaccrual loans and other real estate owned.
FAQ
What was First National 's (FXNC) earnings per share in Q3 2024?
What was FXNC's net interest margin in Q3 2024?
When did First National complete the Touchstone Bankshares acquisition?
What was FXNC's nonperforming assets ratio in Q3 2024?
