First National Corp ( (FXNC) ) has released its Q3 earnings. Here is a breakdown of the information First National Corp presented to its investors.
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First National Corporation (NASDAQ: FXNC) is a bank holding company for First Bank, a community bank offering a range of financial services including loans, deposits, and wealth management, primarily operating in Virginia and northern North Carolina.
In its third quarter of 2025, First National Corporation reported record earnings of $5.55 million, with earnings per share increasing to $0.62. The company highlighted its successful integration of the Touchstone acquisition and its strategic expansion into new markets, despite challenges in loan growth due to higher loan payoff volumes.
Key financial highlights include an 11% increase in basic earnings per share from the previous quarter and a 72% increase from the previous year. The return on average assets improved to 1.09%, and the return on average equity rose to 12.43%. The net interest margin stood at 3.84%, with non-performing assets declining to 0.28% of total assets, reflecting improved asset quality. Total deposits increased by 44.4% year-over-year, driven by the Touchstone acquisition.
Non-interest income saw an increase due to higher ATM and check card fees and a recorded bargain purchase gain from the Touchstone acquisition. However, non-interest expenses also rose, primarily due to increased salaries and benefits and occupancy costs. The company is planning to close several non-branch leased facilities to reduce expenses.
Looking ahead, First National Corporation remains optimistic about its growth prospects, supported by a strong balance sheet and strategic market expansions. The management is focused on enhancing profitability while maintaining robust capital and liquidity positions.