First National Corp ( (FXNC) ) has released its Q1 earnings. Here is a breakdown of the information First National Corp presented to its investors.
First National Corporation, a bank holding company for First Bank, operates in the community banking sector, offering a range of financial services including loans, deposits, and wealth management across Virginia and northern North Carolina.
In the first quarter of 2025, First National Corporation reported earnings of $1.52 million, or $0.18 per share, with adjusted earnings of $3.1 million, or $0.35 per share, reflecting the impact of its recent acquisition of Touchstone Bankshares, Inc.
Key highlights from the quarter include a significant increase in total assets to $2.033 billion, up 40.5% from the previous year, and a rise in total deposits to $1.825 billion, up 44.9%. The company’s net interest margin improved to 3.77%, and non-performing assets decreased to 0.24% of total assets, showcasing improved asset quality. However, net interest income saw a decline due to amortization impacts, and non-interest income also decreased, primarily due to the absence of a one-time gain from the previous quarter.
Despite the challenges of merger-related expenses, First National successfully completed its operational merger with Touchstone, which is expected to drive future growth and efficiency. The company is optimistic about leveraging the expanded market presence and returning to its efficient banking model.
Looking forward, First National’s management anticipates continued growth and improved operational efficiency as it integrates the Touchstone acquisition and capitalizes on new market opportunities.