First National Corporation Reports Record Q2 2025 Earnings

First National Corp ( (FXNC) ) has released its Q2 earnings. Here is a breakdown of the information First National Corp presented to its investors.

First National Corporation, a bank holding company based in Strasburg, Virginia, operates First Bank, which offers a range of financial services including traditional banking and wealth management across Virginia and northern North Carolina.

First National Corporation reported record earnings for the second quarter of 2025, driven by the successful integration of the Touchstone franchise acquisition. The company achieved a net income of $5.05 million, with earnings per share increasing significantly compared to the previous quarter and year.

Key financial highlights include a 211% increase in earnings per share from the previous period and a 44% increase from a year prior. The return on average assets improved to 1.00%, while the return on average equity rose to 11.85%. The net interest margin increased to 3.95%, reflecting the benefits of acquisition-related adjustments. Additionally, noninterest income saw a boost due to higher ATM and check card income, and noninterest expenses decreased significantly due to reduced merger-related costs and other operational efficiencies.

The company’s balance sheet showed growth in total assets and deposits, largely attributed to the Touchstone acquisition. Despite a slight decrease in total deposits from the previous quarter, there was a notable year-over-year increase. The company also maintained strong liquidity and capital ratios, indicating a robust financial position.

Looking ahead, First National Corporation is optimistic about its continued growth and financial performance, leveraging its recent acquisition and operational efficiencies to enhance shareholder value.