Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-38874 _______________________________________________________ (Exact name of registrant as specified in its charter) ___________ ...

Company Overview - First National Corp. (FXNC) is based in Strasburg and operates in the Finance sector, with a year-to-date share price change of 4.4% [3] - The company currently pays a dividend of $0.17 per share, resulting in a dividend yield of 2.58%, which is higher than the Banks - Southeast industry's yield of 2.14% and the S&P 500's yield of 1.46% [3] Dividend Performance - The annualized dividend of $0.68 represents a 7.1% increase from the previous year [4] - Over the past five years, FXNC has increased its dividend four times, achieving an average annual increase of 7.70% [4] - The current payout ratio is 32%, indicating that the company pays out 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - FXNC is projected to experience earnings growth this fiscal year, with the Zacks Consensus Estimate for 2026 at $2.30 per share, reflecting a year-over-year growth rate of 8.49% [5] - The company is considered a strong dividend play, especially in the context of rising interest rates, where high-yielding stocks may face challenges [6] - FXNC holds a Zacks Rank of 3 (Hold), indicating a stable investment opportunity [6]

Company Overview - First National Corp. (FXNC) is located in Strasburg and operates within the Finance sector [3] - The stock has experienced a price change of 5.51% since the beginning of the year [3] Dividend Information - The company currently pays a dividend of $0.17 per share, resulting in a dividend yield of 2.55% [3] - This yield is higher than the Banks - Southeast industry's yield of 2.03% and the S&P 500's yield of 1.37% [3] - The annualized dividend of $0.68 represents a 7.1% increase from the previous year [4] - Over the past five years, FXNC has increased its dividend four times, averaging an annual increase of 7.70% [4] - The current payout ratio is 32%, indicating that 32% of its trailing 12-month earnings per share (EPS) is distributed as dividends [4] Earnings Growth - The Zacks Consensus Estimate for FXNC's earnings in 2026 is projected at $2.30 per share, reflecting a year-over-year growth rate of 8.49% [5] Investment Considerations - FXNC is considered a strong dividend investment opportunity, particularly appealing to income investors [6] - The stock holds a Zacks Rank of 3 (Hold), suggesting a stable investment outlook [6]

Core Insights - Wingstop reported fourth-quarter system-wide sales of $1.3 billion, a 9.3% increase compared to 2024, primarily due to the addition of 124 net new restaurants, although domestic same-store sales declined by 5.8% due to macroeconomic pressures [1][3] - The company ended 2025 with over 3,000 restaurants and system-wide sales exceeding $5 billion, despite a 3% decline in same-store sales [2][6] - Management emphasized the potential for scaling its franchised model and the successful rollout of the Smart Kitchen platform, which aims to enhance operational efficiency [3][8] Financial Performance - Adjusted EBITDA rose approximately 10% in Q4 to $61.9 million, while adjusted earnings per diluted share increased by 5% to $1.00, despite a $0.18 impact from higher interest expenses related to a $500 million securitization [6][7] - The company returned over $250 million to shareholders in 2025 through dividends and share repurchases, with a quarterly dividend of $0.30 per share declared for March 2026 [4][18] Growth and Expansion - Wingstop plans to launch a national loyalty program, "Club Wingstop," in Q2 2026, following a successful pilot that saw a 7% increase in frequency among enrolled guests [4][16] - The company aims for global unit growth of 15-16% in 2026, with guidance for domestic same-store sales to be flat to low single-digit growth [4][19] Operational Improvements - The Smart Kitchen rollout is complete, with management reporting that about 50% of restaurants are achieving 10-minute service times, and delivery times have improved by approximately 15% year-over-year [5][11] - The company is focusing on execution in 2026, implementing new operating standards and accountability measures to enhance performance [9][10] Marketing and Customer Engagement - Wingstop's new brand campaign, "Wingstop Is Here," aims to increase brand awareness and has shown early success with record high brand recall [13] - The digital customer base grew by 20% in 2025, with significant growth noted among higher-income households [14]

Core Viewpoint - First National Corporation plans to sell two banking offices and consolidate three others to streamline operations and enhance customer service [1][2]. Group 1: Strategic Actions - The company will sell two standalone banking offices in North Carolina located in Roanoke Rapids and Louisburg, and consolidate three offices in Virginia into nearby branches, reducing the total number of banking offices from 33 to 28 [2]. - The transactions are expected to close in the second half of 2026, pending regulatory approvals and other necessary preparations [2]. Group 2: Employment Impact - There will be no layoffs as a result of these changes; affected employees will be offered positions with the buyer or within the Bank's network [3]. Group 3: Management Perspective - The CEO emphasized the commitment to operate efficiently while maintaining a personal touch and local focus, allowing for better investment in technology and community initiatives [4]. Group 4: Financial Implications - The Bank anticipates a one-time gain from the sale of the two North Carolina offices, which will be partially offset by costs related to the consolidation of the three offices [5].

Company Overview - First National Corp. (FXNC) is located in Strasburg and operates within the Finance sector [3] - The stock has experienced a price increase of 13.31% since the beginning of the year [3] Dividend Information - The company currently pays a dividend of $0.17 per share, resulting in a dividend yield of 2.38%, which is higher than the Banks - Southeast industry's yield of 2.12% and the S&P 500's yield of 1.34% [3] - The annualized dividend of $0.68 represents a 7.1% increase from the previous year [4] - Over the past five years, First National Corp. has raised its dividend four times, achieving an average annual increase of 7.70% [4] - The current payout ratio is 32%, indicating that the company distributes 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for earnings per share in 2026 is projected at $2.30, reflecting a year-over-year earnings growth rate of 8.49% [5] Investment Considerations - First National Corp. is considered a strong dividend investment opportunity, particularly appealing to income investors [6] - The stock holds a Zacks Rank of 3 (Hold), suggesting a stable investment outlook [6]

Core Insights - Simmons First National is enhancing its executive leadership team under new CEO Jay Brogdon to strengthen its deposit network and customer relationships [1][2] - The bank is shifting its strategy from growth through acquisitions to focusing on organic growth by hiring top bankers and diversifying its loan portfolio [3][4] Leadership Changes - The bank has appointed new leaders for its consumer and wealth management division and commercial banking, along with an eight-member private banking team [2][7] - Brian Jackson has been hired as president of consumer and wealth management, while Jonathan Schneider will serve as president of commercial banking [6][7] Strategic Shift - Historically, Simmons has relied on acquisitions for growth, having acquired 14 banks in under a decade, but is now prioritizing organic growth [3][4] - The bank aims to expand its offerings beyond commercial real estate lending, which constitutes over 75% of its loan portfolio, to include treasury management and operating accounts [5] Market Context - The competitive environment for banks has intensified due to rising interest rates and recent bank failures, leading to increased competition for stable deposits [11] - Despite a growth strategy focused on acquisitions, Simmons has underperformed compared to peers, with its stock price down nearly 11% over the past year [13] Future Outlook - The bank's strategy to enhance its private banking unit and diversify its loan portfolio aligns with broader industry trends as banks seek to address economic challenges [10] - CEO Brogdon indicated that savings from the Better Bank initiative are funding investments in talent, which are expected to yield results in organic growth [14]

Financial Performance - Consolidated net income for Q4 2025 was $5.5 million, with basic and diluted earnings per share of $0.61[1] - For the year ended December 31, 2025, consolidated earnings were $17.7 million, with basic and diluted earnings per share of $1.97 and $1.96, respectively[1] - Net income for the year ended December 31, 2025, was $17,703 thousand, a significant increase from $6,966 thousand in 2024[30] - Basic earnings per share (GAAP) for the year ended December 31, 2025, was $1.97, an increase from $1.00 in 2024, representing a 97% increase[35] - Adjusted earnings per common share for the year ended December 31, 2025, increased to $2.13 from $2.10 in 2024[31] Asset and Loan Growth - Total assets increased to $2.039 billion, a 0.4% increase from September 30, 2025[14] - Loan growth for Q4 2025 was $16.3 million, representing a 4.6% annualized growth rate[5] - Average assets for the year ended December 31, 2025, were $2,061.973 million, compared to $2,022.958 million in Q3 2025 and $2,051.578 million in 2024[31] - Total loans portfolio stood at $1,449,745 thousand, a slight increase from $1,433,197 thousand in the previous quarter[32] Non-Performing Assets and Credit Losses - Non-performing assets (NPAs) as a percentage of total loans improved to 0.32% on December 31, 2025, down from 0.40% on September 30, 2025[20] - The allowance for credit losses on loans totaled $14.7 million, or 1.02% of total loans on December 31, 2025[8] - The company reported a provision for credit losses of $951 thousand in Q4 2025, compared to $193 thousand in Q3 2025, indicating increased caution in credit risk management[30] - Loan charge-offs for the year ended December 31, 2025, totaled $4.805 million, compared to $4.033 million in 2024[31] Income and Expense Analysis - Total noninterest income for the year ended December 31, 2025, was $17,018 thousand, compared to $16,380 thousand in 2024, reflecting a growth of 3.9%[30] - Noninterest expense for the year ended December 31, 2025, was $65,433 thousand, compared to $52,934 thousand in 2024, indicating an increase of 23.6%[30] - Adjusted operating noninterest expense for Q4 2025 was $15,556,000, slightly up from $15,340,000 in Q3 2025 but significantly lower than $21,929,000 in Q4 2024[36] Capital Ratios and Dividends - Total risk-based capital ratio for First National Corporation decreased to 14.53% as of December 31, 2025, from 15.15% in the previous quarter[23] - Tier 1 risk-based capital ratio increased to 12.93% as of December 31, 2025, compared to 12.83% in the prior quarter[23] - The Company declared a cash dividend of $0.17 per common share in Q4 2025, up from $0.155 in Q3 2025[22] - Tangible book value per share grew to $18.83 at December 31, 2025, from $18.26 at September 30, 2025[22] Interest Income and Efficiency - Net interest margin (FTE) for Q4 2025 was 3.95%, up from 3.84% in Q3 2025 and 3.83% in Q4 2024[4] - Net interest income after provision for credit losses was $18,001 thousand for Q4 2025, up from $18,102 thousand in Q3 2025[30] - The interest rate spread improved to 3.37% for the quarter ended December 31, 2025, compared to 3.21% in the previous quarter[33] - The efficiency ratio (non-GAAP) improved to 64.66% in Q4 2025 from 67.97% in Q3 2025, indicating better cost management[36]

Core Insights - First National Corporation reported a record financial performance for the fourth quarter and the year 2025, with consolidated net income of $5.5 million and earnings per share of $0.61 for Q4 2025, and $17.7 million with earnings per share of $1.97 for the full year [1][2] Financial Performance - The net interest margin for Q4 2025 was 3.95%, an increase from 3.84% in Q3 2025 and 3.83% in Q4 2024 [4][6] - Net interest income for Q4 2025 was $19.0 million, up from $18.3 million in Q3 2025, driven by a slight increase in net accretion income and a decrease in interest expense on average interest-bearing liabilities [4][7] - Non-interest income increased by $518 thousand to $5.0 million in Q4 2025, primarily due to a recovery from an acquired loan [10][11] Asset Quality - Non-performing assets (NPAs) as a percentage of total loans improved to 0.32% on December 31, 2025, down from 0.40% on September 30, 2025, and 0.48% on December 31, 2024 [21][22] - The allowance for credit losses on loans totaled $14.7 million, or 1.02% of total loans, reflecting an increase from the previous quarter [9][34] Capital and Dividends - The Company declared a quarterly dividend of $0.17 per common share, a 9.7% increase from the previous quarter [2][23] - Tangible book value per share grew to $18.83 at December 31, 2025, from $18.26 at September 30, 2025 [23][33] Balance Sheet - Total assets were $2.039 billion as of December 31, 2025, reflecting a 0.4% increase from the previous quarter and a 1.4% increase from the previous year [15][16] - Total loans held for investment increased by $16.3 million to $1.435 billion from the previous quarter [16][18] Liquidity - Liquidity sources available to the Bank totaled $743.0 million on December 31, 2025, an increase from $676.1 million on September 30, 2025 [19][20]

Core Insights - DriveItAway Holdings, Inc. is expanding its service footprint to nine major U.S. cities as part of a joint mobility program with Free2move, enhancing accessibility to flexible lease-to-own automotive solutions [1][2] - The expansion aims to make mobility accessible to individuals who cannot meet traditional financing requirements, with a focus on no down payment, no minimum credit score, and no long-term lease commitments [2] - The partnership with Free2move is expected to facilitate a national rollout, leveraging a dealer network to bridge the gap in accessible mobility [2][7] Expansion Details - The new markets for DriveItAway's flexible lease/subscription service include Miami, Fort Lauderdale, Orlando, Tampa, Key West, Minneapolis/St. Paul, Denver, St. Louis, and Los Angeles [6] - The company plans to continue expanding into additional U.S. cities in 2026, driven by dealer participation and regional demand [4] Strategic Partnerships - The collaboration with Free2move integrates flexible lease-to-own technology with aligned supply, enabling a national rollout through franchise dealerships [7] - Free2move, a subsidiary of Stellantis, provides the necessary industrial scale and expertise to support DriveItAway's accelerated growth [1][7] Leadership and Advisory Board - DriveItAway has strengthened its Board of Advisors by adding members with extensive experience in retail, rental, and capital markets, which will support the company's growth and operational discipline [7] Market Positioning - DriveItAway is positioned as a national dealer-focused mobility platform, enabling franchise dealers to sell more vehicles through an exclusive lease-to-own, app-based subscription model [5]