Exhibit 99.1 FIRST NATIONAL CORPORATION REPORTS RECORD SECOND QUARTER 2025 EARNINGS STRASBURG, Va., July 30, 2025 --- First National Corporation (the "Company" or "First National") (NASDAQ: FXNC), the bank holding company of First Bank (the "Bank"), reported earnings for the quarter ended June 30, 2025 of $5.05 million and basic and diluted earnings per common share of $0.56. Excluding acquisition-related items, adjusted earnings(1) (non-GAAP) for the second quarter of 2025 were $5.1 million and adjusted ba ...

Core Insights - First National Corporation has appointed Chris Layne as Senior Vice President, Regional Market Executive for Richmond, responsible for business banking and development in the area [1][3][4] Company Overview - First National Corporation (NASDAQ: FXNC) is the parent company of First Bank, a community bank established in 1907, offering various loan and deposit products through multiple channels including a website, mobile banking, and 33 branch locations [7] Leadership and Experience - Chris Layne brings over 20 years of experience in commercial banking and operational transformation, with a strong background in the Richmond market [3][4] - He holds a Bachelor of Arts in Business Administration and an MBA, and is a graduate of the ABA Stonier Graduate School of Banking [3] Community Engagement - Chris Layne is a veteran of the United States Air Force and is actively involved in community service, holding positions on various boards and organizations [5] - He co-founded TEAM KRL, a nonprofit aimed at mentoring youth from low-to-moderate income backgrounds [5] Strategic Focus - Chris Layne aims to enhance customer relationships and deliver high-quality service, focusing on the unique needs of businesses and individuals in the Richmond market [6]

Financial Performance - Net income decreased to $1,598 thousand for the three months ended March 31, 2025, down 50.24% from $3,209 thousand in the prior year[12]. - Earnings per common share for the three months ended March 31, 2025, was $0.18, a decline of 64.71% from $0.51 in the prior year[12]. - The company reported a total comprehensive income of $3,227 thousand for the three months ended March 31, 2025, compared to $2,398 thousand in the same period of 2024, an increase of 34.63%[13]. - The net cash provided by operating activities was $3,527 thousand for the three months ended March 31, 2025, down from $4,703 thousand in the same period of 2024, a decrease of 24.93%[14]. - Net income for the three months ended March 31, 2025, was $1,598 million, down from $3,209 million for the same period in 2024, resulting in basic and diluted earnings per share of $0.18[73]. - Net income for the three months ended March 31, 2025, decreased by $1.6 million to $1.6 million, or $0.18 per diluted share, compared to $3.2 million, or $0.51 per diluted share, for the same period in 2024[143]. Asset and Deposit Growth - Total assets increased to $2,033,347 thousand as of March 31, 2025, up from $2,010,281 thousand at December 31, 2024, representing a growth of 1.14%[9]. - Total deposits rose to $1,824,976 thousand as of March 31, 2025, compared to $1,803,778 thousand at December 31, 2024, marking an increase of 1.17%[9]. - Cash and cash equivalents increased to $206,032 thousand as of March 31, 2025, compared to $162,874 thousand at the end of 2024, reflecting a rise of 26.00%[15]. - As of March 31, 2025, total shareholders' equity increased to $168,676,000 from $166,531,000 as of December 31, 2024, reflecting a growth of approximately 1%[16]. - The total recorded investment in loans was $665,682,000, with $661,025,000 classified as pass loans[54]. Loan and Credit Quality - Total loans decreased to $1.450 billion as of March 31, 2025, from $1.467 billion on December 31, 2024, representing a decline of 1.1%[42]. - The allowance for credit losses on loans decreased from $16.4 million on December 31, 2024, to $14.735 million on March 31, 2025, a decrease of 10.1%[42]. - The total past due loans as of March 31, 2025, amounted to $7.678 million, compared to $3.451 million on December 31, 2024, indicating an increase in past due loans[46]. - The provision for credit losses on loans for the period ending March 31, 2025, was a recovery of $735, indicating improved credit quality[59]. - Nonaccrual loans totaled $4,864 million as of March 31, 2025, compared to $6,971 million at December 31, 2024, indicating a decrease in nonaccrual loans[61]. Noninterest Income and Expenses - Noninterest income for the three months ended March 31, 2025, was $3,275,000, compared to $2,540,000 for the same period in 2024, representing an increase of approximately 28.9%[101]. - Noninterest expenses increased by $8.4 million, primarily due to a $2.8 million increase in salaries and employee benefits and a $1.9 million increase in merger expenses[134]. - Noninterest income decreased by $436 thousand primarily due to a reduction in other operating income related to a loan recovery recognized in 2024[133]. - The efficiency ratio rose to 75.44% in Q1 2025 from 65.65% in Q1 2024, reflecting an increase in noninterest expenses[142]. Merger and Acquisition Impact - The company incurred merger costs totaling $1.9 million related to the acquisition of Touchstone Bankshares, Inc. on October 1, 2024[21]. - The Company completed the acquisition of Touchstone on October 1, 2024, resulting in the issuance of 2.7 million additional shares valued at $46.8 million[109]. - The merger with Touchstone added 12 branches, expanding the Company's presence in central Virginia and into northern North Carolina[109]. - The Company recognized a preliminary bargain purchase gain of $2.9 million from the Touchstone acquisition[109]. Capital Adequacy - The Bank's total capital to risk-weighted assets ratio was 12.44% as of March 31, 2025, exceeding the minimum requirement of 8.00%[180]. - The Tier 1 capital to risk-weighted assets ratio was 11.39% as of March 31, 2025, above the minimum requirement of 6.00%[180]. - The common equity Tier 1 capital to risk-weighted assets ratio was 11.39% as of March 31, 2025, surpassing the minimum requirement of 4.50%[180]. - The Bank maintained a capital conservation buffer ratio of 4.44% as of March 31, 2025, indicating strong capital adequacy[180]. Securities and Fair Value - As of March 31, 2025, total securities amounted to $259,921 thousand, with gross unrealized losses of $29,536 thousand[26]. - The total unrealized losses for securities available for sale were $20,097 thousand as of March 31, 2025, compared to $22,132 thousand at December 31, 2024[28]. - The fair value of U.S. Treasury securities available for sale was $11,840 thousand, reflecting a gross unrealized loss of $646 thousand[26]. - The fair value of cash flow hedges decreased from $2,690,000 as of December 31, 2024, to $2,474,000 as of March 31, 2025[80].

Financial Performance - First National Corporation reported earnings of $1.52 million for Q1 2025, with adjusted earnings of $3.1 million, resulting in adjusted earnings per share of $0.35[1][4] - The company reported net income of $1,598,000 for the quarter, compared to a net loss of $933,000 in Q4 2024, marking a turnaround in profitability[30] - Basic earnings per common share for Q1 2025 was $0.18, compared to a loss of $0.10 in Q4 2024[31] - Adjusted earnings per common share for Q1 2025 was $0.35, down from $0.66 in Q4 2024[31] - Adjusted operating net income (non-GAAP) for Q1 2025 was $3,157,000, a decrease from $5,955,000 in Q4 2024[33] Asset and Deposit Growth - Total assets reached $2.033 billion, a 40.5% increase from the previous year, while total deposits increased to $1.825 billion, up 44.9% year-over-year[6][13] - Total assets as of March 31, 2025, were $2,033,346,000, an increase from $2,010,281,000 at the end of the previous quarter, representing a growth of 1.16%[35] - Total deposits rose to $1,824,976 thousand, compared to $1,803,778 thousand, reflecting an increase of 1.2%[32] - Noninterest-bearing demand deposits increased to $540,387 thousand, up from $520,153 thousand, a growth of 3.0%[32] Interest Income and Expenses - Net interest income for Q1 2025 was $17.5 million, a decrease of $908 thousand from the previous quarter, attributed to amortization on early payoffs of Touchstone loans[5] - Total interest and dividend income was $24,022,000, a decrease from $25,486,000 in the previous quarter[30] - Interest expense decreased to $6,571,000 from $7,127,000 in the previous quarter, reflecting lower borrowing costs[30] - Interest expense on deposits was $6,038,000 for the three months ended March 31, 2025, compared to $6,415,000 in the previous quarter, a decrease of 5.87%[35] Non-Interest Income and Expenses - Non-interest income decreased to $3.6 million in Q1 2025, down from $6.4 million in the prior quarter, primarily due to a one-time bargain purchase gain in Q4 2024[7] - Total noninterest income for the quarter was $3,611,000, down from $6,444,000 in the previous quarter, indicating a decline in service-related revenues[30] - Total noninterest expense was $18,335,000, a decrease from $21,929,000 in the previous quarter, showing cost management efforts[30] Credit Quality and Allowance for Credit Losses - The allowance for credit losses on loans was $14.7 million, or 1.02% of total loans, with a provision for credit losses of $832 thousand in Q1 2025[21] - Nonperforming assets as a percentage of total assets decreased to 0.24% in Q1 2025, compared to 0.35% in Q4 2024[17][18] - Provision for credit losses was $832,000, significantly lower than $4,750,000 in the previous quarter, indicating improved credit quality[30] - Nonperforming assets as of Q1 2025 totaled $4,864,000, down from $7,024,000 in Q4 2024[31] Capital and Efficiency Ratios - Total capital as of Q1 2025 was $182,563,000, up from $181,449,000 in Q4 2024[31] - Tier 1 capital to risk-weighted assets ratio for Q1 2025 was 11.39%, compared to 11.19% in Q4 2024[31] - The efficiency ratio improved to 52.0% from 61.0% in the previous quarter, demonstrating enhanced operational efficiency[30] - The efficiency ratio (non-GAAP) for Q1 2025 was 75.44%, compared to 63.97% in Q4 2024[34] Future Outlook - The company plans to continue focusing on cost management and improving operational efficiency in future quarters[28]

Core Viewpoint - First National Corporation reported earnings for Q1 2025, showing a net income of $1.52 million and adjusted earnings of $3.1 million, reflecting the impact of the Touchstone acquisition and merger-related expenses [1][4][8]. Financial Performance - The company achieved net interest income of $17.5 million for Q1 2025, a decrease of $908 thousand from the previous quarter, attributed to amortization on early payoffs of Touchstone loans [5][10]. - Non-interest income decreased to $3.6 million in Q1 2025 from $6.4 million in the prior quarter, primarily due to a one-time bargain purchase gain in Q4 2024 [7]. - Non-interest expenses decreased to $18.3 million in Q1 2025 from $21.9 million in the prior quarter, driven by a reduction in merger-related expenses [8][9]. Balance Sheet Highlights - Total assets reached $2.033 billion, up 40.5% from the previous year, primarily due to the Touchstone acquisition [6][10]. - Net loans held for investment increased to $1.436 billion, a 49.5% increase year-over-year [6][11]. - Total deposits rose to $1.825 billion, reflecting a 44.9% increase from the previous year, with non-interest bearing deposits comprising 30% of total deposits [6][13]. Asset Quality - Nonperforming assets as a percentage of total assets decreased to 0.24% as of March 31, 2025, down from 0.55% a year prior [17][18]. - The allowance for credit losses to nonperforming assets improved to 302.94% [17][21]. Capital Ratios - The total capital ratio stood at 12.44% as of March 31, 2025, compared to 14.45% a year earlier [24][35]. - The tangible book value per share increased to $16.81 from $16.55 in the previous quarter [24][32].

Company Overview - First National Corp. (FXNC) shares increased by 5.4% to $20.21 in the last trading session, following a period of 12.6% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The company is expected to report quarterly earnings of $0.53 per share, reflecting a year-over-year increase of 3.9%, with revenues projected at $21.5 million, up 44.3% from the same quarter last year [3] Market Influence - The recent rally in First National Corp shares was driven by broad market strength, particularly after President Donald Trump's announcement of a 90-day suspension on tariffs for non-retaliating countries, which eased trade tensions and improved market sentiment [2] - The consensus EPS estimate for First National has remained unchanged over the last 30 days, suggesting that the stock's price movement may not sustain without trends in earnings estimate revisions [4] Industry Context - First National belongs to the Zacks Banks - Southeast industry, where another company, Hilltop Holdings (HTH), saw a 3.4% increase in its stock price, closing at $29.18, despite a 6.5% decline over the past month [4] - Hilltop Holdings has a consensus EPS estimate of $0.28 for its upcoming report, which represents a significant decline of 33.3% compared to the previous year, and currently holds a Zacks Rank of 2 (Buy) [5]

Acquisition - The Company completed the acquisition of Touchstone Bankshares, Inc. on October 1, 2024[183]. - The decrease in net income was attributed to an $8.1 million increase in merger expenses related to the Touchstone acquisition[185]. - Noninterest income rose to $16.4 million, a 39% increase from $11.8 million in the previous year, driven by a $2.9 million bargain purchase gain related to the Touchstone acquisition[204]. - Total liabilities increased by $540.7 million to $1.8 billion, largely due to the acquisition of Touchstone, which added $614.6 million in liabilities[210]. - Total loans increased by $497.6 million to $1.5 billion at December 31, 2024, compared to $969.4 million at December 31, 2023, primarily due to the Touchstone acquisition[216]. Financial Performance - Net income available to common shareholders decreased to $7.0 million, or $1.00 per diluted share, compared to $9.6 million, or $1.53 per diluted share in 2023[183][184]. - Return on average equity was 5.33% for 2024, down from 8.59% in 2023[183][184]. - Net income decreased to $6.966 million in 2024 from $9.624 million in 2023, reflecting a decline in income before taxes[187]. - Noninterest expense increased by $15.7 million, or 42%, primarily due to merger expenses of $8.1 million and core deposit intangible amortization of $443 thousand[205]. Loans and Deposits - Period end loans, net, grew by $493.1 million in 2024 compared to 2023[183]. - Period end deposits increased by $570.1 million in 2024 compared to 2023[183]. - Total deposits grew by $570.1 million, including $555.4 million in deposits acquired from Touchstone, with noninterest-bearing demand deposits increasing by $140.9 million[210]. - Total loans increased to $1.466 billion at December 31, 2024, from $969.4 million at December 31, 2023[234]. Credit Losses - The provision for credit losses on loans totaled $7.9 million in 2024, up from $6.2 million in 2023[183]. - Provision for credit losses increased to $7.850 million in 2024 from $6.150 million in 2023, indicating a rise in expected credit losses[187]. - The total allowance for credit losses on loans increased by $4.4 million, driven by loan growth and net charge-offs of $3.8 million[201]. - The allowance for credit losses on loans totaled $16.4 million at December 31, 2024, up from $12.0 million at December 31, 2023, representing 1.12% and 1.24% of total loans, respectively[223]. Asset Growth - Total assets grew to $2,010.3 million in 2024, up from $1,419.3 million in 2023, primarily due to the acquisition of Touchstone[187]. - Total assets increased by $591 million to $2.0 billion as of December 31, 2024, primarily due to a $493.1 million increase in loans and a $68 million increase in interest-bearing deposits[209]. Income and Efficiency - Net interest income increased by $9.0 million, or 21%, and noninterest income rose by $4.6 million, or 39%[185]. - The efficiency ratio improved to 66.73% in 2024 from 67.69% in 2023, indicating enhanced operational efficiency[189]. - Net interest margin increased by ten basis points to 3.51% for 2024, compared to 3.41% in 2023[183]. Capital and Liquidity - Shareholders' equity increased to $166.5 million in 2024 from $116.3 million in 2023, reflecting strong capital growth[187]. - The Bank's total risk-based capital was $181.4 million at December 31, 2024, up from $142.3 million in 2023, indicating a growth of 27.5%[263]. - The common equity Tier 1 capital ratio decreased to 11.19% in 2024 from 12.82% in 2023[263]. - The estimated amount of total uninsured deposits was $537.0 million as of December 31, 2024[245]. - As of December 31, 2024, the Bank's liquidity sources totaled $758.0 million, an increase from $512.7 million on December 31, 2023[247].

Core Viewpoint - First National Corporation announces the appointment of Brad E. Schwartz as Executive Vice President and Chief Financial Officer, effective March 31, 2025, highlighting the importance of experienced leadership during a critical time for the company [1][3]. Company Overview - First National Corporation is the bank holding company for First Bank, which has been operational since 1907 in Strasburg, Virginia. The bank provides a range of loan and deposit products and services through various channels, including a mobile banking platform and thirty-three branch locations across Virginia and northern North Carolina [5]. Leadership Experience - Brad E. Schwartz brings over 40 years of banking experience in Virginia, having previously served as President and COO of TowneBank and held multiple executive roles at Monarch Bank. His extensive background includes being CFO of two other community banks [2][4]. Strategic Importance - The company has completed three acquisitions in the last decade, necessitating strong leadership to navigate the evolving landscape of community banking. Schwartz's expertise in mergers and acquisitions, along with his financial acumen, is seen as a valuable asset for the executive team [3]. Educational Background - Schwartz holds a B.S. in Business Administration and Accounting from Longwood University, an MBA from the University of Richmond, and is a graduate of the Stonier Graduate School of Banking at Georgetown University. He is also involved in community banking education as a professor at the VBA University of Virginia School of Bank Management [4].

Financial Performance - First National Corporation reported a net loss of $933 thousand for Q4 2024, with adjusted operating earnings of $6.0 million, resulting in adjusted earnings per share of $0.66[1][2] - The company reported a net loss of $933,000 for the three months ended December 31, 2024, compared to a net income of $2,248,000 for the same period in 2023[33] - The net income for the year ended December 31, 2024, was $6,966,000, down from $9,624,000 in 2023, reflecting a decrease of 27.5%[33] - Adjusted operating net income (non-GAAP) for Q4 2024 was $5,955 thousand, up from $2,448 thousand in Q3 2024 and down from $(851) thousand in Q4 2023[36] Asset and Deposit Growth - Total assets reached $2.0 billion as of December 31, 2024, reflecting a 38.6% increase from the previous quarter[18] - Total deposits increased to $1.80 billion, a rise of $550.5 million from the prior quarter, attributed to the addition of Touchstone's deposits[21] - Total assets increased to $2,010,281 thousand as of December 31, 2024, up from $1,450,716 thousand in the previous quarter, representing a growth of 38.5%[35] - Total deposits reached $1,803,778 thousand, a significant increase from $1,253,255 thousand in the previous quarter, reflecting a growth of 43.8%[35] Interest Income and Margin - Net interest income for Q4 2024 increased to $18.4 million, up $6.6 million from the previous quarter, driven by a $545.3 million increase in average interest-earning assets[7] - The net interest margin improved by 40 basis points to 3.83% in Q4 2024, with earning asset yields rising to 5.30%[7][8] - For the three months ended December 31, 2024, interest income from loans was $21,516,000, compared to $14,479,000 for the previous quarter, representing a 48.5% increase[38] - Net interest income for the year ended December 31, 2024, was $52,452,000, up from $43,413,000 in 2023, reflecting a 20.5% year-over-year growth[38] Noninterest Income and Expense - Noninterest income rose to $6.4 million in Q4 2024, primarily due to a $2.9 million pre-tax bargain purchase gain from the Touchstone acquisition[10] - Noninterest expense increased to $21.9 million in Q4 2024, largely due to $7.3 million in merger-related costs associated with the Touchstone acquisition[11] - Total noninterest income for Q4 2024 was $6,444 thousand, an increase from $3,203 thousand in Q3 2024 and $3,069 thousand in Q4 2023[36] - Total noninterest expense for the year ended December 31, 2024, was $52,934,000, compared to $37,242,000 in 2023, which is a 42.2% increase[33] Credit Quality - The allowance for credit losses on loans totaled $16.4 million, or 1.12% of total loans, as of December 31, 2024[13][16] - Provision for credit losses for the three months ended December 31, 2024, was $4,750,000, compared to $5,950,000 for the same period in 2023, indicating a decrease of 20.2%[33] - The allowance for credit losses increased to $16,400 thousand from $12,704 thousand in the previous quarter, reflecting a rise of 29.0%[35] Shareholder Equity - Shareholders' equity increased to $166.5 million, up $41.4 million from the previous quarter, primarily due to the issuance of 2.67 million shares related to the Touchstone acquisition[23] - Total shareholders' equity rose to $166,531 thousand, up from $125,115 thousand in the previous quarter, representing a growth of 33.1%[35] Merger and Acquisition Impact - The acquisition of Touchstone Bankshares on October 1, 2024, added $664.3 million in total assets and $479.3 million in loans held for investment[4][24] - The merger with Touchstone is expected to create cost savings and revenue synergies, although there are risks associated with integration and market conditions[31] Market Presence and Future Outlook - The company operates 33 bank branch locations across Virginia and northern North Carolina, enhancing its market presence[29] - Forward-looking statements indicate potential risks and uncertainties that could affect future performance, including economic conditions and competitive factors[30]

Core Viewpoint - First National Corp. reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and showing a significant improvement from a loss of $0.14 per share a year ago, indicating a strong earnings surprise of 40.43% [1][2] Financial Performance - The company achieved revenues of $24.8 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 15.36%, compared to revenues of $13.88 million in the same quarter last year [2] - Over the last four quarters, First National has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - First National shares have increased approximately 9.7% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $21.2 million, and for the current fiscal year, it is $2.25 on revenues of $87.3 million [7] Industry Outlook - The Banks - Southeast industry, to which First National belongs, is currently ranked in the top 8% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]