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]

Core Insights - First National Corporation reported a net loss of $933 thousand for Q4 2024, with a basic and diluted loss per share of $0.10, while adjusted operating earnings were $6.0 million, translating to adjusted earnings per share of $0.66 [1][2][34] - The year 2024 was marked by a significant acquisition of Touchstone Bankshares, which is expected to enhance operational performance and financial metrics [3][4] Financial Performance - For the year ended December 31, 2024, the company reported consolidated earnings of $7.0 million, with basic and diluted earnings per share of $1.00, and adjusted operating earnings of $14.6 million, leading to adjusted earnings per share of $2.10 [2][34] - Net interest income for Q4 2024 was $18.4 million, an increase of $6.6 million from the previous quarter, primarily due to a $545.3 million rise in average interest-earning assets [7][34] - Noninterest income rose to $6.4 million in Q4 2024, up from $3.2 million in the prior quarter, driven by a $2.9 million pre-tax bargain purchase gain from the acquisition [10][34] Acquisition Impact - The acquisition of Touchstone Bankshares on October 1, 2024, added $664.3 million in total assets and $614.6 million in total liabilities to First National's balance sheet [4][23] - The merger resulted in a preliminary bargain purchase gain of $2.9 million and increased the company's total assets to $2.0 billion, reflecting a 38.6% increase from the previous quarter [4][19][25] Asset Quality - As of December 31, 2024, loans past due greater than 30 days were 0.24% of total loans, unchanged from the previous quarter, while nonperforming assets decreased to 0.35% of total assets [13][14] - The allowance for credit losses on loans totaled $16.4 million, or 1.12% of total loans, down from 1.28% in the prior quarter [13][17] Balance Sheet Highlights - Total deposits increased to $1.80 billion, a rise of $550.5 million from the prior quarter, primarily due to the addition of deposits from the Touchstone acquisition [22][34] - Shareholders' equity reached $166.5 million, an increase of $41.4 million from the previous quarter, largely due to the issuance of 2.67 million shares related to the acquisition [25][34] Capital Ratios - As of December 31, 2024, the total capital ratio was 12.35%, while the Tier 1 capital ratio stood at 11.19% [26][34] - The efficiency ratio improved to 63.97% in Q4 2024, reflecting operational efficiencies gained from the merger [8][34]

Core Viewpoint - First National Corporation (FXNC) has increased its quarterly cash dividend by 3.3% to 15.5 cents per share, marking a consistent dividend growth over the past 10 years [1] Dividend Information - The new dividend will be paid on December 13, 2024, to shareholders of record as of November 29, 2024 [1] - FXNC's current dividend yield stands at 2.6%, based on a closing price of $23.80 as of November 15 [2] Capital Distribution Activities - FXNC currently does not have an active share repurchase program, with the previous plan allowing for the buyback of up to $5 million worth of shares expiring on December 31, 2023 [3] - The company had a prior repurchase plan in December 2019, which also authorized $5 million and expired in December 2020 [3] Financial Position - As of September 30, 2024, FXNC reported cash and cash equivalents of $126.5 million, net loans of $982 million, and total deposits of $1.3 billion [4] - The common equity Tier-1 capital ratio was 13%, and the total capital ratio was 14.3%, both exceeding regulatory requirements [4] Outlook - Given its solid capital and liquidity positions, FXNC is expected to maintain its current capital distribution activities and enhance shareholder value [5] - Year-to-date, FXNC shares have increased by 9.4%, while the industry has seen a growth of 29% [6]

Core Points - First National Corporation declared a quarterly cash dividend of $0.155 per share, marking a 3% increase from the previous quarter [1] - This is the tenth consecutive year that the company has increased its dividend to shareholders [1] - The dividend is scheduled to be paid on December 13, 2024, to shareholders of record as of November 29, 2024 [1] Company Overview - First National Corporation (NASDAQ: FXNC) is the parent company of First Bank, a community bank established in 1907 in Strasburg, Virginia [3] - The bank provides a range of loan and deposit products and services through various channels, including its website, mobile banking platform, ATMs, loan production offices, and thirty-three branch locations [3] - In addition to traditional banking services, the bank operates a wealth management division and owns First Bank Financial Services, Inc., which provides title insurance services [3]

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - First National Corp. (FXNC) has shown a solid price increase of 33.9% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 19.5% in the last four weeks, suggesting that the upward trend is still intact [5]. - FXNC is currently trading at 94.7% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - FXNC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests using the "Recent Price Strength" screen to identify stocks like FXNC that are on an uptrend supported by strong fundamentals [3]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [8].

Exhibit 99.1 First National Corporation Reports Third Quarter 2024 Financial Results STRASBURG, Va., November 1, 2024 --- First National Corporation (the "Company" or "First National") (NASDAQ: FXNC), reported unaudited consolidated net income of $2.2 million and basic and diluted earnings per common share of $0.36 for the third quarter of 2024 and adjusted net income(1) of $2.4 million and adjusted basic and diluted earnings per common share(1) of $0.39. | --- | --- | --- | --- | --- | --- | --- | |------- ...

Group 1 - First National Corp. reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.49 per share, and down from $0.50 per share a year ago, representing an earnings surprise of -20.41% [1] - The company posted revenues of $14.95 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.83%, and up from $13.74 million year-over-year [2] - Over the last four quarters, First National has surpassed consensus revenue estimates four times and EPS estimates two times [2] Group 2 - The stock has underperformed, losing about 2.6% since the beginning of the year, compared to the S&P 500's gain of 19.6% [3] - The current consensus EPS estimate for the coming quarter is $0.49 on revenues of $14.5 million, and for the current fiscal year, it is $1.88 on revenues of $57.9 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]