Core Viewpoint First National Corporation reported a decline in net income and earnings per share for the third quarter of 2024, alongside improvements in net interest margin and noninterest income, while also completing the acquisition of Touchstone Bankshares, Inc. Financial Performance - The company reported unaudited consolidated net income of $2.2 million for Q3 2024, down from $3.1 million in Q3 2023, with basic and diluted earnings per share of $0.36 compared to $0.50 a year ago [1][2][38] - Adjusted net income for Q3 2024 was $2.4 million, with adjusted earnings per share of $0.39, down from $0.50 in Q3 2023 [1][2][38] - Return on average assets (ROA) decreased to 0.62% from 0.91% year-over-year, while return on average equity (ROE) fell to 7.28% from 10.96% [2][38] Key Highlights - Net interest margin improved to 3.43%, up from 3.35% a year ago [4][7] - Noninterest income increased by 19% to $3.2 million, driven by higher ATM and check card fees and wealth management fees [10] - Noninterest expense decreased by 2% to $10.5 million, primarily due to lower legal and professional fees [11] Asset Quality - Nonperforming assets (NPAs) as a percentage of total assets decreased to 0.41% from 0.59% in the previous quarter, but increased from 0.23% a year ago [12][14] - Loans past due greater than 30 days remained stable at $2.4 million, with no loans over 90 days past due [13][14] Merger Activity - The acquisition of Touchstone Bankshares, Inc. was completed on October 1, 2024, with the combined company having approximately $2.1 billion in assets and $1.8 billion in deposits [5][6] - The merger is expected to enhance the company's market presence in Virginia and North Carolina [5][6] Balance Sheet - Total assets were $1.5 billion, a decrease of 2% from the previous quarter but an increase of 6% year-over-year [23] - Total deposits decreased by approximately 4% from the previous quarter to $1.3 billion, but increased by 1% year-over-year [26] Capital Ratios - The total capital ratio improved to 14.29% from 14.13% in the previous quarter, while the Tier 1 capital ratio was 13.04% [28][39]

Core Viewpoint - First National Corporation has successfully completed the merger with Touchstone Bankshares, Inc., enhancing its market position and resources for small business customers [1][3]. Group 1: Merger Details - The merger became effective on October 1, 2024, with Touchstone Bank being merged into First Bank [1]. - Each outstanding share of Touchstone common and preferred stock is entitled to receive 0.8122 shares of First National's common stock [1]. - The former branches of Touchstone Bank will operate as divisions of First Bank until systems integration is completed in February 2025 [2]. Group 2: Financial Impact - Post-merger, the combined company will have approximately $2.1 billion in assets, $1.5 billion in loans, and $1.8 billion in deposits as of August 30, 2024 [2]. - The merger will enable the company to deliver banking services through 33 branch offices and 3 loan production offices across Virginia and North Carolina [2]. Group 3: Strategic Outlook - The merger is expected to provide significantly more resources to small business customers and positively impact the communities served [3]. - The combined market capitalization is anticipated to position the company near the Russell 2000 index [3]. Group 4: Company Background - First National Corporation is the parent company of First Bank, a community bank established in 1907, offering a range of banking services [4]. - The bank operates a wealth management division and has a network of ATMs and loan production offices [4].

Core Points - Touchstone Bankshares, Inc. announced a pro rata annual cash dividend of $0.16 per share in anticipation of its merger with First National Corporation [1][2] - The dividend is payable on September 27, 2024, to shareholders of record as of September 20, 2024 [2] - The merger is expected to close in the fourth quarter of 2024, pending customary closing conditions [3] Company Overview - Touchstone Bankshares, Inc. is the bank holding company for Touchstone Bank, a full-service community bank headquartered in Prince George, Virginia [4] - The bank operates ten branches in Southern and Central Virginia, along with two branches and two loan centers in Northern North Carolina [4]

Financial Performance - Net income for Q2 2024 decreased by $1.1 million to $2.4 million, or $0.39 per diluted share, compared to $3.5 million, or $0.56 per diluted share, in Q2 2023[147] - For the six months ended June 30, 2024, net income decreased by $1.7 million to $5.7 million, or $0.90 per diluted share, compared to $7.4 million, or $1.17 per diluted share, for the same period in 2023[152] - Net income for the three months ended June 30, 2024, decreased by $1.1 million, or 30%, to $2.4 million, compared to $3.5 million for the same period in 2023[165] - For the six months ended June 30, 2024, net income decreased by $1.7 million, or 23%, to $5.7 million, compared to $7.4 million for the same period in 2023[166] Interest Income and Expenses - Net interest income increased by $749 thousand due to a $2.8 million rise in total interest income, partially offset by a $2.0 million increase in total interest expense[149] - Net interest income increased by $749 thousand, or 7%, to $11.5 million for the second quarter of 2024, driven by a $2.8 million increase in total interest income[167] - Total interest income for the second quarter of 2024 increased by $2.1 million, or 18%, due to a 57-basis point increase in yield on loans and a 6% increase in average loan balances[168] - Total interest expense increased by $2.0 million, with a $1.4 million increase attributed to deposits and a $603 thousand increase from other borrowings[169] - The net interest margin for the second quarter of 2024 was 3.40%, up from 3.36% for the same period in the prior year[170] - For the six months ended June 30, 2024, net interest income increased by $423 thousand, or 2%, to $22.3 million, despite a $5.2 million increase in interest expense[172] - The net interest margin for the six months ended June 30, 2024, was 3.31%, down from 3.48% for the same period in the prior year[176] Noninterest Income and Expenses - Noninterest income decreased by $198 thousand, primarily due to declines in service charges on deposits and ATM fees[151] - Noninterest income increased by $1.1 million, or 19%, to $6.7 million for the six months ended June 30, 2024, compared to the same period in 2023[185] - Total noninterest expenses increased by $1.5 million, driven by a $650 thousand rise in salaries and employee benefits and a $702 thousand increase in legal and professional expenses[152] - Noninterest expenses increased by $2.2 million, or 12%, to $20.5 million for the six-month period ended June 30, 2024, compared to the same period in 2023[187] Credit Losses - Provision for credit losses increased by $300 thousand, totaling $400 thousand for Q2 2024, compared to $100 thousand in Q2 2023[150] - The provision for credit losses increased by $300 thousand for the three months ended June 30, 2024, impacting overall profitability[165] - Provision for credit losses totaled $1.4 million for the six-month period ended June 30, 2024, compared to $100 thousand for the same period in the prior year[183] - The provision for credit losses charged to expense was based on management's judgment considering various factors, indicating a proactive approach to managing credit risk[204] Assets and Liabilities - Total assets increased to $1,448,479 thousand as of June 30, 2024, compared to $1,372,781 thousand a year earlier, reflecting a growth of 5.5%[177] - Total assets increased by $38.2 million, or 5% (annualized), to $1.5 billion as of June 30, 2024, compared to December 31, 2023[191] - Total liabilities increased by $34.6 million during the six-month period ended June 30, 2024, primarily from a $32.1 million, or 5% (annualized), increase in total deposits[192] - Loans totaled $990.0 million as of June 30, 2024, reflecting a $20.5 million (4% annualized) increase from December 31, 2023, and a $59.8 million (6%) increase from June 30, 2023[194] - Deposits reached $1.3 billion on June 30, 2024, marking a $32 million increase from December 31, 2023, and a $23.4 million (2%) increase from June 30, 2023[209] Capital and Equity - Shareholders' equity rose to $118,255 thousand, up from $111,917 thousand in the previous year, indicating a growth of 5.4%[177] - Total shareholders' equity increased by $3.6 million during the first six months of 2024, primarily from a $3.8 million increase in retained earnings[193] - The Bank's total capital to risk-weighted assets ratio was 14.13% as of June 30, 2024, exceeding the regulatory requirement of 8%[216] - The common equity Tier 1 capital ratio was 12.88% as of June 30, 2024, well above the minimum requirement of 4.5%[216] Mergers and Acquisitions - The Company entered into an agreement to acquire Touchstone Bankshares, Inc. for approximately $47.0 million in stock, expected to close in Q4 2024[146] - The Company incurred $571 thousand in merger-related expenses for the six months ended June 30, 2024, with an estimated additional $10.6 million in pre-tax merger-related expenses expected during 2024[146] Risk Management - The interest rate swap agreements are part of the Company's strategy to mitigate exposure to interest rate fluctuations[223] - The Company has $9.0 million of junior subordinated debt converted from variable to fixed interest rates through cash flow hedges, with a fair value of $2.7 million as of June 30, 2024[224] - The cash flow hedges are set to mature between June 2034 and October 2036, effectively managing interest rate risk for the Company[224] Regulatory and Compliance - There were no material changes in the Company's internal control over financial reporting during the last fiscal quarter, ensuring stability in financial reporting processes[226] - The Company maintains effective disclosure controls and procedures, as confirmed by the Chief Executive Officer and Chief Financial Officer as of June 30, 2024[225] - The Company has no material pending legal proceedings, ensuring a stable legal environment for operations[228]

Company Performance - First National Corp. reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, but down from $0.56 per share a year ago [9] - The company posted revenues of $14.18 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.01%, and compared to year-ago revenues of $13.63 million [10] - Over the last four quarters, First National has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [1][10] Market Comparison - First National shares have declined approximately 19.1% since the beginning of the year, contrasting with the S&P 500's gain of 14% [2] - The current Zacks Rank for First National is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $13.9 million, and for the current fiscal year, it is $1.85 on revenues of $56.8 million [12] - The earnings surprise for the recent quarter was 9.09%, with a previous expectation of $0.43 per share and an actual result of $0.51 per share, delivering a surprise of 18.60% [4] Industry Context - First National operates within the Zacks Banks - Southeast industry, which is currently ranked in the top 12% of over 250 Zacks industries [7] - The performance of First National's stock may be influenced by the overall outlook for the banking industry [7]

Core Viewpoint - Kahn Swick & Foti, LLC is investigating the proposed merger between First National Corporation and Touchstone Bankshares, Inc. to assess the fairness and adequacy of the transaction for shareholders [2]. Group 1: Merger Details - The proposed merger involves Touchstone shareholders receiving 0.8122 shares of First National stock for each share of Touchstone stock they own [2]. Group 2: Legal Investigation - Kahn Swick & Foti, LLC, led by former Louisiana Attorney General Charles C. Foti, Jr., is seeking to determine the fairness of the merger process for the shareholders of First National Corporation [2].

Financial Performance - Net income for Q1 2024 decreased by $640 thousand, or 17%, to $3.2 million, compared to $3.8 million in Q1 2023, with diluted earnings per share at $0.51[127] - Net interest income decreased by $326 thousand, or 1%, impacted by a $3.1 million increase in total interest expense, while total interest income increased by $2.8 million[129] - Total noninterest income increased by $1.3 million, primarily due to a recovery on a loan acquired through a business combination in 2021[131] - Net income for Q1 2024 decreased by $640 thousand, or 17%, to $3.2 million, or $0.51 per diluted share, compared to $3.8 million, or $0.61 per diluted share, in Q1 2023[139] - Total noninterest income increased by $1.3 million, or 46%, to $4.0 million in Q1 2024, driven by higher operating income and wealth management fees[150] Credit Losses and Provisions - The provision for credit losses increased to $1.0 million in Q1 2024, compared to no provision in Q1 2023, with the allowance for credit losses on loans totaling $12.6 million, or 1.30% of total loans[130] - Provision for credit losses totaled $1.0 million in Q1 2024, compared to no provision in the same period last year, primarily due to net charge-offs of $362 thousand[149] - The provision for credit losses charged to expense was based on management's judgment considering economic conditions and historical losses[167] Expenses and Efficiency - Total noninterest expenses increased by $687 thousand, or 8%, primarily due to higher salaries and employee benefits[131] - Noninterest expenses increased by $687 thousand, or 8%, to $9.9 million in Q1 2024, mainly due to a $525 thousand increase in salaries and employee benefits[151] - The efficiency ratio for Q1 2024 was 65.65%, slightly higher than 65.49% in Q1 2023, indicating a marginal increase in operational efficiency[133] Assets and Liabilities - Total assets increased by $27.9 million, or 8% (annualized), to $1.4 billion as of March 31, 2024[154] - Total liabilities increased by $26.4 million, primarily from an $25.4 million increase in total deposits, which rose by 8% (annualized)[155] - Total shareholders' equity increased by $1.5 million, primarily due to a $2.3 million increase in retained earnings[156] - Loans totaled $973.0 million at March 31, 2024, reflecting a $3.5 million or 2% increase from December 31, 2023, and a $55.0 million or 6% increase from March 31, 2023[157] - Deposits reached $1.3 billion on March 31, 2024, marking a $25.4 million or 8% increase from December 31, 2023[172] Capital and Regulatory Compliance - The Bank's total capital to risk-weighted assets ratio was 14.45% as of March 31, 2024, exceeding the regulatory minimum requirements[178] - The capital conservation buffer ratio was 6.45% as of March 31, 2024, indicating a strong capital position relative to regulatory requirements[178] Acquisition and Future Plans - The Company entered into an agreement to acquire Touchstone Bankshares, Inc. for approximately $47.0 million in stock, expected to close in Q4 2024[126] - The Company expects to incur approximately $3.3 million in pre-tax merger-related expenses during 2024 related to the acquisition of Touchstone[126] Asset Quality - Non-performing assets amounted to $8.0 million at March 31, 2024, representing approximately 0.55% of total assets, compared to $6.8 million or 0.48% of total assets at December 31, 2023[164] - Other potential problem loans totaled $1.7 million at March 31, 2024, compared to $287 thousand at December 31, 2023[165] Interest Rates and Hedging - The Company has interest rate swaps with a total notional amount of $9.0 million, converting variable interest rates to fixed rates, with cash flow hedges maturing between June 2034 and October 2036[187] - As of March 31, 2024, the fair value of the cash flow hedges was $2.7 million, recorded in other assets[187] - The net gain/loss on cash flow hedges is recognized in other comprehensive (loss) income and reclassified into earnings during the same period as the hedged transactions affect earnings[187]

First National Corp. (FXNC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.T ...

[First Quarter 2024 Financial Results](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results) [First Quarter 2024 Highlights](index=1&type=section&id=FIRST%20QUARTER%20HIGHLIGHTS) First National Corporation reported a solid first quarter for 2024, achieving net income of $3.2 million and a strategic acquisition of Touchstone Bankshares Quarterly Performance Summary | Metric | Value | | :--- | :--- | | Net Income | $3.2 million | | Diluted EPS | $0.51 | | Return on Average Assets | 0.90% | | Return on Average Equity | 11.07% | | Tangible Book Value per Share | $18.27 | - Deposits grew by **$25.4 million**, an 8% annualized increase, with stable noninterest-bearing deposits making up 31% of the total[8](index=8&type=chunk) - The company announced a significant expansion through an agreement to acquire Touchstone Bankshares, Inc[2](index=2&type=chunk)[8](index=8&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) [Net Interest Income](index=1&type=section&id=NET%20INTEREST%20INCOME) Net interest income slightly increased to $10.9 million, driven by higher interest income on deposits offset by increased interest expense from deposit costs and new borrowings - Net interest income increased by **$41 thousand** to **$10.9 million** quarter-over-quarter[3](index=3&type=chunk) - Interest income on deposits in other banks rose by **$920 thousand** due to a **$73.7 million** increase in average balances[4](index=4&type=chunk) - Interest expense on deposits increased by **$539 thousand**, reflecting a 17-basis point rise in the cost of deposits[5](index=5&type=chunk) - A new **$50.0 million** borrowing from the Federal Reserve's Bank Term Funding Program contributed **$482 thousand** to interest expense[5](index=5&type=chunk) [Noninterest Income](index=1&type=section&id=NONINTEREST%20INCOME) Noninterest income significantly increased to $4.0 million, primarily due to a recovery on a charged-off loan Noninterest Income Breakdown | Category | Q1 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Noninterest Income** | **$4.0M** | **$3.0M** | **+$978k** | | Other Operating Income | - | - | +$1.2M | - The increase in other operating income was due to a recovery on a charged-off loan from a 2021 acquisition[6](index=6&type=chunk) [Noninterest Expense](index=2&type=section&id=NONINTEREST%20EXPENSE) Noninterest expense rose to $9.9 million, mainly due to an increase in salaries and employee benefits following a prior quarter's adjustment - Total noninterest expense increased by **$787 thousand** (9%) to **$9.9 million** quarter-over-quarter[9](index=9&type=chunk) - The primary driver was an **$872 thousand** increase in salaries and employee benefits, which was artificially low in Q4 2023 due to a one-time adjustment[9](index=9&type=chunk) [Asset Quality](index=2&type=section&id=ASSET%20QUALITY) [Overview](index=2&type=section&id=Asset%20Quality%20Overview) Asset quality showed mixed results with decreased past-due loans but increased nonperforming assets, while net charge-offs significantly declined Asset Quality Metrics | Metric | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Past Due Loans / Total Loans | 0.25% | 0.31% | 0.20% | | NPAs / Total Assets | 0.55% | 0.48% | 0.13% | | Net Charge-offs (Q1) | $362k | $2.7M (Q4) | $915k | | ACL on Loans / Total Loans | 1.30% | 1.24% | 0.95% | [Past Due Loans](index=2&type=section&id=Past%20Due%20Loans) Loans past due 30 days or more decreased to $2.5 million, with a significant reduction in those past due 90 days or more - Loans past due 30+ days decreased from **$3.0 million** to **$2.5 million** quarter-over-quarter[11](index=11&type=chunk) [Nonperforming Assets (NPAs)](index=2&type=section&id=Nonperforming%20Assets) Nonperforming assets increased to $8.0 million, primarily driven by a rise in nonaccrual commercial and industrial loans - NPAs rose by **$1.2 million** to **$8.0 million** in Q1 2024, mainly due to an increase in nonaccrual commercial and industrial loans[12](index=12&type=chunk) [Net Charge-offs](index=2&type=section&id=Net%20Charge-offs) Net charge-offs substantially decreased to $362 thousand in Q1 2024, a significant reduction from the previous quarter - Net charge-offs dropped to **$362 thousand** in Q1 2024 from **$2.7 million** in Q4 2023[13](index=13&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses significantly decreased to $1.0 million in Q1 2024 compared to the prior quarter - The provision for credit losses was **$1.0 million** in Q1 2024, compared to **$6.0 million** in Q4 2023[14](index=14&type=chunk) [Allowance for Credit Losses (ACL)](index=2&type=section&id=Allowance%20for%20Credit%20Losses) The total allowance for credit losses on loans increased to $12.6 million, reflecting a strengthening of reserves [ACL on Loans](index=2&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Loans) The allowance for credit losses on loans increased to $12.6 million, or 1.30% of total loans, driven by higher specific reserves ACL on Loans | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | ACL on Loans | $12.6M | $12.0M | | ACL as % of Total Loans | 1.30% | 1.24% | [ACL on Unfunded Commitments](index=3&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Unfunded%20Commitments) The allowance for credit losses on unfunded commitments remained stable at $413 thousand with no new provision recorded - The allowance for credit losses on unfunded commitments remained stable at **$413 thousand**, with no provision recorded in Q1 2024[18](index=18&type=chunk) [ACL on HTM Securities](index=4&type=section&id=Allowance%20for%20Credit%20Losses%20on%20Securities%20HTM) The allowance for credit losses on held-to-maturity securities slightly increased to $116 thousand with a minor provision - The allowance for credit losses on securities increased to **$116 thousand** from **$107 thousand**, with a **$9 thousand** provision in Q1 2024[19](index=19&type=chunk) [Balance Sheet and Capital Management](index=4&type=section&id=Balance%20Sheet%20and%20Capital%20Management) [Liquidity](index=4&type=section&id=LIQUIDITY) The Bank's liquidity position remains strong with increased available sources, though uninsured customer deposits also rose Liquidity Metrics | Liquidity Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Available Liquidity Sources | $554.8M | $512.7M | | Estimated Uninsured Deposits | $391.9M | $368.2M | [Balance Sheet Analysis](index=4&type=section&id=BALANCE%20SHEET) Total assets grew to $1.4 billion, driven by increased interest-bearing deposits, while loans and deposits also saw modest growth - Total assets increased by **$27.9 million** to **$1.4 billion** in Q1 2024[22](index=22&type=chunk) - Total loans grew by **$3.5 million** (2% annualized) to **$973.0 million**[23](index=23&type=chunk) - Total deposits increased by **$25.4 million** (8% annualized) to **$1.3 billion**[25](index=25&type=chunk) - Total investments decreased by **$27.6 million** to **$273.5 million**, with net unrealized losses on the AFS portfolio increasing to **$22.2 million**[24](index=24&type=chunk) [Capital Ratios and Dividends](index=4&type=section&id=Capital%20Ratios%20and%20Dividends) The company's capital ratios remained well above regulatory requirements, and the quarterly cash dividend was maintained Capital Ratios | Capital Ratio | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Capital Ratio | 14.45% | 14.05% | | Tier 1 Capital Ratio | 13.20% | 12.82% | | Leverage Ratio | 9.19% | 9.31% | | Tangible Common Equity / Tangible Assets | 7.94% | 7.99% | - The company declared and paid a cash dividend of **$0.15 per common share**, consistent with the prior quarter and the same quarter last year[28](index=28&type=chunk) [Supplementary Information](index=6&type=section&id=Supplementary%20Information) [Non-GAAP Financial Measures](index=6&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) The company uses non-GAAP financial measures to provide additional insights into performance, cautioning they are supplemental and not GAAP substitutes - The report uses non-GAAP measures including the efficiency ratio and tangible common equity to tangible assets to provide useful information for decision-making[29](index=29&type=chunk) - These non-GAAP measures are considered supplemental and may not be comparable to those of other financial institutions[30](index=30&type=chunk) [About the Company](index=6&type=section&id=ABOUT%20FIRST%20NATIONAL%20CORPORATION) First National Corporation is the bank holding company for First Bank, a community bank operating through 20 branches, digital platforms, and a wealth management division - First National Corporation is the parent company of First Bank, which was founded in 1907[31](index=31&type=chunk) - The bank operates 20 branch offices, a loan production office, and a wealth management division[31](index=31&type=chunk) [Forward-Looking Statements](index=6&type=section&id=FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements subject to inherent risks and uncertainties that could cause actual results to differ materially - The report includes forward-looking statements subject to risks and uncertainties that could cause material differences in actual results[32](index=32&type=chunk) [Consolidated Financial Tables](index=7&type=section&id=Consolidated%20Financial%20Tables) [Quarterly Performance Summary](index=7&type=section&id=Quarterly%20Performance%20Summary) This section provides detailed unaudited financial data for the five most recent quarters, including income statements, balance sheets, and key ratios Quarterly Performance Summary (in thousands, except per share data) | (in thousands, except per share data) | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | **Income Statement** | | | | | Net Interest Income | $10,850 | $10,809 | $11,176 | | Provision for Credit Losses | $1,000 | $5,950 | $0 | | Noninterest Income | $4,047 | $3,069 | $2,778 | | Noninterest Expense | $9,887 | $9,100 | $9,200 | | **Net Income (Loss)** | **$3,209** | **($851)** | **$3,849** | | **Per Share Data** | | | | | EPS, diluted | $0.51 | ($0.14) | $0.61 | | Tangible Book Value | $18.27 | $18.06 | $17.30 | | **Key Ratios** | | | | | Return on Average Assets | 0.90% | (0.25%) | 1.15% | | Net Interest Margin | 3.24% | 3.35% | 3.60% | | **Balance Sheet (Period End)** | | | | | Total Assets | $1,447,195 | $1,419,295 | $1,372,332 | | Total Loans, Net | $960,371 | $957,456 | $909,250 | | Total Deposits | $1,259,137 | $1,233,726 | $1,241,525 | | Total Shareholders' Equity | $117,816 | $116,271 | $111,811 |

First National Corp. (FXNC) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.60%. A quarter ago, it was expected that this company would post earnings of $0.48 per share when it actually produced a loss of $0.14, delivering a surprise of -129.17%.Over the last four quarters, the com ...