While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companie ...

First National Corp. (FXNC) has been on a downward spiral lately with significant selling pressure. After declining 13.5% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whet ...

Financial Performance - Net income for Q3 2023 decreased by $1.3 million, or 30%, to $3.1 million, with diluted earnings per share at $0.50 compared to $0.71 in Q3 2022[143] - For the nine months ended September 30, 2023, net income decreased by $1.5 million, or 13%, to $10.5 million, with diluted earnings per share at $1.67 compared to $1.92 in the same period of 2022[148] - Net income for the three months ended September 30, 2023, decreased by $1.3 million, or 30%, to $3.1 million, with a return on average assets of 0.91%[161] Interest Income and Expenses - Net interest income fell by $1.0 million, or 9%, and total noninterest expenses increased by $701 thousand, or 8%[144] - Net interest income for the three months ended September 30, 2023, decreased by $1.0 million, or 9%, to $10.7 million compared to $11.7 million for the same period in 2022[161] - For the nine months ended September 30, 2023, net interest income decreased by $961 thousand, attributed to a $6.8 million increase in total interest income offset by a $7.8 million increase in total interest expense[173] Asset Quality and Credit Losses - The provision for credit losses decreased by $100 thousand in Q3 2023, reflecting improved asset quality[144] - The provision for credit losses decreased by $100 thousand for the three months ended September 30, 2023, contributing to the offset of net income decline[162] - The provision for credit losses for the nine months ended September 30, 2023, totaled $200 thousand, down from $600 thousand in the same period of the prior year, indicating a positive trend in credit risk management[183] Operational Efficiency - The efficiency ratio for Q3 2023 was 70.67%, compared to 61.09% in Q3 2022, indicating a decline in operational efficiency[153] Interest Rates and Margins - The net interest margin decreased by 23 basis points, with the Federal funds target rate averaging 5.43% in Q3 2023, up from 2.35% a year ago[145] - The net interest margin for the third quarter of 2023 was impacted by a 23-basis point decrease, with the Federal funds target rate averaging 5.43%, compared to 2.35% for the same period last year[166] - The yield on earning assets increased by 68 basis points, partially offsetting the higher cost of funds which rose by 94 basis points[145] Noninterest Income and Expenses - Noninterest income for the third quarter of 2023 increased by $26 thousand, or 1%, to $3.1 million, driven by a 7% increase in ATM and check card fees and a 10% increase in wealth management fees[184] - Noninterest expenses increased by $1.5 million, or 6%, to $28.1 million for the nine-month period ended September 30, 2023, compared to the same period one year ago[189] Loans and Deposits - Total loans for the three months ended September 30, 2023, amounted to $943.452 million, with a taxable yield of 5.31%, up from $890.696 million and a yield of 4.79% in the same period of 2022[178] - Loans totaled $952.5 million at September 30, 2023, representing a $32.0 million, or 5% annualized increase from December 31, 2022[196] - Deposits totaled $1.2 billion on September 30, 2023, which was a $6.2 million decrease from December 31, 2022[208] Assets and Liabilities - The total assets as of September 30, 2023, were $1.355 billion, a decrease from $1.393 billion as of September 30, 2022[178] - Total liabilities decreased by $6.8 million during the nine-month period ended September 30, 2023, primarily from a $6.2 million decrease in total deposits[194] Capital and Regulatory Compliance - The Bank's total capital to risk-weighted assets ratio was 14.80% as of September 30, 2023, exceeding the regulatory minimum requirements[216] - The Bank met all capital adequacy requirements, including a capital conservation buffer ratio of 6.80% as of September 30, 2023[216] - The Bank qualified as "well capitalized" under prompt corrective action requirements as of September 30, 2023[217] Miscellaneous - The effective tax rate for the first nine months of 2023 was 19.3%, compared with 19.0% for the same period in 2022[192] - The estimated amount of uninsured customer deposits increased to $346.9 million as of September 30, 2023, from $261.7 million on December 31, 2022[210] - The Company authorized a stock repurchase plan of up to $5.0 million, repurchasing 37,532 shares at an average price of $15.14 per share during the first nine months of 2023[218]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 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) Virginia 54-1232965 (State or other jurisdiction of incorporat ...

Financial Performance - Net income for Q1 2023 increased by $120 thousand, or 3%, to $3.8 million, with earnings per diluted share at $0.61 compared to $0.60 in Q1 2022[142]. - Net income for Q1 2023 increased by $120 thousand, or 3%, to $3.8 million, or $0.61 per diluted share, compared to $3.7 million, or $0.60 per diluted share in Q1 2022[156]. - The return on average assets was 1.15% and return on average equity was 14.2% for Q1 2023, compared to 1.06% and 13.4% in Q1 2022[142]. Income and Expenses - Net interest income rose by $628 thousand, or 6%, driven by a $2.5 million, or 23%, increase in total interest income, despite a $1.9 million, or 394%, increase in total interest expense[143][144]. - Net interest income rose by $628 thousand, or 6%, driven by a $2.5 million increase in total interest income, despite a $1.9 million increase in total interest expense[157]. - Total noninterest income increased by $67 thousand, or 2%, primarily from service charges on deposits and ATM fees[147]. - Total noninterest income increased by $67 thousand, or 3%, primarily due to higher service charges on deposits and ATM fees[169]. - Total noninterest expense increased by $556 thousand, or 6%, mainly due to higher salaries and employee benefits, marketing, and other operating expenses[148]. - Total noninterest expense increased by $556 thousand, or 6%, mainly from higher salaries and employee benefits, marketing, and ATM expenses[170]. - The efficiency ratio for Q1 2023 was 65.49%, compared to 64.38% in Q1 2022, indicating a slight decline in operational efficiency[150]. Credit Quality - The allowance for credit losses on loans totaled $8.7 million, or 0.95% of total loans, as of March 31, 2023, up from 0.81% on December 31, 2022[146]. - There was no provision for credit losses recorded in Q1 2023 or Q1 2022, indicating stable credit quality[146]. - The company recorded no provision for credit losses for both Q1 2023 and Q1 2022[167]. - Non-performing assets totaled $1.8 million, representing approximately 0.13% of total assets, down from 0.21% at the end of 2022[182]. - Other potential problem loans decreased to $1.7 million from $2.3 million at December 31, 2022, indicating improved asset quality management[183]. Assets and Liabilities - Total assets increased to $1.4 billion, up $2.9 million from December 31, 2022, primarily due to a $13.7 million increase in interest-bearing deposits[173]. - Total liabilities decreased slightly by $548 thousand, with total deposits increasing by $193 thousand, while noninterest-bearing deposits decreased by $17.3 million[174]. - Total shareholders' equity rose by $3.5 million, driven by a $955 thousand increase in retained earnings despite cash dividend payments of $0.15 per share[175]. - Loans totaled $918.0 million, a decrease of $2.6 million from December 31, 2022, while average loans increased by $1.0 million from the previous quarter[176]. - Securities portfolio decreased to $315.5 million, down $2.5 million or 0.8% from December 31, 2022, with gross unrealized losses in the available for sale portfolio totaling $21.3 million[186]. - Deposits totaled $1.2 billion, an increase of $193 thousand from December 31, 2022, with average deposits decreasing by $42.7 million or 3% compared to the previous quarter[188]. Liquidity and Capital - On-balance sheet liquidity totaled $142.1 million, an increase from $129.4 million at December 31, 2022[192]. - The Bank had no borrowings from the Bank Term Funding Program during the first quarter of 2023, despite having access to liquidity sources totaling $471.2 million[190]. - As of March 31, 2023, the total available off-balance sheet liquidity for the Bank was $329.094 million, an increase from $287.762 million at December 31, 2022[193]. - The Bank's total available secured lines of credit amounted to $278.094 million as of March 31, 2023, compared to $236.762 million at the end of 2022[193]. - The Bank's common equity Tier 1 capital ratio was 13.94% as of March 31, 2023, exceeding the regulatory minimum requirement of 7.0%[198]. - The capital conservation buffer ratio stood at 6.88% as of March 31, 2023, indicating a strong capital position above the required buffer[198]. - The Bank's Tier 1 capital to risk-weighted assets ratio was 13.94% as of March 31, 2023, indicating a solid capital base[198]. Commitments and Stock Activity - Commitments to extend credit were $170.2 million at March 31, 2023, up from $158.3 million at December 31, 2022[204]. - The Bank had $17.6 million in outstanding standby letters of credit as of March 31, 2023, slightly down from $18.0 million at December 31, 2022[207]. - The Company authorized a stock repurchase plan of up to $5.0 million, with 1,557 shares repurchased at an average price of $16.06 per share during Q1 2023[200]. - The Bank did not pledge securities to, or borrow from, the BTFP facility during the first quarter of 2023, despite having $91.2 million in eligible securities[194]. - The Company recorded an adjustment for unfunded commitments of $153 thousand for the adoption of ASC Topic 326 as of January 1, 2023[206].

Financial Performance - Net income increased by $6.4 million to $16.8 million, or $2.68 per diluted share, for the year ended December 31, 2022, compared to $10.4 million, or $1.86 per diluted share, for the same period in 2021[159]. - Net interest income increased by $10.7 million, or 31%, for the year ended December 31, 2022, driven by a $12.3 million increase in total interest income[162]. - Noninterest income rose by $2.4 million, primarily from a $2.9 million gain recognized from the sale of an interest in a company owned by First Bank Financial Services, Inc.[165]. - Return on average assets was 1.19% and return on average equity was 15.87% for the year ended December 31, 2022, compared to 0.88% and 10.30%, respectively, for the year ended December 31, 2021[160]. - The efficiency ratio improved to 61.75% in 2022 from 64.44% in 2021, indicating enhanced operational efficiency[175]. Asset and Liability Management - Total assets decreased to $1,369.4 million as of December 31, 2022, from $1,389.4 million in 2021[168]. - Total liabilities decreased by $11.4 million to $1.3 billion at December 31, 2022, with total deposits decreasing by $7.4 million[220]. - Total shareholders' equity decreased by $8.6 million to $108.4 million at December 31, 2022, mainly due to a $22.8 million decrease in accumulated other comprehensive income[221]. - As of December 31, 2022, total deposits amounted to $1.2 billion, a slight decrease of $7.4 million from the previous year[254]. Loan Performance - The provision for loan losses increased by $2.5 million, resulting in a total allowance for loan losses of $7.4 million, or 0.81% of total loans, at December 31, 2022[164]. - Loans increased by $95.4 million to $920.5 million at December 31, 2022, with residential real estate loans increasing by $39.4 million[225]. - Non-performing assets totaled $2.9 million at December 31, 2022, representing approximately 0.21% of total assets[229]. - The allowance for loan losses increased to $7.4 million at December 31, 2022, representing 0.81% of total loans, up from 0.69% in the prior year[235]. - The Bank modified loans totaling $9.1 million at December 31, 2022, all in the commercial real estate loan portfolio, which were performing under modified terms[234]. Interest Income and Expense - Interest income from loans increased to $41,720,000 in 2022 from $32,797,000 in 2021, representing a growth of 27.5%[177]. - Total net interest income rose to $45,575,000 in 2022 compared to $34,840,000 in 2021, marking an increase of 30.9%[177]. - Total interest income rose by $12.3 million, or 33%, driven by a $212.0 million, or 19%, increase in average earning assets[206]. - Total interest expense increased by $1.5 million, or 66%, due to a $141.8 million, or 19%, increase in average interest-bearing liabilities[206]. Capital Management - The Company authorized a stock repurchase plan of up to $5.0 million, with no shares repurchased during the year ended December 31, 2022[281]. - Common equity Tier 1 capital increased to $132,103 million in 2022 from $120,224 million in 2021, reflecting a growth of approximately 9.8%[277]. - Total risk-based capital rose to $139,549 million in 2022, up from $125,934 million in 2021, indicating an increase of about 10.9%[277]. - The common equity Tier 1 capital ratio decreased to 13.82% in 2022 from 14.09% in 2021, while the total capital ratio also fell to 14.60% from 14.76%[277]. Regulatory Compliance - The Bank's regulatory capital ratios met all requirements, including a common equity Tier 1 capital ratio of 7.0%[275]. - First Bank remained well-capitalized as of December 31, 2022, meeting all regulatory capital requirements[285]. Risk Management - The Company manages risks associated with third-party lending programs through minimum credit scores and robust performance analysis[202]. - The Board Loan Committee reviews all loans greater than $1.0 million and meets at least twice per quarter to oversee risk management[191]. - The Bank's loan policy includes approval limits for individual loan officers based on their position and experience to manage risk effectively[191].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Table of Contents FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 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) Virginia 54-1232965 (State or other jurisdiction of incor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents For the transition period from to Commission File Number: 1-38874 (Exact name of registrant as specified in its charter) Virginia 54-1232965 (State or other jurisdiction of incorporat ...

Financial Performance - Net income for Q1 2022 increased by $1.3 million to $3.7 million, or $0.60 per diluted share, compared to $2.4 million, or $0.50 per diluted share, in Q1 2021[125]. - Total net interest income for the three months ended March 31, 2022, was $10,548 thousand, compared to $7,512 thousand for the same period in 2021, representing an increase of 40.4%[140]. - Tax-equivalent net interest income for the three months ended March 31, 2022, was $10,637 thousand, up from $7,568 thousand in the prior year, reflecting a growth of 40.4%[140]. - For the three-month period ending March 31, 2022, net interest income increased by $3.0 million, or 40%, compared to the same period of 2021, driven by a $2.9 million, or 36%, increase in total interest and dividend income[170]. - Noninterest income rose by $568 thousand, or 27%, to $2.7 million, with wealth management fees increasing by $160 thousand, or 25%[178]. Expenses and Efficiency - Total noninterest expense increased by $2.0 million, or 30%, largely due to the acquisition of The Bank of Fincastle and SmartBank's loan portfolio[126][130]. - The efficiency ratio for Q1 2022 was 64.38%, slightly improved from 64.49% in Q1 2021, indicating stable operational efficiency[138]. - Noninterest expense increased by $2.0 million, or 30%, to $8.6 million, primarily due to a $1.6 million, or 44%, increase in salaries and employee benefits[180]. Loan Losses and Allowances - The allowance for loan losses totaled $5.8 million, or 0.70% of total loans, with no provision for loan losses recorded in Q1 2022[128]. - The allowance for loan losses at March 31, 2022, included $350 thousand attributable to purchased loans[149]. - The company evaluates the allowance for loan losses quarterly, considering factors such as trends in delinquencies and charge-offs, and current economic conditions[146]. - The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors, calculated over the preceding twelve quarters[148]. - The allowance for loan losses was $5.8 million, representing 0.70% of total loans as of March 31, 2022[205]. Acquisitions and Growth - The acquisition of The Bank of Fincastle was completed for $33.8 million, with total assets of $267.9 million, total loans of $194.5 million, and total deposits of $236.3 million at the time of acquisition[133]. - First Bank acquired $82.0 million of loans and fixed assets from SmartBank for $83.7 million, transitioning an experienced team of bankers to First Bank[135]. - The acquisition of The Bank of Fincastle on July 1, 2021, contributed to the growth in average earning assets and overall financial performance[170]. Assets and Liabilities - Total assets increased by $28.2 million to $1.4 billion as of March 31, 2022, primarily due to an $11.2 million (1.4%) increase in loans and a $48.2 million (144.1%) increase in securities held to maturity[183]. - Total liabilities rose by $38.7 million to $1.3 billion, mainly driven by a $44.1 million increase in savings and interest-bearing demand deposits[184]. - Total shareholders' equity decreased by $10.5 million to $106.6 million, primarily due to a $13.7 million decrease in accumulated other comprehensive income[185]. - Loans, net of allowance for loan losses, increased by $11.2 million to $830.6 million, with commercial real estate loans rising by $19.4 million[186]. Credit Quality and Risk Management - Non-performing assets totaled $3.9 million, representing approximately 0.27% of total assets as of March 31, 2022[202]. - Impaired loans totaled $2.1 million as of March 31, 2022, with no related allowance for loan losses recorded[207]. - The Company had $1.6 million in loans classified as troubled debt restructurings (TDRs) as of March 31, 2022[200]. - Other potential problem loans totaled $311 thousand as of March 31, 2022, down from $1.1 million at December 31, 2021[203]. - The company performs regular credit reviews of the loan portfolio to ensure adherence to underwriting standards and assess credit quality[145]. Securities and Deposits - As of March 31, 2022, the securities portfolio totaled $366.5 million, an increase of $43.6 million, or 14.0%, from $322.9 million at December 31, 2021[211]. - The available for sale securities amounted to $284.9 million, while held to maturity securities were $81.6 million, compared to $289.5 million and $33.4 million at December 31, 2021, respectively[212]. - Deposits increased to $1.3 billion, up by $44.1 million from $1.2 billion at December 31, 2021, with noninterest-bearing demand deposits at 32% of total deposits[213]. Capital and Commitments - The Bank's total capital to risk-weighted assets ratio was 14.44% as of March 31, 2022, indicating strong capital adequacy[220]. - The Bank met the requirements to qualify as "well capitalized" with a common equity Tier 1 capital ratio of 13.79%[220]. - Commitments to extend credit amounted to $167.1 million at March 31, 2022, compared to $161.4 million at December 31, 2021[227]. - The Company has $10.9 million in locked-rate commitments to originate mortgage loans as of March 31, 2022[230]. Cash Flow and Hedges - At March 31, 2022, cash and liquid assets totaled $235.3 million, with 9.8% or $81.7 million of the loan portfolio maturing within one year[216]. - The cash flow hedges related to interest rate swaps had a fair value of $1.6 million at March 31, 2022[232]. - The Company has not authorized another stock repurchase plan as of March 31, 2022, following the suspension of the previous plan[223].

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, 2021 Registrant's telephone number, including area code: (540) 465-9121 Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading symbol(s) | Name of each exchange on which | | --- | --- | --- | | | | registered | | Common stock, par value $1.25 per sh ...