
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]