First National (FXNC) - 2025 Q3 - Quarterly Results

Financial Performance - Earnings for Q3 2025 were $5.55 million, with earnings per share of $0.62, representing an 11% increase from the previous period and a 72% increase year-over-year[1][5] - For the three months ended September 30, 2025, net income was $5,550,000, an increase from $5,051,000 for the previous quarter[28] - Net income for Q3 2025 was $5,550,000, compared to $5,051,000 in Q2 2025 and $2,248,000 in Q3 2024, representing a year-over-year increase of 146.5%[33] - Adjusted operating net income (non-GAAP) for Q3 2025 was $5,310,000, up from $2,448,000 in Q3 2024, reflecting a growth of 116.1%[33] - Basic earnings per common share increased to $0.62 for Q3 2025, up from $0.56 in Q2 2025 and $0.36 in Q3 2024[29] - Adjusted earnings per common share, basic, rose to $0.58 in Q3 2025, compared to $0.57 in Q2 2025 and $0.39 in Q3 2024[29] Asset and Loan Growth - Total assets were $2.031 billion, a 40.0% increase from the previous year[12] - Total assets as of September 30, 2025, were $2,030,754,000, compared to $1,450,716,000 a year earlier, marking an increase of 39.9%[35] - Net loans held for investment totaled $1.419 billion, an increase of 44.5% from the previous year[5][13] - Total loans reached $1,441,419 thousand with a yield of 5.90% for the three months ended September 30, 2025, compared to $991,183 thousand and a yield of 5.82% a year earlier, indicating a significant increase in both volume and yield[31] - Total loans decreased to $1,433,197,000 from $1,443,437,000, reflecting a decline of approximately 0.7%[30] Deposits and Capital - Total deposits reached $1.810 billion, up 44.4% from one year prior[5][15] - Total deposits increased to $1,809,583,000 from $1,803,166,000 in the previous quarter, reflecting a growth of approximately 0.9%[30] - Total capital reached $194.91 million as of Q3 2025, an increase from $189.12 million in Q2 2025 and $148.48 million in Q3 2024[29] - Shareholders' equity rose to $177,130 thousand as of September 30, 2025, compared to $122,882 thousand a year earlier, reflecting a year-over-year increase of 44%[31] Income and Expenses - Total interest and dividend income for the nine months ended September 30, 2025, was $74,273,000, compared to $50,833,000 for the same period in 2024, representing a 46.3% increase[28] - Total noninterest income for Q3 2025 was $4,500,000, compared to $3,203,000 in Q3 2024, indicating a growth of 40.4%[34] - Total noninterest expense for the nine months ended September 30, 2025, was $49,308,000, compared to $31,005,000 in 2024, indicating a 59.3% increase[28] - Total noninterest expense for Q3 2025 was $15,782,000, up from $10,459,000 in Q3 2024, reflecting a 51.1% increase, primarily due to merger-related expenses[34] Efficiency and Ratios - The efficiency ratio for the nine months ended September 30, 2025, improved to 73.1% from 78.1% in 2024, indicating better cost management[28] - Efficiency ratio (non-GAAP) for Q3 2025 was 67.97%, compared to 67.95% in Q3 2024, indicating a slight improvement in operational efficiency[34] - Return on average assets improved to 1.09% in Q3 2025, up from 1.00% in Q2 2025 and 0.62% in Q3 2024[29] - Return on average equity increased to 12.43% in Q3 2025, compared to 11.85% in Q2 2025 and 7.28% in Q3 2024[29] Credit Quality - Non-performing assets (NPAs) as a percentage of total assets improved to 0.28%, down from 0.33% in Q2 2025 and 0.41% in Q3 2024[5][19] - The allowance for credit losses on loans was $14.4 million, or 1.01% of total loans, down from 1.05% in Q2 2025[6][7] - Provision for credit losses for the three months ended September 30, 2025, was $193,000, significantly lower than $911,000 in the previous quarter[28] - Nonperforming assets decreased to $5.70 million in Q3 2025 from $6.80 million in Q2 2025 and $5.99 million in Q3 2024[29] Dividends - The Company declared and paid cash dividends of $0.155 per common share, consistent with the previous quarter[21] - Cash dividends declared remained stable at $0.155 per share for Q3 2025, consistent with Q2 2025 and up from $0.15 in Q3 2024[29]