First National Corporation Completes Acquisition of Touchstone Bankshares, Inc.

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].