First National Corporation Reports Third Quarter 2024 Financial Results

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]