First National Corp. Rewards Shareholders With a 3.3% Dividend Hike

Core Viewpoint - First National Corporation (FXNC) has increased its quarterly cash dividend by 3.3% to 15.5 cents per share, marking a consistent dividend growth over the past 10 years [1] Dividend Information - The new dividend will be paid on December 13, 2024, to shareholders of record as of November 29, 2024 [1] - FXNC's current dividend yield stands at 2.6%, based on a closing price of $23.80 as of November 15 [2] Capital Distribution Activities - FXNC currently does not have an active share repurchase program, with the previous plan allowing for the buyback of up to $5 million worth of shares expiring on December 31, 2023 [3] - The company had a prior repurchase plan in December 2019, which also authorized $5 million and expired in December 2020 [3] Financial Position - As of September 30, 2024, FXNC reported cash and cash equivalents of $126.5 million, net loans of $982 million, and total deposits of $1.3 billion [4] - The common equity Tier-1 capital ratio was 13%, and the total capital ratio was 14.3%, both exceeding regulatory requirements [4] Outlook - Given its solid capital and liquidity positions, FXNC is expected to maintain its current capital distribution activities and enhance shareholder value [5] - Year-to-date, FXNC shares have increased by 9.4%, while the industry has seen a growth of 29% [6]