
Core Viewpoint - First National Corporation reported earnings for Q1 2025, showing a net income of $1.52 million and adjusted earnings of $3.1 million, reflecting the impact of the Touchstone acquisition and merger-related expenses [1][4][8]. Financial Performance - The company achieved net interest income of $17.5 million for Q1 2025, a decrease of $908 thousand from the previous quarter, attributed to amortization on early payoffs of Touchstone loans [5][10]. - Non-interest income decreased to $3.6 million in Q1 2025 from $6.4 million in the prior quarter, primarily due to a one-time bargain purchase gain in Q4 2024 [7]. - Non-interest expenses decreased to $18.3 million in Q1 2025 from $21.9 million in the prior quarter, driven by a reduction in merger-related expenses [8][9]. Balance Sheet Highlights - Total assets reached $2.033 billion, up 40.5% from the previous year, primarily due to the Touchstone acquisition [6][10]. - Net loans held for investment increased to $1.436 billion, a 49.5% increase year-over-year [6][11]. - Total deposits rose to $1.825 billion, reflecting a 44.9% increase from the previous year, with non-interest bearing deposits comprising 30% of total deposits [6][13]. Asset Quality - Nonperforming assets as a percentage of total assets decreased to 0.24% as of March 31, 2025, down from 0.55% a year prior [17][18]. - The allowance for credit losses to nonperforming assets improved to 302.94% [17][21]. Capital Ratios - The total capital ratio stood at 12.44% as of March 31, 2025, compared to 14.45% a year earlier [24][35]. - The tangible book value per share increased to $16.81 from $16.55 in the previous quarter [24][32].