First National Corporation Reports Record Third Quarter 2025 Earnings

Core Viewpoint - First National Corporation reported a record financial performance for the third quarter of 2025, with earnings of $5.55 million and earnings per share of $0.62, reflecting an increase from both the previous quarter and the same period last year [1][2]. Financial Highlights - Earnings per share increased by 11% from the previous quarter and 72% year-over-year [5]. - Return on average assets improved to 1.09% from 1.00% in the previous quarter and 0.62% a year ago [5]. - Return on average equity rose to 12.43% compared to 11.85% in the previous quarter and 7.28% one year prior [5]. - Net interest margin (FTE) was 3.84%, up from 3.43% a year earlier [5]. - Net loans held for investment reached $1.419 billion, a 44.5% increase from the previous year [5]. - Total deposits amounted to $1.810 billion, up 44.4% year-over-year [5]. Net Interest Income - Net interest income for the third quarter was $18.3 million, a decrease of $253 thousand from the previous quarter [4]. - The net interest margin decreased to 3.84% from 3.95% in the second quarter of 2025 [4]. - Earning asset yields decreased by 9 basis points to 5.26% compared to the previous quarter [4]. Allowance and Provision for Credit Losses - The provision for credit losses was $193 thousand, significantly lower than the $911 thousand recorded in the previous quarter [5]. - The allowance for credit losses on loans totaled $14.4 million, or 1.01% of total loans [7]. Noninterest Income and Expense - Noninterest income increased by $611 thousand to $4.5 million, primarily due to higher ATM and check card income [8]. - Noninterest expense rose to $15.8 million, driven by increases in salaries and employee benefits [10]. Balance Sheet - Total assets were $2.031 billion, a slight decrease from the previous quarter but a 40% increase from the previous year [12]. - Total debt security investments increased to $305.5 million, up 2.0% from the previous quarter [14]. - Total deposits increased by $6.4 million from the prior quarter, primarily due to interest-bearing demand deposits [15]. Asset Quality - Non-performing assets (NPAs) improved to 0.28% of total assets, down from 0.33% in the previous quarter [19]. - Loans past due over 90 days increased to $388 thousand, while loans past due 30-89 days rose to $3.6 million [20]. Capital - Tangible book value per share grew to $18.26, up from $17.40 in the previous quarter [21]. - The total risk-based capital ratio was 15.15%, an increase from 14.89% in the previous quarter [22].