First National Corporation Reports Record Fourth Quarter and Annual 2025 Earnings

Core Insights - First National Corporation reported a record financial performance for the fourth quarter and the year 2025, with consolidated net income of $5.5 million and earnings per share of $0.61 for Q4 2025, and $17.7 million with earnings per share of $1.97 for the full year [1][2] Financial Performance - The net interest margin for Q4 2025 was 3.95%, an increase from 3.84% in Q3 2025 and 3.83% in Q4 2024 [4][6] - Net interest income for Q4 2025 was $19.0 million, up from $18.3 million in Q3 2025, driven by a slight increase in net accretion income and a decrease in interest expense on average interest-bearing liabilities [4][7] - Non-interest income increased by $518 thousand to $5.0 million in Q4 2025, primarily due to a recovery from an acquired loan [10][11] Asset Quality - Non-performing assets (NPAs) as a percentage of total loans improved to 0.32% on December 31, 2025, down from 0.40% on September 30, 2025, and 0.48% on December 31, 2024 [21][22] - The allowance for credit losses on loans totaled $14.7 million, or 1.02% of total loans, reflecting an increase from the previous quarter [9][34] Capital and Dividends - The Company declared a quarterly dividend of $0.17 per common share, a 9.7% increase from the previous quarter [2][23] - Tangible book value per share grew to $18.83 at December 31, 2025, from $18.26 at September 30, 2025 [23][33] Balance Sheet - Total assets were $2.039 billion as of December 31, 2025, reflecting a 0.4% increase from the previous quarter and a 1.4% increase from the previous year [15][16] - Total loans held for investment increased by $16.3 million to $1.435 billion from the previous quarter [16][18] Liquidity - Liquidity sources available to the Bank totaled $743.0 million on December 31, 2025, an increase from $676.1 million on September 30, 2025 [19][20]