Core Insights - First National Corp., a Virginia-based bank, plans to exit North Carolina by selling its two branches and has already closed two loan production offices in the state [1][10] - The bank's decision comes as many other financial institutions are expanding their presence in the Carolinas, which are experiencing significant growth [5][10] Company Strategy - First National aims to consolidate three locations in Virginia as part of a branch-optimization program to focus resources on core markets [2][4] - The CEO emphasized that optimizing the delivery footprint will allow for better investment in technology, staff training, and community initiatives [4][12] Market Context - North Carolina is the third-fastest-growing state in the U.S., attracting interest from various banks, including megabanks and regional institutions [5][8][10] - In contrast, First National is concentrating on growth within Virginia, particularly in Richmond, where it has been adding branches and senior executives [8][10] Financial Details - First National entered North Carolina in October 2024 through the acquisition of Touchstone Bankshares, which included two branches in the state [3] - The bank expects to book a one-time gain after the sale of its North Carolina branches, which is anticipated to close in the second half of 2026 [11]