Declared Dividend • May 20
First quarter dividend of US$0.17 announced Shareholders will receive a dividend of US$0.17. Ex-date: 29th May 2026 Payment date: 12th June 2026 Dividend yield will be 2.4%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 21% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 4.5% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • May 03
First National Corporation Reports Net Charge Offs for the First Quarter Ended March 31, 2026 First National Corporation reported net charge offs for the first quarter ended March 31, 2026. For the period, the company reported net charge-offs of $542,000 compared to $2,401,000 a year ago. Reported Earnings • May 01
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: US$0.54 (up from US$0.18 in 1Q 2025). Revenue: US$22.1m (up 11% from 1Q 2025). Net income: US$4.89m (up 206% from 1Q 2025). Profit margin: 22% (up from 8.0% in 1Q 2025). The increase in margin was primarily driven by higher revenue. Revenue missed analyst estimates by 3.4%. Earnings per share (EPS) also missed analyst estimates by 2.7%. Revenue is forecast to grow 5.7% p.a. on average during the next 2 years, compared to a 8.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Announcement • Apr 04
First National Corporation, Annual General Meeting, May 13, 2026 First National Corporation, Annual General Meeting, May 13, 2026. Location: first bank operations center, 406 borden mowery drive, virginia., strasburg United States Reported Earnings • Mar 27
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: US$1.97 (up from US$1.00 in FY 2024). Revenue: US$87.0m (up 50% from FY 2024). Net income: US$17.7m (up 154% from FY 2024). Profit margin: 20% (up from 12% in FY 2024). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.88% (up from 3.51% in FY 2024). Cost-to-income ratio: 68.2% (up from 66.7% in FY 2024). Non-performing loans: 0.32% (down from 0.48% in FY 2024). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 6.1% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Declared Dividend • Feb 17
Fourth quarter dividend of US$0.17 announced Shareholders will receive a dividend of US$0.17. Ex-date: 27th February 2026 Payment date: 13th March 2026 Dividend yield will be 2.3%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (32% payout ratio) and is expected to be well covered in 3 years' time (28% forecast payout ratio). The dividend has increased by an average of 21% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 25% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Feb 13
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 17% to US$28.21. The fair value is estimated to be US$23.25, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has declined by 33%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 29% in the next 2 years. Announcement • Feb 13
First National Corporation Announces Quarterly Dividend, Payable on March 13, 2026 On February 11, 2026, the Board of Directors of the First National Corporation declared a quarterly cash dividend of $0.17 per common share, which is payable on March 13, 2026, to shareholders of record as of February 27, 2026. Price Target Changed • Feb 03
Price target increased by 26% to US$29.00 Up from US$23.00, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of US$27.74. Stock is up 10% over the past year. The company is forecast to post earnings per share of US$2.46 for next year compared to US$1.97 last year. Reported Earnings • Jan 30
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: US$1.97 (up from US$1.00 in FY 2024). Revenue: US$87.1m (up 50% from FY 2024). Net income: US$17.7m (up 154% from FY 2024). Profit margin: 20% (up from 12% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • Jan 29
First National Corporation Reports Net Charge-Off Results for the Fourth Quarter Ended December 31, 2025 First National Corporation reported net charge-off results for the fourth quarter ended December 31, 2025. For the quarter, the company reported net charge-offs totaled $651,000 against $939,000 in the third quarter of 2025 and net charge-offs of $1.3 million in the fourth quarter of 2024. Buy Or Sell Opportunity • Dec 19
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 10% to US$26.30. The fair value is estimated to be US$21.85, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.8% over the last 3 years. Earnings per share has declined by 40%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 97% in the next 2 years. Declared Dividend • Nov 17
Third quarter dividend increased to US$0.17 Dividend of US$0.17 is 9.7% higher than last year. Ex-date: 28th November 2025 Payment date: 12th December 2025 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (49% payout ratio) and is expected to be well covered in 3 years' time (26% forecast payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 58% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 14
First National Corporation Announces Increase in Quarterly Cash Dividend, Payable on December 12, 2025 First National Corporation announced its Board of Directors declared a quarterly cash dividend of $0.17 per share to shareholders of record on November 28, 2025, to be paid on December 12, 2025. This is an increase of 9.7% from the previous quarterly dividend payment of $0.155 per share. Price Target Changed • Nov 03
Price target increased by 8.0% to US$23.75 Up from US$22.00, the current price target is an average from 2 analysts. New target price is 5.6% above last closing price of US$22.48. Stock is up 5.3% over the past year. The company is forecast to post earnings per share of US$1.96 for next year compared to US$1.00 last year. Reported Earnings • Oct 31
Third quarter 2025 earnings: EPS exceeds analyst expectations Third quarter 2025 results: EPS: US$0.62 (up from US$0.36 in 3Q 2024). Revenue: US$22.3m (up 68% from 3Q 2024). Net income: US$5.55m (up 147% from 3Q 2024). Profit margin: 25% (up from 17% in 3Q 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 6.9%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 8.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Oct 31
First National Corporation Reports Net Charge-Off Results for the Third Quarter Ended September 30, 2025 First National Corporation reported net charge-off results for the third quarter ended September 30, 2025. For the quarter, the company reported net charge-offs totaled $939,000 against $1,572,000 a year ago. Declared Dividend • Aug 18
Second quarter dividend of US$0.15 announced Shareholders will receive a dividend of US$0.15. Ex-date: 29th August 2025 Payment date: 12th September 2025 Dividend yield will be 2.8%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 50% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 31
Second quarter 2025 earnings released: EPS: US$0.56 (vs US$0.39 in 2Q 2024) Second quarter 2025 results: EPS: US$0.56 (up from US$0.39 in 2Q 2024). Revenue: US$21.5m (up 56% from 2Q 2024). Net income: US$5.05m (up 107% from 2Q 2024). Profit margin: 24% (up from 18% in 2Q 2024). Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 7.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Jul 31
First National Corporation Reports Unaudited Net Charge Offs Results for the Second Quarter Ended June 30, 2025 First National Corporation reported unaudited net charge offs results for the second quarter ended June 30, 2025. For the quarter, the company reported net charge-offs of $448,000 against $482,000 a year ago. Declared Dividend • May 18
First quarter dividend of US$0.15 announced Shareholders will receive a dividend of US$0.15. Ex-date: 30th May 2025 Payment date: 13th June 2025 Dividend yield will be 2.9%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 57% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • May 15
First National Corporation Declares Quarterly Cash Dividend, Payable on June 13, 2025 On May 14, 2024, First National Corporation Board of Directors of the Company declared a quarterly cash dividend of $0.155 per common share, which is payable on June 13, 2025, to shareholders of record as of May 30, 2025. Reported Earnings • May 02
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: EPS: US$0.18 (down from US$0.51 in 1Q 2024). Revenue: US$20.2m (up 46% from 1Q 2024). Net income: US$1.60m (down 50% from 1Q 2024). Profit margin: 7.9% (down from 23% in 1Q 2024). Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 66%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • May 02
First National Corporation Reports Net Charge-Offs for the First Quarter Ended March 31, 2025 First National Corporation reported net charge-offs for the first quarter ended March 31, 2025. For the period, the company reported net charge-offs totaled $2.4 million in the first quarter of 2025, compared to $1.3 million in the fourth quarter of 2024, and $362,000 in the first quarter of 2024. Price Target Changed • May 01
Price target decreased by 8.7% to US$23.50 Down from US$25.75, the current price target is an average from 2 analysts. New target price is 21% above last closing price of US$19.36. Stock is up 27% over the past year. The company is forecast to post earnings per share of US$1.78 for next year compared to US$1.00 last year. Price Target Changed • Apr 08
Price target decreased by 11% to US$24.00 Down from US$27.00, the current price target is an average from 2 analysts. New target price is 25% above last closing price of US$19.18. Stock is up 20% over the past year. The company is forecast to post earnings per share of US$2.22 for next year compared to US$1.00 last year. Announcement • Apr 04
First National Corporation, Annual General Meeting, May 14, 2025 First National Corporation, Annual General Meeting, May 14, 2025. Location: 406 borden mowery drive, virginia., strasburg United States Announcement • Feb 18
First National Corporation Appoints Joe Shearin, President, Greater Richmond Market First National Corporation announced the addition of Joe Shearin as President, Greater Richmond Market. Joe will lead First Bank’s strategic efforts across Richmond, Southside Virginia, and northern North Carolina. He will be responsible for community impact and all lines of business banking and business development in the expanded footprint, following the 2024 merger with Touchstone Bank.
Joe brings over 40 years of banking experience and is retired President and CEO of Sonabank/Southern National Bancorp (formerly EVB/Eastern Virginia Bankshares). During Joe’s tenure as President and CEO of Sonabank, he successfully led the company through major economic conditions, while growing the bank from approximately $500 million in assets to over $3.4 billion when he retired.
Joe was appointed in 2023 by Governor Glen Youngkin as the Executive Director of the Small Business Financing Authority (VSBFA). The VSBFA is dedicated to providing essential financing programs that support businesses, not-for-profits, and economic development authorities with the financing necessary for economic growth and expansion throughout the Commonwealth. In addition, Joe is the Founder and CEO of Jamescrest Consulting Group, whose mission is to assist organizations develop strategies to help improve their efficiencies, productivity, and profitability. A graduate, and now trustee, of North Carolina Wesleyan University, Joe has served as board member for Infinex Financial Services, Virginia Bankers Association, and director and previous chairman of Virginia Association of Community Banks. Currently he is director and Chairman of the Board for Community Bankers Bank. Joe is very active in the community, serving with many non-profit organizations. Declared Dividend • Feb 17
Fourth quarter dividend of US$0.15 announced Shareholders will receive a dividend of US$0.15. Ex-date: 28th February 2025 Payment date: 14th March 2025 Dividend yield will be 2.3%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (60% payout ratio) and is expected to be covered in 3 years' time (26% forecast payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 91% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 15
First National Corporation Declares Quarterly Cash Dividend, Payable on March 14, 2025 On February 12, 2025, the Board of Directors of First National Corporation declared a quarterly cash dividend of $0.155 per common share, which is payable on March 14, 2025 to shareholders of record as of February 28, 2025. Reported Earnings • Feb 07
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: US$1.00 (down from US$1.54 in FY 2023). Revenue: US$58.0m (up 18% from FY 2023). Net income: US$6.97m (down 28% from FY 2023). Profit margin: 12% (down from 20% in FY 2023). Net interest margin (NIM): 3.51% (up from 3.41% in FY 2023). Cost-to-income ratio: 66.7% (down from 67.7% in FY 2023). Non-performing loans: 0.48% (down from 0.70% in FY 2023). Revenue exceeded analyst estimates by 5.2%. Earnings per share (EPS) also surpassed analyst estimates by 45%. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. New Risk • Jan 15
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 43% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (43% increase in shares outstanding). Minor Risk Profit margins are more than 30% lower than last year (14% net profit margin). New Risk • Nov 24
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 43% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (14% net profit margin). Shareholders have been diluted in the past year (43% increase in shares outstanding). Price Target Changed • Nov 20
Price target increased by 7.3% to US$25.75 Up from US$24.00, the current price target is an average from 2 analysts. New target price is 11% above last closing price of US$23.10. Stock is up 25% over the past year. The company is forecast to post earnings per share of US$1.22 for next year compared to US$1.54 last year. Declared Dividend • Nov 18
Third quarter dividend increased to US$0.15 Dividend of US$0.15 is 3.3% higher than last year. Ex-date: 29th November 2024 Payment date: 13th December 2024 Dividend yield will be 2.6%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (53% payout ratio) and is expected to be covered in 3 years' time (25% forecast payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 123% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 16
First National Corporation Announces Increase in Quarterly Cash Dividend, Payable on December 13, 2024 The Board of Directors of First National Corporation declared a quarterly cash dividend of $0.155 per share on November 13, 2024, a 3% increase compared to the quarterly dividend paid on September 13, 2024. This is the tenth consecutive year the Company has increased its dividend to shareholders. The dividend is payable on December 13, 2024, to shareholders of record as of November 29, 2024. Reported Earnings • Nov 07
Third quarter 2024 earnings released: EPS: US$0.36 (vs US$0.50 in 3Q 2023) Third quarter 2024 results: EPS: US$0.36 (down from US$0.50 in 3Q 2023). Revenue: US$13.3m (down 2.8% from 3Q 2023). Net income: US$2.25m (down 28% from 3Q 2023). Profit margin: 17% (down from 23% in 3Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Declared Dividend • Aug 19
Second quarter dividend of US$0.15 announced Dividend of US$0.15 is the same as last year. Ex-date: 30th August 2024 Payment date: 13th September 2024 Dividend yield will be 3.6%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 33% over the next year, which should provide support to the dividend and adequate earnings cover. Price Target Changed • Aug 02
Price target increased by 14% to US$21.00 Up from US$18.50, the current price target is provided by 1 analyst. New target price is 19% above last closing price of US$17.62. Stock is up 5.0% over the past year. The company is forecast to post earnings per share of US$1.88 for next year compared to US$1.54 last year. Announcement • Jul 31
First National Corporation Reports Net Charge-Offs for the Second Quarter Ended June 30, 2024 First National Corporation reported net charge-offs for the second quarter ended June 30, 2024. Net charge-offs totaled $482,000 for the second quarter of 2024. Recent Insider Transactions • Jul 07
Independent Director recently bought US$117k worth of stock On the 3rd of July, Kirtesh Patel bought around 8k shares on-market at roughly US$15.56 per share. This transaction amounted to 34% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$916k more in shares than they have sold in the last 12 months. Recent Insider Transactions • Jun 13
Independent Director recently bought US$54k worth of stock On the 11th of June, James Wilkins bought around 4k shares on-market at roughly US$15.41 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$64k. Insiders have collectively bought US$736k more in shares than they have sold in the last 12 months. Declared Dividend • May 13
First quarter dividend of US$0.15 announced Dividend of US$0.15 is the same as last year. Ex-date: 23rd May 2024 Payment date: 7th June 2024 Dividend yield will be 3.9%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 23% over the next year, which should provide support to the dividend and adequate earnings cover. Recent Insider Transactions • May 03
Independent Director recently bought US$64k worth of stock On the 2nd of May, James Wilkins bought around 4k shares on-market at roughly US$15.01 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$948k more in shares than they have sold in the last 12 months. Announcement • May 03
First National Corporation Reports Net Charge-Offs for the First Quarter Ended March 31, 2024 First National Corporation reported net charge-offs for the first quarter ended March 31, 2024. For the quarter, the company reported net charge-offs of $362,000 against $916,000 reported a year ago. Reported Earnings • May 01
First quarter 2024 earnings released: EPS: US$0.51 (vs US$0.61 in 1Q 2023) First quarter 2024 results: EPS: US$0.51 (down from US$0.61 in 1Q 2023). Revenue: US$13.8m (flat on 1Q 2023). Net income: US$3.21m (down 17% from 1Q 2023). Profit margin: 23% (down from 28% in 1Q 2023). Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 7% per year, which means it is performing significantly worse than earnings. New Risk • Apr 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: US$95.1m This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (20% net profit margin). Market cap is less than US$100m (US$95.1m market cap). Announcement • Mar 30
First National Corporation, Annual General Meeting, May 08, 2024 First National Corporation, Annual General Meeting, May 08, 2024, at 10:00 US Eastern Standard Time. Location: First Bank Operations Center, 406 Borden Mowery Drive Strasburg Virginia United States Agenda: To elect ten directors, each for a term of one year; to ratify the appointment of Yount, Hyde & Barbour, P.C. as independent registered public accounting firm for the year ending December 31, 2024; and to transact such other business as may properly come before the Annual Meeting. Management is not aware of any other business, other than procedural matters incident to the conduct of the Annual Meeting. Price Target Changed • Mar 29
Price target decreased by 12% to US$18.50 Down from US$21.00, the current price target is provided by 1 analyst. New target price is 14% above last closing price of US$16.26. Stock is up 2.8% over the past year. The company is forecast to post earnings per share of US$1.79 for next year compared to US$1.54 last year. Announcement • Mar 28
First National Corporation (NasdaqCM:FXNC) entered into a definitive merger agreement to acquire Touchstone Bankshares, Inc. (OTCPK:TSBA) for $46.9 million. First National Corporation (NasdaqCM:FXNC) entered into a definitive merger agreement to acquire Touchstone Bankshares, Inc. (OTCPK:TSBA) for $46.9 million on March 25, 2024. Under the terms of the agreement, Touchstone shareholders will receive 0.8122 shares of First National stock for each share of Touchstone stock, which equates to an aggregate deal value of approximately $47.0 million, or $14.25 per share of Touchstone stock. The total assets of combined company are expected to be approximately $2.1 billion, with $1.5 billion in loans, $1.8 billion in deposits, thirty branch offices across Virginia and two branches in North Carolina. Touchstone needs to pay termination fee equals $1.9 million. First National and First Bank will appoint three Touchstone directors to join the existing nine legacy directors on each respective Board. James Black, the President and Chief Executive Officer of Touchstone, will join First Bank as Executive Vice President and South Region President. The transaction is subject to approval of both companies’ shareholders, regulatory approvals, and other customary closing conditions and expected to close in the fourth quarter of 2024. The merger agreement has been unanimously approved by the boards of directors of each company. First National expects the transaction to be approximately 36% accretive to earnings per share with an estimated earn-back period for tangible book value dilution of approximately 3.0 years. Hovde Group, LLC served as financial advisor to First National. Benjamin A. Barnhill of Nelson Mullins Riley & Scarborough, LLP provided legal counsel to First National. Scott Clark, Avi J. Barak of Piper Sandler & Co. served as financial advisor to Touchstone. Scott Richter and Benjamin McCall of Williams Mullen served as legal counsel to Touchstone. Piper Sandler & Co. acted as fairness opinion provider to Touchstone. Declared Dividend • Feb 22
Fourth quarter dividend of US$0.15 announced Dividend of US$0.15 is the same as last year. Ex-date: 29th February 2024 Payment date: 15th March 2024 Dividend yield will be 3.3%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (39% payout ratio) and is expected to be well covered in 3 years' time (33% forecast payout ratio). The dividend has increased by an average of 20% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 17% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 08
Full year 2023 earnings released: EPS: US$1.54 (vs US$2.69 in FY 2022) Full year 2023 results: EPS: US$1.54 (down from US$2.69 in FY 2022). Revenue: US$49.0m (down 13% from FY 2022). Net income: US$9.62m (down 43% from FY 2022). Profit margin: 20% (down from 30% in FY 2022). Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 2% per year. Price Target Changed • Feb 07
Price target increased by 17% to US$21.00 Up from US$18.00, the current price target is provided by 1 analyst. New target price is 8.8% above last closing price of US$19.30. Stock is up 10% over the past year. The company is forecast to post earnings per share of US$2.15 for next year compared to US$2.69 last year. Announcement • Feb 03
First National Corporation Reports Net Charge Offs for the Fourth Quarter Ended December 31, 2023 First National Corporation reported net charge offs for the fourth quarter ended December 31, 2023. For the quarter, the company expects Net charge offs of $2,673,000 against $114,000 a year ago. Board Change • Feb 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 3 experienced directors. 6 highly experienced directors. Independent Director Ed Holt was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Nov 15
Upcoming dividend of US$0.15 per share at 3.2% yield Eligible shareholders must have bought the stock before 22 November 2023. Payment date: 08 December 2023. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of American dividend payers (5.3%). Lower than average of industry peers (3.9%). Announcement • Nov 12
First National Corporation Declares Quarterly Cash Dividend, Payable on December 8, 2023 On November 8, 2023, the Board of Directors of First National Corporation declared a quarterly cash dividend of $0.15 per common share, which is payable on December 8, 2023 to shareholders of record as of November 24, 2023. New Risk • Oct 31
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 22% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 22% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Oct 29
Third quarter 2023 earnings released: EPS: US$0.50 (vs US$0.71 in 3Q 2022) Third quarter 2023 results: EPS: US$0.50 (down from US$0.71 in 3Q 2022). Revenue: US$13.6m (down 6.3% from 3Q 2022). Net income: US$3.12m (down 30% from 3Q 2022). Profit margin: 23% (down from 31% in 3Q 2022). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 10% per year. Announcement • Oct 27
First National Corporation Reports Net Charge-Offs for the Third Quarter Ended September 30, 2023 First National Corporation reported net charge-offs for the third quarter ended September 30, 2023. For the quarter, the company reported net charge-offs totaled $83,000. Valuation Update With 7 Day Price Move • Sep 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$16.09, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 9x in the Banks industry in the US. Total returns to shareholders of 25% over the past three years. Upcoming Dividend • Aug 17
Upcoming dividend of US$0.15 per share at 3.5% yield Eligible shareholders must have bought the stock before 24 August 2023. Payment date: 08 September 2023. Payout ratio is a comfortable 22% and this is well supported by cash flows. Trailing yield: 3.5%. Lower than top quartile of American dividend payers (4.8%). In line with average of industry peers (3.6%). Announcement • Aug 12
First National Corporation Announces Quarterly Cash Dividend, Payable on September 8, 2023 First National Corporation announced that on August 9, 2023, the Board of Directors of the Company declared a quarterly cash dividend of $0.15 per common share, which is payable on September 8, 2023 to shareholders of record as of August 25, 2023. Reported Earnings • Jul 29
Second quarter 2023 earnings released: EPS: US$0.56 (vs US$0.61 in 2Q 2022) Second quarter 2023 results: EPS: US$0.56 (down from US$0.61 in 2Q 2022). Revenue: US$13.5m (down 1.0% from 2Q 2022). Net income: US$3.51m (down 8.6% from 2Q 2022). Profit margin: 26% (down from 28% in 2Q 2022). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 18
Upcoming dividend of US$0.15 per share at 4.0% yield Eligible shareholders must have bought the stock before 25 May 2023. Payment date: 09 June 2023. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 4.0%. Lower than top quartile of American dividend payers (5.2%). In line with average of industry peers (3.9%). Reported Earnings • Apr 02
Full year 2022 earnings released: EPS: US$2.69 (vs US$1.87 in FY 2021) Full year 2022 results: EPS: US$2.69 (up from US$1.87 in FY 2021). Revenue: US$56.3m (up 23% from FY 2021). Net income: US$16.8m (up 62% from FY 2021). Profit margin: 30% (up from 23% in FY 2021). The increase in margin was driven by higher revenue. Non-performing loans: 0.29% (up from 0.28% in FY 2021). Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Feb 15
First National Corporation Announces Quarterly Cash Dividend, Payable on March 10, 2023 The Board of Directors of First National Corporation declared a quarterly cash dividend of $0.15 per share on February 8, 2023. This was a 7% increase compared to the quarterly dividend paid on December 16, 2022. The dividend is payable on March 10, 2023, to shareholders of record as of February 24, 2023. Announcement • Jan 28
First National Corporation Reports Net Charge Offs for the Fourth Quarter Ended December 31, 2022 First National Corporation reported net charge offs for the fourth quarter ended December 31, 2022. For the quarter, the company reported net charge offs of $95,000 compared to $74,000 for the fourth quarter of 2021. Reported Earnings • Jan 26
Full year 2022 earnings released: EPS: US$2.68 (vs US$1.87 in FY 2021) Full year 2022 results: EPS: US$2.68 (up from US$1.87 in FY 2021). Revenue: US$56.4m (up 23% from FY 2021). Net income: US$16.8m (up 62% from FY 2021). Profit margin: 30% (up from 23% in FY 2021). The increase in margin was driven by higher revenue. Announcement • Nov 22
First National Corporation Declares Quarterly Cash Dividend, Payable on December 16, 2022 On November 16, 2022, the Board of Directors of the First National Corporation declared a quarterly cash dividend of $0.14 per common share, which is payable on December 16, 2022 to shareholders of record as of December 2, 2022. Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment improved over the past week After last week's 19% share price gain to US$17.00, the stock trades at a trailing P/E ratio of 7.5x. Average trailing P/E is 10x in the Banks industry in the US. Total loss to shareholders of 6.9% over the past three years. Announcement • Oct 27
First National Corporation Announces Unaudited Net Charge Offs for the Quarter Ended September 30, 2022 First National Corporation announced unaudited net charge offs for the quarter ended September 30, 2022. For the quarter, the company reported Net charge-offs of $111,000. Reported Earnings • Oct 26
Third quarter 2022 earnings released: EPS: US$0.71 (vs US$0.39 in 3Q 2021) Third quarter 2022 results: EPS: US$0.71 (up from US$0.39 in 3Q 2021). Revenue: US$14.6m (up 18% from 3Q 2021). Net income: US$4.45m (up 86% from 3Q 2021). Profit margin: 31% (up from 19% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Aug 17
First National Corporation Declares Quarterly Cash Dividend, Payable on September 9, 2022 On August 10, 2022, the Board of Directors of First National Corporation declared a quarterly cash dividend of $0.14 per common share, which is payable on September 9, 2022 to shareholders of record as of August 26, 2022. Reported Earnings • Jul 27
Second quarter 2022 earnings released: EPS: US$0.61 (vs US$0.69 in 2Q 2021) Second quarter 2022 results: EPS: US$0.61. Revenue: US$13.7m (up 25% from 2Q 2021). Net income: US$3.84m (up 15% from 2Q 2021). Profit margin: 28% (down from 31% in 2Q 2021). The decrease in margin was driven by higher expenses. Recent Insider Transactions • Jun 29
Independent Director recently bought US$94k worth of stock On the 27th of June, Kirtesh Patel bought around 5k shares on-market at roughly US$17.99 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$49k more in shares than they have sold in the last 12 months.