First National Corporation Reports Record Third-Quarter Net Income of $6.9 Million, Net Interest Margin Rises to 4.38%
First National Corporation (NASDAQ: FXNC), headquartered in Strasburg, Virginia, reported on October 23 consolidated net income of $6.9 million and basic and diluted earnings per common share of $0.76 for the three months ended September 30, 2026, a record performance for the quarter. For the nine months ended September 30, 2026, consolidated net income was $17.5 million, with basic and diluted earnings per share of $1.94 and $1.93. The company is the bank holding company of First Bank, a community bank that first opened for business in 1907 in Strasburg.
President and CEO Scott C. Harvard said the company was extremely pleased with its record financial performance for the quarter and the year. Organic loan growth continued in the third quarter with strong new loan production in all markets, and the improved net interest margin, excellent asset quality and expense management drove performance. The branch optimization process was completed in the third quarter as the bank closed and consolidated three banking offices and closed its off-site ATMs; in early October the company completed the sale of its two North Carolina banking offices and will book a gain in the fourth quarter.
The tax-equivalent net interest margin was 4.38% in the third quarter, up from 4.15% in the second quarter and 3.84% a year earlier; tax-equivalent net interest income was $21.3 million, up $1.2 million from the prior quarter. Return on average assets was 1.32% and return on average equity was 14.02%. The company recorded no net provision for credit losses in the third quarter, compared with $426,000 in the second quarter, and net charge-offs totaled $594,000. The allowance for credit losses on loans totaled $14.4 million, or 0.96% of total loans, at September 30. Noninterest income was $4.1 million and noninterest expense was $16.7 million.
Total assets were $2.075 billion at September 30, 2026, up 2.2% from a year earlier. Loans held for investment, net of allowance, totaled $1.486 billion, up $13.4 million in the quarter and $67.3 million from a year earlier. Total deposits were $1.829 billion, roughly stable from the prior quarter and up 1.1% from a year earlier, with noninterest-bearing deposits of $520.1 million making up 28% of deposits. Non-performing assets were $5.4 million, or 0.26% of total assets. Tangible book value per share grew to $19.94, from $19.71 at June 30 and $18.26 a year earlier. The company declared and paid cash dividends of $0.17 per common share in the third quarter.
The two North Carolina banking offices sold in early October are in Roanoke Rapids and Louisburg. Together with the three offices consolidated in the third quarter, the sales and consolidation will reduce the number of banking offices from 33 to 28 by year end, which the company said will streamline operations, improve future profitability and allocate resources to faster-growing markets. First Bank serves the Shenandoah Valley, the Roanoke Valley, the Richmond metropolitan area and south-central Virginia, and operates a wealth management division under the name First Bank Wealth Management.
Source: GSM · USA (original Chinese edition)
Photo: 弗吉尼亚州 Shenandoah 河谷自 Strasburg 附近 Signal Knob 远望，First National 总部所在地 Strasburg 位于该河谷（资料图）。美国国家公园管理局 NPS 摄，公共领域，经 Wikimedia Commons 取用 / The Shenandoah River Valley viewed from Signal Knob Overlook near Strasburg, Virginia, where First National is headquartered (file photo). Photo by the U.S. National Park Service, public domain, via Wikimedia Commons
