First National Corporation reported strong financial performance in Q3 2024 after acquiring Touchstone Bankshares, Inc.

From GlobeNewswire: 2024-11-01 16:00:00

First National Corporation reported unaudited consolidated net income of $2.2 million and basic and diluted earnings per common share of $0.36 for the third quarter of 2024. Adjusted net income was $2.4 million with adjusted basic and diluted earnings per common share of $0.39. Return on average assets was 0.62% and return on average equity was 7.28%. Noninterest-bearing deposits represented 31% of total deposits.

Key highlights for the third quarter include an increase in net interest margin to 3.43%, a 2% increase in loan balances, 19% increase in noninterest income, and adjusted ROA and ROE of 0.67% and 7.93% respectively. Tangible book value per share increased to $19.37.

First National completed the acquisition of Touchstone Bankshares, Inc., with each outstanding share receiving 0.8122 shares of First National’s common stock. The merger added approximately $2.1 billion in assets, $1.5 billion in loans, and $1.8 billion in deposits. The company incurred pre-tax merger costs of $219 thousand in the third quarter.

Net interest income increased by $255 thousand to $11.7 million for the third quarter of 2024, with a net interest margin of 3.43%. Total interest income increased by $389 thousand, primarily from interest and fees on loans. Total deposits decreased by approximately 4% from the previous quarter.

Noninterest income totaled $3.2 million, a 19% increase from the second quarter, driven by higher ATM and check card fees and wealth management fees. Noninterest expense decreased by $200 thousand, primarily due to lower legal and professional fees related to the merger.

Asset quality remained stable, with loans past due greater than 30 days at 0.24% and NPAs at 0.41% of total assets. Net charge-offs totaled $1.6 million for the third quarter. The provision for credit losses was $1.7 million, primarily driven by commercial and industrial loans.

The company declared and paid cash dividends of $0.15 per common share for the third quarter, consistent with previous quarters. First National uses certain non-GAAP financial measures like adjusted net income, adjusted ROA and ROE, and tangible book value per share to provide additional insight into its financial performance.



Read more at GlobeNewswire:: First National Corporation Reports Third Quarter 2024