First National (FXNC) investor relations material

Executive summary

• Net income rose to $5.6 million ($0.62 per diluted share) for Q3 2025, up from $2.2 million ($0.36 per share) in Q3 2024, driven by the Touchstone acquisition and higher net interest income after provision.

• Achieved record net income of $5.55 million for Q3 2025, with EPS of $0.62, up 11% sequentially and 72% year-over-year.

• For the nine months ended September 30, 2025, net income increased to $12.2 million ($1.35 per diluted share) from $7.9 million ($1.26 per share) year-over-year.

• Return on average assets was 1.09% for Q3 2025 and 0.81% for the nine months, with return on average equity at 12.43% and 9.47%, respectively.

• The Touchstone Bankshares acquisition expanded the branch network, contributed to growth in assets, deposits, and operating expenses, and integration continues to drive growth despite muted organic loan growth.

Financial highlights

• Net interest income for Q3 2025 increased by $6.5 million (55.7%) to $18.3 million year-over-year; for the nine months, it rose by $20.2 million (59.3%) to $54.3 million.

• Noninterest income for Q3 2025 was $4.5 million, up $1.3 million (40.5%) year-over-year and $611 thousand from the prior quarter, including a $304 thousand bargain purchase gain.

• Noninterest expense for Q3 2025 was $15.8 million, up $5.3 million (50.9%) year-over-year, mainly from higher salaries, benefits, and occupancy costs.

• Net interest margin (FTE) was 3.84% for Q3 2025, up from 3.43% in Q3 2024 but down from 3.95% in Q2 2025.

• Efficiency ratio was 67.97% for Q3 2025 and 69.46% for the nine months.

Outlook and guidance

• Management expects improved profitability from recent subordinated debt redemptions and continued benefits from the Touchstone integration.

• Additional experienced bankers have been added in key markets to support future loan growth.

• Capital and liquidity levels remain strong, supporting future growth and regulatory compliance.