First National (FXNC) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $4.9 million, with EPS of $0.54, up from $0.18 a year ago and down from $0.61 in Q4 2025.

• Loan production accelerated in March, driving loan and deposit growth for the quarter.

• Asset quality improved, with non-performing assets declining to 0.21% of total assets.

• All budgeted metrics for earnings, deposits, loans, and asset quality were exceeded.

Financial highlights

• Adjusted diluted EPS was $0.54, up from $0.35 year-over-year (adjusted for merger expenses).

• Return on average assets was 0.98% (vs. 0.32% prior year), and return on average equity was 10.51% (vs. 3.85%).

• Net interest margin (FTE) rose to 3.99% from 3.77% year-over-year.

• Net loan growth was $14.7 million (4.0% annualized); deposit growth was $37.7 million (8.4% annualized).

• Noninterest income fell $1.2 million sequentially, mainly due to a prior-period one-time loan recovery.

• Noninterest expense decreased $143 thousand sequentially, with lower merger and operating expenses.

Outlook and guidance

• Management expects late-quarter loan production to benefit future quarters and sees positive momentum for the year.