First National (FXNC) Q4 2024 earnings summary

Executive summary

• Reported a net loss of $933 thousand and loss per share of $0.10 for Q4 2024; adjusted operating earnings were $6.0 million and $0.66 per share for the quarter.

• For the full year 2024, net income was $7.0 million ($1.00 per share); adjusted operating earnings were $14.6 million ($2.10 per share).

• Completed the acquisition of Touchstone Bankshares on October 1, 2024, adding $664.3 million in assets and $555.4 million in deposits.

• Fourth quarter results reflect the first period of combined operations with Touchstone, including significant merger-related costs.

Financial highlights

• Net interest income for Q4 2024 was $18.4 million, up $6.6 million sequentially, driven by the Touchstone acquisition.

• Net interest margin rose 40 bps to 3.83% in Q4 2024; earning asset yields increased to 5.30%, cost of funds decreased to 1.51%.

• Noninterest income increased $3.4 million to $6.4 million, mainly due to a $2.9 million bargain purchase gain from the acquisition.

• Noninterest expense rose $11.5 million to $21.9 million, with $7.3 million in merger-related costs.

• Total assets at year-end were $2.0 billion, up 38.6% from Q3 and 41.6% year-over-year.

Outlook and guidance

• Management expects continued benefits from the Touchstone integration, with system conversions nearing completion and full operational integration anticipated soon.