First National (FXNC) Q4 2025 earnings summary

Executive summary

• Achieved record net income of $5.5 million for Q4 2025 and $17.7 million for the full year, with adjusted operating earnings of $19.1 million for 2025.

• EPS for Q4 was $0.61 (basic/diluted); full-year EPS was $1.97 (basic) and $1.96 (diluted), with adjusted EPS of $2.13 (basic) and $2.12 (diluted).

• Integration of Touchstone operations and focus on customer retention supported net loan growth and improved shareholder returns.

• Quarterly dividend increased 9.7% in Q4; tangible book value per share grew 14% year-over-year.

Financial highlights

• Q4 net interest income was $19.0 million, up $657 thousand from Q3 due to higher accretion income and lower interest expense.

• Q4 noninterest income rose $518 thousand to $5.0 million, driven by an $895 thousand loan recovery.

• Q4 noninterest expense increased $343 thousand to $16.1 million, with a one-time $127 thousand lease termination expense.

• Q4 provision for credit losses was $951 thousand, up from $193 thousand in Q3.

• Net charge-offs in Q4 were $651 thousand, down from $939 thousand in Q3 and $1.33 million in Q4 2024.

Outlook and guidance

• Management is reviewing office footprint to improve operating leverage and expects capital redemptions to enhance future profitability.