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First National Corporation Reports Annual and Fourth Quarter 2023 Financial Results
STRASBURG, Va., Feb. 01, 2024 (GLOBE NEWSWIRE) -- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of
About this update from First National Corporation
[{"type":"text","content":"STRASBURG, Va., Feb. 01, 2024 (GLOBE NEWSWIRE) -- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of First Bank (the “Bank”), reported unaudited consolidated net income of $9.6 million and diluted earnings per common share of $1.53 for the year ended December 31, 2023. This compared to net income of $16.8 million and diluted earnings per common share of $2.68 for the year ended December 31, 2022. For the fourth quarter ended December 31, 2023, the Company reported unaudited consolidated net loss of $851 thousand and diluted loss per common share of $0.14. This compared to net income of $3.1 million and diluted earnings per common share of $0.50 for the third quarter of 2023, and net income of $4.8 million and diluted earnings per common share of $0.76 for the fourth quarter of 2022. The net loss for the fourth quarter of 2023 resulted from a $6.0 million provision for credit losses during the period, which was primarily the result of $2.7 million of loan charge-offs, a $2.4 million increase in specific reserves on individually impaired loans, and an $819 thousand increase in the general reserve component of the allowance for credit losses on loans. The charge-offs, increase in specific reserves, and increase in the general reserve were primarily attributable to commercial and industrial loans originated to health care professionals through a third-party lender. 2023 HIGHLIGHTS Key highlights of the year ended December 31, 2023, are as follows. Comparisons are to the prior year ended December 31, 2022, unless otherwise stated: Net income totaled $9.6 millionReturn on average assets was 0.71%Efficiency ratio (1) of 67.69%Net interest margin was 3.41%Loan portfolio increased $48.9 million, or 5%Noninterest-bearing deposits comprised 31% of total depositsTangible book value per share increased by 8% to $18.06Provision for credit losses totaled $6.2 million “While the fourth quarter financial results were disappointing, we are pleased with the company’s overall performance in 2023. After absorbing a $6.0 million provision for credit losses in the fourth quarter and the Federal Reserve raising the Federal funds rate four times during the year, the return on average assets was still a respectable 0.71% for the year and book value increased to $18.06 per share from $16.79 at the en...