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First National Corporation Reports Second Quarter 2022 Financial Results
STRASBURG, Va., July 26, 2022 (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., July 26, 2022 (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 $3.8 million, or $0.61 per basic and diluted share, for the second quarter of 2022. This compares to net income of $3.3 million, or $0.69 per basic and diluted share, for the second quarter of 2021. Net income for the second quarter of 2022 included a provision for loan losses totaling $400 thousand, or $316 thousand, net of tax, and net income for the second quarter of 2021 included a recovery of loan losses totaling $1.0 million, or $790 thousand, net of tax, which impacted basic and diluted earnings per share by ($0.05) and $0.16, respectively, for the periods. On a linked quarter basis, unaudited consolidated net income increased by $106 thousand, or 3%, and basic and diluted earnings per share increased to $0.61 for the second quarter of 2022, compared to $0.60 per basic and diluted share in the first quarter of 2022. SECOND QUARTER HIGHLIGHTS Key highlights of the second quarter of 2022 are as follows. Comparisons are to the linked quarterly period ending March 31, 2022, unless otherwise stated: Loans increased $43.7 million, or 20%, annualizedNoninterest-bearing deposits increased $13.5 million, or 12%, annualizedNet interest income increased $742 thousand, or 7%, to $11.3 millionReturn on average assets was 1.08%Return on average equity was 15.04%Net interest margin improved to 3.42% from 3.19%Efficiency ratio improved to 62.69% from 64.36% “We are pleased with the Company’s second quarter loan growth and profitability,” said Scott Harvard, president and chief executive officer of First National. Harvard continued, “The Company continued to benefit from its strategic expansion initiatives last year as the loan portfolio increased by 20% annualized during the quarter and noninterest income remained at higher levels than in 2021. The efficiency ratio in the low sixties reflects the team’s focus on expense management and benefited from an improving net interest margin bolstered by deposit betas better than what we model. Although loan growth was significant in the second quarter, loan demand may begin to slow as customers become concerned about an economic slowdown caused by the Federal Reserve’s eff...