First National Corporation · NASDAQ:FXNC
First National — Shareholder Meeting (May 2025)
18 slides from First National's shareholder meeting presentation, May 14, 2025
Slide 1: Annual Shareholders Meeting
First'D National Corporation Annual i Shareholders Aya Meeting “ey ine" May 14, 2025 4 :) " o ® NASDAQCM: FXNC North Cacolins SS" iw
Slide 2: Disclaimer
Disclaimer CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. T
Slide 3: First National Growth History
First National Growth History Acquired and merged The Bank of Fincastle into First Acquired and merged with Bank. Touchstone Bank Created a Wealth + Added 6 branch offices in + Expand presence to 12 Management Expanded branch Listed FXNC Botetourt County additional branches in First Bank opened divi
Slide 4: Strategic Touchstone Acquisition
Strategic Touchstone Acquisition (1001/2024) r Strategically Compelling: We created a $2.0 billion bank in the Commonwealth with 33 branch locations and ~$180 million market cap Market Liquidity: Touchstone acquisition drove market cap to anticipated inclusion in the Russell 2000 and 3000 indexes Fi
Slide 5: First National Corporation Financial Snapshot
First National Corporation December 31, 2024 Financial Snapshot FirstBank® there's power in one Total Assets $2.08 Balance Gross Loans $1.5B ‘on Sheet Total Deposits $1.8B x Loans / Deposits 81.31% See Net Interest Margin 3.51% o, _ £4 amon redercaburg ~ Adjusted ROAA* 0.92% Soe Virgini: e Virginia
Slide 6: Balance Sheet Growth
Balance Sheet Growth Total Assets ($M) Loans, Net ($M) $2,010 fo $1,451 gy cAGR 184% $819 $913 $957 : U i 2020Y 2021Y 2022Y 2023Y (2024Y 2020Y 2021Y (2022Y 2023Y 2024Y Total Deposits ($M) , $1,804 5x CAGR 164 e $1,249 $1,241 2020Y 2021Y 2022Y 2023Y 2024Y 2020Y 2021Y 2022Y 2023Y 2024Y
Slide 7: Earnings & Profitability
Earnings & Profitability i em) i ity (%)" Adjusted Return on Average Assets (%) Adjusted Return on Average Equity (%)' > Adjusted ROA averaged 0.98% and Adjusted ROE tay, 157% averaged 11.93% from 2020 - through 2024 > 2023 profitability was impacted by decreasing net interest margin and Q4 provisio
Slide 8: Asset Quality Trends
Asset Quality Trends Allowance for Credit Losses on Loans / Loans (%) Nonperforming Assets / Assets (‘%) 119% 1.24% 112% 0.71% 0.81% 0.69% 0.48% 0.35% 0.30% | - [J 2020Y 2021Y 2022Y 2023Y 2024Y 2020Y 2021Y 2022Y 2023Y 2024Y
Slide 9: Focused on Delivering Superior Shareholder Returns
Focused on Delivering Superior Shareholder Returns 10 Year Shareholder Return — FXNC vs. Peers! Dividends ($) FXNC 156.3% soag 8048 $0.36 $0.20 Peers $0.14 goog $0.10 $0.12 | Fy2014 FY20I8 FY2016 FY2O17 FY2018 FY2019 FY2020 FY2021 FY202 FY2023 FY202¢ Book Value and Tangible Book Value per Share ($)
Slide 10: Investment Highlights
Investment Highlights Low-cost and stable deposit base with strong customer relationships Demonstrated ability to grow organically and through acquisition Strong credit quality and disciplined underwriting Employees that deliver powerful actions to enhance customer relationships and connect with com
Slide 11: Appendix
Appendix
Slide 12: Loan Portfolio
Loan Portfolio Ovner-occuried CRE $136,028 Commercial Commercial Real and Industrial Estate $113,074 $963,923 2023 Loans Consumer & $969M Other $12,038 Residential $344,370 Ovneroccusied CRE $245,836 Commercial Commerc Rea and indusial at $141,333, $507,397 ; 2024 Loans consumer& $1.467B Other $21,4
Slide 13: Funding Sources
Funding Sources (0, Time Deposits $192,349 Savings $182,907 PubicFunds $70,319 wee 2023 Deposits $1,234M Demand Deposits (non-nterest bearing) Demand Deposits $392,504 (interest bearing) ‘$126,890 Time Deposits $358,745 Savings $213,422 PubicFunds $73,700 Money Market i one at 2024 Deposits $1,804M
Slide 14: Earnings & Profitability
Earnings & Profitability Adjusted Net Income ($M)* Adjusted Pre-Provision Net Revenue ($M)'? $16.85 9021 $23.6 » — 2020 - Remained profitable during the pandemic $158 S180, > 2021 —Adjusted net income $13.9 . continued to increase while executing two business acquisitions > 2022 ~Eamings increased f
Slide 15: Non-Interest Income
Non-Interest Income Noninterest Income 2024Y Wealth Management Division Assets Under Management ($M) Service Charges on Deposts| Other 19% 37% Total Noninterest Income Check Card & ATM Brokered cid Mortgage 22% 2024Y Noninterest Income to Total Revenue: 24% Wealth Management Fees 2028Y - $3.1M 20247
Slide 16: Capital Ratios and Trends
Capital Ratios and Trends Tangible Common Equity / Tangible Assets (%) 8.93% 8.21% 7.99% 1.10% TA5% Bank Tier 1 Leverage Ratio (%)* 9.57% 9.31% 8.80% 8.82% 2020Y 2021Y 2022Y 2023Y 2024Y Bank Tier 4 Risk-Based Capital Ratio (%)* 2020Y 2021Y 2022Y 2023Y 2024Y = = Wel capitatzed Minimum Bank Total Risk
Slide 17: First National Corporation's Footprint
First National Corporation’s Footprint Deposit Market Share Community Banks (Less than $10B in Total Assets)* Market Branch Deposits Market. Rk. Institution Count ($000) __—_ Share (‘%) 1 Burke & Herbert Financial Services Corp. 37 3,796,570 7.14% 2 Carter Bankshares, Inc. 53 3,333,603 6.27% 3. Prim
Slide 18: Targeted Strategies to Build Shareholder Value
Targeted Strategies to Build Shareholder Value Attract and retain talented employees Deliver exceptional service to small businesses and consumers Serve vibrant Virginia and North Carolina markets Accelerate growth with acquisitions and team lifts Maintain low-cost deposit portfolio Grow assets with