First National Corporation · NASDAQ:FXNC
First National — Shareholder Meeting (May 2026)
20 slides from First National's shareholder meeting presentation, May 13, 2026
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 13, 2026 NASDAQCM: FXNC 1
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: Vision
Vision To be a leading independent banking company in Virginia that is known for being big enough to deliver competitive financial services and small enough to care about our customers and our communities. there’s power in one® Large enough to offer everything you desire. Small enough to know you by
Slide 4: Introduction
Introduction • Since 1907 • 2 pandemics, 2 world wars, 2 great depressions • Degree in banking from the Great Recession • Credit discipline, enterprise risk management, capital • Consistent Strategy • Trusted advisors to small business, non-profits, communities • Organic growth generates 10% plus RO
Slide 5: 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 6: Overview of First National Corporation
Overview of First National Corporation Q1 2026 YTD Financial Snapshot Total Assets $2.08 B Balance Gross Loans $1.45 B Sheet Total Deposits $1.84 B Loans / Deposits 79.7% Net Interest Margin 3.99% ROAA 0.98% Profitability ROAE 10.51% Efficiency Ratio 68.86% TCE / TA2,3 8.39% Regulatory Tier 1 Levera
Slide 7: Focus on Superior Shareholder Returns
Focus on Superior Shareholder Returns 10 Year Shareholder Return of 158% vs. 60% ABAQ1 Dividends ($) $0.635 $0.60 $0.61 $0.56 $0.48 $0.44 $0.36 $0.20 $0.12 $0.14 $0.10 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Book Value and Tangible Book Value per Share ($) $20.63 $20.86 $18.79$18.28 $
Slide 8: Balance Sheet Growth
Balance Sheet Growth Total Assets ($M) Loans, Net ($M) $2,010 $2,038 $2,076 $1,451 $1,435 $1,450 $1,389 $1,369 $1,419 $913 $957 $819 $951 $622 2020 2021 2022 2023 2024 2025 2026Q1 2020 2021 2022 2023 2024 2025 2026Q1 Common Equity Tier 1 Capital ($M)1 Total Deposits ($M) $165 $186 $190 $1,804 $1,803
Slide 9: Improving Operating Leverage
Improving Operating Leverage FTEs (#)1 313 Adjusted PPNR / Employee2,3 ($) Operating Expense / Avg. Assets (%) $105,137 3.6% 2.8% 156 $46,667 2014 2025 2026 2014 2025 2026 2014 2026 2025 The number of FTEs increased from 156 in 2014 to 313 in 2025 Adjusted PPNR per employee improved from $47k to
Slide 10: Non-Interest Income
Non-Interest Income Noninterest Income 2025 Wealth Management Division Assets Under Management ($M) $470.7 $477.8 $452.8 $457.2 Service Charges on Brokered Other Deposits $400.0 Mortgage $381.0 11% 23% 4% BOLI Income 7% Other Customer Service Fees Total Noninterest 7% Income $17.0M Wealth 2021 2022
Slide 11: Capital Ratios and Trends – Bank Level
Capital Ratios and Trends – Bank Level Tangible Common Equity / Tangible Assets (%)1 Bank Tier 1 Leverage Ratio (%)2 8.21% 8.40% 8.55% 9.57% 7.70% 7.99% 9.31% 9.13% 9.17% 7.46% 8.82% 7.95% 2021 2022 2023 2024 2025 2026Q1 2021 2022 2023 2024 2025 2026Q1 Well Capitalized Minimum Bank Tier 1 Risk-Based
Slide 12: Earnings & Profitability
Earnings & Profitability Adjusted Net Income ($M)1 Adjusted Pre-Provision Net Revenue ($M)2 2021 – Adjusted net income continued to increase while $16.85 $19.14 $26.7 executing two business $14.62 $24.0 acquisitions $22.7 $13.14 $15.8 $18.0 2022 – Earnings increased $9.62 from balance sheet and
Slide 13: Profitability Ratios
Profitability Ratios Adjusted Return on Average Assets (%)1 Adjusted Return on Average Equity (%)1 Adjusted ROA averaged 0.98% and Adjusted ROE averaged 11.94% from 2021 1.20% 15.92% through 2025 1.11% 0.92% 0.94% 0.98% 13.06% 2023 profitability was 11.19% 10.92% 10.50% impacted by decreasing ne
Slide 14: Loan and Deposit Composition
Loan and Deposit Composition Owner- Commercial Real Estate occupied Loan Yield CRE $495,237 $201,741 Commercial 5.90% 5.83% and Industrial 5.78% Total Loans $117,944 $1.45B Consumer 5.26% & Other… 4.78% Construction/ 4.61% Development $88,424 Residential $527,283 2021 2022 2023 2024 2025 2026Q1 Time
Slide 15: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio NOO - MultiFam 8% NOO - Office ($000) Non-Owner Occupied CRE by Property Type 5% Total Outstanding % of Portfolio NOO - Retail Multifamily $ 122,726,872 8.5% 5% Office Buildings 76,992,576 5.3% All Other Loans NOO - Industrial Retail 70,023,962 4.8% 38% 4% Industrial
Slide 16: Asset Quality Trends
Asset Quality Trends Nonperforming Assets / Assets (%) Allowance for Credit Losses on Loans / Loans (%) 1.24% 0.71% 1.19% 1.05% 1.02% 1.00% 0.48% 0.81% 0.69% 0.35% 0.33% 0.30% 0.21% 0.21% 2020 2021 2022 2023 2024 2025 2026Q1 2020 2021 2022 2023 2024 2025 2026Q1 Certain calculations are Non-GAAP, ref
Slide 17: Branch Optimization
Branch Optimization • Goal to improve profitability and focus on growth markets of Richmond and Roanoke • Reduce branches from 33 to 28, LPOs from 3 to 1 • Strategic divestiture of North Carolina/Touchstone offices • Two NC retail locations – $47 million deposits/$19 million loans • Closing of Wake
Slide 18: Courthouse Landing – Chesterfield/Richmond MSA
Courthouse Landing – Chesterfield/Richmond MSA Construction to begin late Q2-2026 with planned opening late 2026 18
Slide 19: Investment Highlights
Investment Highlights Low-cost and stable deposit base with strong customer relationships Demonstrated ability to grow organically and through acquisitions Strong credit quality and disciplined underwriting Employees that deliver powerful actions to enhance customer relationships and connect with co
Slide 20: fbvirginia.com
NASDAQCM: FXNC 112 W. King Street Strasburg, VA 22657 Investor Relations Contacts Scott C. Harvard, CEO Brad E. Schwartz, CFO (540) 465-6121 (540) 465-6130 fbvirginia.com