First National Corporation · NASDAQ:FXNC
First National — Investor Presentation (May 2019)
26 slides from First National's investor presentation, May 9, 2019
Slide 1: Investor Presentation May 2019
1 Investor PresentationMay 2019 Photography courtesy of Nasdaq, Inc.
Slide 2: Forward-Looking Statements
Forward-Looking Statements The Company makes forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements may include statements regarding profitability, liquidity, adequacy of capital, the allowance for loan losses, interest rate sens
Slide 3: Company Overview
Company Overview 3 Community banking since 1907FXNC listed on Nasdaq Corporate offices in Strasburg and WinchesterOperating primarily in 4 Virginia MSAs on the I-81, I-66 and I-64 corridors14 branches, 1 loan production office$775 million in assetsPersonal banking, business banking, and wealth manag
Slide 4: Why Invest in FXNC?
Why Invest in FXNC? Management team with track record of building value Delivering personal service and the latest technology Diversified markets in attractive Virginia MSAs Low-cost customer deposit relationships 4
Slide 5: Q1 2019 and Full Year 2018 Highlights
Q1 2019 and Full Year 2018 Highlights Q1 2019 Highlights (1)Return on equity of 13.47%, return on assets of 1.21% Net interest income increased $352 thousand, or 5%, to $6.9 million Net interest margin increased 18 basis points to 3.97%Nonperforming assets to total assets remained low at 0.25%2018 H
Slide 6: FXNC Nasdaq Listed on April 18, 2019
FXNC Nasdaq Listed on April 18, 2019 6 Bank Holding Company Enters National Market STRASBURG, VA, April 18, 2019 (The Northern Virginia Daily) – This morning, First National Corporation will be available on the Nasdaq Capital Market exchange. Last year, First National Corporation netted a record $10
Slide 7: First National Outperformed Major Indices
First National Outperformed Major Indices Source: S&P Market Intelligence, total return as of December 31, 2018. 7
Slide 8: Strategies to Build Shareholder Value
Strategies to Build Shareholder Value Deploy Cash and Securities into Loans Serve Vibrant Virginia Markets Maintain Low-Cost Deposit Portfolio Attract and Retain Talented Employees Accelerate Growth with Acquisitions and Team Lifts 8 Grow Assets Without Adding Significant Overhead
Slide 9: Grow Assets Without Adding Significant Overhead
Grow Assets Without Adding Significant Overhead 9 * Acquired six bank branches in April 2015. * *
Slide 10: Deploy Cash and Securities Into Loans
Deploy Cash and Securities Into Loans Source: S&P Market Intelligence. Peer median based on banks in Virginia with assets $500 million to $1 billion as of December 31, 2018.* Acquired six branches in April 2015. 10 *
Slide 11: Serve Vibrant Virginia Markets
Serve Vibrant Virginia Markets Virginia’s 2.9% unemployment rate is lower than the nation 1: Source: Virginia Employment Commission, April 20182: Source: Virginia Economic Development Partnership3: Source: S&P Market Intelligence includes Frederick, Shenandoah, Warren, Rockingham, Buckingham and Pri
Slide 12: Accelerate Growth with Acquisitions and Team Lifts
Accelerate Growth with Acquisitions and Team Lifts Acquisition Opportunities in Virginia Branch Acquisition Success Six branches acquired in 2015 including $186 million in deposits Hired Regional President and a market executive to deploy deposits into loans in Staunton - Waynesboro market area Open
Slide 13: Maintain Low Cost Deposit Portfolio
Maintain Low Cost Deposit Portfolio 13 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of December 31, 2018.Deposit portfolio composition based on December 31, 2018. 1
Slide 14: Deposits Have Been a Source of Strength
Deposits Have Been a Source of Strength 14 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of December 31, 2018. Quarterly financial information is unaudited. 1
Slide 15: Attract and Retain Talented Employees
Attract and Retain Talented Employees 15
Slide 16: Tangible Book Value Per Share and Earnings Per Share
Tangible Book Value Per Share and Earnings Per Share TBVPS Diluted EPS 16 * Acquired six branches in April 2015. *
Slide 17: Performance Metrics
Performance Metrics Return on Assets Return on Equity Efficiency Ratio * Acquired six branches in April 2015. Net Interest Margin * * * * 17
Slide 18: Diversified Revenue
Diversified Revenue 18 Dollars in millions. Noninterest income composition based on December 31, 2018.
Slide 19: Loan Portfolio and Improved Yield
Loan Portfolio and Improved Yield 19 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of December 31, 2018.Loan portfolio composition based on December 31, 2018. 1
Slide 20: Asset Quality
Asset Quality 1 Peer median ratio was based on banks in Virginia with assets $500 million to $1 billion. 20 1
Slide 21: Capital Position
Capital Position Total Risk Based Capital Tangible Common Equity Leverage Total risk based capital and leverage ratios are First Bank. Tangible common equity ratio is First National Corporation.* Acquired six branches in April 2015. * * * 21
Slide 22: Appendix
Appendix 22
Slide 23: Financial Performance
Financial Performance (dollars in thousands) At or for the year ended, except per share data 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 Balance Sheet Assets $518,165 $692,321 $716,000 $739,110 $752,969 Loans, net 371,692 433,475 480,746 516,875 537,847 Deposits 444,338 627,116 645,570 66
Slide 24: Peer Comparison
Peer Comparison 24 Source: S&P Market Intelligence. Peers defined as banks in Virginia with assets $500 million and $1 billion as of 12/31/18. Ratios are for parent companies, if applicable, except capital ratios, which are for the parent’s bank subsidiary. Data is as of and for the quarter ended De
Slide 25: Stock Profile
Stock Profile Source: S&P Market Intelligence, data as of April 23, 2019. Ticker symbol FXNC Exchange Nasdaq Market price $22.20 Common shares outstanding 4,963,487 Market capitalization $110.2 million Insider ownership 10.9% Institutional ownership 11.7% Quarterly cash dividend $0.09, dividend yiel
Slide 26: Contact
Scott Harvard, President and CEO(540) 465-6121sharvard@fbvirginia.comShane Bell, Executive VP and CFO(540) 465-6130sbell@fbvirginia.com