First National Corporation · NASDAQ:FXNC
First National — Investor Presentation (January 2019)
24 slides from First National's investor presentation, Jan 30, 2019
Slide 1: Investor Presentation 3rd Quarter 2018
Investor Presentation 3rd Quarter 2018
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 1907Ticker Symbol: FXNC (OTC Pink)Corporate offices in Strasburg and WinchesterOperating primarily in 4 Virginia MSAs on the I-81, I-66 and I-64 corridors$746 million in assets$540 million in loans$667 million in deposits15 branches, 1 LPOPersonal banking,
Slide 4: First National Outperformed Major Indices
First National Outperformed Major Indices Source: S&P Market Intelligence, as of September 30, 2018. 4
Slide 5: 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 5 Grow Assets Without Adding Significant Overhead
Slide 6: Grow Assets Without Adding Significant Overhead
Grow Assets Without Adding Significant Overhead 6 * Acquired six bank branches in April 2015.Quarterly financial information is unaudited. * *
Slide 7: 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 September 30, 2018.Quarterly financial information is unaudited.* Acquired six branches in April 2015. 7 *
Slide 8: 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 9: Accelerate Growth with Acquisitions
Accelerate Growth with Acquisitions 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 Opened Loan Product
Slide 10: Maintain Low Cost Deposit Portfolio
Maintain Low Cost Deposit Portfolio 10 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of September 30, 2018. Quarterly financial information is unaudited.
Slide 11: Deposits Provided a Source of Strength
Deposits Provided a Source of Strength 11 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of September 30, 2018. Quarterly financial information is unaudited. 1
Slide 12: Attract and Retain Talented Employees
Attract and Retain Talented Employees 12
Slide 13: Tangible Book Value Per Share and Earnings Per Share
Tangible Book Value Per Share and Earnings Per Share TBVPS EPS 13 * Acquired six branches in April 2015.Quarterly financial information is unaudited.
Slide 14: Performance Metrics
Performance Metrics Return on Assets Return on Equity Efficiency Ratio * Acquired six branches in April 2015. Quarterly financial information is unaudited. Net Interest Margin * * * * 14
Slide 15: Diversified Revenue
Diversified Revenue 15 Dollars in millions. Quarterly financial information is unaudited.Noninterest income composition based on YTD 3Q18.
Slide 16: Loan Portfolio and Improved Yield
Loan Portfolio and Improved Yield 16 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of September 30, 2018. Quarterly financial information is unaudited. 1
Slide 17: Asset Quality
Asset Quality 1 Peer median ratio was based on banks in Virginia with assets $500 million to $1 billion. Quarterly financial information is unaudited. 17 1
Slide 18: Capital Position
Capital Position Total Risk Based Capital Tangible Common Equity Leverage Total risk based capital and leverage ratio are First Bank. Tangible common equity is First National Corporation.* Acquired six branches in April 2015. * * * 18
Slide 19: Investment Thesis
Investment Thesis First National is among the most profitable banking companies headquartered in Virginia by ROA and ROEStrong liquidity and a low cost deposit portfolio has been a source of strength Branch offices primarily are located in 4 Virginia MSAs, with recent entry into Richmond, the third
Slide 20: Appendix
Appendix 20
Slide 21: 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 9/30/18 YTD Balance Sheet Assets $518,165 $692,321 $716,000 $739,110 $746,454 Loans, net 371,692 433,475 480,746 516,875 535,020 Deposits 444,338 627,116 645,570 6
Slide 22: Peer Comparison
Peer Comparison 22 Source: S&P Market Intelligence. Peers defined as banks in Virginia with assets $500 million and $1 billion as of 9/30/18. Ratios are for parent companies, if applicable, except capital ratios, which are for the parent’s bank subsidiary. Data is most recent quarter. Return on Asse
Slide 23: Stock Profile
Stock Profile Source: S&P Market Intelligence, data as of September 30, 2018. Ticker symbol FXNC Exchange OTC Market price $21.50 Common shares outstanding 4,946,925 Market capitalization $106.4 million Insider ownership 15.8% Institutional ownership 9.2% Quarterly cash dividend $0.05, dividend yiel
Slide 24: Scott Harvard, President and CEO(540) 465-6121sharvard@fbvirginia.comShane Bell, Executive VP and CFO(540) 465-6130sb…
Scott Harvard, President and CEO(540) 465-6121sharvard@fbvirginia.comShane Bell, Executive VP and CFO(540) 465-6130sbell@fbvirginia.com
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