First National Corporation · NASDAQ:FXNC
First National — Investor Presentation (September 2023)
21 slides from First National's investor presentation, Sep 28, 2023
Slide 1: First National Corporation Investor Presentation
First National Corporation (/ASDAQCI: FXNC) Investor Presentation September 2023 First®
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements First National Corparation (the Company) makes forward-looking statements inthis presentation that ae subject o ks and uncertainties. These forward-looking statements may include, but are not limited to, statements regarding prftaity liquidit
Slide 3: Overview of First National Corporation
Overview of First National Corporation FirstBank Balance whehester Sheet © Locations:200 Loans / Deposits 74.9% eAD Nim 3.48% Pe ROAA 1.09% °, Profitability aid Pree Staunton i Efficiency Ratio 66.01% ee. Virginia Gg TCE/ TAY 8.00% Becners Ce eagy Ter 1 Leverage" 9.72% A ° OF Capital 13.93% Pe ° 14.
Slide 4: Attractive Markets of Operation
Attractive Markets of Operation Deposits nMarket Deposit Market Branches (#) fecal ay ‘Active Branch Markets ‘Shenandoah 1 3 $378.61 988% 378% $58,822 140% Winchester (iy) 2 1 258,382 10st 213 71.985 ad $67,219 vi National Average % $73,503
Slide 5: Products Offerings and Capabilities
Products Offerings and Capabilities ©.2 2 ¢ ai = wt NZ Ss Retail Banking Mortgage Wealth Management + 20 branches and2LPOs | + 20.branches, + 4 dedicated residential + Strust officers and 3 + Seasoned bankers + Callcenter MLOs operations aru including 12 fulltime : : westment lenders, deposit specia
Slide 6: Balance Sheet Growth
Balance Sheet Growth ‘otal Assots (Si) anh sim ‘zorTyzotey —zo1eY —aueoy—zoziy —zoxey zonsa2——«aat7y—<zoley—<z0i8y zozoy aaety —aoazy _aozsaa Total Deposit (SM) ‘Tangible Common Equity (SM)' suze 4.202 or cnn 2 S18 ggg SHH ss 5 77 sary 5708 Bes ss ‘zorry20Ney 2019" zoaoy aunty zozay 202002 zorry 201
Slide 7: Consistent Earnings & Profitability
Consistent Earnings & Profitability Net income ($M) Pre-Provsion Net Revenue (PPNR) (SM) * posi 2090 auring st6a sas pandemic and in S104 a6 S104 " $86 5p, saa $89 giza in 2022 primarily trom a sta an gown and sing interest rates, > Noninterest income BoiTY ao1eY 201eY 2020Y zOz1Y 2022 2028 ‘Dory 20
Slide 8: Consistent Earnings & Profitability (cont.)
Consistent Earnings & Profitability (cont.) ROAA (%6) ROAE (%) > Retum on average ‘equity averaged 48.489 from 2017Y trough 2022 > Merger expen: tolaled $3, a milion and impcied 20017 DOITY 201BY 2018 2020 2O2IY 2022 2023 BOITY BDIBY zO1eY zoo BOaIY 2OZQY 2028, > Pre-provision net onvit ezyto revere
Slide 9: Diversified Revenue
Diversified Revenue a2yro sare “Gepost ongaoe srs s2009 sm Nonintorest Income 2023 Q2 YTD Highlights > Consistent weaith management revenue > Service charges on deposit accounts increased 2%, and check card {and ATM fees increased 7%, comparing Q2-2023YTD to Q2: 2022¥TD 1
Slide 10: Liquidity Position at June 30, 2023
Liquidity Position at June 30, 2023 lion icipal deposits totaling S: ($0008) Interest Bearing Deposits in Banks $8478 sco Yow c Liquidity Sources $81,000 Total $561.7 million Unencumbered Securities ‘S67. 398 FHLB Borrowing Capacity "238,307
Slide 11: Asset Quality Trends
Asset Quality Trends Allowance for Credit Losses on Loans / Loans (°) Nonperforming Assets / Assets (%) o7% oar 010% ‘zorrY —20tey zoe" om0Y —aozty —z0zev 202302 zoi7y2018y zoey 2020 zoztY —zoz2y 202302
Slide 12: Capital Ratios and Trends
Capital Ratios and Trends Tangible Common Equity Tangible Assets (4) 220% 23% 178% % 7794 800% Bank Tier 1 Leverage Ratio (4)? ALR, gsr 87% 9.26% asx Boom 8.42% ziry2iey 01ey zoz0y zoaiy omay 202002 Bank Tier 1 Risk-Based Capital Ratio (%)? saom 57% 14004 yasru 12.99% szom 127%, Bory aovey <a0tey 2o
Slide 13: Creating Shareholder Value
Creating Shareholder Value Tangible Book Value per Share ($)! ‘Diluted EPS ($) Common Dividends Declared per Share ($) ‘ZorrY 20tey 2018 ozo eaty 2022202002 zoiry201ey —20NY 2020 O2IY —z0zy 202302 1D vi
Slide 14: First National Growth History
First National Growth History ioe Expanded branch sted FXNC ‘network into the ‘common stock on Richmond marketand the Nasdaq Stock Exenange Fes Bark opened (Croat First National rd branches fo 7 ‘Strengthened the o Roanoke Valley Team company of First Bank
Slide 15: Key Strategic Priorities
Key Strategic Priorities Focus on serving small-to-medium size businesses and their owners and employees Continue expansion in attractive Virginia markets with organic growth, acquisitions and people Provide high-tech and personalized service with calls, clicks, or in-person visits Improve productiv
Slide 16: Investment Highlights
Investment Highlights s D grow organically Strong credit quality and disciplined underwriting Employees that deliver UDB) with communities T \d connect ) Sete Meaningful inside ownership of 17% /
Slide 17: The First National Difference
The First National Difference ne -. +4 Operating in growth Loyal customer base with Strong enough to be markets across Virginia low-cost deposits opportunistic, disciplined enough to say no Low-risk balance sheet Long-tenured management Community involvement with consistent and reliable with track r
Slide 18: Appendix
Appendix
Slide 19: Financial Highlights
Financial Highlights say Years Ended December 3, = Quariors Ended ZiT 201820192020 202022 FOTN TD SORA OORT? 1072 _ A 07023 Balance Sheet Total Assets sro —75~—«S800~=«wST=«CSTSBD«CSH aD | SIS | SIATS Sigee sis60 Siam? _siaTH Gross Loans $823 $543 S575 8600, 1 $600 | S880 $007 $821 San 30 epost 5865
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation “angie Common Equity Tange ests TCO sme rr Less. Goad rd Ober ranges 0 2 170 i ‘4 108 “angie Conmon Equty Wiz waza eTiow _waooT siians5 sios son Les: Ged nd ter args 2 ro so aia ate Tangle Asses Simo ssa _ soars __sowg1s_siseezs sie Tongible Conren Equly Tene Assets a a CS CY
Slide 21: First National Corporation
First National Corporation NASDAQCM: FXNC 112 W. King Street Strasburg, VA 22657 888-647-1265 fovirginia.com
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