First National Corporation · NASDAQ:FXNC
First National — Investor Presentation (May 2022)
21 slides from First National's investor presentation, May 11, 2022
Slide 1: First National Corporation Investor Presentation May 2022
First National Corporation (\\ASDAQCI; FXNC) Investor Presentation May 2022 Naina Corporation
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements First National Corporation (the Company) makes forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements may include, but are not limited to, statements regarding profitabili
Slide 3: Overview of First National Corporation
Overview of First National Corporation FY21 Financial Snapshot FirstBank ters poner Total Assets $1.48 Gross Loans 025M wiltnester Total Deposits $1.28 © Locations:20 ae Loans / Deposits 66.1% 9, Nim 3.13% Ey ROAA 0.88% Proftabiity [ERY 10.30% Virginia Efficiency Ratio 644% - TCE! T® 821% Rien Eertr
Slide 4: Attractive Markets of Operation
Attractive Markets of Operation Branches (a) D8P0sitsInMarket Deposit Market 7 Pro} 22Median — '22-'27 Proj ($000) ‘Share (%) Pop Change (* HHI($) HHI Growth ‘Shenandoah 1 3 s227.678 35.68% 3.43% $86,405 10.37% Botetourt 2 6 226,278 902 289 21,908 11.25 Winchester (Cty) 3 ‘ 192,784 873 251 erst 865
Slide 5: Deep Management Team with Significant Experience in the Markets We Operate In
Deep Management Team with Significant Experience in the Markets We Operate In Executive Officers Senior Management Market Executives Scott Harvard President/CEO 40+ Years Experience Chris Martin EVP/CRO 20+ Years Experience Jim Youngblood EVvP/ SLO Norther Shenandoah Valley/ Winchester 30+ Years Exp
Slide 6: Products Offerings and Capabilities
Products Offerings and Capabilities @: bd Commercial Banking + 20 branches and 2LPOs + Seasoned bankers including 12 full-time lenders, deposit specialists, ‘online and mobile banking + Cash /treasury management aed Retail Banking 20 branches Call Center Online and mobile banking Online depositaccou
Slide 7: Balance Sheet Growth
Balance Sheet Growth TotalAssets (SM) ig Total NetLoans: — ate state sey st sense see ss _—— TL Ty [ I ( il [ I zoisy 207y aoiey oisy zoz0y zozty 207201 zoey 20i7Y2ieY _01sY __zoz0y _zoaty_z0z201 Total Deposits (¢M) ‘Tangible Common Equity ($M) size onset “he i a si ee 5103 — sua sess so 108 i i | |
Slide 8: Consistent Earnings & Profitability
Consistent Earnings & Profitability Netincome ($M) Pre-Provision Net Revenue (PPNR) $M? & Netincorieia pie prowsion net revenue HO gag ais femained posite 2 $130 giz saa during pandemic, the acquisition of The Bank of Fincastle, and the expansion into the Richmond, VAmarket > Noninterest income supp
Slide 9: Consistent Earnings & Profitability (cont.)
Consistent Earnings & Profitability (cont.) ROMA (%) bisieaas- J > Retum on average 16.26% equity averaged 42.39% from 20167 219% through 2021 129% 092% 40.30% 0.4% 0.89% 0.88% 13.40% > Merger expenses totaled $3.5 millon and impacted 2021Y earnings > Pre-prowsion net revenue (PPNR) per 2016Y 2017Y
Slide 10: Diversified Revenue
Diversified Revenue Noninterest Income 2021 Wealth Management Division Assets Under Management ($M) cd Sevice charges ‘onDapacts oe can pT eT $400.0 s2oa9 $217 $1972 AUN 12317 AUBNE 12919 1440 1298121 Noninterest Income 2021Y Highlights > Fees from ATMicheck card and other customer services increase
Slide 11: Asset Quality Trends
Asset Quality Trends Loan Loss Reserves /Gross Loans (%) NPAs / Assets (%) 119% 1.09% 102% 092% 0.86% 069% 0.70% om 042%, 0.30% an oars i | il i 2orTY201BY 20197 2020 202tY 202201 zoey 20177 20NBY 2019 2020 2021Y 202201 2016
Slide 12: Capital Ratios and Trends
Capital Ratios and Trends Tangible Common Equity | Tangible Assets (%)* 9.65%, easy Bank Tier 1 Leverage Ratio (%)* 10.49% 9.26% 46% zoey 20m7Y 201ey —201gY —z020y 20z1Y 202201 2o16y Bank Tier 4 Risk-Based Capital Ratio (%)? 145% Ed zorey 201ey 2020 arty. 202201 Bank Total Risk-Based Capital Ratio (
Slide 13: Creating Shareholder Value
Creating Shareholder Value ‘Tangible Book Value per Share ($}* «Diluted EPS atter Extraordinary ($) ‘¢ Common Dividends Declared per Share (6) $2.04 S160 $192 sun S16 1.30 S120 soso so. ‘2owy 2017 2ateY 20197 2oz0Y —z21Y 92201 aowy —2017Y zoey 20197 2az0Y —Z021Y 202201
Slide 14: First National Growth History
First National Growth History Enhanced Richmond presence with the acquisition ofa loan portfolio, team and ofce from Srna reated a Wealt + Dynamic and experienced Creed a weet Bounded arch ated NC Peay cere Fret opened ecoome roto te conmenacckon cceteatay opera eaoehoe sree i Reiecreicand haat Sie
Slide 15: Key Strategic Priorities
Key Strategic Priorities 1 fEQs Focus on serving small-to-medium size businesses and their owners and employees 2 ® 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 4 cr
Slide 16: Investment Highlights
Investment Highlights N D Low-costand stable deposit base with strong customer relationships Demonstrated ability to grow organically and through acquisitions D } Strong credit quality and disciplinedunderwriting Employees that deliver powerful actions to enhance customer relationships and connect y
Slide 17: The First National Difference
The First National Difference Le 2 Fullarray of products in Loyal customer base with high growth markets low-cost deposits Low-risk balance sheet Long-tenured, experienced with demonstrated risk professionals shareholder return committed to enhancing customer experience Strong foundation poised for
Slide 18: Appendix
First
Slide 19: Financial Highlights
Financial Highlights —__Quarter 216 Saas enna a0 Fro assets S716 $739—«S7ES—«SOD=«CSMST««STTGD STATE | $1028 St025 | $1385 1369 siaTe Icrose Loans SHG $622,543 SS7A 5630256 | «StS azz 2586 Deposts S46 $685 S671_—S70E__ $842 S1.249 si.293 | some sod S1213 s12t9 51293 [Gross Loans /Osposts 75.28% TBSI
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation Tangitle Common Equty Tangible Assots sooos Ended December 3, 2016 27 2010 20 7070 7202201 Total Cormon Equty e218 S8N84 SETS 77219 BATE17.030—— «108553, Less Goodall nd Other tangas 151 20 72 70 19 2104 3100 Tangle Common Equity Ss0soo $5724 —$66202 $7709 _—seaaor —_—s113.05
Slide 21: First National Corporation
First National Corporation NASDAQCM: FXNC 112 W. King Street ‘Strasburg, VA 22657 888-647-1265 www.fbvirginia.com