First National Corporation · NASDAQ:FXNC
First National — Investor Presentation (May 2024)
21 slides from First National's investor presentation, May 8, 2024
Slide 1: First National Corporation Investor Presentation May 2024
First National Corporation (NASD AQCI: FXNC) Investor Presentation May 2024 First® ior eperaton
Slide 2: Cautionary Regarding Forward-Looking Statements
Cauti y garding 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 profitability, liquidity,
Slide 3: Overview of First National Corporation
Overview of First National Corporation FirstBank® 1 2024 YTD Financial Snapshot © Locations: 20 [NCOs / Average Loans (annualized) NPAs / Assets! Allowance for Credit Losses / Loans.
Slide 4: Attractive Markets of Operation
Attractive Markets of Operation a i)
Slide 5: Products Offerings and Capabilities
Products Offerings and Capabilities Commercial Banking + Seasoned bankers + Regional deposit specialists =f SO Retail Banking + 20.branches + Call center ft Mortgage + Dedicated residential MLOs + Diverse and flexible ° \wul in iY Ge Wealth Management Experienced trust officers ‘and operations speci
Slide 6: Balance Sheet Growth
Balance Sheet Growth saeco en no 13.5%, 122 ee sae gent een we wt - a a aT Teta epee n “a sxonon 130 pee sn a8 Fae wan sae ase ss 7 bod
Slide 7: Earnings & Profitability
Earnings & Profitability > 2020-Remained Net income st) Pandemic > 2021-Natincone Business ecquisitons ireased rom balance margin erga cones, auiey —atgoyaoaty 20227 2028 20240 zoey aoay at zomay zany 202401 ates began to ‘Not Intreet Margin (4) Eticiency Ratio)" tensive meer 28% eam, ase irecen sam
Slide 8: Earnings & Profitability (cont.)
Earnings & Profitability (cont.) > ROA averaged 100% and ROE a 507% Maren sors through 2023 ono, 0% > 2023 protabiy py Prowse cred ss fotaing $6 OM > Proftabilty stabilized in 2 1 2028 ‘ue zozoy zozty zee ates 202401 noisy mono <2021Y._2OzRY_zORY 70a!
Slide 9: Improving Operating Leverage
Improving Operating Leverage FTEs (ny PPNR Employee (8) Operating Expense Ave a ‘eee 6) ab all Da | muy ay ay 220 20uy 22 > Tho.umber of FTES increased form 15519 2otat0 216: 2023 PPNR per employee lagovedton Srkto cn 202 > Asset gout outpaces expense resting improved operating pense ato of 27% 3008
Slide 10: Diversified Revenue
Diversified Revenue sess 231 Highights ‘Comparing 2023 to 2022¥, > Service charges on deposit accounts increased 4% > Check card and ATM foes increased 5% >» Wealth management revenue increased 4% > Income for bank-owned fe insurance increased 5% D
Slide 11: Asset Quality Trends
Asset Quality Trends
Slide 12: Capital Ratios and Trends
Capital Ratios and Trends 206 ayo tah 808 ey ‘Bank Ter 1 Leverage Ratio (1? Bank Ter 1 Risk Based Capital Ratio (%) ‘Bank Total Risk-Based Capita Ratio (4° 457% 2% 399% 109% ae 80% 1% 44 Oh 18 aaaay, ASH
Slide 13: Creating Shareholder Value
Creating Shareholder Value ere seas sac iniaes moans cnt sve sieos 827 sar auiey 2020s aaRiy «ORY atzay—BOMOIYTO auey 20m —aieiy «me ——aBY_ZOMOIYTO
Slide 14: First National Growth History
First National Growth History Usted PANG. et Sank ones pany of Fst 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 eganically it Strong credit quality and disciplined underwriting UD) with communities D : D- Meaningful inside ownership of 18% 4 )
Slide 17: The First National Difference
The First National Difference g <3 a 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-t Communit with consistent and reliable with track record of and corporate citizensh
Slide 18: Appendix
Appendix
Slide 19: Financial Highlights
Financial Highlights wss—_—s000 Tine sige sai | Sia? Same sie Slaie SMT on siz siz stane | siz size sis stam $1250 eases os Wem 7a5e% | 704% 7487% TTI 785K 772% Net neon wor esses Sioa ws] 88 95s) wo 2 Prowse Cred Losses as ss 30 wo) sstpsaz | sooo ses ROMA 12% 120% 0908 08mm 119% ont | 115% tow —OF
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 21: First National Corporation
First National Corporation NASDAQCM: FXNC 112.W. King Street Strasburg, VA 22657 888-647-1265 fvirg, com