First National Corporation · NASDAQ:FXNC
First National — Investor Presentation (November 2022)
21 slides from First National's investor presentation, Nov 3, 2022
Slide 1: First National Corporation Investor Presentation
First National Corporation Investor Presentation November 2022
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements Fist National Comoration @he Company) makes fowarc-fookng statements In this presentation that ere subject o risks and Inetude, but are not imited to, statements regarding profitability, vu iy pee (capa, allowanes for loan looses, interest ra
Slide 3: Overview of First National Corporation
Overview of First National Corporation FirstBi wihinester © Locations: 20 strasburgGee Washington “ 0c. 0 ©. Staunton” ee Virginia ® Rietmnond Regulatory 3 ° * CTI Tier 1 Capital Ratiot 13.52% . ‘me ° 7 Total Capital Ratio' 14.10% Beach NCOs / Average Loans 0.00% ° NPAs / Assets? 0.18% Loan Loss Res
Slide 4: Attractive Markets of Operation
Attractive Markets of Operation ‘Shenandoah 1 3 s276@61 20.84% 3.40% $06,405 10.37% Winchester (ty) 2 1 258,382 1064 251 erst 265 Botetourt 2 6 223,139 3789 289 81.906 1125 Warren 4 2 106.890 ant 413 79.60 1112 Frederick 8 2 97263 aot 6or 0.002 688 Staunton (Cty) 5 1 48,168 459 419 61.589 wo71 Rocki
Slide 5: Deep Management Team with Significant Experience in the Markets We Operate In
Deep Management Team with Significant Experience in the Markets We Operate In ‘Scott Harvard Dennis Dysart Shane Bell pxecutive) President / CEO ‘Sr EVP/COO EVP/CFO Officers 40+ 25+ 25+ 5 Chris Martin ‘Sam Crow Lisa Rutherford Blake Curtis sae EVvP/cRO EvP/cco ‘SVP/Human Resources. _SVP/ Wealth Mana
Slide 6: Products Offerings and Capabilities
Products Offerings and Capabilities 42 8 =f i FN Sees? Rat SS Commercial Banking Retail Banking Mortgage Wealth + 20branches and2LPOs + 20 branches + 5 dedicated residential + trust officers and 3 + Seasoned bankers + Call Center pees cparations tat including 12 full-time + Online and mobile banking
Slide 7: Balance Sheet Growth
Balance Sheet Growth Total Assets ($M) pecan ae “ee s.ea srs $739,783 $800 aoiey 2017¥ 018Y —0tey zomymoaiY 202209, zoey 2017¥ 2016Y _-2016Y _zomoY aoa 202209 ‘otal Deposits ($M) ‘Tangible Common Equity ($" or coon te sm ‘suas 81.266 orca seas $665, sort $708 zoey airy ao1ey _aoiey aaaay_aoaty 02208
Slide 8: Consistent Earnings & Profitability
Consistent Earnings & Profitability Net income ($M) cae sto 398 moe 2o17y zoey aay mooy may 2022 aavto Net Interest Margin (%) arm 277% 380% 3.80% 350% sar 333% Doley 2017Y a01ey ao1ey om a021Y 0m asvro $154 s139 $139 g122 s123 s103 ‘Do1eY 2017Y 2018 201ey a0z0Y a2IY 20% arin Efficiency Ratio (%)! m
Slide 9: Consistent Earnings & Profitability (cont.)
Consistent Earnings & Profitability (cont.) ROAA (%) ROAE (%) 18.36% ‘Seis s310% 1092% 10.30% 1200% 41.87% B1eY 2OI7Y zOIeY aNIeY zO~Y ZY 202 ‘Do1eY 2017Y 201BY a010Y omy aO2IY 202 avo a FTES (ay) PPNR / Employee (8) Operating Expene Avg us 00866 $89,987 _ 33% ae m16v may z16v amy oer ora Retumon av
Slide 10: Diversified Revenue
Diversified Revenue Wealth Management ($M) 400.0 $2009 $1872 VRING OWT 1OINe saEINe *2e1”20 OWE Noninterest Income 2021Y Highlights ‘significantly and were positively impacted by the merger of The Bank of Fincastle with and into Fist Bank > Wealth management revenue increased $504 thousand, or 23%,
Slide 11: Asset Quality Trends
Asset Quality Trends Loan Loss Reserves / Gross Loans (%) NPAS/ Assets (%) o7% a2 030% 02mm aa. wiey@i7y 01eY —a0tey 2am maiy _0z209 ‘zoiey 2017 20eY zo19Y omy 20a 202209
Slide 12: Capital Ratios and Trends
Capital Ratios and Trends Tangible Common Equity / Tangible Assets (*)' 269% Bank Tier 1 Leverage Ratio (%4? 1039% 220% wiey airy ao1eY —aeley mammal oza08 Bank Tier 4 Risk-Based Capital Ratio (%)* 457% wiey airy Oley aoleY «aR ay _mOaaOD ‘Bank Total Risk-Based Capital Ratio ()* 1582% ss47% s382y 15
Slide 13: Creating Shareholder Value
Creating Shareholder Value ‘Tangible Book Value per Share (S)* Diluted EPS (6) ‘Common Dividends Declared per Share (8) s204 ziey 20i7Y01eY ote mam maty _oz202
Slide 14: First National Growth History
First National Growth History Enhanced Richmond presence ‘th the acquistion ofa loan Patol, team and office rom a seus vie erp ata in Byes usec, aa escassacd Mecgenac | pater ee Chonate cnn Romcndmetatnd — Senet eee ete, Loclen ore Senco Sine, ee oor ia mea fetatmccen | Stateachange ag Re mes ‘Acqui
Slide 15: Key Strategic Priorities
Key Strategic Priorities 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 Improve pro
Slide 16: Investment Highlights
Investment Highlights N D « aS A 4 ) ‘Strong credit quality and disciplined underwriting 1 Employees that deliver with communities, oO oD Meaningful inside ownership of 16% ability to
Slide 17: The First National Difference
The First National Difference Full array of products in Loyal customer base with Strong foundation poised high growth markets low-cost deposits for future expansion * © e AES me Low-risk balance sheet Long-tenured, experienced Focus on community wit risk i and shareholder return committed to enhanci
Slide 18: Appendix
Slide 19: Financial Highlights
Financial Highlights TRPSIT) ‘enone $605 ‘Gross Loans / Deposits 7520% 7O59% C0S% 81.20% TATTH G60BK S| 65.00% 790% | TLE “Fatal Common Eauty 32 wr oSSCTT~SCOS |S? CSOT C«STOSC«D X 708% 775% © 8EO% 963% BGK 87% GosK | BBIH BIH 7.31% «ABH SEH Leverage Rat 48% 840% 920% 10.19% sxx 927% | 922% 883% Bat
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation “Tangible Coneron Equity Tangible Assets Teal Common Eauty S211 SBI OES 77219 OHS T7009 ‘Good and Other anges 551 20 mc 470 19 3a 3170, Targa Commen ty $eos00 _serea_—se6z02 srs seao7 173.855 __s05007 7igq00 729.170 oe) OS esd? ae aT 1380 ex Gest Cer anges 4551 20 rc 10 19 31
Slide 21: First National Corporation
First National Corporation NASDAQCM: FXNC 112 W. King Street Strasburg, VA 22657 888-647-1265
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