First National Corporation · NASDAQ:FXNC
First National — Investor Presentation (May 2023)
22 slides from First National's investor presentation, May 10, 2023
Slide 1: Investor Presentation May 2023
First National Corporation (/ASDAQCI: FXNC) Investor Presentation May 2023 First®
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 certainties. 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® Q1 2023 YTD Financial Snapshot ane Total Ascot S148 BEI ross Loans sau Winthester- Sheet ‘Total Deposits $1.28 © Locations:20 Lean Depects ro & o NIM 3.60% » Eee 18% & Profitability APY 14.20% sg Virgina Efficiency Ratio 65.49% Gg TCE/ TAY 7.94% Benm
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 % $73,503
Slide 5: Executive Officers
Executive Officers H Scott Harvard Dennis Dysart Shane Bell President & CEO Sr. Executive Vice President & Executive Vice President & 40+ years experience Chief Operations Officer Chief Financial Officer 25+ years experience 25+ years experience
Slide 6: Products Offerings and Capabilities
Products Offerings and Capabilities ©.2 2 ¢ ai = wt el Ss Retail Banking Mortgage Wealth Management + 20branches and2LPOs | + 20.branches, + 5 dedicated residential + Strust officers and 3 + Seasoned bankers + Call Center MLOs operations staff including 12 fulltime : : westment lenders, deposit spec
Slide 7: Balance Sheet Growth
Balance Sheet Growth a co Loans, Net ($M) ee $91 S009 ‘2oY —2018y 2010 ozo aztY ozzy 202301, roy z18y 20187 m0 Total Deposits ($M) ‘Tangible Common Equity ($M)* cons sia 5420 sees sory 5706 ‘OY 2018y 2018 2020 zTY —z0zy «207001 zoiryzovey <20Ney 2020 aontY —zozzy 207001
Slide 8: Consistent Earnings & Profitability
Consistent Earnings & Profitability Not income (St) Pre-Provision Net Revenue (PPAR) (SMI? > Eamings remained st68 $228 pandemic and in then s139 increased significantly $39 s122 $123 interest > Noninterest income Bov7Y 2018Y 2010Y 2020 mORIY 202 2073 ‘BoI7Y 20veY 201GY 020y 2O2Y zo22y 2020, which i
Slide 9: Consistent Earnings & Profitability (cont.)
Consistent Earnings & Profitability (cont.) ROAA (%) ROAE (%) 130% > Retum on average through 2022 098% a aoy > Merger expenses toiled $35 millon and impact BOI7Y 2o1ey a01eY 2020 RO2IY Oz 2073 Boi 2018 201eY z020y Zoey 20227 2023 > Priscitoeln net ar area revenue (PPNR) per ‘employes improved FTEs
Slide 10: Diversified Revenue
Diversified Revenue Nonintorest Income 20227 Highlights > Wealth management revenue increased 11% > The Bank benefited from a full year after the The Bank of Fincastle was merged with and into First Bank on July 1, 2021, as service ‘charges on deposit accounts increased 30%, and check card and [ATM
Slide 11: Available Liquidity Covers Uninsured Deposits
Available Liquidity Covers Uninsured Deposits (dn milions) 3731/2023 Total Deposits 3 12415 Estimated Uninsured Deposits $2123 La: Coenen Deposits 74) ‘Adjusted Uninsured Deposi $1952 Estmutod Insured and Collrlzed Deposts “$7,108 Estimated Insured and Collateralized Deposits to ' Total Deposits ‘ 8
Slide 12: Asset Quality Trends
Asset Quality Trends Allowance for Credit Losses on Loans. Nonperforming Assets / Assets (%) o7% oar 010% 019% ‘ory 20tey 20107 aoaoy—0ztY —zozey 202301 zoiry201ey z01ey 20a0y—anzty —20zzy 207001
Slide 13: Capital Ratios and Trends
Capital Ratios and Trends Tangible Common Equity ! Tangible Assets (1) Bank Ter 1 Leverage Ratio (1)? ed ssrk 970% wee 2S sao eam Boiry 2o1ey 2018 aoaoY _Z0aIy zoZ2y 20701 Bank Tier 1 Risk-Based Capital Ratio (%)? sagem 57% 140% yaazy 12.08% saagy_T om zorry zo18y 2018 2020 2021 _2022Y 207801 ‘Bank
Slide 14: Creating Shareholder Value
Creating Shareholder Value Tangible Book Value per Share ($)! ‘Diluted EPS ($) Common Dividends Declared per Share ($) zory2018Y 2018Y zo20Y_mOZY oY ANZSI BOTY 01BY 208 oz ORIY —2ORY INYO
Slide 15: First National Growth History
First National Growth History Created a West tncouer sted FNC Fist Bank opened division with a pater mon stock on rien Richmond market nd Nasdaq an experienced ferbusinessin Shenandoah County, Viginia Tin Lrombaleed market president E ‘Winchester market ‘Company of First Bank
Slide 16: 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 17: 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 16% /
Slide 18: 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 SI * (%) Z Low-risk balance sheet Long-tenured management Community involvement with consistent and reliable w
Slide 19: Appendix
Appendix
Slide 20: Financial Highlights
Financial Highlights 58 soot Sise0 $1380 sim] state Siais Siseasiaso | sig72 S575 $650 S25 Seon S8 $890 S007 seat 018 Sr $708 Sanz si.49 stat siziz | $1209 $128 $1228 size $1202 o095% 810% 747% 746% 73.94% | G460% 6750% © 7150% TA.10% TOOK we Cs ry 8 63% BGK 82% 770% 79H | 731% BAB BOK 770 TR 9. aao
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation “angie Connon Equity Tangle Fess 500 Teta Carmen Eaty a wa20 TES? Lis: Gout nd Ober ranges x es 0 “8 a Tangible Conon Equy iz waa sTr0 $113855 S058 soos Teter Taain0 752960 eov0e ss09m 13807 1.0900 1372 Lis. Goad ond Ober ranges « a2 70 6 ‘ 3 361 Tangible seco amo __sieheat _
Slide 22: First National Corporation
First National Corporation NASDAQCM: FXNC 112 W. King Street Strasburg, VA 22657 888-647-1265 fovirginia.com