First National Corporation · NASDAQ:FXNC
First National — Investor Presentation (September 2022)
29 slides from First National's investor presentation, Sep 19, 2022
Slide 1: First National Corporation Investor Presentation
First National Corporation (\\ASDAQCI; FXNC) Investor Presentation September 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 Q2 2022 YTD Financial Snapshot FirstBank teres panei Total Assets $1.48 Gross Loans seaom wiltnester Total Deposits $1.38 © Locations:20 ae Loans / Deposits 67.9% 9, Nim 3.39% ROAA 1.07% Promtabiity tg 14.16% Virginia Efficiency Ratio 63.5% Y TCE! T® 6.88% Bear
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 TotatAssets (M) Total NetLoans (SM) ee ee saa TL Ty [ | [ il zoey 207Y z01ey aoiey zoz0y aoaty 202202 zoey 20v7Y aie 201 z0m0Y 2021 202202 Total ma _ Tangible Common awe ism)’ " size $1296 pA i por 1% — —— i sor ee Ail [ | iii I ‘aowy 20177 zateY —2018Y 2020 zo2ry 202202 zoey 20
Slide 8: Consistent Earnings & Profitability
Consistent Earnings & Profitability > Net income and pre. —) pre rovson et Reve PA) ME Nations and s; 1 during pandemic, the ses $130 sia s123 panier Om a is $03 sos of Fincastle, andthe $59 Sta expansion info the Richmond, VAmarket > Noninterest income supported eamings, which included service 2016
Slide 9: Consistent Earnings & Profitability (cont.)
Consistent Earnings & Profitability (cont.) ROAA (%) ROAE (%) > Retum on average 16.36% equity averaged 42.39% from 20167 ‘Bi: through 2021¥ 1082% 40.20% > Merger expenses totaled $3.5 millon and impacted 2021Y earnings > Pre-prowsion net 216y 20177 2018Y 2019Y 20207 2021Y 2022 2O16Y 2017Y 2018Y 201
Slide 10: Diversified Revenue
Diversified Revenue Noninterest Income 2021 Wealth Management Division Assets Under Management ($M) cd Sevice charges ‘onDapacts oe can pT eT $400.0 s2oa9 $217 $1972 AUN 12317 AUBNE 12919 1440 1298121 Noninterest Income 2021Y Highlights > Fees from ATMicheck card and other customer services increase
Slide 11: Asset Quality Trends
Asset Quality Trends Loan Loss Reserves / Gross Loans (%) NPAs | Assets (%) 119% 1.09% 102% 08% ose, 069% 070% 07% 046% 0.29% 0.30% i a | a a 2owey 2017Y 2018 201 020Y__aOIY 202202 201eY 20177 z0NBY 20197 2020 2021Y 202202 1
Slide 12: Capital Ratios and Trends
Capital Ratios and Trends ‘Tangible Common Equity / Tangible Assets (%)' Bank Tier 1 Leverage Ratio (%)? 9.53% 10.19% 926% ee i 200% Baz TH ‘aowy —2017Y 2atey 20197 | 2020Y 2021Y 202202 2isy 20m7Y 2018Y aot —2020Y —ozIY 202202 Bank Tier 4 Risk-Based Capital Ratio (%)? Bank Total Risk-Based Capital R
Slide 13: Creating Shareholder Value
Creating Shareholder Value ‘Book Value per Share «Diluted EPS atter Extraordinary ($) Common Dividends Declared per Share ($) $18.28 $2.04 si92 $15.54 sisg S188 11.57 ae S130 $10.28 S120 sit | | ial ] ‘2oweY —2017Y —zateY 2019 020 2021Y 202202 zoey 2017Y 20Y —2019Y 2a0Y —Z0aIY —a22ID
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 is — eae “ae eae or: ares = oe ee a = Sea] ae foe Soo eae ae a “28 2 Ss 2s] Se ew Deposits ‘S646 ‘$665 671 $706 S842 $1,249 $1,206 $014 $1213 $1289 81.203 $1,206 A ome a a ee ee SR et SR Se GR = SS maa a a] a an Seeekes 2 2s & hs es BS 2a i S|) ee ee oe sino oes 2G Te 2S Se | aS
Slide 20: Tangible Common Equity / Tangible Assets Non-GAAP Reconciliation
Tangible Common Equity Tangible Assots Non-GAAP Reconciliation $000 2 air 2000 2H 02 Total Common Equty e251 S815 OSM TTI] HTS «T1T039—100345 Less: Gooding Ofer Inangibes 151 930 472 470 19 388 3175 “Tangible Common Equity $60.600_S57zat $86,202 —STTOAS SANT 113.855 807.140 Total Assets 716000 739,1
Slide 21: First National Corporation
First National Corporation NASDAQCM: FXNC 112 W. King Street ‘Strasburg, VA 22657 888-647-1265 fovirginia.com
Slide 22: Summary Balance Sheet Trends (quarterly)
Summary Balance Sheet Trends (quarterly) Total Assets ($M) Total Net Loans ($M) saose sts on we 24 meet antes J nies aaiot ara I | i antes aio — Aza Total Deposits ($M) Tangible Common Equity ($M) pals sp site aan fl J cance aioe aor —=— ammo mci) ton —arion —aueot Saar
Slide 23: Summary Performance Ratios (quarterly)
Summary Performance Ratios (quarterly) ROAA (4) ORE (4) 540 15295 120% 137% ars . Ta OR gets [| moos mao} 7G? «wD ZOOL momos 202101 moaice memos aomios 202201 [Net interest Margin (%) Efficiency Ratio (%)' 22h 328 ate a8 cones SATS gate GATS 4.08 momooe mio} moro 2103. 2a mamas m2i01—moaiee maa aaai
Slide 24: Summary Asset Quality Trends (quarterly)
Summary Asset Quality Trends (quarterly) NPAs | Assets (4) NCOs | Avg Loans (1) 065% 0.00% i 002% 0.08% 702004 202101 ‘Nonacerual Loans / Loans (%) Loan Loss Reserves / Gross Loans (%) ame in in | HE 202004 202101
Slide 25: Creating Shareholder Value (quarterly)
Creating Shareholder Value (quarterly) Tangible Book Value per Share (8) = Diluted EPS after Extraordinary (S) —e-Common Dividends Declared per Share (8) s1821 sear $18.28 | | | | | | comot 20210) werio2—-ziaa—aaaion——aea2oT manos mazio—aoig2 «aig? —-aen1ok—_—2aOI D
Slide 26: Capital Ratios and Trends (quarterly)
Capital Ratios and Trends (quarterly) ‘Tangible Common Equity Tangible Assets (%)' moeoos 202101 202102-—«w21G3—«aNIOA 20201 Bank Tier 1 Risk-Based Capital Ratio () 15.32% wasiy 180% wuss nats M08 yomos 202101202203 —mNIOA 20K Bank Ter 1 Leverage Ratio (%) manos 02101202102 «0209 —«2eaIGH 202201 Ban
Slide 27: Tangible Common Equity / Tangible Assets
‘Tangible Common Equity Tangible Assets s000= ‘Quarter Ended 272008 202101 202102 202103 202104 202204 TTtal Common Equity 84916 85,928 88,682 116,908 117,039 Less: Goodwil and Cther Intangibles 19 5 - 4.170 3.184 “Tangible Common Equity $84,897 $85,921 $88,682 $112,736 $113,855 Total Assets 950,932
Slide 28: Tint Conn Ey ue ase
Tint Conn Ey ue ase ne Tame ETT ee ee ea ee ec ae agi i a a Total Assets 716,000 739,110 752,968 £800,048 950.9% 1,389,437 1 a aaonc nies es ama ee Tangible As $714,449 $738,180 $752497 «$790,878 $960,913 $1,386,253. ‘Tangible Common Equity / Tangible Assets 7.08 715% 8.00 9.63% o 8.21% Efficiency R
Slide 29: 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
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