As of September 30, 2024, First National Corporation reported total assets of approximately $1.45 billion, reflecting a modest increase from $1.42 billion at the end of 2023. The company’s total deposits rose to $1.25 billion, up from $1.23 billion, while total shareholders’ equity increased to $125.1 million from $116.3 million. Cash and cash equivalents saw a significant rise, reaching $126.5 million compared to $87.2 million at the end of the previous year.

In terms of financial performance, net income for the third quarter of 2024 was $2.25 million, a decrease from $3.12 million in the same quarter of 2023. For the nine months ended September 30, 2024, net income totaled $7.9 million, down from $10.5 million in the prior year. Earnings per share for Q3 2024 were $0.36, compared to $0.50 in Q3 2023. The decline in profitability was attributed to a significant increase in the provision for credit losses, which rose to $1.7 million in Q3 2024 from $100,000 in Q3 2023.

Net interest income for the third quarter increased to $11.75 million, up from $10.68 million a year earlier, driven by a $2.8 million rise in total interest income, although this was partially offset by a $1.7 million increase in interest expense. The net interest margin improved slightly to 3.43% from 3.35% in Q3 2023. For the nine-month period, net interest income also increased to $34.36 million, reflecting a $1.5 million rise compared to the same period in 2023.

The company completed the acquisition of Touchstone Bankshares, Inc. on October 1, 2024, which is expected to enhance its market presence in Virginia and North Carolina. Following the merger, the combined entity reported approximately $2.1 billion in assets, $1.5 billion in loans, and $1.8 billion in deposits on a pro-forma basis. The acquisition incurred pre-tax merger costs of $219,000 in Q3 2024, with additional estimated expenses of $11.5 million anticipated in the following quarters.

Noninterest income for Q3 2024 increased to $3.20 million from $3.05 million in Q3 2023, primarily due to higher fees from customer services and wealth management. However, total noninterest expenses rose to $10.46 million, up from $9.78 million, largely driven by increased salaries and employee benefits.

Overall, First National Corporation's financial results for the third quarter and the first nine months of 2024 reflect challenges in profitability amid rising credit loss provisions and increased operational costs, alongside strategic growth through acquisition.