FXNC

First National barely budged in regular trading, with the stock up only 0.4% around US$29.98, yet the Q3 2026 release landed with far more force than that muted move suggests. Earnings per share printed at about US$0.76 on revenue of roughly US$25.3m, pointing to a bank that is still converting a relatively modest top line into solid bottom line power. For anyone looking past today's flicker in the quote, the focus is on the stronger profitability over the last twelve months and what that might mean for valuation over a longer holding period. Like the earnings power at First National but want more ideas that pair efficient profitability with balance sheet strength? Check out our hand picked list built from the list of solid balance sheet and fundamentals stocks (25 results) - Revenue (Q3 2026 vs. Q3 2025): US$25.29m vs. US$22.321m (higher quarterly revenue year on year) - Net Income, excl. extra items (Q3 2026 vs. Q3 2025): US$6.9m vs. US$5.55m (higher quarterly net profit year on year) - Basic EPS (Q3 2026 vs. Q3 2025): US$0.76 vs. US$0.62 (higher earnings per share year on year) - Net Interest Margin, or NIM (Q3 2026 trailing vs. Q3 2025 trailing): 3.88% trailing in Q4 2025 vs. 3.84% in Q3 2025 (slightly stronger margin based on the trailing figures) Tired of scrolling through dense earnings tables and raw bank metrics? Get a clear visual read on First National with an at-a-glance view of its valuation profile in the company report for First National. For a relationship focused bank like First National, the latest print leans supportive. Revenue moved from roughly US$22.3m to about US$25.3m while net income excluding extras stepped up from US$5.55m to US$6.9m. That lets earnings per share climb from US$0.62 to US$0.76 without any help from eye catching trading gains or one off items. Net interest margin only nudged from 3.84% to 3.88%, yet even that small shift helps the case that the core lending and deposit engine is still doing its job. Bears often worry that a small regional lender could see profitability slip quickly if funding costs bite or credit weakens. The direction of these numbers pushes back on that near term fear. Higher quarterly revenue and net income year on year sit alongside a slightly better net interest margin rather than a squeezed one. The share price barely moved on the day, which suggests no obvious red flag in the results themselves, even if longer term concerns about commercial real estate or geographic concentration remain a reasonable watchpoint. With earnings up sharply but the share price above the provided DCF cash flow value, you need to verify whether First National's balance sheet really supports this valuation. Check the full financial health analysis of First National stock First National just reminded you how quickly earnings strength and share prices can move apart. The real opportunity often lies in stocks that could be undervalued before expectations reset. - Company 1 - 31% below our estimate - anchors essential digital infrastructure that keeps data flowing, interconnected and protected for large-scale computing customers. - Company 2 - 37% below our estimate - expands a single integration enabling large merchants to accept and distribute payments across diverse local methods and channels. - Company 3 - 39% below our estimate - grows a beverage platform turning rising coconut water demand into higher margin branded and private label volumes. Those are three of them. See the full list of 27 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FXNC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

First National Corp. (FXNC) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.64%. A quarter ago, it was expected that this company would post earnings of $0.59 per share when it actually produced earnings of $0.63, delivering a surprise of +6.78%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. FIRST NAT CP, which belongs to the Zacks Banks - Northeast industry, posted revenues of $25.29 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 3.97%. This compares to year-ago revenues of $22.8 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FIRST NAT CP shares have added about 18.3% since the beginning of the year versus the S&P 500's gain of 12%. While FIRST NAT CP has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FIRST NAT CP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.64 on $24.46 million in revenues for the coming quarter and $2.44 on $95.43 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Peapack-Gladstone (PGC), has yet to report results for the quarter ended September 2026. The results are expected to be released on October 27. This bank holding company is expected to post quarterly earnings of $0.94 per share in its upcoming report, which represents a year-over-year change of +74.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Peapack-Gladstone's revenues are expected to be $90.19 million, up 27.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First National Corp. (FXNC) : Free Stock Analysis Report Peapack-Gladstone Financial Corporation (PGC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

STRASBURG, Va., Oct. 23, 2026 (GLOBE NEWSWIRE) -- First National Corporation (the "Company" or "First National") (NASDAQ: FXNC), the bank holding company of First Bank (the "Bank"), reported consolidated net income of $6.9 million and basic and diluted earnings per common share of $0.76, for the three months ended September 30, 2026. The Company reported consolidated net income of $17.5 million and basic and diluted earnings per common share of $1.94 and $1.93, respectively, for the nine months ended September 30, 2026. "We are extremely pleased with our record financial performance for the quarter and the year. Organic loan growth continued in the third quarter with strong new loan production in all our markets. The improved net interest margin, excellent asset quality, and expense management drove the financial performance in the third quarter. Our branch optimization process was completed as we closed and consolidated three banking offices and closed our off-site ATMs in the third quarter. In early October we completed the sale of our two North Carolina banking offices and will book a gain in the fourth quarter," said Scott C. Harvard, President and Chief Executive Officer of First National Corporation. FINANCIAL HIGHLIGHTS FOR THIRD QUARTER OF 2026 - Basic earnings per share of $0.76 per share, compared to $0.62 one year prior, and $0.64 in the previous quarter - Return on average assets of 1.32% compared to 1.09% one year prior, and 1.11% in the previous quarter - Return on average equity of 14.02% compared to 12.43% one year prior, and 12.03% in the previous quarter - Tax equivalent net interest margin(1) of 4.38%, up from 3.84% one year prior, and 4.15% in the previous quarter - Net loan growth of $13.6 million for the quarter, a 3.7% annualized growth rate - Asset quality remained sound with non-performing assets at 0.26% of total assets - Noninterest bearing deposits of $520.1 million, or 28% of deposits, contributed to our low funding cost FINANCIAL HIGHLIGHTS FOR YEAR TO DATE 2026 - Basic earnings per share of $1.94 per share, compared to $1.36 one year prior - Adjusted basic earnings per share (1) of $1.94 per share, compared to $1.51 one year prior - Return on average assets of 1.15% compared to 0.81% one year prior - Return on average equity of 12.26% compared to 9.47% one year prior - Tax equivalent net interest margin(1) of 4.19%, up from 3.85% one year prior - Net loan growth of $67.3 million for the year, a 4.7% growth rate NET INTEREST INCOME For the third quarter of 2026, the Company's net interest margin fully tax equivalent ("FTE")(1) was 4.38%, compared to 4.15% for the second quarter of 2026 and 3.84% in the third quarter of 2025. The Company's net interest margin (FTE)(1) for the third quarter of 2026 includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting was $867 thousand, an 18-basis point incremental increase to the net interest margin for the third quarter ended September 30, 2026. Prior period acquisition accounting resulted in net accretion income of $245 thousand, or a 5-basis point incremental increase to the net interest margin for the quarter ended June 30, 2026, and net accretion income of $43 thousand, with no incremental impact to the net interest margin for the third quarter ended September 30, 2025. The increase in net accretion income as compared to prior quarters was driven by payoffs on purchased loans. Earning asset yields for the third quarter of 2026 increased 24 basis points to 5.55% compared to the second quarter of 2026. For the third quarter of 2026, net interest income FTE(1) was $21.3 million, an increase of $1.2 million from $20.1 million in the second quarter of 2026 due to improved yields and interest income related to acquisition accounting. The impact of acquisition accretion and amortization is reflected in the following table (dollars in thousands): | | For the Three Months Ended | | | For the Nine Months Ended | | | Sept 30, 2026 | | | Jun 30, 2026 | | | Sept 30, 2025 | | | Sept 30, 2026 | | | Sept 30, 2025 | Loans | | $ | 958 | | | $ | 334 | | | $ | 81 | | | $ | 1,586 | | | $ | 1,011 | Deposits | | | (14 | ) | | | (14 | ) | | | 55 | | | | (38 | ) | | | 218 | Borrowings | | | (77 | ) | | | (75 | ) | | | (93 | ) | | | (225 | ) | | | (279 | ) | | $ | 867 | | | $ | 245 | | | $ | 43 | | | $ | 1,323 | | | $ | 950 | | | | | | | | | | | | | | | | | | | | | ALLOWANCE AND PROVISION FOR CREDIT LOSSES The Company recorded no net provision for credit losses in the third quarter of 2026, compared to $426 thousand for the second quarter of 2026. The third quarter provision was comprised of a $64 thousand provision for credit losses on loans, a $79 thousand reduction in provision for credit losses on unfunded commitments, and a $15 thousand provision for credit losses on securities. Net charge-offs totaled $594 thousand in the third quarter of 2026, compared to net charge-offs of $105 thousand in the second quarter of 2026 and net charge-offs of $939 thousand in the third quarter of 2025. The allowance for credit losses on loans totaled $14.4 million, or 0.96% of total loans on September 30, 2026, compared to $14.9 million, or 1.00% of total loans on June 30, 2026, and $14.4 million, or 1.01% of total loans on September 30, 2025. The allowance for credit losses to total loans decreased from the prior period and prior year due to declines in specific reserves on individually analyzed loans and lower calculated reserves on pooled loans. The allowance for credit losses to non-performing assets coverage was 268% on September 30, 2026, compared to 315% on June 30, 2026, and 253% on September 30, 2025. NONINTEREST INCOME AND EXPENSE Noninterest income increased $66 thousand to $4.1 million for the third quarter of 2026 from $4.0 million in the prior quarter. The increase in noninterest income includes increases in wealth management fees, income from bank owned life insurance, and gains on sale of loans held for sale, offset by decreases in brokered mortgage fees, loss on disposals, and other operating income compared to the prior quarter. Noninterest expense increased $259 thousand to $16.7 million for the third quarter of 2026 from $16.4 million in the prior quarter. The increase in noninterest expense includes increases in employee benefit expense related to our above target net income as well as other real estate owned expense, offset by decreases in marketing expense, legal and professional fees, and other operating expense. Two banking offices in Roanoke Rapids and Louisburg, North Carolina, including most of the deposit and loan accounts associated with those offices were sold in early October. The company anticipates a one-time gain on the sale of the offices in the fourth quarter of 2026. The Bank consolidated three additional banking offices and discontinued low-volume ATMs at non-branch locations during the third quarter of 2026. The consolidation resulted in other real estate owned expense of $212 thousand in the third quarter. These two closed banking offices are carried as our only other real estate owned and as non-performing assets. The sale and consolidation combined will reduce the number of banking offices from 33 to 28 by year end. The goals of these branch optimization actions are to streamline operations, improve future profitability and allocate resources to faster growing markets. INCOME TAXES Income tax expense was $1.7 million for the third quarter of 2026, compared to $1.4 million for the second quarter of 2026. The effective tax rate of 19.7% for the third quarter of 2026 increased slightly from 19.5% in the second quarter of 2026 due to changes in permanent tax differences. BALANCE SHEET On September 30, 2026, total assets were $2.075 billion, an increase of $44.1 million or 2.2% from September 30, 2025. Total assets were consistent with the prior quarter with the increase in loan growth offset by decreases in cash and cash equivalents and investment securities, and the increase from the prior year was driven by loan growth funded by decreases in cash and cash equivalents and securities held to maturity. On September 30, 2026, loans held for investment ("LHFI") net of allowance totaled $1.486 billion, an increase of $13.4 million or 3.6% annualized from $1.472 billion on June 30, 2026, and an increase of $67.3 million or 4.7% from $1.419 billion on September 30, 2025. Net loan growth in the third quarter and for the year has been driven by increased production from newly hired bankers along with our continued focus on relationship banking. On September 30, 2026, total investments were $306.8 million, a decrease of $16.0 million or 5.0% from June 30, 2026, and an increase of $1.3 million or 0.4% from September 30, 2025. Available for sale ("AFS") securities totaled $218.7 million on September 30, 2026, and $227.8 million on June 30, 2026, and $196.5 million on September 30, 2025. The increase compared to the prior year was driven by security purchases exceeding portfolio cashflows and utilization of excess cash. Total net unrealized losses on the AFS securities portfolio were $21.4 million on September 30, 2026, compared to $15.8 million on June 30, 2026, and $15.4 million on September 30, 2025. Held to maturity securities are carried at amortized cost and totaled $82.6 million on September 30, 2026, $89.4 million on June 30, 2026, and $104.6 million on September 30, 2025. On September 30, 2026, total deposits were $1.829 billion, a decrease of $2.4 million or 0.5% annualized from the prior quarter, and an increase of $19.2 million or 1.1% from September 30, 2025. Average deposit balances for the third quarter declined $17.6 million or 3.8% annualized. Overall, deposit balances were relatively stable in comparison with the prior quarter and the prior year with decreases primarily in interest-bearing demand deposits. There were $25.0 million in other borrowings with the Federal Home Loan Bank on September 30, 2026 and June 30, 2026 and no borrowings on September 30, 2025. LIQUIDITY Liquidity sources available to the Bank, including interest-bearing deposits in banks, unpledged securities available for sale, at fair value, and available lines of credit totaled $721.6 million on September 30, 2026, $747.8 million on June 30, 2026, and $676.1 million on September 30, 2025. The Bank maintains liquidity to fund loan growth and to meet potential demand from deposit customers, including potential volatile deposits. The estimated amount of uninsured customer deposits totaled $575.8 million on September 30, 2026, $573.8 million on June 30, 2026, and $555.0 million on September 30, 2025. Excluding municipal deposits that have collateral pledged, the estimated amount of uninsured customer deposits totaled $483.3 million on September 30, 2026, $466.9 million on June 30, 2026, and $473.4 million on September 30, 2025. ASSET QUALITY Non-performing assets ("NPAs") increased slightly from the prior period and improved from the prior year as previously reserved loans were charged off since the third quarter of 2025. Management classifies NPAs as non-accrual loans and other real estate owned ("OREO"). The Bank had $747 thousand in OREO on September 30, 2026, and no OREO on June 30, 2026 or September 30, 2025. The OREO increase is from the carrying values of two closed banking offices driven by the one-time event of the branch consolidation. Non-accrual loans as a percentage of total loans decreased from prior period and prior year to 0.31% on September 30, 2026. NPAs increased by $647 thousand to $5.4 million on September 30, 2026, compared to $4.7 million on June 30, 2026, but decreased by $318 thousand from $5.7 million on September 30, 2025. Loans past due over 90 days or more and still accruing interest were $0 on September 30, 2026 and on June 30, 2026, and $388 thousand on September 30, 2025. Loans past-due 30-89 days and still accruing interest increased to $3.4 million, or 0.23% of total loans on September 30, 2026, $2.5 million, or 0.17% of total loans on June 30, 2026, and $3.6 million, or 0.25%, of total loans on September 30, 2025. The health care provider portfolio balance continues to decline with $7.9 million in loan balances and $3.0 million in remaining unamortized premiums. The portfolio has loans totaling $1.4 million currently on non-accrual that are specifically reserved at $1.0 million. CAPITAL During the third quarter of 2026, the Company declared and paid cash dividends of $0.17 per common share, compared to $0.17 in the second quarter of 2026 and $0.155 in the third quarter of 2025. Tangible book value per share(1) grew to $19.94 on September 30, 2026, from $19.71 per share on June 30, 2026, and $18.26 on September 30, 2025. The following table provides capital ratios and values for the periods ended: First National Corporation (2) | ​ | Sept 30, 2026 | ​ | ​ | Jun 30, 2026 | ​ | ​ | Sept 30, 2025 | ​ Total risk-based capital ratio | ​ | ​ | 15.14 | % | ​ | ​ | 14.81 | % | ​ | ​ | 15.15 | % Tier 1 risk-based capital ratio | ​ | ​ | 13.59 | % | ​ | ​ | 13.22 | % | ​ | ​ | 12.83 | % Common equity Tier 1 capital ratio | ​ | ​ | 12.98 | % | ​ | ​ | 12.60 | % | ​ | ​ | 12.20 | % Leverage ratio | ​ | ​ | 10.00 | % | ​ | ​ | 9.62 | % | ​ | ​ | 9.24 | % Tangible common equity to tangible assets (1) | ​ | ​ | 8.77 | % | ​ | ​ | 8.65 | % | ​ | ​ | 8.17 | % Tangible book value per share (1) | ​ | $ | 19.94 | ​ | ​ | $ | 19.71 | ​ | ​ | $ | 18.26 | ​ ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ First Bank | ​ | Sept 30, 2026 | ​ | ​ | Jun 30, 2026 | ​ | ​ | Sept 30, 2025 | ​ Total risk-based capital ratio (3) | ​ | ​ | 14.19 | % | ​ | ​ | 13.91 | % | ​ | ​ | 13.40 | % Tier 1 risk-based capital ratio (3) | ​ | ​ | 13.20 | % | ​ | ​ | 12.87 | % | ​ | ​ | 12.36 | % Common equity Tier 1 capital ratio (3) | ​ | ​ | 13.20 | % | ​ | ​ | 12.87 | % | ​ | ​ | 12.36 | % Leverage ratio (3) | ​ | ​ | 9.77 | % | ​ | ​ | 9.44 | % | ​ | ​ | 8.88 | % Tangible common equity to tangible assets (1) | ​ | ​ | 8.82 | % | ​ | ​ | 8.75 | % | ​ | ​ | 8.18 | % | | | | | | | | | | | | ABOUT FIRST NATIONAL CORPORATION First National Corporation (NASDAQ: FXNC) is the parent company and bank holding company of First Bank, a community bank that first opened for business in 1907 in Strasburg, Virginia. The Bank offers loan and deposit products and services through its bankers, consumer and business mobile banking platforms, a network of ATMs located throughout its market area, a loan production office, a customer service center in a retirement community, and twenty-eight banking office locations located throughout the Shenandoah Valley, the Roanoke Valley, the Richmond MSA, and the south-central regions of Virginia. In addition to providing traditional banking services, the Bank operates a wealth management division under the name First Bank Wealth Management. First Bank also owns First Bank Financial Services, Inc., which owns an interest in a title insurance company. NON-GAAP FINANCIAL MEASURES In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include adjusted operating net income, adjusted operating non-interest expense, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision pre-tax earnings, adjusted pre-provision pre-tax earnings, fully taxable equivalent interest income, the fully tax-equivalent net interest margin, the efficiency ratio, tangible book value per share, and tangible common equity to tangible assets. The Company believes certain non-GAAP financial measures enhance the understanding of its business and performance. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is included at the end of this release. FORWARD-LOOKING STATEMENTS Certain information contained in this discussion may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company's plans, objectives, strategies, expectations and intentions, including with respect to the Company's branch sales and other branch optimization initiatives, and other statements that are not historical facts, and other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "will," "continue," and "projects," as well as similar expressions. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that the Company will achieve the anticipated benefits of its plans and strategies or that its actual results, performance, or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties and speak only as of the date of this release. The Company undertakes no obligations to update or revise any forward-looking statement, except as required by law. For details on factors that could affect expectations, future events, or results, see the risk factors and other cautionary language included in First National Corporation's Annual Report on Form 10-K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission (the "SEC"). CONTACTS Scott C. Harvard | | Brad E. Schwartz President and CEO | | Executive Vice President and CFO (540) 545-7695 | | (540) 465-6130 [email protected] | | [email protected] | | FIRST NATIONAL CORPORATION Performance Summary (in thousands) | (unaudited) | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | For the Three Months Ended | | | For the Nine Months Ended | | | Sept 30, 2026 | | | Jun 30, 2026 | | | Sept 30, 2025 | | | Sept 30, 2026 | | | Sept 30, 2025 | Income Statement | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Interest and dividend income | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Interest and fees on loans | | $ | 23,496 | | | $ | 22,145 | | | $ | 21,430 | | | $ | 66,658 | | | $ | 63,661 | Interest on deposits in banks | | | 1,169 | | | $ | 1,288 | | | | 1,733 | | | | 3,627 | | | | 5,295 | Interest on federal funds sold | | | — | | | | — | | | | 1 | | | | — | | | | 40 | Taxable interest on securities | | | 1,899 | | | | 1,843 | | | | 1,562 | | | | 5,528 | | | | 4,189 | Tax-exempt interest on securities | | | 292 | | | | 293 | | | | 296 | | | | 877 | | | | 894 | Dividends | | | 64 | | | | 64 | | | | 65 | | | | 192 | | | | 194 | Total interest and dividend income | | $ | 26,920 | | | $ | 25,633 | | | $ | 25,087 | | | $ | 76,882 | | | $ | 74,273 | Interest expense | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Interest on deposits | | $ | 5,471 | | | $ | 5,410 | | | $ | 6,246 | | | $ | 16,295 | | | $ | 18,363 | Interest on subordinated debt | | | 171 | | | | 170 | | | | 479 | | | | 509 | | | | 1,414 | Interest on junior subordinated debt | | | 69 | | | | 69 | | | | 67 | | | | 204 | | | | 199 | Interest on other borrowings | | | 3 | | | | 3 | | | | — | | | | 11 | | | | 3 | Total interest expense | | $ | 5,714 | | | $ | 5,652 | | | $ | 6,792 | | | $ | 17,019 | | | $ | 19,979 | Net interest income | | $ | 21,206 | | | $ | 19,981 | | | $ | 18,295 | | | $ | 59,863 | | | $ | 54,294 | Provision for credit losses | | | — | | | | 426 | | | | 193 | | | | 876 | | | | 1,936 | Net interest income after provision for credit losses | | $ | 21,206 | | | $ | 19,555 | | | $ | 18,102 | | | $ | 58,987 | | | $ | 52,358 | Noninterest income | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Service charges on deposit accounts | | $ | 940 | | | $ | 913 | | | $ | 985 | | | $ | 2,777 | | | $ | 3,018 | ATM and check card fees | | | 1,143 | | | | 1,155 | | | | 1,336 | | | | 3,345 | | | | 3,460 | Wealth management fees | | | 1,009 | | | | 902 | | | | 910 | | | | 2,822 | | | | 2,675 | Fees for other customer services | | | 334 | | | | 295 | | | | 407 | | | | 916 | | | | 895 | Brokered mortgage fees | | | 79 | | | | 153 | | | | 166 | | | | 347 | | | | 459 | Income from bank owned life insurance | | | 289 | | | | 241 | | | | 284 | | | | 789 | | | | 761 | Net (loss) gains on securities available for sale | | | — | | | | — | | | | — | | | | 8 | | | | — | Net gains on sale of loans held for sale | | | 46 | | | | 4 | | | | 5 | | | | 51 | | | | 5 | Bargain purchase gain | | | — | | | | — | | | | 304 | | | | — | | | | 304 | Net gain on subordinated debt payoff | | | — | | | | — | | | | — | | | | — | | | | 80 | (Loss) gain on disposal of premises and equipment | | | (12 | ) | | | 56 | | | | — | | | | 44 | | | | — | Other operating income | | | 256 | | | | 299 | | | | 103 | | | | 827 | | | | 343 | Total noninterest income | | $ | 4,084 | | | $ | 4,018 | | | $ | 4,500 | | | $ | 11,926 | | | $ | 12,000 | Noninterest expense | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Salaries and employee benefits | | $ | 9,341 | | | $ | 9,006 | | | $ | 8,487 | | | $ | 27,329 | | | $ | 25,209 | Occupancy | | | 1,002 | | | | 974 | | | | 1,025 | | | | 2,948 | | | | 3,038 | Equipment | | | 1,067 | | | | 1,131 | | | | 1,056 | | | | 3,291 | | | | 3,138 | Marketing | | | 353 | | | | 476 | | | | 324 | | | | 1,170 | | | | 830 | Supplies | | | 199 | | | | 192 | | | | 158 | | | | 537 | | | | 573 | Legal and professional fees | | | 646 | | | | 742 | | | | 660 | | | | 2,076 | | | | 1,775 | ATM and check card expense | | | 629 | | | | 608 | | | | 569 | | | | 1,808 | | | | 1,545 | FDIC assessment | | | 254 | | | | 224 | | | | 305 | | | | 705 | | | | 1,034 | Bank franchise tax | | | 395 | | | | 395 | | | | 350 | | | | 1,170 | | | | 1,015 | Data processing expense | | | 435 | | | | 435 | | | | 495 | | | | 1,264 | | | | 1,761 | Core deposit intangible amortization expense | | | 434 | | | | 433 | | | | 442 | | | | 1,301 | | | | 1,325 | Other real estate owned expense (income), net | | | 212 | | | | — | | | | — | | | | 212 | | | | (7 | ) Net loss on disposal of premises and equipment | | | — | | | | — | | | | (23 | ) | | | — | | | | (16 | ) Merger expense | | | — | | | | — | | | | — | | | | — | | | | 2,032 | Other operating expense | | | 1,729 | | | | 1,821 | | | | 1,934 | | | | 5,304 | | | | 6,056 | Total noninterest expense | | $ | 16,696 | | | $ | 16,437 | | | $ | 15,782 | | | $ | 49,115 | | | $ | 49,308 | Income before income taxes | | $ | 8,594 | | | $ | 7,136 | | | $ | 6,820 | | | $ | 21,798 | | | $ | 15,050 | Income tax expense | | | 1,694 | | | | 1,393 | | | | 1,270 | | | | 4,268 | | | | 2,851 | Net income | | $ | 6,900 | | | $ | 5,743 | | | $ | 5,550 | | | $ | 17,530 | | | $ | 12,199 | | | | | | | | | | | | | | | | | | | | | FIRST NATIONAL CORPORATION Performance Summary (in thousands, except share and per share data) | (unaudited) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ ​ | ​ | At or for the Three Months Ended | ​ | ​ | At or for the Nine Months Ended | ​ ​ | ​ | Sept 30, 2026 | ​ | ​ | Jun 30, 2026 | ​ | ​ | Sept 30, 2025 | ​ | ​ | Sept 30, 2026 | ​ | ​ | Sept 30, 2025 | ​ Common Share and Per Common Share Data | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Earnings per common share, basic | ​ | $ | 0.76 | ​ | ​ | $ | 0.64 | ​ | ​ | $ | 0.62 | ​ | ​ | $ | 1.94 | ​ | ​ | $ | 1.36 | ​ Adjusted earnings per common share, basic (1) | ​ | $ | 0.76 | ​ | ​ | $ | 0.64 | ​ | ​ | $ | 0.58 | ​ | ​ | $ | 1.94 | ​ | ​ | $ | 1.51 | ​ Weighted average shares, basic | ​ | ​ | 9,050,059 | ​ | ​ | ​ | 9,041,314 | ​ | ​ | ​ | 8,999,153 | ​ | ​ | ​ | 9,041,056 | ​ | ​ | ​ | 8,988,692 | ​ Earnings per common share, diluted | ​ | $ | 0.76 | ​ | ​ | $ | 0.63 | ​ | ​ | $ | 0.62 | ​ | ​ | $ | 1.93 | ​ | ​ | $ | 1.35 | ​ Adjusted earnings per common share, diluted (1) | ​ | $ | 0.76 | ​ | ​ | $ | 0.63 | ​ | ​ | $ | 0.58 | ​ | ​ | $ | 1.93 | ​ | ​ | $ | 1.50 | ​ Weighted average shares, diluted | ​ | ​ | 9,084,052 | ​ | ​ | ​ | 9,068,347 | ​ | ​ | ​ | 9,023,185 | ​ | ​ | ​ | 9,066,673 | ​ | ​ | ​ | 9,010,432 | ​ Shares outstanding at period end | ​ | ​ | 9,057,224 | ​ | ​ | ​ | 9,042,629 | ​ | ​ | ​ | 9,009,209 | ​ | ​ | ​ | 9,057,224 | ​ | ​ | ​ | 9,009,209 | ​ Tangible book value per share at period end (1) | ​ | $ | 19.94 | ​ | ​ | $ | 19.71 | ​ | ​ | $ | 18.26 | ​ | ​ | $ | 19.94 | ​ | ​ | $ | 18.26 | ​ Market price per share at period end | ​ | $ | 29.38 | ​ | ​ | $ | 30.02 | ​ | ​ | $ | 22.68 | ​ | ​ | $ | 29.38 | ​ | ​ | $ | 22.68 | ​ Cash dividends declared | ​ | $ | 0.170 | ​ | ​ | $ | 0.170 | ​ | ​ | $ | 0.155 | ​ | ​ | $ | 0.510 | ​ | ​ | $ | 0.465 | ​ ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Key Performance Ratios | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Return on average assets (4) | ​ | ​ | 1.32 | % | ​ | ​ | 1.11 | % | ​ | ​ | 1.09 | % | ​ | ​ | 1.15 | % | ​ | ​ | 0.81 | % Adjusted return on average assets (1)(4) | ​ | ​ | 1.32 | % | ​ | ​ | 1.11 | % | ​ | ​ | 1.03 | % | ​ | ​ | 1.15 | % | ​ | ​ | 0.90 | % Return on average equity (4) | ​ | ​ | 14.02 | % | ​ | ​ | 12.03 | % | ​ | ​ | 12.43 | % | ​ | ​ | 12.26 | % | ​ | ​ | 9.47 | % Adjusted return on average equity (1)(4) | ​ | ​ | 14.02 | % | ​ | ​ | 12.03 | % | ​ | ​ | 11.75 | % | ​ | ​ | 12.26 | % | ​ | ​ | 10.50 | % Net interest margin (4) | ​ | ​ | 4.36 | % | ​ | ​ | 4.13 | % | ​ | ​ | 3.83 | % | ​ | ​ | 4.17 | % | ​ | ​ | 3.83 | % Net interest margin fully tax equivalent (1)(4) | ​ | ​ | 4.38 | % | ​ | ​ | 4.15 | % | ​ | ​ | 3.84 | % | ​ | ​ | 4.19 | % | ​ | ​ | 3.85 | % Efficiency ratio (1) | ​ | ​ | 63.21 | % | ​ | ​ | 66.59 | % | ​ | ​ | 67.97 | % | ​ | ​ | 66.11 | % | ​ | ​ | 69.46 | % ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Average Balances | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Average assets | ​ | $ | 2,065,812 | ​ | ​ | $ | 2,079,467 | ​ | ​ | $ | 2,022,958 | ​ | ​ | $ | 2,047,838 | ​ | ​ | $ | 2,021,263 | ​ Average earning assets | ​ | ​ | 1,930,945 | ​ | ​ | ​ | 1,941,385 | ​ | ​ | ​ | 1,897,328 | ​ | ​ | ​ | 1,925,959 | ​ | ​ | ​ | 1,892,933 | ​ Average deposits | ​ | ​ | 1,843,968 | ​ | ​ | ​ | 1,861,554 | ​ | ​ | ​ | 1,806,310 | ​ | ​ | ​ | 1,829,463 | ​ | ​ | ​ | 1,808,016 | ​ Average noninterest deposits to total average deposits | ​ | ​ | 28.98 | % | ​ | ​ | 29.15 | % | ​ | ​ | 29.13 | % | ​ | ​ | 28.32 | % | ​ | ​ | 29.35 | % Average shareholders' equity | ​ | $ | 195,262 | ​ | ​ | $ | 191,465 | ​ | ​ | $ | 177,130 | ​ | ​ | ​ | 191,909 | ​ | ​ | $ | 172,297 | ​ ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Asset Quality | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Allowance for credit losses on loans to nonperforming assets | ​ | ​ | 267.70 | % | ​ | ​ | 315.45 | % | ​ | ​ | 253.37 | % | ​ | ​ | 267.70 | % | ​ | ​ | 253.37 | % Allowance for credit losses on loans to period end loans | ​ | ​ | 0.96 | % | ​ | ​ | 1.00 | % | ​ | ​ | 1.01 | % | ​ | ​ | 0.96 | % | ​ | ​ | 1.01 | % Nonperforming assets to period end loans | ​ | ​ | 0.36 | % | ​ | ​ | 0.32 | % | ​ | ​ | 0.40 | % | ​ | ​ | 0.36 | % | ​ | ​ | 0.40 | % Nonperforming assets to total assets | ​ | ​ | 0.26 | % | ​ | ​ | 0.23 | % | ​ | ​ | 0.28 | % | ​ | ​ | 0.26 | % | ​ | ​ | 0.28 | % Non-accrual loans to period end loans | ​ | ​ | 0.31 | % | ​ | ​ | 0.32 | % | ​ | ​ | 0.40 | % | ​ | ​ | 0.31 | % | ​ | ​ | 0.40 | % Non-accrual loans to total assets | ​ | ​ | 0.22 | % | ​ | ​ | 0.23 | % | ​ | ​ | 0.28 | % | ​ | ​ | 0.22 | % | ​ | ​ | 0.28 | % Loan charge-offs | ​ | $ | 728 | ​ | ​ | $ | 266 | ​ | ​ | $ | 1,027 | ​ | ​ | $ | 1,703 | ​ | ​ | $ | 4,052 | ​ Loan recoveries | ​ | ​ | 134 | ​ | ​ | ​ | 161 | ​ | ​ | ​ | 88 | ​ | ​ | ​ | 462 | ​ | ​ | ​ | 264 | ​ Net charge-offs | ​ | ​ | 594 | ​ | ​ | ​ | 105 | ​ | ​ | ​ | 939 | ​ | ​ | ​ | 1,241 | ​ | ​ | ​ | 3,788 | ​ Non-accrual loans | ​ | ​ | 4,637 | ​ | ​ | ​ | 4,737 | ​ | ​ | ​ | 5,702 | ​ | ​ | ​ | 4,637 | ​ | ​ | ​ | 5,702 | ​ Other real estate owned, net | ​ | ​ | 747 | ​ | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | 747 | ​ | ​ | ​ | — | ​ Nonperforming assets | ​ | ​ | 5,384 | ​ | ​ | ​ | 4,737 | ​ | ​ | ​ | 5,702 | ​ | ​ | ​ | 5,384 | ​ | ​ | ​ | 5,702 | ​ Loans 30 to 89 days past due, accruing | ​ | ​ | 3,408 | ​ | ​ | ​ | 2,534 | ​ | ​ | ​ | 3,580 | ​ | ​ | ​ | 3,408 | ​ | ​ | ​ | 3,580 | ​ Loans over 90 days past due, accruing | ​ | ​ | — | ​ | ​ | ​ | — | ​ | ​ | ​ | 388 | ​ | ​ | ​ | — | ​ | ​ | ​ | 388 | ​ ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Capital Ratios (5) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ Total capital | ​ | $ | 215,522 | ​ | ​ | $ | 210,436 | ​ | ​ | $ | 194,910 | ​ | ​ | $ | 215,522 | ​ | ​ | $ | 194,910 | ​ Tier 1 capital | ​ | ​ | 200,457 | ​ | ​ | ​ | 194,778 | ​ | ​ | ​ | 179,781 | ​ | ​ | ​ | 200,457 | ​ | ​ | ​ | 179,781 | ​ Common equity Tier 1 capital | ​ | ​ | 200,457 | ​ | ​ | ​ | 194,778 | ​ | ​ | ​ | 179,781 | ​ | ​ | ​ | 200,457 | ​ | ​ | ​ | 179,781 | ​ Total capital to risk-weighted assets (3) | ​ | ​ | 14.19 | % | ​ | ​ | 13.91 | % | ​ | ​ | 13.40 | % | ​ | ​ | 14.19 | % | ​ | ​ | 13.40 | % Tier 1 capital to risk-weighted assets (3) | ​ | ​ | 13.20 | % | ​ | ​ | 12.87 | % | ​ | ​ | 12.36 | % | ​ | ​ | 13.20 | % | ​ | ​ | 12.36 | % Common equity Tier 1 capital / risk-weighted assets (3) | ​ | ​ | 13.20 | % | ​ | ​ | 12.87 | % | ​ | ​ | 12.36 | % | ​ | ​ | 13.20 | % | ​ | ​ | 12.36 | % Leverage ratio (3) | ​ | ​ | 9.77 | % | ​ | ​ | 9.44 | % | ​ | ​ | 8.88 | % | ​ | ​ | 9.77 | % | ​ | ​ | 8.88 | % | | | | | | | | | | | | | | | | | | | | FIRST NATIONAL CORPORATION Performance Summary (in thousands) | (unaudited) | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | For the Period Ended | | | Sept 30, 2026 | | | Jun 30, 2026 | | | Mar 31, 2026 | | | Dec 31, 2025 | | | Sept 30, 2025 | Balance Sheet | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Cash and due from banks | | $ | 25,996 | | | $ | 23,294 | | | $ | 22,624 | | | $ | 20,836 | | | $ | 23,716 | Interest-bearing deposits in banks | | | 141,580 | | | | 142,854 | | | | 165,185 | | | | 140,074 | | | | 165,601 | Cash and cash equivalents | | $ | 167,576 | | | $ | 166,148 | | | $ | 187,809 | | | $ | 160,910 | | | $ | 189,317 | Securities available for sale, at fair value | | | 218,668 | | | | 227,792 | | | | 217,655 | | | | 217,538 | | | | 196,476 | Securities held to maturity, at amortized cost (net of allowance for credit losses) | | | 82,513 | | | | 89,392 | | | | 101,261 | | | | 102,872 | | | | 104,608 | Restricted securities, at cost | | | 5,642 | | | | 5,642 | | | | 5,642 | | | | 5,624 | | | | 4,436 | Loans held for sale | | | 262 | | | | — | | | | — | | | | — | | | | — | Loans, net of allowance for credit losses | | | 1,485,813 | | | | 1,472,455 | | | | 1,449,708 | | | | 1,435,026 | | | | 1,418,750 | Other real estate owned, net | | | 747 | | | | — | | | | — | | | | — | | | | — | Premises and equipment, net | | | 33,162 | | | | 34,021 | | | | 34,327 | | | | 34,561 | | | | 34,107 | Accrued interest receivable | | | 6,732 | | | | 6,517 | | | | 6,656 | | | | 6,467 | | | | 6,238 | Bank owned life insurance | | | 39,371 | | | | 39,077 | | | | 38,837 | | | | 38,577 | | | | 38,652 | Goodwill | | | 3,030 | | | | 3,030 | | | | 3,030 | | | | 3,030 | | | | 3,030 | Core deposit intangibles, net | | | 11,918 | | | | 12,352 | | | | 12,785 | | | | 13,219 | | | | 13,661 | Other assets | | | 19,426 | | | | 19,219 | | | | 18,113 | | | | 20,154 | | | | 21,479 | Total assets | | $ | 2,074,860 | | | $ | 2,075,645 | | | $ | 2,075,823 | | | $ | 2,037,978 | | | $ | 2,030,754 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Noninterest-bearing demand deposits | | $ | 520,058 | | | $ | 520,548 | | | $ | 524,323 | | | $ | 509,874 | | | $ | 511,482 | Savings and interest-bearing demand deposits | | | 951,409 | | | | 953,639 | | | | 953,399 | | | | 926,579 | | | | 931,241 | Time deposits | | | 357,273 | | | | 356,943 | | | | 359,570 | | | | 363,095 | | | | 366,860 | Total deposits | | $ | 1,828,740 | | | $ | 1,831,130 | | | $ | 1,837,292 | | | $ | 1,799,548 | | | $ | 1,809,583 | Other borrowings | | | 25,000 | | | | 25,000 | | | | 25,000 | | | | 25,000 | | | | — | Subordinated debt, net | | | 8,537 | | | | 8,460 | | | | 8,385 | | | | 8,312 | | | | 21,241 | Junior subordinated debt | | | 9,279 | | | | 9,279 | | | | 9,279 | | | | 9,279 | | | | 9,279 | Accrued interest payable and other liabilities | | | 7,751 | | | | 8,188 | | | | 7,305 | | | | 9,643 | | | | 9,442 | Total liabilities | | $ | 1,879,307 | | | $ | 1,882,057 | | | $ | 1,887,261 | | | $ | 1,851,782 | | | $ | 1,849,545 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Common stock | | | 11,320 | | | | 11,303 | | | | 11,301 | | | | 11,282 | | | | 11,262 | Surplus | | | 79,284 | | | | 78,667 | | | | 78,400 | | | | 78,216 | | | | 78,187 | Retained earnings | | | 121,854 | | | | 116,494 | | | | 112,288 | | | | 108,937 | | | | 104,964 | Accumulated other comprehensive (loss), net | | | (16,905 | ) | | | (12,876 | ) | | | (13,427 | ) | | | (12,239 | ) | | | (13,204 | ) Total shareholders' equity | | $ | 195,553 | | | $ | 193,588 | | | $ | 188,562 | | | $ | 186,196 | | | $ | 181,209 | Total liabilities and shareholders' equity | | $ | 2,074,860 | | | $ | 2,075,645 | | | $ | 2,075,823 | | | $ | 2,037,978 | | | $ | 2,030,754 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Loan Portfolio | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Real estate loans: | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Construction and land development | | $ | 99,991 | | | $ | 113,289 | | | $ | 97,487 | | | $ | 88,424 | | | $ | 78,470 | Secured by farmland | | | 10,199 | | | | 10,348 | | | | 11,554 | | | | 11,879 | | | | 12,812 | Secured by 1-4 family residential | | | 526,563 | | | | 522,763 | | | | 520,821 | | | | 527,282 | | | | 533,458 | Other real estate loans | | | 739,805 | | | | 709,772 | | | | 701,013 | | | | 685,099 | | | | 671,723 | Commercial and industrial loans (except those secured by real estate) | | | 106,134 | | | | 113,205 | | | | 114,517 | | | | 117,256 | | | | 117,047 | Consumer installment loans | | | 7,673 | | | | 8,105 | | | | 8,060 | | | | 8,419 | | | | 8,358 | Deposit overdrafts | | | 647 | | | | 478 | | | | 547 | | | | 543 | | | | 535 | All other loans | | | 9,214 | | | | 9,438 | | | | 10,407 | | | | 10,843 | | | | 10,794 | Total loans | | $ | 1,500,226 | | | $ | 1,487,398 | | | $ | 1,464,406 | | | $ | 1,449,745 | | | $ | 1,433,197 | Allowance for credit losses | | | (14,413 | ) | | | (14,943 | ) | | | (14,698 | ) | | | (14,719 | ) | | | (14,447 | ) Loans, net | | $ | 1,485,813 | | | $ | 1,472,455 | | | $ | 1,449,708 | | | $ | 1,435,026 | | | $ | 1,418,750 | | | | | | | | | | | | | | | | | | | | | FIRST NATIONAL CORPORATION Average Balances, Yields and Rates Paid (in thousands) | (unaudited) | | Three Months Ended | | | September 30, 2026 | | | June 30, 2026 | | | September 30, 2025 | | | Average Balance | | | Interest Income/ Expense | | Yield/ Rate (7) | | | Average Balance | | | Interest Income/ Expense | | Yield/ Rate (7) | | | Average Balance | | | Interest Income/ Expense | | Yield/ Rate (7) | Assets | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Securities: | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Taxable | | $ | 250,906 | | | $ | 1,899 | | 3.00 | % | | $ | 256,750 | | | $ | 1,843 | | 2.88 | % | | $ | 242,797 | | | $ | 1,562 | | 2.55 | % Tax-exempt (1) | | | 62,745 | | | | 370 | | 2.33 | % | | | 62,353 | | | | 372 | | 2.39 | % | | | 51,493 | | | | 375 | | 2.89 | % Restricted | | | 4,468 | | | | 64 | | 5.66 | % | | | 4,468 | | | | 64 | | 5.76 | % | | | 4,436 | | | | 65 | | 5.80 | % Total securities | | $ | 318,119 | | | $ | 2,333 | | 2.91 | % | | $ | 323,571 | | | $ | 2,279 | | 2.82 | % | | $ | 298,726 | | | $ | 2,002 | | 2.66 | % Loans: | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Taxable | | $ | 1,483,047 | | | $ | 23,452 | | 6.27 | % | | $ | 1,473,064 | | | $ | 22,103 | | 6.02 | % | | $ | 1,437,946 | | | $ | 21,386 | | 5.90 | % Tax-exempt (1) | | | 3,463 | | | | 55 | | 6.34 | % | | | 3,460 | | | | 54 | | 6.31 | % | | | 3,473 | | | | 55 | | 6.29 | % Total loans | | $ | 1,486,510 | | | $ | 23,507 | | 6.27 | % | | $ | 1,476,524 | | | $ | 22,157 | | 6.02 | % | | $ | 1,441,419 | | | $ | 21,441 | | 5.90 | % Federal funds sold | | | 13 | | | | — | | — | | | | 1 | | | | — | | — | | | | 55 | | | | — | | — | Interest-bearing deposits with other institutions | | | 126,303 | | | | 1,169 | | 3.67 | % | | | 141,289 | | | | 1,287 | | 3.66 | % | | | 157,128 | | | | 1,734 | | 4.38 | % Total earning assets | | $ | 1,930,945 | | | $ | 27,009 | | 5.55 | % | | $ | 1,941,385 | | | $ | 25,723 | | 5.31 | % | | $ | 1,897,328 | | | $ | 25,177 | | 5.26 | % Less: allowance for credit losses on loans | | | (15,193 | ) | | | | ​ | | ​ | | | (15,039 | ) | | | | ​ | | ​ | | | (15,378 | ) | | | | ​ | | ​ Total non-earning assets | | | 150,060 | | | | | ​ | | ​ | | | 153,121 | | | | | ​ | | ​ | | | 141,008 | | | | | ​ | | ​ Total assets | | $ | 2,065,812 | | | | | ​ | | ​ | | $ | 2,079,467 | | | | | ​ | | ​ | | $ | 2,022,958 | | | | | ​ | | ​ Liabilities and Shareholders' Equity | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Interest bearing deposits: | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Checking | | $ | 409,383 | | | $ | 1,138 | | 1.10 | % | | $ | 416,041 | | | $ | 1,101 | | 1.06 | % | | $ | 376,344 | | | $ | 1,256 | | 1.32 | % Regular savings | | | 210,192 | | | | 173 | | 0.33 | % | | | 212,451 | | | | 171 | | 0.32 | % | | | 209,909 | | | | 208 | | 0.39 | % Money market accounts | | | 332,549 | | | | 1,582 | | 1.89 | % | | | 335,904 | | | | 1,573 | | 1.88 | % | | | 330,115 | | | | 1,882 | | 2.26 | % Time deposits | | | 357,452 | | | | 2,578 | | 2.86 | % | | | 354,558 | | | | 2,565 | | 2.90 | % | | | 363,702 | | | | 2,900 | | 3.16 | % Total interest-bearing deposits | | $ | 1,309,576 | | | $ | 5,471 | | 1.66 | % | | $ | 1,318,954 | | | $ | 5,410 | | 1.65 | % | | $ | 1,280,070 | | | $ | 6,246 | | 1.94 | % Federal funds purchased | | | 5 | | | | — | | — | | | | 2 | | | | — | | — | | | | — | | | | — | | — | Subordinated debt | | | 8,498 | | | | 171 | | 8.02 | % | | | 8,422 | | | | 170 | | 8.09 | % | | | 21,304 | | | | 479 | | 8.92 | % Junior subordinated debt | | | 9,279 | | | | 69 | | 2.95 | % | | | 9,279 | | | | 69 | | 2.96 | % | | | 9,279 | | | | 67 | | 2.83 | % Other borrowings | | | 272 | | | | 3 | | 4.19 | % | | | 275 | | | | 3 | | 3.93 | % | | | — | | | | — | | — | Total interest-bearing liabilities | | $ | 1,327,630 | | | $ | 5,714 | | 1.71 | % | | $ | 1,336,932 | | | $ | 5,652 | | 1.70 | % | | $ | 1,310,653 | | | $ | 6,792 | | 2.06 | % Non-interest bearing liabilities | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Demand deposits | | | 534,392 | | | | | ​ | | ​ | | | 542,600 | | | | | ​ | | ​ | | | 526,240 | | | | | ​ | | ​ Other liabilities | | | 8,528 | | | | | ​ | | ​ | | | 8,470 | | | | | ​ | | ​ | | | 8,935 | | | | | ​ | | ​ Total liabilities | | $ | 1,870,550 | | | | | ​ | | ​ | | $ | 1,888,002 | | | | | ​ | | ​ | | $ | 1,845,828 | | | | | ​ | | ​ Shareholders' equity | | | 195,262 | | | | | ​ | | ​ | | | 191,465 | | | | | ​ | | ​ | | | 177,130 | | | | | ​ | | ​ Total liabilities and Shareholders' equity | | $ | 2,065,812 | | | | | ​ | | ​ | | $ | 2,079,467 | | | | | ​ | | ​ | | $ | 2,022,958 | | | | | ​ | | ​ Net interest income (1) | | | | ​ | | $ | 21,295 | | | ​ | | | | ​ | | $ | 20,071 | | | ​ | | | | ​ | | $ | 18,385 | | | ​ Interest rate spread (1) | | | | ​ | | | | ​ | 3.84 | % | | | | ​ | | | | ​ | 3.61 | % | | | | ​ | | | | ​ | 3.21 | % Cost of funds | | | | ​ | | | | ​ | 1.22 | % | | | | ​ | | | | ​ | 1.21 | % | | | | ​ | | | | ​ | 1.47 | % Interest expense as a percent of average earning assets | | | | ​ | | | | ​ | 1.17 | % | | | | ​ | | | | ​ | 1.17 | % | | | | ​ | | | | ​ | 1.42 | % Net interest margin FTE (1) | | | | ​ | | | | ​ | 4.38 | % | | | | ​ | | | | ​ | 4.15 | % | | | | ​ | | | | ​ | 3.84 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | FIRST NATIONAL CORPORATION Average Balances, Yields and Rates Paid (in thousands) | (unaudited) | | Nine Months Ended | | | September 30, 2026 | | | September 30, 2025 | | | Average Balance | | | Interest Income/ Expense | | Yield / Rate (7) | | | Average Balance | | | Interest Income/ Expense | | Yield / Rate (7) | Assets | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Securities: | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Taxable | | $ | 255,719 | | | $ | 5,528 | | 2.90 | % | | $ | 227,643 | | | $ | 4,189 | | 2.46 | % Tax-exempt (1) | | | 62,225 | | | | 1,110 | | 2.39 | % | | | 51,380 | | | | 1,132 | | 2.95 | % Restricted | | | 4,467 | | | | 192 | | 5.78 | % | | | 4,353 | | | | 194 | | 5.96 | % Total securities | | $ | 322,411 | | | $ | 6,830 | | 2.84 | % | | $ | 283,376 | | | $ | 5,515 | | 2.60 | % Loans: | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Taxable | | $ | 1,467,572 | | | $ | 66,529 | | 6.08 | % | | $ | 1,444,739 | | | $ | 63,513 | | 5.88 | % Tax-exempt (1) | | | 3,468 | | | | 163 | | 6.34 | % | | | 4,117 | | | | 187 | | 6.08 | % Total loans | | $ | 1,471,040 | | | $ | 66,692 | | 6.08 | % | | $ | 1,448,856 | | | $ | 63,700 | | 5.88 | % Federal funds sold | | | 17 | | | | — | | — | | | | 1,182 | | | | 40 | | 4.52 | % Interest-bearing deposits with other institutions | | | 132,491 | | | | 3,627 | | 3.67 | % | | | 159,519 | | | | 5,295 | | 4.44 | % Total earning assets | | $ | 1,925,959 | | | $ | 77,149 | | 5.38 | % | | $ | 1,892,933 | | | $ | 74,550 | | 5.27 | % Less: allowance for credit losses on loans | | | (15,091 | ) | | | | ​ | | ​ | | | (15,624 | ) | | | | ​ | | ​ Total non-earning assets | | | 136,970 | | | | | ​ | | ​ | | | 143,954 | | | | | ​ | | ​ Total assets | | $ | 2,047,838 | | | | | ​ | | ​ | | $ | 2,021,263 | | | | | ​ | | ​ Liabilities and Shareholders' Equity | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Interest bearing deposits: | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Checking | | $ | 409,527 | | | $ | 3,317 | | 1.09 | % | | $ | 370,045 | | | $ | 3,696 | | 1.34 | % Regular savings | | | 211,231 | | | | 521 | | 0.33 | % | | | 211,635 | | | | 574 | | 0.36 | % Money market accounts | | | 333,069 | | | | 4,647 | | 1.87 | % | | | 332,864 | | | | 5,713 | | 2.30 | % Time deposits | | | 357,495 | | | | 7,810 | | 2.93 | % | | | 362,860 | | | | 8,380 | | 3.09 | % Total interest-bearing deposits | | $ | 1,311,322 | | | $ | 16,295 | | 1.67 | % | | $ | 1,277,404 | | | $ | 18,363 | | 1.92 | % Federal funds purchased | | | 9 | | | | — | | — | | | | 1 | | | | — | | — | Subordinated debt | | | 8,423 | | | | 509 | | 8.11 | % | | | 22,500 | | | | 1,414 | | 8.40 | % Junior subordinated debt | | | 9,279 | | | | 204 | | 2.95 | % | | | 9,279 | | | | 199 | | 2.86 | % Other borrowings | | | 366 | | | | 11 | | 4.01 | % | | | 92 | | | | 3 | | 4.63 | % Total interest-bearing liabilities | | $ | 1,329,399 | | | $ | 17,019 | | 1.72 | % | | $ | 1,309,276 | | | $ | 19,979 | | 2.04 | % Non-interest bearing liabilities | | | | ​ | | | | ​ | | ​ | | | | ​ | | | | ​ | | ​ Demand deposits | | | 518,141 | | | | | ​ | | ​ | | | 530,612 | | | | | ​ | | ​ Other liabilities | | | 8,389 | | | | | ​ | | ​ | | | 9,078 | | | | | ​ | | ​ Total liabilities | | $ | 1,855,929 | | | | | ​ | | ​ | | $ | 1,848,966 | | | | | ​ | | ​ Shareholders' equity | | | 191,909 | | | | | ​ | | ​ | | | 172,297 | | | | | ​ | | ​ Total liabilities and Shareholders' equity | | $ | 2,047,838 | | | | | ​ | | ​ | | $ | 2,021,263 | | | | | ​ | | ​ Net interest income (1) | | | | ​ | | $ | 60,130 | | | ​ | | | | ​ | | $ | 54,571 | | | ​ Interest rate spread (1) | | | | ​ | | | | ​ | 3.66 | % | | | | ​ | | | | ​ | 3.23 | % Cost of funds | | | | ​ | | | | ​ | 1.24 | % | | | | ​ | | | | ​ | 1.45 | % Interest expense as a percent of average earning assets | | | | ​ | | | | ​ | 1.19 | % | | | | ​ | | | | ​ | 1.41 | % Net interest margin FTE (1) | | | | ​ | | | | ​ | 4.19 | % | | | | ​ | | | | ​ | 3.85 | % | | | | | | | | | | | | | | | | | | | | FIRST NATIONAL CORPORATION Non-GAAP Reconciliation (in thousands, except share and per share data) | (unaudited) | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | For the Three Months Ended | | | For the Nine Months Ended | | | Sept 30, 2026 | | | Jun 30, 2026 | | | Sept 30, 2025 | | | Sept 30, 2026 | | | Sept 30, 2025 | Operating Net Income | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Net income (GAAP) | | $ | 6,900 | | | $ | 5,743 | | | $ | 5,550 | | | $ | 17,530 | | | $ | 12,199 | Add: Merger-related expenses | | | — | | | | — | | | | — | | | | — | | | | 2,032 | Subtract: Bargain purchase gain | | | — | | | | — | | | | (304 | ) | | | — | | | | (304 | ) Subtract: Tax effect of adjustment (6) | | | — | | | | — | | | | 64 | | | | — | | | | (327 | ) Adjusted operating net income (non-GAAP) | | $ | 6,900 | | | $ | 5,743 | | | $ | 5,310 | | | $ | 17,530 | | | $ | 13,600 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Adjusted Earnings Per Share, Basic | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Weighted average shares, basic | | | 9,050,059 | | | | 9,041,314 | | | | 8,999,153 | | | | 9,041,056 | | | | 8,988,692 | Basic earnings per share (GAAP) | | $ | 0.76 | | | $ | 0.64 | | | $ | 0.62 | | | $ | 1.94 | | | $ | 1.36 | Adjusted earnings per share, basic (non-GAAP) | | $ | 0.76 | | | $ | 0.64 | | | $ | 0.58 | | | $ | 1.94 | | | $ | 1.51 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Adjusted Earnings Per Share, Diluted | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Weighted average shares, diluted | | | 9,084,052 | | | | 9,068,347 | | | | 9,023,185 | | | | 9,066,673 | | | | 9,010,432 | Diluted earnings per share (GAAP) | | $ | 0.76 | | | $ | 0.63 | | | $ | 0.62 | | | $ | 1.93 | | | $ | 1.35 | Adjusted diluted earnings per share (non-GAAP) | | $ | 0.76 | | | $ | 0.63 | | | $ | 0.58 | | | $ | 1.93 | | | $ | 1.50 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Adjusted Pre-Provision, Pre-Tax Earnings | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Net interest income | | $ | 21,206 | | | $ | 19,981 | | | $ | 18,295 | | | $ | 59,863 | | | $ | 54,294 | Total noninterest income | | | 4,084 | | | | 4,018 | | | | 4,500 | | | | 11,926 | | | | 12,000 | Net revenue | | $ | 25,290 | | | $ | 23,999 | | | $ | 22,795 | | | $ | 71,789 | | | $ | 66,294 | Total noninterest expense | | | 16,696 | | | | 16,437 | | | | 15,782 | | | | 49,115 | | | | 49,308 | Pre-provision, pre-tax earnings (non-GAAP) | | $ | 8,594 | | | $ | 7,562 | | | $ | 7,013 | | | $ | 22,674 | | | $ | 16,986 | Add: Merger expenses | | | — | | | | — | | | | — | | | | — | | | | 2,032 | Subtract: Bargain purchase gain | | | — | | | | — | | | | (304 | ) | | | — | | | | (304 | ) Adjusted pre-provision, pre-tax earnings (non-GAAP) | | $ | 8,594 | | | $ | 7,562 | | | $ | 6,709 | | | $ | 22,674 | | | $ | 18,714 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Adjusted Performance Ratios | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Average assets | | $ | 2,065,812 | | | $ | 2,079,467 | | | $ | 2,022,958 | | | $ | 2,047,838 | | | $ | 2,021,263 | Return on average assets (GAAP) | | | 1.32 | % | | | 1.11 | % | | | 1.09 | % | | | 1.15 | % | | | 0.81 | % Adjusted return on average assets (non-GAAP) | | | 1.32 | % | | | 1.11 | % | | | 1.03 | % | | | 1.15 | % | | | 0.90 | % | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Average shareholders' equity | | $ | 195,262 | | | $ | 191,465 | | | $ | 177,130 | | | $ | 191,909 | | | $ | 172,297 | Return on average equity (GAAP) | | | 14.02 | % | | | 12.03 | % | | | 12.43 | % | | | 12.26 | % | | | 9.47 | % Adjusted return on average equity (non-GAAP) | | | 14.02 | % | | | 12.03 | % | | | 11.75 | % | | | 12.26 | % | | | 10.50 | % | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Net Interest Margin | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Net interest income | | $ | 21,206 | | | $ | 19,981 | | | $ | 18,295 | | | $ | 59,863 | | | $ | 54,294 | Tax-equivalent net interest income (non-GAAP) | | | 21,295 | | | | 20,071 | | | | 18,385 | | | | 60,130 | | | | 54,571 | Average earning assets | | | 1,930,945 | | | | 1,941,385 | | | | 1,897,328 | | | | 1,925,959 | | | | 1,892,933 | Net interest margin | | | 4.36 | % | | | 4.13 | % | | | 3.83 | % | | | 4.17 | % | | | 3.83 | % Net interest margin fully tax equivalent (non-GAAP) | | | 4.38 | % | | | 4.15 | % | | | 3.84 | % | | | 4.19 | % | | | 3.85 | % | | | | | | | | | | | | | | | | | | | | FIRST NATIONAL CORPORATION Non-GAAP Reconciliation (in thousands) | (unaudited) | | For the Three Months Ended | | | For the Nine Months Ended | | | Sept 30, 2026 | | | Jun 30, 2026 | | | Sept 30, 2025 | | | Sept 30, 2026 | | | Sept 30, 2025 | Adjusted Operating Noninterest Expense | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Total noninterest expense (GAAP) | | $ | 16,696 | | | $ | 16,437 | | | $ | 15,782 | | | $ | 49,115 | | | $ | 49,308 | Subtract: merger expenses | | | — | | | | — | | | | — | | | | — | | | | (2,032 | ) Subtract: amortization expense | | | (434 | ) | | | (433 | ) | | | (442 | ) | | | (1,301 | ) | | | (1,325 | ) Adjusted operating noninterest expense (non-GAAP) | | $ | 16,262 | | | $ | 16,004 | | | $ | 15,340 | | | $ | 47,814 | | | $ | 45,951 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Efficiency Ratio | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Total noninterest expense (GAAP) | | $ | 16,696 | | | $ | 16,437 | | | $ | 15,782 | | | $ | 49,115 | | | $ | 49,308 | Subtract/Add: other real estate owned (expense) income, net | | | (212 | ) | | | — | | | | — | | | | (212 | ) | | | 7 | Subtract: amortization of intangibles | | | (434 | ) | | | (433 | ) | | | (442 | ) | | | (1,301 | ) | | | (1,325 | ) Add: gain on disposal of premises and equipment, net | | | — | | | | — | | | | 9 | | | | — | | | | 16 | Subtract: merger expenses | | | — | | | | — | | | | — | | | | — | | | | (2,032 | ) Adjusted operating non-interest expense (non-GAAP) | | $ | 16,050 | | | $ | 16,004 | | | $ | 15,349 | | | $ | 47,602 | | | $ | 45,974 | Tax-equivalent net interest income (non-GAAP) | | $ | 21,295 | | | $ | 20,071 | | | $ | 18,385 | | | $ | 60,130 | | | $ | 54,571 | Total noninterest income (GAAP) | | | 4,084 | | | | 4,018 | | | | 4,500 | | | | 11,926 | | | | 12,000 | Add/Subtract: loss (gain) on disposal of premises and equipment | | | 12 | | | | (56 | ) | | | — | | | | (44 | ) | | | — | Subtract: net (gain) on subordinated debt payoff | | | — | | | | — | | | | — | | | | — | | | | (80 | ) Subtract: bargain purchase gain | | | — | | | | — | | | | (304 | ) | | | — | | | | (304 | ) Subtract: securities (gains), net | | | — | | | | — | | | | — | | | | (8 | ) | | | — | Adjusted income for efficiency ratio (non-GAAP) | | $ | 25,391 | | | $ | 24,033 | | | $ | 22,581 | | | $ | 72,004 | | | $ | 66,187 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Efficiency ratio (non-GAAP) | | | 63.21 | % | | | 66.59 | % | | | 67.97 | % | | | 66.11 | % | | | 69.46 | % | | | | | | | | | | | | | | | | | | | | FIRST NATIONAL CORPORATION Non-GAAP Reconciliation (in thousands, except share and per share data) | (unaudited) | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | For the Three Months Ended | | | For the Nine Months Ended | | | Sept 30, 2026 | | | Jun 30, 2026 | | | Sept 30, 2025 | | | Sept 30, 2026 | | | Sept 30, 2025 | Tax-Equivalent Net Interest Income | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ GAAP measures: | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Interest income – loans | | $ | 23,496 | | | $ | 22,145 | | | $ | 21,430 | | | $ | 66,658 | | | $ | 63,661 | Interest income – investments and other | | | 3,424 | | | | 3,488 | | | | 3,657 | | | | 10,224 | | | | 10,612 | Interest expense – deposits | | | (5,471 | ) | | | (5,410 | ) | | | (6,246 | ) | | | (16,295 | ) | | | (18,363 | ) Interest expense – subordinated debt | | | (171 | ) | | | (170 | ) | | | (479 | ) | | | (509 | ) | | | (1,414 | ) Interest expense – junior subordinated debt | | | (69 | ) | | | (69 | ) | | | (67 | ) | | | (204 | ) | | | (199 | ) Interest expense – other borrowings | | | (3 | ) | | | (3 | ) | | | — | | | | (11 | ) | | | (3 | ) Net interest income | | $ | 21,206 | | | $ | 19,981 | | | $ | 18,295 | | | $ | 59,863 | | | $ | 54,294 | Non-GAAP measures: | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Add: Tax benefit realized on non-taxable interest income – loans (6) | | $ | 11 | | | $ | 12 | | | $ | 11 | | | $ | 34 | | | $ | 39 | Add: Tax benefit realized on non-taxable interest income – municipal securities (6) | | | 78 | | | | 78 | | | | 79 | | | | 233 | | | | 238 | Tax benefit realized on non-taxable interest income | | $ | 89 | | | $ | 90 | | | $ | 90 | | | $ | 267 | | | $ | 277 | Tax-equivalent net interest income (non-GAAP) | | $ | 21,295 | | | $ | 20,071 | | | $ | 18,385 | | | $ | 60,130 | | | $ | 54,571 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Tangible Common Equity and Tangible Assets | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Total assets (GAAP) | | $ | 2,074,860 | | | $ | 2,075,645 | | | $ | 2,030,754 | | | $ | 2,074,860 | | | $ | 2,030,754 | Subtract: goodwill | | | (3,030 | ) | | | (3,030 | ) | | | (3,030 | ) | | | (3,030 | ) | | | (3,030 | ) Subtract: core deposit intangibles, net | | | (11,918 | ) | | | (12,352 | ) | | | (13,661 | ) | | | (11,918 | ) | | | (13,661 | ) Tangible assets (Non-GAAP) | | $ | 2,059,912 | | | $ | 2,060,263 | | | $ | 2,014,063 | | | $ | 2,059,912 | | | $ | 2,014,063 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Total shareholders' equity (GAAP) | | $ | 195,553 | | | $ | 193,588 | | | $ | 181,209 | | | $ | 195,553 | | | $ | 181,209 | Subtract: goodwill | | | (3,030 | ) | | | (3,030 | ) | | | (3,030 | ) | | | (3,030 | ) | | | (3,030 | ) Subtract: core deposit intangibles, net | | | (11,918 | ) | | | (12,352 | ) | | | (13,661 | ) | | | (11,918 | ) | | | (13,661 | ) Tangible common equity (Non-GAAP) | | $ | 180,605 | | | $ | 178,206 | | | $ | 164,518 | | | $ | 180,605 | | | $ | 164,518 | | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Tangible common equity to tangible assets ratio (non-GAAP) | | | 8.77 | % | | | 8.65 | % | | | 8.17 | % | | | 8.77 | % | | | 8.17 | % | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Tangible Book Value Per Share | | | | ​ | | | | ​ | | | | ​ | | | | ​ | | | | ​ Tangible common equity (non-GAAP) | | $ | 180,605 | | | $ | 178,206 | | | $ | 164,518 | | | $ | 180,605 | | | $ | 164,518 | Common shares outstanding, ending | | | 9,057,224 | | | | 9,042,629 | | | | 9,009,209 | | | | 9,057,224 | | | | 9,009,209 | Tangible book value per share (non-GAAP) | | $ | 19.94 | | | $ | 19.71 | | | $ | 18.26 | | | $ | 19.94 | | | $ | 18.26 | (1) | Non-GAAP financial measure. See "Non-GAAP Financial Measures" and "Non-GAAP Reconciliation" tables for additional information and detailed calculations of adjustments. (2) | The Company is a small bank holding company under applicable regulations and guidance and is not subject to the minimum regulatory capital regulations for bank holding companies. The regulatory requirements that apply to bank holding companies that are subject to regulatory capital requirements are presented below, along with the Company's capital ratios as determined under those regulations. (3) | All ratios on September 30, 2026, are estimates and subject to change pending the Bank's filing of its Call Report. All other periods are presented as filed. (4) | Ratios are annualized. (5) | Capital ratios presented are for First Bank. (6) | The tax rate utilized in calculating the tax benefit is 21%. (7) | Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 21%.

Shore Bancshares (SHBI) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.48 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.89%. A quarter ago, it was expected that this bank holding company would post earnings of $0.5 per share when it actually produced earnings of $0.6, delivering a surprise of +20%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Shore Bancshares, which belongs to the Zacks Banks - Northeast industry, posted revenues of $62.8 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 2.03%. This compares to year-ago revenues of $56.36 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Shore Bancshares shares have added about 29.2% since the beginning of the year versus the S&P 500's gain of 13.3%. While Shore Bancshares has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Shore Bancshares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $63.32 million in revenues for the coming quarter and $2.17 on $246.35 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, First National Corp. (FXNC), has yet to report results for the quarter ended September 2026. This company is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +8.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. First National Corp.'s revenues are expected to be $24.33 million, up 6.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Shore Bancshares Inc (SHBI) : Free Stock Analysis Report First National Corp. (FXNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First National Corp. (FXNC) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.59 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.78%. A quarter ago, it was expected that this company would post earnings of $0.52 per share when it actually produced earnings of $0.54, delivering a surprise of +3.85%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. FIRST NAT CP, which belongs to the Zacks Banks - Northeast industry, posted revenues of $24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.22%. This compares to year-ago revenues of $22.44 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. FIRST NAT CP shares have added about 20% since the beginning of the year versus the S&P 500's gain of 8.5%. While FIRST NAT CP has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for FIRST NAT CP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.62 on $24 million in revenues for the coming quarter and $2.38 on $94.1 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Meridian Bank (MRBK), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +4.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Meridian Bank's revenues are expected to be $34.71 million, up 7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First National Corp. (FXNC) : Free Stock Analysis Report Meridian Bank (MRBK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

STRASBURG, Va., July 29, 2026 (GLOBE NEWSWIRE) -- First National Corporation (the “Company” or “First National”) (NASDAQ: FXNC), the bank holding company of First Bank (the “Bank”), reported consolidated net income of $5.7 million and basic and diluted earnings per common share of $0.64 and $0.63, respectively, for the second quarter ended June 30, 2026. "Our quarterly and year-to-date results reflect steady execution of our intentional, profitable growth strategy. Growth in average loan and deposit balances lifted net interest income, and net loans expanded for a second straight quarter as our new and legacy banking teams continue to deepen customer relationships. The net interest margin in excess of four percent combined with expense management and strong asset quality delivered a strong second quarter and first half of the year.  I am also pleased to report that we received all regulatory approvals for the pending sale of our North Carolina branches which we expect to close early in the fourth quarter, continuing our branch optimization initiative announced earlier this year," said Scott C. Harvard, President and Chief Executive Officer of First National Corporation. FINANCIAL HIGHLIGHTS FOR SECOND QUARTER 2026 NET INTEREST INCOME For the second quarter of 2026, the Company’s net interest margin fully tax equivalent ("FTE")(1) was 4.15%, compared to 3.99% for the first quarter of 2026 and 3.95% in the second quarter of 2025. The Company’s net interest margin (FTE)(1) for the second quarter of 2026 includes the impact of acquisition accounting fair value adjustments. Net accretion income related to acquisition accounting was $245 thousand, a 5-basis point incremental increase to the net interest margin for the second quarter ended June 30, 2026. Prior period acquisition accounting resulted in net accretion income of $211 thousand, or a 4-basis point incremental increase to the net interest margin for the quarter ended March 31, 2026, and net accretion income of $907 thousand, or a 19-basis point incremental increase to the net interest margin for the second quarter ended June 30, 2025. Earning asset yields for the second quarter of 2026 increased 11-basis points to 5.31% compared to the first quarter of 2026. For the second quarter of 2026, net interest income FTE(1) was $20.1 million, an increase of $1.3 million from $18.8 million in the first quarter of 2026 due to an increase in average interest-earning assets, improved yields, reduced funding costs and average and net loan growth. The impact of acquisition accretion and amortization is reflected in the following table (dollars in thousands): ALLOWANCE AND PROVISION FOR CREDIT LOSSES The Company recorded a $426 thousand provision for credit losses in the second quarter of 2026, compared to $450 thousand for the first quarter of 2026. The second quarter provision was comprised of a $350 thousand provision for credit losses on loans, a $79 thousand provision for credit losses on unfunded commitments, and a $3 thousand reduction in the credit losses on securities.  Net charge-offs totaled $105 thousand in the second quarter of 2026, compared to net charge-offs of $542 thousand in the first quarter of 2026 and net charge-offs of $448 thousand in the second quarter of 2025. The allowance for credit losses on loans totaled $14.9 million, or 1.00% of total loans on June 30, 2026, compared to $14.7 million, or 1.00% of total loans on March 31, 2026, and $15.2 million, or 1.05% of total loans on June 30, 2025. The allowance for credit losses to total loans remained consistent with the prior period and decreased from the prior year due to declines in specific reserves on individually analyzed loans. The allowance for credit losses to non-performing assets coverage was 315% on June 30, 2026, compared to 331% on March 31, 2026, and 223% on June 30, 2025. NONINTEREST INCOME AND EXPENSE Noninterest income increased $194 thousand to $4.0 million for the second quarter of 2026 from $3.8 million in the prior quarter. The increase in noninterest income includes increases in ATM and check card income, other operating income, and brokered mortgage fees compared to the prior quarter. Noninterest expense increased $455 thousand to $16.4 million for the second quarter of 2026 from $16.0 million in the prior quarter. The increase in noninterest expense includes increases in other operating expense, marketing expense, legal and professional fees, supplies expense, and data processing expense. The sale of two banking offices in Roanoke Rapids and Louisburg, North Carolina, including most of the deposit and loan accounts associated with those offices, has received all required regulatory approvals with a planned transaction date in October 2026. The company anticipates a one-time gain on the sale of the offices in the fourth quarter of 2026.  The Bank also plans to consolidate three additional banking offices and discontinue low volume ATMs at non-branch locations before year-end. The sale and consolidation combined will reduce the number of banking offices from 33 to 28 by year end. The goals of these branch optimization actions are to streamline operations, improve profitability and allocate resources to faster growing markets. INCOME TAXES Income tax expense was $1.4 million for the second quarter of 2026, compared to $1.2 million for the first quarter of 2026. The effective tax rate of 19.5% for the second quarter of 2026 remained consistent with 19.5% in the first quarter of 2026. BALANCE SHEET On June 30, 2026, total assets were $2.076 billion, an increase of $34.2 million or 1.7% from June 30, 2025. Total assets were consistent with the prior quarter with the increase in loan growth offset by the decrease in cash and cash equivalents, and the increase from the prior year was driven by loan growth and additional securities available for sale. On June 30, 2026, loans held for investment ("LHFI") net of allowance totaled $1.472 billion, an increase of $22.7 million or 3.0% annualized from $1.450 billion on March 31, 2026, and an increase of $44.2 million or 3.1% from June 30, 2025. Net loan growth in the second quarter and for the year has been driven by increased production from newly hired bankers along with our continued focus on relationship banking. On June 30, 2026, total investments were $322.8 million, a decrease of $1.7 million or 0.5% from March 31, 2026, and an increase of $23.2 million or 7.7% from June 30, 2025. Available for sale ("AFS") securities totaled $227.8 million on June 30, 2026, and $217.7 million on March 31, 2026, and $187.6 million on June 30, 2025. The increase compared to the prior year was driven by security purchases exceeding portfolio cashflows and utilization of excess cash. Total net unrealized losses on the AFS securities portfolio were $15.8 million on June 30, 2026, compared to $16.2 million on March 31, 2026, and $18.9 million on June 30, 2025. Held to maturity securities are carried at amortized cost and totaled $89.4 million on June 30, 2026, $101.3 million on March 31, 2026, and $106.4 million on June 30, 2025. On June 30, 2026, total deposits were $1.831 billion, a decrease of $6.2 million or 0.3% from the prior quarter, and an increase of $28.0 million or 1.6% from June 30, 2025. While total deposits as of June 30, 2026 declined when compared to March 31, 2026, average deposit balances for the second quarter were up $49.6 million or 2.7%. Overall, the deposit balances were relatively stable in comparison with the prior quarter and the prior year with increases primarily in savings and interest-bearing demand deposits. There were $25.0 million in other borrowings with the Federal Home Loan Bank on June 30, 2026, March 31, 2026, and June 30, 2025. LIQUIDITY Liquidity sources available to the Bank, including interest-bearing deposits in banks, unpledged securities available for sale, at fair value, and available lines of credit totaled $747.8 million on June 30, 2026, $764.2 million on March 31, 2026, and $633.7 million on June 30, 2025. The Bank maintains liquidity to fund loan growth and to meet potential demand from deposit customers, including potential volatile deposits. The estimated amount of uninsured customer deposits totaled $573.8 million on June 30, 2026, $558.9 million on March 31, 2026, and $545.7 million on June 30, 2025. Excluding municipal deposits that have collateral pledged, the estimated amount of uninsured customer deposits totaled $466.9 million on June 30, 2026, $461.3 million on March 31, 2026, and $451.9 million on June 30, 2025. ASSET QUALITY Non-performing assets ("NPAs") increased slightly from the prior period and improved from the prior year as previously reserved loans were charged off since the second quarter of 2025. Management classifies NPAs as non-accrual loans and other real estate owned ("OREO"). The Bank had no OREO on June 30, 2026, March 31, 2026, or June 30, 2025. NPAs as a percentage of total loans were 0.32% on June 30, 2026, up from 0.30% on March 31, 2026, but down from 0.47% on June 30, 2025. NPAs increased by $292 thousand to $4.7 million on June 30, 2026, compared to $4.4 million on March 31, 2026, but decreased by $2.1 million from $6.8 million on June 30, 2025. There were no loans past due over 90 days or more and still accruing interest on June 30, 2026, March 31, 2026, or June 30, 2025. Loans past-due 30-89 days and still accruing interest decreased to $2.5 million, or 0.17% of total loans on June 30, 2026, compared to $5.0 million, or 0.34% of total loans on March 31, 2026, and $3.2 million, or 0.22%, of total loans on June 30, 2025.  The health care provider portfolio balance continues to decline with $8.6 million in loan balances and $3.4 million in unamortized premiums. The portfolio has loans totaling $1.8 million currently on non-accrual that are specifically reserved for $1.3 million. CAPITAL During the second quarter of 2026, the Company declared and paid cash dividends of $0.17 per common share, compared to $0.17 in the first quarter of 2026 and $0.155 in the second quarter of 2025. Tangible book value per share(1) grew to $19.71 at June 30, 2026, from $19.11 per share at March 31, 2026, and $17.40 at June 30, 2025. The following table provides capital ratios and values for the periods ended: ABOUT FIRST NATIONAL CORPORATION First National Corporation (NASDAQ: FXNC) is the parent company and bank holding company of First Bank, a community bank that first opened for business in 1907 in Strasburg, Virginia. The Bank offers loan and deposit products and services through its bankers, consumer and business mobile banking platforms, a network of ATMs located throughout its market area, a loan production office, a customer service center in a retirement community, and thirty-three banking office locations located throughout the Shenandoah Valley, the Roanoke Valley, the Richmond MSA, the south-central regions of Virginia, and in northern North Carolina. In addition to providing traditional banking services, the Bank operates a wealth management division under the name First Bank Wealth Management. First Bank also owns First Bank Financial Services, Inc., which owns an interest in a title insurance company. NON-GAAP FINANCIAL MEASURES In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include adjusted operating net income, adjusted operating non-interest expense, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, pre-provision pre-tax earnings, adjusted pre-provision pre-tax earnings, fully taxable equivalent interest income, the net interest margin, the efficiency ratio, tangible book value per share, and tangible common equity to tangible assets. The Company believes certain non-GAAP financial measures enhance the understanding of its business and performance. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is included at the end of this release. FORWARD-LOOKING STATEMENTS Certain information contained in this discussion may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company’s plans, objectives, strategies, expectations and intentions, including with respect to pending branch sales and other branch optimization initiatives, and other statements that are not historical facts, and other statements identified by words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” "will," "continue," and “projects,” as well as similar expression. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that the Company will achieve the anticipated benefits of its plans and strategies or that its actual results, performance, or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties and speak only as of the date of this release. The Company undertakes no obligations to update or revise any forward-looking statement, except as required by law. For details on factors that could affect expectations, future events, or results, see the risk factors and other cautionary language included in First National Corporation’s Annual Report on Form 10-K for the year ended December 31, 2025 and other filings with the Securities and Exchange Commission (the “SEC”). CONTACTS FIRST NATIONAL CORPORATIONPerformance Summary(in thousands) (unaudited) FIRST NATIONAL CORPORATIONPerformance Summary(in thousands, except share and per share data) (unaudited) FIRST NATIONAL CORPORATIONPerformance Summary(in thousands) (unaudited) FIRST NATIONAL CORPORATIONAverage Balances, Yields and Rates Paid(in thousands) FIRST NATIONAL CORPORATIONAverage Balances, Yields and Rates Paid(in thousands) FIRST NATIONAL CORPORATIONNon-GAAP Reconciliation(in thousands, except share and per share data) (unaudited) FIRST NATIONAL CORPORATIONNon-GAAP Reconciliation(in thousands) FIRST NATIONAL CORPORATIONNon-GAAP Reconciliation(in thousands, except share and per share data) (1) Non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” tables for additional information and detailed calculations of adjustments. (2) The Company is a small bank holding company under applicable regulations and guidance and is not subject to the minimum regulatory capital regulations for bank holding companies. The regulatory requirements that apply to bank holding companies that are subject to regulatory capital requirements are presented below, along with the Company's capital ratios as determined under those regulations. (3) All ratios on June 30, 2026, are estimates and subject to change pending the Bank's filing of its Call Report. All other periods are presented as filed. (4) Ratios are annualized. (5) Capital ratios presented are for First Bank. (6) The tax rate utilized in calculating the tax benefit is 21% (7) Yields and interest income are presented on a taxable-equivalent basis using the federal statutory tax rate of 21%

Capital Bancorp (CBNK) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.82%. A quarter ago, it was expected that this company would post earnings of $0.78 per share when it actually produced earnings of $0.73, delivering a surprise of -6.41%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Capital Bancorp, which belongs to the Zacks Banks - Northeast industry, posted revenues of $65.29 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.41%. This compares to year-ago revenues of $60.75 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Capital Bancorp shares have added about 28.3% since the beginning of the year versus the S&P 500's gain of 8.3%. While Capital Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Capital Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.89 on $68.8 million in revenues for the coming quarter and $3.40 on $268.7 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, First National Corp. (FXNC), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +3.5%. The consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level. First National Corp.'s revenues are expected to be $23.25 million, up 3.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Capital Bancorp, Inc. (CBNK) : Free Stock Analysis Report First National Corp. (FXNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bankwell Financial Group, Inc. (BWFG) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.25 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +21.60%. A quarter ago, it was expected that this company would post earnings of $1.23 per share when it actually produced earnings of $1.41, delivering a surprise of +14.63%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Bankwell Financial Group, which belongs to the Zacks Banks - Northeast industry, posted revenues of $32.89 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.24%. This compares to year-ago revenues of $25.95 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bankwell Financial Group shares have added about 29.9% since the beginning of the year versus the S&P 500's gain of 9.6%. While Bankwell Financial Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bankwell Financial Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.29 on $31.6 million in revenues for the coming quarter and $5.35 on $124.84 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, First National Corp. (FXNC), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +3.5%. The consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level. First National Corp.'s revenues are expected to be $23.25 million, up 3.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bankwell Financial Group, Inc. (BWFG) : Free Stock Analysis Report First National Corp. (FXNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

First National Corp. (FXNC) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of +3.5%. Revenues are expected to be $23.25 million, up 3.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.64% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For FIRST NAT CP, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.39%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that FIRST NAT CP will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that FIRST NAT CP would post earnings of $0.52 per share when it actually produced earnings of $0.54, delivering a surprise of +3.85%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. FIRST NAT CP appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Camden National (CAC), another stock in the Zacks Banks - Northeast industry, is expected to report earnings per share of $1.3 for the quarter ended June 2026. This estimate points to a year-over-year change of +46.1%. Revenues for the quarter are expected to be $66.4 million, up 6.6% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Camden National has been revised 0.4% down to the current level. Nevertheless, the company now has an Earnings ESP of +0.39%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Camden National will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First National Corp. (FXNC) : Free Stock Analysis Report Camden National Corporation (CAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? First National Corp. (FXNC), which belongs to the Zacks Banks - Southeast industry, could be a great candidate to consider. This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 3.59%. For the most recent quarter, FIRST NAT CP was expected to post earnings of $0.52 per share, but it reported $0.54 per share instead, representing a surprise of 3.85%. For the previous quarter, the consensus estimate was $0.6 per share, while it actually produced $0.62 per share, a surprise of 3.33%. With this earnings history in mind, recent estimates have been moving higher for FIRST NAT CP. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. FIRST NAT CP has an Earnings ESP of +3.39% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First National Corp. (FXNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research