First National Corporation reported a record fourth quarter and full year for 2025, driven by strong integration of the Touchstone acquisition and improved asset quality. The company demonstrated robust shareholder returns through dividend increases and tangible book value growth, while maintaining a solid net interest margin.
Reported record fourth quarter and full year 2025 financial performance.
positiveBasic earnings per share of $0.61 for Q4 2025, up from ($0.10) one year prior.
positiveFull year 2025 basic earnings per share of $1.97, compared to $1.00 one year prior.
positiveNet interest margin (FTE) of 3.95% for Q4 2025, up from 3.84% in the previous period and 3.83% one year prior.
positiveAsset quality improved with non-performing assets (NPAs) declining to 0.32% of total loans.
positiveLoan growth of $16.3 million for the quarter, a 4.6% annualized growth rate.
positiveIncreased quarterly dividend by 9.7% and grew per share tangible book value 14% in 2025.
positiveProvision for credit losses increased to $951 thousand in Q4 2025 from $193 thousand in Q3 2025.
attentionNoninterest expense increased $343 thousand to $16.1 million in Q4 2025 from $15.8 million in the prior quarter, driven by merger-related expenses.
attentionAdjusted operating noninterest expense increased $216 thousand to $15.6 million in Q4 2025 from $15.3 million in the prior quarter.
attentionEffective tax rate increased to 20.2% in Q4 2025 from 18.6% in Q3 2025 due to an adjustment to deferred tax assets.
attentionTotal deposits decreased by $10.0 million or 0.6% from the prior quarter.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We are pleased to report a record fourth quarter of financial performance, as well as a record year.
We spent 2025 integrating the Touchstone family and operations into our company, with a major focus on customer retention.
The addition of experienced bankers in our Richmond, Roanoke, and Staunton markets helped support our net loan growth in the fourth quarter.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.