Tue, May 14, 7:59 PM (245 days ago)
First National Corporation's quarterly report for the period ending March 31, 2024, highlights a mixed financial performance. Net income decreased by 17% to $3.2 million, or $0.51 per diluted share, compared to $3.8 million, or $0.61 per diluted share, in the same period in 2023. This decline was driven by a 3% reduction in net interest income, a $1.0 million increase in the provision for credit losses, and an 8% rise in noninterest expenses, partially offset by a 46% increase in noninterest income. The net interest margin contracted by 36 basis points to 3.24%, while average earning assets grew by 7%. The allowance for credit losses on loans increased to $12.6 million, or 1.30% of total loans. The Bank's capital ratios remained robust, exceeding regulatory requirements. The company also announced an agreement to acquire Touchstone Bankshares, Inc. for $47.0 million in stock, expected to close in Q4 2024. This acquisition could impact future operations, including potential integration challenges and merger-related expenses.