First National Corporation
First National Corp. /VA/ is the bank holding company for First Bank, a community-focused commercial bank serving markets in Virginia and northern North Carolina. It earns most of its revenue from net interest income on loans and securities, supplemented by deposit service charges, wealth management fees, and other customer service income.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueConsumer, mortgage, home equity, and commercial loans originated and serviced by the bank.
Checking, savings, money market, CD, IRA, and treasury management accounts.
Estate planning, investment management, trustee, and estate settlement services.
ATM, check card, and other customer service fee income.
Bank-owned life insurance income and other noninterest income sources.
Products
Reported · share of revenue- Other Noninterest Income34.1 %
- Service Charges On Deposit Accounts27.7 %
- Wealth Management Fees25.3 %
- Fees for Other Customer Services8.3 %
- Mortgage Banking4.5 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
The bank serves individuals, small and medium-sized businesses, estates, local governmental entities, and non-profit organizations. Its lending and deposit franchise is tied to local economic activity in Virginia and nearby North Carolina, while wealth management services address higher-balance customers and fiduciary relationships.
They buy consumer loans, mortgages, home equity products, and everyday deposit accounts for personal banking needs.
They use commercial loans, checking, and treasury management to fund operations and manage cash flow.
They buy investment management, trustee, estate planning, and estate settlement services.
They place deposits and use banking services for public-sector cash management.
They use deposit accounts and cash-management services for operating liquidity and payments.
Strategy
The company is focused on deepening its community banking franchise through relationship lending, deposit gathering, and fee-based services. Recent activity shows continued integration of the Touchstone acquisition, while management also emphasizes liquidity, capital strength, and disciplined credit oversight to support growth.
The acquisition is already affecting earnings and expenses, so integration is key to realizing scale benefits.
Deposit funding supports loan growth and reduces reliance on more expensive wholesale funding.
Noninterest income diversifies earnings away from spread income and improves franchise value.
Loan performance and provision expense are sensitive to regional economic conditions and borrower quality.
Geography
The bank operates primarily in Virginia, with a smaller presence in northern North Carolina. Its branch network is concentrated along the Interstate 81, Interstate 66, and Interstate 64 corridors, including the Shenandoah Valley, Roanoke Valley, south-central Virginia, and the Richmond MSA, which anchors its local deposit and lending franchise.
Risks
The company is exposed to credit risk from its loan book, especially if local economic conditions weaken or borrower performance deteriorates. It also faces funding and liquidity risk from uninsured deposits, plus integration risk from acquisitions and interest-rate risk because earnings depend heavily on net interest income.
Provision expense depends on charge-offs, asset quality, and economic conditions.
Net interest income is the main earnings driver and moves with asset/liability repricing.
A meaningful share of deposits is uninsured, which can increase runoff risk in stress periods.
Exposure: Uninsured customer deposits and municipal balances
Touchstone-related integration can increase expenses and create execution risk before synergies are realized.
Accounting
Judgemental itemsManagement estimates future losses using asset quality and economic assumptions, which can materially change earnings.
Impact: Provision expense and loan carrying values
The company uses swaps to manage interest-rate exposure on junior subordinated debt.
Impact: Derivative fair value and interest expense
The Touchstone acquisition affects expense recognition and may create intangible assets or integration costs.
Impact: Noninterest expense and balance-sheet presentation
Unpledged available-for-sale securities are part of liquidity and can create unrealized gains or losses.
Impact: Equity, liquidity, and comprehensive income
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Last updated: 24/09/2026