# First National Corporation > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/First National Corporation). ## Overview 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. ## Products & services • Consumer loans, residential mortgages, home equity loans • Commercial loans and small-business lending • Checking, savings, money market, CDs, IRAs • Treasury management and deposit services • Wealth management, trustee, estate planning, and settlement • Mobile banking, ATMs, and branch-based banking - **Lending** (75%) — Consumer, mortgage, home equity, and commercial loans originated and serviced by the bank. - **Deposit services** (10%) — Checking, savings, money market, CD, IRA, and treasury management accounts. - **Wealth management** (8%) — Estate planning, investment management, trustee, and estate settlement services. - **Card and service fees** (5%) — ATM, check card, and other customer service fee income. - **Other banking income** (2%) — Bank-owned life insurance income and other noninterest income sources. - Consumer loans, residential mortgages, home equity loans - Commercial loans and small-business lending - Checking, savings, money market, CDs, IRAs - Treasury management and deposit services - Wealth management, trustee, estate planning, and settlement - Mobile banking, ATMs, and branch-based banking ## 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. - **Individuals** (primary) — They buy consumer loans, mortgages, home equity products, and everyday deposit accounts for personal banking needs. - **Small and medium-sized businesses** (primary) — They use commercial loans, checking, and treasury management to fund operations and manage cash flow. - **Wealth management and fiduciary clients** (secondary) — They buy investment management, trustee, estate planning, and estate settlement services. - **Local governmental entities** (secondary) — They place deposits and use banking services for public-sector cash management. - **Non-profit organizations** (secondary) — They use deposit accounts and cash-management services for operating liquidity and payments. - Individuals seeking mortgages, consumer credit, and deposit accounts - Small and medium-sized businesses needing loans and treasury services - Estates and fiduciary clients using trustee and settlement services - Local governments and nonprofits using deposit and cash-management products - Wealth management clients seeking investment and estate planning support ## 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. - **Virginia** (85%) — Primary operating and revenue market based on branch footprint - **Northern North Carolina** (15%) — Secondary operating market adjacent to Virginia footprint - Core markets are in Virginia, especially the Shenandoah and Roanoke Valleys - Presence extends into south-central Virginia and the Richmond MSA - Northern North Carolina adds a smaller adjacent-market footprint - 33 branches, 3 loan production offices, and 1 retirement-community service center - Mobile banking and ATMs extend reach across the local market area ## 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. - **Integrate the Touchstone acquisition** (short-term) — The acquisition is already affecting earnings and expenses, so integration is key to realizing scale benefits. - **Grow core deposits and manage liquidity** (short-term) — Deposit funding supports loan growth and reduces reliance on more expensive wholesale funding. - **Deepen fee income from wealth management and services** (medium-term) — Noninterest income diversifies earnings away from spread income and improves franchise value. - **Maintain credit discipline in local lending markets** (ongoing) — Loan performance and provision expense are sensitive to regional economic conditions and borrower quality. - Expand relationship-based lending in core local markets - Grow low-cost deposits to fund loan growth and liquidity - Cross-sell wealth management and treasury services - Integrate Touchstone acquisition and capture operating synergies - Maintain strong capital and liquidity for credit-cycle resilience ## 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. - **Credit deterioration in the loan portfolio** [high] — Provision expense depends on charge-offs, asset quality, and economic conditions. - **Interest-rate and margin compression** [high] — Net interest income is the main earnings driver and moves with asset/liability repricing. - **Liquidity and deposit outflow risk** [high] — A meaningful share of deposits is uninsured, which can increase runoff risk in stress periods. - **Acquisition integration risk** [medium] — Touchstone-related integration can increase expenses and create execution risk before synergies are realized. - Credit losses can rise if local borrowers weaken or unemployment increases - Net interest income is sensitive to rate changes and balance-sheet mix - Uninsured deposits can create funding pressure in stressed markets - Acquisition integration can lift expenses and distract management - Community bank concentration increases exposure to regional economic cycles ## Accounting Reported earnings are highly affected by the timing of net interest income, provision for credit losses, and acquisition-related expense changes. The bank also uses derivative accounting for interest rate swaps, and its results can be influenced by fair value marks on securities and the allowance for credit losses, both of which depend on management estimates. - **Allowance for credit losses** — Provision expense and loan carrying values - **Interest rate swap accounting** — Derivative fair value and interest expense - **Acquisition accounting** — Noninterest expense and balance-sheet presentation - **Fair value of securities** — Equity, liquidity, and comprehensive income - Provision for credit losses depends on judgment about future borrower performance - Interest rate swaps affect reported earnings through hedge accounting and fair value changes - Acquisition accounting can create amortization and integration-related expense effects - Fair value marks on securities can move equity and liquidity measures - Uninsured deposit estimates and liquidity disclosures affect risk assessment --- *Last updated: 2026-09-24T11:30:33.110596+00:00*