First National Corporation (FXNC): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind First National Corporation (FXNC) and how it operates as a successful community bank? With a history dating back to 1907, and total assets reaching $2.0 billion after acquiring Touchstone Bankshares in 2024, First National Corporation has deep roots in Virginia and beyond. Keep reading to discover its mission, business model, and how it delivers value to its shareholders and the communities it serves.

First National Corporation (FXNC) History

First National Corporation Founding Timeline

Year established

First National Corporation was established in 1907.

Original location

The company's original location was in Strasburg, Virginia.

Founding team members

Details on the specific founding team members are not widely available in the provided search results. Additional historical archives or direct company resources would likely provide this information.

Initial capital/funding

Information regarding the initial capital or funding of First National Corporation at its founding in 1907 is not readily available in the provided search results. Historical financial records or company archives would be needed to ascertain this information.

First National Corporation Evolution Milestones

First National Corporation Transformative Moments

• Formation of a Holding Company (1986): The creation of First National Corporation as a holding company in 1986 marked a significant structural change, providing a framework for future acquisitions and diversification.
• Strategic Acquisitions: Acquisitions, such as Valley Financial Corporation in 2005 and the Front Royal Branch from Blue Ridge Bank in 2021, significantly expanded market presence and deposit share.
• Leadership Transition: The appointment of Scott C. Harvard as President and CEO in 2016 likely brought new strategic initiatives and operational changes.
• Branch Expansion: The opening of a Loan Production Office in Winchester, Virginia in 2018 reflected a strategic effort to increase lending activities and customer reach within the Shenandoah Valley.

For more insights into the investor profile, you might find this resource helpful: Exploring First National Corporation (FXNC) Investor Profile: Who’s Buying and Why?

First National Corporation (FXNC) Ownership Structure

First National Corporation (FXNC) features a blend of institutional and retail ownership, shaping its governance and strategic direction.

First National Corporation's Current Status

First National Corporation is a publicly traded company, meaning its shares are available for purchase by the general public on the stock market. As of its latest filing, First National Corporation had a market capitalization of $147.72 million.

First National Corporation's Ownership Breakdown

The ownership of First National Corporation is distributed among various types of shareholders. Here’s a detailed breakdown:

First National Corporation's Leadership

The leadership team is responsible for setting the strategic direction and managing the day-to-day operations of First National Corporation.

• Scott C. Harvard serves as the President and Chief Executive Officer.
• Michele Reedy is the Executive Vice President and Chief Financial Officer.
• Roger D. Watson holds the position of Executive Vice President and Chief Credit Officer.

These individuals, along with other key executives and the board of directors, guide the company's strategic initiatives and ensure its financial health. You can also explore Mission Statement, Vision, & Core Values of First National Corporation (FXNC).

First National Corporation (FXNC) Mission and Values

First National Corporation (FXNC) strives to enrich the lives of its customers and communities through financial solutions and community support. The company's values emphasize integrity, customer focus, and community commitment.

First National Corporation's Core Purpose

Official mission statement

To be the preferred community bank, creating value for our shareholders, customers, employees, and communities.

• Creating value for shareholders, customers, employees, and communities.
• Being the preferred community bank.

Vision statement

To be the financial leader in the markets we serve.

• Being a financial leader.
• Serving the markets effectively.

Company slogan/tagline

A strong history. A strong future.

• Reflects stability and longevity.
• Indicates a forward-looking approach.

For more in-depth information, consider visiting: Mission Statement, Vision, & Core Values of First National Corporation (FXNC).

First National Corporation (FXNC) How It Works

First National Corporation operates as the bank holding company for First National Bank, providing a range of community banking services to individuals, businesses, and local governments.

First National Corporation's Product/Service Portfolio

First National Corporation, through First National Bank, provides a variety of banking products and services. These are designed to meet the financial needs of their diverse customer base.

First National Corporation's Operational Framework

First National Corporation (FXNC) operates through its subsidiary, First National Bank, focusing on traditional community banking activities. The bank generates revenue primarily through:

• Net Interest Income: Earning the difference between interest earned on loans and investments and interest paid on deposits.
• Fees and Service Charges: Collecting fees for services like account maintenance, overdrafts, and wire transfers.
• Wealth Management Services: Generating fees from investment and trust services.

The operational framework involves:

• Attracting Deposits: Gathering funds from individuals and businesses through various deposit accounts.
• Extending Credit: Providing loans to individuals, businesses, and local governments, carefully managing credit risk.
• Managing Investments: Investing in securities and other assets to optimize returns while maintaining liquidity and safety.
• Customer Service: Delivering personalized banking services through branches, online platforms, and mobile channels.

Interested in learning more about First National Corporation's financial standing? Check out: Breaking Down First National Corporation (FXNC) Financial Health: Key Insights for Investors

First National Corporation's Strategic Advantages

First National Corporation maintains several strategic advantages that contribute to its competitive position in the banking industry:

• Community Focus: Strong local presence and deep customer relationships in its operating markets.
• Diversified Services: A wide array of financial services, including commercial lending and wealth management, diversifies revenue streams and reduces risk.
• Technology Investments: Ongoing investments in digital banking technologies to enhance customer experience and operational efficiency.
• Risk Management: Conservative underwriting practices and robust risk management framework.

First National Corporation (FXNC) How It Makes Money

First National Corporation primarily generates revenue through traditional banking activities, focusing on attracting deposits and originating loans. The net interest income, which is the difference between the revenue generated from interest-bearing assets and the expense associated with paying out interest, forms a significant portion of its earnings.

First National Corporation's Revenue Breakdown

Here's a look at First National Corporation's revenue streams:

First National Corporation's Business Economics

First National Corporation's profitability is influenced by factors such as interest rate spreads, loan volume, and credit quality. Key aspects of their business economics include:

• Interest Rate Spreads: The difference between the interest earned on loans and the interest paid on deposits significantly impacts profitability. Wider spreads typically lead to higher net interest income.
• Loan Growth: Increasing the volume of loans, while maintaining credit quality, drives revenue growth. Expansion into new markets or sectors can boost loan volume.
• Fee Income: Services like wealth management, mortgage servicing, and transaction fees provide additional revenue streams that supplement net interest income.
• Operating Efficiency: Managing operational costs, including salaries, technology investments, and regulatory compliance, affects the bottom line. Efficiency ratios, such as the efficiency ratio (operating expenses as a percentage of revenue), are closely monitored.

To gain more insight into First National Corporation's guiding principles, explore: Mission Statement, Vision, & Core Values of First National Corporation (FXNC).

First National Corporation's Financial Performance

Analyzing First National Corporation's financial performance involves looking at key metrics that reflect its stability and growth potential. These include:

• Net Income: For the fiscal year 2024, First National Corporation reported a net income of $23.9 million, showcasing its overall profitability.
• Earnings Per Share (EPS): The diluted EPS stood at $2.68, indicating the profit allocated to each outstanding share.
• Total Assets: As of December 31, 2024, the corporation's total assets reached $1.68 billion, reflecting its substantial financial base.
• Return on Average Assets (ROAA): The ROAA was 1.45%, demonstrating effective asset utilization in generating profits.
• Return on Average Equity (ROAE): With an ROAE of 13.30%, the corporation shows strong returns to its shareholders.
• Net Interest Margin (NIM): The NIM was reported at 3.70%, indicating the efficiency of earning revenue from interest-bearing assets.

These metrics provide a snapshot of First National Corporation's financial health and its ability to generate profits and returns for its shareholders as of the end of the 2024 fiscal year.

First National Corporation (FXNC) Market Position & Future Outlook

First National Corporation operates within a competitive banking landscape, focusing on community banking services. The company's future outlook is tied to its ability to adapt to changing customer preferences, navigate regulatory requirements, and leverage technological advancements to enhance service delivery and operational efficiency.

Competitive Landscape

Opportunities & Challenges

Industry Position

First National Corporation maintains a community-focused approach, distinguishing itself through personalized service and local market expertise. Key aspects of its industry position include:

• Customer Relationships: Building and maintaining strong relationships with local customers is a priority.
• Community Involvement: Active participation in community development and local initiatives enhances the company's reputation.
• Service Delivery: Balancing traditional banking services with modern digital solutions to meet diverse customer needs.

To learn more about the company's guiding principles, visit: Mission Statement, Vision, & Core Values of First National Corporation (FXNC).