First National Corporation (NASDAQ: FXNC) reported record financial results for the three months ended September 30, 2026. The company reported consolidated net income of $6.9 million, with basic and diluted earnings per common share of $0.76. For the nine months ended September 30, 2026, the company reported consolidated net income of $17.5 million, with basic and diluted earnings per common share of $1.94 and $1.93, respectively.
Key financial highlights for the third quarter of 2026 included basic earnings per share of $0.76, compared to $0.62 in the prior year and $0.64 in the prior quarter. The return on average assets was 1.32%, compared to 1.09% one year prior. The return on average equity was 14.02%, compared to 12.43% one year prior. The tax-equivalent net interest margin was 4.38%, up from 3.84% one year prior. Net loan growth for the quarter was $13.6 million, representing a 3.7% annualized growth rate. Asset quality remained sound with non-performing assets at 0.26% of total assets.
For the year to date 2026, basic earnings per share was $1.94, compared to $1.36 one year prior. The return on average assets was 1.15%, compared to 0.81% one year prior. The return on average equity was 12.26%, compared to 9.47% one year prior. The tax-equivalent net interest margin for the year was 4.19%, up from 3.85% one year prior. Net loan growth for the year was $67.3 million, representing a 4.7% growth rate.
Net interest income fully tax equivalent (FTE) was $21.3 million for the third quarter of 2026, an increase of $1.2 million from the second quarter of 2026. The company recorded no net provision for credit losses in the third quarter of 2026. Net charge-offs totaled $594 thousand in the third quarter of 2026. The allowance for credit losses on loans totaled $14.4 million, or 0.96% of total loans on September 30, 2026. Noninterest income increased to $4.1 million for the third quarter of 2026 from $4.0 million in the prior quarter. Noninterest expense increased to $16.7 million for the third quarter of 2026 from $16.4 million in the prior quarter.
On September 30, 2026, total assets were $2.075 billion, an increase of $44.1 million or 2.2% from September 30, 2025. Loans held for investment net of allowance totaled $1.486 billion, an increase of $67.3 million or 4.7% from September 30, 2025. Total deposits were $1.829 billion, an increase of $19.2 million or 1.1% from September 30, 2025. The company declared and paid cash dividends of $0.17 per common share for the third quarter of 2026. Tangible book value per share grew to $19.94 on September 30, 2026, from $18.26 on September 30, 2025.
