Company Quick10K Filing
First National
Price18.61 EPS1
Shares5 P/E14
MCap92 P/FCF13
Net Debt-30 EBIT12
TEV62 TEV/EBIT5
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-09
10-Q 2020-06-30 Filed 2020-08-10
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-13
10-Q 2019-09-30 Filed 2019-11-08
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-14
10-Q 2018-09-30 Filed 2018-11-13
10-Q 2018-06-30 Filed 2018-08-10
10-Q 2018-03-31 Filed 2018-05-07
10-K 2017-12-31 Filed 2018-03-23
10-Q 2017-09-30 Filed 2017-11-13
10-Q 2017-06-30 Filed 2017-08-11
10-Q 2017-03-31 Filed 2017-05-12
10-K 2016-12-31 Filed 2017-03-29
10-Q 2016-09-30 Filed 2016-11-14
10-Q 2016-06-30 Filed 2016-08-12
10-Q 2016-03-31 Filed 2016-05-13
10-K 2015-12-31 Filed 2016-03-30
10-Q 2015-09-30 Filed 2015-11-16
10-Q 2015-06-30 Filed 2015-08-14
10-Q 2015-03-31 Filed 2015-05-15
10-K 2014-12-31 Filed 2015-03-27
10-Q 2014-09-30 Filed 2014-11-14
10-Q 2014-06-30 Filed 2014-08-14
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-25
10-Q 2013-09-30 Filed 2013-11-14
10-Q 2013-06-30 Filed 2013-08-13
10-Q 2013-03-31 Filed 2013-05-13
10-K 2012-12-31 Filed 2013-03-25
10-Q 2012-09-30 Filed 2012-11-14
10-Q 2012-06-30 Filed 2012-08-14
10-Q 2012-03-31 Filed 2012-05-15
10-K 2011-12-31 Filed 2012-03-28
10-Q 2011-09-30 Filed 2011-11-10
10-Q 2011-06-30 Filed 2011-08-12
10-Q 2011-03-31 Filed 2011-05-16
10-K 2010-12-31 Filed 2011-03-24
10-Q 2010-09-30 Filed 2010-11-15
10-Q 2010-06-30 Filed 2010-08-16
10-Q 2010-03-31 Filed 2010-05-17
10-K 2009-12-31 Filed 2010-03-26
8-K 2021-02-18 Enter Agreement, Other Events, Exhibits
8-K 2021-02-11 Other Events, Exhibits
8-K 2021-01-29 Earnings, Exhibits
8-K 2020-12-09 Other Events
8-K 2020-10-29
8-K 2020-09-09
8-K 2020-07-29
8-K 2020-06-29
8-K 2020-06-10
8-K 2020-05-13
8-K 2020-04-29
8-K 2020-04-01
8-K 2020-02-14
8-K 2020-01-28
8-K 2019-12-03
8-K 2019-11-13
8-K 2019-10-25
8-K 2019-08-14
8-K 2019-07-24
8-K 2019-05-09
8-K 2019-04-23
8-K 2019-04-16
8-K 2019-03-15
8-K 2019-02-15
8-K 2019-01-30
8-K 2019-01-23
8-K 2018-10-24
8-K 2018-08-08
8-K 2018-07-24
8-K 2018-05-08
8-K 2018-05-08
8-K 2018-04-18
8-K 2018-02-20
8-K 2018-01-30

FXNC 10Q Quarterly Report

Item 1. Financial Statements
Note 1. General
Note 3. Loans
Note 4. Allowance for Loan Losses
Note 5. Other Real Estate Owned (Oreo)
Note 6. Other Borrowings
Note 7. Capital Requirements
Note 8. Subordinated Debt
Note 9. Junior Subordinated Debt
Note 10. Benefit Plans
Note 11. Earnings per Common Share
Note 12. Fair Value Measurements
Note 13. Stock Compensation Plans
Note 14. Accumulated Other Comprehensive Income (Loss)
Note 15. Revenue Recognition
Note 16. Derivative Financial Instruments
EX-31.1 ex_200536.htm
EX-31.2 ex_200537.htm
EX-32.1 ex_200538.htm
EX-32.2 ex_200539.htm

First National Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
0.80.60.50.30.20.02012201420172020
Assets, Equity
0.10.10.10.00.00.02018201820192020
Rev, G Profit, Net Income
0.20.10.10.0-0.0-0.12012201420172020
Ops, Inv, Fin

fxnc20190603_10q.htm
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Table of Contents



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

 


 

FORM 10-Q

 


 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2020

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                     

 

Commission File Number: 0-23976

 


first1nationalcorporationa09.jpg

 

 (Exact name of registrant as specified in its charter)

 


 

Virginia

54-1232965

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

112 West King Street, Strasburg, Virginia

22657

(Address of principal executive offices)

(Zip Code)

 

(540) 465-9121

(Registrant’s telephone number, including area code)

 


 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common stock, par value $1.25 per share

FXNC

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

  

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 9, 2020, 4,858,217 shares of common stock, par value $1.25 per share, of the registrant were outstanding.

 



 

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

Page

PART I – FINANCIAL INFORMATION

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

Consolidated Balance Sheets as of September 30, 2020 (unaudited) and December 31, 2019

3

 

 

 

 

Consolidated Statements of Income for the three and nine months ended September 30, 2020 and 2019 (unaudited)

4

 

 

 

 

Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2020 and 2019 (unaudited)

6

 

 

 

 

Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019 (unaudited)

7

 

 

 

 

Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2020 and 2019 (unaudited)

9

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

10

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

35

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

53

 

 

 

Item 4.

Controls and Procedures

53

 

PART II – OTHER INFORMATION

 

 

 

Item 1.

Legal Proceedings

54

 

 

 

Item 1A.

Risk Factors

54

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

55

 

 

 

Item 3.

Defaults Upon Senior Securities

55

 

 

 

Item 4.

Mine Safety Disclosures

55

 

 

 

Item 5.

Other Information

55

 

 

 

Item 6.

Exhibits

56

 

 

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

FIRST NATIONAL CORPORATION

Consolidated Balance Sheets

(in thousands, except share and per share data)


 

  

(unaudited)

     
  September 30,  December 31, 
  2020  2019* 

Assets

        

Cash and due from banks

 $13,349  $9,675 

Interest-bearing deposits in banks

  108,857   36,110 

Securities available for sale, at fair value

  117,132   120,983 

Securities held to maturity, at amortized cost (fair value, 2020, $15,638; 2019, $17,646)

  15,101   17,627 

Restricted securities, at cost

  1,848   1,806 

Loans held for sale

     167 

Loans, net of allowance for loan losses, 2020, $7,777; 2019, $4,934

  640,591   569,412 

Premises and equipment, net

  19,548   19,747 

Accrued interest receivable

  3,156   2,065 

Bank owned life insurance

  17,792   17,447 

Core deposit intangibles, net

  43   170 

Other assets

  5,316   4,839 

Total assets

 $942,733  $800,048 
         

Liabilities and Shareholders’ Equity

        
         

Liabilities

        

Deposits:

        

Noninterest-bearing demand deposits

 $256,733  $189,623 

Savings and interest-bearing demand deposits

  480,017   399,255 

Time deposits

  101,645   117,564 

Total deposits

 $838,395  $706,442 

Subordinated debt

  9,987   4,983 

Junior subordinated debt

  9,279   9,279 

Accrued interest payable and other liabilities

  2,816   2,125 

Total liabilities

 $860,477  $722,829 
         
Commitments and contingencies          
         

Shareholders’ Equity

        

Preferred stock, par value $1.25 per share; authorized 1,000,000 shares; none issued and outstanding

 $  $ 

Common stock, par value $1.25 per share; authorized 8,000,000 shares; issued and outstanding, 2020, 4,858,217 shares; 2019, 4,969,716 shares

  6,073   6,212 

Surplus

  6,081   7,700 

Retained earnings

  66,670   62,583 

Accumulated other comprehensive income, net

  3,432   724 

Total shareholders’ equity

 $82,256  $77,219 

Total liabilities and shareholders’ equity

 $942,733  $800,048 

 

*Derived from audited consolidated financial statements.

 

See Notes to Consolidated Financial Statements

 

 

FIRST NATIONAL CORPORATION

Consolidated Statements of Income (Unaudited)

(in thousands, except per share data)


 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

  

September 30,

  

September 30,

 
  

2020

  

2019

  

2020

  

2019

 

Interest and Dividend Income

                

Interest and fees on loans

 $7,568  $7,429  $22,187  $21,625 

Interest on deposits in banks

  25   97   159   340 

Interest and dividends on securities:

                

Taxable interest

  575   645   1,881   2,078 

Tax-exempt interest

  152   157   454   472 

Dividends

  23   26   75   76 

Total interest and dividend income

 $8,343  $8,354  $24,756  $24,591 

Interest Expense

                

Interest on deposits

 $541  $1,089  $2,179  $3,062 
Interest on federal funds purchased     1      1 

Interest on subordinated debt

  160   90   341   269 

Interest on junior subordinated debt

  68   103   225   322 

Interest on other borrowings

           2 

Total interest expense

 $769  $1,283  $2,745  $3,656 

Net interest income

 $7,574  $7,071  $22,011  $20,935 

Provision for loan losses

  1,500      3,200   200 

Net interest income after provision for loan losses

 $6,074  $7,071  $18,811  $20,735 

Noninterest Income

                

Service charges on deposit accounts

 $446  $757  $1,475  $2,173 

ATM and check card fees

  669   586   1,738   1,676 

Wealth management fees

  573   477   1,610   1,372 

Fees for other customer services

  323   177   767   505 

Income from bank owned life insurance

  131   131   345   333 
Net gains on securities available for sale  38      38    

Net gains on sale of loans

  3   34   60   81 

Other operating income

  18   29   40   71 

Total noninterest income

 $2,201  $2,191  $6,073  $6,211 

Noninterest Expense

                

Salaries and employee benefits

 $3,498  $3,556  $10,109  $10,374 

Occupancy

  433   398   1,244   1,237 

Equipment

  439   410   1,267   1,239 

Marketing

  63   143   243   523 

Supplies

  112   86   304   250 

Legal and professional fees

  262   231   842   775 

ATM and check card expense

  259   225   727   666 

FDIC assessment

  52   (6)  142   98 

Bank franchise tax

  162   136   476   402 

Data processing expense

  191   174   563   526 

Amortization expense

  33   71   127   241 

Net gains on disposal of premises and equipment

        (9)   

Other operating expense

  631   762   1,857   2,183 

Total noninterest expense

 $6,135  $6,186  $17,892  $18,514 

 

See Notes to Consolidated Financial Statements

 

 

FIRST NATIONAL CORPORATION

Consolidated Statements of Income (Unaudited)

(Continued)

(in thousands, except per share data)


 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

  

September 30,

  

September 30,

 
  

2020

  

2019

  

2020

  

2019

 

Income before income taxes

 $2,140  $3,076  $6,992  $8,432 

Income tax expense

  386   583   1,290   1,592 

Net income

 $1,754  $2,493  $5,702  $6,840 

Earnings per common share

                

Basic

 $0.36  $0.50  $1.17  $1.38 

Diluted

 $0.36  $0.50  $1.17  $1.38 

 

See Notes to Consolidated Financial Statements

 

 

FIRST NATIONAL CORPORATION

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)


 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

  

September 30,

  

September 30,

 
  

2020

  

2019

  

2020

  

2019

 

Net income

 $1,754  $2,493  $5,702  $6,840 

Other comprehensive income, net of tax,

                

Unrealized holding gains on available for sale securities, net of tax $8 and $99 for the three months and $700 and $875 for the nine months ended September 30, 2020 and 2019, respectively

  26   375   2,632   3,292 

Unrealized holding losses on securities transferred from held to maturity to available for sale, net of tax $0 and $0 for the three months and $0 and ($91) for the nine months ended September 30, 2020 and 2019, respectively

           (340)
Reclassification adjustment for gains included in net income, net of tax ($8) and $0 for the three months and ($8) and $0 for the nine months ended September 30, 2020 and 2019, respectively  (30)     (30)   
Change in fair value of cash flow hedges, net of tax $34 and $0 for the three months and $28 and $0 for the nine months ended September 30, 2020 and 2019, respectively  131      106    

Total other comprehensive income

  127   375   2,708   2,952 

Total comprehensive income

 $1,881  $2,868  $8,410  $9,792 

 

See Notes to Consolidated Financial Statements

 

 

FIRST NATIONAL CORPORATION

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


 

  

Nine Months Ended

 
  September 30,  September 30, 
  2020  2019 

Cash Flows from Operating Activities

        

Net income

 $5,702  $6,840 

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation and amortization of premises and equipment

  992   1,003 

Amortization of core deposit intangibles

  127   241 

Amortization of debt issuance costs

  14   13 

Origination of loans held for sale

  (3,183)  (7,497)

Proceeds from sale of loans held for sale

  3,410   6,899 

Net gains on sales of loans held for sale

  (60)  (81)

Provision for loan losses

  3,200   200 
Net gains on securities available for sale  (38)   

Increase in cash value of bank owned life insurance

  (345)  (333)

Accretion of discounts and amortization of premiums on securities, net

  497   447 

Accretion of premium on time deposits

  (20)  (46)

Stock-based compensation

  254   159 

Excess tax benefits on stock-based compensation

  (2)  (2)
Gains on disposal of premises and equipment  (9)   

Deferred income tax benefit

  (1,030)  (97)

Changes in assets and liabilities:

        

(Increase) decrease in interest receivable

  (1,091)  60 

Decrease (increase) in other assets

  688   (1,122)

(Decrease) increase in accrued expenses and other liabilities

  (28)  210 

Net cash provided by operating activities

 $9,078  $6,894 

Cash Flows from Investing Activities

        

Proceeds from maturities, calls, principal payments, and sales of securities available for sale

 $24,787  $14,431 

Proceeds from maturities, calls, and principal payments of securities held to maturity

  2,444   1,669 

Purchases of securities available for sale

  (18,019)  (2,336)

Net purchase of restricted securities

  (42)  (118)

Purchase of premises and equipment

  (793)  (883)
Proceeds from sale of premises and equipment  9    

Purchase of bank owned life insurance

     (3,000)

Net increase in loans

  (74,379)  (28,694)

Net cash used in investing activities

 $(65,993) $(18,931)

 

See Notes to Consolidated Financial Statements

 

 

FIRST NATIONAL CORPORATION

Consolidated Statements of Cash Flows (Unaudited)

(Continued)

(in thousands)


 

  

Nine Months Ended

 
  September 30,  September 30, 
  2020  2019 

Cash Flows from Financing Activities

        

Net increase in demand deposits and savings accounts

 $147,872  $14,497 

Net (decrease) increase in time deposits

  (15,899)  604 
Proceeds from subordinated debt, net of issuance costs  4,990    

Cash dividends paid on common stock, net of reinvestment

  (1,509)  (1,257)

Repurchase of common stock, stock incentive plan

  (47)  (20)
Repurchase of common stock, employee stock ownership plan     (32)
Repurchase of common stock, stock repurchase plan  (2,071)   

Net cash provided by financing activities

 $133,336  $13,792 

Increase in cash and cash equivalents

 $76,421  $1,755 

Cash and Cash Equivalents

        

Beginning

 $45,785  $28,618 

Ending

 $122,206  $30,373 

Supplemental Disclosures of Cash Flow Information

        

Cash payments for:

        

Interest

 $2,739  $3,658 
Income taxes $2,451  $1,576 

Supplemental Disclosures of Noncash Investing and Financing Activities

        

Unrealized gains on securities available for sale

 $3,294  $4,167 

Unrealized losses on securities transferred from held to maturity to available for sale

 $  $(431)

Fair value of securities transferred from held to maturity to available for sale

 $  $23,036 

Change in fair value of cash flow hedges

 $134  $ 

Issuance of common stock, dividend reinvestment plan

 $106  $83 

 

See Notes to Consolidated Financial Statements

 

 

 

FIRST NATIONAL CORPORATION

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

(in thousands, except share and per share data)


 

  

Common Stock

  

Surplus

  

Retained Earnings

  

Accumulated Other Comprehensive Income

  

Total

 

Balance, June 30, 2019

 $6,206  $7,566  $58,268  $769  $72,809 

Net income

        2,493      2,493 

Other comprehensive income

           375   375 

Cash dividends on common stock ($0.09 per share)

        (447)     (447)

Stock-based compensation

     91         91 

Issuance of 1,498 shares common stock, dividend reinvestment plan

  1   26         27 
Issuance of 3,500 shares common stock, stock incentive plan  5   (5)         
Repurchase of 1,545 shares common stock, employee stock ownership plan  (2)  (30)        (32)

Balance, September 30, 2019

 $6,210  $7,648  $60,314  $1,144  $75,316 

 

  

Common Stock

  

Surplus

  

Retained Earnings

  

Accumulated Other Comprehensive Income

  

Total

 

Balance, June 30, 2020

 $6,065  $5,967  $65,451  $3,305  $80,788 

Net income

        1,754      1,754 

Other comprehensive income

           127   127 

Cash dividends on common stock ($0.11 per share)

        (535)     (535)

Stock-based compensation

     86         86 

Issuance of 2,530 shares common stock, dividend reinvestment plan

  3   33         36 
Issuance of 3,500 shares common stock, stock incentive plan  5   (5)         

Balance, September 30, 2020

 $6,073  $6,081  $66,670  $3,432  $82,256 

 

  

Common Stock

  

Surplus

  

Retained Earnings

  

Accumulated Other Comprehensive Income (Loss)

  

Total

 

Balance, December 31, 2018

 $6,197  $7,471  $54,814  $(1,808) $66,674 

Net income

        6,840      6,840 

Other comprehensive income

           2,952   2,952 

Cash dividends on common stock ($0.27 per share)

        (1,340)     (1,340)

Stock-based compensation

     159         159 

Issuance of 4,232 shares common stock, dividend reinvestment plan

  5   78         83 

Issuance of 8,902 shares common stock, stock incentive plan

  12   (12)         

Repurchase of 1,006 shares common stock, stock incentive plan