First National Corp
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
Business model, numbers and balance sheet hold up to our review. Whether the current price supports an entry is a separate question — it hangs on the price, not on the company.
Why this colour
The business model has held up since 1907, capital is solid (CET1 12.60 percent), credit quality is good (NPAs 0.23 percent, coverage 315 percent), and earnings power has clearly improved since the Touchstone integration (ROA above 1 percent, ROE 12 percent in the second quarter of 2026). The 2023/2024 swings are explained by documented, one-time merger costs, with no material operating concern left open. That the efficiency ratio rose to 68.18% in 2025 (2024: 66.73%) is a genuine minus on the cost side — it clouds the quality of earnings, but does not call the business model into question. That the valuation, at roughly 1.6 times tangible book value near its 52-week high, is no longer cheap does not change that assessment — that is a question of price, which the scanners answer, not the quality rating. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
First National is a 119-year-old community bank out of Strasburg, Virginia, that delivered a net interest margin of 4.15 percent, a return on equity of 12.03 percent and solid credit quality by mid-2026. A meaningful share of the record numbers, however, comes from the acquisition of Touchstone Bankshares (closed October 1, 2024) and its one-time effects — organic growth in loans and deposits is documented for only two quarters so far. On top of that sit a purchased physician-loan portfolio with no safety net and a rate reset on the last remaining subordinated note in January 2027. Not investment advice.
Earnings power after the integration
Return on assets (ROA) of 1.11 percent and return on equity (ROE) of 12.03 percent in the second quarter of 2026, both above the prior quarter. The net interest margin rose to 4.15 percent while the purchase-accounting accretion from the Touchstone acquisition shrank over the same period from 19 to just 5 basis points — the gain is increasingly earned in the ongoing banking business.
Credit quality
Non-performing assets (NPAs) stood at just 0.23 percent of total assets as of June 30, 2026, covered at 315 percent by the loan-loss reserve (a good three times over) — a marked improvement from a year earlier (223 percent). No foreclosed real estate on the books, no loans past due 90 days and still accruing interest.
Deposit base and funding cost
28 percent of deposits are non-interest-bearing ($520.5 million, June 30, 2026), and the average cost of funds fell from 1.44 percent (Q2 2025) to 1.21 percent (Q2 2026) — a cheap, broadly diversified deposit base without a notable concentration in pricier time deposits.
Cost efficiency (efficiency ratio)
The efficiency ratio — how many cents of expense the bank needs per dollar of revenue, where lower is better — deteriorated to 68.18% in 2025 from 66.73% in 2024. In the record year, of all years, the bank got more expensive to run rather than leaner — and that on a metric that already strips out merger costs. The branch optimization announced for late 2026 (33 down to 28 locations) is aimed squarely at this.
Capital cushion and unrealized losses in the bond book
A solid common equity tier 1 (CET1) ratio of 12.60 percent (June 30, 2026), well above regulatory requirements. Against that stand $23.0 million of unrealized losses in the securities portfolio ($15.8 million AFS, $7.2 million HTM) against $193.6 million of equity — rate-driven, not a credit concern, but a tangible drag.
Source of growth
The share count has risen 85 percent since 2020, driven mainly by two acquisitions (Fincastle in 2021, Touchstone in 2024). In 2025 itself, loans (−$15.2 million) and deposits (−$4.2 million) actually shrank versus 2024 — organic growth is documented only since the first quarter of 2026 (+$14.7 million in loans, accelerating to +$22.7 million in the second).
Legacy physician-loan portfolio
A purchased physician-loan portfolio of $11.9 million (June 30, 2026) carries a 40 percent premium over face value, and the quarterly report says the seller's former buyback protection has disappeared without replacement. $1.8 million of it is already classified as non-accrual.
Worth Noting
This analysis started from an editorial review of small U.S. community banks after the recent rate cycle: First National stood out for a net interest margin above 4 percent, the discounted acquisition of Touchstone Bankshares, and a valuation near 1.6 times tangible book value (data as of August 26, 2026).
All balance-sheet and earnings figures are as of June 30, 2026 (10-Q) or December 31, 2025 (10-K); price, market capitalization and valuation metrics are dated August 26, 2026 and move with the market daily.
Not to be confused with other banks that also use "First National" in their name — this analysis covers exclusively First National Corporation, Nasdaq ticker FXNC, CIK 0000719402, headquartered in Strasburg, Virginia.
Stock Watch
This analysis is as of August 28, 2026. Stock Watch will tell you what's changed at FXNC since then.
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Price history
Chart
Interactive price chart (TradingView).
52-week range: 21.80 $ to 32.40 $ · Last price: 30.90 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Banks - Regional
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| First National Corp FXNC | 0.3 | 13.2 | 0.0 | 100.0 | – | 27.1 | 35.1 |
| Mizuho Financial Group Inc. MFG | 135.7 | 17.4 | 0.0 | 100.0 | 46.7 | 10.4 | 70.5 |
| HDFC Bank Limited HDB | 116.5 | 15.8 | 0.0 | 100.0 | 33.3 | 24.3 | -33.2 |
| ICICI Bank Limited IBN | 101.0 | 17.5 | 0.0 | 100.0 | 38.5 | 6.0 | -12.0 |
| U.S. Bancorp USB | 92.6 | 12.8 | 0.0 | 100.0 | 37.8 | 0.4 | 26.3 |
| PNC Financial Services Group Inc PNC | 92.4 | 13.6 | 0.0 | 100.0 | 36.7 | -7.0 | 17.6 |
| Itau Unibanco Banco Holding SA ITUB | 91.5 | 10.0 | 0.0 | 100.0 | 39.1 | 18.0 | 29.3 |
| Deutsche Bank AG DB | 73.5 | 10.3 | 0.0 | 100.0 | 33.4 | -8.3 | 11.7 |
| Nu Holdings Ltd NU | 67.3 | 21.7 | 0.0 | 100.0 | 48.2 | 43.0 | -13.1 |
| Median of companies shown | 92.4 | 13.6 | 0.0 | 100.0 | 38.2 | 10.4 | 17.6 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 33 | 8 | 6 | 1.20 | 9 | 51 | 717 |
| 2017 | 35 | 10 | 6 | 1.30 | 7 | 58 | 739 |
| 2018 | 39 | 12 | 10 | 2.04 | 14 | 67 | 753 |
| 2019 | 41 | 12 | 10 | 1.92 | 12 | 77 | 800 |
| 2020 | 40 | 11 | 9 | 1.82 | 15 | 85 | 951 |
| 2021 | 46 | 13 | 10 | 1.86 | 8 | 117 | 1,389 |
| 2022 | 61 | 21 | 17 | 2.68 | 27 | 108 | 1,369 |
| 2023 | 68 | 12 | 10 | 1.53 | 16 | 116 | 1,419 |
| 2024 | 88 | 8 | 7 | 1.00 | -22 | 167 | 2,010 |
| 2025 | 112 | 22 | 18 | 1.96 | 25 | 186 | 2,038 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | -0.10 | – | 29 | 59.20 | -3.30 | -37 | -38 |
| 2025: Q1 | 0.18 | -50.20 | 27 | 35.80 | 5.90 | 4 | 3 |
| 2025: Q2 | 0.56 | 106.80 | 29 | 47.20 | 17.70 | 5 | 4 |
| 2025: Q3 | 0.61 | 146.90 | 30 | 46.20 | 18.70 | 8 | 7 |
| 2025: Q4 | 0.61 | – | 30 | 4.80 | 18.40 | 9 | 7 |
| 2026: Q1 | 0.54 | 205.80 | 28 | 3.50 | 17.40 | 6 | 6 |
| 2026: Q2 | 0.63 | 12.50 | 3 | -88.10 | 167.60 | 7 | 7 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 15 of our scanner strategies — each hit links to the scanner.
Backtested Scanners
Best Hits
Breakout & Setup
Momentum & Trend
- 21-EMA Trend
- Above 21-EMA Pullback
- Above the 50- & 200-SMA
- Mark Minervini: Trend Criteria — 1 Month
- Near 52-Week High
- Power Trend
- Stan Weinstein: Stage 2
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 2.44 | 2.42 – 2.45 | 96 | 15.1% | 3 |
| 12/31/2027 | 2.57 | 2.55 – 2.60 | 100 | 5.5% | 3 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly -1.6% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $27.5M |
|---|---|
| Market cap | $280.0M |
| Free cash flow in year ten | $23.4M |
| Terminal value as a share of market value | 44.0% |
For comparison: over the past five years free cash flow grew by 8.2% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Kein wesentlicher KI-Bezug: KI erscheint in den geprüften Berichten nur als generischer Risikofaktor (Cyber-Risiken, mögliche künftige Nutzung) — keine KI-Umsatzquelle, kein belegter operativer Einsatz, keine konkrete Bedrohung des Geschäftsmodells.
View the full file — quotes, sources, reviewed filings
„Risks and exposures related to cybersecurity attacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of internet banking, mobile banking and other technology-based products and services by the Company and its customers. The continued evolution and increased usage of artificial intelligence technologies may further increase these risks."
Die Risiken und Gefährdungen durch Cyberangriffe werden auf absehbare Zeit hoch bleiben — wegen der sich rasch wandelnden Natur und der zunehmenden Raffinesse dieser Bedrohungen sowie wegen der ausgeweiteten Nutzung von Internet-Banking, Mobile-Banking und anderen technikgestützten Produkten und Dienstleistungen durch das Unternehmen und seine Kunden. Die fortschreitende Entwicklung und die zunehmende Nutzung von Technologien der Künstlichen Intelligenz könnten diese Risiken weiter erhöhen.
10-K · 2026-03-25 · View SEC filing
„Further, the Company may utilize new technology, such as AI, in connection with its business and operations. AI may be developed internally, or may be provided by third- or fourth-party service providers."
Darüber hinaus könnte das Unternehmen im Zusammenhang mit seinem Geschäft und seinem Betrieb neue Technologien wie KI einsetzen. KI kann intern entwickelt oder von Dritt- oder Viertanbietern bereitgestellt werden.
10-K · 2026-03-25 · View SEC filing
Filings Reviewed: 10-Q 2026-08-13 · 10-Q 2026-05-13 · 10-Q 2025-11-14 · 10-Q 2025-08-13 · 10-K 2026-03-25 · 10-K 2025-03-31
Rated on August 28, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 22.7%
- More than 10% revenue growth is expected for the coming year 3.7%
- Share count grows by less than 3% a year 12.9%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 45.8%
- Gross margin at 40% or higher and without meaningful erosion 74.0%
- Goodwill from acquisitions does not grow faster than revenue 0.2%
- Net debt below twice EBITDA 135 m net cash
- Operating cash flow covers the profits of the last three years -15 m
- Return on capital at 15% or higher, or up versus two years ago 9.2%
- Insiders hold at least 10% or are net buyers 14.3%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
6/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 14.6%
- Exp. sales growth 3Y > 5% -5.7%
- EBIT growth 10Y > 5% 11.5%
- Exp. EBIT growth 3Y > 5% 14.5%
- Net debt < 4x EBIT -6.2x
- EBIT positive, 10Y straight 10
- Max. EBIT decline < 50% 61.2%
- Return on equity > 15% 10.4%
- ROCE > 15% 9.2%
- Expected return > 10% 23.1%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Aug 12, 2026 | Funk William Michael | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Brannock Boyce E | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Patel Kirtesh | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Smith Gerald F JR | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Wilkins Iii James R | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Wagstaff Norman D Jr | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Wilkinson William Simmons | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Lee-Andrews Toni T | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Beck Emily Marlow | Director | Other | 1,113 | 0.00 | – |
| Aug 12, 2026 | Aikens Jason C | Director | Other | 1,113 | 0.00 | – |
The company
About the Company
First National Corporation ist die Bankholding der First Bank, die kleinen und mittleren Unternehmen, Privatpersonen, Nachlässen, lokalen Behörden und gemeinnützigen Organisationen in Virginia verschiedene gewerbliche Bankdienstleistungen anbietet. Die Einlagenprodukte des Unternehmens umfassen…
- Employees
- 308
- Headquarters
- Strasburg, VA
- Address
- 112 West King Street, 22657 Strasburg, United States
- Phone
- 540 465 9121
- Website
- fbvirginia.com
- IPO Date
- 01/02/2001
- ISIN
- US32106V1070
- Stock Split
- 2:1 on 05/02/2005
- Stock Split
- 2:1 on 06/02/2003
Management
| Name | Title | Birth Year |
|---|---|---|
| Scott C. Harvard | President, CEO & Director | 1955 |
| James R. Wilkins III | Independent Vice Chair & Secretary | 1969 |
| Brad E. Schwartz CPA | Executive VP & CFO | 1963 |
| Dennis A. Dysart | Senior EVP & COO | 1972 |
| W. Todd Ross | Market President | – |
| Joe A. Shearin | President of Greater Richmond Market | 1956 |
| Chris Layne | SVP of Regional Market Executive | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.