First National Q4 net income reaches $5.5 mln

Overview

• Bank holding company reported Q4 net income of $5.5 mln, EPS of $0.61

• Net interest margin rose to 3.95% in Q4, reflecting improved financial performance

• Company's asset quality improved with NPAs declining to 0.32% of total loans

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• TOUCHSTONE INTEGRATION - Integration of Touchstone operations and focus on customer retention contributed to net loan growth

• EXPERIENCED BANKERS - Addition of experienced bankers in Richmond, Roanoke, and Staunton markets supported net loan growth

• LOAN RECOVERY - Non-interest income increased due to recovery from an acquired loan charged off prior to Touchstone acquisition

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for First National Corp is $23.75, about 7% below its January 28 closing price of $25.53

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX5Xwmlj

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