• A regional Bank of America for Virginia, offering traditional banking and wealth management services.
• Think of it as a full-service community bank for Virginia, similar to a localized Wells Fargo.

• Deposit Accounts: A range of accounts including checking, savings, money market, IRAs, and certificates of deposit for individuals and businesses.
• Treasury Management Solutions: Services designed to help businesses manage their cash flow and financial operations efficiently.
• Construction Loans: Financing for residential, land acquisition, and development projects.
• Residential Real Estate Loans: Loans for 1-4 family homes and home equity.
• Commercial Real Estate Loans: Financing secured by various types of commercial properties.
• Commercial and Industrial Loans: Loans for businesses secured by assets like accounts receivable, equipment, and inventory.
• Consumer Loans: Secured and unsecured loans for personal use, including lines of credit and automobile loans.
• Wealth Management: Comprehensive services covering estate planning, investment management, and trustee services.
• Title Insurance: Protection for real estate owners against losses from title defects.
• Investment Services: Financial advisory and management services related to investments.
• Digital Banking Services: Convenient online and mobile banking, including remote deposit capture.

First National (FXNC) serves a diverse customer base in Virginia. As a bank, its customers are generally broad categories of clients rather than a few specific, identifiable major companies. Based on the company description, its major customer categories include:

• Individuals and Estates: This category includes individual consumers who utilize a wide range of personal banking services such as checking, savings, money market, and individual retirement accounts, as well as 1-4 family residential real estate loans, home equity loans, and other secured and unsecured consumer loans. It also encompasses individuals and their estates seeking wealth management services like estate planning, investment management, and trustee services.
• Small and Medium-Sized Businesses: First National provides commercial banking services, construction loans (including land acquisition and development loans), commercial real estate loans, and commercial and industrial loans secured by business assets (accounts receivable, equipment, inventory) to small and medium-sized businesses within its service area.
• Local Governmental Entities and Non-Profit Organizations: The company also serves local governmental entities and non-profit organizations by offering various commercial banking services tailored to their specific needs.

Scott C. Harvard, President and Chief Executive Officer

Scott C. Harvard has served as President and Chief Executive Officer of First National Corporation since May 2011 and as Chief Executive Officer of First Bank since June 2015. Prior to joining the company, Mr. Harvard owned and operated Harvard Resources from 2009 to 2011. He also held the position of Executive Vice President of Hampton Roads Bankshares from 2008 to 2009. From 1985 to 2008, he was President and Chief Executive Officer of Shore Financial Corporation and its wholly-owned subsidiary, Shore Bank. Mr. Harvard has served on the board of directors for the Virginia Bankers Association, including a term as chairman, and is a board member of the Virginia Bankers Association Education Foundation, the Federal Home Loan Bank of Atlanta, and CBB Financial Corp. and its subsidiary, Community Bankers Bank.

Brad Schwartz, Executive Vice President and Chief Financial Officer

Brad Schwartz was appointed Executive Vice President and Chief Financial Officer of First National Corporation and First Bank on March 31, 2025. Most recently, he served as President and Chief Operating Officer of TowneBank until his retirement in December 2022. He held the role of President of TowneBank since July 2021 and Chief Operating Officer since 2016, following the merger of Monarch Bank into TowneBank. Previously, Mr. Schwartz served as Chief Executive Officer of Monarch Bank from 2009 until 2016, and as Chief Financial Officer/Chief Operating Officer of Monarch Bank from 2004 until 2009.

Dennis A. Dysart, President and Chief Operating Officer of First Bank

Dennis A. Dysart currently serves as President and Chief Operating Officer of First Bank. He has been employed by the Bank since 1993 and has held various positions, including Chief Credit Officer (April 2012 to August 2014), Chief Operating Officer (May 2011 to March 2012), Interim Chief Executive Officer (January 2011 to May 2011), Executive Vice President - Chief Administrative Officer (2005 to March 2011), Executive Vice President - Administration (2003 to 2005), and Senior Vice President - Administration (1999 to 2003). Mr. Dysart has been credited with developing First Bank's current branch designs and managing the construction of several branches.

The key risks to First National Corporation (FXNC) primarily stem from its core banking operations and the economic environment in which it operates. These risks include credit risk associated with its loan portfolio, sensitivity to interest rate fluctuations, and challenges in maintaining adequate liquidity and deposit funding.

1. Credit Risk from Real Estate Concentration and Loan Portfolio Quality: As a bank that provides various commercial banking services, First National Corporation has a significant concentration in loans secured by real estate, including residential, land acquisition, development, and commercial real estate loans. Adverse changes in real estate markets could negatively affect the value of collateral and the ability of borrowers to repay these loans, thereby impacting the adequacy of the allowance for credit losses on loans and potentially leading to increased charge-offs and provisions for credit losses.
2. Interest Rate Risk: Changes in interest rates pose a significant risk to First National Corporation. Fluctuations in interest rates can negatively affect the value of the company's securities portfolio and its net interest income. Additionally, rising interest rates could unfavorably impact the ability of the company's customers to repay their loans, leading to higher delinquencies and potential loan losses.
3. Liquidity Risk and Deposit Retention: The ability to maintain adequate liquidity is crucial for First National Corporation to fund loan growth and meet potential demand from deposit customers. The company faces the risk of being unable to retain deposit customers or access secondary funding sources, especially if its reputation, or that of the broader banking industry, were to be damaged. This could impair its financial flexibility and operational stability.

The increasing prevalence and adoption of digital-only banks and specialized financial technology (fintech) companies present a clear emerging threat. These entities leverage technology to offer a wide range of banking services—including deposits, loans (consumer, small business, and commercial), and wealth management—entirely online or via mobile applications, often with lower overheads and more streamlined user experiences. This directly challenges First National's traditional branch-based model and regional focus by providing alternatives that can offer greater convenience, competitive rates, and broader accessibility to customers who may no longer prioritize physical branch proximity. This trend mirrors the disruptive impact of digital platforms on traditional brick-and-mortar businesses, threatening to erode First National's customer base and market share across its core offerings.

First National Corporation (symbol: FXNC) operates primarily in Virginia, offering a range of financial products and services. The addressable market sizes for its main offerings in Virginia are as follows:

• Commercial Banking: The market size for the Commercial Banking industry in Virginia is projected to be $20.9 billion in 2026.
• Real Estate Loans: The market size of the Real Estate Loans & Collateralized Debt industry in Virginia is $108.4 billion in 2026. This category encompasses various real estate-backed loan products, including residential, land acquisition and development, and commercial real estate loans.
• Deposits: Total deposits across all banks in Virginia were $296 billion in 2024.
• Wealth Management: The market size of the Portfolio Management & Investment Advice industry in Virginia is estimated to be $5.7 billion in 2026.
• Title Insurance: While a specific dollar value for the Virginia title insurance market was not directly available, Virginia ranks 12th nationally in title premium reported in NAIC annual statement filings. The global title insurance market was estimated at $4.01 billion in 2024 and is projected to reach $4.152 billion in 2025.

Share Repurchases

• First National Corporation has authorized a stock repurchase plan to buy back up to $5 million of its outstanding common stock.

Share Issuance

• First National Corp had 9 million shares outstanding in fiscal year 2024, marking a 43.3% increase from the prior year.
• The CEO, Harvard Scott C, received a stock grant of 5,225 shares on February 15, 2026.
• The CFO, Brad Schwartz, acquired a total of 6,000 shares through insider purchases over the past year.

Outbound Investments

• First National Corporation completed a merger with Touchstone Bankshares, Inc., which expanded its assets to approximately $2.1 billion and its branch network to 33 offices across Virginia and North Carolina.
• First Bank announced a strategic branch optimization plan on February 12, 2026.

Capital Expenditures

• First National Corp invested $3.3 million in capital expenditures in fiscal year 2024, representing a 76.8% increase from the previous year.
• The average capital expenditures margin (CapEx % AVG 3YRS) for First National Corp over the past 5 years has been 2.7%.