First National Corporation reported record third-quarter net income of $6.9 million, or $0.76 per diluted share. A wider net interest margin, loan growth and controlled credit costs supported the result.
Margin Expansion Drives Record Earnings
First National released the results on October 23 for the quarter ended September 30. Net income increased from the prior quarter and prior year, while return on average assets reached 1.32%.
| Metric | Q3 2026 | Q2 2026 | Q3 2025 |
|---|---|---|---|
| Diluted EPS | $0.76 | $0.64 | $0.62 |
| Tax-equivalent margin | 4.38% | 4.15% | 3.84% |
| Return on average assets | 1.32% | 1.11% | 1.09% |
Tax-equivalent net interest income rose to $21.3 million from $20.1 million in the second quarter. Acquisition-accounting accretion contributed 18 basis points to the margin, compared with five basis points in the previous quarter.
The margin trend provides a useful contrast with Fusion Market News’ report on Simmons Bank’s improving margin and shrinking balance sheet.
Loan Growth Meets Stable Deposits
Net loans held for investment increased to $1.486 billion from $1.472 billion in June. The $13.4 million quarterly increase represented 3.6% annualized growth, while year-to-date growth reached $67.3 million.
Deposits were broadly stable at $1.829 billion, down $2.4 million from the previous quarter but up $19.2 million from a year earlier. Noninterest-bearing deposits totaled $520.1 million, or 28% of deposits, helping contain funding costs.
Investors can compare that funding profile with recent results from First Citizens BancShares and Capital One Financial.
Credit Quality and Branch Changes Matter Next
First National recorded no net provision for credit losses, although net charge-offs rose to $594,000 from $105,000 in the second quarter. Nonperforming assets increased to $5.4 million from $4.7 million but improved from $5.7 million a year earlier.
The company completed three branch consolidations during the quarter and sold two North Carolina offices in early October. Management expects a one-time gain from that sale in the fourth quarter. Investors should separate that anticipated gain from the bank’s underlying margin, loan and expense trends.
Elsy kanana
Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.
