First National Raises Cash Dividend 11.8% to $0.19 per Share
Key Facts
First National Corporation said on November 12, 2026, that its board approved a quarterly cash dividend of $0.19 per share, up 11.8% from the previous $0.17, according to a company statement published via GlobeNewswire. The company linked the increase to its financial performance, while the decision raises the amount shareholders receive for each share in the next quarterly distribution. Chief Executive Scott Harvard said the company had increased its total annual cash dividends every year over the past eleven years. The announcement follows the company's third-quarter results, which showed net income of $6.9 million and basic and diluted earnings per share of $0.76. The company set November 27, 2026, as the record date for eligible shareholders, with payment scheduled for December 11.
Basic earnings per share were $0.76 in the third quarter of 2026, compared with $0.62 a year earlier and $0.64 in the previous quarter, according to the results report published via Nasdaq. That put quarterly performance above both the annual and quarterly comparisons, in the context of the decision to raise the cash dividend. Net interest margin on a tax-equivalent basis was also 4.38%, compared with 4.15% in the second quarter and 3.84% in the third quarter of 2025. The company said organic loan growth continued during the quarter and new loan production was strong across all its markets. It also attributed its performance to an improved net interest margin, asset quality and expense management.
Net interest income on a tax-equivalent basis was $21.3 million in the third quarter, up $1.2 million from $20.1 million in the second quarter. The company attributed the increase to improved yields and income related to acquisition accounting. Net loans held for investment, after deducting the allowance for losses, were $1.486 billion on September 30, 2026, up 4.7% from $1.419 billion on September 30, 2025. On the funding side, deposits totaled $1.829 billion at the end of September, up $19.2 million, or 1.1%, year over year. They declined $2.4 million from the previous quarter, however, which the company described as an annualized decline of 0.5%.
The company said the bank had $721.6 million in available liquidity sources on September 30, 2026, including deposits at banks, unpledged securities and available lines of credit. The total was $747.8 million on June 30, 2026, and then rose compared with $676.1 million on September 30, 2025. On asset quality, the company said nonperforming loans edged up from the previous period but improved from a year earlier. Nonperforming assets were $5.4 million on September 30, compared with $4.7 million on June 30 and $5.7 million on September 30, 2025. These indicators provide a broader financial picture for the period before the dividend increase announcement, alongside earnings and net interest margin growth.
The company also plans to complete improvements to its branch network by the end of 2026, reducing the number of banking locations from 33 to 28, according to its third-quarter report. It had 28 banking locations when it announced the results, the statement said. First National operates as the parent company and bank holding company of First Bank, a community bank that began operations in Strasburg, Virginia, in 1907. In trading on November 11, 2026, the company's shares, ticker FXNC, closed at $30.3, according to EL7 data. The close came in the session before the dividend increase was announced on November 12.