First National (FXNC) Q2 EPS Jumps 19%

First National (NASDAQ:FXNC), a Virginia-based community banking company, released its second quarter fiscal 2025 earnings on July 30, 2025. The company posted record adjusted earnings per share of $0.57 (non-GAAP), topping analyst estimates of $0.49. However, net interest income (GAAP) -- a key measure of bank revenue -- came in at $18.5 million, Net interest income meaningfully underperformed the $22.3 million analyst estimate. Despite the revenue shortfall, the period showed strong improvements in profitability, aided by gains in efficiency (efficiency ratio improved to 65.11%) and net interest margin (fully taxable equivalent net interest margin increased to 3.95%) following the completion of the Touchstone acquisition. The quarter demonstrated sharper cost controls but also saw rising nonperforming assets and muted loan growth, offering a mixed but forward-looking snapshot of the bank's operations.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

First National operates as a community-focused bank, offering a full range of banking services including consumer, commercial, and real estate loans, as well as deposit products. It serves individuals, small businesses, and public entities across Virginia and North Carolina with a network that recently expanded following its acquisition of Touchstone Bankshares.

Source Fool.com