EX-99.2 4 d822956dex992.htm EX-99.2

Investor Presentation First National Corporation November 2014 Exhibit 99.2

Forward-Looking Statement Certain information contained in this discussion may include “forward- looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to the Company’s future operations and are generally identified by phrases such as “the Company expects,” “the Company believes” or words of similar import. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. For details on factors that could affect expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, and other filings with the Securities and Exchange Commission.

Transaction Summary First National Corporation (OTCQB:FXNC), the holding company for First Bank has agreed to purchase six branches from Bank of America in the Shenandoah Valley and central Virginia Average acquired branch size $51 million $308 million in deposits at a deposit premium of 2.25% No loans acquired in transaction Branch staff will be retained by First Bank Expected to close in second quarter of 2015

Transaction Rationale Strategic Rationale Expands physical presence in the Shenandoah Valley and central Virginia Ensures core funding for future loan growth Core deposit base with 42% DDAs and 29% MMA and savings Complements new mortgage initiative in Staunton, Virginia and LPO initiative in Harrisonburg, Virginia Fits with retail relationship banking strategy Total assets will exceed $800 million post transaction Leverages excess capital, effective use of preferred stock Tangible book value dilution earned back in under 2 years More attractive expansion than de novo branching Creates scale and improves efficiencies Purchased deposits only, no credit risk Positive impact in down 100 and up 400 rate scenarios Ensures reliable core funding for loan growth Financial Impact Risk Profile

Strong Core Deposit Base IRAs 9% Checking 22% Interest Checking 20% Savings 7% MMA 22% CDs 20% Total Deposits - $308 million Close to 80% seasoned > 60 months Weighted Average cost of funds 0.21%

Branch Map

Conclusion Expands commercial banking presence in the Shenandoah Valley and central Virginia Quicker path to profitability than de novo branch strategy Complements two loan production offices in Staunton and Harrisonburg Excellent deposit franchise Attractive franchise for recruiting commercial bankers Expect to close early second quarter 2015

Investor Contact M. Shane Bell EVP/Chief Financial Officer 540-465-6130 sbell@fbvirginia.com

OTCQB: FXNC