FIRST NATIONAL CORP /VA/ Segments Disclosure
Note 26. Segment Reporting
The Company has reportable segments. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report.
The reportable segments are:
| ● | Community Banking - The Community Banking segment involves making loans and generating deposits from individuals, businesses, and charitable organizations. Loan fee income, service charges from deposit accounts, and other non-interest-related fees, such as fees for debit cards and ATM usage and fees for brokered mortgage services, generates income for the Banking segment. |
| ● | Wealth Management Services – Wealth Management Services offers corporate trustee services, trust and estate administration, IRA administration and custody services. Revenue for this segment is generated from administration, service and custody fees, as well as, management fees which are derived from assets under management. Investment management services currently are offered through in-house and third-party managers. |
The Company's chief operating decision maker (CODM) is the President and Chief Operating Officer of the Bank. The CODM uses income, operating expenses and net income to evaluate income generated from the operating segments. Net income is used to monitor budget versus actual results and profitability. Financials of the operating segments are reviewed monthly to assess the performance of the segments.
Segment information for the years ended December 31, 2025 and 2024 is shown in the following tables. Note that asset information is not reported below, as the assets of the Company are reported at the Bank level. Assets under management by Wealth Management Services were $478 million and $471 million at December 31, 2025 and 2024, respectively.
| 2025 | ||||||||||||
| Community Banking | Wealth Management | Total | ||||||||||
| Interest Income | $ | 99,195 | $ | 302 | $ | 99,497 | ||||||
| Interest Expense | 26,251 | — | 26,251 | |||||||||
| Net interest income | $ | 72,944 | $ | 302 | $ | 73,246 | ||||||
| Provision for credit losses | 2,887 | — | 2,887 | |||||||||
| Net interest income after provision for credit losses | $ | 70,057 | $ | 302 | $ | 70,359 | ||||||
| Noninterest Income: | ||||||||||||
| Service charges on deposit accounts | $ | 3,955 | $ | — | $ | 3,955 | ||||||
| ATM and check card fees | 4,584 | — | 4,584 | |||||||||
| Wealth management fees | — | 3,611 | 3,611 | |||||||||
| Other operating income | 4,868 | — | 4,868 | |||||||||
| Total noninterest income | $ | 13,407 | $ | 3,611 | $ | 17,018 | ||||||
| Noninterest Expense | ||||||||||||
| Salaries and employee benefits | $ | 32,829 | $ | 834 | $ | 33,663 | ||||||
| Occupancy | 4,005 | 29 | 4,034 | |||||||||
| Equipment | 4,301 | 4 | 4,305 | |||||||||
| Legal and professional fees | 2,427 | 15 | 2,442 | |||||||||
| Data processing expense | 2,113 | 149 | 2,262 | |||||||||
| Investment management | — | 1,325 | 1,325 | |||||||||
| Other operating expense | 17,369 | 33 | 17,402 | |||||||||
| Total noninterest expense | $ | 63,044 | $ | 2,389 | $ | 65,433 | ||||||
| Income before income taxes | $ | 20,420 | $ | 1,524 | $ | 21,944 | ||||||
| Income tax expense | 3,946 | 295 | 4,241 | |||||||||
| Net income | $ | 16,474 | $ | 1,229 | $ | 17,703 | ||||||
| 2024 | ||||||||||||
| Community Banking | Wealth Management | Total | ||||||||||
| Interest Income | $ | 76,037 | $ | 282 | $ | 76,319 | ||||||
| Interest Expense | 23,867 | — | 23,867 | |||||||||
| Net interest income | $ | 52,170 | $ | 282 | $ | 52,452 | ||||||
| Provision for credit losses | 7,850 | — | 7,850 | |||||||||
| Net interest income after provision for credit losses | $ | 44,320 | $ | 282 | $ | 44,602 | ||||||
| Noninterest Income: | ||||||||||||
| Service charges on deposit accounts | $ | 3,122 | $ | — | $ | 3,122 | ||||||
| ATM and check card fees | 3,305 | — | 3,305 | |||||||||
| Wealth management fees | — | 3,617 | 3,617 | |||||||||
| Other operating income | 6,336 | — | 6,336 | |||||||||
| Total noninterest income | $ | 12,763 | $ | 3,617 | $ | 16,380 | ||||||
| Noninterest Expense | ||||||||||||
| Salaries and employee benefits | $ | 24,292 | $ | 842 | $ | 25,134 | ||||||
| Occupancy | 2,544 | 29 | 2,573 | |||||||||
| Equipment | 3,127 | 4 | 3,131 | |||||||||
| Legal and professional fees | 1,974 | 19 | 1,993 | |||||||||
| Data processing expense | 1,256 | 148 | 1,404 | |||||||||
| Investment management | — | 1,307 | 1,307 | |||||||||
| Other operating expense | 17,362 | 30 | 17,392 | |||||||||
| Total noninterest expense | $ | 50,555 | $ | 2,379 | $ | 52,934 | ||||||
| Income before income taxes | $ | 6,528 | $ | 1,520 | $ | 8,048 | ||||||
| Income tax expense | 878 | 204 | 1,082 | |||||||||
| Net income | $ | 5,650 | $ | 1,316 | $ | 6,966 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 25, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.