First National Corporation announced unaudited earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported total interest income was $7,265,000 against $6,426,000 a year ago. Net interest income was $6,605,000 against $5,913,000 a year ago. The increase resulted from a higher net interest margin and higher average earning asset balances. Net interest income after provision for loan losses was $6,505,000 against $5,913,000 a year ago. Income before income taxes was $2,840,000 against $2,405,000 a year ago. Net income was $1,317,000 against $1,681,000 a year ago. Net income per basic and diluted share was $0.27 against $0.34 a year ago. Return on average assets was 0.71% against 0.94% a year ago. Return on average equity was 9.01% against 13.04% a year ago. Non-GAAP total tax-equivalent net interest income was $6,698,000 against $6,009,000 a year ago. The increase in other operating income was attributable to a $305,000 life insurance benefit recorded during the fourth quarter of 2017.  These increases were partially offset by net losses on sales of securities totaling $114,000 and a $99,000 decrease in service charges on deposits.

For the year, the company reported total interest income of $27,652,000 against $25,237,000 a year ago. Net interest income was $25,266,000 against $23,255,000 a year ago. Net interest income after provision for loan losses was $25,166,000 against $23,255,000 a year ago. Income before income taxes was $10,174,000 against $8,260,000 a year ago. Net income was $6,448,000 against $5,907,000 a year ago. Net income per basic and diluted share was $1.30 against $1.20 a year ago. Return on average assets was 0.89% against 0.84% a year ago. Return on average equity was 11.57% against 12.00% a year ago. Non-GAAP total tax-equivalent net interest income was $25,638,000 against $23,646,000 a year ago.

For the fourth quarter of 2017, the company's net charge-offs was $75,000 against $289,000 a year ago.