First Bank eligible for federal capital

STRASBURG -- The parent company of First Bank has received preliminary approval from the U.S. Treasury to participate in a government capital infusion plan for financial institutions.

First National Corp. is eligible for an investment of up to $13.9 million through the purchase of newly issued preferred stock.

The company currently is not authorized to issue preferred shares. Shareholders will meet Feb. 24 to vote on an amendment to the company's articles of incorporation for that purpose.

In a written statement, First National President and CEO Harry S. Smith says the company is pleased to have been approved for the program, which he said "signals our status as a healthy financial institution."

"Additional capital would further strengthen our existing well-capitalized position, and would further support continued lending to our customers and to our community," Smith says. "If we choose to participate in the Program, we believe that the Company will be in an even stronger position to help improve the local economy."

-- Daily Staff Report