First National makes profit in second quarter

Daily Staff Reports

First National Corporation, parent company of First Bank, is reporting that it earned a profit during the second quarter of 2012.

The company reported a net income of $694,000, an improvement over the net loss of $945,000 a year ago, according to a news release from the company.

First National's net income available to common shareholders totaled $467,000, or $0.16 per basic and diluted share, up from the $1.2 million net loss available to common shareholders in the second quarter of 2011, according to the release.

Return on average assets was 0.53 percent and return on average equity was 7.21 percent, both vast improvements from the same quarter last year.

Provision for loan losses decreased to $650,000, compared to $2.0 million from the first quarter of 2012, and loan charge-offs decreased to $358,000 in the most recent quarter.

First National raised $7.8 million in gross proceeds from a rights offering of common stock and from standby investors, which improved its capital position.