First National Corp (NASDAQ:FXNC) director James R. Wilkins III made a significant investment in the company's stock on June 10, purchasing shares valued at more than $53,000. This move demonstrates a strong vote of confidence in the bank's future prospects.
The transactions were executed at prices ranging from $15.45 to $15.50 per share. While the exact number of shares bought at each price point was not disclosed, the total investment reflects a notable addition to Wilkins' holdings in the company. The shares were acquired through various holdings entities, namely LTW Holdings, LLC, JRWIV Holdings, LLC, IBW Holdings, LLC, and GSW Holdings, LLC, indicating an indirect ownership structure.
This latest acquisition adds to Wilkins' already substantial position in First National Corp, as he owns an additional 287,543 direct shares and 107,299 indirect shares, according to the footnotes in the SEC filing. The purchase could be interpreted by investors as a sign of the director's belief in the bank's continued growth and stability.
First National Corp, based in Strasburg, VA, operates as a state commercial bank and is a key financial institution in its region. With this purchase, investors and market watchers will be keen to see how the company's stock performs in the coming quarters, and whether other insiders follow suit with their own investments.
In other recent news, First National Corporation and Touchstone Bankshares have announced an all-stock merger, a deal valued at approximately $47.0 million. This merger between the two Virginia-based community banks is expected to result in a combined entity with assets totaling around $2.1 billion, $1.5 billion in loans, and $1.8 billion in deposits. The new entity is projected to be the ninth-largest community bank in Virginia.
First National anticipates the merger to be 36% accretive to earnings per share and expects significant cost synergies, projecting savings of about $7.2 million or 35% of Touchstone's noninterest expense. Touchstone shareholders will receive 0.8122 shares of First National stock for each share of Touchstone stock.
The merger has received unanimous approval from both companies' boards of directors and is expected to close in the fourth quarter of 2024, subject to shareholder and regulatory approvals. Upon completion, three Touchstone directors will join the First National and First Bank (NASDAQ:FRBA) boards, with James Black, current President and CEO of Touchstone, stepping into the role of Executive Vice President and South Region President of First Bank. These are the recent developments in the company's operations.
InvestingPro Insights
Following the recent investment by First National Corp (NASDAQ:FXNC) director James R. Wilkins III, a deeper look into the company's performance metrics provides a more comprehensive picture of its financial health and future prospects. According to real-time data from InvestingPro, First National Corp has a market capitalization of $96.92 million and a Price/Earnings (P/E) ratio of 10.8, which closely aligns with the adjusted P/E ratio for the last twelve months as of Q1 2024, standing at 10.79. This suggests that the company is reasonably valued compared to its earnings.
InvestingPro Tips highlight that First National Corp has a commendable track record of rewarding shareholders, having raised its dividend for 10 consecutive years and maintained dividend payments for 11 consecutive years. This consistent dividend policy may be particularly attractive to investors seeking stable income streams. Additionally, analysts predict the company will be profitable this year, which is supported by the fact that the company has been profitable over the last twelve months. However, it's worth noting that First National Corp suffers from weak gross profit margins, which could be a concern for potential investors.
For those interested in further analysis and additional insights, InvestingPro offers a wealth of information, including more InvestingPro Tips for First National Corp. By visiting https://www.investing.com/pro/FXNC, investors can access these tips and make more informed decisions. To enhance the value of this resource, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. As of now, there are 5 additional InvestingPro Tips available for First National Corp that could provide further guidance on whether the director's recent stock purchase aligns with the company's financial trajectory.
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