1 Investor PresentationMay 2019 Photography courtesy of Nasdaq, Inc.

Forward-Looking Statements The Company makes forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements may include statements regarding profitability, liquidity, adequacy of capital, the allowance for loan losses, interest rate sensitivity, market risk, growth strategy, and financial and other goals. The words, “believes,” “expects,” “may,” “will,” “should,” “projects,” “contemplates,” “anticipates,” “forecasts,” “intends,” or other similar words or terms are intended to identify forward-looking statements. These forward-looking statements are subject to significant uncertainties. Because of these uncertainties, actual future results may be materially different from the results indicated by these forward-looking statements. In addition, past results of operations do not necessarily indicate future results. The following presentation should be read in conjunction with the consolidated financial statements and related notes included in Part II, Item 8, and Item 1A. Risk Factors of the Company’s Form 10-K for the year ended December 31, 2018. 2

Company Overview 3 Community banking since 1907FXNC listed on Nasdaq Corporate offices in Strasburg and WinchesterOperating primarily in 4 Virginia MSAs on the I-81, I-66 and I-64 corridors14 branches, 1 loan production office$775 million in assetsPersonal banking, business banking, and wealth management servicesStrategy to grow total assets to > $1 billion by serving small businesses and individuals

Why Invest in FXNC? Management team with track record of building value Delivering personal service and the latest technology Diversified markets in attractive Virginia MSAs Low-cost customer deposit relationships 4

Q1 2019 and Full Year 2018 Highlights Q1 2019 Highlights (1)Return on equity of 13.47%, return on assets of 1.21% Net interest income increased $352 thousand, or 5%, to $6.9 million Net interest margin increased 18 basis points to 3.97%Nonperforming assets to total assets remained low at 0.25%2018 HighlightsRecord year of net income totaling $10.1 millionPre-provision pre-tax earnings increased 27%Return on equity of 16.36%Efficiency ratio improved to 63.05% 5 (1) Compared to the first quarter of 2018. Quarterly financial information is unaudited.

FXNC Nasdaq Listed on April 18, 2019 6 Bank Holding Company Enters National Market STRASBURG, VA, April 18, 2019 (The Northern Virginia Daily) – This morning, First National Corporation will be available on the Nasdaq Capital Market exchange. Last year, First National Corporation netted a record $10.1 million, according to a news release. First Bank Now Trading on NasdaqWINCHESTER, VA, April 18, 2019 (The Winchester Star) – When the stock market opens today, Strasburg-based First Bank will be one of a few companies headquartered in the Northern Shenandoah Valley trading on the Nasdaq Stock Market. Photography courtesy of Nasdaq, Inc.

First National Outperformed Major Indices Source: S&P Market Intelligence, total return as of December 31, 2018. 7

Strategies to Build Shareholder Value Deploy Cash and Securities into Loans Serve Vibrant Virginia Markets Maintain Low-Cost Deposit Portfolio Attract and Retain Talented Employees Accelerate Growth with Acquisitions and Team Lifts 8 Grow Assets Without Adding Significant Overhead

Grow Assets Without Adding Significant Overhead 9 * Acquired six bank branches in April 2015. * *

Deploy Cash and Securities Into Loans Source: S&P Market Intelligence. Peer median based on banks in Virginia with assets $500 million to $1 billion as of December 31, 2018.* Acquired six branches in April 2015. 10 *

Serve Vibrant Virginia Markets Virginia’s 2.9% unemployment rate is lower than the nation 1: Source: Virginia Employment Commission, April 20182: Source: Virginia Economic Development Partnership3: Source: S&P Market Intelligence includes Frederick, Shenandoah, Warren, Rockingham, Buckingham and Prince Edward Counties; Cities of Winchester, Staunton and Waynesboro; and all bank deposits within 3 miles of the Patterson Avenue (Richmond) First Bank office. Diverse economies with large regional medical centers and higher education, including Virginia Commonwealth University, University of Richmond, Shenandoah University and Mary Baldwin University Projected Population Growth: 2010 – 2020 1 Virginia is headquarters to 37 Fortune 1000 firms 2 Virginia ranked 5th “Best States for Business” ranking by Forbes More than $9 billion deposits within First Bank’s branch footprint 3 11 Population Growth by MSA:Winchester 20%Richmond 13%Harrisonburg 12%Staunton-Waynesboro 8%

Accelerate Growth with Acquisitions and Team Lifts Acquisition Opportunities in Virginia Branch Acquisition Success Six branches acquired in 2015 including $186 million in deposits Hired Regional President and a market executive to deploy deposits into loans in Staunton - Waynesboro market area Opened Loan Production Office and hired a market executive in Harrisonburg 22 thousand deposit accounts with 0.19% cost of deposits at closing 1 Source: S&P Market Intelligence as of December 31, 2018. 12 Hired a Banking Team and opened a full-service branch in the Richmond market with two seasoned bank executives

Maintain Low Cost Deposit Portfolio 13 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of December 31, 2018.Deposit portfolio composition based on December 31, 2018. 1

Deposits Have Been a Source of Strength 14 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of December 31, 2018. Quarterly financial information is unaudited. 1

Attract and Retain Talented Employees 15

Tangible Book Value Per Share and Earnings Per Share TBVPS Diluted EPS 16 * Acquired six branches in April 2015. *

Performance Metrics Return on Assets Return on Equity Efficiency Ratio * Acquired six branches in April 2015. Net Interest Margin * * * * 17

Diversified Revenue 18 Dollars in millions. Noninterest income composition based on December 31, 2018.

Loan Portfolio and Improved Yield 19 1 Peer median based on banks in Virginia with assets $500 million to $1 billion as of December 31, 2018.Loan portfolio composition based on December 31, 2018. 1

Asset Quality 1 Peer median ratio was based on banks in Virginia with assets $500 million to $1 billion. 20 1

Capital Position Total Risk Based Capital Tangible Common Equity Leverage Total risk based capital and leverage ratios are First Bank. Tangible common equity ratio is First National Corporation.* Acquired six branches in April 2015. * * * 21

Appendix 22

Financial Performance (dollars in thousands) At or for the year ended, except per share data 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 Balance Sheet Assets $518,165 $692,321 $716,000 $739,110 $752,969 Loans, net 371,692 433,475 480,746 516,875 537,847 Deposits 444,338 627,116 645,570 664,980 670,566 Tangible common equity 44,884 43,607 50,582 57,212 66,202 Balance Sheet Ratios Loans / Deposits 85.16% 70.00% 75.29% 78.53% 80.95% TCE / TA 8.66% 6.32% 7.08% 7.75% 8.85% Leverage ratio 1 12.90% 8.12% 8.48% 8.46% 9.26% Total capital ratio 1 19.14% 13.86% 13.47% 13.12% 13.62% Performance Net income 2 $6,493 $1,542 $5,907 $6,448 $10,135 Diluted EPS $1.32 $0.31 $1.20 $1.30 $2.04 ROAA 1.45% 0.41% 0.84% 0.89% 1.34% ROAE 13.49% 4.58% 12.00% 11.57% 16.36% Net interest margin 3.86% 3.52% 3.61% 3.77% 3.93% Efficiency ratio 73.96% 80.92% 71.05% 66.42% 63.05% Asset Quality NPAs / Assets 1.91% 0.94% 0.25% 0.17% 0.42% NCOs / Avg loans 0.02% 0.27% 0.04% 0.02% 0.17% Reserves / Loans 1.77% 1.26% 1.09% 1.02% 0.92% 23 1 First Bank capital ratios.2 Net income available to common shareholders.

Peer Comparison 24 Source: S&P Market Intelligence. Peers defined as banks in Virginia with assets $500 million and $1 billion as of 12/31/18. Ratios are for parent companies, if applicable, except capital ratios, which are for the parent’s bank subsidiary. Data is as of and for the quarter ended December 31, 2018. Return on Assets Return on Equity Efficiency Ratio Net Interest Margin Loans / Deposits Cash & Securities / Deposits NPAs / Assets Reserves / Loans Peer 0.89% FXNC 1.21% Peer 9.07% FXNC 14.2% Peer 72.7% FXNC 63.0% Peer 3.85% FXNC 4.05% Peer 89.1% FXNC 81.0% Peer 17.3% FXNC 25.9% Peer 1.27% FXNC 0.42% Peer 0.91% FXNC 0.92% Median of peer group FXNC 1 standard deviation from the mean 1-4 Family / Loans CRE & Multi / Loans C&I / Loans Non-interest bearing / Deposits Savings & MMDA / Deposits Time / Deposits Total Risk-Based Capital Leverage Ratio Peer 36.7% FXNC 39.3% Peer 41.5% FXNC 41.5% Peer 7.8% FXNC 7.8% Peer 22.8% FXNC 27.1% Peer 46.7% FXNC 43.6% Peer 26.3% FXNC 17.8% Peer 14.2% First Bank 13.6% Peer 10.1% First Bank 9.3%

Stock Profile Source: S&P Market Intelligence, data as of April 23, 2019. Ticker symbol FXNC Exchange Nasdaq Market price $22.20 Common shares outstanding 4,963,487 Market capitalization $110.2 million Insider ownership 10.9% Institutional ownership 11.7% Quarterly cash dividend $0.09, dividend yield 1.62% Average volume (LTM) 1,753 Diluted EPS (LTM) $2.04 Tangible book value per share $13.97 25

Scott Harvard, President and CEO(540) 465-6121sharvard@fbvirginia.comShane Bell, Executive VP and CFO(540) 465-6130sbell@fbvirginia.com