Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Parent Company Only Financial Statements

Note 22. Parent Company Only Financial Statements

FIRST NATIONAL CORPORATION

(Parent Company Only)

Balance Sheets

December 31, 2013 and 2012

(in thousands)

	2013			2012
Assets
Cash	$	5,395		$	6,406
Investment in subsidiaries, at cost, plus undistributed net income		56,982			47,272
Other assets		470			496
Total assets	$	62,847		$	54,174
Liabilities and Shareholders’ Equity
Trust preferred capital notes	$	9,279		$	9,279
Other liabilities		8			6
Total liabilities	$	9,287		$	9,285
Preferred stock	$	14,564		$	14,409
Common stock		6,127			6,127
Surplus		6,813			6,813
Retained earnings		27,360			18,399
Accumulated other comprehensive loss, net		(1,304	)		(859	)
Total shareholders’ equity	$	53,560		$	44,889
Total liabilities and shareholders’ equity	$	62,847		$	54,174

FIRST NATIONAL CORPORATION

(Parent Company Only)

Statements of Operations

Three Years Ended December 31, 2013

(in thousands)

	2013			2012		2011
Income
Dividends from subsidiary	$	—		$	500	$	1,600
Gain on sale of securities available for sale		—			139		—
Other income		51			41		—
	$	51		$	680	$	1,600
Expense
Interest expense	$	222		$	237	$	386
Stationery and supplies		17			1		14
Legal and professional fees		40			—		—
Data processing		53			—		31
Management fee-subsidiary		95			—		—
Other expense		51			6		47
Total expense	$	478		$	244	$	478
Income (loss) before allocated tax benefits and undistributed income (loss) of subsidiary	$	(427	)	$	436	$	1,122
Allocated income tax benefit		145			22		162
Income (loss) before equity in undistributed income (loss) of subsidiary	$	(282	)	$	458	$	1,284
Equity in undistributed income (loss) of subsidiary		10,156			2,342		(12,245	)
Net income (loss)	$	9,874		$	2,800	$	(10,961	)
Effective dividend and accretion on preferred stock		913			904		894
Net income (loss) available to common shareholders	$	8,961		$	1,896	$	(11,855	)

FIRST NATIONAL CORPORATION

(Parent Company Only)

Statements of Cash Flows

Three Years Ended December 31, 2013

(in thousands)

	2013			2012			2011
Cash Flows from Operating Activities
Net income (loss)	$	9,874		$	2,800		$	(10,961	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in undistributed (income) loss of subsidiary		(10,156	)		(2,342	)		12,245
Gain on sale of securities available for sale		—			(139	)		—
(Increase) decrease in other assets		29			(42	)		45
Increase (decrease) in other liabilities		—			(2	)		2
Net cash provided by (used in) operating activities	$	(253	)	$	275		$	1,331
Cash Flows from Investing Activities
Proceeds from sale of securities available for sale	$	—		$	164		$	—
Cash Flows from Financing Activities
Distribution of capital to subsidiary	$	—			(1,000	)		—
Cash dividends paid on common stock		—			—			(540	)
Cash dividends paid on preferred stock		(758	)		(758	)		(758	)
Net proceeds from issuance of common stock		—			7,601			—
Net cash provided by (used in) financing activities	$	(758	)	$	5,843		$	(1,298	)
Increase (decrease) in cash and cash equivalents	$	(1,011	)	$	6,282		$	33
Cash and Cash Equivalents
Beginning		6,406			124			91
Ending	$	5,395		$	6,406		$	124