First National Corporation announced unaudited earnings results for the fourth quarter and full year ended December 31, 2013. Net income totaled $7.5 million for the fourth quarter of 2013, compared to $943,000 for the same period of 2012. The significant increase in earnings was primarily a result of the reversal of the valuation allowance on net deferred tax assets which decreased income tax expense by $4.8 million. Return on average assets was 5.65% compared to 0.72% for the fourth quarter of 2012. Return on average equity was 64.03% for the fourth quarter of 2013 compared to 8.37% for the fourth quarter of 2012. Net interest income totaled $4.5 million for the quarter, compared to $4.7 million for the same period one year ago. Income before income taxes was $3.236 million against $1.019 million a year ago. Net income available to common shareholders was $7.293 million or $1.49 per basic and diluted share compared to $717,000 or $0.15 per basic and diluted share a year ago period.

Net income totaled $10.0 million for year ended December 31, 2013 compared to $2.8 million for the same period one year ago. Return on average assets was 1.87% and return on average equity was 22.16% for the year ended December 31, 2013, compared to 0.53% and 6.80%, respectively, for the same period in 2012. Net interest income totaled $18.4 million compared to $19.3 million for 2012. Income before income taxes was $5.252 million against $3.765 million a year ago. Net income available to common shareholders was $9.093 million or $1.85 per basic and diluted share compared to $1.897 million or $0.48 per basic and diluted share a year ago period. Book value per share at December 31, 2013 was $7.98.

For the fourth quarter of 2013, the company reported loan charge-offs of $193,000 compared to $1,210,000 a year ago.