FIRST NATIONAL CORPORATION Financial Statements (Form 10-Q) March 31, 1997
SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended MARCH 31, 1997 Commission File Number 0-13663 FIRST NATIONAL CORPORATION (Exact name of registrant as specified in its charter) SOUTH CAROLINA 57-0799315 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 950 JOHN C. CALHOUN DRIVE, SE, ORANGEBURG, SC 29115 (Address of principal executive offices) (Zip Code) (803) 534-2175 Registrant's telephone number, including area code NOT APPLICABLE Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period, that the registrant was required to file such report) and (2) has been subject to such filing requirements for the past 90 days. YES 'X' NO Indicate the number of shares outstanding of each of issuer's class of securities. CLASS OUTSTANDING as of March 31, 1997 Common Stock, $5 par value 2,551,091
FIRST NATIONAL CORPORATION INDEX Part I: Financial Information Item 1 - Financial Statements Consolidated Balance Sheet - March 31, 1997 and December 31, 1996 Consolidated Statement of Income - Three Months Ended March 31, 1997 and 1996 Consolidated Statement of Cash Flows - Three Months Ended March 31, 1997 and 1996 Notes to Consolidated Financial Statements Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Part II: Other Information Item 1 - Legal Proceedings Item 6 - Exhibits and Reports on Form 8-K (a) Exhibit 27 - Financial Data Schedule (b) Reports on Form 8-K: None
PART I - FINANCIAL INFORMATION Item l. Financial Statements FIRST NATIONAL CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) ASSETS 3-31-97 12-31-96 (Dollars in thousands) Cash and due from banks $ 27,313 $ 28,824 Federal funds sold 16,450 0 Investment securities - Note 2 Securities held-to-maturity (fair value of $59,090 in 1997 and $65,504 in 1996) 58,993 65,197 Securities available-for-sale, at fair value 109,776 95,684 Total Investment securities 168,769 160,881 Loans - Note 3 307,931 296,865 Less: Unearned income (3,494) (3,246) Allowance for loan losses - Note 4 (5,022) (4,705) Loans, net 299,415 288,914 Premises and equipment 10,800 10,848 Intangible assets 2,903 2,962 Other real estate - Note 6 46 63 Other assets 6,137 5,140 TOTAL ASSETS $531,833 $497,632
Consolidated Balance Sheets - Continued....... LIABILITIES & STOCKHOLDERS' EQUITY 3-31-97 12-31-96 (Dollars in thousands) LIABILITIES: Deposits in domestic offices: Noninterest-bearing $ 69,196 $ 67,232 Interest-bearing - Note 7 372,155 346,921 Total deposits 441,351 414,153 Federal funds purchased & securities sold under agreement to repurchase 38,139 32,547 Other liabilities 3,381 2,586 TOTAL LIABILITIES 482,871 449,286 Commitments & contingent liabilities - Note 8 STOCKHOLDERS' EQUITY: Common stock - $5 par value; authorized 5,000,000 shares; issued and outstanding 2,551,091 shares in 1997, and 2,550,024 shares in 1996 - Note 9 12,756 12,750 Additional paid-in capital 22,881 22,856 Retained earnings 13,910 12,790 Unrealized gain (loss) on securities available- for-sale, net of applicable deferred income taxes (585) (50) TOTAL STOCKHOLDERS' EQUITY 48,962 48,346 TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $531,833 $497,632
FIRST NATIONAL CORPORATION CONSOLIDATED STATEMENT OF INCOME (Unaudited) 3 Months Ended 03-31-97 03-31-96 (Dollars in thousands, except per share data) Interest income: Interest & fees on loans $6,899 $5,916 Interest & dividends on investment sec.: Taxable income 2,027 1,576 Non-taxable income 409 460 Dividends on stock 17 6 Interest on federal funds sold 207 196 Total Interest income 9,559 8,154 Interest expense: Interest on deposits 3,504 3,068 Interest on federal funds purchased & securities sold under agreements to repurchase 465 352 Total Interest Expense 3,969 3,420 Net Interest Income 5,590 4,734 Provision for loan losses - Note 4 284 220 Net interest income after provision for loan losses 5,306 4,514 Noninterest income: Service charges on deposit accounts 1,005 986 Other service charges commissions, fees 490 319 Other operating income 10 8 Total noninterest income 1,505 1,313 Noninterest expense: Salaries & employee benefits 2,427 2,044 Occupancy expense of bank premises-net 326 274 Furniture & equipment expense - net 386 294 Amortization expense-Intangible assets 145 155 Other expense 1,214 1,112 Total noninterest expense 4,498 3,879 Income before income taxes 2,313 1,948 Applicable income taxes 708 551 Net Income $1,605 $1,397 Net income per common share - Note 10 $0.63 $0.59 Cash dividends per common share $0.19 $0.18
FIRST NATIONAL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 3 Months Ended 3 Months Ended 03-31-97 03-31-96 (Dollars in thousands) Cash flows from operating activities: Net income $ 1,605 $ 1,397 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 418 357 Provision for loan losses 284 220 Provision for deferred taxes 0 123 Increase (decrease) in reserve for income taxes - current 707 496 (Gain) loss on sale of premises and equipment 0 0 (Increase) decrease in interest receivables (305) (22) Increase (decrease) in accumulated premium amortization and discount accretion - net (32) (361) Increase (decrease) in interest payable 212 19 (Increase) decrease in miscellaneous assets (21) 32 (Increase) decrease in prepaid assets (339) 247 Increase (decrease) in other liabilities (197) (43) Total adjustments 727 1,068 Net cash provided by operating activities 2,332 2,465
Consolidated Statements of Cash Flows - Continued....... 3 Months Ended 3 Months Ended 03-31-97 03-31-96 ( Dollars in thousands) Cash flows from investing activities: Proceeds from maturities of investment securities held-to-maturity 7,476 25,556 Purchase of investment securities held-to-maturity (1,238) (1,048) Proceeds from maturities of investment securities available-for-sale 5,967 4,316 Purchase of investment securities available-for-sale (20,923) (27,731) Net (increase) decrease in customer loans (10,885) (4,646) Additions to premises and equipment (225) (413) Proceeds from sale of premises and equipment 0 0 Recoveries from loans previously charged off 100 83 (Increase) decrease in funds sold (16,450) (16,000) Net cash used in investing activities (36,178) (19,883) Cash flows from financing activities: Net increase in demand deposits, NOW accounts, savings accounts and certificates of deposit 27,198 11,071 Sale of common stock 30 172 Net increase (decrease) in federal funds purchased and securities sold under agreement to repurchase 5,592 5,458 Dividends paid (485) (404) Net cash provided by financing activities 32,335 16,297 Net increase (decrease) in cash and cash equivalents (1,511) (1,121) Cash and cash equivalents at beginning of year $28,824 $24,144 Cash and cash equivalents at end of period $27,313 $23,023
FIRST NATIONAL CORPORATION Note 1 - Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 1997 are not necessarily indicative of the results that may be expected for the year ended December 31, 1997. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 1996. All dollar amounts are stated in thousands, except per share data. Note 2 - Investment Securities: The following is the amortized cost and fair value of investment securities held-to-maturity at March 31, 1997 and December 31, 1996: <TABLE> <CAPTION> 03-31-97 12-31-96 Gross Gross Gross Gross Amort Unreal Unreal Fair Amort Unreal Unreal Fair Cost Gains Losses Value Cost Gains Losses Value <S> <C> <C> <C> <C> <C> <C> <C> <C> U S Treasury securities 9,686 18 (13) 9,691 13,794 50 (2) 13,842 Obligations of U S government agencies & corps 16,185 50 (182) 16,053 16,825 70 (167) 16,728 Obligations of state and political subdivisions 33,122 357 (133) 33,346 34,578 432 (76) 34,934 Total 58,993 425 (328) 59,090 65,197 552 (245) 65,504 </TABLE>
Note 2 - Continued... The following is the amortized cost and fair value of securities available-for-sale at March 31, 1997 and December 31, 1996: <TABLE> <CAPTION> 03-31-97 12-31-96 Gross Gross Gross Gross Amort Unreal Unreal Fair Amort Unreal Unreal Fair Cost Gains Losses Value Cost Gains Losses Value <S> <C> <C> <C> <C> <C> <C> <C> <C> U S Treasury securities 28,545 1 (235) 28,311 24,094 27 (62) 24,059 Obligations of U S government agencies & corps 81,564 75 (784) 80,855 71,061 224 (270) 71,015 Other securities 610 0 0 610 610 0 0 610 Total 110,719 76 (1,019) 109,776 95,765 251 (332) 95,684 </TABLE> Investment securities with an aggregate amortized cost of $77,699 on March 31, 1997 and $65,885 on December 31, 1996, were pledged to secure public deposits and for other purposes as required and permitted by law. Note 3 - Loans: The following is a summary of loans at: 3-31-97 12-31-96 Commercial, financial & agricultural 49,354 46,392 Real Estate - construction 9,898 9,625 Real estate - mortgage 183,364 178,544 Consumer 61,821 59,058 Total loans 304,437 293,619 As of March 31, 1997 and December 31, 1996 the aggregate dollar amount of loans to related parties; principally, directors and executive officers, their immediate families and their business interests, was $7,978 and $7,945 respectively. The following is an analysis of the activity with respect to loans to related parties for the three months ended March 31, 1997. Balance, beginning of period 7,945 Add: New loans 244 Deduct: Payments 211 Other changes 0 Balance, end of period 7,978
Note 4 - Allowance for Loan Losses: Amount 03-31-97 12-31-96 Balance, beginning of period (year) 4,705 3,703 Add: Recoveries 99 374 Provisions for loan losses charged to income 284 1,319 Total 5,088 5,396 Deduct: Loans charged off 66 691 Balance, end of period (year) 5,022 4,705 The allowance for loan losses is maintained at a level which, in management's judgment is adequate to absorb credit losses inherent in the loan portfolio. The amount of the allowance is based on management's evaluation of the collectibility of the loan portfolio, including the nature of the portfolio, credit concentrations, trends in historical loss experience, specific impaired loans, and economic conditions. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated cash flows. The allowance is increased by a provision for loan losses, which is charged to expense, and reduced by charge-offs, net of recoveries. For impairment recognized in accordance with Statement of Financial Accounting Standards No. 114 (SFAS 114),"Accounting By Creditors For Impairment Of A Loan", the entire change in present value of expected cash flows is reported as bad debt expense in the same manner in which impairment initially was recognized or as a reduction in the amount of bad debt expense that otherwise would be reported. Note 5 - Adoption of Statement of Financial Accounting Standards No. 114 and No. 118: Effective January 1, 1995, the bank adopted Statement of Financial Accounting Standards No. 114 (SFAS 114),"Accounting By Creditors For Impairment Of A Loan", and Statement of Financial Accounting Standards No. 118 (SFAS 118),"Accounting By Creditors For Impairment Of A Loan - Income Recognition And Disclosures". These statements require creditors to account for impaired loans, except for those loans that are accounted for at fair value or at the lower of cost or fair value, at the present value of the expected future cash flows discounted at the loan's effective interest rate.
Note 5 - Continued... The Company determines when loans become impaired through its normal loan administration and review functions. Those loans identified as substandard or doubtful as a result of the loan review process are potentially impaired loans. A loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all principal and interest amounts due according to the contractual terms of the loan agreement. A loan is not impaired during a period of delay in payment if the Company expects to collect all amounts due, including interest accrued at the contractual interest rate, for the period of delay. In accordance with these standards, the Company does not apply SFAS 114 and SFAS 118 to large groups of smaller balance homogeneous loans that are collectively evaluated for impairment. These groups include the Company's credit card, residential mortgage, overdraft protection, home equity lines, accounts receivable financing, and consumer installment loans. The Company's adoption of these accounting standards did not have a material effect on the financial condition and results of operations of the Company. In accordance with SFAS 114, historical information has not been restated to reflect the application of this standard. Note 6 - Other Real Estate: Real estate acquired in satisfaction of a loan is reported in other assets. Properties acquired by foreclosure or deed in lieu of foreclosure are transferred to Other Real Estate Owned ("OREO") and recorded at the lower of the outstanding loan balance at the time of acquisition or the estimated market value. Market value is determined on the basis of the properties being disposed of in the normal course of business and not on a liquidation or distress basis. Loan losses arising from the acquisition of such properties are charged against the allowance for loan losses. Gains or losses arising from the sale of OREO are reflected in current operations. Note 7 - Interest Bearing Deposits: Certificates of deposit in excess of $100,000 totaled $46,880 and $38,616 at March 31, 1997 and December 31, 1996 respectively.
Note 8 - Commitments and Contingent Liabilities: In the normal course of business, the Company makes various commitments and incurs certain contingent liabilities, which are not reflected in the accompanying financial statements. The commitments and contingent liabilities include guarantees, commitments to extend credit and standby letters of credit. At March 31, 1997, commitments to extend credit and standby letters of credit aggregated $54,869. The Company does not anticipate any material losses as a result of these transactions. Note 9 - Common Stock: As of December 31, 1996, the common stock outstanding was 2,550,024. During the first quarter, the Company granted options to purchase an aggregate of 1,060 shares under the incentive stock option plan. As of March 31, 1997, the common stock outstanding was 2,551,091 shares. Note 10 - Earnings Per Share: Earnings per share are calculated on the weighted-average of number of shares of common stock outstanding, giving retroactive effect to stock dividends and stock splits. The number of weighted-average shares outstanding at March 31, 1997, was 2,551,020 and 2,434,849 at December 31, 1996. Dividends per share are calculated using the current equivalent of number of common shares outstanding at the time of the dividend based on the Company's shares outstanding.
FIRST NATIONAL CORPORATION Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion relates to financial statements contained in this report. For further information refer to the Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the Company's Annual Report on Form 10-K for the year ended December 31, 1996. First National Corporation opened its second bank, the National Bank of York County, on July 11, 1996 in Rock Hill, South Carolina to join its existing bank, First National Bank, Orangeburg, South Carolina. A second office of National Bank of York County was opened in Fort Mill, South Carolina on September 18, 1996. For the first quarter of 1997, First National Corporation (" the Corporation ") had consolidated net income of $1,605,000, an increase of 14.9 percent over the $1,397,000 earned in the first quarter of 1996. Earnings per share amounted to $0.63 for the three months ended March 31, 1997, a 6.8 percent increase over the $0.59 per share earned in the first quarter of 1996. NET INTEREST INCOME For the first three months of 1997, net interest income was $5,590,000 compared to $4,734,000 for the same period in 1996. This is an increase of $856,000 or 18.1 percent. The increase resulted from a 20.6 percent increase in loan outstandings, net of unearned income, when compared to the first three months of 1996. The yield on a major portion of the Company's earning assets adjusts simultaneously with changes in the general level of interest rates. In the first three months of 1996, the year to date taxable equivalent yield on earning assets was 7.86 percent. During the same period in 1997, the yield increased to 7.99 percent or an increase of 13 basis points. The cost of the liabilities used to support these earning assets increased 2 basis points from 3.92 percent in 1996 to 3.94 percent in 1997. Interest rates paid on interest-bearing liabilities increased less rapidly than yields on earning assets due primarily to lower yielding investment securities maturing and being replaced at higher yields. First quarter net interest margin increased from 4.54 percent in 1996 to 4.67 percent in 1997. The impact of interest-free funds for the same period increased from .61 percent to .62 percent or an increase of 1 basis point.
Management's Discussion Continued... The largest category of earning assets is loans. At the end of the first quarter 1997, loans outstanding, less unearned income, were $304,437,000 compared to $293,619,000 at December 31, 1996. This represents an increase of $10,818,000 or 3.7 percent. For the three months ended March 31, 1997 interest and fees on loans was $6,899,000 compared to $5,916,000 for the comparable period in 1996, an increase of $983,000 or 16.6 percent. The major volume increase in the loan portfolio was in commercial loans. For the first three month period ended March 31, 1997, commercial loans increased $3,128,000 or 8.2 percent when compared to December 31, 1996. This increase in the loan portfolio was brought about due to a renewed confidence in overall economic trends as well as the opening of the National Bank of York County and the Bluffton branch of First National Bank. The Company has no foreign loans nor loans for highly leveraged transactions. For the three months ended March 31, 1997, loans averaged $283,368,000 and yielded 9.02 percent on a taxable equivalent basis compared to $261,448,000 with a taxable equivalent yield of 9.11 percent or a decrease of 9 basis points for the year ended December 31, 1996. Investment securities are the second largest category of earning assets. Investment securities are utilized by the Company as a vehicle for the employment of excess funds, to provide liquidity, to fund loan demand or deposit liquidation, and to pledge as collateral for certain deposit and purchased funds. At March 31, 1997, investment securities were $168,769,000 compared to $160,881,000 at December 31, 1996. This is an increase of $7,888,000 or 4.9 percent. This increase is the result of management's decision to utilize excess funds in the investment function in an attempt to increase yields and profitability. For the three months ended March 31, 1997, investment income was $2,453,000 compared with $2,042,000 for the comparable period in 1996, a net increase of $411,000 or 20.1 percent. Management attributes this increase in income to higher volume and yields on investment securities. For the first quarter 1997, securities averaged $154,270,000 and yielded 6.29 percent on a taxable equivalent basis, compared to $149,453,000 with a yield of 6.10 percent for the year ended December 31, 1996, resulting in a 19 basis point increase in yield. As of March 31, 1997 the Company had unrealized gains in the U S Treasury and agency portfolio, denoted as held-to-maturity, of $68,000 and in the municipal portfolio $357,000. Also at March 31, 1997, the Company had an unrealized loss of $195,000 in the U S Treasury and agency portfolio and an $133,000 unrealized loss in the municipal portfolio.
Management's Discussion Continued... At year end 1993, the Company adopted Statement of Financial Accounting Standards No. 115 "Accounting for Certain Investments in Debt and Equity Securities" for the investment portfolio, and showed a net unrealized loss at March 31, 1997 of approximately $943,000 on the $109,776,000 of securities denoted as available-for-sale. Although securities classified as available-for-sale may be sold from time to time to meet liquidity or other needs, it is not the normal activity of the Company to trade the investment portfolio. Management has the intent and the ability to hold securities on a long-term basis or until maturity. During the first three months of 1997, interest-bearing liabilities averaged $382,360,000 and carried an average rate of 3.94 percent. This compares to an average level of $353,810,000 with an average rate of 3.90 percent at December 31, 1996 or an increase of 4 basis points. Approximately half of these interest-bearing liabilities have fixed rates. They are expected to be renewed at prevailing market rates as they mature. PROVISION FOR LOAN LOSSES The provision for loan losses for the three month period ended March 31, 1997 was $284,000 compared to $220,000 for the same period in 1996 which represents a 29.1 percent increase. The increase in the provision for loan losses was due primarily to continued strong loan growth. The allowance for loan losses was $5,022,000 or 1.65 percent of outstanding loans at March 31, 1997 compared to 1.60 percent of outstanding loans at year-end 1996. To determine the adequacy of the allowance for loan losses, management performs an internal loan analysis which indicates the estimated loan losses. Management feels that the allowance for loan losses in adequately funded. Other real estate owned includes certain real estate acquired as a result of foreclosure. For the period ended March 31, 1997, other real estate owned was $46,000 compared to $63,000 at December 31, 1996. This decrease resulted from the sale of several real estate properties. Management anticipates that the level of charge-offs for 1997 will be near or below the levels of 1996. The loan loss allowance is considered adequate by management. However, changes in economic conditions in the Company's market area could affect these levels.
Management's Discussion Continued... NONINTEREST INCOME AND EXPENSE Noninterest income for the first quarter of 1997 was $1,505,000 compared to $1,313,000 for the same period in 1996, representing an increase of $192,000 or 14.6 percent. During the first quarter of 1997, other service charges, commissions and fees increased $171,000 or 53.6 percent compared to the same period in 1996. This increase can be primarily attributed to the increase in debit card fees as well as ATM fees charged on non-bank customer transactions. Noninterest expense for the first quarter of 1997 was $4,498,000 compared to $3,879,000, an increase of $619,000 or 16.0 percent. Salaries and employee benefits for the three month period ended March 31, 1997, increased $383,000 or 18.7 percent compared to the same period in 1996. These increases can be largely attributed to the opening of the National Bank of York County and the Bluffton branch of First National Bank during the third quarter of 1996. Occupancy expense along with furniture and equipment expense increased $144,000 or 25.4 percent for the three month period ended March 31, 1997 when compared to the same period in 1996. NET INCOME Net income was up 14.9 percent for the first three months of 1997 when compared to the same period in 1996. The $856,000 or 18.1 percent increase in net interest income and the $192,000 or 14.6 percent increase in noninterest income for the first quarter ended March 31, 1997 were the primary factors in the growth in net income. CAPITAL RESOURCES AND LIQUIDITY To date the capital needs of the Company have been met through the retention of earnings less cash dividends. At the end of the first quarter 1997, stockholder's equity was $48,962,000 compared to $48,346,000 at December 31, 1996. The Corporation and subsidiaries are subject to certain risk-based capital guidelines. These ratios measure the relationship of capital to a combination of balance sheet and off balance sheet risks. The values of both balance sheet and off balance sheet items will be adjusted to reflect credit risk. Under the guidelines of the Board of Governors of the Federal Reserve System, which are substantially similar to the Office of the Comptroller of the Currency guidelines, as of December 31, 1995 Tier 1 capital must be at least 4 percent of risk-weighted assets, while total capital must be 8 percent of risk-weighted assets. The Tier 1 capital ratio at March 31, 1997 was 15.3 percent compared to 15.8 percent at December 31, 1996. The total capital ratio was 16.6 percent at March 31, 1997 compared to 17.1 percent at December 31, 1996.
Management's Discussion Continued... In conjunction with the risk-based capital ratio, applicable regulatory agencies have also prescribed a leverage capital ratio in evaluating capital strength and adequacy. The minimum leverage ratio required for banks is between 3 percent and 5 percent, depending on the institution's composite rating as determined by its regulators. At March 31, 1997, First National Corporation's leverage ratio was 9.1 percent, compared to 9.5 percent at December 31, 1996. First National Corporation's ratio exceeds the minimum standards by substantial margins. Liquidity is the ability of the Company to meet its cash flow requirements which arise primarily from withdrawal of deposits, extension of credit and payment of operating expenses. Asset liquidity is maintained by the maturity structure of loans, investment securities and other short-term investments. Management has policies and procedures governing the length of time to maturity on loans and investments. Normally changes in the earning asset mix are of a longer term nature and are not utilized for day-to-day Corporation liquidity needs. The Company's liabilities provide liquidity on a day-to-day basis. Daily liquidity needs are met from deposit levels or from the Company's use of federal funds purchased and securities sold under agreement to repurchase. Additional liquidity can be secured from lines of credit extended to the Company from its correspondent banks. Management feels that its liquidity position is adequate.
PART II - OTHER INFORMATION Item l. Legal Proceedings: Neither First National Corporation nor its subsidiaries are part to nor is any of their property the subject of any material or other pending legal proceedings, other than ordinary routine proceedings incidental to their business. Item 2. Changes in Securities: Not Applicable Item 3. Defaults Upon Senior Securities: Not Applicable Item 4. Submission of Matters to a Vote of Security Holders: Not Applicable Item 5. Other Information Not Applicable Item 6. Exhibits and Reports on Form 8-K: (a) Exhibit 27 - Financial Data Schedule (b) Reports on Form 8-K: None
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FIRST NATIONAL CORPORATION Date: May 13, 1997 C. John Hipp, III President and Chief Executive Officer Date: May 13, 1997 W. Louis Griffith Principal Accounting Officer and Chief Financial Officer
EXHIBIT INDEX Exhibit No. Description of Exhibit 27 Financial Data Schedule Attached