Retirement

DEFINED BENEFIT PLAN: Entry into the fund is automatic after one year of employment for all full-time employees who are at least 21 years old. Also, part-time employees become eligible after working 1,000 hours in a given year. The bank makes all contributions to this plan. Vesting is at five years.

401(K) PLAN: All employees are eligible on the first payroll following the date of employment and who are 19 years old. Employees may assign a percentage of their salary (1% to 95%) and the bank will match 100% of an employee’s contribution up to 3% of their salary. For example, if employee has an annual salary of $30,000 and elects to contribute 6% or $1,800 annually to their 401(k), the Bank will contribute 3% or $900 on his/her behalf. Employees who make no election during the initial 60 days of employment will be automatically enrolled for a 2% election. The full match amount will go into the ESOP (see below). Employees have a variety of investment options, which may be modified, as desired. The funds contributed are not taxed until withdrawn. Full vesting occurs after three years.

Employee Stock Ownership Plan (ESOP): Entry into this fund is automatic for all full-time employees after six months of employment. Employees must be at least 19 years of age. The 401(k) match is contributed to the ESOP. Assets are invested primarily in First National Corporation common stock. Dividends are added to an employee’s account at the discretion of the Board. Benefits are payable upon retirement in either lump sum or rollover to a qualified IRA. The vesting for the ESOP is three years.