First National Corp. Sees Earnings Plunge

First National Corp., parent of First National Bank, felt the economic impact of its J. David & Co.-related lawsuit settlement on Monday as it reported earnings of $23,000. The $6.9-million settlement cost First National $740,000 in lower earnings, the company said.

Earnings in the prior year were $735,000. Without the extraordinary item, 1986 earnings were $763,000, according to President and Chief Executive Robert D. Richley.

First National is in the midst of a merger with National Bankshares of La Jolla and National Bank of Fairbanks Ranch. The deal is expected to be completed in the second quarter.

First National assets rose 65% to $225.3 million, deposits increased 76% to $207.3 million and loans rose 40% to $139.1 million.