ANCHORAGE, Alaska, May 07, 2025 (GLOBE NEWSWIRE) -- First National Bank Alaska's (OTCQX:FBAK) net income for the first quarter of 2025 was $17.7 million, or $5.60 per share. This compares to a net income of $13.5 million, or $4.26 per share, for the same period in 2024.
"The momentum we gained in 2024 propelled the bank to a very strong first quarter performance," said First National Board Chair and CEO/President Betsy Lawer. "Our unrivaled 600-plus employees are delivering dynamic improvements to services across the bank. By focusing on improving our customer experiences whether in person or online, we are creating efficiencies in our operations, enhancing cybersecurity awareness and reducing the impact of fraud on the bank and our customers. Our balance sheet remains well positioned to support opportunities for Alaskans."
Loans totaled $2.6 billion as of March 31, 2025, an increase of $137.1 million during first quarter 2025, and an increase of $237.8 million compared to the same period in 2024. First quarter loan quality was strong with nonperforming loans of $4.2 million, 0.16% of outstanding loans compared to $4.3 million and 0.17% as of Dec. 31, 2024. The provision for credit losses totaled $1.5 million as of March 31, 2025, compared to $0.9 million as of March 31, 2024. The allowance for credit losses as of March 31, 2025 totaled $19.5 million, or 0.75% of total loans.
First quarter total interest and loan fee income was $56.0 million, a 5.9% decrease from $59.5 million for the first quarter ended March 31, 2024. The bank repaid all borrowings in 2024 reducing earning assets. Interest income to average earning assets increased to 4.61% compared to 4.28% as of March 31, 2024.
Assets totaled $4.9 billion as of March 31, 2025, decreasing $322.9 million primarily due to the repayments under the Federal Reserve Bank Term Funding Program during 2024. Return on assets as of March 31, 2025, increased to 1.42%, forty-seven basis points higher than first quarter 2024, on strong first quarter net income performance.
Deposits and repurchase agreements totaled $4.3 billion as of March 31, 2025, compared to $4.2 billion as of March 31, 2024, and $4.4 billion as of Dec. 31, 2024. First quarter activity represented normal seasonal outflow.
Total interest expense for the quarter decreased $9.2 million compared to the quarter ended March 31, 2024 without interest incurred on borrowed funds. Interest expense to average earning assets decreased to 98 basis points compared to 1.52% as of March 31, 2024. Net interest margin through March 31, 2025, was 3.63% compared to 2.76% for the year ended March 31, 2024.
Noninterest income for first quarter 2025 was $6.8 million, an increase of 3.5% compared to first quarter 2024. Quarterly improvement occurred in fiduciary, mortgage loan servicing, and bankcard activities. Noninterest expenses for the first quarter of 2025 increased 1.0% compared to the same period in 2024. The efficiency ratio for March 31, 2025, was 49.70% and remains better than First National's peer groups, both in Alaska and across the nation.
Shareholders' equity was $535.1 million as of March 31, 2025, compared to $516.6 million as of Dec. 31, 2024. This $18.5 million increase resulted from a decrease in the net unrealized loss position of the securities portfolio and net income retained in excess of dividends paid. Return on equity as of March 31, 2025, was 13.49% compared to 13.60% as of Dec. 31, 2024. Book value per share increased to $168.98, compared to $163.11 as of Dec. 31, 2024. The bank's March 31, 2025, Tier 1 leverage capital ratio of 11.72% remains above well-capitalized standards.
ABOUT FIRST NATIONAL BANK ALASKA
Alaska's community bank since 1922, First National Bank Alaska proudly meets the financial needs of Alaskans with ATMs and 28 locations in 19 communities throughout the state, and by providing banking services to meet their needs across the nation and around the world.
In 2025, Forbes selected First National as the sixth best bank on their America's Best Banks list, and Newsweek recognized the bank as one of the nation's Best Regional Banks and Credit Unions. In 2024, Alaska Business readers voted First National "Best of Alaska Business" in the Best Place to Work category for the ninth year in a row, Best Bank/Credit Union for the fourth time, and Best Customer Service. The bank was also voted "Best of Alaska" in 2024 in the Anchorage Daily News awards, ranking as one of the top three in the Bank/Financial category for the sixth year in a row. American Banker again recognized First National as a "Best Bank to Work For" in 2024, for the seventh consecutive year.
For more than a century, the bank has been committed to supporting the communities it serves. In 2024, for the eighth consecutive reporting period, over a span of twenty-four years, First National received an Outstanding Community Reinvestment Act performance rating from the Office of the Comptroller of the Currency.
First National Bank Alaska is a Member FDIC, Equal Housing Lender, and recognized as a Minority Depository Institution by the Office of the Comptroller of the Currency, as it is majority-owned by women.
CONTACT: Marketing, 907-777-3451
| Quarter Ended ($ in thousands) | |||||||||||||||
| Financial Overview (Unaudited) | |||||||||||||||
| 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | |||||||||||
| Balance Sheet | |||||||||||||||
| Total Assets | $ | 4,890,081 | $ | 4,997,767 | $ | 5,557,306 | $ | 5,116,066 | $ | 5,212,976 | |||||
| Total Securities | $ | 1,882,332 | $ | 1,928,625 | $ | 2,602,519 | $ | 2,197,788 | $ | 2,404,078 | |||||
| Total Loans | $ | 2,607,081 | $ | 2,469,935 | $ | 2,445,596 | $ | 2,391,593 | $ | 2,369,282 | |||||
| Total Deposits | $ | 3,580,147 | $ | 3,679,155 | $ | 3,728,181 | $ | 3,698,631 | $ | 3,665,066 | |||||
| Repurchase Agreements | $ | 716,908 | $ | 743,193 | $ | 647,043 | $ | 615,096 | $ | 571,463 | |||||
| Total Deposits and Repurchase Agreements | $ | 4,297,055 | $ | 4,422,348 | $ | 4,375,224 | $ | 4,313,727 | $ | 4,236,529 | |||||
| Total Borrowing under the Federal Reserve Bank Term Funding Program | $ | - | $ | - | $ | 249,868 | $ | 249,868 | $ | 430,000 | |||||
| Unrealized loss on marketable securities, net of tax | $ | (49,465 | ) | $ | (62,985 | ) | $ | (52,020 | ) | $ | (86,857 | ) | $ | (95,809 | ) |
| Total Shareholders' Equity | $ | 535,148 | $ | 516,562 | $ | 527,864 | $ | 485,167 | $ | 470,702 | |||||
| Income Statement | |||||||||||||||
| Total Interest And Loan Fee Income | $ | 56,005 | $ | 63,439 | $ | 64,615 | $ | 56,773 | $ | 59,493 | |||||
| Total Interest Expense | $ | 11,956 | $ | 18,591 | $ | 21,319 | $ | 16,521 | $ | 21,168 | |||||
| Provision for Credit Losses | $ | 1,535 | $ | (118 | ) | $ | (432 | ) | $ | 318 | $ | 953 | |||
| Total Noninterest Income | $ | 6,768 | $ | 7,011 | $ | 7,293 | $ | 7,389 | $ | 6,540 | |||||
| Total Noninterest Expense | $ | 25,334 | $ | 27,696 | $ | 25,928 | $ | 25,637 | $ | 25,085 | |||||
| Provision for Income Taxes | $ | 6,214 | $ | 4,350 | $ | 7,099 | $ | 6,039 | $ | 5,351 | |||||
| Net Income | $ | 17,734 | $ | 19,931 | $ | 17,994 | $ | 15,647 | $ | 13,476 | |||||
| Earnings per common share | $ | 5.60 | $ | 6.29 | $ | 5.68 | $ | 4.94 | $ | 4.26 | |||||
| Dividend per common share | $ | 4.00 | $ | 6.40 | $ | 3.20 | $ | 3.20 | $ | 3.20 | |||||
| Financial Measures | |||||||||||||||
| Return on Assets | 1.42 | % | 1.22 | % | 1.15 | % | 1.08 | % | 0.95 | % | |||||
| Return on Equity | 13.49 | % | 13.60 | % | 12.90 | % | 12.30 | % | 11.52 | % | |||||
| Net Interest Margin | 3.63 | % | 3.12 | % | 3.04 | % | 2.98 | % | 2.76 | % | |||||
| Interest Income to Average Earning Assets | 4.61 | % | 4.57 | % | 4.51 | % | 4.40 | % | 4.28 | % | |||||
| Interest Expense to Average Earning Assets | 0.98 | % | 1.45 | % | 1.47 | % | 1.42 | % | 1.52 | % | |||||
| Efficiency Ratio | 49.70 | % | 53.51 | % | 53.59 | % | 54.94 | % | 56.00 | % | |||||
| Capital | |||||||||||||||
| Shareholders' Equity/Total Assets | 10.94 | % | 10.34 | % | 9.50 | % | 9.48 | % | 9.03 | % | |||||
| Tier 1 Leverage Ratio | 0.98 | % | 1.45 | % | 1.47 | % | 1.42 | % | 1.52 | % | |||||
| Regulatory Well Capitalized Minimum Ratio - Tier 1 Leverage Ratio | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | |||||
| Tier 1 (Core) Capital | $ | 584,613 | $ | 579,547 | $ | 579,884 | $ | 572,024 | $ | 566,511 | |||||
| Credit Quality | |||||||||||||||
| Nonperforming Loans and OREO | $ | 4,243 | $ | 4,313 | $ | 4,186 | $ | 4,731 | $ | 28,634 | |||||
| Nonperforming Loans and OREO/Total Loans | 0.16 | % | 0.17 | % | 0.17 | % | 0.20 | % | 1.21 | % | |||||
| Nonperforming Loans and OREO/Tier 1 Capital | 0.73 | % | 0.74 | % | 0.72 | % | 0.83 | % | 5.05 | % | |||||
| Allowance for Loan Losses | $ | 19,500 | $ | 18,025 | $ | 18,550 | $ | 19,000 | $ | 18,800 | |||||
| Allowance for Loan Losses/Total Loans | 0.75 | % | 0.73 | % | 0.76 | % | 0.79 | % | 0.79 | % | |||||
| Net interest margin, yields, and efficiency ratios are tax effected. | |||||||||||||||
| Financial measures are year-to-date. | |||||||||||||||
| Per common share amounts are not in thousands. | |||||||||||||||
