ANCHORAGE, Alaska, Aug. 08, 2025 (GLOBE NEWSWIRE) -- First National Bank Alaska's (OTCQX:FBAK) net income for the second quarter of 2025 was $18.4 million, or $5.80 per share. This compares to a net income of $15.6 million, or $4.94 per share, for the same period in 2024.
"Return on Assets is 1.46% at June 30, 2025, showing improvement over each of the last five quarters," said First National Board Chair and CEO/President Betsy Lawer. "The bank's net interest margin of 3.69% reflects the execution of new high-quality loans and, combined with diligent expense management, has our second quarter net income demonstrating the strength of the strategies developed by our board and executive management team, as well as the excellence of our 600-plus employees."
Loans totaled $2.6 billion as of June 30, 2025, an increase of $200.1 million compared to June 30, 2024. Nonperforming loans were $9.8 million, 0.38% of outstanding loans, an increase of $5.1 million from June 30, 2024. The year-to-date provision for credit losses totaled $2.2 million as of June 30, 2025, compared to $1.3 million as of June 30, 2024, due to loan growth. The allowance for credit losses as of June 30, 2025 totaled $20.0 million, or 0.77% of total loans.
Total interest and loan fee income in the second quarter was $57.0 million, a 0.7% increase from $56.6 million compared to the second quarter of 2024. Interest and fees on loans increased $4.0 million while interest and dividends on investment securities decreased $2.9 million for quarter ending June 30, 2025 compared to June 30, 2024 on asset mix change year-over-year. Interest income to average earning assets increased to 4.67% compared to 4.40% as of June 30, 2024.
Assets totaled $4.9 billion as of June 30, 2025, decreasing $192.3 million compared to June 30, 2024, primarily due to the repayments under the Federal Reserve Bank Term Funding Program during 2024. Return on assets as of June 30, 2025, increased to 1.46%, thirty-eight basis points higher than June 30, 2024, due to strong net income performance during 2025.
Total interest expense for the second quarter was $11.8 million, down $4.7 million from $16.5 million compared to the second quarter of 2024, and includes $3.8 million interest incurred on borrowed funds in 2024. Deposits and repurchase agreements totaled $4.3 billion on both June 30, 2025 and June 30, 2024, with corresponding interest expense declining $0.9 million for the second quarter June 30, 2025 as compared to June 30, 2024. Interest expense to average earning assets decreased to ninety-eight basis points compared to 1.42% as of June 30, 2024. Net interest margin through June 30, 2025, was 3.69% compared to 2.98% for June 30, 2024.
Noninterest operating income for second quarter 2025 was $7.4 million, and remains consistent with second quarter 2024. Noninterest expenses for second quarter 2025 increased $1.4 million compared to the same period in 2024, primarily due to an increase in salaries and benefits driven by the rising cost of health care. The efficiency ratio for June 30, 2025, was 50.58% and remains better than First National's peer groups, both in Alaska and across the nation.
Shareholders' equity was $550.1 million as of June 30, 2025, compared to $485.2 million as of June 30, 2024. This $64.9 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 June 30, 2025 was 13.53%, compared to 12.30% as of June 30, 2024. Book value per share increased to $173.71, compared to $153.20 as of June 30, 2024. The bank's June 30, 2025 Tier 1 leverage capital ratio of 11.95% remains above well-capitalized standards.
ABOUT FIRST NATIONAL BANK ALASKA
Alaska's community bank since 1922, First National Bank Alaska proudly meets the financial needs of Alaskans with ATMs and 28 locations in 19 communities throughout the state, and by providing banking services to meet their needs across the nation and around the world.
For more than a century, the bank has been committed to supporting the communities it serves. In 2024, for the eighth consecutive reporting period, over a span of twenty-four years, First National received an Outstanding Community Reinvestment Act performance rating from the Office of the Comptroller of the Currency.
In 2025, Alaska Business readers voted First National "Best of Alaska Business" in the Best Place to Work category for the 10th year in a row, Best Bank/Credit Union for the fifth time, and Best Customer Service for the second year in a row. That year, Forbes also selected First National as the sixth best bank on their America's Best Banks list and one of the top two Banks in the State, and Newsweek recognized the bank as one of the nation's Best Regional Banks and Credit Unions. The bank was also voted "Best of Alaska" in 2024 in the Anchorage Daily News awards, ranking as one of the top three in the Bank/Financial category for the sixth year in a row. American Banker again recognized First National as a "Best Bank to Work For" in 2024, for the seventh consecutive year.
First National Bank Alaska is a Member FDIC, Equal Housing Lender, and recognized as a Minority Depository Institution by the Office of the Comptroller of the Currency, as it is majority-owned by women.
Contact Corporate Communications
907-777-3409
| Financial Overview (Unaudited) | Quarter Ended ($ in thousands) | |||||||||||||||
| 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||||||||
| Balance Sheet | ||||||||||||||||
| Total Assets | $ | 4,923,803 | $ | 4,890,081 | $ | 4,997,767 | $ | 5,557,306 | $ | 5,116,066 | ||||||
| Total Securities | $ | 1,859,645 | $ | 1,882,332 | $ | 1,928,625 | $ | 2,602,519 | $ | 2,197,788 | ||||||
| Total Loans | $ | 2,591,713 | $ | 2,607,081 | $ | 2,469,935 | $ | 2,445,596 | $ | 2,391,593 | ||||||
| Total Deposits | $ | 3,586,204 | $ | 3,580,147 | $ | 3,679,155 | $ | 3,728,181 | $ | 3,698,631 | ||||||
| Repurchase Agreements | $ | 731,808 | $ | 716,908 | $ | 743,193 | $ | 647,043 | $ | 615,096 | ||||||
| Total Deposits and Repurchase Agreements | $ | 4,318,012 | $ | 4,297,055 | $ | 4,422,348 | $ | 4,375,224 | $ | 4,313,727 | ||||||
| Total Borrowing under the Federal Reserve Bank Term Funding Program | $ | - | $ | - | $ | - | $ | 249,868 | $ | 249,868 | ||||||
| Unrealized Loss on Marketable Securities, Net of Tax | $ | (40,193 | ) | $ | (49,465 | ) | $ | (62,985 | ) | $ | (52,020 | ) | $ | (86,857 | ) | |
| Total Shareholders' Equity | $ | 550,135 | $ | 535,148 | $ | 516,562 | $ | 527,864 | $ | 485,167 | ||||||
| Income Statement | ||||||||||||||||
| Total Interest and Loan Fee Income | $ | 56,999 | $ | 55,863 | $ | 63,262 | $ | 64,421 | $ | 56,593 | ||||||
| Total Interest Expense | $ | 11,842 | $ | 11,956 | $ | 18,591 | $ | 21,319 | $ | 16,521 | ||||||
| Provision for Credit Losses | $ | 631 | $ | 1,535 | $ | (118 | ) | $ | (432 | ) | $ | 318 | ||||
| Total Noninterest Operating Income | $ | 7,363 | $ | 6,910 | $ | 7,178 | $ | 7,487 | $ | 7,361 | ||||||
| Net Gains on Investment Securities | $ | - | $ | - | $ | 10 | $ | - | $ | 208 | ||||||
| Total Noninterest Expense | $ | 27,083 | $ | 25,334 | $ | 27,696 | $ | 25,928 | $ | 25,637 | ||||||
| Provision for Income Taxes | $ | 6,423 | $ | 6,214 | $ | 4,350 | $ | 7,099 | $ | 6,039 | ||||||
| Net Income | $ | 18,383 | $ | 17,734 | $ | 19,931 | $ | 17,994 | $ | 15,647 | ||||||
| Earnings per Common Share | $ | 5.80 | $ | 5.60 | $ | 6.29 | $ | 5.68 | $ | 4.94 | ||||||
| Dividend per Common Share | $ | 4.00 | $ | 4.00 | $ | 6.40 | $ | 3.20 | $ | 3.20 | ||||||
| Financial Measures | ||||||||||||||||
| Return on Assets | 1.46 | % | 1.42 | % | 1.22 | % | 1.15 | % | 1.08 | % | ||||||
| Return on Equity | 13.53 | % | 13.49 | % | 13.60 | % | 12.90 | % | 12.30 | % | ||||||
| Net Interest Margin | 3.69 | % | 3.63 | % | 3.12 | % | 3.04 | % | 2.98 | % | ||||||
| Interest Income to Average Earning Assets | 4.67 | % | 4.61 | % | 4.57 | % | 4.51 | % | 4.40 | % | ||||||
| Interest Expense to Average Earning Assets | 0.98 | % | 0.98 | % | 1.45 | % | 1.47 | % | 1.42 | % | ||||||
| Efficiency Ratio | 50.58 | % | 49.70 | % | 53.51 | % | 53.59 | % | 54.94 | % | ||||||
| Capital | ||||||||||||||||
| Shareholders' Equity/Total Assets | 11.17 | % | 10.94 | % | 10.34 | % | 9.50 | % | 9.48 | % | ||||||
| Tier 1 Leverage Ratio | 11.95 | % | 11.72 | % | 10.54 | % | 10.39 | % | 11.12 | % | ||||||
| Regulatory Well Capitalized Minimum Ratio - Tier 1 Leverage Ratio | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | ||||||
| Tier 1 (Core) Capital | $ | 590,328 | $ | 584,613 | $ | 579,547 | $ | 579,884 | $ | 572,024 | ||||||
| Credit Quality | ||||||||||||||||
| Nonperforming Loans and OREO | $ | 9,802 | $ | 4,243 | $ | 4,313 | $ | 4,186 | $ | 4,731 | ||||||
| Nonperforming Loans and OREO/Total Loans | 0.38 | % | 0.16 | % | 0.17 | % | 0.17 | % | 0.20 | % | ||||||
| Nonperforming Loans and OREO/Tier 1 Capital | 1.66 | % | 0.73 | % | 0.74 | % | 0.72 | % | 0.83 | % | ||||||
| Allowance for Loan Losses | $ | 20,025 | $ | 19,500 | $ | 18,025 | $ | 18,550 | $ | 19,000 | ||||||
| Allowance for Loan Losses/Total Loans | 0.77 | % | 0.75 | % | 0.73 | % | 0.76 | % | 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. | ||||||||||||||||
