ANCHORAGE, Alaska, May 06, 2026 (GLOBE NEWSWIRE) -- First National Bank Alaska's (OTCQX:FBAK) net income for the first quarter of 2026 was $21.2 million, or $6.68 per share. This compares to a net income of $17.7 million, or $5.60 per share, for the same period in 2025. Return on assets increased to 1.67%, an improvement of 25 basis points over March 31, 2025, driven by higher net income.
"First National's strong financial performance in the first quarter reflects continued growth, supported by outstanding financial management and improving core earnings from a stronger asset mix and expanding margins," said First National Board Chair and CEO/President Betsy Lawer. "This success was reflected in the equity market, as our stock reached new highs and surpassed $1 billion for the first time. I'm proud to work alongside more than 600 Alaskans guided by an exceptionally skilled Board of Directors and leadership team who remain focused on delivering trusted financial services to support communities across Alaska."
Assets totaled $5.1 billion as of March 31, 2026, an increase of $193.9 million from March 31, 2025, driven by strong deposit growth and retained earnings.
Loans totaled $2.8 billion as of March 31, 2026, an increase of $98.8 million during the first quarter of 2026, and an increase of $203.7 million compared to March 31, 2025. Asset quality remained strong, with nonperforming loans at $12.2 million, or 0.43% of outstanding loans. The provision for credit losses in the first quarter was a benefit of $0.3 million, compared to an expense of $1.5 million in the same period of 2025. The allowance for credit losses as of March 31, 2026, totaled $21.4 million, or 0.76% of total loans.
Interest and fees on loans in the first quarter totaled $45.1 million, an increase of $4.0 million, or 9.6%, from $41.1 million in the first quarter of 2025. Interest income on investment securities increased $1.7 million for the quarter ending March 31, 2026, compared to March 31, 2025. Interest income as a percentage of average earning assets increased to 4.87% compared to 4.61% as of March 31, 2025.
Deposits and repurchase agreements totaled $4.4 billion, an increase of $152.1 million from March 31, 2025. Corresponding interest expense declined by $1 million for the first quarter of 2026, compared to the same period in 2025. Interest expense as a percentage of average earning assets decreased to 89 basis points for the quarter, down from 98 basis points as of March 31, 2025.
Net interest margin increased to 3.98% as of March 31, 2026, up from 3.63% from March 31, 2025, driven by improvements in both yield on earning assets and cost of funds management.
Noninterest operating income for the first quarter of 2026 was $7.0 million, a $0.1 million increase compared to the first quarter of 2025.
Noninterest expenses for the first quarter of 2026 rose by $2.5 million, or 10.1%, primarily due to higher salaries, increased employee headcount, and rising healthcare costs.
The efficiency ratio for March 31, 2026, was 49.81%, comparable to the ratio for March 31, 2025. First National's management team remained committed to maintaining operating expenses as a percentage of revenue, despite inflation, while enhancing customer systems, business processes, and facilities.
Shareholders' equity was $576.4 million as of March 31, 2026, compared to $535.1 million as of March 31, 2025. Shareholders' equity increased by $41.3 million year to date, driven by a reduction 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, 2026, was 14.78%, up from 13.49% as of March 31, 2025. Book value per share increased to $182.02, compared to $168.98 as of March 31, 2025. The bank's Tier 1 leverage capital ratio of 11.90% as of March 31, 2026, remains above well-capitalized standards.
Alaska's community bank since 1922, First National Bank Alaska proudly meets the financial needs of Alaskans with ATMs and 28 locations in 19 communities throughout the state, and by providing banking services to meet their needs across the nation and around the world.
For more than a century, the bank has been committed to supporting the communities it serves. In 2024, for the eighth consecutive reporting period, over a span of 24 years, First National received an Outstanding Community Reinvestment Act performance rating from the Office of the Comptroller of the Currency.
In 2026, for the second year in a row, Forbes selected First National as one of America's Best Banks, this year ranking the bank as the second best in the nation. Newsweek recognized the bank as one of the nation's 2026 Best Regional Banks and Credit Unions for the second year in a row. In 2025, Alaska Business readers voted First National "Best of Alaska Business" in the Best Place to Work category for the 10th year in a row, Best Bank/Credit Union for the fifth time, and Best Customer Service for the second year in a row. In 2025, American Banker recognized First National as a "Best Bank to Work For" for the eighth year in a row. The bank was also voted "Best of Alaska" in the Anchorage Daily News awards, ranking as one of the top three in the Bank/Financial category for the seventh consecutive year.
First National Bank Alaska is a Member FDIC, Equal Housing Lender, and is recognized as a Minority Depository Institution by the Office of the Comptroller of the Currency, as it is majority-owned by women.
Contact Corporate Communications
907-777-3409
| Financial Overview (Unaudited) | Quarter Ended ($ in thousands) | |||||||||||||||||||
| 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||||
| Balance Sheet | ||||||||||||||||||||
| Total Assets | - | 5,083,974 | - | 5,099,945 | - | 5,243,993 | - | 4,923,803 | - | 4,890,081 | ||||||||||
| Total Securities | - | 1,861,127 | - | 1,989,022 | - | 2,002,118 | - | 1,859,645 | - | 1,882,332 | ||||||||||
| Total Loans | - | 2,810,797 | - | 2,711,964 | - | 2,590,699 | - | 2,591,713 | - | 2,607,081 | ||||||||||
| Total Deposits | - | 3,710,395 | - | 3,734,714 | - | 3,808,022 | - | 3,586,204 | - | 3,580,147 | ||||||||||
| Repurchase Agreements | - | 738,789 | - | 739,103 | - | 804,589 | - | 731,808 | - | 716,908 | ||||||||||
| Total Deposits and Repurchase Agreements | - | 4,449,184 | - | 4,473,817 | - | 4,612,611 | - | 4,318,012 | - | 4,297,055 | ||||||||||
| Unrealized (Gain) Loss on Marketable Securities, Net of Tax | - | (25,812 | - | - | (24,502 | - | - | (31,296 | - | - | (40,193 | - | - | (49,465 | - | |||||
| Total Shareholders' Equity | - | 576,437 | - | 569,246 | - | 567,724 | - | 550,135 | - | 535,148 | ||||||||||
| Income Statement | ||||||||||||||||||||
| Interest and Fees on Loans | - | 45,111 | - | 44,730 | - | 44,116 | - | 43,212 | - | 41,150 | ||||||||||
| Interest and Dividends on Investment Securities | - | 12,882 | - | 14,451 | - | 12,229 | - | 10,818 | - | 11,150 | ||||||||||
| Interest on Cash and Cash Equivalents | - | 1,937 | - | 3,828 | - | 4,381 | - | 2,969 | - | 3,563 | ||||||||||
| Total Interest and Loan Fee Income | - | 59,930 | - | 63,009 | - | 60,726 | - | 56,999 | - | 55,863 | ||||||||||
| Total Interest Expense | - | 10,948 | - | 11,853 | - | 12,155 | - | 11,842 | - | 11,956 | ||||||||||
| Provision (Benefit) for Credit Losses | - | (274 | - | - | 2,209 | - | 436 | - | 631 | - | 1,535 | |||||||||
| Total Noninterest Operating Income | - | 6,981 | - | 7,203 | - | 7,596 | - | 7,363 | - | 6,910 | ||||||||||
| Net Gains (loss) on Investment Securities | - | (48 | - | - | - | - | - | - | - | - | - | |||||||||
| Total Noninterest Expense | - | 27,883 | - | 29,725 | - | 26,802 | - | 27,083 | - | 25,334 | ||||||||||
| Provision for Income Taxes | - | 7,137 | - | 6,362 | - | 7,570 | - | 6,423 | - | 6,214 | ||||||||||
| Net Income | - | 21,169 | - | 20,063 | - | 21,359 | - | 18,383 | - | 17,734 | ||||||||||
| Earnings per Common Share | - | 6.68 | - | 6.33 | - | 6.75 | - | 5.80 | - | 5.60 | ||||||||||
| Dividend per Common Share | - | 4.00 | - | 8.00 | - | 4.00 | - | 4.00 | - | 4.00 | ||||||||||
| Financial Measures | ||||||||||||||||||||
| Return on Assets | 1.67 | - | 1.53 | - | 1.53 | - | 1.46 | - | 1.42 | - | ||||||||||
| Return on Equity | 14.78 | - | 14.16 | - | 14.13 | - | 13.53 | - | 13.49 | - | ||||||||||
| Net Interest Margin | 3.98 | - | 3.82 | - | 3.76 | - | 3.69 | - | 3.63 | - | ||||||||||
| Interest Income to Average Earning Assets | 4.87 | - | 4.78 | - | 4.74 | - | 4.67 | - | 4.61 | - | ||||||||||
| Interest Expense to Average Earning Assets | 0.89 | - | 0.96 | - | 0.98 | - | 0.98 | - | 0.98 | - | ||||||||||
| Efficiency Ratio | 49.81 | - | 49.86 | - | 49.52 | - | 50.58 | - | 49.70 | - | ||||||||||
| Capital | ||||||||||||||||||||
| Shareholders' Equity/Total Assets | 11.34 | - | 11.16 | - | 10.83 | - | 11.17 | - | 10.94 | - | ||||||||||
| Tier 1 Leverage Ratio | 11.90 | - | 11.27 | - | 11.70 | - | 11.95 | - | 11.72 | - | ||||||||||
| Regulatory Well Capitalized Minimum Ratio - Tier 1 Leverage Ratio | 5.00 | - | 5.00 | - | 5.00 | - | 5.00 | - | 5.00 | - | ||||||||||
| Tier 1 (Core) Capital | - | 602,249 | - | 593,748 | - | 599,020 | - | 590,328 | - | 584,613 | ||||||||||
| Credit Quality | ||||||||||||||||||||
| Nonperforming Loans and OREO | - | 12,209 | - | 10,636 | - | 10,847 | - | 9,802 | - | 4,243 | ||||||||||
| Nonperforming Loans and OREO/Total Loans | 0.43 | - | 0.39 | - | 0.42 | - | 0.38 | - | 0.16 | - | ||||||||||
| Nonperforming Loans and OREO/Tier 1 Capital | 2.03 | - | 1.79 | - | 1.81 | - | 1.66 | - | 0.73 | - | ||||||||||
| Allowance for Credit Losses | - | 21,400 | - | 21,450 | - | 20,100 | - | 20,025 | - | 19,500 | ||||||||||
| Allowance for Credit Losses/Total Loans | 0.76 | - | 0.79 | - | 0.78 | - | 0.77 | - | 0.75 | - | ||||||||||
| Net interest margin, yields, and efficiency ratios are tax effected. | ||||||||||||||||||||
| Financial measures are year-to-date. | ||||||||||||||||||||
| Per common share amounts are not in thousands. | ||||||||||||||||||||
