First National Bank Alaska Announces Unaudited Third Quarter 2022 Results


ANCHORAGE, Alaska, November 04, 2022–(BUSINESS WIRE)–First National Bank Alaska (OTCQX: FBAK) unaudited net income for the third quarter of 2022 was $15.7 million, or $4.94 per share. This compares to net income of $14.4 million, or $4.55 per share, for the same period in 2021. Unaudited year-to-date net income was $43.9 million , or $13.85 per share, compared to $42.1 million, or $13.28 per share, for the same period in 2021.

“First National Bank Alaska is pleased to report another quarter of strong performance,” said Betsy Lawer, Board Chair and CEO/President. “We have successfully replaced the one-time interest and fee income generated by the SBA’s PPP loan program with core income. Our customers and employees have proven to be resilient and able to adapt. changing business and banking environments.”

Return on assets through September 30, 2022 was 1.05%, down from 1.11% for the same period last year, driven by lower interest and fee charges on loans, increase in interest expense and lower average assets in 2021.

Assets totaled $5.5 billion as of September 30, 2022, down $78.4 million year-to-date. Total loans increased by $42.4 million to $2.2 billion, with strong growth in home loans.

Total deposits and repurchase agreements reached $5.1 billion as of September 30, 2022, up $82.0 million year-to-date, driven by growth in business development efforts.

Interest and fees on loans decreased by $3.2 million from the prior year to $81.7 million, due to the reduction in interest and fees on PPP loans from the SBA. Interest and dividends on investment securities increased $6.9 million year over year to $29.4 million due to higher volume.

Net interest margin as of September 30, 2022 to date at 2.63% decreased from 2.89% in September 2021. Weighted return on interest earning assets decreased from 2.92% to 2, 80% for the nine-month periods ending September 30, 2022 and 2021, respectively. The decline in yields on earning assets resulted from a decline in the blended yield of securities, with higher yielding investments maturing later in 2021 and early 2022, which more than offset the improvement in yields on blended loans resulting from the cancellation of 1% PPP loans.

As of September 30, 2022, loans 30-89 days past due were $0.7 million, 0.03% of outstanding loans, an increase of $0.6 million from December 31, 2021 Non-performing loans were $5.8 million, 0.27% of loans outstanding, a decrease of $11.8 million as of December 31, 2021. Provision for loan losses as of September 30, 2022 was $19 $.0 million, or 0.88% of total loans.

Non-interest revenue for the first nine months of 2022 decreased 3.2% compared to the same period in 2021. Credit card fees and service charges increased year-over-year due to consumer spending activity, offset by lower mortgage origination revenue due to home purchases and refinancing activity. decreases.

Non-interest expense for the first nine months of 2022 increased 1.7% compared to the same period in 2021. Salaries and benefits decreased year-over-year, reflecting better management of healthcare costs and a decrease in the workforce.

Despite continued strong operating results, the balance sheet is impacted by accounting adjustments related to the market value of securities held for investment and classified as available for sale. As the Federal Reserve continues to raise interest rates in an effort to fight inflation, bond prices are negatively affected.

With these interest rate changes, shareholders’ equity was $389.1 million as of September 30, 2022, compared to $554.5 million as of December 31, 2021, a decrease of $165.4 million. As a further consequence of the equity reduction, return on equity as of September 30, 2022 increased to 12.56% from 9.76% for the same period last year. Book value per share as of September 30, 2022 was $122.87, compared to $175.10 as of December 31, 2021.

The bank’s Tier 1 leverage ratio as of September 30, 2022 of 9.83% remains above good capitalization standards. The regulatory capital rules for community banks allow accounting adjustments linked to the market value of securities to be excluded from the regulatory capital ratios.

ABOUT THE FIRST NATIONAL BANK

First National Bank Alaska files a quarterly financial report with the Federal Financial Institution Examination Council. Our final Consolidated Status and Earnings Report (Call Report) is filed by the 30th of the month following the end of the quarter and is then posted on FNBAlaska.com and OTCMarkets.com.

Community Bank of Alaska since 1922, First National has proudly served the financial needs of Alaskans with ATMs and 28 locations in 19 communities across the state, and providing banking services to meet their needs across the country and in the world.

In 2021, American Banker recognized First National as a “Best Bank to Work For” for the fourth consecutive year, and readers of Anchorage Daily News voted the bank one of the state’s top three financial institutions for third consecutive year in the “Best of Alaska” DNA Awards. In 2022, Alaska Business readers voted the bank “Best of Alaska Business” in the Best Place to Work category for the seventh consecutive year and Best Bank/Credit Union for the second time.

Visit FNBAlaska.com for more information about Alaska’s largest local bank and access to efficient and secure online banking. First National Bank Alaska is a member of the FDIC and Equal Housing Lender.

Financial overview (unaudited)

Quarter ended (in thousands of dollars)

09/30/2022

06/30/2022

03/31/2022

31/12/2021

09/30/2021

Balance sheet

Total assets

$

5,502,968

$

5,373,051

$

5,393,217

$

5,581,340

$

5,521,126

Total titles

$

2,863,905

$

2,817,076

$

2,878,295

$

2,842,950

$

2,670,064

Total loans

$

2,169,670

$

2,172,230

$

2,107,885

$

2,127,271

$

2,245,532

Total deposits

$

4,383,798

$

4,161,642

$

4,135,870

$

4,216,924

$

4,102,624

Buy-back agreements

$

696 779

$

748,316

$

758,052

$

781,700

$

826 611

Total deposits and repurchase agreements

$

5,080,577

$

4,909,958

$

4,893,922

$

4,998,624

$

4,929,235

Unrealized capital gain (loss) on negotiable securities, net of tax

$

(170,608

)

$

(109,987

)

$

(75,947

)

$

8,266

$

25,014

Total equity

$

389 118

$

444 218

$

474,019

$

554 530

$

565,069

income statement

Net interest and loan fee income

$

36,987

$

35,489

$

34,700

$

38,758

$

34,669

Allowance for loan losses

$

(1,129

)

$

472

$

(316

)

$

(660

)

$

357

Total non-interest income

$

6,335

$

6,736

$

5,620

$

6,183

$

6,322

Total non-interest expenses

$

23,306

$

22,554

$

22,262

$

23,811

$

21,432

Provision for income taxes

$

5,490

$

4,826

$

4,538

$

5,447

$

4,807

Net revenue

$

15,655

$

14,373

$

13,836

$

16,343

$

14,395

Earnings per common share

$

4.94

$

4.54

$

4.37

$

5.16

$

4.55

Dividend per common share

$

3.20

$

3.20

$

3.20

$

3.20

$

6:40 a.m.

Financial measures

return on assets

1.05

%

1.03

%

1.01

%

1.12

%

1.11

%

Return on equity

12.56

%

11:49

%

10.76

%

10.23

%

9.76

%

Net interest margin

2.63

%

2.62

%

2.60

%

2.88

%

2.89

%

Loan performance

5.09

%

4.97

%

4.91

%

5.12

%

4.99

%

Return on securities

1.33

%

1.29

%

1.27

%

1.40

%

1.45

%

Cost of interest-bearing deposits

0.13

%

0.09

%

0.07

%

0.05

%

0.05

%

Efficiency report

53.76

%

53.91

%

54.78

%

53.06

%

53.23

%

Capital

Equity/Total Assets

7.07

%

8.27

%

8.79

%

9.94

%

10.23

%

Level 1 leverage ratio

9.83

%

10.03

%

10.05

%

9.81

%

9.97

%

Well-capitalized minimum regulatory ratio – Tier 1 leverage ratio

5.00

%

5.00

%

5.00

%

5.00

%

5.00

%

Tier 1 capital (basic)

$

559,726

$

554 205

$

549,966

$

546,264

$

540,055

Credit quality

Non-current loans and OREO

$

5,864

$

6,454

$

16,585

$

18,217

$

17,611

Non-Current Loans and OREO/Total Assets

0.11

%

0.12

%

0.31

%

0.33

%

0.32

%

Non-current loans and OREO/Tier 1 capital

1.05

%

1.16

%

3.02

%

3.33

%

3.26

%

Allowance for loan losses

$

19,000

$

19,500

$

22,600

$

22,900

$

23,500

Allowance for Loan Losses/Total Loans

0.88

%

0.90

%

1.07

%

1.08

%

1.05

%

Net interest margin, yields and efficiency ratios are subject to tax.

Financial measures are cumulative.

Amounts per common share are not in thousands.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20221104005661/en/

contacts

Cheri Gillian
(907) 777-3409
https://www.FNBAlaska.com

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