First National Bank Alaska announces unaudited results for first quarter 2025

Rhea-AI Summary

First National Bank Alaska (OTCQX:FBAK) reported strong Q1 2025 results with net income of $17.7 million ($5.60 per share), up from $13.5 million ($4.26 per share) in Q1 2024. Loans increased by $137.1 million to $2.6 billion, with excellent loan quality shown by low nonperforming loans at 0.16%. The bank's net interest margin improved to 3.63% from 2.76% year-over-year, while deposits and repurchase agreements totaled $4.3 billion. The efficiency ratio remained strong at 49.70%, outperforming peer groups. Shareholders' equity rose to $535.1 million, with book value per share increasing to $168.98. The bank maintains a well-capitalized position with a Tier 1 leverage ratio of 11.72%.

Positive

• Net income increased 31% YoY to $17.7 million ($5.60 per share)
• Strong loan growth with $137.1 million increase in Q1 2025
• Excellent loan quality with only 0.16% nonperforming loans
• Net interest margin improved significantly to 3.63% from 2.76%
• Strong efficiency ratio at 49.70%, better than peer groups
• Book value per share increased to $168.98 from $163.11

Negative

• Total assets decreased by $322.9 million due to Federal Reserve Bank Term Funding Program repayments
• Interest and loan fee income decreased 5.9% YoY to $56.0 million
• Deposits showed normal seasonal outflow, declining from $4.4B to $4.3B QoQ

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.

FAQ

What was First National Bank Alaska's (FBAK) earnings per share in Q1 2025?

First National Bank Alaska reported earnings of $5.60 per share in Q1 2025, up from $4.26 per share in Q1 2024.

How much did FBAK's loan portfolio grow in Q1 2025?

FBAK's loans increased by $137.1 million during Q1 2025, reaching a total of $2.6 billion.

What is First National Bank Alaska's (FBAK) current loan quality status?

FBAK maintains strong loan quality with nonperforming loans at just 0.16% of outstanding loans, totaling $4.2 million as of Q1 2025.

How did FBAK's net interest margin perform in Q1 2025?

FBAK's net interest margin improved to 3.63% in Q1 2025, compared to 2.76% in the same period of 2024.

What is First National Bank Alaska's (FBAK) current capital position?

FBAK maintains a well-capitalized position with a Tier 1 leverage ratio of 11.72% and shareholders' equity of $535.1 million as of Q1 2025.