First National Bank Alaska Announces Unaudited Results for Third Quarter 2024

Rhea-AI Summary

First National Bank Alaska (OTCQX:FBAK) reported Q3 2024 net income of $18.0 million, or $5.68 per share, up from $15.5 million ($4.90 per share) in Q3 2023. Total loans increased by $127.1 million year-over-year, with strong loan quality showing only 0.07% delinquency rate. Interest and loan fee income rose 15.8% to $64.6 million, while total assets reached $5.6 billion. The bank's net interest margin improved to 3.04% from 2.78% year-over-year, with shareholders' equity increasing to $527.9 million from $423.3 million. The efficiency ratio remained strong at 53.59%, outperforming peer groups.

Positive

• Net income increased 16.1% YoY to $18.0 million
• Loan portfolio grew by $127.1 million YoY
• Interest and loan fee income rose 15.8% to $64.6 million
• Net interest margin improved to 3.04% from 2.78%
• Strong loan quality with only 0.07% delinquency rate
• Shareholders' equity increased by $104.5 million YoY

Negative

• Deposits and repurchase agreements decreased by $161.9 million YoY
• Interest expense as percentage of average assets increased to 1.47% from 1.00%
• Return on equity declined to 12.90% from 13.76% YoY

ANCHORAGE, Alaska, Nov. 06, 2024 (GLOBE NEWSWIRE) -- First National Bank Alaska’s (OTCQX:FBAK) net income for the third quarter of 2024 was $18.0 million, or $5.68 per share. This compares to a net income of $15.5 million, or $4.90 per share, for the same period in 2023.

“Third quarter results continue to reflect the bank’s strong financial performance in 2024,” said First National Board Chair and CEO/President Betsy Lawer. “The notable growth in our loan portfolio shows positive momentum and opportunity in the Alaska economy. Helping Alaskans take advantage of these opportunities requires agility, readiness and resources to meet shifting circumstances for our customers and the banking environment, which remains our core focus.”

Total loans increased by $54.0 million during third quarter 2024 and increased by $127.1 million compared to Sept. 30, 2023. As of Sept. 30, 2024, loan quality was strong with delinquent loans 30 to 89 days of $1.7 million, 0.07% of outstanding loans compared to $2.2 million and 0.10% as of Sept. 30, 2023. Nonperforming loans were $4.0 million, 0.17% of outstanding loans, a decrease of $1.1 million from Sept. 30, 2023. The year-to-date provision for credit losses totaled $0.8 million on loan growth as of Sept. 30, 2024, compared to a $0.6 million benefit as of the same date last year. The allowance for credit losses on Sept. 30, 2024, totaled $18.6 million, 0.76% of total loans.

Total interest and loan fee income quarter-to-date was $64.6 million, a 15.8% increase from $55.8 million as of Sept. 30, 2023. The blended yield on interest-earning assets increased to 4.51% compared to 3.78% on Sept. 30, 2023. During the third quarter of 2024, interest and fees on loans increased by $5.5 million and interest and dividends on investment securities increased by $8.5 million, on rate and volume improvements.

Assets totaled $5.6 billion as of Sept. 30, 2024, increasing by $340.0 million in short-term tactical borrowing from the Federal Home Loan Bank. The borrowings were invested in higher-yielding securities maturing in December 2024. Return on assets on Sept. 30, 2024, was 1.15%, eleven basis points higher compared to the same period last year.

Deposits and repurchase agreements totaled $4.4 billion as of Sept. 30, 2024, an increase of $61.5 million during the third quarter, and a decrease of $161.9 million since Sept. 30, 2023. Year-over-year deposit outflow is characterized by bank customers shifting investable balances into our fiduciary-based Wealth Management and Trust services, affording access to investment yields. Additionally, public and private entity deposits elevated during the pandemic continue to migrate into the economy.   

Interest expense increased by $4.2 million compared to Sept. 30, 2023, on borrowing tactics and mixed changes in interest-bearing deposits. Interest expense as a percentage of average assets increased to 1.47% as of Sept. 30, 2024, from 1.00% as of Sept. 30, 2023. The additional cost supported interest income improvement and profitability. Net interest margin through Sept. 30, 2024 was 3.04% compared to 2.78% on Sept. 30, 2023.

Noninterest income for third quarter 2024 was $7.3 million, an increase of 7.7% compared to Sept. 30, 2023. Broad income improvement occurred, including income from fiduciary activities, mortgage loan servicing, and gains on the sale of securities. Noninterest expenses for the third quarter of 2024 increased 6.0% compared to the same period last year, primarily due to an increase in salaries and benefits driven by the competitive labor market and cost of healthcare. The efficiency ratio for Sept. 30, 2024, was 53.59% and remains better than First National’s peer groups, both in Alaska and across the nation.

Shareholders’ equity was $527.9 million as of Sept. 30, 2024, compared to $423.3 million as of Sept. 30, 2023. This $104.5 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 Sept. 30, 2024, was 12.90% compared to 13.76% for the same period last year. Book value per share as of Sept. 30, 2024 increased to $166.68, compared to $133.68 as of Sept. 30, 2023. The bank’s Sept. 30, 2024, Tier 1 leverage capital ratio of 10.39% remains above well-capitalized standards.

ABOUT FIRST NATIONAL BANK ALASKA

First National Bank Alaska files a quarterly financial report with the Federal Financial Institution Examination Council. The bank’s latest Consolidated Report of Condition and Income (Call Report) is filed by the 30th of the month following quarter-end and is subsequently posted at FNBAlaska.com and OTCMarkets.com.

Alaska’s community bank since 1922, First National 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 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 running, 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. In 2023, American Banker recognized First National as a “Best Bank to Work For” for the sixth 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 Bank Alaska received an Outstanding Community Reinvestment Act performance rating from the Office of the Comptroller of the Currency Our dedicated team strives to provide exceptional customer service to meet the banking needs of our neighbors and fellow Alaskans across the state to help shape a brighter tomorrow.

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, 907-777-3409

	Quarter Ended ($ in thousands)
Financial Overview (Unaudited)
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Balance Sheet
Total Assets	$	5,557,306		$	5,116,066		$	5,212,976		$	5,730,835		$	5,559,883
Total Securities	$	2,602,519		$	2,197,788		$	2,404,078		$	2,384,951		$	2,331,129
Total Loans	$	2,445,596		$	2,391,593		$	2,369,282		$	2,273,311		$	2,318,454
Total Deposits	$	3,728,181		$	3,698,631		$	3,665,066		$	3,780,018		$	3,911,091
Repurchase Agreements	$	647,043		$	615,096		$	571,463		$	629,280		$	626,082
Total Deposits and Repurchase Agreements	$	4,375,224		$	4,313,727		$	4,236,529		$	4,409,298		$	4,537,173
Total Borrowing under the Federal Reserve Bank Term Funding Program	$	249,868		$	249,868		$	430,000		$	780,000		$	530,000
Unrealized gain (loss) on marketable securities, net of tax	$	(52,020	)	$	(86,857	)	$	(95,809	)	$	(98,378	)	$	(143,514	)
Total Shareholders' Equity	$	527,864		$	485,167		$	470,702		$	464,791		$	423,343
Income Statement
Net Interest and Loan Fee Income	$	43,296		$	40,252		$	38,325		$	40,958		$	38,739
Provision for Loan losses	$	(432	)	$	318		$	953		$	(344	)	$	(387	)
Total Noninterest Income	$	7,293		$	7,389		$	6,540		$	6,522		$	6,774
Total Noninterest Expense	$	25,928		$	25,637		$	25,085		$	24,651		$	24,465
Provision for Income Taxes	$	7,099		$	6,039		$	5,351		$	6,593		$	5,916
Net Income	$	17,994		$	15,647		$	13,476		$	16,580		$	15,519
Earnings per common share	$	5.68		$	4.94		$	4.26		$	5.23		$	4.90
Dividend per common share	$	3.20		$	3.20		$	3.20		$	6.40		$	3.20
Financial Measures
Return on Assets		1.15	%		1.08	%		0.95	%		1.07	%		1.04	%
Return on Equity		12.90	%		12.30	%		11.52	%		13.97	%		13.76	%
Net Interest Margin		3.04	%		2.98	%		2.76	%		2.82	%		2.78	%
Yield on Loans		6.65	%		6.55	%		6.40	%		6.25	%		6.08	%
Yield on Securities		2.49	%		2.33	%		2.36	%		1.66	%		1.65	%
Cost of Interest Bearing Deposits		1.62	%		1.60	%		1.55	%		1.02	%		0.92	%
Efficiency Ratio		53.59	%		54.94	%		56.00	%		54.28	%		55.16	%
Capital
Shareholders' Equity/Total Assets		9.50	%		9.48	%		9.03	%		8.11	%		7.61	%
Tier 1 Leverage Ratio		10.39	%		11.12	%		9.96	%		9.85	%		9.98	%
Regulatory Well Capitalized Minimum Ratio - Tier 1 Leverage Ratio		5.00	%		5.00	%		5.00	%		5.00	%		5.00	%
Tier 1 (Core) Capital	$	579,884		$	572,024		$	566,511		$	563,169		$	566,857
Credit Quality
Noncurrent Loans and OREO	$	4,186		$	4,731		$	28,634		$	4,659		$	5,227
Noncurrent Loans and OREO/Total Assets		0.08	%		0.09	%		0.55	%		0.08	%		0.09	%
Noncurrent Loans and OREO/Tier 1 Capital		0.72	%		0.83	%		5.05	%		0.83	%		0.92	%
Allowance for Loan Losses	$	18,550		$	19,000		$	18,800		$	17,750		$	18,475
Allowance for Loan Losses/Total Loans		0.76	%		0.79	%		0.79	%		0.78	%		0.80	%
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) Q3 2024 earnings per share?

First National Bank Alaska reported earnings of $5.68 per share in Q3 2024, compared to $4.90 per share in Q3 2023.

How much did First National Bank Alaska's (FBAK) loan portfolio grow in Q3 2024?

FBAK's total loans increased by $54.0 million during Q3 2024 and by $127.1 million compared to September 30, 2023.

What was First National Bank Alaska's (FBAK) net interest margin in Q3 2024?

FBAK's net interest margin was 3.04% as of September 30, 2024, compared to 2.78% in the same period of 2023.

What was First National Bank Alaska's (FBAK) efficiency ratio in Q3 2024?

FBAK's efficiency ratio was 53.59% as of September 30, 2024, performing better than its peer groups in Alaska and nationwide.