First National Bank Alaska Reports Unaudited Third Quarter 2021 Results

ANCHORAGE, Alaska – (COMMERCIAL THREAD) – First National Bank Alaska’s (OTCQX: FBAK) unaudited net income for the third quarter of 2021 was $ 14.4 million, or $ 4.55 per share. This compares to net income of $ 15.6 million, or $ 4.91 per share, for the same period in 2020. Unaudited net income to date was $ 42.1 million, or 13, $ 28 per share, up from $ 44.3 million, or $ 13.98 per share for the same period in 2020.

Total loan interest and commission income for the third quarter of 2021 was $ 35.0 million, down 5.7% from the third quarter of 2020 due to lower annual yields from productive assets.

The blended return on interest-bearing assets declined to 2.92%, from 3.67% for the nine-month periods ending September 30, 2021 and 2020, respectively. Declining returns on productive assets result from variable loan revaluations, the addition of Small Business Administration Paycheck Protection Program (SBA PPP) loans, and large cash and short-term investments . The year-to-date net interest margin fell to 2.89% from 3.56% in 2020 due to lower yields on productive assets partially offset by lower cost of funds.

Non-interest income for the third quarter of 2021 was down 5.3% from the third quarter of 2020 as home purchases and refinancing slowed, resulting in lower mortgage origination income. Non-interest expenses for the third quarter of 2021 decreased by 3.4% compared to the third quarter of 2020. The efficiency ratio at September 30, 2021 increased to 53.23%, compared to 51.74% for the same period last year.

Return on assets for the nine months ending September 30, 2021 decreased to 1.11%, from 1.40% for the same period last year on a much larger asset base. Total assets stood at $ 5.5 billion as of September 30, 2021, an increase of $ 825.8 million since the beginning of the year and $ 802.5 million from September 30, 2020 .

Total loans increased $ 34.2 million year-to-date and decreased $ 44.6 million year-over-year. Outstanding PPP SBA loans amounted to $ 235.3 million as of September 30, 2021. Until the end of the third quarter of 2021, First National’s PPP SBA borrowers have received a discount totaling $ 331.2 million and $ 7.2 million on first and second phase loans, respectively. Deposits and repurchase agreements increased by $ 846.3 million and $ 861.3 million year-to-date and year-over-year, respectively. This increase has been attributed to the continued stimulation of PPPs and the CARES Act to government entities and indigenous tribes, to increased savings rates of businesses and individuals, and to the continued growth of community development efforts. organic businesses.

As of September 30, 2021, loans past due 30 to 89 days amounted to $ 1.1 million, or 0.06% of outstanding loans excluding SBA PPP loans, a decrease of $ 1.2 million. dollars compared to June 30, 2021, when overdue loans were $ 2.3 million. Non-performing loans amounted to $ 17.6 million, or 0.87% of outstanding loans excluding SBA PPP loans, an increase of $ 7.8 million from June 30, 2021, when non-performing loans. yields amounted to $ 9.8 million. The allowance for loan losses at September 30, 2021 was $ 23.5 million, or 1.05% of total loans (1.17% of non-SBA PPP loans).

Loan changes as of September 30, 2021 were $ 31.1 million, or 1.6% of total loans, excluding SBA PPP loans. The interest-only payment change accounted for over 73% of the changes, with interest-only periods ranging from one to eleven months. The changes were concentrated in hotels, religious organizations, and commercial real estate loans to customers in the rental and leasing industries.

“Alaska’s banking environment continues its dynamic trend, with First National’s deposits increasing by $ 188 million in the third quarter, bringing our total deposit base to $ 4.9 billion,” said board and CEO Betsy Lawer. “The notable increase in asset size supports the bank’s mission to help Alaskans succeed, with local banking teams providing seamless customer support and providing online tools and resources to address today’s challenges. ”

Equity stood at $ 565.1 million as at September 30, 2021, compared to $ 586.6 million as at December 31, 2020 and $ 585.4 million as at September 30, 2020. Return on equity as at September 30, 2021 was 9.76% compared to 10.27% for the same period last year. The book value per share as at September 30, 2021 was $ 178.43, compared to $ 185.23 as at December 31, 2020 and $ 184.86 as at September 30, 2020.

The First National Bank Alaska files a quarterly financial report with the Federal Financial Institution Examination Council. Our latest consolidated report on condition and revenues (appeal report) is filed by the 30e of the month following the end of the quarter and is then published on www.FNBAlaska.com> Financial Reports and on www.OTCMarkets.com.

Alaska-owned and operated since 1922, First National proudly serves the financial needs of Alaskans with ATMs and branches in 18 communities across the state, and providing banking services to meet their needs across the country. And in the world. In 2021, Alaska Affairs readers voted the bank “Best of Alaska Business” in the Best Place to Work category for the sixth consecutive year. American banker recognized First National as the “Best Bank to Work For” for the third consecutive year in 2020, and Daily News from Anchorage readers voted the bank one of the state’s top two financial institutions for the DNA “Best of Alaska” awards in 2020. First National was also recognized as the state’s most admired company by MSN.com and received the Rita Sholton Large Business of the Year Award from the Alaska House.

Visit FNBAlaska.com for more information on 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)
09/30/2021 06/30/2021 03/31/2021 12/31/2020 09/30/2020
Balance sheet
Total assets

$ 5,521,126

$ 5,338,052

$ 4,927,784

$ 4,695,315

$ 4,718,640

Total titles

$ 2,670,064

$ 2,229,470

$ 2,089,373

$ 1,870,814

$ 1,735,916

Total loans

$ 2,245,532

$ 2,268,263

$ 2,271,850

$ 2,211,288

$ 2,290,158

Total deposits

$ 4,102,624

$ 3,910,717

$ 3,486,685

$ 3,113,169

$ 3,045,898

Repurchase agreements

$ 826,611

$ 830,245

$ 850,409

$ 969,766

$ 1,022,024

Total deposits and repurchase agreements

$ 4,929,235

$ 4,740,962

$ 4,337,094

$ 4,082,935

$ 4,067,922

Total equity

$ 565,069

$ 577,266

$ 571,083

$ 586,589

$ 585,429

income statement
Net interest and loan fee income

$ 34,669

$ 35,466

$ 36,708

$ 35,721

$ 36,615

Allowance for loan losses

$ 357

$ 1,033

$ 1,697

$ 32

$ 250

Total non-interest income

$ 6,322

$ 6,787

$ 6,198

$ 7,102

$ 6,677

Total non-interest charges

$ 21,432

$ 22,974

$ 22,569

$ 24,823

$ 22,196

Provision for income taxes

$ 4,807

$ 4,547

$ 4,663

$ 4,704

$ 5,293

Net revenue

$ 14,395

$ 13,699

$ 13,977

$ 13,264

$ 15,553

Earnings per common share

$ 4.55

$ 4.33

$ 4.41

$ 4.19

$ 4.91

Dividend per common share

$ 6.40

$ 3.20

$ 3.20

$ 3.20

$ 6.40

Financial measures
Return on assets

1.11%

1.13%

1.18%

1.33%

1.40%

Return on equity

9.76%

9.57%

9.66%

9.97%

10.27%

Net interest margin

2.89%

3.03%

3.19%

3.45%

3.56%

Loan yield

4.99%

5.10%

5.31%

5.27%

5.34%

Return on securities

1.45%

1.51%

1.56%

1.96%

2.05%

Cost of interest-bearing deposits

0.05%

0.04%

0.05%

0.07%

0.08%

Efficiency ratio

53.23%

53.25%

52.18%

53.28%

51.74%

Capital city
Equity / Total assets

10.23%

10.81%

11.59%

12.49%

12.41%

Level 1 leverage ratio

9.97%

10.81%

11.45%

11.52%

11.63%

Well-capitalized regulatory minimum ratio – Tier 1 leverage ratio

5.00%

5.00%

5.00%

5.00%

5.00%

Tier 1 (core) capital

$ 540,055

$ 545,928

$ 542,363

$ 538,520

$ 535,390

Credit quality
Non-current loans and OREO

$ 17,611

$ 11,446

$ 14,314

$ 14,094

$ 13,803

Non-current loans and OREO / Total assets

0.32%

0.21%

0.29%

0.30%

0.29%

Non-current loans and OREO / Tier 1 capital

3.26%

2.10%

2.64%

2.62%

2.58%

Allowance for loan losses

$ 23,500

$ 23,500

$ 23,550

$ 21,550

$ 21,550

Allowance for loan losses / total loans

1.05%

1.04%

1.04%

0.97%

0.94%

Net interest margin, returns and efficiency ratios are taxable.
Financial measures are cumulative.
Amounts per common share are not in thousands.

About Joan Ferguson

Joan Ferguson

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