First National Bank Alaska Announces Unaudited Results for Third Quarter 2021

Rhea-AI Summary

First National Bank Alaska (OTCQX:FBAK) reported a net income of $14.4 million for Q3 2021, down from $15.6 million in Q3 2020. Year-to-date net income reached $42.1 million, compared to $44.3 million in 2020. Total interest and loan fee income decreased by 5.7% to $35 million due to lower yields. The bank's net interest margin fell to 2.89% from 3.56% in 2020, while noninterest income decreased by 5.3%. Total assets grew to $5.5 billion, and deposits rose by $846.3 million year-to-date.

Positive

• Total assets increased to $5.5 billion, up $825.8 million year-to-date.
• Deposits grew by $846.3 million, reflecting strong demand and economic support measures.
• Noninterest expenses decreased by 3.4% year-over-year.

Negative

• Net income decreased to $14.4 million from $15.6 million year-over-year.
• Net interest margin declined to 2.89% from 3.56% in the previous year.
• Nonperforming loans rose to $17.6 million, increasing by $7.8 million from June 2021.

ANCHORAGE, Alaska--(BUSINESS WIRE)-- First National Bank Alaska’s (OTCQX:FBAK) unaudited net income for the third quarter 2021 was $14.4 million, or $4.55 per share. This compares to a net income of $15.6 million, or $4.91 per share, for the same period in 2020. Unaudited year-to-date net income was $42.1 million, or $13.28 per share, compared to $44.3 million, or $13.98 per share for the same period in 2020.

Total interest and loan fee income for the third quarter 2021 was $35.0 million, a decrease of 5.7% from the third quarter 2020 on lower annual yields on earning assets.

The blended yield on interest-earning assets decreased to 2.92% from 3.67% for the nine-month periods ending September 30, 2021, and 2020, respectively. Lower yields on earning assets resulted from variable loan repricing, the addition of Small Business Administration Paycheck Protection Program (SBA PPP) loans, and significant cash and short-term investments. The year-to-date net interest margin moved to 2.89% compared to 3.56% in 2020 on declining yields on earning assets partially offset by decreasing cost of funds.

Noninterest income for the third quarter 2021 decreased 5.3% from the third quarter 2020 as home purchases and refinancing slowed down, causing a reduction in mortgage loan origination income. Noninterest expenses for the third quarter 2021 decreased 3.4% when compared to the third quarter 2020. The efficiency ratio for 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 were $5.5 billion as of September 30, 2021, an increase of $825.8 million year-to-date 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 SBA PPP loans totaled $235.3 million as of September 30, 2021. Through the end of third quarter 2021, First National’s SBA PPP borrowers have received forgiveness totaling $331.2 million and $7.2 million on first and second phase loans, respectively. Deposits and repurchase agreements increased $846.3 million and $861.3 million year-to-date and year-over-year, respectively. This increase was attributed to continuing PPP and CARES Act stimulus to governmental entities and Native tribes, increased savings rates of businesses and individuals, and continued growth from organic business development efforts.

At September 30, 2021 delinquent loans from 30 to 89 days were $1.1 million, 0.06% of outstanding loans excluding SBA PPP loans, a decrease of $1.2 million from June 30, 2021 when delinquent loans stood at $2.3 million. Nonperforming loans were $17.6 million, 0.87% of outstanding loans excluding SBA PPP loans, an increase of $7.8 million from June 30, 2021 when nonperforming loans totaled $9.8 million. The allowance for loan losses at September 30, 2021 was $23.5 million, 1.05% of total loans (1.17% of loans excluding SBA PPP).

Loan modifications as of September 30, 2021 totaled $31.1 million, or 1.6% of total loans, excluding SBA PPP loans. Modification to interest-only payments accounted for more than 73% of the modifications, with interest-only periods ranging from one to eleven months. Modifications 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 growing by $188 million in the third quarter, bringing our total deposit base to $4.9 billion,” said Board Chair and CEO Betsy Lawer. “The notable increase in asset size supports the bank’s mission to help Alaskans succeed, with local banking teams providing unwavering customer support and delivering online tools and resources to meet today’s challenges.”

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

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

Alaskan-owned and -operated since 1922, First National proudly meets the financial needs of Alaskans with ATMs and branches in 18 communities throughout the state, and by providing banking services to meet their needs across the nation and around the world. In 2021, Alaska Business readers voted the bank the “Best of Alaska Business” in the Best Place to Work category for the sixth year in a row. American Banker recognized First National as a “Best Bank to Work For” for the third year in a row in 2020, and Anchorage Daily News readers voted the bank one of the state’s top two financial institutions in the ADN “Best of Alaska” Awards in 2020. First National was also recognized as the most admired company in the state by MSN.com and received the Rita Sholton Large Business of the Year Award from the Alaska Chamber.

Visit FNBAlaska.com for more information about Alaska’s largest locally owned bank and access to efficient and secure online banking services. First National Bank Alaska is a Member FDIC and Equal Housing Lender.

	Financial Overview (Unaudited)	Quarter Ended ($ in thousands)
		9/30/2021		6/30/2021		3/31/2021		12/31/2020		9/30/2020
	Balance Sheet
	Total Assets	$ 5,521,126		$ 5,338,052		$ 4,927,784		$ 4,695,315		$ 4,718,640
	Total Securities	$ 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 Shareholders' 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
	Provision for Loan losses	$ 357		$ 1,033		$ 1,697		$ 32		$ 250
	Total Noninterest Income	$ 6,322		$ 6,787		$ 6,198		$ 7,102		$ 6,677
	Total Noninterest Expense	$ 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 Income	$ 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%
	Yield on Loans	4.99%		5.10%		5.31%		5.27%		5.34%
	Yield 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
	Shareholders' Equity/Total Assets	10.23%		10.81%		11.59%		12.49%		12.41%
	Tier 1 Leverage Ratio	9.97%		10.81%		11.45%		11.52%		11.63%
	Regulatory Well Capitalized 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
	Noncurrent Loans and OREO	$ 17,611		$ 11,446		$ 14,314		$ 14,094		$ 13,803
	Noncurrent Loans and OREO/Total Assets	0.32%		0.21%		0.29%		0.30%		0.29%
	Noncurrent 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, yields, and efficiency ratios are tax effected.
	Financial measures are year-to-date.
	Per common share amounts are not in thousands.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211104006413/en/

Cheri Gillian, (907) 777-3409

http://www.FNBAlaska.com

Source: First National Bank Alaska

FAQ

What was First National Bank Alaska's net income for Q3 2021?

First National Bank Alaska reported a net income of $14.4 million for Q3 2021.

How did the total assets of First National Bank Alaska change by September 30, 2021?

Total assets increased to $5.5 billion as of September 30, 2021, up $825.8 million year-to-date.

What is the total interest and loan fee income for FBAK in Q3 2021?

Total interest and loan fee income for Q3 2021 was $35 million, a decrease of 5.7% from Q3 2020.

How did First National Bank Alaska's net interest margin change in 2021?

The net interest margin decreased to 2.89% for the year-to-date period ending September 30, 2021.

What was the year-to-date net income for First National Bank Alaska by September 30, 2021?

Year-to-date net income was $42.1 million, compared to $44.3 million for the same period in 2020.