ANCHORAGE, Alaska, Feb. 19, 2025 (GLOBE NEWSWIRE) -- First National Bank Alaska's (OTCQX:FBAK) net income for the fourth quarter of 2024 was $19.9 million, or $6.29 per share. This compares to a net income of $16.6 million, or $5.24 per share, for the same period in 2023.
"Fourth quarter results concluded another year of strong financial performance in 2024," said First National Board Chair and CEO/President Betsy Lawer. "Growth in both loans and customer deposits along with repositioning efforts in the securities portfolio enhanced the balance sheet. Growth in noninterest income along with outstanding expense management resulted in record-high net income. As we build on the momentum generated in 2024, I'm excited about where our recently expanded leadership team will take us to further help Alaskans shape a brighter tomorrow."
Loans totaled $2.5 billion as of Dec. 31, 2024, an increase of $24.3 million during fourth quarter 2024, and an increase of $196.6 million compared to the same period in 2023. Fourth quarter loan quality was strong with nonperforming loans of $4.3 million, 0.17% of outstanding loans compared to $4.7 million and 0.20% as of Dec. 31, 2023. The provision for credit losses totaled $0.7 million for the year ended Dec. 31, 2024, compared to a $0.9 million benefit for year ended Dec. 31, 2023. The allowance for credit losses as of Dec. 31, 2024 totaled $18.0 million, or 0.73% of total loans.
Fourth quarter total interest and loan fee income was $63.4 million, a 6.2% increase from $59.8 million for the quarter ended Dec. 31, 2023. The yield on loans increased to 6.67% compared to 6.25% on Dec. 31, 2023. Interest and fees on loans and interest and dividends on investment securities increased in the fourth quarter on rate and volume improvements.
Assets totaled $5.0 billion as of Dec. 31, 2024, decreasing by $559.5 million due to the repayments during the fourth quarter of the December 2023 advance under the Federal Reserve Bank Term Funding Program and the July 2024 Federal Home Loan Bank borrowing. Return on assets on Dec. 31, 2024, was 1.22%, fifteen basis points higher compared to 2023.
Deposits and repurchase agreements totaled $4.4 billion as of Dec. 31, 2024, an increase of $47.1 million during the fourth quarter, and an increase of $13.1 million since Dec. 31, 2023. Seasonal outflow was offset by new customer deposits during the fourth quarter of 2024.
Interest expense for the quarter decreased by $0.2 million compared to the quarter ended Dec. 31, 2023, due to repayments of borrowed funds offset by mix changes in interest-bearing deposits. Net interest margin through Dec. 31, 2024, was 3.12% compared to 2.82% for the year ended Dec. 31, 2023.
Noninterest income for fourth quarter 2024 was $7.0 million, an increase of 7.5% compared to fourth quarter 2023. Quarterly income improvement occurred within fiduciary activities and mortgage loan servicing. Noninterest expenses for the fourth quarter of 2024 increased 12.4% compared to the same period in 2023, primarily due to an increase in salaries and benefits driven by the competitive labor market and health care costs. The efficiency ratio for Dec. 31, 2024, was 53.51% and remains better than First National's peer groups, both in Alaska and across the nation.
Provision for income taxes was reduced $2.2 million in the fourth quarter of 2024 as compared to the fourth quarter of 2023, reflecting certain state income tax benefits achieved in the securities portfolio.
Shareholders' equity was $516.6 million as of Dec. 31, 2024, compared to $464.8 million as of Dec. 31, 2023. This $51.8 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 Dec. 31, 2024, was 13.60% compared to 13.97% as of Dec. 31, 2023. Book value per share as increased to $163.11, compared to $146.77 as of Dec. 31, 2023. The bank's Dec. 31, 2024, Tier 1 leverage capital ratio of 10.54% 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 2025, Forbes selected First National as the sixth bank in the country on their America's Best Banks list. 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. 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 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: Corporate Communications, 907-777-3409
| Financial Overview (Unaudited) | |||||||||||||||||||
| ($ in thousands, except per common share amounts) | |||||||||||||||||||
| Three months ended | Year ended | ||||||||||||||||||
| Dec. 31, | Sep. 30, | Dec. 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Income Statement | |||||||||||||||||||
| Total Interest And Loan Fee Income | $ | 63,439 | $ | 64,615 | $ | 56,773 | $ | 59,493 | $ | 59,761 | |||||||||
| Total Interest Expense | $ | 18,591 | $ | 21,319 | $ | 16,521 | $ | 21,168 | $ | 18,803 | |||||||||
| Provision for Credit Losses | $ | (118 | ) | $ | (432 | ) | $ | (344 | ) | $ | 721 | $ | (930 | ) | |||||
| Total Noninterest Income | $ | 7,011 | $ | 7,293 | $ | 6,522 | $ | 28,233 | $ | 25,426 | |||||||||
| Total Noninterest Expense | $ | 27,696 | $ | 25,928 | $ | 24,651 | $ | 104,346 | $ | 98,168 | |||||||||
| Provision for Income Taxes | $ | 4,350 | $ | 7,099 | $ | 6,593 | $ | 22,839 | $ | 22,657 | |||||||||
| Net Income | $ | 19,931 | $ | 17,994 | $ | 16,580 | $ | 67,048 | $ | 60,010 | |||||||||
| Earnings per common share | $ | 6.29 | $ | 5.68 | $ | 5.24 | $ | 21.17 | $ | 18.96 | |||||||||
| Dividend per common share | $ | 6.40 | $ | 3.20 | $ | 6.40 | $ | 16.00 | $ | 16.00 | |||||||||
| Financial Overview (Unaudited) | Quarter Ended | ||||||||||||||||||
| 12/31/2024 | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | |||||||||||||||
| Balance Sheet | |||||||||||||||||||
| Total Assets | $ | 4,997,767 | $ | 5,557,306 | $ | 5,116,066 | $ | 5,212,976 | $ | 5,730,835 | |||||||||
| Total Securities | $ | 1,928,625 | $ | 2,602,519 | $ | 2,197,788 | $ | 2,404,078 | $ | 2,384,951 | |||||||||
| Total Loans | $ | 2,469,935 | $ | 2,445,596 | $ | 2,391,593 | $ | 2,369,282 | $ | 2,273,311 | |||||||||
| Total Deposits | $ | 3,679,155 | $ | 3,728,181 | $ | 3,698,631 | $ | 3,665,066 | $ | 3,780,018 | |||||||||
| Repurchase Agreements | $ | 743,193 | $ | 647,043 | $ | 615,096 | $ | 571,463 | $ | 629,280 | |||||||||
| Total Deposits and Repurchase Agreements | $ | 4,422,348 | $ | 4,375,224 | $ | 4,313,727 | $ | 4,236,529 | $ | 4,409,298 | |||||||||
| Total Borrowing under the Federal Reserve Bank Term Funding Program | $ | - | $ | 249,868 | $ | 249,868 | $ | 430,000 | $ | 780,000 | |||||||||
| Unrealized loss on marketable securities, net of tax | $ | (62,985 | ) | $ | (52,020 | ) | $ | (86,857 | ) | $ | (95,809 | ) | $ | (98,378 | ) | ||||
| Total Shareholders' Equity | $ | 516,562 | $ | 527,864 | $ | 485,167 | $ | 470,702 | $ | 464,791 | |||||||||
| Financial Measures | |||||||||||||||||||
| Return on Assets | 1.22 | % | 1.15 | % | 1.08 | % | 0.95 | % | 1.07 | % | |||||||||
| Return on Equity | 13.60 | % | 12.90 | % | 12.30 | % | 11.52 | % | 13.97 | % | |||||||||
| Net Interest Margin | 3.12 | % | 3.04 | % | 2.98 | % | 2.76 | % | 2.82 | % | |||||||||
| Yield on Loans | 6.67 | % | 6.65 | % | 6.55 | % | 6.40 | % | 6.25 | % | |||||||||
| Yield on Securities | 2.55 | % | 2.49 | % | 2.33 | % | 2.36 | % | 1.66 | % | |||||||||
| Cost of Interest Bearing Deposits | 1.57 | % | 1.62 | % | 1.60 | % | 1.55 | % | 1.02 | % | |||||||||
| Efficiency Ratio | 53.51 | % | 53.59 | % | 54.94 | % | 56.00 | % | 54.28 | % | |||||||||
| Capital | |||||||||||||||||||
| Shareholders' Equity/Total Assets | 10.34 | % | 9.50 | % | 9.48 | % | 9.03 | % | 8.11 | % | |||||||||
| Tier 1 Leverage Ratio | 10.54 | % | 10.39 | % | 11.12 | % | 9.96 | % | 9.85 | % | |||||||||
| Regulatory Well Capitalized Minimum Ratio - Tier 1 Leverage Ratio | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | |||||||||
| Tier 1 (Core) Capital | $ | 579,547 | $ | 579,884 | $ | 572,024 | $ | 566,511 | $ | 563,169 | |||||||||
| Credit Quality | |||||||||||||||||||
| Nonperforming Loans and OREO | $ | 4,313 | $ | 4,186 | $ | 4,731 | $ | 28,634 | $ | 4,659 | |||||||||
| Nonperforming Loans and OREO/Total Loans | 0.17 | % | 0.17 | % | 0.20 | % | 1.21 | % | 0.20 | % | |||||||||
| Nonperforming Loans and OREO/Tier 1 Capital | 0.74 | % | 0.72 | % | 0.83 | % | 5.05 | % | 0.83 | % | |||||||||
| Allowance for Credit Losses | $ | 18,025 | $ | 18,550 | $ | 19,000 | $ | 18,800 | $ | 17,750 | |||||||||
| Allowance for Credit Losses/Total Loans | 0.73 | % | 0.76 | % | 0.79 | % | 0.79 | % | 0.78 | % | |||||||||
| Net interest margin, yields, and efficiency ratios are tax effected. | |||||||||||||||||||
| Financial measures are year-to-date. | |||||||||||||||||||
