First National Bank Alaska Unaudited Results Announced for Third Quarter 2018

First National Bank Alaska’s (OTCQX:FBAK) unaudited net income for third quarter 2018 was $15.9 million, or $5.02 per share. This compares to net income of $11.7 million, or $3.69 per share for the same period in 2017. Pre-tax income was $21.1 million for the quarter compared to $17.8 million for the third quarter in 2017.

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Graphs and Financial Overview-Q3 Earnings for First National Bank Alaska (Graphic: Business Wire)

Return on assets was 1.51 percent and return on equity was 11.29 percent, increasing from 1.19 percent and 8.56 percent, respectively, during the same period in 2017. Net interest and loan fee income for third quarter 2018 was $33.4 million, an increase of 5.6 percent from third quarter 2017. The efficiency ratio improved to 51.62 percent compared to 53.62 percent during the same period in 2017. Net gains on the sale of property no longer used for bank purposes, combined with improved net interest income and effective expense management, contributed to the improved quarterly income. Realized losses on the sale of investments were recorded under a repositioning strategy to improve total performance on securities and offset taxable gains. Pre-tax net gains from property sales and pre-tax realized losses from the sale of investments for the quarter were $4.8 million and $1.3 million, respectively.

Balance sheet changes for the quarter ended September 30, 2018:

• Total assets increased $109.42 million to $3.76 billion
• Gross loans decreased by $2.11 million to $1.91 billion
• Deposits and repurchase agreements increased $102.82 million to $3.25 billion
• Total shareholders’ equity increased $3.28 million to $492.98 million

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) was filed October 30, 2018, and will be posted along with other financial reports at www.FNBAlaska.com > Financial Reports.

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. In 2018, Alaska Business readers voted the bank the “Best of Alaska Business” in the Best Place to Work category for the third year in a row and as best Corporate Citizen for the second year in a row.

In January 2018, MSN.com named First National the most-admired company in the state and, in September, it was named one of the Best Banks to Work For by American Banker.

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)
Balance Sheet		9/30/2018		6/30/2018		3/31/2018		12/31/2017		9/30/2017
Total Assets		$3,757,406		$3,647,990		$3,618,766		$3,653,142		$3,732,854
Total Securities		$1,633,690		$1,504,841		$1,538,478		$1,590,444		$1,701,043
Total Loans		$1,908,298		$1,910,415		$1,863,238		$1,815,184		$1,784,955
Total Deposits		$2,470,058		$2,413,401		$2,407,902		$2,437,817		$2,542,523
Repurchase Agreements		$779,305		$733,142		$695,456		$687,064		$665,082
Total Deposits and Repurchase Agreements		$3,249,363		$3,146,543		$3,103,358		$3,124,881		$3,207,605
Total Shareholders' Equity		$492,979		$489,697		$488,746		$496,877		$511,663
Income Statement
Net Interest and Loan Fee Income		$33,404		$32,217		$31,814		$32,514		$31,620
Provision for Loan losses		$1,266		$181		$36		$863		$25
Total Noninterest Income		$4,979		$5,961		$5,652		$4,715		$6,297
Total Noninterest Expense		$16,013		$21,606		$20,327		$23,431		$20,092
Provision for Income Taxes		$5,189		$3,806		$3,936		$8,754		$6,100
Net Income		$15,915		$12,585		$13,167		$4,181		$11,700
Earnings per common share		$5.02		$3.97		$4.15		$1.32		$3.69
Dividend per common share		$3.20		$2.50		$2.50		$4.00		$2.00
Financial Measures
Return on Assets		1.51%		1.42%		1.46%		1.00%		1.19%
Return on Equity		11.29%		10.47%		10.69%		7.27%		8.56%
Net Interest Margin		3.68%		3.68%		3.67%		3.64%		3.63%
Efficiency Ratio		51.62%		54.64%		53.06%		55.05%		53.62%
Capital
Shareholders' Equity/Total Assets		13.12%		13.42%		13.51%		13.60%		13.71%
Tier 1 Leverage Ratio		13.83%		14.12%		14.11%		13.48%		13.89%
Regulatory Well Capitalized Minimium Ratio -
Tier 1 Leverage Ratio		5.00%		5.00%		5.00%		5.00%		5.00%
Tier 1 (Core) Capital		$520,238		$514,463		$510,282		$505,043		$512,099
Credit Quality
Noncurrent Loans and OREO		$9,330		$16,269		$19,391		$18,764		$21,192
Noncurrent Loans and OREO/Total Assets		0.25%		0.45%		0.54%		0.51%		0.57%
Noncurrent Loans and OREO/Tier 1 Capital		1.79%		3.16%		3.80%		3.72%		4.14%
Allowance for Loan Losses		$19,100		$17,925		$17,925		$17,825		$17,575
Allowance for Loan Losses/Total Loans		1.00%		0.94%		0.96%		0.98%		0.98%
Net interest margin and efficiency ratios are tax effected.
Per common share amounts are not in thousands.

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