First National Bank Alaska Announced Unaudited Results for Second Quarter 2020

The Board of Directors of First National Bank Alaska (OTCQX:FBAK) announced the bank’s unaudited net income for second quarter 2020 was $14.6 million, or $4.60 per share. The bank’s net income for the period compares to net income of $13.1 million, or $4.12 per share, for the same period in 2019. Unaudited year-to-date net income was $28.7 million, or $9.07 per share. This compares to net income of $26.6 million, or $8.39 per share for the same period in 2019.

“Like most other banks across the nation, we are seeing rapid changes in consumer and business behaviors that will likely leave permanent marks across the financial services spectrum, such as the increasing adoption of digital services,” said Chair and CEO Betsy Lawer. “First National’s success has always reflected the success of Alaskans as they rise up to meet and adapt to quickly evolving circumstances. While it’s difficult to predict what’s yet to come, the bank’s strength lies in our experienced team’s ability not just to adapt, but also to transform our business processes and services to leverage the power of change. I think our 2020 performance to date provides the evidence to support that and I’m very proud of the hard-working team.”

Net interest and loan fee income for second quarter 2020 was $37.9 million, an increase of 13.0% from second quarter 2019. This improvement was driven by an increase in average earning assets of $223.9 million during the second quarter. Total assets increased $734.9 million year-to-date, to reach $4.59 billion at June 30, 2020. Gross loans increased $305.3 million to $2.31 billion during the quarter. The bank demonstrated its commitment to Alaskans by participating in the Small Business Administration Paycheck Protection Program (SBA PPP). The bank originated 2,156 unique SBA PPP loans totaling $329.7 million with an average weighted origination fee of 3.70%. Deposits and repurchase agreements increased $682.8 million to $3.94 billion during the quarter on unspent PPP funds and CARES Act resources to Native tribes and government entities and other deposit growth attributed to increased savings behavior.

Customers were further supported through modification of existing loan terms. Loan modifications through June 30, 2020 totaled $394.4 million, or 19.87% of total loans, excluding SBA PPP loans. Modification to interest-only payments accounted for more than 80% of the modifications, with interest-only periods ranging from three to fourteen months. Modifications were concentrated in commercial real estate loans, supporting our customers facing economic pressures in the rental and leasing sectors, and hotel and food service industries.