First National Bank Alaska Announced Unaudited Results for Second Quarter 2020 - Seite 2

At June 30, 2020, delinquent loans from 30 to 89 days were $15.6 million, 0.78% of outstanding loans excluding SBA PPP loans, an increase of $9.8 million from March 31, 2020. Nonperforming loans were $13.4 million, 0.67% of outstanding loans excluding SBA PPP loans, an increase of $3.0 million from the prior quarter. In response to the economic uncertainty and elevated delinquency and loan modification activity, the allowance for loan losses was increased in second quarter by $2.0 million to $21.6 million, 0.93% of total loans (1.09% of loans excluding SBA PPP), resulting in an increased provision for loan loss expense of $1.8 million over second quarter 2019.

Noninterest income for second quarter 2020, excluding realized investment gains and losses, increased 6.1% from second quarter 2019 on elevated mortgage loan origination driven by the significant decrease in market interest rates in March. Noninterest expenses for second quarter 2020 increased 4.8% as compared to second quarter 2019 on increases in salary and benefit expenses. The efficiency ratio improved to 52.24% compared to 53.71% in 2019 on revenue growth and strong overall expense management.

The blended yield on interest-earning assets decreased to 3.87% from 4.14% for the six month periods ended June 30, 2020 and 2019, respectively, with the addition of the PPP 1% interest loans and other repricing assets. The cost to fund earning assets for the same six-month comparative periods decreased faster to 0.15% from 0.46%. As a result, the net interest margin year to date improved to 3.72% compared to 3.69% in 2019. Return on assets through June 30, 2020 was 1.43%, comparable to prior year. Return on equity of 10.06% for the first half of 2020 decreased from 10.22% in the first half of 2019 on an increase in total shareholders’ equity of $14.2 million to $590.0 million. Book value per share as of June 30, 2020 was $186.26, compared with $168.73 and $172.91 as of June 30, 2019 and December 31, 2019, respectively. The bank tier 1 leverage capital ratio remains above well capitalized at 12.72% as of June 30, 2020, as compared to 13.76% as of December 31, 2019.

Lawer added, “These are unprecedented times, but our community bank entered the pandemic well-positioned to serve the banking needs of Alaskans just as we have for nearly a century. Our strong liquidity, capital position, operating metrics and heroic statewide employee team have enabled us to effectively manage the banking risks and serve our valuable customers—friends and neighbors—during these challenging times.”