ANCHORAGE, Alaska--(BUSINESS WIRE)--First National Bank Alaska’s (OTCQX:FBAK) unaudited net income for the fourth quarter 2021 was $16.3 million, or $5.16 per share. This compares to net income of $13.3 million, or $4.19 per share, for the same period in 2020. Unaudited year-to-date net income was $58.4 million, or $18.45 per share, compared to $57.5 million, or $18.17 per share for the same period in 2020.
Total assets were $5.6 billion as of December 31, 2021, an increase of $886.0 million year-to-date. Return on assets for the twelve months ended December 31, 2021 was 1.12%, decreased from 1.33% for the same period last year on a significantly larger asset base.
Total deposits and repurchase agreements were $5.0 billion as of December 31, 2021, an increase of $915.7 million. This increase was attributed to Small Business Administration Paycheck Protection Program (SBA PPP) loan proceeds and CARES Act stimulus to governmental entities and Native tribes, increased savings rates of businesses and individuals, and steady growth from organic business development efforts.
“As we celebrate our centennial year in 2022, it’s gratifying to report that First National’s total assets and net income reached a record mark in 2021,” said Board Chair and CEO Betsy Lawer. “This significant growth, despite pandemic disruptions and a low-interest rate environment, is a testament to the management team’s strategic planning and our 600-plus employees who work so hard to shape a bright tomorrow for all Alaskans.”
Total interest and loan fee income for the fourth quarter 2021 was $39.2 million, an increase of 8.1% from the fourth quarter 2020. Year-to-date total interest and loan fee income decreased $1.5 million, a decrease of 1.0% year-over-year, reflecting lower annual yields on earning assets.
The blended yield on interest-earning assets decreased to 2.91% from 3.54% for the twelve-month periods ending December 31, 2021 and 2020, respectively. Lower yields on earning assets resulted from variable loan repricing, the addition of SBA PPP loans, and significant cash and short-term investments. The year-to-date net interest margin moved to 2.88% compared to 3.45% in 2020 on declining yields on earning assets offset by decreasing cost of funds.
Noninterest income for the fourth quarter 2021, excluding realized investment gains and losses, decreased 11.2% from the fourth quarter 2020 due to a decrease in mortgage loan origination income as home purchases and refinancing slowed down. Noninterest income year-over-year remained flat due to an increase in bankcard fee income generated by a higher volume of interchange activity that offset the decrease in mortgage loan origination income. Noninterest expenses for the fourth quarter 2021 decreased 4.1% when compared to the fourth quarter 2020, and declined 0.7% year-over-year. The efficiency ratio for December 31, 2021 decreased to 53.06% compared to 53.28% for the same period last year.
Total loans decreased $84.0 million year-over-year. Outstanding SBA PPP loans totaled $127.6 million and $272.0 million as of December 31, 2021 and 2020, respectively, a decrease of $144.4 million. Through the end of the year, First National’s SBA PPP borrowers have received forgiveness totaling $336.8 million and $114.9 million on first- and second-phase loans, respectively.
At December 31, 2021 delinquent loans from 30 to 89 days were $0.2 million, 0.01% of outstanding loans excluding SBA PPP loans, a decrease of $1.0 million from September 30, 2021. Nonperforming loans were $17.6 million, 0.88% of outstanding loans excluding SBA PPP loans, and did not change from September 30, 2021. The allowance for loan losses at December 31, 2021 was $22.9 million, 1.08% of total loans (1.15% of loans excluding SBA PPP).
Loan modifications as of December 31, 2021 totaled $21.2 million, or 1.1% of total loans, excluding SBA PPP loans. Modification to interest-only payments accounted for more than 46% of the modifications, with interest-only periods ranging from one to seven months. Modifications were concentrated in commercial real estate loans to customers in the rental and leasing industries, religious organizations, and hotels.
Shareholders’ equity was $554.5 million as of December 31, 2021, compared to $586.6 million as of December 31, 2020. Return on equity as of December 31, 2021 increased to 10.23% compared to 9.97% for the same period last year. Book value per share as of December 31, 2021 was $175.10, compared to $185.23 as of December 31, 2020. The bank’s December 31, 2021 Tier 1 leverage capital ratio of 9.82% remains above well-capitalized standards.
First National Bank Alaska files a quarterly financial report with the Federal Financial Institution Examination Council. Our latest Consolidated Report of Condition and Income (Call Report) is filed by the 30th of the month following quarter-end and is subsequently posted at www.FNBAlaska.com > Financial Reports and at www.OTCMarkets.com.
Alaskan-owned and -operated since 1922, First National proudly marks its 100th year of meeting the financial needs of Alaskans. In 2021, Alaska Business readers voted the bank the “Best of Alaska Business” in the Best Place to Work category for the sixth year in a row, Best Corporate Citizen for a third year, and Best Bank/Credit Union. The same year, American Banker recognized First National as a “Best Bank to Work For” for the fourth year in a row, and Anchorage Daily News readers voted the bank one of the state’s top three financial institutions for the third year in a row in the ADN “Best of Alaska” Awards.
Visit FNBAlaska.com for more information about Alaska’s largest locally owned bank and access to efficient and secure online banking services. First National Bank Alaska is a Member FDIC and Equal Housing Lender.
| Financial Overview (Unaudited) | Quarter Ended ($ in thousands) | |||||||||||||||||||
| 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | ||||||||||||||||
| Balance Sheet | ||||||||||||||||||||
| Total Assets | $ |
5,581,340 |
|
$ |
5,521,126 |
|
$ |
5,338,052 |
|
$ |
4,927,784 |
|
$ |
4,695,315 |
|
|||||
| Total Securities | $ |
2,842,950 |
|
$ |
2,670,064 |
|
$ |
2,229,470 |
|
$ |
2,089,373 |
|
$ |
1,870,814 |
|
|||||
| Total Loans | $ |
2,127,271 |
|
$ |
2,245,532 |
|
$ |
2,268,263 |
|
$ |
2,271,850 |
|
$ |
2,211,288 |
|
|||||
| Total Deposits | $ |
4,216,924 |
|
$ |
4,102,624 |
|
$ |
3,910,717 |
|
$ |
3,486,685 |
|
$ |
3,113,169 |
|
|||||
| Repurchase Agreements | $ |
781,700 |
|
$ |
826,611 |
|
$ |
830,245 |
|
$ |
850,409 |
|
$ |
969,766 |
|
|||||
| Total Deposits and Repurchase Agreements | $ |
4,998,624 |
|
$ |
4,929,235 |
|
$ |
4,740,962 |
|
$ |
4,337,094 |
|
$ |
4,082,935 |
|
|||||
| Total Shareholders' Equity | $ |
554,530 |
|
$ |
565,069 |
|
$ |
577,266 |
|
$ |
571,083 |
|
$ |
586,589 |
|
|||||
| Income Statement | ||||||||||||||||||||
| Net Interest and Loan Fee Income | $ |
38,758 |
|
$ |
34,669 |
|
$ |
35,466 |
|
$ |
36,708 |
|
$ |
35,721 |
|
|||||
| Provision for Loan losses | $ |
(660 |
) |
$ |
357 |
|
$ |
1,033 |
|
$ |
1,697 |
|
$ |
32 |
|
|||||
| Total Noninterest Income | $ |
6,183 |
|
$ |
6,322 |
|
$ |
6,787 |
|
$ |
6,198 |
|
$ |
7,102 |
|
|||||
| Total Noninterest Expense | $ |
23,811 |
|
$ |
21,432 |
|
$ |
22,974 |
|
$ |
22,569 |
|
$ |
24,823 |
|
|||||
| Provision for Income Taxes | $ |
5,447 |
|
$ |
4,807 |
|
$ |
4,547 |
|
$ |
4,663 |
|
$ |
4,704 |
|
|||||
| Net Income | $ |
16,343 |
|
$ |
14,395 |
|
$ |
13,699 |
|
$ |
13,977 |
|
$ |
13,264 |
|
|||||
| Earnings per common share | $ |
5.16 |
|
$ |
4.55 |
|
$ |
4.33 |
|
$ |
4.41 |
|
$ |
4.19 |
|
|||||
| Dividend per common share | $ |
3.20 |
|
$ |
6.40 |
|
$ |
3.20 |
|
$ |
3.20 |
|
$ |
3.20 |
|
|||||
| Financial Measures | ||||||||||||||||||||
| Return on Assets |
|
1.12 |
% |
|
1.11 |
% |
|
1.13 |
% |
|
1.18 |
% |
|
1.33 |
% |
|||||
| Return on Equity |
|
10.23 |
% |
|
9.76 |
% |
|
9.57 |
% |
|
9.66 |
% |
|
9.97 |
% |
|||||
| Net Interest Margin |
|
2.88 |
% |
|
2.89 |
% |
|
3.03 |
% |
|
3.19 |
% |
|
3.45 |
% |
|||||
| Yield on Loans |
|
5.12 |
% |
|
4.99 |
% |
|
5.10 |
% |
|
5.31 |
% |
|
5.27 |
% |
|||||
| Yield on Securities |
|
1.40 |
% |
|
1.45 |
% |
|
1.51 |
% |
|
1.56 |
% |
|
1.96 |
% |
|||||
| Cost of Interest Bearing Deposits |
|
0.05 |
% |
|
0.05 |
% |
|
0.04 |
% |
|
0.05 |
% |
|
0.07 |
% |
|||||
| Efficiency Ratio |
|
53.06 |
% |
|
53.23 |
% |
|
53.25 |
% |
|
52.18 |
% |
|
53.28 |
% |
|||||
| Capital | ||||||||||||||||||||
| Shareholders' Equity/Total Assets |
|
9.94 |
% |
|
10.23 |
% |
|
10.81 |
% |
|
11.59 |
% |
|
12.49 |
% |
|||||
| Tier 1 Leverage Ratio |
|
9.82 |
% |
|
9.97 |
% |
|
10.81 |
% |
|
11.45 |
% |
|
11.52 |
% |
|||||
| Regulatory Well Capitalized Minimum Ratio - Tier 1 Leverage Ratio |
|
5.00 |
% |
|
5.00 |
% |
|
5.00 |
% |
|
5.00 |
% |
|
5.00 |
% |
|||||
| Tier 1 (Core) Capital | $ |
546,264 |
|
$ |
540,055 |
|
$ |
545,928 |
|
$ |
542,363 |
|
$ |
538,520 |
|
|||||
| Credit Quality | ||||||||||||||||||||
| Noncurrent Loans and OREO | $ |
18,217 |
|
$ |
17,611 |
|
$ |
11,446 |
|
$ |
14,314 |
|
$ |
14,094 |
|
|||||
| Noncurrent Loans and OREO/Total Assets |
|
0.33 |
% |
|
0.32 |
% |
|
0.21 |
% |
|
0.29 |
% |
|
0.30 |
% |
|||||
| Noncurrent Loans and OREO/Tier 1 Capital |
|
3.33 |
% |
|
3.26 |
% |
|
2.10 |
% |
|
2.64 |
% |
|
2.62 |
% |
|||||
| Allowance for Loan Losses | $ |
22,900 |
|
$ |
23,500 |
|
$ |
23,500 |
|
$ |
23,550 |
|
$ |
21,550 |
|
|||||
| Allowance for Loan Losses/Total Loans |
|
1.08 |
% |
|
1.05 |
% |
|
1.04 |
% |
|
1.04 |
% |
|
0.97 |
% |
|||||
| Net interest margin, yields, and efficiency ratios are tax effected. | ||||||||||||||||||||
| Financial measures are year-to-date. | ||||||||||||||||||||
| Per common share amounts are not in thousands. | ||||||||||||||||||||