First National Bank Alaska’s (OTCBB:FBAK) net income for second quarter 2011 was $8.5 million or $25.48 per share. This compares to $9.8 million or $29.40 per share for the same quarter in 2010. Year-to-date net income of $17.0 million or $51.30 per share compares with $19.2 million or $57.73 per share through the first six months of 2010.
The decrease in second quarter and year-to-date income was due to provisions for loan losses and lower yields on loans and investment securities. The current economic environment continued to hold down interest rates. The year-to-date average yield on earning assets was down 46 basis points to 4.10% from 4.56% through the comparable period in 2010. Second quarter yield on earning assets was down 44 basis points to 4.04% compared with 4.48% second quarter 2010. The decrease in yield resulted primarily from maturities of investment securities reinvested at lower current rates.
The provision for loan losses was $0.8 million for the second quarter, compared with $(0.2) net recovery for the second quarter 2010. The increase in provision resulted from specific evaluation of impaired loans. The year-to-date provision for loan losses of $1.6 million compares with $0.5 million in 2010. Management continues to closely monitor market conditions, which could result in future adjustments to the allowance.
Established in 1922, First National is Alaska’s largest Alaskan-owned and operated bank, with ATMs and 30 branches in 18 communities throughout Alaska. More information about First National is available at www.FNBAlaska.com .
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