First National Bank Alaska’s (OTCBB:FBAK) net income for first quarter 2012 was $10.2 million or $31.02 per share. This compares to $8.6 million or $25.82 per share for the same quarter in 2011.
The increase in first quarter net income was due primarily to recognition of $1.7 million of interest collected on non-accrual loans that returned to performing status. The first quarter average yield on earning assets decreased 9 basis points to 3.84% from 3.93% for the comparable period in 2011. The average yield on earning assets without the impact of the $1.7 million recognition was 3.59%. The current economic environment continues to depress interest rates.
The first quarter provision for loan losses was a net recovery of $0.3 million, compared with a net charge of $0.8 million recorded during the first quarter 2011. Management maintains an allowance for loan losses adequate to cover the current estimate of probable losses. The allowance for loan losses was $12.3 million, or 1.08% of total loans, as of March 31, 2012. A level unchanged from December 31, 2011. Management continues to closely monitor market conditions for potential future adjustments.
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 .