First National Bank Alaska’s (OTCBB:FBAK) net income for second quarter 2014 was $8.4 million or $25.97 per share. This compares to $7.7 million or $23.79 per share for the same quarter in 2013. The improvement in quarterly income is mainly due to improvements in loan interest and loan fee income which increased $1.2 million over the same period in 2013, an increase generated by growth in the bank’s loan portfolio. The loan portfolio growth led management to fund an additional $0.5 million in loan loss reserve to fortify the reserve against unexpected future losses.
Non-interest income continues to be lower than second quarter 2013 by $0.7 million due to market decreases in mortgage loan origination. Non-interest expense improved by $0.9 million compared to the same period in 2013 as a result of efficiencies gained which reduced bankcard related expenses.
Year to date income as of June 2014 was $15.9 million, $0.3 million less than the same period in 2013. The year-to-date average yield on earning assets decreased 5 basis points to 3.41% from 3.46% for the same period in 2013.
Other notable changes as of June 2014 compared to the same period in 2013:
- Total assets grew by $215.6 million to $3.16 billion
- Gross loans increased by $60.5 million to $1.33 billion
- Deposits grew by $197.5 million to $2.68 billion
- Total Risk-Based Capital Ratio of 23.27%