First National Bank Alaska Announces Unaudited Preliminary Results for Second Quarter

ANCHORAGE, Alaska--()--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.

Contacts

First National Bank Alaska
Cheri Gillian, 907-777-3441

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Contacts

First National Bank Alaska
Cheri Gillian, 907-777-3441