First National Bank Alaska announces unaudited results for fourth quarter 2025
ANCHORAGE, Alaska, Feb. 03, 2026 (GLOBE NEWSWIRE) -- First National Bank Alaska’s (OTCQX:FBAK) net income for the fourth quarter of 2025 was $20.1 million, or $6.33 per share. This compares to a net income of $20.0 million, or $6.29 per share, for the same period in 2024.
“Fourth quarter results capped another year of exceptional financial performance,” said First National Board Chair and CEO/President Betsy Lawer. “Total assets exceeded five billion dollars, driven by record annual loan growth that strengthened our earning asset mix. Fourth quarter interest income continued the positive trend across the year. These factors, combined with robust noninterest income growth and outstanding expense management, pushed net income to a record high in 2025.
“This outstanding performance in 2025 once again clearly demonstrated the skilled and strong guidance of our board and management team, and the hard work and dedication of more than 600 First National employees to help shape a brighter tomorrow for our customers and all Alaskans.”
Assets totaled $5.1 billion as of Dec. 31, 2025, a decrease of $144.0 million for the quarter due to seasonal deposit outflow, and an increase of $102.2 million compared to the same period in 2024. Return on assets increased to 1.53% as of Dec. 31, 2025, thirty-one basis points higher than the same date last year, driven by the strong net income performance.
Loans totaled $2.7 billion as of Dec. 31, 2025, an increase of $121.3 million during fourth quarter 2025, and an increase of $242.0 million compared to Dec. 31, 2024. Nonperforming loans of $10.6 million, 0.39% of outstanding loans, increased from Dec. 31, 2024, due to nonaccrual loan activity. The fourth quarter provision for credit losses totaled $2.2 million, compared to a benefit of $0.1 million in the fourth quarter of 2024. The year-to-date provision for credit losses totaled $4.8 million on loan growth through Dec. 31, 2025, compared to $0.7 million as of the same date last year. The allowance for credit losses as of Dec. 31, 2025, totaled $21.5 million, or 0.79% of total loans.
Interest and fees on loans in the fourth quarter were $44.7 million, an increase of $3.5 million, 8.4% over $41.3 million for the fourth quarter of 2024. Interest income on investment securities decreased $3.0 million for quarter ending Dec. 31, 2025, compared to Dec. 31, 2024. Investment income was elevated in 2024 due to short-term investments funded by tactical borrowings. Interest income to average earning assets increased to 4.78% compared to 4.57% as of Dec. 31, 2024.
Total interest expense for the fourth quarter was $11.9 million, down $6.7 million from $18.6 million compared to the fourth quarter of 2024, which included $5.7 million in interest incurred on tactical borrowing. Deposits and repurchase agreements totaled $4.5 billion as of Dec. 31, 2025, a decrease of $138.8 million during the fourth quarter due to normal seasonal outflow, and an increase of $51.5 million from Dec. 31, 2024. Interest expense declined by $1.1 million in the fourth quarter of 2025 compared to 2024. Interest expense to average earning assets decreased to 0.96% compared to 1.45% as of Dec. 31, 2024.
Net interest margin through Dec. 31, 2025, increased to 3.82% compared to 3.12% for Dec. 31, 2024, driven by improvements in yield on earning assets and cost of funds management.
Noninterest operating income for fourth quarter 2025 was $7.2 million, the same as fourth quarter of 2024. Noninterest expenses for fourth quarter 2025 increased $2.0 million, or 7.3%, compared to the same period in 2024, primarily due to an increase in salaries, benefits, and bonus compensation.
The efficiency ratio for Dec. 31, 2025, was 49.86%, demonstrating that First National continued to generate strong revenue on an efficient, lower-operating-expense base than our Alaska and national peers.
Shareholders’ equity was $569.2 million as of Dec. 31, 2025, compared to $516.6 million as of Dec. 31, 2024. Shareholders’ equity increased $52.7 million year to date driven by retained net income and decreasing unrealized losses in the securities portfolio. Return on equity as of Dec. 31, 2025, was 14.16%, compared to 13.60% as of Dec. 31, 2024. Book value per share increased to $179.75, compared to $163.11 as of Dec. 31, 2024. The bank’s Dec. 31, 2025, Tier 1 leverage capital ratio of 11.27% remains above well-capitalized standards.
Alaska’s community bank since 1922, First National Bank Alaska proudly meets the financial needs of Alaskans with ATMs and 28 locations in 19 communities throughout the state, and by providing banking services to meet their needs across the nation and around the world.
For more than a century, the bank has been committed to supporting the communities it serves. In 2024, for the eighth consecutive reporting period, over a span of twenty-four years, First National received an Outstanding Community Reinvestment Act performance rating from the Office of the Comptroller of the Currency.
In 2025, Alaska Business readers voted First National “Best of Alaska Business” in the Best Place to Work category for the 10th year in a row, Best Bank/Credit Union for the fifth time, and Best Customer Service for the second year in a row. Forbes also selected First National as the sixth best bank on their America’s Best Banks list and one of the top two Banks in the State. In 2025, American Banker recognized First National as a “Best Bank to Work For” for the eighth year in a row. The bank was also voted “Best of Alaska” in the Anchorage Daily News awards, ranking as one of the top three in the Bank/Financial category for the seventh consecutive year. Newsweek recognized the bank as one of the nation’s 2026 Best Regional Banks and Credit Unions for the second year in a row.
First National Bank Alaska is a Member FDIC, Equal Housing Lender, and is recognized as a Minority Depository Institution by the Office of the Comptroller of the Currency, as it is majority-owned by women.
Contact Corporate Communications
907-777-3409
| Financial Overview (Unaudited) | |||||||||||||||
| ($ in thousands, except per common share amounts) | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| Dec. 31, | Sep. 30, | Dec. 31, | December 31, | ||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Income Statement | |||||||||||||||
| Total Interest And Loan Fee Income | $ | 63,009 | $ | 60,726 | $ | 63,263 | $ | 236,597 | $ | 243,654 | |||||
| Total Interest Expense | $ | 11,853 | $ | 12,155 | $ | 18,591 | $ | 47,806 | $ | 77,599 | |||||
| Provision (Benefit) for Credit Losses | $ | 2,209 | $ | 436 | $ | (118 | ) | $ | 4,811 | $ | 721 | ||||
| Total Noninterest Operating Income | $ | 7,203 | $ | 7,596 | $ | 7,178 | $ | 29,072 | $ | 28,282 | |||||
| Net Gains on Investment Securities | $ | - | $ | - | $ | 10 | $ | - | $ | 417 | |||||
| Total Noninterest Expense | $ | 29,725 | $ | 26,802 | $ | 27,696 | $ | 108,944 | $ | 104,346 | |||||
| Provision for Income Taxes | $ | 6,362 | $ | 7,570 | $ | 4,350 | $ | 26,569 | $ | 22,839 | |||||
| Net Income | $ | 20,063 | $ | 21,359 | $ | 19,931 | $ | 77,539 | $ | 67,048 | |||||
| Earnings per common share | $ | 6.33 | $ | 6.75 | $ | 6.29 | $ | 24.48 | $ | 21.17 | |||||
| Dividend per common share | $ | 8.00 | $ | 4.00 | $ | 6.40 | $ | 20.00 | $ | 16.00 | |||||
| Financial Overview (Unaudited) | Quarter Ended | ||||||||||||||
| 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | |||||||||||
| Balance Sheet | |||||||||||||||
| Total Assets | $ | 5,099,945 | $ | 5,243,993 | $ | 4,923,803 | $ | 4,890,081 | $ | 4,997,767 | |||||
| Total Securities | $ | 1,989,022 | $ | 2,002,118 | $ | 1,859,645 | $ | 1,882,332 | $ | 1,928,625 | |||||
| Total Loans | $ | 2,711,964 | $ | 2,590,699 | $ | 2,591,713 | $ | 2,607,081 | $ | 2,469,935 | |||||
| Total Deposits | $ | 3,734,714 | $ | 3,808,022 | $ | 3,586,204 | $ | 3,580,147 | $ | 3,679,155 | |||||
| Repurchase Agreements | $ | 739,103 | $ | 804,589 | $ | 731,808 | $ | 716,908 | $ | 743,193 | |||||
| Total Deposits and Repurchase Agreements | $ | 4,473,817 | $ | 4,612,611 | $ | 4,318,012 | $ | 4,297,055 | $ | 4,422,348 | |||||
| Total Borrowing under the Federal Reserve Bank Term Funding Program | $ | 15,000 | $ | 15,000 | $ | 15,000 | $ | 15,000 | $ | 15,000 | |||||
| Unrealized loss on marketable securities, net of tax | $ | (24,502 | ) | $ | (31,296 | ) | $ | (40,193 | ) | $ | (49,465 | ) | $ | (62,985 | ) |
| Total Shareholders' Equity | $ | 569,246 | $ | 567,724 | $ | 550,135 | $ | 535,148 | $ | 516,562 | |||||
| Financial Measures | |||||||||||||||
| Return on Assets | 1.53 | % | 1.53 | % | 1.46 | % | 1.42 | % | 1.22 | % | |||||
| Return on Equity | 14.16 | % | 14.13 | % | 13.53 | % | 13.49 | % | 13.60 | % | |||||
| Net Interest Margin | 3.82 | % | 3.76 | % | 3.69 | % | 3.63 | % | 3.12 | % | |||||
| Interest Income to Average Earning Assets | 4.78 | % | 4.74 | % | 4.67 | % | 4.61 | % | 4.57 | % | |||||
| Interest Expense to Average Earning Assets | 0.96 | % | 0.98 | % | 0.98 | % | 0.98 | % | 1.45 | % | |||||
| Efficiency Ratio | 49.86 | % | 49.52 | % | 50.58 | % | 49.70 | % | 53.51 | % | |||||
| Capital | |||||||||||||||
| Shareholders' Equity/Total Assets | 11.16 | % | 10.83 | % | 11.17 | % | 10.94 | % | 10.34 | % | |||||
| Tier 1 Leverage Ratio | 11.27 | % | 11.70 | % | 11.95 | % | 11.72 | % | 10.54 | % | |||||
| Regulatory Well Capitalized Minimum Ratio - Tier 1 Leverage Ratio | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | |||||
| Tier 1 (Core) Capital | $ | 593,748 | $ | 599,020 | $ | 590,328 | $ | 584,613 | $ | 579,547 | |||||
| Credit Quality | |||||||||||||||
| Nonperforming Loans and OREO | $ | 10,636 | $ | 10,847 | $ | 9,802 | $ | 4,243 | $ | 4,313 | |||||
| Nonperforming Loans and OREO/Total Loans | 0.39 | % | 0.42 | % | 0.38 | % | 0.16 | % | 0.17 | % | |||||
| Nonperforming Loans and OREO/Tier 1 Capital | 1.79 | % | 1.81 | % | 1.66 | % | 0.73 | % | 0.74 | % | |||||
| Allowance for Credit Losses | $ | 21,450 | $ | 20,100 | $ | 20,025 | $ | 19,500 | $ | 18,025 | |||||
| Allowance for Credit Losses/Total Loans | 0.79 | % | 0.78 | % | 0.77 | % | 0.75 | % | 0.73 | % | |||||
| Net interest margin, yields, and efficiency ratios are tax effected. | |||||||||||||||
| Financial measures are year-to-date. | |||||||||||||||
