Core Loan And Deposit Growth Generates Strong EarningsDespite a significant decline in refinancing activity during fourth quarter, increased core loans and deposits contributed to year-end earnings of $41.1 million or $119.15 per share, reported D.H. Cuddy, First National Bank Alaska President and Chairman. Earnings were $1.7 million shy of the banks record of $42.8 million at year-end 2002. According to Cuddy, 2003 fourth quarter earnings were $8.8 million or $25.40 per share, down from $11.2 million or $32.56 per share for fourth quarter end 2001.
A large portion of the difference between 2002 and 2003 earnings was due to substantially lower levels of mortgage refinancing activity and the valuation of previously recorded loan servicing assets. Outstanding loans totaled $1.027 billion, a decrease of $20 million since year-end 2002 when outstanding loans totaled $1.047 billion. However, of that total, the banks core loans increased during 2003 by $48 million, while real estate loans originated to be sold to others decreased $68 million as the refinancing market diminished. Total deposits increased $193 million over the same time last year, to $1.44 billion as of December 31, 2003 compared to $1.25 billion as of December 31, 2002. The banks total assets increased to $2.2 billion, a $149 million increase over the same period in 2002.
Our banks record 2002 year-end income was higher due to the greater volume of real estate loans to be sold resulting from the intense consumer demand for mortgage loan refinancing, said Jason Roth, Senior Vice President Financial Division. But as refinancing activity has dropped off, weve been pleased to see an increase in Alaskas demand for core loans -- home purchase and small business loans and to sustain our banks strong earnings trend.
First National Bank Alaska is an Alaskan owned and operated bank opened in downtown Anchorage in 1922. Today, the bank employs some 750 Alaskans, operates 27 branches in 16 Alaska communities and 18 ATMs in rural Alaska communities. First National Bank Alaska is an equal housing lender and member FDIC.
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