Loan and Deposit Growth, Decreased Earnings MarkAccording to First National Bank Alaska Chairman and President, D. H. Cuddy, the banks first quarter 2004 earnings were $9.6 million or $27.80 per share, down by 8 percent when compared to first quarter end 2003 when earnings were $10.4 million or $30.18 per share.
Total deposits increased to $1.39 billion as of March 31, 2004, an increase of $144 million when compared to deposits of $1.25 billion reported as of March 31, 2003. Outstanding loans grew to $1.07 billion at first quarter end 2004, compared to $965 million for the same period in 2003, an increase of $42 million. Total assets reached $2.15 billion, increasing $184 million.
Although significant deposit and loan growth highlighted the banks first quarter performance, earnings were impacted as historically low interest rates compressed our net interest margin and continued to fuel mortgage refinance originations, said Jason Roth, Senior Vice President. While our bank enjoyed its role in providing a large share of the new, lower priced mortgage loans to Alaskans, it was necessary to recognize the loss of anticipated income on servicing rights for the previously originated loans.
Established in 1922, First National is Alaskas largest Alaskan-owned and operated bank, with 27 branches and ATM throughout Alaska.
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