Unaudited preliminary results announced for third quarterFirst National Bank Alaska's net income for third quarter 2011 was $9.6 million or $28.85 per share. This compares to $10.6 million or $31.84 per share for the same quarter in 2010. Year-to-date net income of $26.6 million or $80.14 per share compares with $29.7 million or $89.57 per share through the first nine months of 2010.
The decrease in year-to-date and third quarter net income was due primarily to lower yields on loans and investment securities, as the current economic environment continued to hold down interest rates. The year-to-date average yield on earning assets was down 49 basis points to 4.02% from 4.51% for the comparable period in 2010. Third quarter 2011 average yield on earning assets was down 53 basis points to 3.87% compared with 4.40% for the third quarter 2010. The decrease in yield resulted primarily from maturities of investment securities reinvested at lower current rates.
The year-to-date provision for loan losses was $1.6 million, compared with $0.5 million through the third quarter of 2010. The increase in provision resulted from specific evaluation of impaired loans. 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.
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