ANCHORAGE, AK – First National Bank Alaska’s (OTCQX:FBAK) net income for the third quarter of 2026 was $25.2 million, or $7.95 per share. This compares with net income of $21.4 million, or $6.75 per share, for the same period in 2025. Return on assets increased to 1.74%, an improvement of 21 basis points from the same period in 2025, driven by higher net income.
“Our third quarter results reflect disciplined financial management and the trust Alaskans place in First National,” said First National Board Chair and CEO/President Betsy Lawer. “Higher net income, an improved net interest margin and strong asset quality demonstrate the strength of our approach to serving customers and building shareholder value. Our Board of Directors, management team and more than 600 employees all contribute to these results by combining sound decision-making with personal service and a shared commitment to Alaska’s future.”
Assets totaled $5.3 billion as of Sept. 30, 2026, an increase of $59.0 million from Sept. 30, 2025, driven by strong deposit growth.
Loans totaled $2.8 billion as of Sept. 30, 2026, a decrease of $51.8 million during the third quarter of 2026, an increase of $58.7 million year to date and an increase of $180.0 million compared to Sept. 30, 2025. Asset quality remained strong, with nonperforming loans at $6.8 million, or 0.24% of outstanding loans as of Sept. 30, 2026. The provision for credit losses in the third quarter was a benefit of $0.1 million, reflecting a reduction in reserves for pooled and individually evaluated loans. The allowance for credit losses as of Sept. 30, 2026, totaled $20.9 million, or 0.76% of total loans, compared to 0.79% and 0.78% as of Dec. 31, 2025, and Sept. 30, 2025, respectively.
Interest and fees on loans in the third quarter totaled $46.9 million, an increase of $2.8 million, or 6.3%, from $44.1 million in the third quarter of 2025. Interest income on investment securities increased by $2.6 million for the quarter ending Sept. 30, 2026, compared with the same quarter in 2025, due to improved yields. Blended interest income as a percentage of average earning assets increased to 4.97% compared to 4.74% as of Sept. 30, 2025.
Deposits and repurchase agreements totaled $4.6 billion, an increase of $29.9 million from Sept. 30, 2025. Corresponding interest expense decreased by $0.1 million for the third quarter of 2026, compared to the same period in 2025. Interest expense as a percentage of average earning assets decreased to 92 basis points for the quarter, compared to 98 basis points for the same quarter in 2025.
Net interest margin increased to 4.05% as of Sept. 30, 2026, compared with 3.76% as of Sept. 30, 2025, driven by higher yields on earning assets and loan growth that improved the earning-asset mix.
The efficiency ratio for Sept. 30, 2026, was 48.60%, a decrease compared to the 49.52% ratio for Sept. 30, 2025. First National’s management team remained committed to maintaining operating expenses as a percentage of revenue despite inflation, while enhancing customer systems, business processes and facilities.
Noninterest operating income for the third quarter of 2026 was $8.0 million, a $0.4 million increase from the third quarter of 2025.
Noninterest expenses for the third quarter of 2026 rose by $1.9 million, or 7.2%, primarily due to higher salaries and increased employee headcount.
Shareholders’ equity was $581.3 million as of Sept. 30, 2026, compared to $567.7 million as of Sept. 30, 2025. Shareholders’ equity increased by $12.1 million year to date, driven by net income retained in excess of dividends paid, partially offset by an increase in the net unrealized loss position of the securities portfolio. Return on equity increased to 15.49% as of Sept. 30, 2026, compared to 14.13% as of Sept. 30, 2025. Book value per share increased to $183.57, compared to $179.27 as of Sept. 30, 2025. The bank’s Tier 1 leverage capital ratio of 11.81% as of Sept. 30, 2026, 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 24 years, First National received an Outstanding Community Reinvestment Act performance rating from the Office of the Comptroller of the Currency.
In 2026, Forbes named First National one of the World’s Top Performing Banks and, for the second year in a row, one of America’s Best Banks, ranking as the second-top bank in the nation. Newsweek recognized the bank as one of the nation’s Best Regional Banks and Credit Unions for the second year in a row. Alaska Business readers voted First National “Best of Alaska Business” in the Best Place to Work category for the 11th year in a row, Best Bank/Credit Union for the sixth consecutive year, Best Customer Service for the third year in a row, Best Corporate Citizen for the fifth time and Best Wealth Management Firm. The bank was voted first place in the “Best of Alaska” Anchorage Daily News awards, ranking in the top three in the Bank/Financial Institutions category for the eighth consecutive year. In 2025, American Banker recognized First National as a “Best Bank to Work For” for the eighth 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.
