First National Bank Alaska's quarterly profit rises 18%, and shareholders get $8 a share

First National Bank Alaska, the largest bank based in the state by assets, made $25.2 million in profit from July through September, up 18% from the same months last year, the bank reported Nov. 4.

The Anchorage bank is earning more on the money it lends and invests, while paying slightly less for the deposits it holds. That gap is how a bank makes most of its money, and First National's widened over the past year: its net interest margin, the measure of it, rose to 4.05% from 3.76%.

Shareholders get paid next month. The board declared a regular $4-a-share dividend and a special $4 dividend Oct. 29, both payable in December, the same pair it declared a year ago. That brings this year's dividends to $20 a share.

Founded in 1922, First National has 28 locations in 19 Alaska communities and more than 600 employees. It has about $5.3 billion in assets. The bank's stock trades over the counter, and in May, Board Chair and CEO Betsy Lawer said the bank's stock had "reached new highs and surpassed $1 billion for the first time."

The latest results reflect "disciplined financial management and the trust Alaskans place in First National," Lawer said.

Its spending grew, too. Costs other than interest rose 7.2% from a year earlier, mostly because of higher pay and more employees, the bank said.

Its loan total slipped during the quarter. Loans fell $51.8 million from the end of June, to $2.8 billion, though they're up $180 million from a year earlier. The bank didn't say why.

Its equity, what would be left for shareholders on paper if it paid off everything it owes, dipped $3.9 million during the quarter, to $581.3 million, though it's up from $567.7 million a year ago. The bank said a bigger paper loss on its investment securities, which are worth less than it paid for them, cut into its growth this year.

Problem loans shrank. Loans that are well behind on payments or no longer earning interest fell by about half during the quarter, to $6.8 million, or 0.24% of the bank's loans.

Through September, First National has earned about $67.2 million this year, up from about $57.5 million at the same point last year.

These are among Lawer's last results as CEO. Darren Franz, now president of lending and administration, takes over as CEO and president Jan. 2. Lawer, who has led the bank since 2015, will become executive chair of the board.