First National Bank Alaska's third-quarter profit rises 18% to $25.2 million

First National Bank Alaska earned $25.2 million in the third quarter, up about 18% from a year earlier, according to unaudited results the bank released Nov. 4.

Profit came to $7.95 a share, compared with $21.4 million, or $6.75 a share, in the third quarter of 2025. It was also about 21% more than the $20.8 million the bank earned in the second quarter of this year.

On Oct. 29 the board declared a $4 regular dividend payable Dec. 15 and a $4 special dividend payable Dec. 10, both to shareholders of record Dec. 1. The board declared the same pair of dividends a year earlier, on Oct. 30, 2025.

The bank credited a wider margin for the gain. Net interest margin rose to 4.05% from 3.76% a year earlier. Interest and fees on loans rose 6.3% to $46.9 million, and interest income on securities rose $2.6 million. Interest expense fell to 92 basis points of average earning assets, from 98.

Betsy Lawer, the bank's board chair and CEO/president, said the results reflect "disciplined financial management and the trust Alaskans place in First National."

Noninterest expenses climbed 7.2%, mostly from higher salaries and more employees. Return on assets was 1.74% and return on equity was 15.49%.

Two figures moved the other way. Loans fell $51.8 million during the quarter, to $2.8 billion, though they remain up $58.7 million for the year and $180.0 million from a year earlier. The bank's release does not say why loans fell.

Shareholders' equity slipped to $581.3 million at Sept. 30, from $585.2 million at June 30, and book value per share fell to $183.57, from $184.79. The bank said equity growth was partly offset by a larger unrealized loss in its securities portfolio. Total assets were about $5.3 billion, up $59.0 million from a year earlier.

Credit quality improved. Nonperforming loans fell to $6.8 million, or 0.24% of loans, at Sept. 30, from $13.2 million, or 0.47%, at June 30. The bank recorded a $0.1 million benefit in its provision for credit losses for the quarter.

For the first nine months of the year, net income was about $67.2 million, according to the bank's federal call report, up from $57.5 million in the same period of 2025.

The results are among Lawer's last as CEO. The bank announced Oct. 7 that Darren Franz will succeed her as CEO and president on Jan. 2, 2027. Lawer will become executive chair.