Alaska Air Group 2Q net income doubles
The parent of Alaska Airlines said that second-quarter profit more than doubled with the help of full airplanes and higher fares. Alaska Air Group Inc. reported net income of $67.5 million, or 93 cents per share. This is up from $28.8 million, or 39 cents per share, a year ago. Excluding fuel-hedging costs because of the second-quarter dip in oil prices, the company said it would have earned $1.53 per share. Analysts, who usually exclude one-time items from their forecasts, had expected $1.51 per share, according to FactSet. Revenue rose 9.3 percent to $1.21 billion, matching analysts’ forecast. CEO Brad Tilden said revenue was helped by strong travel demand and the airline’s growing route network. During the second quarter, Alaska added about 10 new routes including San Jose, Calif., to Honolulu and Seattle to Philadelphia. There were fewer empty seats on Alaska Airlines flights. Occupancy averaged 87.4 percent in the quarter, up from 85 percent and higher than most of its bigger rivals. Average fares rose 1.9 percent on Alaska, although they dipped 2.1 percent on the company’s much smaller regional airline, Horizon Air. The company states that money from bag fees in the first half of 2012 fell $4 million to $76 million. Executives said more customers were avoiding the fees by carrying bags on board or getting elite frequent-flier status on Alaska or its partner airlines. Most airlines waive bag fees for elite members. Ray Neidl, an analyst for Maxim Group LLC, said Alaska should be able to increase other types of extra revenue including selling more hotel bookings and car rentals, especially with its new service to Hawaii. Such extras are profitable and not that risky for Alaska Air, he said. Fuel spending for Alaska and Horizon increased 8.6 percent. Wages and benefits rose 6.6 percent.
Northrim BanCorp earns $3.1 million in 2Q
Northrim BanCorp Inc. reported net profits of $3.1 million, or $0.48 per diluted share, in the second quarter of 2012. This compares to $2.6 million, or $0.39 per diluted share in the preceding quarter and $3.2 million, or $0.49 per diluted share, in the second quarter a year ago. Loan growth, increasing contributions from affiliated businesses and continued improvements in loan quality generated solid profitability in the second quarter and in the first six months of 2012, compared to similar periods in 2011. For the first six months of 2012, Northrim earned $5.7 million, or $0.87 per diluted share, up from $5.6 million, or $0.86 per diluted share in the first half of 2011. Northrim’s assets totaled $1.072 billion at June 30, compared to $1.076 billion at March 31 and $1.049 billion a year ago. Nonperforming assets (NPA) were $12.5 million at June 30, compared to $13.5 million in the preceding quarter and $15.0 million a year ago. The NPA to total assets ratio stood at 1.16 percent at June 30, down from 1.25 percent three months earlier and 1.43 percent a year ago. “Alaska’s economy continues to show strength, and our asset quality continues to improve,” said Chris Knudson, Chief Operating Officer. Nonperforming loans declined to $6 million at June 30, as compared to $6.8 million at March 31, and $9.9 million a year ago. Other real estate owned (OREO) was down slightly in the second quarter of 2012 and year-over-year, as nonperforming loans migrate through the collection process. Loans measured for impairment totaled $14.2 million at June 30, as compared to $12.3 million at the end of March, and $12.7 million in the second quarter a year ago. In the second quarter of 2012, net interest income was $10.5 million, an increase of 1 percent compared to $10.4 million in the immediate prior quarter and a decrease of 1 percent compared to $10.6 million in the second quarter of 2011. In the first six months of 2012, net interest income fell 2 percent to $20.9 million compared to $21.3 million in the first half of 2011.
Memorandum signed for new Ketchikan moorage facility
The Alaska Industrial Development and Export Authority, together with the Alaska Department of Transportation and Public Facilities and Ketchikan Gateway Borough signed a Memorandum of Agreement regarding the construction of a new moorage facility in Ketchikan. The facility would provide berthing for Alaska Marine Highway System ships and could also have the capacity to dock National Oceanic and Atmospheric Administration vessels. Under terms of the Agreement, AIDEA and the Ketchikan Gateway Borough will work with DOT&PF to build the moorage facility. AMHS currently uses a moorage facility adjacent to AIDEA’s Ketchikan Shipyard. The new facility would be located at Ward Cove and would allow Ketchikan Shipyard to expand its operations and add jobs. NOAA would have the opportunity for a moorage facility for the Fairweather, a 241-foot hydrographic survey vessel. The Fairweather and its approximately 40-member crew are supposed to be homeported in Ketchikan, but a lack of a functional berth in the community has kept the vessel outside of Alaska.
First National Bank Alaska announces new branch name
First National Bank Alaska has announced that the new facility on Joint Base Elmendorf-Richardson will be named the North Star Branch. The new 3,950-square foot branch will have a staff of seven and include two drive-up lanes, a drive-up ATM, and night drop depository. The North Star Branch will also house the first full-function customer kiosk in the First National system, where customers can handle routine banking transactions online without teller assistance. Cole & Thompson Architects, headquartered in Anchorage, designed the North Star Branch. MCN Construction Inc., also of Anchorage, is the primary contractor for branch construction. Construction is scheduled for completion in late 2012. Estimated construction cost is $2.1 million.
Talkeetna Alaskan Lodge and Resurrection Roadhouse at Seward Windsong Lodge earn wine award
The Talkeetna Alaskan Lodge and the Resurrection Roadhouse at Seward Windsong Lodge have won the Wine Spectator’s Award of Excellence. Talkeetna Alaskan Lodge has won this award 10 years in a row. Resurrection Roadhouse, the on-site restaurant at Seward Windsong Lodge, now celebrates its second year to have received this distinction. Wine Spectator’s Restaurant Wine List Awards has recognized the world’s best wine lists since 1981. Establishments with a wine list of at least 100 quality selections presented and appropriately paired with the restaurant’s cuisine are honored with the Award of Excellence designation.