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Alaska's state-chartered and federally chartered banks.

Alaska is home to four state-chartered banks--Denali State Bank, First Bank, Mt. McKinley Bank, and Northrim Bank--and three federally chartered banks--First National Bank Alaska, KeyBank, and Wells Fargo Bank. What's the difference between state and federally chartered banks? The short answer is that the charter holder is the supervisor of the bank. In Alaska, state-chartered banks are supervised by the State of Alaska, while the Office of the Comptroller of the Currency (part of the US Treasury Department) supervises federally chartered banks. Bank founders choose between state and federal charters at start up.

Alaska only has one federally chartered bank that is headquartered in Alaska--First National Bank Alaska. The other two federally chartered banks that operate in Alaska, Wells Fargo and KeyBank, do not produce Alaska-specific balance sheet information. In an effort to make the banking data included in the Alaska Trends section of Alaska Business Monthly (page 169) more accurate, starting this month, figures will include the financial results of state-chartered Alaska banks as well as the one federally chartered Alaska bank for which data is available on the state level, First National Bank Alaska.

It is easy to see the relative size of state-chartered banks as compared to federally chartered banks in Alaska. All of Alaska's state-chartered banks combined reported $2,294,350,000 in total assets and $2,011,970,000 in total liabilities during the third quarter of 2013. First National Bank Alaska reported $3,137,920,000 in total assets and $2,685,500,000 in total liabilities for the same period.

On a practical level, there are a variety of differences in the laws that govern state and federal banks related to the bank's powers, capital requirements, and lending limits. These differences were once considerably more pronounced, but as banks nationwide have consolidated, the differences have become fewer and less significant. Today, one of the biggest differences between state and federal bank charters is the amount the banks pay to their respective supervisors. The regulation banks receive costs money, after all, and fees are generally higher for national banks than for state banks.

Statements of Alaska's thirteen federal credit unions and one state credit union are difficult to compare to bank statements because they are produced on an annual basis rather than a quarterly basis, and thus are not included.
Alaska Trends, an outline of significant statewide statistics,
is provided by the University of Alaska Center for Economic

 Total Assets Total Liabilities
 (3Q 2013) (3Q 2013)

Alaska State Banks 42% 43%
Alaska Federal Bank 58% 57%

Note: Table made from pie chart.
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Title Annotation:ALASKA TRENDS
Comment:Alaska's state-chartered and federally chartered banks.(ALASKA TRENDS)
Author:Miller, Amy
Publication:Alaska Business Monthly
Geographic Code:1U9AK
Date:Apr 1, 2014
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