First Nations Bank today announce record earnings for the fiscal year ended October 31, 2007 of $1.66 million, up 19.7% from the prior year.

The Saskatoon, Sask.-based bank said total assets grew 24.8% to $226.3 million with total loans and mortgages increasing by 9.5% to $139.4 million.

Total deposits strengthened by $21.6 million or 16.9% to reach a new high of $149.2 million.

Low loan losses and a growing base of customers made a strong contribution to the Bank’s solid income performance.

“The bank had a very good year in terms of growth and profitability which is a reflection of the continuing support of our customers and the commitment of our employees to grow the business,” says Arden Buskell, president and CEO.

The addition of new Aboriginal Shareholders during the year was positive development, the bank said.

In October 2007, First Nations Bank announced that it had closed a private placement share offering to Aboriginal investors of 6,222,240 shares at an issue price of $2.25 per share for gross proceeds of $14 million. The proceeds of the private placement will be primarily used to fund the future growth of the bank. Of the proceeds, 19.5% were used to redeem shares owned by The Toronto-Dominion Bank, which continues to hold a 9% interest in the common shares. The redemption is consistent with the original plans for First Nations Bank to be controlled by Aboriginal Shareholders. Aboriginal Shareholders from across Canada now own 91% of the common shares of the Bank. TD Bank Financial Group will continue to provide services to First Nations Bank.

“The closing of the share offering is very significant as it solidified our capital base while positioning the Bank to grow with the Aboriginal economy,” Buskell said.

“The bank continues to meet the objectives we set when it was created in 1996. The achievements in 2007 are a credit to our dedicated management and staff. These accomplishments establish a good base for further development and expansion,” said Keith Martell, executive chairman.

First Nations Bank of Canada is a domestic, federally chartered bank with branches in Saskatchewan, Yukon, Manitoba, Ontario, and Quebec and executive offices in Saskatoon, Saskatchewan. It offers a full range of personal and business banking services with a primary focus on Aboriginal customers.