First Nations Bank of Canada today announced record earnings for the fiscal year ended Oct, 31, 2006 of $1.39 million, up 270% from the prior year.

Strong loan growth and improved income margins drove the increase in net interest income. Low loan losses and the holding of non-interest expenses to levels comparable to the prior year also made a strong contribution to the bank’s solid income performance.

Return on equity for the year was 9.93% a significant increase over the 2.97% realized in the prior year. Total assets grew 19.3% to $181.2 million with loan volumes increasing by 18.9% to $127.3 million. Deposit volume improved by 17.6% or $19.1 million. Over $9.1 million or 45% of First Nations Bank’s aggregate loan growth during the year was from new Bank relationships. Approximately 97% of First Nations Bank’s overall loan portfolio is First Nations related, reflecting the growing economic base in markets served.

“The bank continues to grow market share in existing core markets while expanding into new regions where the fundamentals of the local Aboriginal economy are strong,” said Arden Buskell, president and chief operating officer, in a news release. “Fiscal 2006 was an outstanding year in terms of growth and profitability which is a function of our customers and the commitment of our employees to provide quality service.”

First Nations Bank reached a major milestone celebrating its tenth anniversary on November 19, 2006. Currently, First Nations Bank has a new branch under construction in Whitehorse which will be the fifth branch of the bank. The new branch in Whitehorse is tentatively scheduled to open in spring 2007.

First Nations Bank is also in the process of raising new Aboriginal capital which is expected to expand the number of Aboriginal shareholders and propel the Bank into new markets.

“Ten years ago we were confident the bank would fill a need in the financial services being delivered to Aboriginal communities,” said Keith Martell, chairman of the board of directors. “Our focus on this unique, and growing market is proving that we have the right formula to be very competitive. We will continue to build our capacity to serve this market.”