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When Winfield Ervin opened First National Bank of Anchorage in 1922, he did it because he said he had "faith in the future of Anchorage." Over the years, that faith grew to encompass all of Alaska, and the bank, now renamed First National Bank Alaska, soon became a fixture in communities all over the state.
Today, as Alaska's largest and strongest locally owned bank, First National has 29 branches in 17 communities throughout the state. "We have grown from one main office to having branches in Juneau, Fairbanks and Bethel, and many points in between," said D.H. Cuddy, who has served as the bank's president for more than 51 years. "When I went into the business in 1951, the bank had $6.5 million in loans and total assets of $31.2 million. Today, we have $1.2 billion in loans and total assets of $2.3 billion.
"I believe that our growth reflects the growth of the state," he added. "The bank has benefited as the state has developed over the past 85 years."
THE EARLY DAYS
Even before Alaska had a state flag or air mail service, First National had a home in Anchorage. According to The History of One Alaska Bank, published by First National, the bank, which was located on the corner of Fourth Avenue and G Street, featured brass spittoons and teller counters made from marble slabs that Ervin had used to knead confectionery as a candy maker back in Idaho. The vaults contained gold nuggets, as well as untanned pelts of beaver, wolverine, fox and mink. Outstanding stock totaled 500 shares, and the bank had only one employee, former railroad worker Harry Hamill.
In 1942, controlling interest in the bank was purchased by Warren N. Cuddy, a former U.S. district attorney in Valdez. During his tenure, the bank supplied payroll to World War II troops stationed in Alaska. Cuddy also opened a banking facility in Adak to serve the needs of the U.S. Army base. As the westernmost banking institution in the U.S. during this time, First National branches spanned four time zones.
In 1950, First National declared a 167 percent stock dividend, the largest stock dividend in the history of the bank. The bank also held a $200,000 stock sale--the only one in the bank's history--to raise money for the purchase of the Bank of Seward. One year later, bank president Warren Cuddy died, leaving his widow, Lucy Hon Cuddy, to become chairman of the board, and his son, D. H. Cuddy, to become the bank's new president.
Even the Good Friday Earthquake of 1964 couldn't stop the bank's forward progression. Despite heavy damage to a number of the bank's facilities, D. H. Cuddy immediately announced reconstruction plans in order to demonstrate his confidence in Alaska. Plans included the construction of eight additional floors of modern office space on First National's drive-in branch at 5th Avenue and G Street, in Anchorage, which were specially designed to flex in the event of a tremor. The bank also put additional loan funds into the reconstruction of the quake area.
Since that time, First National has continued to open new branches, including one in a federal building complex--the first bank in the U.S. to do so. Both J.P. Pfeifer and D.H. Cuddy's son, David Cuddy, served briefly as presidents of the bank before D.H. Cuddy returned to the position, which he holds in addition to his chairmanship of the bank's board. "I plan to be here another 50 years," he said of his tenure at the bank, "and I hope that in the future, my children will continue to run it."
SECRETS OF SUCCESS
According to D. H. Cuddy, there are a number of reasons why First National Bank Alaska has become the success that it is today. "Our fundamental philosophy is simple--first, we safekeep our customers' deposits," he explained. "Second, we provide all legitimate financial services consistent with our resources to the communities we serve. And third, we furnish our employees with competitive salaries and benefits in a pleasant environment. If all of this is handled, the bank will continue to be successful."
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First National also benefits from being a locally owned bank with deep roots in the communities it serves. "Our competitors, such as Wells Fargo and Key Bank, are run out of Cleveland, Ohio and San Francisco, California," Cuddy explained. "They don't have the local authority that we have."
A strong supporter of local organizations and events, First National can trace its public service involvement back to Cuddy's mother, Lucy Hon Cuddy, who was the founder and chairman of United Good Neighbors, now known as the United Way of Anchorage. In 2006 alone, for example, the bank donated $741,418 to nonprofits throughout the state and gave more than $632,000 in sponsorships to local community and business endeavors. As a testament to its commitment to help build Alaska's future leaders, the bank also takes a leadership role as the prime corporation sponsor for the Alaska School Activities Association, having invested more than $1 million in activities for Alaska's young people in the past decade. And Lucy Hon Cuddy's granddaughter, Betsy Lawer, now the bank's chief operating officer, co-chaired the United Way's 2000 fundraising campaign, raising a record-breaking $8.7 million for those in need in the Anchorage community.
PROVIDING ACCESS TO ALL ALASKANS
As the state has grown, so have the services that First National provides to its residents. From opening the first drive-in bank in Anchorage in 1960, to opening the only bank branch west of the Alaska Range in 1961, to establishing an ATM network to serve customers 24 hours a day in the 1980s, First National has always been on the cutting-edge of customer service.
In 2001, First National was honored for its success with three major financial awards. The only bank in Alaska to be rated "A+" by Weiss Ratings Inc., First National was also the only Alaska bank to receive a perfect 300 score from IDC Financial Publishing, Inc. The bank was also rated five stars by Bauer Financial Reports, Inc. for 49 consecutive quarters--the longest such streak of any Alaska Bank.
And the bank continues to prosper. Since 2002, First National has added a third branch in Fairbanks, and a branch in Glennallen, and is looking to expand even further. "As opportunities arise, we will continue to move into more communities in order to serve more customers," said Cuddy, who adds that the bank is currently looking at expanding into Healy.
The asset size, ownership and management allow the bank to claim its position as the largest Alaskan-owned and -operated bank in the state. Seventy percent of the ownership of stock in the bank is held by residents of the state of Alaska. Each member of the board of directors and each senior vice president is either Alaska-born or a long-time residents of the state.
"First National has served the state for 85 years, and I expect that it will continue to be here for a very, very long time," Cuddy added. "We love this state and its people, and we're not going anywhere."
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