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A Message from the President & CEO, COVID-19

By Media | Published: April 5, 2020

Historical Spotlight: The Ancient Art of Traditional Tattooing

Dear Shareholders,

Many people are understandably concerned about the spread of the coronavirus, also known as COVID-19. As the COVID-19 outbreak evolves, the health and safety of BSNC shareholders, employees and the communities in which we live and work remain BSNC’s top priority. While BSNC is not currently experiencing any significant disruption to its business operations, we are prepared with resources to continue providing optimal and uninterrupted service to our customers and shareholders.

On Friday, March 20, BSNC’s Board of Directors held a special Board meeting to discuss potential COVID-19 restrictions being considered by both federal and state governments, and potential impacts to our Region, shareholders and employees if restrictions are imposed. The Board voted to declare a special dividend of $3.00 per share, and a special Elder distribution of $250.00 to each original shareholder who was 65 years of age or older on March 20, 2020, the date of record. Both the dividend and Elder distribution will be paid through the BSNC Beringia Settlement Trust, and therefore are not taxable for federal income tax purposes. In providing for these special distributions, we want to do what we can to help our shareholders and Elders deal with potential financial hardships caused the COVID-19 pandemic.

Many companies, schools, governments, organizations and cities have acted swiftly to postpone or cancel events to safeguard against the transmission of COVID-19. Many of you may know that BSNC postponed its Shareholder Informational Meeting that was scheduled to take place in Tulalip, Washington on Saturday, March 28. I care deeply about protecting the health and safety of BSNC shareholders, employees and the public. When I made the decision to postpone this informational meeting, I also thought of the healthcare providers at the frontlines battling this pandemic.

Our challenge is to ensure that we keep our shareholders and descendants informed about BSNC, and our activities, but also ensure that transmission of COVID-19 does not occur in our Region because of Board and staff travel. BSNC has not yet selected a new date for a rescheduled informational meeting. As we explore options for a new date, priority will be the health and safety of our shareholders, Board and staff.

I understand and empathize with many of our shareholders’ concerns and fears about COVID-19. The historical memory of the 1918 flu pandemic and the catastrophic effects it had on the population, culture and families of our Region has not been forgotten.

We Alaska Native people have thrived in remarkably difficult conditions for thousands of years. We are resilient. We adapt to changes and yet remain steadfast in our tradition of looking out for each other. I pray that you and your loved ones remain safe and healthy during this pandemic and I am confident that by working together we will get through this public health crisis.

BSNC will continue to closely monitor guidance from the Centers for Disease Control and Prevention and state health agencies regarding this pandemic, and will update our shareholders through regular communication channels, including the Agluktuk newsletter, our social media outlets and on BSNC’s COVID-19 public resource webpage located at www.beringstraits.com/covid-19-update/. We are happy to answer any questions you may have via email at health@bsnc.net.

We pray that you and your loved ones remain safe and healthy.

Quyaana,

Gail R. Schubert
BSNC President & CEO

A Message from the President & CEO, Year End

By Media | Published: December 27, 2019

A Message from the President & CEO, Year End

Winter is a great time of the year. Our traditions, which include ice fishing, celebrating holidays and spending precious time with family, make the season special and memorable. As we approach a new decade, we have much to be thankful for. We are especially thankful for our Elders and shareholders who provided strong support to the Board and management as we worked to grow BSNC and our subsidiary operations.

BSNC held its 2019 Annual Meeting of Shareholders in Nome on October 5. On behalf of BSNC, I am pleased to welcome Cindy Towarak Massie to the BSNC Board of Directors. Cindy has demonstrated exceptional devotion to the advancement of BSNC’s shareholders and descendants through her and her husband’s philanthropic support of the Bering Straits Foundation. Cindy’s business experience and perspective will provide a valuable perspective to BSNC and the Board of Directors.

BSNC has already funded the BSNC Beringia Settlement Trust in the amount of $37,781,857, and issued a record-high dividend distribution via direct deposit and check on November 25, two weeks earlier than the 2018 dividend distribution. The dividend was declared by the BSNC Board of Directors in August and is paid through the BSNC Beringia Settlement Trust. Because the dividend was paid through the Settlement Trust, it is tax-free to all shareholders. In addition, an Elder dividend distribution of $1,500 was sent to all original BSNC shareholders who were 65 years of age or older on November 4, 2019, the date of record.

Many shareholders commented on social media that they received their dividends sooner than expected. This was because BSNC now offers direct deposit through the new MyBSNC Shareholder Portal. There are many benefits to signing up for direct deposit, including earlier receipt of dividend payments and other distributions from the Settlement Trust. MyBSNC also gives shareholders quick access to their shareholder information, the ability to conveniently update address and contact preferences, and view dividends and distributions made by BSNC. I encourage all shareholders to sign up for MyBSNC through the BSNC website.

There were many inquiries at the Annual Meeting about the Alaska Native Veterans Allotment Act. If you or your family member(s) served in Vietnam between August 5, 1964 and December 31, 1971, please contact Kawerak Land Management Services so that Kawerak can assist qualified veterans or their surviving family members in applying for a Native Allotment. BSNC thanks and honors our Nation’s military veterans for their service.

Subsistence remains critical to our Shareholders’ survival and cultural identity. We all know that Alaska Native people have a special connection to the land. With that in mind, we have been tracking the efforts of IPOP, LLC, a mining company that has announced plans to explore for gold in the Safety Sound, Bonanza Channel and Golovin Lagoon. They hope to produce a TV show based upon their exploration and development efforts. We stand ready to assist our villages which would be impacted by this ill-conceived project by working with our Congressional Delegation and other regional entities to oppose this effort.

I have been privileged to participate with AFN and other entities in a series of presentations about the Arctic through the Alaska Command Arctic Symposium. It is clear that the Arctic has been recognized as a critical and strategic location as climate change opens the region to increased marine and aviation traffic. I continue to advocate for an Arctic policy that supports strengthening national security and defense in the BSNC region, while ensuring that our way of life is not dramatically and adversely impacted.

BSNC is blessed to be able to provide enhanced benefits to our shareholders and descendants, and fulfill our mission to improve the quality of life of Our People through economic development while protecting our land and preserving our culture and heritage. I thank you for your continued support. I hope everyone enjoys the winter season
safely. Quyaana.

Gail R. Schubert
BSNC President & CEO

A Message from the President & CEO, Spring 2019

By Media | Published: April 23, 2019

A Message from the President & CEO, Spring 2019

The longer days we are now seeing are a welcome and telltale sign of spring. This past winter produced record snow for some of our villages, and several others experienced a complete loss of shorefast and winter ice coverage more than once during this time. The sun’s reappearance brings renewed energy, an increase in time spent outdoors and once again, the annual return of our traditional subsistence activities, including harvesting migratory birds and their eggs, marine mammals, and greens. We are hopeful that the changing weather and ice conditions does not negatively impact our spring subsistence activities.

I am pleased to share an update regarding BSNC’s Beringia Settlement Trust, which was created after shareholders overwhelmingly voted to approve a resolution establishing the Trust at the 2018 Annual Meeting of Shareholders. A permanent fund has been created within the Beringia Settlement Trust to grow assets and generate investment returns into perpetuity for the benefit of our shareholders and descendants. The Settlement Trust also serves to protect the continuity of existing benefits, including Elder distributions, bereavement benefits, and education. BSNC recently contributed cash and other assets of almost $30 million to the Trust as an initial funding.

As a reminder, Settlement Trusts are intended to benefit shareholders, descendants and Alaska Native people. Revenue generated from Settlement Trusts can be used to provide dividends, scholarships, bereavement benefits, and support cultural programs. As BSNC contributes cash and other assets to the Settlement Trust, we are able to reduce our current and future federal income tax liability. Because BSNC distributed the special Elders dividend in November and the shareholder dividend in December from the Settlement Trust, these distributions are not subject to federal income tax by our shareholders.

I am also excited to share information about a great career opportunity for BSNC shareholders and descendants. BSNC is offering qualified shareholders and descendants a one-time scholarship for up to $2,000 to be used to pay for training required for a career opportunity with Edison Chouest Offshore (ECO). The scholarship will help qualified candidates obtain prerequisite TWIC and U.S. Coast Guard Merchant Mariners certificates, and pay for air travel to ECO’s training facility in Louisiana. Meals and lodging will be provided to successful candidate applicants by ECO.

Once hired, training will start immediately. The classroom training lasts two weeks, followed by three months of on-the-job training in the Gulf of Mexico. Whether you are an entry-level candidate or an experienced mariner, each candidate will have an individual development plan to work toward higher U.S. Coast Guard licenses and pay. ECO’s state-of-the-art training center is one of the most advanced in the world. Staffed by U.S. Coast Guard- Certified Instructors, the ECO training staff will provide Alaska Native hires with the training and qualifications needed to build a successful career in the maritime industry. I encourage anyone interested in this opportunity to contact Brent Lirette at (907) 562-2136 or brent.lirette@chouest.com.

As May is rapidly approaching, on behalf of the BSNC Board of Directors and staff, I extend congratulations to our shareholders and descendants who are graduating from high school, college, and graduate school. We are all proud of your accomplishments and wish you well in your future endeavors. In closing, I want to acknowledge the lifelong commitment to BSNC of our former Director and President & CEO Tim Towarak, who recently passed away. I thank his family, and especially his wife Rose, for the many years that Tim worked on behalf of our People, resulting in much time spent away from them. Quyaana, and may Tim’s memory be eternal.

Gail R. Schubert
BSNC President & CEO

A Message from the President & CEO, Winter 2018

By Media | Published: December 18, 2018

A Message from the President & CEO, Winter 2018

I hope that everyone has had a wonderful summer and autumn filled with quality time spent outdoors with your loved ones. Winter’s return brings longer nights and much cooler weather. I hope that everyone stays safe while out in the country engaging in our subsistence activities.

BSNC recently held its Annual Meeting of Shareholders in Anchorage. I am pleased to welcome Edna (Becka) Baker to the BSNC Board of Directors. Becka is a resident of Nome, and is the daughter of Valerie Sobocienski and her late husband Stanley. She joins BSNC’s Board with more than 30 years of experience as a public servant employed by the State of Alaska.

I also thank outgoing Director Neal Foster for his service to the corporation as a Board member since 2006. Neal is a member of the Alaska House of Representatives, and opted not to run for reelection this year in order to focus more on serving his constituents in the 39th District, which represents more than 20 villages in the Bering Strait and Yukon/Kuskokwim regions.

The sole resolution before the shareholders at this year’s Annual Meeting was whether BSNC should establish the Beringia Settlement Trust. I am happy to report that the Settlement Trust was approved by shareholders with 93 percent voting in favor of the resolution. The BSNC Board of Directors has authorized a $12 million transfer into the Settlement Trust. Future dividends, including the December Elder and regular dividend, will be distributed through the Trust on a tax-free basis.

The creation of the BSNC Beringia Settlement Trust is a positive step that will help stabilize dividends and provide a tax benefit for BSNC. Because a Settlement Trust reduces BSNC’s current and future tax liability, it allows BSNC the opportunity to allocate greater resources toward shareholder and descendant benefits, including non-taxable dividend distributions, Elder benefits, bereavement assistance and cultural programs.

BSNC continues to perform well and fulfill its mission to improve the quality of life of our people through economic development while protecting our land and preserving our culture and heritage. I thank BSNC’s Board of Directors for their steady and long-serving governance and our shareholders for their ongoing support.

Gail R. Schubert
BSNC President & CEO

DECEMBER 2019

A Message from the President & CEO, Spring 2018

By Media | Published: May 15, 2018

A Message from the President & CEO, Spring 2018

I am excited to share with you news about an opportunity that the new tax law created for BSNC and other Alaska Native Corporations (ANCs) to enhance the benefits we provide to our shareholders and descendants. ANCs have been authorized to create “Settlement Trusts” since the 1980s, and several regional corporations have already created these trusts. Under the law, a Settlement Trust is authorized to promote the health, education, and welfare of its beneficiaries, and to preserve the heritage and culture of Alaska Natives.

At its February 2018 meeting, the BSNC Board authorized the creation of the BSNC Beringia Settlement Trust. This trust will be a separate legal entity from BSNC, and its board will be appointed by BSNC. In order to create a BSNC Settlement Trust, shareholders must approve its creation by a vote of the majority of shares present (in person or by proxy) at a meeting for which a quorum is established. We are asking that you vote YES to authorize the creation of the BSNC Beringia Settlement Trust at the 2018 Annual Meeting.

You may wonder why BSNC wants to create a Settlement Trust right away. The answer is that the new tax law created financial incentives for BSNC to save money on taxes by making contributions to the Trust for the benefit of our shareholders and descendants. The Trust could be used to fund dividends, elder distributions, and bereavement assistance payments. The Trust may also be used for scholarships and funds for cultural preservation and promotion programs. Finally, contributions received by the Trust from BSNC would be taxed just one time at the low flat rate of 10%, and dividends and other distributions from the Trust to shareholders and descendants are expected to be tax free.

Once BSNC contributes cash or other assets to the Settlement Trust, they can only be used for the generation and distribution of benefits to the shareholders and/or beneficiaries of the Trust. BSNC cannot take any money out of the Trust for its own uses once contributions are made.

The BSNC Beringia Settlement Trust will serve to provide a dividend distributions, elder benefits, bereavement assistance, scholarships and support cultural preservation and promotion programs. Additional information will be included on the BSNC website and Facebook page, and in the Annual Report and proxy you will receive prior to the 2018 Annual Meeting.

Again, we ask that you vote YES to allow BSNC to create the BSNC Beringia Settlement Trust. Quyaana to you our shareholders for your ongoing support and involvement in BSNC.

Gail R. Schubert
BSNC President & CEO

DECEMBER 2019

A Message from the President & CEO, Autumn 2017

By Media | Published: November 9, 2017

A Message from the President & CEO, Autumn 2017

I hope everyone had a successful summer fishing, hunting, and harvesting berries and greens in preparation for winter. The summer flew by and as we head into the winter months, we will be able to enjoy the fruits of our labors. Our Region is blessed to have many subsistence resources close to our villages, and I am proud that our youth have continued the centuries-old practice of sharing our resources with Elders and other households, both in the village and in urban Alaska. That has been the stronghold of our survival for many, many generations.

This year, the BSNC Board of Directors declared a record-high dividend of $3.75 per share to be issued in December. The Board also voted to declare a one-time special Elder dividend distribution of $750, an increase of $250 more than the 2016 special Elder distribution. We have been fortunate that our business development and support staff have had success in securing both government and commercial work, which has allowed us to focus on shareholder hire and development, hire and retain top quality employees, and increase the benefits we provide to our shareholders and Region. Because of our efforts, Alaska Business Monthly announced BSNC as #10 of the Top 49 Alaska-owned business as ranked by 2016 gross revenues.

During the 2017 Annual Meeting in Nome on Oct. 7, BSNC honored the lifelong efforts of Arthur “Guy” Martin to preserve and promote the rich cultural and historical resources of our Region. It was with great sadness that we learned of Guy’s passing on the evening of the Annual Meeting. On behalf of BSNC and our Board of Directors, I extend sincere condolences to Guy’s loved ones. During various points in his career, Guy worked for BSNC, Kawerak, Inc., Nome Eskimo Community and Sitnasuak Native Corporation. He was active in the community and served on many boards. Guy was a great believer in the power of persistence, even in the face of setbacks, and he worked tirelessly to see that our Region’s traditional knowledge is continued and respected.

The 2017 Annual Meeting in Nome was well attended. Shareholders voted on the election of five board directors. Incumbents Henry Ivanoff Sr., Robert K. Evans, Roy C. Ashenfelter and Homer E. Hoogendorn were reelected and Deborah Atuk was newly elected to the Board. I thank outgoing Director Fred N. Sagoonick for his longstanding service as a board member.

BSNC recognizes the importance of uplifting our youth and young adults who represent the next generation of leaders. This year, BSNC honored Fisher Dill of Unalakleet and Corey Ningeulook of Shishmaref with the Young Providers Award at the Annual Meeting. The BSNC Board of Directors chose to posthumously honor Norbert Kakaruk, a Qawiaramiut Elder from Mary’s Igloo through presentation of this year’s awards. I am proud that our youth demonstrate a dedication to the Region and their respective communities, family and culture. I was pleased to see that BSNC’s 2016 Young Provider, Christian Agragiiq Apassingok of Gambell, gave the youth keynote address during the 34th Annual Elders and Youth Conference in Anchorage. As you may know, Christian faced backlash from online bullies after harvesting his first bowhead whale last spring. I commend Christian for providing for his community and standing up for our people and way of life. His message to continue our traditional subsistence activities while facing opposition was powerful and inspiring.

BSNC’s 2017 Summer Internship Program was a success and provided eight interns the opportunity to gain valuable work experience and skills in Nome and Anchorage. Interns participated in trainings and workshops which included leadership skills, public speaking, the Alaska Native Claims Settlement Act, policy issues that affect Alaska Native people, cultural awareness, business structure, Arctic matters, personal finance and networking opportunities. Several of our past interns have transitioned to full-time employment with BSNC and other ANCSA corporations.

During this year’s Alaska Federation of Natives Convention, you may have been approached by signature-gatherers asking for you to sign a petition that claims to “Stand for Salmon.” In July, the ANCSA Regional Association voted unanimously to oppose this controversial initiative. If the initiative is passed and later becomes law, it may prevent Alaska Native Corporations from developing the lands and resources that were conveyed under ANCSA, and negatively affect our ability to create a sustainable socioeconomic future for our people. It could also delay or deny infrastructure improvement projects and economic development projects on Village lands. We urge you to carefully consider whether you should support this initiative, and for the reasons stated above, recommend a no vote if it is included on the ballot.

Earlier this fall, BSNC’s Anchorage office moved to the third and fourth floors of the Calais II building located at 3301 C Street, Suite 400. To welcome shareholders and business associates to the new location, BSNC will host an Open House and Holiday Bazaar on Thursday, Nov. 30 from 5-7:30 p.m. I hope to see many of you there.

Heading into 2018, we look forward to continuing the growth and diversification of BSNC. I hope that everyone has a happy and safe holiday season. Quyaana for your continued support of and involvement in BSNC.

Gail R. Schubert

DECEMBER 2019

A Message from the President & CEO, Summer 2017

By Media | Published: July 11, 2017

A Message from the President & CEO, Summer 2017

Summer is a beautiful time of year in the Bering Strait region. Ice and snow have given way in the warmer weather to open tundra and flowing waters. I have enjoyed reading the posts on social media of our Spring subsistence activities, including the harvests of abundant amounts of herring roe on seaweed, migratory bird eggs, salmon and marine mammals. Soon, salmonberries, blueberries, blackberries and cranberries will ripen and be harvested and either frozen, canned or made into jams or jellies for future use. I am thankful for all that our lands and seas provide, and proud that our time-honored tradition of sharing our rich subsistence harvests with our Elders and others continues to be a core value for us. Our subsistence way of life is a critical cornerstone of BSNC’s mission: “To improve the quality of life of our people through economic development while protecting our land and preserving our culture and heritage.”

I would like to take the opportunity to congratulate all of the 2017 high school and college graduates, and deliver a special message to young people starting out in their careers. To the friends and families of graduates, I applaud you too for the sacrifices you have made in your efforts to support your loved ones as they worked to earn their educational degrees.

Graduation marks the end of one chapter in a person’s life and the beginning of the next. The current successes of many Alaska Native Corporations (ANCs) like BSNC have meant that a generation of Alaska Natives have grown up benefitting from scholarships, dividends and other shareholder benefits that ANCs provide.

I share this because it’s important to take note of progress and to remember our early Native leaders who made these benefits possible. They fought for our rights with very little formal education and financial resources. They did the best they could with available resources, despite being thrust into a corporate world that few understood or had prior experience working in.

Today’s graduates have the opportunity to serve Alaska Native people during a very complex time. Our state faces major challenges ahead. On the positive side, ANCs currently have a profound positive impact on the state’s economy, while at the same time delivering benefits to our shareholders and descendants. ANCSA corporations rank among the top revenue-generating companies in the state. However, ANCSA has not solved all of the social ills that our people currently face. Today’s graduates have an opportunity to help make things better. They can build upon early mistakes that were made, apply what we have collectively learned since then, and make progress from a stronger position.

We Alaska Native people have thrived in remarkably difficult conditions for thousands of years. We are resilient. We adapt to changes and yet remain steadfast in our tradition of looking out for each other. One universal value found across all Alaska Native cultures is a strong responsibility to our families and communities. Young people — you are in a unique position to leverage your achievements and special responsibilities to build upon the successes and failures of ANCSA to make the work you do a blessing to the people you serve.

I challenge you to work with purpose to build alliances and tackle the social and other issues that we face. Ensure that your company’s mission is upheld. I also challenge you to take on meaningful projects throughout your career and serve as an ally to Alaska Native people. Work to empower the next generation with the tools, knowledge and skills they will need to make their own positive impact.

Step outside of your comfort zone and do something that generations before you never thought possible. Making an impact requires more than a vision and passion. Your education has taught you to be organized. To be strategic. To see a problem and not view it as such, but as an opportunity use your creative skills to find solutions. Use those skills well to light your path with purpose, and to pave the way for the next generation to improve upon your successes.

Quyaana and I hope everyone has a safe and productive Summer.

Gail R. Schubert

DECEMBER 2019

A Message from the President & CEO, Winter 2017

By Media | Published: March 14, 2017

A Message from the President & CEO, Winter 2017

I hope that everyone had a wonderful winter filled with seasonal outdoor activities with your loved ones and friends. Daylight is starting to return and many are already preparing for the return of spring hunting of migratory waterfowl, seals, other marine mammals and king crab harvesting!

For thousands of years, the people of our region have sustained their families and communities with the abundance of natural resources that our region is blessed with. Time-honored traditions such as replenishing subsistence food supplies with fresh seal, walrus and oogruk, all kinds of migrating birds and their eggs, and fresh crab are all part of our Native way of life.

It has been heart-warming seeing photos that our shareholders and descendants have submitted to the annual BSNC Photo Contest sharing their successful hunting and harvesting efforts. It is gratifying seeing that our tradition of sharing with Elders, the infirm and others is still as important now as it was hundreds of years ago. I am proud that our youth have demonstrated a strong dedication to this tradition and their deep connection to the land and their culture. While changes in our environment and lifestyles have occurred, our traditions are what bind us together and ensure that our Native way of life will live on well into the future.

As we head into 2017, I would like to take the opportunity to thank BSNC’s shareholders for their continued support for and involvement in their corporation. 2016 was a noteworthy year for BSNC. 2016 marked the ninth consecutive year the corporation has paid dividends to its shareholders.

The record high dividend of $3.50 per share declared by the BSNC Board of Directors is a reflection of BSNC’s commitment to providing meaningful benefits to its shareholders. BSNC’s Board of Directors also issued a $500 special Elder dividend to original BSNC shareholders who were 65 years of age or older on Nov. 10, 2016. This dividend was given in gratitude of the contributions of Elders to our region’s communities and people. BSNC looks forward to focusing on delivering strong financial results to you, our shareholders, while focusing on operational excellence, diversifying revenue and enhancing shareholder opportunities.

The achievements of the past year(s) are the result of the collective dedication and resilience of BSNC’s Board of Directors, and the continued efforts of management and staff to the ongoing growth of our Company. We have built a successful Alaska Native corporation that holds true to its mission of improving the quality of life of our people through economic development, while protecting our land and preserving our culture and heritage. Heading into 2017, we look forward to continuing the growth and diversification of BSNC. Thank you to our shareholders for your ongoing support and involvement in your company.

Gail R. Schubert

DECEMBER 2019

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OFFICESWhere to find us?
BSNC is headquartered in Nome, has a business office in Anchorage and site locations and offices across the U.S.
OUR LOCATIONSWhere to find us?
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3301 C Street, Suite 100, Anchorage, AK 99503
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PO Box 1008. 110 Front Street, Suite 300, Nome, Alaska 99762
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