AltaPacific Bank (OTCBB: ABNK) today reported net income totaling $189,000 for the first quarter of 2010. The bank has now been profitable for seven consecutive quarters with this most recent quarter representing the bank’s highest net income on record. The net income achieved during this most recent quarter represents an increase of 16.7% over the prior quarter and a 170.0% increase over the same period one year ago. AltaPacific Bank opened for business on July 10, 2006.

At March 31, 2010, assets totaled $86,956,000, representing an increase of 3.9% over December 31, 2009 and an increase of 38.1% over March 31, 2009. The bank’s net loans at March 31, 2010 totaled $64,676,000 representing an increase of 7.3% over December 31, 2009 and a 66.8% increase over March 31, 2009. Deposits totaled $57,328,000 at March 31, 2010 representing an increase of 13.4% over December 31, 2009 and a 50.4% increase over March 31, 2009. At March 31, 2010, the bank’s Allowance for Loan and Lease Losses totaled $1,336,000 and represented 2.02% of Gross Loans. The bank did have one nonaccrual loan which totaled $1,194,000 at March 31, 2010. The nonaccrual loan is secured by real estate.

The bank’s total Risk-Based Capital Ratio totaled 35.6% at March 31, 2010 and substantially exceeds the 10% minimum ratio for a well capitalized institution. Furthermore, as of December 31, 2009, the bank’s regulatory capital ratios exceed all other banks operating in Sonoma and Marin counties and continue to be within the top 10% of all commercial banks operating in California.

“The ability for our bank to continue to sustain this level of balance sheet growth and profitability during these tough economic times is a great tribute to our professional staff and Board of Directors,” stated Charles O. Hall, the bank’s President and Chief Executive Officer. Continuing, Mr. Hall stated, “As a result of our strong capital position, asset quality and overall business philosophy, business customers are quickly finding us to be an excellent choice when looking to satisfy their financial service needs.”

AltaPacific Bank is an independent business bank headquartered in Sonoma County. The bank is focused on meeting the specialized needs of small to medium-sized businesses and professionals. AltaPacific Bank is located at 3725 Westwind Blvd., Suite 100, Santa Rosa, California and is near the Charles M. Schultz – Sonoma County Airport. For additional information, please contact us at (707) 236-1500 or online at

The following is a summary of the bank’s financial performance (unaudited) as of March 31, 2010:

(Dollars in thousands)       March 31, 2009     December 31, 2009     March 31, 2010
Gross Loans $ 39,574 $ 61,519 $ 66,012
Allowance for Loan Losses 804 1,251 1,336
Net Loans 38,770 60,268 64,676
Total Deposits 38,127 50,557 57,328
Total Assets 62,962 83,685 86,956
Shareholder’s Equity 24,660 25,011 25,429

(Dollars in thousands)       Three Month Period Ended
March 31, 2009     December 31, 2009     March 31, 2010
Interest Income $ 995 $ 1,370 $ 1,448
Interest Expense 92 149 134
Net Interest Income 903 1,221 1,314
Provision for Loan Losses 65 436 285
Noninterest Income 3 2 2
Noninterest Expense 771 896 942
Income Tax Benefit -- 271 100
Net Income 70 162 189

This press release includes forward-looking statements that involve inherent risks and uncertainties. AltaPacific Bank cautions readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include economic conditions and competition in the geographic and business areas in which AltaPacific Bank operates, inflation, fluctuations in interest rates, legislation and governmental regulation, credit quality, and competition affecting the bank’s businesses generally; the risk of natural disasters and future catastrophic events including terrorist related incidents; and other factors beyond AltaPacific Bank’s control. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.

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