AltaPacific Bancorp Announces Performance Results For Third Quarter 2011

AltaPacific Bancorp (OTCBB: ABNK), the parent company of AltaPacific Bank, today reported net income for the quarter totaling $76,000 and year-to-date net income totaling $249,000 for the period ending September 30, 2011, respectively.

Assets totaled $113,245,000 at September 30, 2011, representing an increase of 22.0% over June 30, 2011 and an increase of 41.9% over December 31, 2010. At September 30, 2011, the bank’s net loans totaled $55,297,000 representing a 2.6% increase over June 30, 2011 and an 8.0% decrease over December 31, 2010. Deposits totaled $80,647,000 at September 30, 2011 representing a 34.3% increase over June 30, 2011 and a 71.1% increase over December 31, 2010. Increases in deposits resulted principally from growth in core deposits as Certificates of Deposit decreased 12.4% since June 30, 2011 and decreased 6.7% since December 31, 2010.

At September 30, 2011, the company’s Allowance for Loan and Lease Losses totaled $1,423,000 and represented 2.51% of Gross Loans. At September 30, 2011, all of the company’s loans were performing and there were no loans past due in excess of 30 days. In addition, the company has not experienced any loan charge-offs during the year. The Total Risk-Based Capital Ratio for AltaPacific Bank totaled 30.67% at September 30, 2011, which substantially exceeds the 10% minimum ratio for a well capitalized institution. The bank’s regulatory capital ratios have continued to be among the highest of any commercial bank operating in California.

“The recent growth in deposits is directly related to the addition of our new branch in Rancho Cucamonga. At the end of September, the branch’s deposits totaled $20 million, and accounted for 80% of the growth in the Company’s deposits this past quarter,” reported Allen R. Christenson, the Company’s Chief Financial Officer. Continuing, Mr. Christenson stated, “Loan production continues to be a challenge during this economic environment. We have continually maintained a disciplined and conservative credit culture and find that our borrowers have remained cautious while looking for appropriate business opportunities.”

Charles O. Hall, the company’s President and Chief Executive Officer stated, “The new branch in Rancho Cucamonga has experienced tremendous growth this past quarter. In our ongoing discussions with Stellar Business Bank we are all very excited with the growth potential that will be created in the Southern California market area following the completion of the merger, which we believe will occur before year end.” Mr. Hall also stated, “Working through the merger process with the skilled team of bankers at Stellar Business Bank has assured us that putting these two quality banks together will benefit all parties involved.”

AltaPacific Bancorp is the parent company for AltaPacific Bank. The company’s stock trades over the counter under the symbol ABNK. AltaPacific Bank is an independent business bank headquartered in Santa Rosa, California and has offices in Santa Rosa and Rancho Cucamonga, California. The bank is focused on meeting the specialized needs of small to medium-sized businesses and professionals throughout California. For additional information, please contact us at (707) 236-1500 or online at www.apbconnect.com.

The following is a summary of the company’s financial performance (unaudited) as of September 30, 2011:
           
(Dollars in thousands) December 31,

2010
June 30,

2011
September 30,

2011
Gross Loans $ 61,555 $ 55,317 $ 56,720
Allowance for Loan Losses 1,423 1,423 1,423
Net Loans 60,132 53,894 55,297
Total Deposits 47,139 60,040 80,647
Total Assets 79,797 92,850 113,245
Shareholders’ Equity 27,050 27,174 26,896
           
(Dollars in thousands) Three Month Period Ending Nine Month Period Ending
June 30,

2011
    September 30,

2011
September 30,

2010
    September 30,

2011
Interest Income $ 1,300 $ 1,462 $ 4,274 $ 4,108
Interest Expense 108 133 393 357
Net Interest Income 1,192 1,329 3,881 3,751
Provision for Loan Losses -- -- 685 --
Provision for OREO Losses (25 ) -- -- 50
Noninterest Income 5 16 8 25
Noninterest Expense 1,105 1,202 2,846 3,264
Pretax Income 117 143 358 462
Provision for Income Taxes 57 67 (300 ) 213
Net Income 60 76 658 249

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of AltaPacific Bancorp and its subsidiary AltaPacific Bank and on information available to management at the time these statements were made. There are a number of factors, many of which are beyond AltaPacific's control, which could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which AltaPacific is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than AltaPacific; and (7) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, AltaPacific does not undertake to update forward-looking statements to reflect subsequent circumstances or events.

Copyright Business Wire 2010

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