AltaPacific Bancorp Announces Shareholder Approval Of Planned Merger And 2011 Year End Results

AltaPacific Bancorp (OTCBB:ABNK), the parent company of AltaPacific Bank, today announced the receipt of shareholder approval for the planned merger of Stellar Business Bank with and into AltaPacific Bank. The shareholders of AltaPacific Bancorp approved the merger at a special meeting held on Wednesday February 1 st and Stellar’s shareholders approved the merger at a special meeting held yesterday. The merger has been approved by all of the appropriate government authorities and regulatory agencies and is expected to close at 5:01 p.m. on Friday February 17, 2012.

Under the terms of the merger agreement, shareholders of Stellar Business Bank will receive 0.8443 shares of AltaPacific Bancorp stock in exchange for each share of Stellar Business Bank common stock. The combined companies will have assets in excess of $202 million and equity capital in excess of $43 million.

“We look forward to the growth and expansion opportunities created through the combination of these two quality institutions,” said Tim Jorstad, Chairman of the Board of AltaPacific Bancorp. “With the completion of this merger, we have strengthened our leadership team and have been able to combine a group of talented and seasoned business professionals. It is exciting to see all of us work together in building a stronger organization that is committed to growing and building shareholder value and serving the needs of business professionals.”

AltaPacific Bancorp also announced earnings of $304,000 for the year ended December 31, 2011. In addition, the Company reported total asset growth of $35.5 million, or 44.5% during the year resulting in year end assets of $115.3 million. Furthermore, for the year ended December 31, 2011, the Company reported total loans of $59.9 million and deposits of $76.4 million, representing a decrease of 2.7% in total loans and an increase of 62.1% in total deposits, respectively.

“We continue to be successful in growing the Company during these tough economic times,” reported Charles O. Hall, the Company’s President and Chief Executive Officer. “To be able to sustain our profitability during this economic climate has been a tremendous achievement. Our earnings success is particularly meaningful as we have incurred substantial costs with the opening of the new branch in Rancho Cucamonga in addition to the non-recurring expenses associated with the Stellar Business Bank merger. While we recognize these events as great investments in our future, they have impacted our short term profitability.”

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 December 31, 2011:
(Dollars in thousands)    

December 31, 2010
   

September 30, 2011
   

December 31, 2011
Gross Loans $ 61,555 $ 56,720 $ 59,874
Allowance for Loan Losses

1,423
1,423 1,300
Net Loans 60,132 55,297 58,574
Total Deposits 47,139 80,647 76,400
Total Assets 79,797 113,245 115,319
Shareholders’ Equity 27,050 26,896 26,334
 
(Dollars in thousands)     Three Month Period Ended     Twelve Month Period Ended

September 30, 2011
   

December 31, 2011

December 31, 2010
   

December 31, 2011
Interest Income $ 1,462 $ 1,560 $ 5,609 $ 5,668
Interest Expense 133 159 508 516
Net Interest Income 1,329 1,401 5,101 5,152
Provision for Loan Losses - (123 ) 785 (123 )
Noninterest Income 16 (72 ) 11 (47 )
Noninterest Expense 1,202 1,248 3,835 4,562
Pretax Income 143 204 491 666
Income Tax (Benefit) Expense 67 149 (410 ) 362
Net Income 76 55 902 304
 

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.

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