AltaPacific Bancorp Announces Performance Results For Third Quarter 2013

AltaPacific Bancorp (OTCBB: ABNK), the parent company of AltaPacific Bank, today reported net income for the quarter totaling $344,000 and year-to-date net income totaling $741,000 for the period ending September 30, 2013, respectively.

Assets totaled $238,989,000 at September 30, 2013 representing an increase of 5.9% over June 30, 2013 and an increase of 10.5% over December 31, 2012. At September 30, 2013, gross loans totaled $135,858,000 representing a 5.6% increase over June 30, 2013 and a 37.5% increase over December 31, 2012. Deposits totaled $184,630,000 at September 30, 2013 representing a 7.5% increase over June 30, 2013 and a 14.0% increase over December 31, 2012.

At September 30, 2013, the Allowance for Loan and Lease Losses totaled $1,760,000, representing 1.6% of Gross Loans originated. At September 30, 2013, nonaccrual loans totaled $122,000 and there were no other loans past due in excess of 30 days. AltaPacific Bank’s Tier 1 Leverage Capital Ratio and Total Risk-Based Capital Ratio at September 30, 2013 totaled 19.1% and 21.9%, respectively and are among the highest of any commercial bank operating in the state of California.

The Company’s Share Repurchase Program, which was adopted in 2012, has resulted in the repurchase and retirement of 175,900 shares of Company stock at an average cost of $7.39. During 2013, the Company repurchased and retired 93,900 shares at an average cost of $8.16.

Charles O. Hall, President and Chief Executive Officer stated, “Our loan portfolio has increased by thirty-eight percent during the current year. We are hopeful the improvements seen in the market areas we serve will continue. Most of the recent lending activity has been generated from our Real Estate Lending Unit and our SBA unit is also experiencing increased activity.” Continuing, Mr. Hall stated, “These continue to be very challenging times for our business customers. We are grateful to be able to assist them with their business needs and look forward to continued improvement in the business climate. In addition, management and the Board of Directors remain focused on finding appropriate merger and acquisition candidates. Given the performance and financial capacity of the Company, we believe AltaPacific is well positioned for future growth opportunities.”

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, Rancho Cucamonga and Covina, California. The bank is focused on meeting the specialized needs of small to medium-sized businesses and professionals throughout California. The U.S. Small Business Administration has approved the bank as a PLP lender (Preferred Lender Program). PLP status is the highest lending designation granted by the SBA and it is only granted to its most experienced lenders. 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, 2013:
                 
(Dollars in thousands) December 31, 2012 June 30, 2013 September 30, 2013
Gross Loans $ 98,831 $ 128,692 $ 135,858
Allowance for Loan Losses 1,659 1,659 1,760
Net Loans 97,172 127,033 134,098
Total Assets 216,277 225,624 238,989
Total Deposits 161,940 171,712 184,630
Shareholders’ Equity 47,397 47,276 47,194
 
           

(Dollars in thousands,except per share amounts)
Three Month Period Ending Nine Month Period Ending

June 30,2013
 

September 30,2013

September 30,2012
 

September 30,2013
Interest Income $ 2,659 $ 2,871 $ 8,061 $ 8,032
Interest Expense 221 222 738 674
Net Interest Income 2,438 2,649 7,323 7,358
Provision for Loan Losses -- 100 125 100
Provision for OREO Losses -- -- 175 --
Bargain Purchase Gain -- -- 487 --
Noninterest Income 154 116 191 346
Noninterest Expense 2,126 2,050 5,936 6,227
Pretax Income 466 615 1,765 1,377
Provision for Income Taxes 228 271 560 636
Net Income 238 344 1,205 741
 
Return on Average Assets 0.43 % 0.59 % 0.84 % 0.43 %
Return on Average Equity 2.00 % 2.91 % 3.90 % 2.09 %
Efficiency Ratio 82.02 % 74.14 % 76.38 % 80.83 %
EPS Basic $ 0.05 $ 0.06 $ 0.22 $ 0.14
EPS Diluted $ 0.05 $ 0.06 $ 0.22 $ 0.14
Book Value Per Common Share $ 8.82 $ 8.91 $ 8.73 $ 8.91
 

Forward-Looking Statements

This press release may contain forward-looking statements about AltaPacific Bancorp and its subsidiaries, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond AltaPacific’s control — 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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