AltaPacific Bancorp Announces 2013 Year End Performance Results and Declares 5% Stock Dividend

SANTA ROSA, Calif. – (BUSINESS WIRE) – January 27, 2014 - AltaPacific Bancorp (OTCBB: ABNK), the parent company of AltaPacific Bank, today reported year-to-date net income totaling $1,437,000 and quarterly net income totaling $696,000 for the period ending December 31, 2013, respectively. The Company also reported that the Board of Directors recently approved the payment of a 5% stock dividend per common share payable on February 21, 2014 to shareholders of record as of February 7, 2014.

Assets totaled $238,900,000 at December 31, 2013, representing a decrease of $89,000 (0.0%) over September 30, 2013 and an increase of $22.6 million (10.5%) over December 31, 2012. At December 31, 2013, gross loans totaled $143,232,000 representing an increase of $7.4 million (5.4%) over September 30, 2013 and an increase of $44.4 million (44.9%) over December 31, 2012. Deposits totaled $168,995,000 at December 31, 2013 representing a decrease of $15.6 million (8.5%) over September 30, 2013 and a $7.1 million (4.4%) increase over December 31, 2012.

At December 31, 2013, the Allowance for Loan and Lease Losses totaled $2,070,000, representing 1.7% of Gross Loans originated. At December 31, 2013, nonaccrual loans totaled $110,000 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 December 31, 2013 totaled 18.6% and 22.0%, 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 187,309 shares of Company stock at an average cost of $7.49. During 2013, the Company repurchased and retired 105,309 shares at an average cost of $8.25.

“The Company experienced very solid loan growth this past year.” reported Charles O. Hall, President and Chief Executive Officer. Continuing, Mr. Hall stated “We continue to see signs of improvement in the economy and that has certainly helped our business customers. Fortunately, the bank has remained in a strong financial position which allows us to help these valued customers. With regard to merger opportunities, we have worked hard to sustain AltaPacific’s asset quality and high capital levels and believe these qualities will aid us as we look for appropriate merger and acquisition candidates.”

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 December 31, 2013:

(Dollars in thousands) December 31,  2012 September 30, 2013 December 31, 2013
Gross Loans $ 98,831 $ 135,858 $ 143,232
Allowance for Loan Losses 1,659 1,760 2,070
Net Loans 97,172 134,098 141,162
Total Assets 216,277 238,989 238,900
Total Deposits 161,940 184,630 168,995
Shareholders’ Equity 47,397 47,194 47,983
  Three Month Period Ending Year-to-Date
(Dollars in thousands, except per share amounts)  September 30, 2013 December 31, 2013 December 31, 2012 December 31, 2013
Interest Income $ 2,871 $ 3,108 $ 10,760 $ 11,140
Interest Expense 222 231 993 905
Net Interest Income 2,649 2,877 9,767 10,235
Provision for Loan Losses 100 310 300 410
Other-Than-Temporary Impairment Loss  -- -- 320 --
Provision for OREO Losses -- -- 175 --
Bargain Purchase Gain -- -- 886 --
Noninterest Income 116 82 285 428
Noninterest Expense  2,050 1,674 7,738 7,901
Pretax Income 615 975 2,405 2,352
Provision for Income Taxes 271 279 624 915
Net Income 344 696 1,781 1,437
         
Return on Average Assets 0.59% 1.17% 1.07% 0.63%
Return on Average Equity 2.91% 5.85% 4.83% 3.01%
Efficiency Ratio 74.14% 56.57% 68.15% 74.10%
EPS Basic $ 0.06 $ 0.13 $ 0.33 $ 0.27
EPS Diluted $ 0.06 $ 0.13 $ 0.33 $ 0.27
Book Value Per Common Share $ 8.91 $ 9.08 $ 8.79 $ 9.08

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.