AltaPacific Bancorp Reports Earnings for Third Quarter 2014 and Expansion of Share Repurchase Program

SANTA ROSA, Calif. – (BUSINESS WIRE) – October 22, 2014 - AltaPacific Bancorp (OTCBB: ABNK), the parent company of AltaPacific Bank, today reported year-to-date net income totaling $2,005,000, or $0.36 per diluted share, and quarterly net income totaling $834,000, or $0.15 per diluted share, for the period ending September 30, 2014, respectively. Following the close of business on May 2, 2014 the Company completed the merger with Mission Oaks Bancorp and during July, 2014, the Company completed the conversion of Mission Oaks’ data processing systems.

Assets for the Company totaled $352,444,000 at September 30, 2014, representing an increase of $4.6 million (1.3%) over June 30, 2014 and an increase of $113.5 million (47.5%) over December 31, 2013. At September 30, 2014, gross loans totaled $221,124,000 representing an increase of $14.9 million (7.2%) over June 30, 2014 and an increase of $77.9 million (54.4%) over December 31, 2013. Deposits totaled $286,107,000 at September 30, 2014, representing an increase of $6.3 million (2.2%) over June 30, 2014 and an increase of $117.1 million (69.3%) over December 31, 2013. At September 30, 2014, the Allowance for Loan and Lease Losses totaled $2,301,000, representing 1.5% of Gross Loans originated. The loans acquired through mergers and acquisitions are acquired at their fair market value. In accordance with generally accepted accounting principles, no allowance was provided for the acquired loans at September 30, 2014.

The Company’s Share Repurchase Program, which was adopted in 2012, has resulted in the repurchase and retirement of 401,308 shares of Company stock at an average cost of $9.06. During 2014, the Company repurchased and retired 214,000 shares at an average cost of $10.44. On September 2, 2014 the Company’s Board of Directors authorized an increase of $1 million to the existing Share Repurchase Program. The purchases are generally effected through open market purchases, although the Company does not rule out the possibility of unsolicited negotiated transactions or other types of repurchases. The timing, manner, price and amount of any repurchase will be determined by the Company in its discretion and are subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time without prior notice.

“It has been wonderful to see the continued growth and success of AltaPacific following the completion of our merger with Mission Oaks in May of this year,” reported Charles O. Hall, President and Chief Executive Officer. Continuing, Mr. Hall stated, “With our second merger completed, we are now ready and able to seek out additional growth opportunities while continuing to enhance our ability to serve the business needs of our existing customers.”

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, Temecula, Rancho Cucamonga, Covina and Fallbrook, 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, 2014:

(Dollars in thousands)  December 31, 2013 June 30, 2014 September 30, 2014
Gross Loans $ 143,232 $ 206,265 $ 221,124
Allowance for Loan Losses 2,070 2,181 2,301
Net Loans 141,162 204,084 218,823
Total Assets 238,900 347,816 352,444
Total Deposits 168,995 279,854 286,107
Shareholders’ Equity 47,983 48,852 48,008
  Three Month Period Ending Nine Month Period Ending
(Dollars in thousands,  
except per share amounts)
June 30, 2014 September 30, 2014 September 30, 2013 September 30, 2014
Interest Income $ 4,292 $ 4,657 $ 8,032 $ 11,999
Interest Expense 301 364 674 882
Net Interest Income 3,991 4,293 7,358 11,117
Provision for Loan Losses -- 100 100 195
Noninterest Income 280 524 346 915
Noninterest Expense 2,929 3,420 6,227 8,390
Pretax Income 1,342 1,297 1,377 3,447
Provision for Income Taxes 636 463 636 1,442
Net Income 706 834 741 2,005
         
Return on Average Assets 0.96% 1.13% 0.43% 0.85%
Return on Average Equity 5.83% 6.95% 2.09% 5.54%
Efficiency Ratio 68.58% 71.00% 80.83% 69.73%
EPS Basic $ 0.13 $ 0.15 $ 0.13 $ 0.36
EPS Diluted $ 0.13 $ 0.15 $ 0.13 $ 0.36
Book Value Per Common Share $ 8.92 $ 8.97 $ 8.49 $ 8.97

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.