AltaPacific Bancorp Announces Shareholder Approval of Planned Merger and 2011 Year End Results

SANTA ROSA, Calif.–(EON: Enhanced Online News)–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.

“We look forward to the growth and expansion opportunities created
through the combination of these two quality institutions”

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.