For Immediate Release
ALASKA PACIFIC BANCSHARES, INC. REPORTS
THIRD QUARTER RESULTS OF OPERATIONS FOR 2012
JUNEAU, Alaska, November 14, 2012 -- Alaska Pacific Bancshares, Inc. (OTCBB: AKPB) (“Company”), the parent company of Alaska Pacific Bank (“Bank”), today reported net income available to common shareholders for the third quarter ended September 30, 2012 of $45,000 or $0.06 per diluted common share, respectively as compared to $287,000 or $0.39 per diluted common share, respectively for the same period in 2011.
Net (loss) available to common shareholders for the nine months ended September 30, 2012, was $(78,000), or $(0.12) per diluted common share, compared to a net income of $474,000, or $0.65 per diluted common share for the comparable period in 2011.
“Performance for the third quarter was marginally positive, with a significant portion reflecting the adjustments to the Bank’s valuation of mortgage servicing rights as the primary contributor in reducing the quarter’s performance” stated Craig Dahl, President and CEO. “We are seeing our loan demand, in commercial, construction and mortgage loans hitting our target levels that we had albeit later in the year than originally projected. While the quarter’s performance was less than expected, overall I am confident in the Bank’s progress and direction.”
The provision for loan losses was $60,000 for both the quarter ended September 30, 2012 and September 30, 2011. The allowance for loan losses at September 30, 2012 was $1.9 million, representing 1.23% of total loans outstanding. Total non-accrual loans were $5.6 million at September 30, 2012 compared with $5.8 million at June 30, 2012 and $1.8 million at September 30, 2011. The increase at September 30, 2012 compared to the prior year is due primarily to two commercial nonresidential loans totaling $2.5 million to the same borrower that were troubled debt restructurings deemed to be impaired and were placed on nonaccrual status due to a decline in the borrowers’ net worth and global cash flow. In addition, the Bank’s real estate owned and repossessed assets were $390,000 at September 30, 2012 compared with $258,000 at June 30, 2012 and $1.4 million at September 30, 2011. There was $49,000 in net loan charge offs for the quarter ended September 30, 2012 compared with $165,000 of net loan charge offs for the quarter ended June 30, 2012. There were no loan charge offs for the quarter ended September 30, 2011.
Net interest income was $2.0 million for both the quarter ended September 30, 2012 and September 30, 2011. Net interest margin on average interest-earning assets for the third quarter of 2012 was 5.03% compared with 5.05% for the third quarter of 2011.
Loans (excluding loans held for sale and before the allowance for loan losses) were $150.5 million at September 30, 2012, a decrease of $1.2 million, or 0.8% from $151.7 million at June 30, 2012, and an increase of $5.0 million, or 3.4% from $145.5 million at September 30, 2011.
The following information was filed by Alaska Pacific Bancshares Inc (AKPB) on Wednesday, November 14, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.