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De Novo Bank Reports Continued Profitability

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^{Published in Business and Finance on Friday, January 30th 2009 at 14:39 GMT, Last Modified on 2009-01-30 14:41:20 by Market Wire}  

SANTA ROSA, Calif.--([ BUSINESS WIRE ])--Atlantic Pacific Bank (OTCBB:APFB) today announced that it has continued to remain profitable during the past two quarters as management reported net income of $61,000 for the quarter ending December 31, 2008. The de novo bank opened for business July 10, 2006.

Total assets were $54,810,000 at December 31, 2008 which represents an increase of 28.1% over December 31, 2007. At December 31, 2008, the Bank's net loans totaled $37,145,000 and deposits totaled $27,015,000 representing a year-to-date increase in net loans totaling 22.6% and an increase in deposits totaling 59.9%. The $61,000 net income for the fourth quarter of 2008 represents a $4,000 improvement over the third quarter net income of $57,000. For the year ending December 31, 2008, the bank reported a year-to-date loss of $215,000.

Charles O. Hall, President and Chief Executive Officer of Atlantic Pacific Bank stated, "it has been very exciting to see our bank achieve this rapid level of success, particularly during these troubled economic times. To become profitable in such a short period of time has been very rewarding. Our dedicated Board of Directors, management and entire staff have all been actively involved in allowing our bank to succeed so quickly." Furthermore, Mr. Hall reported, "Atlantic Pacific Bank continues to be well-capitalized with a total risk-based capital ratio in excess of 54%, which substantially exceeds the 10% regulatory requirement for a well-capitalized institution." The bank continues to be recognized as having the highest capital ratios of any of the banks operating in Sonoma County.

As a result of the bank's strong capital position, it has not applied to the Federal government for any TARP funds or other financial assistance from the Treasury Department. However, as a service to its deposit customers, the bank has elected to participate in the FDIC's Temporary Liquidity Guarantee Program which provides increased insurance coverage for certain types of deposits.

At December 31, 2008, the bank did have one construction loan totaling $1.2 million which had been placed on nonaccrual status. Chief Financial Officer, Allen R. Christenson, stated, "our bank continues to maintain a very conservative risk profile with regard to our lending programs. Given the state of the current economy, we are very pleased with the work done by our lending staff and the financial strength of our customers. With regard to our one nonaccrual loan, we believe we will be successful in recovering all of the unpaid principal and interest." As a reflection of the bank's conservative nature, as of December 31, 2008, the bank's Allowance for Loan Losses represented 1.95% of gross loans which substantially exceeds the statewide average of 1.43% as reported by the FDIC for commercial banks as of September 30, 2008.

The approval process for the previously announced change to the bank's name is ongoing. The bank's Chief Financial Officer, Allen R. Christenson, stated, "the legal and regulatory approval process is progressing and we are awaiting final approval of the new name from the U.S. Patent and Trademark Office. We are hopeful that the new name will be presented to our shareholders for approval at our annual shareholders meeting in April, 2009."

Atlantic Pacific Bank is the newest independent business bank headquartered in Sonoma County. The Bank is focused on meeting the specialized needs of small to medium-sized businesses and professionals. Atlantic Pacific Bank is located at 3725 Westwind Blvd., Suite 100, Santa Rosa, California and is near the Charles M. Schultz – Sonoma County Airport. For additional information, please contact us at (707) 236-1500 or online at [ www.apbconnect.com ].

The following is a summary of the bank's financial performance (unaudited) as of December 31, 2008:

This press release includes forward-looking statements that involve inherent risks and uncertainties.Atlantic Pacific Bank cautions readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements.These factors include economic conditions and competition in the geographic and business areas in which Atlantic Pacific Bank operates, inflation, fluctuations in interest rates, legislation and governmental regulation and other factors beyond Atlantic Pacific Bank's control.We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.