AltaPacific Bancorp Reports Earnings for First Quarter 2018

AltaPacific Bancorp ABNK, the parent company of AltaPacific Bank, today reported net income for the first quarter of 2018 totaling $1,049,000 or $0.17 per diluted share. The earnings level represents an increase of $482,000 (85.0%) over the same period last year.

Assets for the Company totaled $417,914,000 at March 31, 2018, representing an increase of $15.8 million (3.9%) over March 31, 2017 and a decrease of $0.7 million (0.2%) over December 31, 2017. At March 31, 2018, gross loans totaled $310,578,000 representing an increase of $45.7 million (17.3%) over March 31, 2017 and an increase of $14.9 million (5.0%) over December 31, 2017. Deposits totaled $335,883,000 at March 31, 2018, representing an increase of $26.2 million (8.5%) over March 31, 2017 and a $0.7 million (0.2%) increase over December 31, 2017. At March 31, 2018, the Allowance for Loan and Lease Losses totaled $3,826,000, representing 1.5% of Gross Loans originated, nonaccrual loans totaled $43,000 and no loans were past due in excess of 30 days and still accruing interest.

The Company's Share Repurchase Program, which was adopted in 2012, has resulted in the repurchase of 199,825 shares of Company stock at a total cost of $2,724,000, or $13.63 per share, during the three-month period ending March 31, 2018. During the twelve-month period ending March 31, 2018, the Company repurchased 460,233 shares of Company stock at a total cost of $5,714,000, or $12.42 per share. As of March 31, 2018, 6,027,762 shares of AltaPacific Bancorp stock were issued and outstanding.

"We have been very focused on the growth and expansion of our market presence in Southern California these past few months and have experienced a tremendous amount of success," reported Charles O. Hall, Chief Executive Officer. Continuing, Mr. Hall stated, "We continue to look for appropriate merger and acquisition candidates. While opportunities have become available, they did not meet our strategic objectives. In pursuing this area of growth, we will remain patient and disciplined."

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 additional banking offices in Covina, Ontario, Riverside, San Bernardino and Temecula, 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 March 31, 2018:

(Dollars in thousands)		March 31, 2017			December 31, 2017			March 31, 2018
Gross Loans		$	264,832		$	295,684		$	310,578
Allowance for Loan Losses			3,386			3,686			3,826
Net Loans			261,446			291,998			306,752
Total Assets			402,106			418,634			417,914
Total Deposits			309,660			335,147			335,883
Shareholders' Equity			57,794			58,028			56,166

(Dollars in thousands, except per share amounts)		Three Month Period Ended
		March 31, 2017			December 31, 2017			March 31, 2018
Interest Income		$	4,540		$	5,831		$	4,861
Interest Expense			399			451			429
Net Interest Income			4,141			5,380			4,432
Provision for Loan Losses			50			200			140
Noninterest Income			231			146			579
Noninterest Expense			3,321			3,501			3,405
Pretax Income			1,001			1,825			1,466
Income Tax Expense			434			1,232			417
Net Income			567			593			1,049
Return on Average Assets			0.59%			0.55%			1.04%
Return on Average Equity			3.94%			4.04%			7.34%
Efficiency Ratio			75.96%			63.36%			67.95%
EPS Basic		$	0.09		$	0.10		$	0.17
EPS Diluted		$	0.09		$	0.10		$	0.17
Book Value Per Common Share		$	8.90		$	9.34		$	9.32

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.

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