SECURITIES AND EXCHANGE COMMISSION | ||
WASHINGTON, D.C. 20549 | ||
FORM 8-K | ||
CURRENT REPORT | ||
PURSUANT TO SECTION 13 OR 15 (d) OF THE | ||
SECURITIES EXCHANGE ACT OF 1934 | ||
Date of Report (Date of earliest event reported): March 14, 2005 | ||
Alaska Pacific Bancshares, Inc. | ||
(Exact name of registrant as specified in its charter) | ||
Alaska | 0-26003 | 92-0167101 |
State or other jurisdiction | Commission | (I.R.S. Employer |
of incorporation | File Number | Identification No.) |
2094 Jordan Avenue, Juneau, Alaska | 99801 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant's telephone number (including area code) (907) 789-4844 | ||
Not Applicable | ||
(Former name or former address, if changed since last report) | ||
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
Exhibit
Item 9. Regulation FD Disclosure
On March 14, 2005, Alaska Pacific Bancshares, Inc. issued its earnings release for the quarter ended December 31, 2004. A copy of the earnings release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
The information being furnished under this "Item 9. Regulation FD Disclosure" is intended to be furnished under "Item 12. Disclosure of Results of Operations and Financial Condition." The information in this report shall not be treated as "filed" for purposes of the Securities Exchange Act of 1934 and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933 or the Securities Exchange Act of 1934.
ALASKA PACIFIC BANCSHARES, INC.
DATE: March 14, 2005 By: /s/Roger K. White
Roger K. White
Senior Vice President and
Chief Financial Officer
Exhibit 99.1
News Release
For Immediate Release
ALASKA PACIFIC ANNOUNCES RECORD RESULTS
FOR FOURTH QUARTER AND YEAR
JUNEAU, Alaska, March 14, 2005 -- Alaska Pacific Bancshares, Inc. (OTCBB: AKPB), the parent company of Alaska Pacific Bank, announced near-record net income for 2004 of $708,000, or $1.12 per diluted share, an increase of 41% over the $503,000 ($.81 per share) earned in 2003. Net income for the fourth quarter was $165,000, or $.26 per diluted share, compared with $176,000 ($.28 per share) in the third quarter and $117,000 ($.19 per share) in the fourth quarter of 2003. The 2004 increases over 2003 were primarily the result of improving net interest income, with annual increases of 13% for the year and $11% for the quarter.
Specifically, net interest income increased $869,000 (13%) for the year 2004 compared to 2003, as a result of growth in the loan portfolio and an improvement in the mix of both assets and liabilities. Average loans, including loans held for sale, increased more than 26% to $139.2 million, while investment securities and other lower-yielding assets decreased. On the liability side of the balance sheet, while total average deposits increased 5.3%, that increase was net of a 5.5% decrease in average certificates of deposit and a 9.6% increase in relatively lower-cost demand and savings accounts.
These factors are reflected in an improved net interest margin on total average assets, which increased to 4.54% for 2004 from 4.20% in 2003.
Loans (excluding loans held for sale) were $138.4 million at the end of 2004, an increase of 10.5% from a year ago and 1.3% from last quarter. Production of new loans remained strong throughout the year except for mortgage loans, for which production declined to $30.4 million from $48.7 million in 2003, a 37.6% decrease.
Total nonperforming assets at December 31, 2004 were $1.5 million compared with $616,000 at the end of 2003. This increase is primarily the result of a large restructured loan placed on nonaccrual status until a pattern of payment has been established.
Noninterest income, excluding gains on sale of mortgage loans, increased a modest $19,000 (1.8%) in 2004 compared with 2003. After several years of double-digit growth in service charge revenue, the rate of growth slowed in 2004, at least partly because of the introduction of free checking accounts.
Noninterest expense in 2004 increased $360,000 (5.1%) for the year and $187,000 (10.6%) for the fourth quarter, each in comparison with 2003. The growth in expense was the result of normal cost increases as well as gradual increases in staffing for commercial lending and business development.
As previously announced, the Company declared a regular quarterly dividend of $.07 per share, payable February 25, 2005, to shareholders of record as of February 14, 2005.
Forward-Looking Statements
Certain matters in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements due to a wide range of factors including, but not limited to, the general business environment, interest rates, the economy in Southeast Alaska, the real estate market, competitive conditions between banks and non-bank financial services providers, regulatory changes, and other risks detailed in the Company's reports filed with the Securities and Exchange Commission.
Contact: Roger K. White Craig E. Dahl
Senior Vice President and CFO or President and CEO
907-790-5135 907-790-5101
Alaska Pacific Bancshares, Inc.
Financial Highlights (Unaudited)
Year and Fourth Quarter 2004
(dollars in thousands, except per-share amounts)
Year Ended | ||
December 31, | December 31, | |
Condensed Income Statement: | ||
| Interest income | $9,201 | $8,628 |
| Interest expense | (1,625) | (1,921) |
| Net interest income | 7,576 | 6,707 |
| Provision for loan losses | (360) | (195) |
| Gain on sale of mortgage loans | 323 | 344 |
| Other noninterest income | 1,063 | 1,044 |
| Loss on sale of building | - | (85) |
| Other noninterest expense | (7,422) | (7,062) |
| Net income before income tax | 1,180 | 838 |
| Income tax (expense) benefit | (472) | (335) |
| Net income | $ 708 | $ 503 |
Earnings per share: | ||
| Basic | $1.18 | $.86 |
| Diluted | 1.12 | .81 |
Performance Ratios: | ||
| Return on average equity | 4.54% | 3.34% |
| Return on average assets | 0.42 | .32 |
| Yield on average earning assets | 5.88 | 5.79 |
| Cost of average interest-bearing liabilities | 1.28 | 1.55 |
| Interest rate spread | 4.60 | 4.25 |
| Net interest margin on: | ||
| Average earning assets | 4.84 | 4.50 |
| Average total assets | 4.54 | 4.20 |
| Efficiency ratio (a) | 85.91 | 91.11 |
Average balances: | ||
| Loans | $139,247 | $110,125 |
| Earning assets | 156,438 | 148,906 |
| Assets | 166,722 | 159,606 |
| Interest-bearing deposits | 117,354 | 114,580 |
| Total deposits | 139,727 | 132,710 |
| Interest-bearing liabilities | 126,583 | 124,037 |
| Shareholders' equity | 15,602 | 15,039 |
Average shares outstanding: | ||
| Basic | 597,845 | 584,940 |
| Diluted | 632,616 | 620,245 |
Three Months Ended | |||
December 31, | September 30, | December 31, | |
Condensed Income Statement: | |||
| Interest income | $2,362 | $2,357 | $2,169 |
| Interest expense | (417) | (409) | (417) |
| Net interest income | 1,945 | 1,948 | 1,752 |
| Provision for loan losses | (60) | (150) | (60) |
| Gain on sale of mortgage loans | 95 | 60 | 23 |
| Other noninterest income | 240 | 297 | 238 |
| Other noninterest expense | (1,945) | (1,862) | (1,758) |
| Net income before income tax | 275 | 293 | 195 |
| Income tax expense | (110) | (117) | (78) |
| Net income | $ 165 | $ 176 | $ 117 |
Earnings per share: | |||
| Basic | $ .27 | $ .29 | $ .20 |
| Diluted | .26 | .28 | .19 |
Performance Ratios: | |||
| Return on average equity | 4.16% | 4.50% | 3.08% |
| Return on average assets | 0.39 | 0.41 | 0.29 |
| Yield on average earning assets | 6.01 | 5.88 | 5.68 |
| Cost of average interest-bearing liabilities | 1.32 | 1.28 | 1.31 |
| Interest rate spread | 4.69 | 4.60 | 4.37 |
| Net interest margin on: | |||
| Average earning assets | 4.95 | 4.86 | 4.59 |
| Average total assets | 4.65 | 4.55 | 4.28 |
| Efficiency ratio (a) | 89.02 | 82.94 | 88.34 |
Average balances: | |||
| Loans | $144,250 | $144,341 | $121,042 |
| Earning assets | 157,267 | 160,395 | 152,832 |
| Assets | 167,406 | 171,287 | 163,671 |
| Interest-bearing deposits | 116,212 | 118,767 | 117,874 |
| Total deposits | 140,023 | 143,848 | 137,759 |
| Interest-bearing liabilities | 126,205 | 127,759 | 127,169 |
| Shareholders' equity | 15,882 | 15,654 | 15,179 |
Average shares outstanding: | |||
| Basic | 600,818 | 598,706 | 588,376 |
| Diluted | 633,988 | 631,042 | 623,864 |
December 31, | September 30, | December 31, | |
2004 | 2004 | 2003 | |
Balance sheet data: | |||
| Total assets | $163,786 | $177,450 | $164,559 |
| Loans, before allowance | 138,433 | 136,643 | 125,282 |
| Loans held for sale | 1,137 | 14,687 | 2,938 |
| Investment securities | 7,897 | 8,610 | 11,292 |
| Total deposits | 137,784 | 146,632 | 138,612 |
| Federal Home Loan Bank advances | 8,333 | 14,105 | 9,219 |
| Shareholders' equity | 16,005 | 15,761 | 15,257 |
Shares outstanding (b) | 627,754 | 627,754 | 626,132 |
Book value per share | $25.49 | $25.11 | $24.37 |
Asset quality: | |||
| Allowance for loan losses | $1,380 | $1,336 | $1,159 |
| Allowance as a percent of loans | 1.00% | 0.99% | 0.93% |
| Nonaccrual loans | $1,473 | $1,117 | $313 |
| Total nonperforming assets | 1,520 | 1,117 | 616 |
| Net chargeoffs (recoveries) for quarter | 16 | 98 | 2 |
| Net chargeoffs for year | 139 | 188 | |
