Alaska Pacific Bancshares (AKPB) 8-K Financial Statements and Exhibits

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): December 31, 2007

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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:

[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
	(17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
	(17 CFR 240.133-4(c))

Item 2.02 Results of Operations and Financial Condition

On March 19, 2008, Alaska Pacific Bancshares, Inc. issued its earnings release for the quarter ended December 31, 2007. A copy of the earnings release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(c)	Exhibits
	99.1 Press Release of Alaska Pacific Bancshares, Inc. March 19, 2008.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		ALASKA PACIFIC BANCSHARES, INC.
DATE: March 19, 2008	By:	/s/Julie M. Pierce
		Senior Vice President and
		Chief Financial Officer

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Exhibit 99.1

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News Release
For Immediate Release

ALASKA PACIFIC REPORTS
FOURTH QUARTER AND ANNUAL EARNINGS FOR 2007

JUNEAU, Alaska, March 19, 2008 -- Alaska Pacific Bancshares, Inc. (OTCBB: AKPB) (“Company”), the parent company of Alaska Pacific Bank, announced its fourth quarter and annual results for the periods ended December 31, 2007. Net income for the year ended December 31, 2007 was $922,000, or $1.40 per diluted share. This represents a 13.1% decrease compared with $1.1 million ($1.63 per diluted share) earned in 2006. For the fourth quarter, net income was $187,000, or $.28 per diluted share, a 54.3% decrease from $409,000 ($.63 per diluted share) in the fourth quarter of 2006.

Net interest income increased $551,000 (6.5%) to $9.1 million in 2007 compared to 2006, reflecting a 5.3% increase in average loans. The net interest margin on average earning assets was 5.32% for 2007 compared with 5.13% in 2006.

Loans (excluding loans held for sale) were $165.5 million at December 31, 2007, an increase of 2.9% from last quarter and 4.4% from a year ago, reflecting steady loan demand. Deposits at December 31, 2007 were $149.4 million, a $5.0 million (3.2%) decrease from last quarter, and a $4.2 million or 2.9% increase from a year ago. Loan growth during the fourth quarter of 2007 was funded by a $6.2 million increase in Federal Home Loan Bank advances.

Nonperforming loans at December 31, 2007 were $323,000 compared with $114,000 last quarter and zero a year ago.

Net loan chargeoffs for 2007 were $63,000 compared with $32,000 in 2006. The provision for loan losses decreased to $180,000 in 2007 from $250,000 in 2006, reflecting management’s assessment of risks in the loan portfolio.

Gains on sale of loans in 2007 increased to $311,000 compared with $255,000 in 2006 as a result of improved mortgage production and an increase in the portion sold in the secondary market.

Noninterest expense for 2007 was $8.7 million, a 13.2% increase from 2006, and the reason for the decline in net income. This increase was comprised of higher occupancy costs related to the amortization of leasehold improvement from the Nugget Office remodel, and higher compensation and benefit costs. In addition to annual salary increases, compensation and benefit costs increased as a result of the addition of retail staff positions, transitional staffing and recruitment expense, increased medical insurance costs, and the recording of stock option plan compensation expense in accordance with SFAS123R – “Accounting for Stock Based Compensation.”

As previously announced, the Company declared a regular quarterly dividend of $.10 per share that was paid on February 22, 2008, to shareholders of record as of February 11, 2008.

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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 and accounting changes, and other risks detailed in the Company's reports filed with the Securities and Exchange Commission.

Contact:           Julie M. Pierce		Craig E. Dahl
Senior Vice President and CFO	or	President and CEO
907-790-5135		907-790-5101

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Alaska Pacific Bancshares, Inc.
Financial Highlights (Unaudited)
Year and Fourth Quarter 2007
(dollars in thousands, except per-share amounts)
		Year Ended December 31,
		2007			2006
Condensed Income Statement:
Interest income	$	13,078		$	11,913
Interest expense		(3,996	)		(3,382	)
Net interest income		9,082			8,531
Provision for loan losses		(180	)		(250	)
Gain on sale of loans		311			255
Other noninterest income		1,015			1,047
Branch closure costs		-			(113	)
Other noninterest expense		(8,716	)		(7,701	)
Net income before income tax		1,512			1,769
Income tax expense		(590	)		(708	)
Net income	$	922		$	1,061
Earnings per share:
Basic	$	1.45		$	1.71
Diluted		1.40			1.63
Performance Ratios:
Return on average equity		5.09	%		6.23	%
Return on average assets		0.51			0.60
Yield on average earning assets		7.67			7.16
Cost of average interest-bearing liabilities		2.99			2.56
Interest rate spread		4.68			4.60
Net interest margin on:
Average earning assets		5.32			5.13
Average total assets		4.99			4.83
Efficiency ratio (a)		86.32			80.40
Average balances:
Loans	$	162,575		$	154,352
Earning assets		170,588			166,307
Assets		181,972			176,444
Interest-bearing deposits		118,369			118,153
Total deposits		144,555			143,055
Interest-bearing liabilities		133,769			131,882
Shareholders' equity		18,119			17,037
Average shares outstanding:
Basic		634,647			621,774
Diluted		661,026			649,952

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					Three Months Ended
		December 31,			September 30,			December 31,
		2007			2007			2006
Condensed Income Statement:		��
Interest income	$	3,285		$	3,353		$	3,227
Interest expense		(982	)		(992	)		(946	)
Net interest income		2,303			2,361			2,281
Provision for loan losses		(45	)		(45	)		(45	)
Gain on sale of loans		51			92			116
Other noninterest income		253			267			243
Noninterest expense		(2,236	)		(2,274	)		(1,913	)
Net income before income tax		326			401			682
Income tax expense		(139	)		(152	)		(273	)
Net income	$	187		$	249		$	409
Earnings per share:
Basic	$	.29		$	.39		$	.65
Diluted		.28			.38			.63
Performance Ratios:
Return on average equity		4.05	%		5.48	%		9.37	%
Return on average assets		0.41			0.54			0.91
Yield on average earning assets		7.60			7.76			7.65
Cost of average interest-bearing liabilities		2.94			3.01			2.83
Interest rate spread		4.66			4.75			4.82
Net interest margin on:
Average earning assets		5.33			5.46			5.41
Average total assets		5.00			5.10			5.08
Efficiency ratio (a)		87.48			86.53			75.79
Average balances:
Loans	$	163,965		$	164,932		$	154,876
Earning assets		172,825			172,915			168,738
Assets		184,397			185,297			179,637
Interest-bearing deposits		120,434			118,911			121,834
Total deposits		148,761			149,200			148,231
Interest-bearing liabilities		133,577			131,776			133,670
Shareholders' equity		18,473			18,173			17,464
Average shares outstanding:
Basic		639,397			633,697			626,170
Diluted		660,636			661,316			652,518

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		December 31,			September 30,			December 31,
		2007			2007			2006
Balance sheet data:
Total assets	$	187,482		$	185,220		$	178,923
Loans, before allowance		165,506			160,800			158,597
Loans held for sale		2,920			1,390			519
Investment securities		3,913			4,092			5,288
Total deposits		149,367			154,329			145,201
Federal Home Loan Bank advances		17,076			10,898			14,062
Shareholders' equity		18,669			18,278			17,705
Shares outstanding (b)		653,009			642,609			639,809
Book value per share	$	28.59		$	28.44		$	27.67
Asset quality:
Allowance for loan losses	$	1,783		$	1,734		$	1,666
Allowance as a percent of loans		1.08	%		1.08	%		1.05	%
Nonaccrual loans	$	323		$	114		$	-
Total nonperforming assets		323			114			-
Net chargeoffs (recoveries) for quarter		(3	)		49			(2	)
Net chargeoffs for year		63			66			32

(a)	Noninterest expense, excluding branch closure costs, divided by the sum of net interest income and noninterest income, excluding gains on sale of loans or securities.
(b)	Excludes only treasury stock.

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