Alaska Pacific Bancshares (AKPB) 8-K Results of Operations and Financial Condition

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): May 12, 2009

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 May 12, 2009, Alaska Pacific Bancshares, Inc. issued its earnings release for the quarter ended March 31, 2009. 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. May 12, 2009.

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: May 12, 2009	By:	/s/Julie M. Pierce
		Senior Vice President and
		Chief Financial Officer

3

Exhibit 99.1

4

News Release
For Immediate Release

ALASKA PACIFIC BANCSHARES, INC. REPORTS
FIRST QUARTER EARNINGS FOR 2009

JUNEAU, Alaska, May 12, 2009 -- Alaska Pacific Bancshares, Inc. (OTCBB: AKPB) (“Company”), the parent company of Alaska Pacific Bank (“Bank”), today announced its first quarter results for the period ended March 31, 2009. Net income not including preferred stock dividend and discount accretion for the first quarter of 2009 was $209,000. After preferred stock dividend and discount accretion of $46,000, net income available to common shareholders for the first quarter of 2009 was $163,000, or $0.25 per diluted share. Net income for the first quarter ended March 31, 2008 was $154,000, or $0.23 per diluted share. “We are pleased to see our net income, not including preferred stock dividend and discount accretion, for 2009 at 138% of first quarter last year, with our mortgage banking activities benefiting from the current interest rate environment,” stated Craig E. Dahl, President & Chief Executive Officer. &# 147;While we are carefully watching overall market conditions it is important to demonstrate that the core business of the Bank remains sound.”

Mortgage banking income increased $190,000 (475.0%) for the first quarter of 2009 compared to the quarter ended December 31, 2008 and increased $149,000 (184.0%) from the quarter ended March 31, 2008. The increase in mortgage banking income during the first quarter of 2009 was associated with lower interest rates. Other noninterest income for the first quarter of 2009 increased $32,000 (13.7%) from December 31, 2008 and increased $10,000 (3.9%) from the quarter ended March 31, 2008. Noninterest expense for the first quarter of 2009 increased $19,000 (0.9%) from December 31, 2008 and increased $107,000 (5.1%) from the quarter ended March 31, 2008. The increase in expense in the first quarter of 2009 is primarily related to an increase in professional service fees associated with impaired loans, an increase in repossessed assets expense, and an increase in FDIC assessments.

Provision for loan losses decreased $1.8 million for the quarter ended March 31, 2009 compared to the quarter ended December 31, 2008 and decreased $110,000 compared to the quarter ended March 31, 2008. The allowance for loan losses at March 31, 2009 was $2.8 million, representing 1.64% of total loans outstanding. Total non accrual loans were $5.8 million at March 31, 2009 compared with $6.1 million at December 31, 2008 and $3.4 million at March 31, 2008. In addition, the Bank’s real estate owned and repossessed assets were $408,000 at March 31, 2009 and December 31, 2008 compared to zero at March 31, 2008. There was a $5,100 net loan recovery for the quarter ended March 31, 2009 compared to a $3.9 million net loan charge off for the quarter ended December 31, 2008 and $1,000 net loan recovery for the quarter ended March 31, 2008.

Interest income decreased $485,000 (15.3%) to $2.7 million for the first quarter of 2009 compared to the first quarter of 2008, reflecting a 1.0% increase in average loans offset with a declining yield on loans and other earning assets. The net interest margin on average earning assets for the first quarter was 4.83% in 2009 compared with 5.00% in the first quarter of 2008.

5

Loans (excluding loans held for sale) were $168.0 million at March 31, 2009, a decrease of $1.0 million, or 0.6% from December 31, 2008, and a decrease of $1.0 million, or 0.6% from March 31, 2008. Deposits at March 31, 2009, were $139.4 million, a $23.0 million (14.1%) decrease from December 31, 2008 and a $17.1 million (10.9%) decrease from March 31, 2008. The decline in certificates of deposit (CDs) in the first quarter of 2009 is attributable to a decline in deposits from a public entity under a CD program for qualified Alaskan financial institutions. The decline in deposits under this program was due to a change in the index rate required under the program guidelines.

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 as a result of a wide variety or range of factors including, but not limited to, the credit risk of lending activities, including changes in the level and trend of loan delinquencies and write-offs; results o f examinations by our banking regulators including the possibility that any such regulatory authority may, among other things, require us to increase our reserve for loan losses or write-down assets; interest rate fluctuations; economic conditions in the Company’s primary market area and other market areas where the collateral for our loans is located; demand for residential, commercial real estate, consumer, and other types of loans; success of new products; competitive conditions between banks and non-bank financial service providers; regulatory and accounting changes; technological factors affecting operations; pricing of products and services; and other risks detailed in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2008. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company undertak es no responsibility to update or revise any forward-looking statement.

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

6

Alaska Pacific Bancshares, Inc.
Financial Highlights (Unaudited)
First Quarter 2009
(dollars in thousands, except per-share amounts)
					Three Months Ended
		March 31,			December 31,			March 31,
		2009			2008			2008
Condensed Statement of Operations:
Interest income	$	2,685		$	2,789		$	3,170
Interest expense		553			705			969
Net interest income		2,132			2,084			2,201
Provision for loan losses		60			1,828			170
Mortgage banking income		230			40			81
Other noninterest income		266			234			256
Noninterest expense		2,222			2,203			2,115
Net income (loss) before income tax		346			(1,673	)		253
Provision (benefit) for income tax		137			(634	)		99
Net income (loss)		209			(1,039	)		154
Preferred stock dividend and discount
accretion
Preferred stock dividend		37			-			-
Preferred stock discount accretion		9			-			-
Net income (loss) available to common
shareholders	$	163		$	(1,039	)	$	154
Earnings (loss) per share:
Basic	$	0.25		$	(1.59	)	$	0.24
Diluted	$	0.25		$	(1.59	)		0.23
Performance Ratios:
Return on average equity		4.50	%		(24.80	%)		3.29	%
Return on average assets		0.44			(2.10	)		0.33
Yield on average interest-earning assets		6.08			5.91			7.20
Cost of average interest-bearing liabilities		1.56			1.92			2.78
Interest rate spread		4.52			3.99			4.42
Net interest margin on:
Average interest-earning assets		4.83			4.41			5.00
Average total assets		4.52			4.21			4.70
Efficiency ratio (a)		92.66			95.04			86.08
Average balances:
Loans	$	170,605		$	175,203		$	168,925
Interest-earning assets		176,533			188,923			176,034
Assets		188,809			198,234			187,485
Interest-bearing deposits		126,493			136,820			118,429
Total deposits		151,260			165,673			142,949
Interest-bearing liabilities		141,373			147,163			139,497
Shareholders' equity		18,577			16,759			18,713
Average shares outstanding:
Basic		654,486			654,486			649,690
Diluted		654,486			654,486			666,347

7

		March 31,			December 31,			March 31,
		2009			2008			2008
Balance sheet data:
Total assets	$	185,572		$	190,851		$	189,604
Loans, before allowance		167,985			168,982			169,084
Loans held for sale		937			2,586			3,269
Investment securities		3,118			3,243			3,777
Total deposits		139,376			162,175			156,458
Federal Home Loan Bank advances		22,348			10,320			11,834
Shareholders' equity		21,210			16,283			18,732
Shares outstanding (b)		654,486			654,486			654,486
Book value per share	$	31.89		$	24.88		$	28.72
Asset quality:
Allowance for loan losses	$	2,753		$	2,688		$	1,954
Allowance as a percent of loans		1.64	%		1.59	%		1.16	%
Nonaccrual loans	$	5,833		$	6,071		$	3,378
Total nonperforming assets		6,241			6,479			3,378
Impaired loans		13,792			10,685			6,513
Loan impairments		1,080			875			900
Net charge offs (recoveries) for quarter		(5,100	)		3,886			(1	)
Net charge offs YTD		(5,100	)		4,129			(1	)
Repossessed assets		408			408			-

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

8