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): August 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 August 12, 2009, Alaska Pacific Bancshares, Inc. issued its earnings release for the quarter ended June 30, 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. August 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: August 12, 2009	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 BANCSHARES, INC. REPORTS
SECOND QUARTER EARNINGS FOR 2009

JUNEAU, Alaska, August 12, 2009 -- Alaska Pacific Bancshares, Inc. (OTCBB: AKPB) (“Company”), the parent company of Alaska Pacific Bank (“Bank”), today announced its second quarter results for the period ended June 30, 2009. Net income not including preferred stock dividend and discount accretion for the second quarter of 2009 was $140,000. After preferred stock dividend and discount accretion of $74,000, net income available to common shareholders for the second quarter of 2009 was $66,000, or $0.10 per diluted share. This compares to a net loss for the second quarter ended June 30, 2008 of $761,000, or $1.14 per diluted share. “While earnings are not at the level we would like them to be, we are still pleased with our second quarter results as we continue to work through the reduction of classified assets. The core business of the Bank remains sound and continues to perform as expected, but there will continue t o be downward pressure on earnings as we work through the resolution of these loans,” stated Craig E. Dahl, President & Chief Executive Officer.

Mortgage banking income decreased $9,000 (3.9%) for the second quarter of 2009 compared to the quarter ended March 31, 2009 and increased $137,000 (163.1%) from the quarter ended June 30, 2008. The increase in mortgage banking income during the second quarter of 2009 compared to 2008 was associated with low interest rate refinancing. Other noninterest income for the second quarter of 2009 increased $46,000 (17.3%) from March 31, 2009 and decreased $21,000 (6.31%) from the quarter ended June 30, 2008. The increase in other noninterest income over prior quarter is primarily attributable to document preparation fee income and overdraft fee income. The decrease in noninterest income over the comparable period in the prior year was due to non-recurring income of $56,000 recognized in prior year from the cash proceeds received on shares redeemed associated with the Company’s ownership in VISA and VISA’s initial public offering and bus iness combination.

Noninterest expense for the second quarter of 2009 increased $58,000 (2.6%) from March 31, 2009 and increased $41,000 (1.83%) from the quarter ended June 30, 2008. The increase in expense in the second quarter of 2009 is primarily related to an increase in FDIC assessments. During the quarter ended June 30, 2009 our FDIC assessment was $90,000 compared to $4,000 for the comparable period in 2008.

Provision for loan losses increased $30,000 for the quarter ended June 30, 2009 compared to the quarter ended March 31, 2009 and decreased $1.5 million compared to the quarter ended June 30, 2008. The allowance for loan losses at June 30, 2009 was $2.9 million, representing 1.7% of total loans outstanding. Total non-accrual loans were $7.2 million at June 30, 2009 compared with $5.8 million at March 31, 2009 and $5.6 million at June 30, 2008. In addition, the Bank’s real estate owned and repossessed assets were $69,000 at June 30, 2009 compared to $408,000 at March 31, 2009 and $556,000 at June 30, 2008. There was a $20,000 net loan recovery for the quarter ended June 30, 2009 compared to a $5,100 net loan recovery for thequarter ended March 31, 2009. There were no net loan charge offs or recoveries for the quarter ended June 30, 2008.

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Interest income decreased $92,000 (3.43%) to $2.6 million for the second quarter of 2009 compared to the first quarter of 2009, reflecting a 1.0% decrease in average loans in addition to a declining yield on loans and other earning assets. The net interest margin on average earning assets for the second quarter of 2009 was 4.74% in 2009 compared with 4.85% in the second quarter of 2008.

Loans (excluding loans held for sale) were $167.7 million at June 30, 2009, a decrease of $291,000, or 0.2% from March 31, 2009, and a decrease of $8.1 million, or 4.6% from June 30, 2008. Deposits at June 30, 2009, were $152.7 million, a $13.3 million (9.6%) increase from March 31, 2009 and a $7.1 million (4.5%) decrease from June 30, 2008.

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

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Alaska Pacific Bancshares, Inc.
Financial Highlights (Unaudited)
Second Quarter 2009
(dollars in thousands, except per-share amounts)
		June 30,			March 31,		June 30,
		2009			2009		2008
Condensed Statement of Operations:
Interest income	$    2,593				$    2,685		$    3,052
Interest expense			523		553		843
Net interest income		2,070			2,132		2,209
Provision for loan losses			90		60		1,610
Mortgage banking income			221		230		84
Other noninterest income			312		266		333
Noninterest expense		2,280			2,222		2,239
Net income (loss) before income tax			233		346		(1,223	)
Provision (benefit) for income tax			93		137		(462	)
Net income (loss)			140		209		(761	)
Preferred stock dividend and discount
accretion
Preferred stock dividend			59		37		-
Preferred stock discount accretion			15		9		-
Net income (loss) available to common
shareholders			$      66		$     163		$    (761	)
Earnings (loss) per share:
Basic		$    0.10			$    0.25		$    (1.17	)
Diluted		$    0.10			$    0.25		$    (1.14	)
Performance Ratios:
Return on average equity			2.63	%	4.50	%	(16.57	%)
Return on average assets			0.30		0.44		(1.57	)
Yield on average interest-earning assets			5.94		6.08		6.70
Cost of average interest-bearing			1.55		1.56
liabilities							2.33
Interest rate spread			4.39		4.52		4.36
Net interest margin on:
Average interest-earning assets			4.74		4.83		4.85
Average total assets			4.45		4.52		4.56
Efficiency ratio (a)			95.72		92.66		88.08
Average balances:
Loans		$   168,908			$  170,605		$ 175,819
Interest-earning assets			174,711		176,533		182,334
Assets			186,013		188,809		193,724
Interest-bearing deposits			117,823		126,493		129,566
Total deposits			143,390		151,260		154,568
Interest-bearing liabilities			135,306		141,373		144,559
Shareholders' equity			21,257		18,577		18,373
Average shares outstanding:
Basic			654,486		654,486		650,428
Diluted			654,486		654,486		666,726

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		June 30,		March 31,		June 30,
		2009		2009		2008
Balance sheet data:
Total assets	$  187,449			$   185,572		$   196,338
Loans, before allowance		167,694		167,985		175,767
Loans held for sale		793		937		3,369
Investment securities		2,883		3,118		3,439
Total deposits		152,715		139,376		159,853
Federal Home Loan Bank advances		10,177		22,348		14,862
Shareholders' equity		21,304		21,210		17,950
Shares outstanding (b)		654,486		654,486		654,486
Book value per share		$     25.25		$     25.10		$     27.43
Asset quality:
Allowance for loan losses		$     2,864		$    2,753		$    3,564
Allowance as a percent of loans		1.71	%	1.64	%	2.03	%
Nonaccrual loans		$     7,170		$    5,833		$    5,575
Total nonperforming assets		7,239		6,241		6,131
Impaired loans		15,257		13,792		6,227
Estimated specific reserves for impairment		1,614		1,080		2,365
Net charge offs (recoveries) for quarter
		(20	)	(5	)	--
Net charge offs (recoveries) YTD		(25	)	(5	)	(1	)
Real estate owned and repossessed assets
		69		408		556

(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.

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