SANTA ROSA — Loans, deposits and income grew for AltaPacific Bank from the first quarter of 2013 to the second, though money set aside as a reserve for possible acquisitions contributed to a decline in net income compared to the second quarter last year.
The Santa Rosa-based bank’s parent company, AltaPacific Bancorp (OTCBB: ABNK), on Tuesday announced net income of $238,000 for the quarter ended June 30. That income was 20.7 percent less than the same three-month period last year, but up 49.7 percent from the prior quarter.
“We’re establishing a reserve for a possible transaction,” said Allen Christenson, chief financial officer, while noting no specific acquisition on the horizon. The bank marked the one-year anniversary of its acquisition of Covina-based Stellar Business Bank this February, a move that about doubled AltaPacific’s assets.
Noninterest costs for the bank, totaling $4.2 million for the first six months of 2013 and including that reserve, increased by a comparable 10.6 percent.
Interest income of $5.2 million was up 4.1 percent comparing the two six-month periods, and loan volume increased 30.2 percent over the past six months, to $128.7 million. AltaPacific announced an annualized return on assets of 43 basis points for the quarter, compared to 56 basis points during the same quarter last year and 29 basis points as of March 31.
“Our loan portfolio has increased by $30 million over the past six months,” said Charles Hall, president and chief executive, in the announcement. “We are pleased to be in a position to assist our loan customers with their borrowing needs and look forward to continued growth in the future.”
Income was equivalent to 5 cents per diluted share, equivalent with the prior quarter.
The allowance for loan losses was $1.7 million, representing 1.7 percent of gross loans originated. At the end of the second quarter last year, the allowance represented 1.5 percent. Nonaccrual loans totaled $124,000, equivalent to the same period last year.
Deposits totaled $171.7 million as of June 30, up 9.9 percent from the same period last year. Total assets were $225.6 million, having increased 4.3 percent since the end of last year.
The price of AltaPacific stock dipped 4.9 percent, or 40 cents a share, to close at $7.80 Tuesday.
Copyright © 1988–2015 North Bay Business Journal
View the policy for linking to website content.