Alaska Pacific Announces Record Results for Fourth Quarter and Year.Business Editors JUNEAU Juneau (j  `nō), city (1990 pop. 26,751), state capital, SE Alaska, in the Alaska Panhandle; settled by gold miners 1880, inc. 1900. , Alaska--(BUSINESS WIRE)--Feb. 27, 2004Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States Pacific Bancshares, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AKPB), the parent company of Alaska Pacific Bank, announced net income of $117,000, or $.19 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the fourth quarter of 2003, and $503,000, or $.81 per diluted share, for the year ended December December: see month. 31, 2003. Net income for the fourth quarter and the year are not comparable with the same periods in 2002 due to a change in the Company's accounting for income tax. While 2003 net income includes a normal income tax provision, 2002 net income for both the fourth quarter and the year reflected the recognition of a net tax benefit of $592,000. For several years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company had no income tax provision due to net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. carried forward from prior years. Because of continuing profitability, however, management was able to conclude that the benefit of remaining net operating losses at December 31, 2002, were likely to be fully realized, resulting in full recognition of net deferred tax assets in the financial statements at that date. Also affecting comparability of income, 2003 includes a first-quarter net loss of $85,000 on the sale of its building in Ketchikan Ketchikan (kĕ`chĭkăn'), city (1990 pop. 8,263), SE Alaska, a port of entry on Revillagigedo Island in the Alexander Archipelago. . Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income for the fourth quarter was $195,000 ($.31 per share) in 2003, compared with $380,000 ($.63 per share) in 2002. For the entire year, pre-tax income, excluding loss on sale of building, was $923,000 ($1.49 per share) in 2003, compared with $1,185,000 ($1.99 per share) in 2002. The $185,000 year-to-year decline in fourth quarter pre-tax income was primarily due to lower gains on sale of mortgage loans, which were just $23,000 in 2003 compared with $197,000 in 2002. For the year, the $262,000 (22%) decline was primarily due to higher expenses and a lower net interest margin, partially offset by increased noninterest income and a lower provision for loan losses. Net interest income for the fourth quarter increased $38,000 (2.2%) in 2003 compared with 2002. This small increase was the result of higher average loans and other earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin offset by a lower net interest margin on earning assets, which declined to 4.59% from 4.82%. For the entire year, net interest income decreased $155,000 (2.3%) in 2003 compared with 2002, as a result of both lower average earning assets and a lower net interest margin, which declined to 4.50% from 4.97%. Loans (excluding loans held for sale) decreased during the first quarter of 2003 from $107.3 million at December 31, 2002, to $103.6 million at March 31, 2003, and then increased to a record $125.3 million at December 31, 2003. Production of new loans of all types remained strong throughout the year, but new mortgage loans were sold into the secondary market during the first few months of the year. In the low interest rate environment, prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. and refinancing Refinancing An extension and/or increase in amount of existing debt. of loans -- commercial as well as residential -- accelerated the decline in average yield on the loan portfolio. The yield decline in 2003 was not as rapid as it was in 2002 but, unlike 2002, it could not be matched with a corresponding decrease in the rates paid on deposits, which were already at historically low rates when 2003 began. This "squeeze Squeeze 1. In financial terms, a period of time when borrowing is difficult. 2. In general business terms, times when increasing costs cannot be passed onto consumers. The decrease in profits is said to be caused by a "squeeze" on profit margins. " in margin was an important factor leading to the decline in net interest income in 2003, and we may not see margins fully recover for several more quarters. Total nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. in fourth quarter 2003 of $616,000 is a significant decrease from $1,966,000 at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2002. This decrease is the result of the payoffs and satisfactory resolution of three nonperforming loans. Noninterest income, excluding gains on sale of mortgage loans, increased $101,000 (10.7%) in 2003 compared with 2002, despite a small decrease of $12,000 (4.8%) in the fourth quarter of 2003 compared with the same quarter in 2002. The overall increase was primarily due to an increasing customer base, especially small businesses. Noninterest expense in 2003 increased $483,000 (7.3%) for the year and $52,000 (3.0%) for the fourth quarter, each in comparison with the corresponding periods in 2002. The growth in expense was the result of normal cost increases as well as gradual The Gradual (Latin: graduale, sometimes called the Grail) is a chant in the extraordinary form of the Roman Catholic Mass, sung after the reading or singing of the Epistle and before the Alleluia, or, during penitential seasons, before the Tract. increases in staffing for commercial lending and business development. Total assets increased 6.7% to $164.6 million at the end of 2003, compared with $154.4 million at the end of 2002. As previously announced, the Company declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a regular quarterly dividend of $.07 per share, payable February February: see month. 20, 2004, to shareholders of record as of February 9, 2004. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain matters in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 per·ceive tr.v. per·ceived, per·ceiv·ing, per·ceives 1. To become aware of directly through any of the senses, especially sight or hearing. 2. To achieve understanding of; apprehend. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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 Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: Please [ improve this article] or discuss the issue on the talk page. providers, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes, and other risks detailed in the Company's reports filed with the Securities and Exchange Commission.
Alaska Pacific Bancshares, Inc.
Financial Highlights (Unaudited)
Fourth Quarter 2003
(dollars in thousands, except per-share amounts)
Three Months Ended
-------------------------------
December September December
31, 30, 31,
2003 2003 2002
-------------------------------
Condensed Income Statement:
Interest income $2,169 $2,217 $2,276
Interest expense (417) (447) (562)
-------------------------------
Net interest income 1,752 1,770 1,714
Provision for loan losses (60) (30) (75)
Gain on sale of mortgage loans 23 25 197
Other noninterest income 238 283 250
Other noninterest expense (1,758) (1,724) (1,706)
-------------------------------
Net income before income tax 195 324 380
Income tax (expense) benefit (78) (130) 592
-------------------------------
Net income $117 $194 $972
===============================
Earnings per share:
Basic $.20 $.33 $1.69
Diluted $.19 $.31 $1.61
Performance Ratios:
Return on average equity 3.08% 5.16% 26.89%
Return on average assets 0.29 0.48 2.56
Yield on average earning assets 5.68 5.86 6.41
Cost of average interest-bearing
liabilities 1.31 1.44 1.87
Interest rate spread 4.37 4.41 4.54
Net interest margin on:
Average earning assets 4.59 4.68 4.82
Average total assets 4.28 4.35 4.51
Efficiency ratio (a) 88.34 83.97 86.86
Average balances:
Loans $121,042 $110,134 $113,495
Earning assets 152,832 151,441 142,117
Assets 163,671 162,585 152,045
Interest-bearing deposits 117,874 114,287 115,315
Total deposits 137,759 135,128 132,635
Interest-bearing liabilities 127,169 123,803 120,315
Shareholders' equity 15,179 15,042 14,460
Average shares outstanding:
Basic 588,376 586,376 574,311
Diluted 623,864 621,871 603,564
Year Ended
----------------------
December December
31, 31,
2003 2002
----------------------
Condensed Income Statement:
Interest income $8,628 $9,315
Interest expense (1,921) (2,453)
----------------------
Net interest income 6,707 6,862
Provision for loan losses (195) (370)
Gain on sale of mortgage loans 344 329
Other noninterest income 1,044 943
Loss on sale of building (85) -
Other noninterest expense (7,062) (6,579)
----------------------
Net income before income tax 838 1,185
Income tax (expense) benefit (335) 592
----------------------
Net income $503 $1,777
======================
Earnings per share:
Basic $.86 $3.10
Diluted .81 2.98
Performance Ratios:
Return on average equity 3.34% 12.93%
Return on average assets .32 1.21
Yield on average earning assets 5.79 6.75
Cost of average interest-bearing liabilities 1.55 2.09
Interest rate spread 4.25 4.66
Net interest margin on:
Average earning assets 4.50 4.97
Average total assets 4.20 4.66
Efficiency ratio (a) 91.11 84.29
Average balances:
Loans $110,125 $114,864
Earning assets 148,906 138,066
Assets 159,606 147,264
Interest-bearing deposits 114,581 11,2013
Total deposits 132,710 126,359
Interest-bearing liabilities 124,038 117,498
Shareholders' equity 15,039 13,748
Average shares outstanding:
Basic 584,940 572,344
Diluted 620,245 596,883
December September December
31, 30, 31,
2003 2002 2002
---------------------------------
Balance sheet data:
Total assets $164,559 $164,475 $154,339
Loans, net 124,123 113,420 106,122
Total deposits 138,612 138,498 132,681
Federal Home Loan Bank advances 9,219 9,440 5,000
Shareholders' equity 15,257 15,101 14,967
Shares outstanding (b) 626,132 626,132 623,132
Book value per share $24.37 $24.12 $24.02
Asset quality:
Allowance for loan losses $1,159 $1,102 $1,152
Allowance as a percent of loans 0.93% 0.96% 1.07%
Nonaccrual loans $313 $313 $1,777
Total nonperforming assets 616 619 1,966
Net chargeoffs (recoveries) for
quarter 2 86 24
Net chargeoffs for year 188 157
(a) Noninterest expense divided by the sum of net interest income
and noninterest income, excluding gains on sale of loans or
securities.
(b) Excludes only treasury stock.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion