American Pacific Bank Reports Growth of Assets Up 13.6%.

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 15, 1999--

David Chen, President and C.E.O. of American Pacific Bank (Nasdaq:AMPBB) today announced net earnings for the Bank's third quarter of operations which ended September 30, 1999.

Year-to-date earnings were $297,770 or $0.26 per share, representing an increase of $11,875 or 4.15% increase, as compared to $285,895 or $0.25 per share reported for the same period last year.

Net earnings for the third quarter after tax were $85,251 or $0.07 per share as compared to $135,992 or $0.12 per share reported for the same period last year. The decrease in net income for the quarter was due primarily to a temporary reclassification of loans in the non-accrual status and, as a result, a total of approximately $37,000 in fees and interest income were reversed out of income. Non-accrual loans increased by $578,000 for the quarter, and as a prudent measure, management increased loan loss reserves by $42,617 for the third quarter, bringing the loan loss reserve to $450,471 as of September 30, 1999.

As of September 30, 1999, total loans (net of loan loss reserve and unearned income) were $42.9 million as compared to $33.4 million for the same period a year ago, representing an increase of $9.5 million or 28.4%.

The Bank ended the third quarter with $55.2 million in total assets, as compared to $48.6 million for the same period a year ago, an increase of $6.6 million or 13.6%. Total deposits were at $49.6 million as compared to $43.8 million from the previous year, an increase of $5.8 million or 13.2%. The Bank has not suffered any losses from the construction and mortgage loan portfolios in the last six years.

The Bank continues to be well-capitalized with the leverage ratio at 9.61% and the risk-based capital ratio at 13.4%. The Bank continues to be very liquid with the liquidity ratio at 21.0%. The book value of the Bank's stock was $4.22 per share as of September 30, 1999.

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                        American Pacific Bank
                      -------------------------


                                   Quarter              Quarter
                                   Ended 9/30/99        Ended 9/30/98
                                       $                    $
                                   -----------------------------------
                                   Unaudited            Unaudited
                                   -----------------------------------

 Total Assets                      55,245,381             48,586,149
 Average Assets                    52,214,546             44,491,599
 Total Deposits                    49,626,724             43,848,576
 Total Loans (net of Unearned
  Income and  Loan Loss Reserve)   42,962,304             33,363,261

 Total Equity                       5,172,150              4,388,957
 Average No of shares               1,144,554              1,134,276
 Total Shares Outstanding           1,226,776              1,134,276
 Book Value                              4.22                   3.87
                                   -----------------------------------


                                      Quarter              Quarter
                                   Ended 9/30/99        Ended 9/30/98
                                       $                    $
                                   -----------------------------------
                                   Unaudited            Unaudited
                                   -----------------------------------

 Interest Income                   1,161,437              1,144,783
 Interest Expense                    535,458                487,759

                                   -----------------------------------
 Net Interest Income                 625,979                657,024


 Provision for Loan Loss Reserve     (42,617)               (28,297)

 Other Income                        150,484                114,989

 Other Expenses                     (626,102)              (577,523)
 Provision for taxes                 (22,493)               (30,201)

                                   -----------------------------------
 Net Income                           85,251                135,992
                                   -----------------------------------

  Per Share Data:
  Earnings Per Share                   $0.07                  $0.12


                                    Nine Months          Nine Months
                                   Ended 9/30/99        Ended 9/30/98
                                         $                    $
                                   -----------------------------------
                                   Unaudited            Unaudited
                                   -----------------------------------

 Interest Income                   3,584,974           3,217,635
 Interest Expense                  1,604,156           1,336,818
                                   -----------------------------------
 Net Interest Income               1,980,818           1,880,817

 Provision for Loan Loss Reserve     (80,641)              7,364
 Other Income                        462,959             367,504
 Other Expenses                   (1,939,415)         (1,866,347)
 Provision for taxes                (125,951)           (103,443)
                                   -----------------------------------
 Net Income                          297,770             285,895
                                   -----------------------------------

  Per Share Data:
  Earnings Per Share                   $0.26               $0.25