Description

Alaska Pacific Bank (AKPB)
Alaska Pacific Bancshares is a bank holding company for Alaska Federal Savings Bank which
operates six full service offices in Southeast Alaska. For the 3 months ended 3/31/01, total interest income
rose 18% to $2.6M. Net interest income after loan loss prov. rose 10% to $1.4M. Net income fell 57% to
$13K. Results reflect higher average balances, offset by a higher loan loss provision and increased salaries
and benefits.

This is a mutual bank that converted to a stock bank . Book value is 20.07 per share. There are
only 623,132 shares outstanding. Earnings per share for 1998 =.56, for 1999 = .43, and 2000 = .18 (third q
earnings was .23 and 4th q loss was .23 due to large loan loss reserve addition).


March 31, December 31, March 31,
2001 2000 2000

Balance sheet data:
Total assets $141,222 $135,465 $119,585
Loans, net 108,053 104,836 89,420
Total deposits 113,172 107,989 98,281
Fed.l Home Loan Bnk adv. 13,000 13,400 6,300
Shareholders' equity 12,505 12,383 12,371

Shares outstanding (b) 623,132 623,132 655,415

Book value per share $ 20.07 $ 19.87 $ 18.88

Asset quality:
Allowance for loan losses $ 827 $ 788 $ 551
Nonaccrual loans 1,065 833 87
Total nonperforming assets 1,121 889 114
Net chargeoffs for quarter 6 - 34

(b) Excludes only treasury stock.

The bank has been transitioning from a "mutual savings and loan" to a true local bank. AKPB
bought 2 branches from Bank of America when it pulled out of the state. Northrim purchased the branches
in Anchorage and Fairbanks.

Be careful if you decide to purchase as it is very thinly traded.

To get the annual report call Roger K. White at ( 907)790-5135 or Craig E. Dahl at ( 907)790-5101 .

Catalyst

Wells Fargo has now transitioned (taken over) National Bank of Alaska and many
Alaskans are starting to miss the personal service and local knowledge. The other local banks are really playing up the
local angle. This is not an overnight play but should only be done with a long term horizon.