American Riviera Bancorp Reports Quarterly Earnings
Santa Barbara, California (July 21, 2022) – American Riviera Bancorp (“Company”) (OTCQX: ARBV), holding company of American Riviera Bank (“Bank”), announced today unaudited net income of $5.7 million ($1.10 per share) for the six months ended June 30, 2022 compared to the $6.1 million ($1.19 per share) earned in the same reporting period in the previous year. Unaudited net income was $2.5 million ($0.49 per share) for the three months ended June 30, 2022 compared to the $3.6 million ($0.70 per share) earned in the same reporting period in the previous year. The decline in year to date net income in 2022 compared to 2021 is primarily attributable to higher amounts of non-recurring SBA PPP loan fee income in 2021. PPP fee income recognized was $1.2 million lower in the six months ending June 30, 2022 than recognized in the same reporting period in the previous year.
The Bank has generated substantial loan growth, deploying liquidity into “core loans” which exclude SBA PPP loans. Core loans have grown 22% or $153.2 million over the last year since June 30, 2021, 13% or $101.1 million year to date since December 31, 2021, and 10% or $78.2 million in the last quarter since March 31, 2022. PPP loan forgiveness has been efficiently handled for our small business clients, and only $6.2 million of these 1.00% interest rate loans remained outstanding at June 30, 2022. The $0.9 million addition to allowance for loan and lease loss in 2022 was necessary based on the core loan growth reported above. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $3.5 million or 0.41% of total loans excluding PPP on non-accrual status, which are well supported by collateral and reserves.
The Bank continues to experience substantial deposit growth with a 19% or $203.7 million increase in total deposits over the last year since June 30, 2021. Non-interest-bearing demand deposits increased 14% or $58.6 million over the last year. Deposit inflows from our clients have been the driving factor in the total assets of the Company increasing 19% or $212.9 million since June 30, 2021 to a total of $1.4 billion at June 30, 2022. The Company’s overall cost of funds has increased slightly to 0.12% as of June 30, 2022, primarily attributable to interest on the subordinated notes issued in February 2022.
Jeff DeVine, President and Chief Executive Officer noted, “The Bank continues to respond to the needs of our community by deploying the deposits that our clients have entrusted us with into loans right here on the Central Coast! This is the value proposition of the community banking model. We know that the financial strength of our Bank and the dedication and experience of our team will allow American Riviera Bank to continue to support the economic growth and vitality of our businesses and consumers.”
As of June 30, 2022, the Company and Bank continue to be well capitalized with Tier 1 Capital ratios of 10% and 12%, respectively. The tangible book value per share of American Riviera Bancorp common stock is $15.17 at June 30, 2022.
Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, effects of interest rate changes, ability to control costs and expenses, impact of consolidation in the banking industry, financial policies of the US government, and general economic conditions.Previous: Dog Day