The annualized return on average assets of 0.95% and return on average equity of 8.40% represent an increase from the 0.80% and 7.31%, respectively, achieved for the same reporting period in the prior year. The Bank reported unaudited net income of $1,163,000 ($0.27 per share) for the second quarter ended June 30, 2017 compared to $1,424,000 ($0.33 per share) for the same quarter last year. The second quarter of 2016 included $577,000 of non-recurring interest income related to merger accounting, resulting in higher reportable earnings compared to the second quarter of 2017.
The Bank experienced significant growth in the last year, reporting $496 million in total assets as of June 30, 2017. Asset growth was made possible by total deposits increasing 24% from June 30, 2016, reaching $440 million at June 30, 2017. Non-interest bearing demand deposits increased 28% from the same reporting period last year. Deposit origination volume is noteworthy, with the Bank opening over 900 new accounts at our three locations during the first six months of 2017.
Loan demand remained strong, with total loans increasing 11% from June 30, 2016, reaching $397 million at June 30, 2017 with no other real estate owned. The Bank reported an annualized net interest margin of 4.70% for the six months ending June 30, 2017.
“American Riviera Bank has made significant gains in market share this year by focusing on the needs of our clients. We look forward to providing the same dedication to Paso Robles and surrounding communities with the opening of our loan production office in August and our full service branch by early 2018. We strive to balance quality growth with earnings and are pleased to report that as of June 30, 2017 our share price has increased 55% from last year.”
Jeff DeVine, President and Chief Executive Officer
As of June 30, 2017, American Riviera Bank maintained a strong capital position with a Tier 1 Capital Ratio of 11%; well above the regulatory guideline of 8% for well capitalized institutions. The tangible book value per share of American Riviera Bank common stock is $10.81 at June 30, 2017, an increase from $10.03 at June 30, 2016.
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