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American Riviera Bank Exceeds Half a Billion in Assets and Expands into SLO County

American Riviera Bank Exceeds Half a Billion in Assets and Expands into SLO County

News item October 24, 2017 by Michelle Martinich

SANTA BARBARA, CALIFORNIA (OCTOBER 24, 2017) – American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $3,501,000 ($0.80 per share) for the nine months ended September 30, 2017, an increase from $3,015,000 ($0.69 per share) for the first nine months of 2016. The annualized return on average assets of 0.99% and return on average equity of 8.92% represent an increase from the 0.95% and 8.69%, respectively, achieved for the same reporting period in the prior year. The Bank reported unaudited net income of $1,383,000 ($0.31 per share) for the third quarter ended September 30, 2017 compared to $1,409,000 ($0.32 per share) for the same quarter last year.

The Bank experienced significant organic growth in the last year, reporting $518 million in total assets as of September 30, 2017. Growth was driven by total deposits increasing 18% from September 30, 2016, reaching $462 million at September 30, 2017. Non-interest bearing demand deposits increased 20% from the same reporting period last year and now represent 35% of total deposits. Deposit origination volume is noteworthy, as the Bank has opened over 1,400 new accounts during the first nine months of 2017, which exceeds new account origination for the entire 2016 year.

Loan demand remained strong, with total loans increasing 17% from September 30, 2016, reaching $406 million at September 30, 2017 with no other real estate owned. The Bank reported an annualized net interest margin of 4.67% for the nine months ending September 30, 2017.

“American Riviera Bank is pleased to announce a 16% increase in year to date earnings per share. We plan to re-invest some of our earnings with expansion into San Luis Obispo County as previously announced, and are excited to have our loan production office now open in Paso Robles with an excellent team to serve the community’s needs. We look forward to opening our full service branch in Paso Robles in early 2018.”

 Jeff DeVine, President and Chief Executive Officer

As of September 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 $11.12 at September 30, 2017, a 9% increase from $10.24 at September 30, 2016.

Balance Sheets (unaudited)

(dollars in thousands)

AssetsSept 30, 2017Sept 30, 2016One Year Change
Cash & Due From Banks$59,861$52,99613%
Fed Funds Sold11,42838,458-70%
Securities22,3516,581240%
Loans405,947347,34517%
Allowance For Loan Losses(4,076)(3,226)26%
Net Loans401,871344,11917%
Fixed Assets1,2611,351-7%
Goodwill and Other Intangibles5,7405,07113%
Other Assets15,71614,9965%
Total Assets518,228463,57212%
Liabilities & Shareholders' Equity
Demand Deposits162,835135,75720%
Interest Bearing Deposits299,245256,41817%
Total Deposits462,080392,17518%
Borrowed Funds-20,000-100%
Other Liabilities1,5041,643-8%
Total Liabilities463,584413,81812%
Common Stock42,82042,9460%
Retained Earnings11,8516,81074%
Other Capital(27)(2)1250%
Total Shareholders' Equity54,64449,75410%
Total Liabilities & Shareholders' Equity$518,228$463,57212%
Book Value Per Share$12.42$11.409%
Tangible Book Value Per Share$ 11.12$10.249%

Statements of Income (unaudited)

(dollars in thousands)

 Quarter Ended9 Months Ended
 Sept 30, 2017Sept 30, 2016ChangeSept 30, 2017Sept 30, 2016Change
Interest Income
Interest and Fees on Loans$5,275$4,78010%$15,186$14,2377%
Net Fair Value Amortization Income24619427%597771-23%
Interest on Securities8523264%1458081%
Interest on Fed Funds38365%805253%
Interest on Due From Banks14244222%317123159%
Total Interest Income5,7865,07714%16,32515,2637%
Interest Expense
Interest Expense on Deposits27319044%73859125%
Interest Expense on Borrowings130-98%2366-65%
Total Interest Expense27422025%76165716%
Net Interest Income5,5124,85713%15,56414,6067%
Provision for Loan Losses68137-50%70738882%
Net Interest Income After Provision5,4444,72015%14,85714,2184%
Non-Interest Income
Service Charges, Commissions and Fees288309-7%863927-7%
Other Non-Interest Income7488-15%240254-6%
Total Non-Interest Income362397-9%1,1031,181-7%
Non-Interest Expense
Salaries and Employee Benefits2,0271,78314%5,8805,7402%
Occupancy and Equipment4153955%1,1551,1610%
Other Non-Interest Expense1,0059733%3,1063,539-12%
Total Non-Interest Expense3,4473,1519%10,14110,440-3%
Net Income Before Provision for Taxes2,3591,96620%5,8194,95917%
Provision for Taxes97655775%2,3181,94419%
Net Income1,3831,409-2%3,5013,01516%
Shares (end of period)4,400,6634,362,9301%4,400,6634,362,9301%
Earnings Per Share - Basic$0.31$0.32-3%$ 0.80$ 0.6916%
Return on Average Assets (annualized)1.06%1.23%-0.99%0.95%-
Return on Average Equity (annualized)9.90%11.25%-8.92%8.69%-
Net Interest Margin (annualized)4.62%4.57%-4.67%4.84%-
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