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.
(dollars in thousands)
| Assets | Sept 30, 2017 | Sept 30, 2016 | One Year Change |
|---|---|---|---|
| Cash & Due From Banks | $59,861 | $52,996 | 13% |
| Fed Funds Sold | 11,428 | 38,458 | -70% |
| Securities | 22,351 | 6,581 | 240% |
| Loans | 405,947 | 347,345 | 17% |
| Allowance For Loan Losses | (4,076) | (3,226) | 26% |
| Net Loans | 401,871 | 344,119 | 17% |
| Fixed Assets | 1,261 | 1,351 | -7% |
| Goodwill and Other Intangibles | 5,740 | 5,071 | 13% |
| Other Assets | 15,716 | 14,996 | 5% |
| Total Assets | 518,228 | 463,572 | 12% |
| Liabilities & Shareholders' Equity | |||
| Demand Deposits | 162,835 | 135,757 | 20% |
| Interest Bearing Deposits | 299,245 | 256,418 | 17% |
| Total Deposits | 462,080 | 392,175 | 18% |
| Borrowed Funds | - | 20,000 | -100% |
| Other Liabilities | 1,504 | 1,643 | -8% |
| Total Liabilities | 463,584 | 413,818 | 12% |
| Common Stock | 42,820 | 42,946 | 0% |
| Retained Earnings | 11,851 | 6,810 | 74% |
| Other Capital | (27) | (2) | 1250% |
| Total Shareholders' Equity | 54,644 | 49,754 | 10% |
| Total Liabilities & Shareholders' Equity | $518,228 | $463,572 | 12% |
| Book Value Per Share | $12.42 | $11.40 | 9% |
| Tangible Book Value Per Share | $ 11.12 | $10.24 | 9% |
(dollars in thousands)
| Quarter Ended | 9 Months Ended | |||||
|---|---|---|---|---|---|---|
| Sept 30, 2017 | Sept 30, 2016 | Change | Sept 30, 2017 | Sept 30, 2016 | Change | |
| Interest Income | ||||||
| Interest and Fees on Loans | $5,275 | $4,780 | 10% | $15,186 | $14,237 | 7% |
| Net Fair Value Amortization Income | 246 | 194 | 27% | 597 | 771 | -23% |
| Interest on Securities | 85 | 23 | 264% | 145 | 80 | 81% |
| Interest on Fed Funds | 38 | 36 | 5% | 80 | 52 | 53% |
| Interest on Due From Banks | 142 | 44 | 222% | 317 | 123 | 159% |
| Total Interest Income | 5,786 | 5,077 | 14% | 16,325 | 15,263 | 7% |
| Interest Expense | ||||||
| Interest Expense on Deposits | 273 | 190 | 44% | 738 | 591 | 25% |
| Interest Expense on Borrowings | 1 | 30 | -98% | 23 | 66 | -65% |
| Total Interest Expense | 274 | 220 | 25% | 761 | 657 | 16% |
| Net Interest Income | 5,512 | 4,857 | 13% | 15,564 | 14,606 | 7% |
| Provision for Loan Losses | 68 | 137 | -50% | 707 | 388 | 82% |
| Net Interest Income After Provision | 5,444 | 4,720 | 15% | 14,857 | 14,218 | 4% |
| Non-Interest Income | ||||||
| Service Charges, Commissions and Fees | 288 | 309 | -7% | 863 | 927 | -7% |
| Other Non-Interest Income | 74 | 88 | -15% | 240 | 254 | -6% |
| Total Non-Interest Income | 362 | 397 | -9% | 1,103 | 1,181 | -7% |
| Non-Interest Expense | ||||||
| Salaries and Employee Benefits | 2,027 | 1,783 | 14% | 5,880 | 5,740 | 2% |
| Occupancy and Equipment | 415 | 395 | 5% | 1,155 | 1,161 | 0% |
| Other Non-Interest Expense | 1,005 | 973 | 3% | 3,106 | 3,539 | -12% |
| Total Non-Interest Expense | 3,447 | 3,151 | 9% | 10,141 | 10,440 | -3% |
| Net Income Before Provision for Taxes | 2,359 | 1,966 | 20% | 5,819 | 4,959 | 17% |
| Provision for Taxes | 976 | 557 | 75% | 2,318 | 1,944 | 19% |
| Net Income | 1,383 | 1,409 | -2% | 3,501 | 3,015 | 16% |
| Shares (end of period) | 4,400,663 | 4,362,930 | 1% | 4,400,663 | 4,362,930 | 1% |
| Earnings Per Share - Basic | $0.31 | $0.32 | -3% | $ 0.80 | $ 0.69 | 16% |
| 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% | - |
