Santa Barbara, California (January 30, 2017) – American Riviera Bank (OTC Markets: ARBV) announced today record unaudited net income of $4,130,000 ($0.94 per share) for the year ended December 31, 2016, compared to the $1,303,000 ($0.48 per share) reported for the previous fiscal year prior to the merger. For the fourth quarter ended December 31, 2016, unaudited net income was $1,115,000 ($0.25 per share), as compared to the $365,000 ($0.14 per share) achieved for the same reporting period last year prior to the merger.
For the year ended December 31, 2016, the Bank reported record return on average assets of 0.95% and return on average equity of 8.65%, which represents an increase from the 0.56% and 4.67%, respectively, achieved for the previous fiscal year prior to the merger.
Jeff DeVine, President and Chief Executive Officer stated, “Our first full year since the merger with The Bank of Santa Barbara has been busy and successful. We are now positioned to better serve our clients and the community with a larger legal lending limit, expanded branch network, and a full line of lending products including SBA, residential mortgage, construction and commercial lending. Our growth has also provided great benefit to our shareholders. Earnings per share increased 96% from the prior year and our stock closed at $15.10 per share on December 31, 2016, which represents a 34% increase from the closing price on December 31, 2015.”
As of December 31, 2016, the Bank reported $356 million in total loans with no other real estate owned. Non-interest bearing demand deposits are now 34% of the $392 million in total deposits. As of December 31, 2016, American Riviera Bank had $446 million in total assets, and maintained a strong capital position with a Tier 1 Capital Ratio of 12%; well above the regulatory guideline of 8% for well capitalized institutions. The tangible book value per share of American Riviera Bank’s common stock is $10.32 and the book value is $11.66 at December 31, 2016, an increase from the $10.56 book value at December 31, 2015.
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.
(dollars in thousands)
| Assets | Dec 30, 2016 | Dec 30, 2015 | One Year Change |
|---|---|---|---|
| Cash & Due From Banks | $45,332 | $23,636 | 92% |
| Fed Funds Sold | 19,539 | 1,838 | 963% |
| Securities | 5,722 | 5,886 | -3% |
| Loans | 356,471 | 211,789 | 68% |
| Allowance For Loan Losses | (3,368) | (2,703) | 25% |
| Net Loans | 353,103 | 209,086 | 69% |
| Fixed Assets | 1,303 | 901 | 45% |
| Goodwill | 5,874 | - | N/A |
| Other Assets | 15,104 | 7,196 | 110% |
| Total Assets | 445,977 | 248,543 | 79% |
| Liabilities & Shareholders' Equity | |||
| Demand Deposits | 132,965 | 72,568 | 83% |
| Interest Bearing Deposits | 258,857 | 146,441 | 77% |
| Total Deposits | 391,822 | 219,009 | 79% |
| Borrowed Funds | 2,000 | - | N/A |
| Other Liabilities | 1,192 | 1,064 | 12% |
| Total Liabilities | 395,014 | 220,073 | 79% |
| Common Stock | 42,934 | 24,735 | 74% |
| Retained Earnings | 8,050 | 3,765 | 114% |
| Other Capital | (21) | (30) | -30% |
| Total Shareholders' Equity | 50,963 | 28,470 | 79% |
| Total Liabilities & Shareholders' Equity | $ 445,977 | $ 248,543 | 79% |
| Book Value Per Share | $11.66 | $10.56 | - |
| Tangible Book Value Per Share | $10.32 | $10.56 | - |
(dollars in thousands)
| Quarter Ended | 12 Months Ended | |||||
|---|---|---|---|---|---|---|
| Dec 30, 2016 | Dec 30, 2015 | Change | Dec 30, 2016 | Dec 30, 2015 | Change | |
| Interest Income | ||||||
| Interest and Fees on Loans | $4,852 | $2,716 | 79% | $19,089 | $9,777 | 95% |
| Loan Fair Value Accretion, net | 415 | - | N/A | 1,187 | - | N/A |
| Interest on Securities | 21 | 21 | 1% | 101 | 95 | 6% |
| Interest on Fed Funds | 46 | 5 | 794% | 98 | 18 | 436% |
| Interest on Due From Banks | 50 | 24 | 111% | 173 | 133 | 30% |
| Total Interest Income | 5,384 | 2,765 | 95% | 20,648 | 10,024 | 106% |
| Interest Expense | ||||||
| Interest Expense on Deposits | 214 | 100 | 113% | 805 | 384 | 109% |
| Interest Expense on Borrowings | 15 | - | N/A | 81 | 22 | 269% |
| Total Interest Expense | 229 | 100 | 128% | 886 | 406 | 118% |
| Net Interest Income | 5,155 | 2,665 | 93% | 19,761 | 9,617 | 105% |
| Provision for Loan Losses | 117 | 190 | -38% | 505 | 353 | 43% |
| Net Interest Income After Provision | 5,038 | 2,475 | 104% | 19,256 | 9,264 | 108% |
| Non-Interest Income | ||||||
| Service Charges, Commissions and Fees | 279 | 139 | 101% | 1,206 | 569 | 112% |
| Other Non-Interest Income | 174 | 45 | 290% | 427 | 207 | 106% |
| Total Non-Interest Income | 453 | 184 | 147% | 1,633 | 777 | 110% |
| Non-Interest Expense | ||||||
| Salaries and Employee Benefits | 2,008 | 1,095 | 83% | 7,748 | 4,051 | 91% |
| Occupancy and Equipment | 388 | 252 | 54% | 1,549 | 1,050 | 48% |
| Merger Related Expenses (non recurring) | 83 | 272 | -70% | 1,066 | 571 | 87% |
| Other Non-Interest Expense | 944 | 374 | 153% | 3,499 | 1,917 | 82% |
| Total Non-Interest Expense | 3,423 | 1,992 | 72% | 13,862 | 7,590 | 83% |
| Net Income Before Provison for Taxes | 2,068 | 667 | 210% | 7,027 | 2,450 | 187% |
| Provision for Taxes | 953 | 302 | 216% | 2,896 | 1,148 | 152% |
| Net Income | 1,115 | 365 | 205% | 4,130 | 1,303 | 217% |
| Shares (end of period) | 4,372,290 | 2,697,927 | 62% | 4,372,290 | 2,697,927 | 62% |
| Earnings Per Share - Basic | $0.25 | $0.14 | 88% | $0.94 | $0.48 | 96% |
| Return on Average Assets (annualized) | 0.95% | 0.57% | - | 0.95% | 0.56% | - |
| Return on Average Equity (annualized) | 8.59% | 4.85% | - | 8.65% | 4.67% | - |
| Net Interest Margin (annualized) | 4.74% | 4.58% | - | 4.81% | 4.33% | - |
| Net Interest Margin (excluding FV amortization) | 4.34% | 4.58% | - | 4.26% | 4.33% | - |
