American Riviera Bank Reports Growth and Earnings

News item January 28, 2020 by Michelle Martinich

Santa Barbara, California (January 28, 2020) – American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $6,393,000 ($1.27 per share) for the year ended December 31, 2019. This represents a 9% increase in net income from the $5,890,000 ($1.32 per share) for the same reporting period in the prior year.

The Bank reported an annualized return on average assets of 0.97% and return on average equity of 9.01%. The Bank reported unaudited net income of $1,572,000 ($0.31 per share) for the fourth quarter ended December 31, 2019 compared to $1,492,000 ($0.33 per share) for the same quarter last year. Share count has increased primarily due to the $8,500,000 common stock capital raise closed in the quarter ended March 31, 2019.

The Bank continues to experience significant growth, reporting $719 million in total assets as of December 31, 2019, representing a $102 million, or 17% increase from December 31, 2018. Total deposits increased 21% from December 31, 2018 reaching $621 million at December 31, 2019. Non-interest bearing demand deposit accounts increased $47 million, or 28% from the same reporting period in the prior year, reaching $217 million at December 31, 2019.

The Bank reported strong loan growth, with gross loans increasing $70 million, or 14% from December 31, 2018, reaching $578 million at December 31, 2019, with 6% or $31 million of growth in the fourth quarter of 2019.  At December 31, 2019, the Bank had no other real estate owned and no loans 30 days or more past due. The Bank’s net interest income increased by approximately $2.3 million, or 9% for the year ended December 31, 2019, compared to the same reporting period in the prior year.  The Bank’s non-interest income grew by $1.0 million, or 58% for the year ended December 31, 2019, compared to the same reporting period in the prior year. The increase in non-interest income came from diversified sources, including sales and servicing of SBA loans, mortgage broker fees, commercial loan swap fees and Farmer Mac lending. 

“2019 was an impactful year for the Bank by significantly growing loans, deposits and increasing earnings. During the year the Bank raised capital, opened a full service branch in San Luis Obispo and added a Chief Technology Officer and Chief Compliance & Risk Officer to the executive team in order to support our growth and expand our relationships throughout the Central Coast.”

Jeff DeVine, President and Chief Executive Officer

As of December 31, 2019, American Riviera Bank has 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 $14.09 at December 31, 2019, a 13% increase from $12.51 at December 31, 2018.

Balance Sheet (unaudited)
(dollars in thousands)
			Dec 31,		Dec 31,		One Year
			2019		2018		Change
Assets
	Cash & Due From Banks		$ 66,472		$41,271		61%
	Fed Funds Sold		-		-		-
	Securities		43,403		46,009		-6%
	Loans		578,458		508,397		14%
	Allowance For Loan Losses		(6,366)		(5,542)		15%
	Net Loans		572,092		502,855		14%
	Premise & Equipment		6,878		5,299		30%
	Goodwill and Other Intangibles		5,337		5,516		-3%
	Other Assets (a)		24,753		15,590		59%
Total Assets			$718,935		$616,540		17%
Liabilities & Shareholders' Equity
	Demand Deposits		$ 216,671		$169,549		28%
	NOW Accounts		87,906		73,652		19%
	Other Interest Bearing Deposits		316,586		270,106		17%
	Total Deposits		621,163		513,307		21%
	Borrowed Funds		10,000		40,000		-75%
	Other Liabilities (a)		11,629		2,346		396%
	Total Liabilities		642,792		555,653		16%
	Common Stock (b)		55,034		46,477		18%
	Retained Earnings		21,224		14,831		43%
	Other Capital		(115)		(421)		-73%
	Total Shareholders' Equity		76,143		60,887		25%
Total Liabilities & Shareholders' Equity			$718,935		$616,540		17%
Notes:
	(a) Other assets and other liabilities primarily increased due to the adoption of ASU2016-02, "Leases (Topic 842)" as of January 1, 2019.  As of December 31, 2019 the right-of-use asset totals $7.7 million and the operating lease liability is $8 million.
	(b) Common stock increased in the first quarter 2019 due to $8.5 million common stock capital raise.

Balance Sheet (unaudited)
(dollars in thousands)
			December 31,		September 30,		June 30,		March 31,		December 31,
			2019		2019		2019		2019		2018
Assets
	Cash & Due From Banks		$          66,472		$          79,101		$          47,640		$          48,835		$          41,271
	Fed Funds Sold		-		-		-		-		-
	Securities		43,403		41,797		42,961		44,123		46,009
	Loans		578,458		547,956		541,869		520,857		508,397
	Allowance For Loan Losses		(6,366)		(6,145)		(5,883)		(5,661)		(5,542)
	Net Loans		572,092		541,811		535,986		515,196		502,855
	Premise & Equipment		6,878		6,812		6,528		5,588		5,299
	Goodwill and Other Intangibles		5,337		5,382		5,427		5,472		5,516
	Other Assets (a)		24,753		22,364		23,054		19,524		15,590
Total Assets			$       718,935		$       697,267		$       661,596		$       638,738		$       616,540
Liabilities & Shareholders' Equity
	Demand Deposits		$       216,671		$       207,643		$       186,845		$       187,048		$       169,549
	NOW Accounts		87,906		79,509		73,782		76,370		73,652
	Other Interest Bearing Deposits		316,586		316,124		304,223		282,874		270,106
	Total Deposits		621,163		603,276		564,850		546,292		513,307
	Borrowed Funds		10,000		10,000		15,000		15,000		40,000
	Other Liabilities (a)		11,629		9,452		8,806		6,562		2,346
	Total Liabilities		642,792		622,728		588,656		567,854		555,653
	Common Stock (b)		55,034		54,889		54,739		54,513		46,477
	Retained Earnings		21,224		19,653		18,105		16,600		14,831
	Other Capital		(115)		(3)		96		(229)		(421)
	Total Shareholders' Equity		76,143		74,539		72,940		70,884		60,887
Total Liabilities & Shareholders' Equity			$       718,935		$       697,267		$       661,596		$       638,738		$       616,540
Notes:
	(a) Other assets and other liabilities primarily increased due to the adoption of ASU2016-02,  "Leases (Topic 842)" as of January 1, 2019.
	As of December 31, 2019 the right-of-use asset totals $7.7 million and the operating lease liability is $8 million. The San Luis Obispo branch
	was added for the quarter ending June 30, 2019 and the Santa Barbara Branch increased as of December 31, 2019 with the expectation to extend the lease term.
	(b) Common stock increased in the first quarter 2019 due to $8.5 million common stock capital raise.

Previous: ARB Hires Steven Harding as Regional President Next: Teen Savings Champion Wins National Video Contest