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American Riviera Bank Reports Growth and Earnings

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.    
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