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. | |||||||||||
