News

American Riviera Bank Reports Record Quarterly Earnings

American Riviera Bank Reports Record Quarterly Earnings

News item October 23, 2018 by Michelle Martinich

Santa Barbara, California (October 23, 2018) – American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $4,398,000 ($0.99 per share) for the nine months ended September 30, 2018. This represents a 26% increase in net income from the $3,501,000 ($0.80 per share) for the same reporting period in the prior year.

The annualized return on average assets of 1.06% and return on average equity of 10.38% represents an increase from the 0.99% and 8.92%, respectively, achieved for the same reporting period in the prior year. The Bank reported its best quarter ever with unaudited net income of $1,571,000 ($0.35 per share) for the third quarter ended September 30, 2018 compared to $1,383,000 ($0.31 per share) for the same reporting period in the prior year.

As of September 30, 2018 the Bank reported $504 million in total deposits. This represents a 9% increase from the same reporting period prior year. Checking accounts, comprised of non-interest bearing demand deposits and interest bearing NOW accounts, increased by $40 million or 19% from the same quarter last year.

Loan demand remains strong, with total loans increasing $83 million or 21% from September 30, 2017, reaching $489 million at September 30, 2018 with no loans that were 90 days or more past due and no other real estate owned. The Bank reported an annualized net interest margin of 4.47% for the nine months ending September 30, 2018.

 The third quarter was another strong quarter for American Riviera Bank, as we are quickly approaching $600 million in assets and continue to increase profitability. Moving forward, we remain committed to being the leading independent bank on the Central Coast and continue to make American Riviera Bank better for its shareholders, customers and employees. Our organic growth and community centric approach continues to differentiate us in the market as we solidify our position as the Central Coast’s leading community bank.”

Jeff DeVine, President and Chief Executive Officer

As of September 30, 2018, American Riviera Bank maintained a strong capital position with a Tier 1 Capital Ratio of 10%; well above the regulatory guideline of 8% for well capitalized institutions. The tangible book value per share of American Riviera Bank common stock is $11.96 at September 30, 2018, a 8% increase from $11.12 at September 30, 2017.

Balance Sheets (unaudited)
      
(dollars in thousands)
      
   Sep 30,
 Sep 30,
 One Year
   2018
 2017
 Change
Assets
      
 Cash & Due From Banks
  $          31,392
  $            59,861
 -48%
 Fed Funds Sold
                       -  
                11,428
 -100%
 Securities
              46,549
                22,351
 108%
        
 Loans
            489,401
              405,947
 21%
 Allowance For Loan Losses
              (5,242)
                (4,076)
 29%
 Net Loans
            484,159
              401,871
 20%
        
 Fixed Assets
                5,308
                  1,261
 321%
 Goodwill and Other Intangibles
                6,417
                  5,740
 12%
 Other Assets
              15,178
                15,716
 -3%
Total Assets
            589,003
              518,228
 14%
        
        
Liabilities & Shareholders' Equity
      
 Demand Deposits
            166,145
              162,835
 2%
 NOW Accounts
              86,543
                50,072
 73%
 Other Interest Bearing Deposits
            250,958
              249,173
 1%
 Total Deposits
            503,646
              462,080
 9%
        
 Borrowed Funds
              24,000
                         -  
 N/A
 Other Liabilities
                2,295
                  1,504
 53%
 Total Liabilities
            529,941
              463,584
 14%
        
 Common Stock
              46,400
                45,791
 1%
 Retained Earnings
              13,339
                  8,880
 50%
 Other Capital
                  (677)
                      (27)
 2407%
 Total Shareholders' Equity
              59,062
                54,644
 8%
        
Total Liabilities & Shareholders' Equity
  $       589,003
  $         518,228
 14%
        
 Book Value Per Share
  $            13.40
  $              12.42
 8%
 Tangible Book Value Per Share
  $            11.96
  $              11.12
 8%

Statements of Income (unaudited)
            
(dollars in thousands)
            
   Quarter Ended
 9 Months Ended
   Sep 30,
 Sep 30,
   Sep 30,
 Sep 30,
  
   2018
 2017
 Change
 2018
 2017
 Change
Interest Income
            
 Interest and Fees on Loans
  $        6,256
  $        5,275
 19%
  $          17,294
  $        15,186
 14%
 Net Fair Value Amortization Income
                118
                246
 -52%
                    424
                  597
 -29%
 Interest on Securities
                266
                  85
 212%
                    702
                  145
 384%
 Interest on Fed Funds 
                    1
                  38
 -98%
                       12
                    80
 -85%
 Interest on Due From Banks
                167
                142
 17%
                    436
                  318
 37%
 Total Interest Income
            6,808
            5,786
 18%
              18,868
            16,326
 16%
              
Interest Expense
            
 Interest Expense on Deposits
                622
                273
 128%
                 1,214
                  738
 65%
 Interest Expense on Borrowings
                    6
                    1
 500%
                    126
                    23
 446%
 Total Interest Expense
                628
                274
 129%
                 1,340
                  761
 76%
              
Net Interest Income
            6,180
            5,512
 12%
              17,528
            15,565
 13%
 Provision for Loan Losses
                294
                  68
 330%
                    925
                  707
 31%
Net Interest Income After Provision
            5,886
            5,444
 8%
              16,603
            14,858
 12%
              
Non-Interest Income
            
 Service Charges, Commissions and Fees
                397
                288
 38%
                 1,242
                  863
 44%
 Other Non-Interest Income
                  60
                  74
 -19%
                    258
                  240
 8%
 Total Non-Interest Income
                457
                362
 26%
                 1,500
              1,103
 36%
              
Non-Interest Expense
            
 Salaries and Employee Benefits
            2,429
            2,027
 20%
                 7,061
              5,880
 20%
 Occupancy and Equipment
                483
                415
 17%
                 1,304
              1,155
 13%
 Other Non-Interest Expense
            1,210
            1,005
 20%
                 3,585
              3,106
 15%
 Total Non-Interest Expense
            4,122
            3,447
 20%
              11,950
            10,141
 18%
              
Net Income Before Provision for Taxes
            2,221
            2,359
 -6%
                 6,153
              5,820
 6%
Provision for Taxes
                650
                976
 -33%
                 1,755
              2,319
 -24%
Net Income 
  $        1,571
  $        1,383
 14%
  $            4,398
  $          3,501
 26%
              
 Shares (end of period)
    4,459,269
    4,400,663
 1%
        4,459,269
      4,400,663
 1%
 Earnings Per Share - Basic
  $          0.35
  $          0.31
 13%
  $               0.99
  $            0.80
 24%
              
 Return on Average Assets (annualized)
 1.03%
 1.06%
   1.06%
 0.99%
  
 Return on Average Equity (annualized)
 10.39%
 9.90%
   10.38%
 8.92%
  
 Net Interest Margin (annualized)
 4.39%
 4.62%
   4.47%
 4.67%
  


Next: American Riviera Bank Bestows the Prestigious Lutah Maria Riggs Award to Carl Palmer