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% | |||||||||
