This represents a 31% increase in net income from the $1,352,000 ($0.31 per share) for the same reporting period in the prior year. The annualized return on average assets of 1.19% and return on average equity of 11.90% represent an increase from the 1.09% and 10.27%, respectively, achieved for the same reporting period in the prior year.
The Bank experienced significant organic growth in the last year, reporting $639 million in total assets as of March 31, 2019. Asset growth was made possible by total deposits increasing 16% from March 31, 2018, reaching $546 million at March 31, 2019. Non-interest bearing demand deposit accounts increased $32 million, or 21% since the same reporting period last year, reaching $187 million at March 31, 2019.
The Bank reported strong loan growth, with loans increasing $89 million, or 20% from March 31, 2018, reaching $521 million at March 31, 2019 with no other real estate owned. The Bank reported an annualized net interest margin of 4.42% for the three months ended March 31, 2019.
“The first quarter of 2019 has set the stage for an exciting year. With the completion of our stock offering, the anticipated opening of our full service San Luis Obispo branch and commercial banking center in the second quarter of 2019, and strong organic growth in both loans and deposits, American Riviera Bank is positioned to continue our commitment to our clients and shareholders as the Central Coast’s community bank.”
Jeff DeVine, President and Chief Executive Officer
American Riviera Bank reported an increased capital position with a Tier 1 Capital Ratio of 12%; well above the regulatory guideline of 8% for well capitalized institutions. The increased capital position was due to strong earnings and the completion of an $8.5 million common stock offering in the first quarter of 2019. The tangible book value per share of American Riviera Bank common stock is $13.07 at March 31, 2019, a 14% increase from $11.44 at March 31, 2018.
| Balance Sheets (unaudited) | |||||||
| (dollars in thousands) | |||||||
| Mar 31, | Mar 31, | One Year | |||||
| 2019 | 2018 | Change | |||||
| Assets | |||||||
| Cash & Due From Banks | $ 48,835 | $ 46,821 | 4% | ||||
| Fed Funds Sold | - | 616 | -100% | ||||
| Securities | 44,123 | 38,862 | 14% | ||||
| Loans | 520,857 | 432,345 | 20% | ||||
| Allowance For Loan Losses | (5,661) | (4,529) | 25% | ||||
| Net Loans | 515,196 | 427,816 | 20% | ||||
| Fixed Assets | 5,588 | 4,868 | 15% | ||||
| Goodwill and Other Intangibles | 5,472 | 5,650 | -3% | ||||
| Other Assets | 19,524 | 15,152 | 29% | ||||
| Total Assets | 638,738 | 539,785 | 18% | ||||
| Liabilities & Shareholders' Equity | |||||||
| Demand Deposits | 187,048 | 154,865 | 21% | ||||
| NOW Accounts | 76,370 | 94,113 | -19% | ||||
| Other Interest Bearing Deposits | 282,874 | 223,337 | 27% | ||||
| Total Deposits | 546,292 | 472,315 | 16% | ||||
| Borrowed Funds | 15,000 | 10,000 | 50% | ||||
| Other Liabilities | 6,562 | 1,640 | 300% | ||||
| Total Liabilities | 567,854 | 483,955 | 17% | ||||
| Common Stock | 54,513 | 45,848 | 19% | ||||
| Retained Earnings | 16,600 | 10,293 | 61% | ||||
| Other Capital | (229) | (311) | -26% | ||||
| Total Shareholders' Equity | 70,884 | 55,830 | 27% | ||||
| Total Liabilities & Shareholders' Equity | $ 638,738 | $ 539,785 | 18% | ||||
| Book Value Per Share | $ 14.16 | $ 12.72 | 11% | ||||
| Tangible Book Value Per Share | $ 13.07 | $ 11.44 | 14% | ||||
| Statements of Income (unaudited) | |||||||
| (dollars in thousands) | |||||||
| Quarter Ended | |||||||
| Mar 31, | Mar 31, | ||||||
| 2019 | 2018 | Change | |||||
| Interest Income | |||||||
| Interest and Fees on Loans | $ 6,680 | $ 5,335 | 25% | ||||
| Net Fair Value Amortization Income | 222 | 63 | 252% | ||||
| Interest on Securities | 284 | 183 | 55% | ||||
| Interest on Fed Funds | 1 | 11 | -91% | ||||
| Interest on Due From Banks | 198 | 147 | 35% | ||||
| Total Interest Income | 7,385 | 5,739 | 29% | ||||
| Interest Expense | |||||||
| Interest Expense on Deposits | 825 | 265 | 211% | ||||
| Interest Expense on Borrowings | 141 | 23 | 513% | ||||
| Total Interest Expense | 966 | 288 | 236% | ||||
| Net Interest Income | 6,418 | 5,451 | 18% | ||||
| Provision for Loan Losses | 175 | 268 | -35% | ||||
| Net Interest Income After Provision | 6,244 | 5,183 | 20% | ||||
| Non-Interest Income | |||||||
| Service Charges, Commissions and Fees | 427 | 436 | -2% | ||||
| Other Non-Interest Income | 166 | 114 | 46% | ||||
| Total Non-Interest Income | 593 | 550 | 8% | ||||
| Non-Interest Expense | |||||||
| Salaries and Employee Benefits | 2,692 | 2,354 | 14% | ||||
| Occupancy and Equipment | 494 | 391 | 26% | ||||
| Other Non-Interest Expense | 1,313 | 1,149 | 14% | ||||
| Total Non-Interest Expense | 4,499 | 3,894 | 16% | ||||
| Net Income Before Provision for Taxes | 2,338 | 1,839 | 27% | ||||
| Provision for Taxes | 570 | 487 | 17% | ||||
| Net Income | $ 1,768 | $ 1,352 | 31% | ||||
| Shares (end of period) | 5,020,829 | 4,412,919 | 14% | ||||
| Earnings Per Share - Basic | $ 0.35 | $ 0.31 | 13% | ||||
| Return on Average Assets (annualized) | 1.19% | 1.09% | |||||
| Return on Average Equity (annualized) | 11.90% | 10.27% | |||||
| Net Interest Margin (annualized) | 4.42% | 4.50% | |||||
