American Riviera Bank Reports Record Quarterly Net Income

News item April 26, 2019 by Michelle Martinich

American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $1,768,000 ($0.35 per share) for the quarter ended March 31, 2019. 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.

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%

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