The Bank reported an annualized return on average assets of 1.07% and return on average equity of 10.06%. The Bank reported unaudited net income of $1,506,000 ($0.30 per share) for the second quarter ended June 30, 2019 compared to $1,475,000 ($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 first quarter ended March 31, 2019.
The Bank continues to experience significant growth, reporting $662 million in total assets as of June 30, 2019. Total deposits, excluding wholesale deposits, increased 16% from June 30, 2018. The Bank had $5 million of wholesale deposits at June 30, 2019, down from the $49 million at June 30, 2018. Over the past twelve months the Bank has replaced these wholesale deposits with local customer deposits. Non-interest bearing demand deposit accounts increased $18 million, or 11% from the same reporting period last year, reaching $187 million at June 30, 2019.
The Bank reported strong loan growth, with gross loans increasing $64 million, or 13% from June 30, 2018, reaching $542 million at June 30, 2019, with no other real estate owned and no loans 30 or more days past due. The Bank’s net interest income increased by approximately $1.5 million, or 13% for the six months ended June 30, 2019, compared to the same reporting period in the prior year. The Bank reported an annualized net interest margin of 4.34% for the six months ended June 30, 2019, reflecting only modest compression from the 4.52% reported for the same reporting period last year.
“We continue to invest in our expansion and are pleased to announce the opening of our full service branch in the City of San Luis Obispo which will allow us to better serve the needs of businesses and consumers in San Luis Obispo County. We look forward to welcoming new clients affected by mega-mergers who will benefit from our high level of service built on relationships with local decision makers.”
Jeff DeVine, President and Chief Executive Officer
As of June 30, 2019, American Riviera Bank has a strong capital position with a Tier 1 Capital Ratio of 12%; well above the regulatory guideline of 8% for well capitalized institutions. The tangible book value per share of American Riviera Bank common stock is $13.41 at June 30, 2019, a 14% increase from $11.80 at June 30, 2018.
| Balance Sheets (unaudited) | |||||||
| (dollars in thousands) | |||||||
| Jun 30, | Jun 30, | One Year | |||||
| 2019 | 2018 | Change | |||||
| Assets | |||||||
| Cash & Due From Banks | $ 47,640 | $ 42,796 | 11% | ||||
| Fed Funds Sold | - | - | - | ||||
| Securities | 42,961 | 48,274 | -11% | ||||
| Loans | 541,869 | 477,837 | 13% | ||||
| Allowance For Loan Losses | (5,883) | (4,895) | 20% | ||||
| Net Loans | 535,986 | 472,942 | 13% | ||||
| Fixed Assets | 6,528 | 5,294 | 23% | ||||
| Goodwill and Other Intangibles | 5,427 | 5,606 | -3% | ||||
| Other Assets | 23,054 | 16,320 | 41% | ||||
| Total Assets | 661,596 | 591,232 | 12% | ||||
| Liabilities & Shareholders' Equity | |||||||
| Demand Deposits | 186,845 | 168,609 | 11% | ||||
| NOW Accounts | 73,782 | 86,543 | -15% | ||||
| Other Interest Bearing Deposits | 304,223 | 276,460 | 10% | ||||
| Total Deposits | 564,850 | 531,612 | 6% | ||||
| Borrowed Funds | 15,000 | - | N/M | ||||
| Other Liabilities | 8,806 | 2,134 | 313% | ||||
| Total Liabilities | 588,656 | 533,746 | 10% | ||||
| Common Stock | 54,739 | 46,212 | 18% | ||||
| Retained Earnings | 18,105 | 11,768 | 54% | ||||
| Other Capital | 96 | (494) | N/M | ||||
| Total Shareholders' Equity | 72,940 | 57,486 | 27% | ||||
| Total Liabilities & Shareholders' Equity | $ 661,596 | $ 591,232 | 12% | ||||
| Book Value Per Share | $ 14.49 | $ 13.06 | 11% | ||||
| Tangible Book Value Per Share | $ 13.41 | $ 11.80 | 14% | ||||
| Statements of Income (unaudited) | |||||||||||||
| (dollars in thousands) | |||||||||||||
| Quarter Ended | 6 Months Ended | ||||||||||||
| Jun 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||
| 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||
| Interest Income | |||||||||||||
| Interest and Fees on Loans | $ 6,992 | $ 5,769 | 21% | $ 13,672 | $ 11,037 | 24% | |||||||
| Net Fair Value Amortization Income | 86 | 176 | -51% | 308 | 306 | 1% | |||||||
| Interest on Securities | 230 | 253 | -9% | 514 | 437 | 18% | |||||||
| Interest on Fed Funds | 0 | 1 | -100% | 1 | 11 | -91% | |||||||
| Interest on Due From Banks | 205 | 122 | 68% | 403 | 269 | 50% | |||||||
| Total Interest Income | 7,513 | 6,321 | 19% | 14,898 | 12,060 | 24% | |||||||
| Interest Expense | |||||||||||||
| Interest Expense on Deposits | 998 | 326 | 206% | 1,822 | 592 | 208% | |||||||
| Interest Expense on Borrowings | 60 | 98 | -39% | 202 | 120 | 68% | |||||||
| Total Interest Expense | 1,058 | 424 | 150% | 2,024 | 712 | 184% | |||||||
| Net Interest Income | 6,455 | 5,897 | 9% | 12,874 | 11,348 | 13% | |||||||
| Provision for Loan Losses | 220 | 363 | -39% | 395 | 631 | -37% | |||||||
| Net Interest Income After Provision | 6,235 | 5,534 | 13% | 12,479 | 10,717 | 16% | |||||||
| Non-Interest Income | |||||||||||||
| Service Charges, Commissions and Fees | 580 | 409 | 42% | 1,007 | 845 | 19% | |||||||
| Other Non-Interest Income | 113 | 84 | 35% | 279 | 198 | 41% | |||||||
| Total Non-Interest Income | 693 | 493 | 41% | 1,286 | 1,043 | 23% | |||||||
| Non-Interest Expense | |||||||||||||
| Salaries and Employee Benefits | 2,881 | 2,278 | 26% | 5,573 | 4,631 | 20% | |||||||
| Occupancy and Equipment | 546 | 429 | 27% | 1,040 | 821 | 27% | |||||||
| Other Non-Interest Expense | 1,366 | 1,227 | 11% | 2,679 | 2,376 | 13% | |||||||
| Total Non-Interest Expense | 4,793 | 3,934 | 22% | 9,292 | 7,828 | 19% | |||||||
| Net Income Before Provision for Taxes | 2,135 | 2,093 | 2% | 4,473 | 3,932 | 14% | |||||||
| Provision for Taxes | 629 | 618 | 2% | 1,199 | 1,105 | 9% | |||||||
| Net Income | $ 1,506 | $ 1,475 | 2% | $ 3,274 | $ 2,827 | 16% | |||||||
| Shares (end of period) | 5,028,906 | 4,440,082 | 13% | 5,028,906 | 4,440,082 | 13% | |||||||
| Earnings Per Share - Basic | $ 0.30 | $ 0.33 | -9% | $ 0.65 | $ 0.64 | 2% | |||||||
| Return on Average Assets (annualized) | 0.95% | 1.07% | 1.07% | 1.08% | |||||||||
| Return on Average Equity (annualized) | 8.46% | 10.47% | 10.06% | 10.37% | |||||||||
| Net Interest Margin (annualized) | 4.27% | 4.54% | 4.34% | 4.52% | |||||||||
