SANTA BARBARA, Calif.--(BUSINESS WIRE)--American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $956,000 ($0.22 per share) for the first quarter ended March 31, 2017, which represents a 426% increase from the $182,000 ($0.04 per share) reported for the first quarter ended March 31, 2016. The Bank reported an annualized return on average assets of 0.91% and return on average equity of 7.88%, which represents an increase from the 0.20% and 1.88%, respectively, achieved for the same reporting period prior year.
The Bank experienced strong loan demand in the first quarter, with loans increasing 8% from December 31, 2016, reaching $384 million in total loans at March 31, 2017 with no other real estate owned. Deposit growth was also substantial, with the Bank opening almost 500 new accounts at our three locations during the first quarter of 2017 and growing total deposits by 12% and demand accounts by 20% since one year ago. Non-interest bearing demand deposits have increased to 36% of the $412 million in total deposits at March 31, 2017, an increase from 33% at March 31, 2016.
Jeff DeVine, President and Chief Executive Officer, stated, “American Riviera Bank started 2017 strong, with significant loan and deposit origination this quarter. Last year, the merger required significant internal focus, but now that successful integration is behind us we’ve been able to shift our focus to expanding existing relationships and developing new customers.”
As of March 31, 2017, American Riviera Bank had $467 million in total assets, and maintained a strong capital position with a Tier 1 Capital Ratio of 11%; well above the regulatory guideline of 8% for well capitalized institutions. The tangible book value per share of American Riviera Bank’s common stock is $10.51 at March 31, 2017, an increase from $9.75 at March 31, 2016.
Company Profile
American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers in Santa Barbara and the surrounding communities. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Offices are located at 1033 Anacapa Street in Santa Barbara, 525 San Ysidro Road in Montecito, and 5880 Calle Real in Goleta. American Riviera Bank is the second-largest community bank based in the city of Santa Barbara. For seven consecutive years the Bank has been recognized for strong financial performance by the Findley Reports, and received the highest “Super Premier” rating from Findley for 2016. As of December 31, 2016, the Bank was rated five stars by BauerFinancial.
Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, effects of interest rate changes, ability to control costs and expenses, impact of consolidation in the banking industry, financial policies of the US government, and general economic conditions.
| Balance Sheets (unaudited) | ||||||||||||
| (dollars in thousands) | ||||||||||||
| Mar 31, | Mar 31, | One Year | ||||||||||
| 2017 | 2016 | Change | ||||||||||
| Assets | ||||||||||||
| Cash & Due From Banks | $ | 40,998 | $ | 31,584 | 30 | % | ||||||
| Fed Funds Sold | 14,978 | 971 | 1443 | % | ||||||||
| Securities | 8,405 | 7,733 | 9 | % | ||||||||
| Loans | 383,685 | 358,793 | 7 | % | ||||||||
| Allowance For Loan Losses | (3,735 | ) | (3,511 | ) | 6 | % | ||||||
| Net Loans | 379,950 | 355,282 | 7 | % | ||||||||
| Fixed Assets | 1,245 | 1,369 | -9 | % | ||||||||
| Goodwill and Other Intangibles | 5,829 | 4,579 | 27 | % | ||||||||
| Other Assets | 15,225 | 14,637 | 4 | % | ||||||||
| Total Assets | 466,630 | 416,155 | 12 | % | ||||||||
| Liabilities & Shareholders' Equity | ||||||||||||
| Demand Deposits | 146,654 | 121,937 | 20 | % | ||||||||
| Interest Bearing Deposits | 265,065 | 244,291 | 9 | % | ||||||||
| Total Deposits | 411,719 | 366,228 | 12 | % | ||||||||
| Borrowed Funds | 2,000 | 2,000 | 0 | % | ||||||||
| Other Liabilities | 1,029 | 1,365 | -25 | % | ||||||||
| Total Liabilities | 414,748 | 369,593 | 12 | % | ||||||||
| Common Stock | 42,825 | 42,712 | 0 | % | ||||||||
| Retained Earnings | 9,076 | 3,862 | 135 | % | ||||||||
| Other Capital | (19 | ) | (12 | ) | 58 | % | ||||||
| Total Shareholders' Equity | 51,882 | 46,562 | 11 | % | ||||||||
| Total Liabilities & Shareholders' Equity | $ | 466,630 | $ | 416,155 | 12 | % | ||||||
| Book Value Per Share | $ | 11.84 | $ | 10.81 | ||||||||
| Tangible Book Value Per Share | $ | 10.51 | $ | 9.75 | ||||||||
| Statements of Income (unaudited) | ||||||||||||
| (dollars in thousands) | ||||||||||||
| Quarter Ended | ||||||||||||
| Mar 31, | Mar 31, | |||||||||||
| 2017 | 2016 | Change | ||||||||||
| Interest Income | ||||||||||||
| Interest and Fees on Loans | $ | 5,023 | $ | 4,663 | 8 | % | ||||||
| Interest on Securities | 19 | 31 | -40 | % | ||||||||
| Interest on Fed Funds | 15 | 8 | 89 | % | ||||||||
| Interest on Due From Banks | 88 | 45 | 94 | % | ||||||||
| Total Interest Income | 5,144 | 4,747 | 8 | % | ||||||||
| Interest Expense | ||||||||||||
| Interest Expense on Deposits | 220 | 210 | 5 | % | ||||||||
| Interest Expense on Borrowings | 5 | 10 | -49 | % | ||||||||
| Total Interest Expense | 225 | 220 | 2 | % | ||||||||
| Net Interest Income | 4,920 | 4,527 | 9 | % | ||||||||
| Provision for Loan Losses | 387 | 86 | 350 | % | ||||||||
| Net Interest Income After Provision | 4,533 | 4,441 | 2 | % | ||||||||
| Non-Interest Income | ||||||||||||
| Service Charges, Commissions and Fees | 275 | 196 | 40 | % | ||||||||
| Other Non-Interest Income | 88 | 83 | 7 | % | ||||||||
| Total Non-Interest Income | 363 | 279 | 30 | % | ||||||||
| Non-Interest Expense | ||||||||||||
| Salaries and Employee Benefits | 1,955 | 2,188 | -11 | % | ||||||||
| Occupancy and Equipment | 369 | 391 | -5 | % | ||||||||
| Other Non-Interest Expense | 974 | 1,504 | -35 | % | ||||||||
| Total Non-Interest Expense | 3,298 | 4,084 | -19 | % | ||||||||
|
Net Income Before Provision for Taxes |
1,597 | 636 | 151 | % | ||||||||
| Provision for Taxes | 641 | 455 | 41 | % | ||||||||
| Net Income | 956 | 182 | 426 | % | ||||||||
| Shares (end of period) | 4,382,260 | 4,308,372 | 2 | % | ||||||||
| Earnings Per Share - Basic | $ | 0.22 | $ | 0.04 | 418 | % | ||||||
| Return on Average Assets (annualized) | 0.91 | % | 0.20 | % | ||||||||
| Return on Average Equity (annualized) | 7.88 | % | 1.88 | % | ||||||||
| Net Interest Margin (annualized) | 4.77 | % | 4.63 | % | ||||||||
