American Riviera Bank Exceeds Half a Billion in Assets and Expands into SLO County

SANTA BARBARA, Calif.--()--American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $3,501,000 ($0.80 per share) for the nine months ended September 30, 2017, an increase from $3,015,000 ($0.69 per share) for the first nine months of 2016. The annualized return on average assets of 0.99% and return on average equity of 8.92% represent an increase from the 0.95% and 8.69%, respectively, achieved for the same reporting period in the prior year. The Bank reported unaudited net income of $1,383,000 ($0.31 per share) for the third quarter ended September 30, 2017 compared to $1,409,000 ($0.32 per share) for the same quarter last year.

The Bank experienced significant organic growth in the last year, reporting $518 million in total assets as of September 30, 2017. Growth was driven by total deposits increasing 18% from September 30, 2016, reaching $462 million at September 30, 2017. Non-interest bearing demand deposits increased 20% from the same reporting period last year and now represent 35% of total deposits. Deposit origination volume is noteworthy, as the Bank has opened over 1,400 new accounts during the first nine months of 2017, which exceeds new account origination for the entire 2016 year.

Loan demand remained strong, with total loans increasing 17% from September 30, 2016, reaching $406 million at September 30, 2017 with no other real estate owned. The Bank reported an annualized net interest margin of 4.67% for the nine months ending September 30, 2017.

Jeff DeVine, President and Chief Executive Officer stated, “American Riviera Bank is pleased to announce a 16% increase in year to date earnings per share. We plan to re-invest some of our earnings with expansion into San Luis Obispo County as previously announced, and are excited to have our loan production office now open in Paso Robles with an excellent team to serve the community’s needs. We look forward to opening our full service branch in Paso Robles in early 2018.”

As of September 30, 2017, American Riviera Bank 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 common stock is $11.12 at September 30, 2017, a 9% increase from $10.24 at September 30, 2016.

Company Profile

American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers on the Central Coast of California. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Full-service branches are located at 1033 Anacapa Street in Santa Barbara, 525 San Ysidro Road in Montecito and 5880 Calle Real in Goleta. Loan production offices are located at 205 Oak Hill Road #106 in Paso Robles and 18 East Figueroa in 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 June 30, 2017, 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)
  Sept 30, Sept 30, One Year
    2017   2016   Change
Assets
Cash & Due From Banks $ 59,861 $ 52,996 13 %
Fed Funds Sold 11,428 38,458 -70 %
Securities 22,351 6,581 240 %
 
Loans 405,947 347,345 17 %
Allowance For Loan Losses   (4,076 )   (3,226 ) 26 %
Net Loans 401,871 344,119 17 %
 
Fixed Assets 1,261 1,351 -7 %
Goodwill and Other Intangibles 5,740 5,071 13 %
Other Assets   15,716     14,996   5 %
Total Assets   518,228     463,572   12 %
 
 
Liabilities & Shareholders' Equity
Demand Deposits 162,835 135,757 20 %
Interest Bearing Deposits   299,245     256,418   17 %
Total Deposits 462,080 392,175 18 %
 
Borrowed Funds - 20,000 -100 %
Other Liabilities   1,504     1,643   -8 %
Total Liabilities 463,584 413,818 12 %
 
Common Stock 42,820 42,946 0 %
Retained Earnings 11,851 6,810 74 %
Other Capital   (27 )   (2 ) 1250 %
Total Shareholders' Equity   54,644     49,754   10 %
     
Total Liabilities & Shareholders' Equity $ 518,228   $ 463,572   12 %
 
Book Value Per Share $ 12.42 $ 11.40 9 %
Tangible Book Value Per Share $ 11.12 $ 10.24 9 %
         
Statements of Income (unaudited)
(dollars in thousands)
  Quarter Ended 9 Months Ended
Sept 30, Sept 30, Sept 30, Sept 30,
    2017   2016   Change 2017   2016   Change
Interest Income
Interest and Fees on Loans $ 5,275 $ 4,780 10 % $ 15,186 $ 14,237 7 %
Net Fair Value Amortization Income 246 194 27 % 597 771 -23 %
Interest on Securities 85 23 264 % 145 80 81 %
Interest on Fed Funds 38 36 5 % 80 52 53 %
Interest on Due From Banks   142     44   222 %   317     123   159 %
Total Interest Income 5,786 5,077 14 % 16,325 15,263 7 %
 
Interest Expense
Interest Expense on Deposits 273 190 44 % 738 591 25 %
Interest Expense on Borrowings   1     30   -98 %   23     66   -65 %
Total Interest Expense   274     220   25 %   761     657   16 %
 
Net Interest Income 5,512 4,857 13 % 15,564 14,606 7 %
Provision for Loan Losses   68     137   -50 %   707     388   82 %
Net Interest Income After Provision 5,444 4,720 15 % 14,857 14,218 4 %
 
Non-Interest Income
Service Charges, Commissions and Fees 288 309 -7 % 863 927 -7 %
Other Non-Interest Income   74     88   -15 %   240     254   -6 %
Total Non-Interest Income 362 397 -9 % 1,103 1,181 -7 %
 
Non-Interest Expense
Salaries and Employee Benefits 2,027 1,783 14 % 5,880 5,740 2 %
Occupancy and Equipment 415 395 5 % 1,155 1,161 0 %
Other Non-Interest Expense   1,005     973   3 %   3,106     3,539   -12 %
Total Non-Interest Expense 3,447 3,151 9 % 10,141 10,440 -3 %
 
Net Income Before Provision for Taxes 2,359 1,966 20 % 5,819 4,959 17 %
Provision for Taxes   976     557   75 %   2,318     1,944   19 %
Net Income   1,383     1,409   -2 %   3,501     3,015   16 %
 
Shares (end of period) 4,400,663 4,362,930 1 % 4,400,663 4,362,930 1 %
Earnings Per Share - Basic $ 0.31 $ 0.32 -3 % $ 0.80 $ 0.69 16 %
 
Return on Average Assets (annualized) 1.06 % 1.23 % 0.99 % 0.95 %
Return on Average Equity (annualized) 9.90 % 11.25 % 8.92 % 8.69 %
Net Interest Margin (annualized) 4.62 % 4.57 % 4.67 % 4.84 %

Contacts

American Riviera Bank
Michelle Martinich, 805-965-5942
www.americanrivierabank.com

Contacts

American Riviera Bank
Michelle Martinich, 805-965-5942
www.americanrivierabank.com