SANTA BARBARA, Calif.--(BUSINESS WIRE)--American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $2,118,000 ($0.48 per share) for the six months ended June 30, 2017, an increase from $1,606,000 ($0.37 per share) for the first six months of 2016. The annualized return on average assets of 0.95% and return on average equity of 8.40% represent an increase from the 0.80% and 7.31%, respectively, achieved for the same reporting period in the prior year. The Bank reported unaudited net income of $1,163,000 ($0.27 per share) for the second quarter ended June 30, 2017 compared to $1,424,000 ($0.33 per share) for the same quarter last year. The second quarter of 2016 included $577,000 of non-recurring interest income related to merger accounting, resulting in higher reportable earnings compared to the second quarter of 2017.
The Bank experienced significant growth in the last year, reporting $496 million in total assets as of June 30, 2017. Asset growth was made possible by total deposits increasing 24% from June 30, 2016, reaching $440 million at June 30, 2017. Non-interest bearing demand deposits increased 28% from the same reporting period last year. Deposit origination volume is noteworthy, with the Bank opening over 900 new accounts at our three locations during the first six months of 2017.
Loan demand remained strong, with total loans increasing 11% from June 30, 2016, reaching $397 million at June 30, 2017 with no other real estate owned. The Bank reported an annualized net interest margin of 4.70% for the six months ending June 30, 2017.
Jeff DeVine, President and Chief Executive Officer, stated, “American Riviera Bank has made significant gains in market share this year by focusing on the needs of our clients. We look forward to providing the same dedication to Paso Robles and surrounding communities with the opening of our loan production office in August and our full service branch by early 2018. We strive to balance quality growth with earnings and are pleased to report that as of June 30, 2017 our share price has increased 55% from last year.”
As of June 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 $10.81 at June 30, 2017, an increase from $10.03 at June 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. Offices are located at 1033 Anacapa Street in Santa Barbara, 525 San Ysidro Road in Montecito, and 5880 Calle Real in Goleta. 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) | |||||||||||||
| Jun 30, | Jun 30, | One Year | |||||||||||
| 2017 | 2016 | Change | |||||||||||
| Assets | |||||||||||||
| Cash & Due From Banks | $ | 46,054 | $ | 35,322 | 30 | % | |||||||
| Fed Funds Sold | 15,841 | 9,114 | 74 | % | |||||||||
| Securities | 18,695 | 7,456 | 151 | % | |||||||||
| Loans | 396,876 | 358,233 | 11 | % | |||||||||
| Allowance For Loan Losses | (4,001 | ) | (3,054 | ) | 31 | % | |||||||
| Net Loans | 392,875 | 355,179 | 11 | % | |||||||||
| Fixed Assets | 1,210 | 1,362 | -11 | % | |||||||||
| Goodwill and Other Intangibles | 5,785 | 4,770 | 21 | % | |||||||||
| Other Assets | 15,369 | 15,052 | 2 | % | |||||||||
| Total Assets | 495,829 | 428,255 | 16 | % | |||||||||
| Liabilities & Shareholders' Equity | |||||||||||||
| Demand Deposits | 159,289 | 124,802 | 28 | % | |||||||||
| Interest Bearing Deposits | 280,232 | 229,366 | 22 | % | |||||||||
| Total Deposits | 439,521 | 354,168 | 24 | % | |||||||||
| Borrowed Funds | 2,000 | 24,000 | -92 | % | |||||||||
| Other Liabilities | 1,092 | 1,983 | -45 | % | |||||||||
| Total Liabilities | 442,613 | 380,151 | 16 | % | |||||||||
| Common Stock | 42,824 | 42,711 | 0 | % | |||||||||
| Retained Earnings | 10,384 | 5,390 | 93 | % | |||||||||
| Other Capital | 8 | 3 | 167 | % | |||||||||
| Total Shareholders' Equity | 53,216 | 48,104 | 11 | % | |||||||||
| Total Liabilities & Shareholders' Equity | $ | 495,829 | $ | 428,255 | 16 | % | |||||||
| Book Value Per Share | $ | 12.13 | $ | 11.13 | |||||||||
| Tangible Book Value Per Share | $ | 10.81 | $ | 10.03 | |||||||||
| Statements of Income (unaudited) | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Quarter Ended | 6 Months Ended | ||||||||||||||||||||||
| Jun 30, | Jun 30, | Jun 30, | Jun 30, | ||||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
| Interest Income | |||||||||||||||||||||||
| Interest and Fees on Loans | $ | 5,006 | $ | 4,794 | 4 | % | $ | 9,794 | $ | 9,457 | 4 | % | |||||||||||
| Net Fair Value Amortization Income | 233 | 577 | -60 | % | 468 | 577 | -19 | % | |||||||||||||||
| Interest on Securities | 41 | 25 | 64 | % | 60 | 57 | 6 | % | |||||||||||||||
| Interest on Fed Funds | 28 | 9 | 223 | % | 42 | 16 | 159 | % | |||||||||||||||
| Interest on Due From Banks | 87 | 33 | 162 | % | 175 | 78 | 124 | % | |||||||||||||||
| Total Interest Income | 5,395 | 5,438 | -1 | % | 10,539 | 10,185 | 3 | % | |||||||||||||||
| Interest Expense | |||||||||||||||||||||||
| Interest Expense on Deposits | 245 | 191 | 28 | % | 464 | 401 | 16 | % | |||||||||||||||
| Interest Expense on Borrowings | 18 | 25 | -29 | % | 23 | 35 | -34 | % | |||||||||||||||
| Total Interest Expense | 263 | 216 | 21 | % | 487 | 436 | 12 | % | |||||||||||||||
| Net Interest Income | 5,132 | 5,221 | -2 | % | 10,052 | 9,749 | 3 | % | |||||||||||||||
| Provision for Loan Losses | 252 | 165 | 52 | % | 639 | 251 | 154 | % | |||||||||||||||
| Net Interest Income After Provision | 4,880 | 5,056 | -3 | % | 9,413 | 9,498 | -1 | % | |||||||||||||||
| Non-Interest Income | |||||||||||||||||||||||
| Service Charges, Commissions and Fees | 302 | 420 | -28 | % | 576 | 632 | -9 | % | |||||||||||||||
| Other Non-Interest Income | 76 | 85 | -11 | % | 165 | 152 | 8 | % | |||||||||||||||
| Total Non-Interest Income | 378 | 505 | -25 | % | 741 | 784 | -5 | % | |||||||||||||||
| Non-Interest Expense | |||||||||||||||||||||||
| Salaries and Employee Benefits | 1,898 | 1,768 | 7 | % | 3,854 | 3,957 | -3 | % | |||||||||||||||
| Occupancy and Equipment | 372 | 375 | -1 | % | 741 | 766 | -3 | % | |||||||||||||||
| Other Non-Interest Expense | 1,125 | 1,062 | 6 | % | 2,099 | 2,566 | -18 | % | |||||||||||||||
| Total Non-Interest Expense | 3,395 | 3,205 | 6 | % | 6,694 | 7,289 | -8 | % | |||||||||||||||
| Net Income Before Provision for Taxes | 1,863 | 2,356 | -21 | % | 3,460 | 2,993 | 16 | % | |||||||||||||||
| Provision for Taxes | 700 | 932 | -25 | % | 1,342 | 1,387 | -3 | % | |||||||||||||||
| Net Income | 1,163 | 1,424 | -18 | % | 2,118 | 1,606 | 32 | % | |||||||||||||||
| Shares (end of period) | 4,387,369 | 4,322,252 | 2 | % | 4,387,369 | 4,322,252 | 2 | % | |||||||||||||||
| Earnings Per Share - Basic | $ | 0.27 | $ | 0.33 | -20 | % | $ | 0.48 | $ | 0.37 | 30 | % | |||||||||||
| Return on Average Assets (annualized) | 0.99 | % | 1.39 | % | 0.95 | % | 0.80 | % | |||||||||||||||
| Return on Average Equity (annualized) | 8.92 | % | 12.32 | % | 8.40 | % | 7.31 | % | |||||||||||||||
| Net Interest Margin (annualized) | 4.63 | % | 5.34 | % | 4.70 | % | 4.98 | % | |||||||||||||||
