American Riviera Bank Reports Loan and Deposit Growth

SANTA BARBARA, Calif.--()--American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $4,821,000 ($0.96 per share) for the nine months ended September 30, 2019. This represents a 10% increase in net income from the $4,398,000 ($0.99 per share) for the same reporting period in the prior year. The Bank reported an annualized return on average assets of 1.00% and return on average equity of 9.36%. The Bank reported unaudited net income of $1,547,000 ($0.31 per share) for the third quarter ended September 30, 2019 compared to $1,571,000 ($0.35 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 quarter ended March 31, 2019.

The Bank continues to experience significant growth, reporting $697 million in total assets as of September 30, 2019. Total deposits increased 20% from September 30, 2018 reaching $603 million at September 30, 2019. Non-interest bearing demand deposit accounts increased $41 million, or 25% from the same reporting period last year, reaching $208 million at September 30, 2019.

The Bank reported strong loan growth, with gross loans increasing $59 million, or 12% from September 30, 2018, reaching $548 million at September 30, 2019, with no other real estate owned and no loans 30 days or more past due. The Bank’s net interest income increased by approximately $2.1 million, or 12% for the nine months ended September 30, 2019, compared to the same reporting period in the prior year. The Bank reported an annualized net interest margin of 4.30% for the nine months ended September 30, 2019, reflecting only modest compression from the 4.47% reported for the same reporting period last year.

Jeff DeVine, President and Chief Executive Officer stated, We continue to invest in the expansion of the Bank and consistently report strong earnings. This is a direct result of our loan and deposit growth, expanded regional presence and the strength of our relationships throughout the Santa Barbara and San Luis Obispo Counties.”

As of September 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 $13.74 at September 30, 2019, a 15% increase from $11.96 at September 30, 2018.

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 in Santa Barbara, Montecito, Goleta, San Luis Obispo and Paso Robles. The bank provides commercial, residential mortgage, construction and Small Business Administration lending services as well as convenient online and mobile technology. For nine 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 2018 and 2017. As of June 30, 2019, 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)

Sep 30,

 

Sep 30,

 

One Year

2019

 

2018

 

Change

Assets
Cash & Due From Banks

$ 79,101

$ 31,392

152%

Fed Funds Sold

-

-

-

Securities

41,797

46,549

-10%

 
Loans

547,956

489,401

12%

Allowance For Loan Losses

(6,145)

(5,242)

17%

Net Loans

541,811

484,159

12%

 
Premise & Equipment

6,812

5,308

28%

Goodwill and Other Intangibles

5,382

5,561

-3%

Other Assets (a)

22,364

16,034

39%

Total Assets

$ 697,267

$ 589,003

18%

 
 
Liabilities & Shareholders' Equity
Demand Deposits

$ 207,643

$ 166,145

25%

NOW Accounts

79,509

86,543

-8%

Other Interest Bearing Deposits

316,124

250,958

26%

Total Deposits

603,276

503,646

20%

 
Borrowed Funds

10,000

24,000

-58%

Other Liabilities (a)

9,452

2,295

312%

Total Liabilities

622,728

529,941

18%

 
Common Stock (b)

54,889

46,400

18%

Retained Earnings

19,653

13,339

47%

Other Capital

(3)

(677)

-100%

Total Shareholders' Equity

74,539

59,062

26%

 
Total Liabilities & Shareholders' Equity

$ 697,267

$ 589,003

18%

 
Notes:
(a) Other assets and other liabilities primarily increased due to the adoption of ASU2016-02, "Leases (Topic 842)" as of January 1, 2019. As of September 30, 2019 the right of use asset totals $5.6 million and the operating lease liability is $6 million.
(b) Common stock increased in the first quarter 2019 due to $8.5 million common stock capital raise.
Balance Sheets (unaudited)
(dollars in thousands)

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

2019

 

2019

 

2019

 

2018

 

2018

Assets
Cash & Due From Banks

$ 79,101

$ 47,640

$ 48,835

$ 41,271

$ 31,392

Fed Funds Sold

-

-

-

-

-

Securities

41,797

42,961

44,123

46,010

46,549

 
Loans

547,956

541,869

520,857

508,397

489,401

Allowance For Loan Losses

(6,145)

(5,883)

(5,661)

(5,542)

(5,242)

Net Loans

541,811

535,986

515,196

502,855

484,159

 
Premise & Equipment

6,812

6,528

5,588

5,299

5,308

Goodwill and Other Intangibles

5,382

5,427

5,472

5,516

5,561

Other Assets (a)

22,364

23,054

19,524

15,501

16,034

Total Assets

$ 697,267

$ 661,596

$ 638,738

$ 616,452

$ 589,003

 
 
Liabilities & Shareholders' Equity
Demand Deposits

$ 207,643

$ 186,845

$ 187,048

$ 169,549

$ 166,145

NOW Accounts

79,509

73,782

76,370

73,652

86,543

Other Interest Bearing Deposits

316,124

304,223

282,874

270,106

250,958

Total Deposits

603,276

564,850

546,292

513,307

503,646

 
Borrowed Funds

10,000

15,000

15,000

40,000

24,000

Other Liabilities (a)

9,452

8,806

6,562

2,258

2,295

Total Liabilities

622,728

588,656

567,854

555,565

529,941

 
Common Stock (b)

54,889

54,739

54,513

46,477

46,400

Retained Earnings

19,653

18,105

16,600

14,831

13,339

Other Capital

(3)

96

(229)

(421)

(677)

Total Shareholders' Equity

74,539

72,940

70,884

60,887

59,062

 
Total Liabilities & Shareholders' Equity

$ 697,267

$ 661,596

$ 638,738

$ 616,452

$ 589,003

 
Notes:
(a) Other assets and other liabilities primarily increased due to the adoption of ASU2016-02, "Leases (Topic 842)" as of January 1, 2019. As of September 30, 2019 the right of use asset totals $5.6 million and the operating lease liability is $6 million. The San Luis Obispo branch was added for the quarter ending June 30, 2019.

(b) Common stock increased in the first quarter 2019 due to $8.5 million common stock capital raise.

Statements of Income (unaudited)
(dollars in thousands, except per share data)

Quarter Ended

 

Nine Months Ended

Sep 30,

 

Sep 30,

 

 

 

Sep 30,

 

Sep 30,

 

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

Interest Income
Interest and Fees on Loans

$ 7,224

$ 6,256

15%

$ 20,896

$ 17,294

21%

Net Fair Value Amortization Income

71

118

-40%

379

424

-11%

Interest on Securities

264

266

-1%

778

702

11%

Interest on Fed Funds

0

1

-100%

1

12

-92%

Interest on Due From Banks

291

167

74%

694

436

59%

Total Interest Income

7,850

6,808

15%

22,748

18,868

21%

 
Interest Expense
Interest Expense on Deposits

1,065

622

71%

2,887

1,214

138%

Interest Expense on Borrowings

32

6

433%

234

126

86%

Total Interest Expense

1,097

628

75%

3,121

1,340

133%

 
Net Interest Income

6,753

6,180

9%

19,627

17,528

12%

Provision for Loan Losses

205

294

-30%

600

925

-35%

Net Interest Income After Provision

6,548

5,886

11%

19,027

16,603

15%

 
Non-Interest Income
Service Charges, Commissions and Fees

523

397

32%

1,530

1,242

23%

Other Non-Interest Income

216

60

260%

495

258

92%

Total Non-Interest Income

739

457

62%

2,025

1,500

35%

 
Non-Interest Expense
Salaries and Employee Benefits

3,137

2,429

29%

8,710

7,061

23%

Occupancy and Equipment

653

483

35%

1,693

1,304

30%

Other Non-Interest Expense

1,303

1,210

8%

3,982

3,585

11%

Total Non-Interest Expense

5,093

4,122

24%

14,385

11,950

20%

 
Net Income Before Provision for Taxes

2,194

2,221

-1%

6,667

6,153

8%

Provision for Taxes

647

650

0%

1,846

1,755

5%

Net Income

$ 1,547

$ 1,571

-2%

$ 4,821

$ 4,398

10%

 
Shares (end of period)

5,031,788

4,459,269

13%

5,031,788

4,459,269

13%

Earnings Per Share - Basic

$ 0.31

$ 0.35

-11%

$ 0.96

$ 0.99

-3%

Return on Average Assets

0.89%

1.03%

-14%

1.00%

1.06%

-6%

Return on Average Equity

8.09%

10.39%

-22%

9.36%

10.38%

-10%

Net Interest Margin

4.23%

4.39%

-4%

4.30%

4.47%

-4%

Five Quarter Statements of Income (unaudited)
(dollars in thousands)

Three Months Ended

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

2019

 

2019

 

2019

 

2018

 

2018

Interest Income
Interest and Fees on Loans

$ 7,224

$ 6,992

$ 6,680

$ 6,533

$ 6,256

Net Fair Value Amortization Income

71

86

222

423

118

Interest on Securities

264

230

284

297

266

Interest on Fed Funds

-

-

1

-

1

Interest on Due From Banks

291

205

198

165

167

Total Interest Income

7,850

7,513

7,385

7,418

6,808

 
Interest Expense
Interest Expense on Deposits

1,065

998

825

681

622

Interest Expense on Borrowings

32

60

141

73

6

Total Interest Expense

1,097

1,058

966

754

628

 
Net Interest Income

6,753

6,455

6,418

6,664

6,180

Provision for Loan Losses

205

220

175

369

294

Net Interest Income After Provision

6,548

6,235

6,244

6,295

5,886

 
Non-Interest Income
Service Charges, Commissions and Fees

523

580

427

289

397

Other Non-Interest Income (a)

216

113

166

(53)

60

Total Non-Interest Income

739

693

593

236

457

 
Non-Interest Expense
Salaries and Employee Benefits

3,137

2,881

2,692

2,633

2,429

Occupancy and Equipment

653

546

494

503

483

Other Non-Interest Expense

1,303

1,366

1,313

1,212

1,210

Total Non-Interest Expense

5,093

4,793

4,499

4,348

4,122

 
Net Income Before Provision for Taxes

2,194

2,135

2,338

2,183

2,221

Provision for Taxes

647

629

570

691

650

Net Income

$ 1,547

$ 1,506

$ 1,768

$ 1,492

$ 1,571

 
Shares (end of period)

5,031,788

5,028,906

5,020,829

4,461,068

4,459,269

Earnings Per Share - Basic

$ 0.31

$ 0.30

$ 0.35

$ 0.33

$ 0.35

Notes:

(a) The Bank conducted a Bank Owned Life Insurance carrier exchange that cost $170k in other non-interest income during the quarter ended December 31, 2018 .

Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

At or for the Three Months Ended

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

2019

 

2019

 

2019

 

2018

 

2018

Income and performance ratios:
Net Income

$ 1,547

$ 1,506

$ 1,768

$ 1,492

$ 1,571

Eamings per share - basic

0.31

0.30

0.35

0.33

0.35

Retum on average assets

0.89%

0.95%

1.19%

0.95%

1.03%

Return on average equity

8.09%

8.46%

11.90%

9.60%

10.39%

Net interest margin

4.23%

4.27%

4.42%

4.61%

4.39%

Efficiency ratio

68.46%

66.90%

63.40%

63.45%

62.55%

 
Asset quality:
Allowance for loan and lease losses

$ 6,145

$ 5,883

$ 5,661

$ 5,542

$ 5,242

Nonperforming assets

276

281

292

349

359

Allowance for loan and lease losses / total loans and leases

1.12%

1.09%

1.09%

1.09%

1.06%

Net charge-offs / average loans and leases (annualized)

0.00%

0.02%

0.04%

0.00%

0.00%

Texas ratio

0.37%

0.38%

0.41%

0.57%

0.61%

 
Other ratios:
Tier 1 risk-based capital (a)

11.56%

11.56%

11.76%

10.30%

10.35%

Total risk-based capital (a)

12.62%

12.61%

12.81%

11.36%

11.38%

Common equity tier 1 risk-based capital (a)

11.56%

11.56%

11.76%

10.30%

10.35%

Tier 1 leverage ratio (a)

10.32%

10.48%

10.55%

9.21%

9.13%

 
Equity and share related:
Common equity

$ 74,539

$ 72,940

$ 70,884

$ 60,887

$ 59,062

Book value per share

14.81

14.49

14.16

13.74

13.40

Tangible book value per share

13.74

13.41

13.07

12.51

11.96

Stock closing price per share

17.85

18.35

18.25

17.85

19.20

Number of shares issued and outstanding

5,032

5,029

5,021

4,461

4,459

 
Notes:
(a) Presented as projected for most recent quarter and actual for the remaining periods.

 

Contacts

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

Contacts

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