American Riviera Bank Reports 20% Core Loan Growth

SANTA BARBARA, Calif.--()--American Riviera Bank (OTCQX: ARBV) announced today unaudited net income of $9,082,000 ($1.77 per share) for the nine months ended September 30, 2021. This represents an 82% increase in net income from the $5,000,000 ($0.99 per share) earned in the same reporting period in the prior year. In 2021, the Bank has achieved an annualized return on average assets of 1.12% and return on average equity of 13.64%. Unaudited net income was $2,950,000 ($0.58 per share) for the third quarter ended September 30, 2021, compared to the $2,264,000 ($0.45 per share) earned in the same reporting period in the prior year.

Core loans, excluding SBA PPP loans, have grown 20% or $124 million over the last year since September 30, 2020. Year to date, core loans excluding PPP loans have grown 14% or $87 million since December 31, 2020. PPP loans totaled $51 million at September 30, 2021, with $102 million processed by the Bank and approved for forgiveness by the SBA during the nine months ended September 30, 2021. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $3.3 million or 0.46% of total loans excluding PPP on non-accrual status, which are well supported by collateral.

American Riviera Bank continues to experience tremendous deposit growth with a 35% or $287 million increase in total deposits over the last year since September 30, 2020. Non-interest bearing demand deposits increased 32% or $104 million since September 30, 2020. Deposit inflows from our clients have been the driving factor in the total assets of the Bank increasing $288 million since September 30, 2020 to a total of $1.2 billion at September 30, 2021.

Jeff DeVine, President and Chief Executive Officer noted, “Each day clients throughout the Central Coast entrust us with more of their business. This is reflected in our strong organic loan and deposit growth. I am proud of our team who have partnered with our communities, supported our clients and made new relationships despite challenges presented by the pandemic.”

As of September 30, 2021, American Riviera Bank continues to be well capitalized 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 increased to $17.34 at September 30, 2021.

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 eleven consecutive years the Bank has been recognized for strong financial performance by the Findley Reports, and has received the highest “Super Premier” rating from Findley every year since 2016. The Bank was rated “Outstanding” by the Federal Deposit Insurance Corporation in 2020 for its performance under the Community Reinvestment Act.

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

 

 

2021

 

 

2020

 

Change

Assets

Cash & Due From Banks

$

262,965

 

$

105,157

 

150

%

Securities

 

146,937

 

 

73,886

 

99

%

 

 

Loans (excluding PPP)

 

728,316

 

 

604,728

 

20

%

PPP Loans

 

50,966

 

 

117,361

 

-57

%

Allowance For Loan Losses

 

(9,376

)

 

(8,040

)

17

%

Net Loans

 

769,906

 

 

714,049

 

8

%

 

 

Premise & Equipment

 

6,041

 

 

6,634

 

-9

%

Goodwill and Other Intangibles

 

5,024

 

 

5,203

 

-3

%

Other Assets

 

27,289

 

 

25,287

 

8

%

Total Assets

$

1,218,162

 

$

930,216

 

31

%

 

 

 

 

Liabilities & Shareholders' Equity

Demand Deposits

$

435,489

 

$

331,035

 

32

%

NOW Accounts

 

177,952

 

 

110,476

 

61

%

Other Interest Bearing Deposits

 

502,237

 

 

387,293

 

30

%

Total Deposits

 

1,115,678

 

 

828,804

 

35

%

 

 

Borrowed Funds

 

-

 

 

10,000

 

-100

%

Other Liabilities

 

8,665

 

 

9,311

 

-7

%

Total Liabilities

 

1,124,343

 

 

848,115

 

33

%

 

 

Common Stock

 

56,302

 

 

55,571

 

1

%

Retained Earnings

 

37,685

 

 

26,224

 

44

%

Other Capital

 

(168

)

 

306

 

-155

%

Total Shareholders' Equity

 

93,819

 

 

82,101

 

14

%

 

 

Total Liabilities & Shareholders' Equity

$

1,218,162

 

$

930,216

 

31

%

Balance Sheets (unaudited)
(dollars in thousands)
September 30, June 30, March, 31 December, 31 September, 30

 

2021

 

 

2021

 

 

2021

 

 

2020

 

 

2020

 

Assets
Cash & Due From Banks

$

262,965

 

$

233,502

 

$

187,886

 

$

129,732

 

$

105,157

 

Securities

 

146,937

 

 

110,403

 

 

86,587

 

 

86,942

 

 

73,886

 

 
Loans (excluding PPP)

 

728,316

 

 

701,399

 

 

661,520

 

 

641,603

 

 

604,728

 

PPP Loans

 

50,966

 

 

76,093

 

 

119,429

 

 

84,464

 

 

117,361

 

Allowance For Loan Losses

 

(9,376

)

 

(9,373

)

 

(8,817

)

 

(8,467

)

 

(8,040

)

Net Loans

 

769,906

 

 

768,119

 

 

772,132

 

 

717,600

 

 

714,049

 

 
Premise & Equipment

 

6,041

 

 

6,229

 

 

6,365

 

 

6,458

 

 

6,634

 

Goodwill and Other Intangibles

 

5,024

 

 

5,069

 

 

5,114

 

 

5,158

 

 

5,203

 

Other Assets

 

27,289

 

 

26,947

 

 

25,242

 

 

25,733

 

 

25,287

 

Total Assets

$

1,218,162

 

$

1,150,269

 

$

1,083,326

 

$

971,623

 

$

930,216

 

 
 
Liabilities & Shareholders' Equity
Demand Deposits

$

435,489

 

$

428,577

 

$

405,264

 

$

332,995

 

$

331,035

 

NOW Accounts

 

177,952

 

 

170,029

 

 

144,591

 

 

128,266

 

 

110,476

 

Other Interest Bearing Deposits

 

502,237

 

 

452,867

 

 

433,310

 

 

410,837

 

 

387,293

 

Total Deposits

 

1,115,678

 

 

1,051,473

 

 

983,165

 

 

872,098

 

 

828,804

 

 
Borrowed Funds

 

-

 

 

-

 

 

5,000

 

 

5,000

 

 

10,000

 

Other Liabilities

 

8,665

 

 

7,986

 

 

8,705

 

 

9,606

 

 

9,311

 

Total Liabilities

 

1,124,343

 

 

1,059,459

 

 

996,870

 

 

886,704

 

 

848,115

 

 
Common Stock

 

56,302

 

 

56,146

 

 

55,821

 

 

55,738

 

 

55,571

 

Retained Earnings

 

37,685

 

 

34,735

 

 

31,163

 

 

28,603

 

 

26,224

 

Other Capital

 

(168

)

 

(71

)

 

(528

)

 

578

 

 

306

 

Total Shareholders' Equity

 

93,819

 

 

90,810

 

 

86,456

 

 

84,919

 

 

82,101

 

 
Total Liabilities & Shareholders' Equity

$

1,218,162

 

$

1,150,269

 

$

1,083,326

 

$

971,623

 

$

930,216

 

Statements of Income (unaudited)
(dollars in thousands, except per share data)
Quarter Ended Nine Months Ended
Sep 30, Sep 30, Sep 30, Sep 30,

 

2021

 

 

2020

 

Change

 

2021

 

 

2020

 

Change
Interest Income
Interest and Fees on Loans

$

8,342

 

$

7,822

 

7

%

$

25,056

 

$

23,127

 

8

%

Fees on PPP Loans

 

978

 

 

559

 

75

%

 

3,336

 

 

950

 

251

%

Net Fair Value Amortization Income

 

419

 

 

5

 

8280

%

 

481

 

 

166

 

189

%

Interest on Securities

 

447

 

 

306

 

46

%

 

1,029

 

 

874

 

18

%

Interest on Fed Funds

 

-

 

 

-

 

n/a

 

 

-

 

 

-

 

n/a

 

Interest on Due From Banks

 

120

 

 

67

 

79

%

 

252

 

 

326

 

-23

%

Total Interest Income

 

10,306

 

 

8,759

 

18

%

 

30,154

 

 

25,443

 

19

%

 
Interest Expense
Interest Expense on Deposits

 

220

 

 

333

 

-34

%

 

742

 

 

1,696

 

-56

%

Interest Expense on Borrowings

 

-

 

 

22

 

-100

%

 

-

 

 

123

 

-100

%

Total Interest Expense

 

220

 

 

355

 

-38

%

 

742

 

 

1,819

 

-59

%

 
Net Interest Income

 

10,086

 

 

8,404

 

20

%

 

29,412

 

 

23,624

 

25

%

Provision for Loan Losses

 

-

 

 

209

 

-100

%

 

338

 

 

1,702

 

-80

%

Net Interest Income After Provision

 

10,086

 

 

8,195

 

23

%

 

29,074

 

 

21,922

 

33

%

 
Non-Interest Income
Service Charges, Commissions and Fees

 

601

 

 

609

 

-1

%

 

1,918

 

 

1,574

 

22

%

Other Non-Interest Income

 

342

 

 

149

 

130

%

 

825

 

 

501

 

65

%

Total Non-Interest Income

 

943

 

 

758

 

24

%

 

2,743

 

 

2,075

 

32

%

 
Non-Interest Expense
Salaries and Employee Benefits

 

4,469

 

 

3,604

 

24

%

 

12,004

 

 

10,551

 

14

%

Occupancy and Equipment

 

756

 

 

677

 

12

%

 

2,124

 

 

2,028

 

5

%

Other Non-Interest Expense

 

1,769

 

 

1,434

 

23

%

 

5,092

 

 

4,351

 

17

%

Total Non-Interest Expense

 

6,994

 

 

5,715

 

22

%

 

19,220

 

 

16,930

 

14

%

 
Net Income Before Provision for Taxes

 

4,035

 

 

3,238

 

25

%

 

12,597

 

 

7,067

 

78

%

Provision for Taxes

 

1,085

 

 

974

 

11

%

 

3,515

 

 

2,067

 

70

%

Net Income

$

2,950

 

$

2,264

 

30

%

$

9,082

 

$

5,000

 

82

%

 
Shares (end of period)

 

5,130,937

 

 

5,070,556

 

1

%

 

5,130,937

 

 

5,070,556

 

1

%

Earnings Per Share - Basic

$

0.58

 

$

0.45

 

29

%

$

1.77

 

$

0.99

 

80

%

Return on Average Assets

 

0.98

%

 

0.98

%

0

%

 

1.12

%

 

0.81

%

38

%

Return on Average Equity

 

12.45

%

 

10.95

%

14

%

 

13.64

%

 

8.51

%

60

%

Net Interest Margin

 

3.54

%

 

3.86

%

-8

%

 

3.75

%

 

4.04

%

-7

%

Five Quarter Statements of Income (unaudited)
(dollars in thousands)
Three Months Ended
September 30, June 30, March 31, December 31, September 30,

 

2021

 

2021

 

2021

 

2020

 

2020

Interest Income
Interest and Fees on Loans

$

8,342

$

8,840

$

7,874

$

7,589

$

7,822

Fees on PPP Loans

 

978

 

1,412

 

946

 

1,374

 

559

Net Fair Value Amortization Income

 

419

 

19

 

43

 

14

 

5

Interest on Securities

 

447

 

311

 

271

 

274

 

306

Interest on Fed Funds

 

-

 

-

 

-

 

-

 

-

Interest on Due From Banks

 

120

 

72

 

60

 

74

 

67

Total Interest Income

 

10,306

 

10,654

 

9,194

 

9,325

 

8,759

 
Interest Expense
Interest Expense on Deposits

 

220

 

259

 

263

 

295

 

333

Interest Expense on Borrowings

 

-

 

-

 

-

 

-

 

22

Total Interest Expense

 

220

 

259

 

263

 

295

 

355

 
Net Interest Income

 

10,086

 

10,395

 

8,931

 

9,030

 

8,404

Provision for Loan Losses

 

-

 

-

 

338

 

418

 

209

Net Interest Income After Provision

 

10,086

 

10,395

 

8,593

 

8,612

 

8,195

 
Non-Interest Income
Service Charges, Commissions and Fees

 

601

 

664

 

653

 

543

 

609

Other Non-Interest Income

 

342

 

309

 

173

 

251

 

149

Total Non-Interest Income

 

943

 

973

 

826

 

794

 

758

 
Non-Interest Expense
Salaries and Employee Benefits

 

4,469

 

3,829

 

3,706

 

3,847

 

3,604

Occupancy and Equipment

 

756

 

778

 

590

 

722

 

677

Other Non-Interest Expense

 

1,769

 

1,792

 

1,530

 

1,562

 

1,434

Total Non-Interest Expense

 

6,994

 

6,399

 

5,826

 

6,131

 

5,715

 
Net Income Before Provision for Taxes

 

4,035

 

4,969

 

3,593

 

3,275

 

3,238

Provision for Taxes

 

1,085

 

1,397

 

1,033

 

896

 

974

Net Income

$

2,950

$

3,572

$

2,560

$

2,379

$

2,264

 
Shares (end of period)

 

5,130,937

 

5,132,809

 

5,127,895

 

5,083,648

 

5,070,556

Earnings Per Share - Basic

$

0.58

$

0.70

$

0.50

$

0.47

$

0.45

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,

 

2021

 

 

2021

 

 

2021

 

 

2020

 

 

2020

 

Income and performance ratios:
Net Income

$

2,950

 

$

3,572

 

$

2,560

 

$

2,379

 

$

2,264

 

Earnings per share - basic

 

0.58

 

 

0.70

 

 

0.50

 

 

0.47

 

 

0.45

 

Return on average assets

 

0.98

%

 

1.31

%

 

1.07

%

 

0.96

%

 

0.98

%

Return on average equity

 

12.45

%

 

16.14

%

 

12.34

%

 

11.16

%

 

10.95

%

Net interest margin

 

3.54

%

 

3.97

%

 

3.78

%

 

3.85

%

 

3.86

%

Efficiency ratio (c)

 

63.80

%

 

56.25

%

 

59.06

%

 

62.65

%

 

62.64

%

 
Asset quality:
Allowance for loan and lease losses

$

9,376

 

$

9,373

 

$

8,817

 

$

8,467

 

$

8,040

 

Nonperforming assets

 

3,349

 

 

3,413

 

 

3,588

 

 

3,446

 

 

12

 

Allowance for loan and lease losses / total loans and leases

 

1.20

%

 

1.21

%

 

1.13

%

 

1.17

%

 

1.11

%

Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (a)

 

1.29

%

 

1.34

%

 

1.33

%

 

1.32

%

 

1.33

%

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

 

0.00

%

 

-0.28

%

 

-0.01

%

 

-0.01

%

 

0.03

%

Texas ratio (b)

 

3.41

%

 

3.59

%

 

3.98

%

 

3.91

%

 

0.01

%

 
Other ratios:
Tier 1 risk-based capital

 

11.09

%

 

11.18

%

 

11.30

%

 

11.45

%

 

11.82

%

Total risk-based capital

 

12.28

%

 

12.43

%

 

12.55

%

 

12.70

%

 

13.07

%

Common equity tier 1 risk-based capital

 

11.09

%

 

11.18

%

 

11.30

%

 

11.45

%

 

11.82

%

Tier 1 leverage ratio

 

7.59

%

 

7.90

%

 

8.21

%

 

8.16

%

 

8.49

%

 
Equity and share related:
Common equity

$

93,819

 

 

90,810

 

 

86,456

 

 

84,919

 

$

82,101

 

Book value per share

 

18.28

 

 

17.69

 

 

16.86

 

 

16.70

 

 

16.19

 

Tangible book value per share

 

17.34

 

 

16.72

 

 

15.97

 

 

15.58

 

 

15.11

 

Stock closing price per share

 

19.20

 

 

19.22

 

 

18.50

 

 

16.50

 

 

12.10

 

Number of shares issued and outstanding

 

5,131

 

 

5,133

 

 

5,128

 

 

5,084

 

 

5,071

 

Notes:
(a) PPP loans are 100% guaranteed by the Small Business Administration.
(b) The sum of Nonperforming assets and Other Real Estate Owned, divided by the sum of Total Shareholder Equity and Total Allowance for Loan and Lease Losses (less Preferred Stock and Intangible Assets).
(c) Annualized Operating Expense excluding Loan Loss Provisions minus Annualized Extraordinary Expense, divided by Annualized Interest Income including Loan Fees minus Annualized Interest Expense plus Annualized Non-Interest Income minus Annualized Extraordinary Income, expressed as a percentage.

 

Contacts

American Riviera Bank
www.americanriviera.bank
805-965-5942
Michelle Martinich

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Contacts

American Riviera Bank
www.americanriviera.bank
805-965-5942
Michelle Martinich