American Riviera Bank

07/19/2019 | News release | Distributed by Public on 07/19/2019 18:17

American Riviera Bank Reports Strong Growth and Expansion

Santa Barbara, California (July 19, 2019) - American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $3,274,000 ($0.65 per share) for the six months ended June 30, 2019. This represents a 16% increase in net income from the $2,827,000 ($0.64 per share) for the same reporting period in the prior year. The Bank reported an annualized return on average assets of 1.07% and return on average equity of 10.06%. The Bank reported unaudited net income of $1,506,000 ($0.30 per share) for the second quarter ended June 30, 2019 compared to $1,475,000 ($0.33 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 first quarter ended March 31, 2019.

The Bank continues to experience significant growth, reporting $662 million in total assets as of June 30, 2019. Total deposits, excluding wholesale deposits, increased 16% from June 30, 2018. The Bank had $5 million of wholesale deposits at June 30, 2019, down from the $49 million at June 30, 2018. Over the past twelve months the Bank has replaced these wholesale deposits with local customer deposits. Non-interest bearing demand deposit accounts increased $18 million, or 11% from the same reporting period last year, reaching $187 million at June 30, 2019.

The Bank reported strong loan growth, with gross loans increasing $64 million, or 13% from June 30, 2018, reaching $542 million at June 30, 2019, with no other real estate owned and no loans 30 or more days past due. The Bank's net interest income increased by approximately $1.5 million, or 13% for the six months ended June 30, 2019, compared to the same reporting period in the prior year. The Bank reported an annualized net interest margin of 4.34% for the six months ended June 30, 2019, reflecting only modest compression from the 4.52% reported for the same reporting period last year.

Jeff DeVine, President and Chief Executive Officer stated, 'We continue to invest in our expansion and are pleased to announce the opening of our full service branch in the City of San Luis Obispo which will allow us to better serve the needs of businesses and consumers in San Luis Obispo County. We look forward to welcoming new clients affected by mega-mergers who will benefit from our high level of service built on relationships with local decision makers.'

As of June 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 $13.41 at June 30, 2019, a 14% increase from $11.80 at June 30, 2018.

Balance Sheets (unaudited)
(dollars in thousands)
Jun 30, Jun 30, One Year
2019 2018 Change
Assets
Cash & Due From Banks $ 47,640 $ 42,796 11%
Fed Funds Sold - - -
Securities 42,961 48,274 -11%
Loans 541,869 477,837 13%
Allowance For Loan Losses (5,883) (4,895) 20%
Net Loans 535,986 472,942 13%
Fixed Assets 6,528 5,294 23%
Goodwill and Other Intangibles 5,427 5,606 -3%
Other Assets 23,054 16,320 41%
Total Assets 661,596 591,232 12%
Liabilities & Shareholders' Equity
Demand Deposits 186,845 168,609 11%
NOW Accounts 73,782 86,543 -15%
Other Interest Bearing Deposits 304,223 276,460 10%
Total Deposits 564,850 531,612 6%
Borrowed Funds 15,000 - N/M
Other Liabilities 8,806 2,134 313%
Total Liabilities 588,656 533,746 10%
Common Stock 54,739 46,212 18%
Retained Earnings 18,105 11,768 54%
Other Capital 96 (494) N/M
Total Shareholders' Equity 72,940 57,486 27%
Total Liabilities & Shareholders' Equity $ 661,596 $ 591,232 12%
Book Value Per Share $ 14.49 $ 13.06 11%
Tangible Book Value Per Share $ 13.41 $ 11.80

14%

Statements of Income (unaudited)
(dollars in thousands)
Quarter Ended 6 Months Ended
Jun 30, Jun 30, Jun 30, Jun 30,
2019 2018 Change 2019 2018 Change
Interest Income
Interest and Fees on Loans $ 6,992 $ 5,769 21% $ 13,672 $ 11,037 24%
Net Fair Value Amortization Income 86 176 -51% 308 306 1%
Interest on Securities 230 253 -9% 514 437 18%
Interest on Fed Funds 0 1 -100% 1 11 -91%
Interest on Due From Banks 205 122 68% 403 269 50%
Total Interest Income 7,513 6,321 19% 14,898 12,060 24%
Interest Expense
Interest Expense on Deposits 998 326 206% 1,822 592 208%
Interest Expense on Borrowings 60 98 -39% 202 120 68%
Total Interest Expense 1,058 424 150% 2,024 712 184%
Net Interest Income 6,455 5,897 9% 12,874 11,348 13%
Provision for Loan Losses 220 363 -39% 395 631 -37%
Net Interest Income After Provision 6,235 5,534 13% 12,479 10,717 16%
Non-Interest Income
Service Charges, Commissions and Fees 580 409 42% 1,007 845 19%
Other Non-Interest Income 113 84 35% 279 198 41%
Total Non-Interest Income 693 493 41% 1,286 1,043 23%
Non-Interest Expense
Salaries and Employee Benefits 2,881 2,278 26% 5,573 4,631 20%
Occupancy and Equipment 546 429 27% 1,040 821 27%
Other Non-Interest Expense 1,366 1,227 11% 2,679 2,376 13%
Total Non-Interest Expense 4,793 3,934 22% 9,292 7,828 19%
Net Income Before Provision for Taxes 2,135 2,093 2% 4,473 3,932 14%
Provision for Taxes 629 618 2% 1,199 1,105 9%
Net Income $ 1,506 $ 1,475 2% $ 3,274 $ 2,827 16%
Shares (end of period) 5,028,906 4,440,082 13% 5,028,906 4,440,082 13%
Earnings Per Share - Basic $ 0.30 $ 0.33 -9% $ 0.65 $ 0.64 2%
Return on Average Assets (annualized) 0.95% 1.07% 1.07% 1.08%
Return on Average Equity (annualized) 8.46% 10.47% 10.06% 10.37%
Net Interest Margin (annualized) 4.27% 4.54% 4.34% 4.52%