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American Riviera Bank Reports Growth and Earnings

American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $2,827,000 ($0.64 per share) for the six months ended June 30, 2018. This represents a 33% increase in net income from the $2,118,000 ($0.48 per share) for the same reporting period in the prior year. The annualized return on average assets of 1.08% and return on average equity of 10.37% represents an increase from the 0.95% and 8.40%, respectively, achieved for the same reporting period in the prior year. The Bank reported unaudited net income of $1,475,000 ($0.33 per share) for the second quarter ended June 30, 2018 compared to $1,163,000 ($0.27 per share) for the same quarter last year.

Loans and deposits continue to experience double digit growth. As of June 30, 2018, the Bank reported $532 million in total deposits. Checking accounts, comprised of non-interest bearing demand deposits and interest bearing NOW accounts, increased by $46 million or 22% from the same reporting period last year. Deposit origination volume is noteworthy, with the Bank opening over 1,100 new accounts at our four locations year to date 2018.

Loan demand remained strong, with total loans increasing $81 million or 20% from June 30, 2017, reaching $478 million at June 30, 2018 with no loans that were 90 days or more past due and no other real estate owned. The Bank reported an annualized net interest margin of 4.52% for the six months ending June 30, 2018.

Jeff DeVine, President and Chief Executive Officer, stated, “American Riviera Bank’s net income of $2.8 million in the first six months of 2018 represents strong core earnings and the continued growth of our relationships in Santa Barbara and San Luis Obispo Counties. The earnings are a reflection of growth in both loans and deposits. Our commitment to community banking – meeting the financial needs of families and businesses with service that is both personal and high tech continues to build our presence throughout the Central Coast.”

As of June 30, 2018, American Riviera Bank maintained a strong capital position with a Tier 1 Capital Ratio of 10%, well above the regulatory guideline of 8% for well capitalized institutions. The tangible book value per share of American Riviera Bank common stock is $11.60 at June 30, 2018, a 7% increase from $10.81 at June 30, 2017.

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, 5880 Calle Real in Goleta and 1601 Spring Street in Paso Robles with the Santa Barbara Lending office at 30 East Figueroa and a residential loan production office located at 18 East Figueroa in Santa Barbara. For eight 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 2017. As of March 31, 2018, 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
20182017Change
Assets
Cash & Due From Banks $ 42,796 $ 46,054 -7 %
Fed Funds Sold - 15,841 -100 %
Securities 48,274 18,695 158 %
Loans 477,837 396,876 20 %
Allowance For Loan Losses (4,895 ) (4,001 ) 22 %
Net Loans 472,942 392,875 20 %
Fixed Assets 5,294 1,210 338 %
Goodwill and Other Intangibles 6,462 5,785 12 %
Other Assets 15,464 15,369 1 %
Total Assets 591,232 495,829 19 %
Liabilities & Shareholders' Equity
Demand Deposits 168,609 159,289 6 %
NOW Accounts 86,543 50,072 88 %
Other Interest Bearing Deposits 276,460 230,160 20 %
Total Deposits 531,612 439,521 21 %
Borrowed Funds - 2,000 -100 %
Other Liabilities 2,134 1,092 95 %
Total Liabilities 533,746 442,613 21 %
Common Stock 46,212 42,824 8 %
Retained Earnings 11,768 10,384 13 %
Other Capital (494 ) 8 -6275 %
Total Shareholders' Equity 57,486 53,216 8 %
Total Liabilities & Shareholders' Equity $ 591,232 $ 495,829 19 %
Book Value Per Share $ 13.06 $ 12.13 8 %
Tangible Book Value Per Share $ 11.60 $ 10.81 7 %
Statements of Income (unaudited)
(dollars in thousands)
Quarter Ended6 Months Ended
Jun 30,Jun 30,Jun 30,Jun 30,
20182017Change20182017Change
Interest Income
Interest and Fees on Loans $ 5,769 $ 5,006 15 % $ 11,037 $ 9,794 13 %
Net Fair Value Amortization Income 176 233 -24 % 306 468 -35 %
Interest on Securities 253 41 521 % 437 60 628 %
Interest on Fed Funds 1 28 -97 % 11 42 -73 %
Interest on Due From Banks 122 87 40 % 269 175 53 %
Total Interest Income 6,321 5,395 17 % 12,060 10,539 14 %
Interest Expense
Interest Expense on Deposits 326 245 33 % 592 464 27 %
Interest Expense on Borrowings 98 18 444 % 120 23 423 %
Total Interest Expense 424 263 61 % 712 487 46 %
Net Interest Income 5,897 5,132 15 % 11,348 10,052 13 %
Provision for Loan Losses 363 252 44 % 631 639 -1 %
Net Interest Income After Provision 5,534 4,880 13 % 10,717 9,413 14 %
Non-Interest Income
Service Charges, Commissions and Fees 409 302 35 % 845 576 47 %
Other Non-Interest Income 84 76 11 % 198 165 20 %
Total Non-Interest Income 493 378 30 % 1,043 741 41 %
Non-Interest Expense
Salaries and Employee Benefits 2,278 1,898 20 % 4,631 3,854 20 %
Occupancy and Equipment 429 372 16 % 821 741 11 %
Other Non-Interest Expense 1,227 1,125 9 % 2,376 2,099 13 %
Total Non-Interest Expense 3,934 3,395 16 % 7,828 6,694 17 %
Net Income Before Provision for Taxes 2,093 1,863 12 % 3,932 3,460 14 %
Provision for Taxes 618 700 -12 % 1,105 1,342 -18 %
Net Income $ 1,475 $ 1,163 27 % $ 2,827 $ 2,118 33 %
Shares (end of period) 4,440,082 4,387,369 1 % 4,440,082 4,387,369 1 %
Earnings Per Share - Basic $ 0.33 $ 0.27 26 % $ 0.64 $ 0.48 33 %
Return on Average Assets (annualized) 1.07 % 0.99 % 1.08 % 0.95 %
Return on Average Equity (annualized) 10.47 % 8.92 % 10.37 % 8.40 %
Net Interest Margin (annualized) 4.54 % 4.63 % 4.52 % 4.70 %

Contacts:

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

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