SANTA BARBARA, Calif.--(BUSINESS WIRE)--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 | |||||||||||||||||
| 2018 | 2017 | Change | |||||||||||||||||
| 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 Ended | 6 Months Ended | |||||||||||||||||||||||||||||||||||
| Jun 30, | Jun 30, | Jun 30, | Jun 30, | |||||||||||||||||||||||||||||||||
| 2018 | 2017 | Change | 2018 | 2017 | Change | |||||||||||||||||||||||||||||||
| 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 | % | ||||||||||||||||||||||||||||
