SANTA BARBARA, Calif.--(BUSINESS WIRE)--American Riviera Bank (OTCQX: ARBV) announced today unaudited net income of $6,132,000 ($1.19 per share) for the six months ended June 30, 2021. This represents a 124% increase in net income from the $2,736,000 ($0.54 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 1.20% and return on average equity of 14.26%. Unaudited net income was $3,572,000 ($0.70 per share) for the second quarter ended June 30, 2021, compared to the $1,565,000 ($0.31 per share) earned in the same reporting period in the prior year. Net income in the second quarter of 2021 was positively impacted by a $751,000 loan interest recovery and accelerated recognition of Paycheck Protection Program (PPP) fee income upon loan forgiveness by the Small Business Administration (SBA).
Core loans, excluding SBA PPP loans, have grown 14% or $86 million over the last year since June 30, 2020. Year to date, core loans excluding PPP loans have grown 9% or $60 million since December 31, 2020. PPP loans totaled $76 million at June 30, 2021, with $78 million processed by the Bank and approved for forgiveness by the SBA during the six months ended June 30, 2021. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $3.4 million or 0.48% 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 33% or $258 million increase in total deposits over the last year since June 30, 2020. Non-interest bearing demand deposits increased 30% or $100 million since June 30, 2020. Deposit inflows from our clients have been the driving factor in the total assets of the Bank increasing $248 million since June 30, 2020 to a total of $1.15 billion at June 30, 2021.
Jeff DeVine, President and Chief Executive Officer noted, “We are pleased as our community recovers from the pandemic to put deposits to work funding loans to local businesses and real estate projects. The Bank has been working closely with our clients to process and obtain prompt forgiveness decisions from the SBA, which has contributed to strong PPP fee income recognition this year. We will continue to make significant investments in people, products and technology to support our clients and the communities of the Central Coast.”
As of June 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 was $16.72 at June 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. As of March 31, 2021, the Bank was rated five stars by BauerFinancial. 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) | |||||||||||
June 30, |
|
June 30, |
|
One Year |
|||||||
2021 |
|
2020 |
|
Change |
|||||||
| Assets | |||||||||||
| Cash & Due From Banks | $ |
233,502 |
|
$ |
84,722 |
|
176 |
% |
|||
| Securities |
|
110,403 |
|
57,099 |
|
93 |
% |
||||
| Loans (excluding PPP) |
|
701,399 |
|
615,367 |
|
14 |
% |
||||
| PPP Loans |
|
76,093 |
|
116,531 |
|
-35 |
% |
||||
| Allowance For Loan Losses |
|
(9,373 |
) |
(7,890 |
) |
19 |
% |
||||
| Net Loans |
|
768,119 |
|
724,008 |
|
6 |
% |
||||
| Premise & Equipment |
|
6,229 |
|
6,731 |
|
-7 |
% |
||||
| Goodwill and Other Intangibles |
|
5,069 |
|
5,248 |
|
-3 |
% |
||||
| Other Assets (a) |
|
26,947 |
|
24,846 |
|
8 |
% |
||||
| Total Assets | $ |
1,150,269 |
|
$ |
902,654 |
|
27 |
% |
|||
| Liabilities & Shareholders' Equity | |||||||||||
| Demand Deposits | $ |
428,577 |
|
$ |
328,748 |
|
30 |
% |
|||
| NOW Accounts | 170,029 |
|
121,741 |
|
40 |
% |
|||||
| Other Interest Bearing Deposits | 452,867 |
|
342,668 |
|
32 |
% |
|||||
| Total Deposits | 1,051,473 |
|
793,157 |
|
33 |
% |
|||||
| Borrowed Funds | - |
|
20,000 |
|
-100 |
% |
|||||
| Other Liabilities |
|
7,986 |
|
9,772 |
|
-18 |
% |
||||
| Total Liabilities |
|
1,059,459 |
|
822,929 |
|
29 |
% |
||||
| Common Stock |
|
56,146 |
|
55,418 |
|
1 |
% |
||||
| Retained Earnings | 34,735 |
|
23,960 |
|
45 |
% |
|||||
| Other Capital | (71 |
) |
347 |
|
-120 |
% |
|||||
| Total Shareholders' Equity | 90,810 |
|
79,725 |
|
14 |
% |
|||||
| Total Liabilities & Shareholders' Equity | $ |
1,150,269 |
|
$ |
902,654 |
|
27 |
% |
|||
| Notes: | |||||||||||
| (a) Increase is primarily due to additional Bank Owned Life Insurance policies (BOLI) purchased and required accumulation of Federal Home Loan Bank stock as a member. | |||||||||||
| Balance Sheets (unaudited) | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| June 30, | March, 31 | December, 31 |
September, 30 |
June, 30 | ||||||||||||||||
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
||||||||||||
| Assets | ||||||||||||||||||||
| Cash & Due From Banks | $ |
233,502 |
|
$ |
187,886 |
|
$ |
129,732 |
|
$ |
105,157 |
|
$ |
84,722 |
|
|||||
| Securities |
|
110,403 |
|
|
86,587 |
|
|
86,942 |
|
|
73,886 |
|
|
57,099 |
|
|||||
| Loans (excluding PPP) |
|
701,399 |
|
|
661,520 |
|
|
641,603 |
|
|
604,728 |
|
|
615,367 |
|
|||||
| PPP Loans |
|
76,093 |
|
|
119,429 |
|
|
84,464 |
|
|
117,361 |
|
|
116,531 |
|
|||||
| Allowance For Loan Losses |
|
(9,373 |
) |
|
(8,817 |
) |
|
(8,467 |
) |
|
(8,040 |
) |
|
(7,890 |
) |
|||||
| Net Loans |
|
768,119 |
|
|
772,132 |
|
|
717,600 |
|
|
714,049 |
|
|
724,008 |
|
|||||
| Premise & Equipment |
|
6,229 |
|
|
6,365 |
|
|
6,458 |
|
|
6,634 |
|
|
6,731 |
|
|||||
| Goodwill and Other Intangibles |
|
5,069 |
|
|
5,114 |
|
|
5,158 |
|
|
5,203 |
|
|
5,248 |
|
|||||
| Other Assets |
|
26,947 |
|
|
25,242 |
|
|
25,733 |
|
|
25,287 |
|
|
24,846 |
|
|||||
| Total Assets | $ |
1,150,269 |
|
$ |
1,083,326 |
|
$ |
971,623 |
|
$ |
930,216 |
|
$ |
902,654 |
|
|||||
| Liabilities & Shareholders' Equity | ||||||||||||||||||||
| Demand Deposits | $ |
428,577 |
|
$ |
405,264 |
|
$ |
332,995 |
|
$ |
331,035 |
|
$ |
328,748 |
|
|||||
| NOW Accounts |
|
170,029 |
|
|
144,591 |
|
|
128,266 |
|
|
110,476 |
|
|
121,741 |
|
|||||
| Other Interest Bearing Deposits |
|
452,867 |
|
|
433,310 |
|
|
410,837 |
|
|
387,293 |
|
|
342,668 |
|
|||||
| Total Deposits |
|
1,051,473 |
|
|
983,165 |
|
|
872,098 |
|
|
828,804 |
|
|
793,157 |
|
|||||
| Borrowed Funds |
|
- |
|
|
5,000 |
|
|
5,000 |
|
|
10,000 |
|
|
20,000 |
|
|||||
| Other Liabilities |
|
7,986 |
|
|
8,705 |
|
|
9,606 |
|
|
9,311 |
|
|
9,772 |
|
|||||
| Total Liabilities |
|
1,059,459 |
|
|
996,870 |
|
|
886,704 |
|
|
848,115 |
|
|
822,929 |
|
|||||
| Common Stock |
|
56,146 |
|
|
55,821 |
|
|
55,738 |
|
|
55,571 |
|
|
55,418 |
|
|||||
| Retained Earnings |
|
34,735 |
|
|
31,163 |
|
|
28,603 |
|
|
26,224 |
|
|
23,960 |
|
|||||
| Other Capital |
|
(71 |
) |
|
(528 |
) |
|
578 |
|
|
306 |
|
|
347 |
|
|||||
| Total Shareholders' Equity |
|
90,810 |
|
|
86,456 |
|
|
84,919 |
|
|
82,101 |
|
|
79,725 |
|
|||||
| Total Liabilities & Shareholders' Equity | $ |
1,150,269 |
|
$ |
1,083,326 |
|
$ |
971,623 |
|
$ |
930,216 |
|
$ |
902,654 |
|
|||||
| Statements of Income (unaudited) | ||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Quarter Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
||||||
| Interest Income | ||||||||||||||||
| Interest and Fees on Loans | $ |
8,840 |
$ |
7,766 |
14% |
$ |
16,714 |
$ |
15,302 |
9% |
||||||
| Fees on PPP Loans |
|
1,412 |
|
391 |
261% |
|
2,358 |
|
391 |
503% |
||||||
| Net Fair Value Amortization Income |
|
19 |
|
46 |
-59% |
|
62 |
|
162 |
-62% |
||||||
| Interest on Securities |
|
311 |
|
246 |
26% |
|
583 |
|
569 |
2% |
||||||
| Interest on Fed Funds |
|
- |
|
- |
n/a |
|
- |
|
- |
n/a |
||||||
| Interest on Due From Banks |
|
72 |
|
72 |
0% |
|
132 |
|
259 |
-49% |
||||||
| Total Interest Income |
|
10,654 |
|
8,521 |
25% |
|
19,849 |
|
16,683 |
19% |
||||||
| Interest Expense | ||||||||||||||||
| Interest Expense on Deposits |
|
259 |
|
501 |
-48% |
|
522 |
|
1,363 |
-62% |
||||||
| Interest Expense on Borrowings |
|
- |
|
48 |
-100% |
|
- |
|
101 |
-100% |
||||||
| Total Interest Expense |
|
259 |
|
549 |
-53% |
|
522 |
|
1,464 |
-64% |
||||||
| Net Interest Income |
|
10,395 |
|
7,972 |
30% |
|
19,327 |
|
15,219 |
27% |
||||||
| Provision for Loan Losses |
|
- |
|
710 |
-100% |
|
338 |
|
1,493 |
-77% |
||||||
| Net Interest Income After Provision |
|
10,395 |
|
7,262 |
43% |
|
18,989 |
|
13,726 |
38% |
||||||
| Non-Interest Income | ||||||||||||||||
| Service Charges, Commissions and Fees |
|
664 |
|
463 |
43% |
|
1,317 |
|
965 |
36% |
||||||
| Other Non-Interest Income |
|
309 |
|
159 |
94% |
|
483 |
|
352 |
37% |
||||||
| Total Non-Interest Income |
|
973 |
|
622 |
56% |
|
1,800 |
|
1,317 |
37% |
||||||
| Non-Interest Expense | ||||||||||||||||
| Salaries and Employee Benefits |
|
3,829 |
|
3,495 |
10% |
|
7,535 |
|
6,947 |
8% |
||||||
| Occupancy and Equipment |
|
778 |
|
666 |
17% |
|
1,368 |
|
1,351 |
1% |
||||||
| Other Non-Interest Expense |
|
1,792 |
|
1,534 |
17% |
|
3,323 |
|
2,917 |
14% |
||||||
| Total Non-Interest Expense |
|
6,399 |
|
5,695 |
12% |
|
12,226 |
|
11,215 |
9% |
||||||
| Net Income Before Provision for Taxes |
|
4,969 |
|
2,189 |
127% |
|
8,563 |
|
3,828 |
124% |
||||||
| Provision for Taxes |
|
1,397 |
|
624 |
124% |
|
2,431 |
|
1,092 |
123% |
||||||
| Net Income | $ |
3,572 |
$ |
1,565 |
128% |
$ |
6,132 |
$ |
2,736 |
124% |
||||||
| Shares (end of period) |
|
5,132,809 |
|
5,069,523 |
1% |
|
5,132,809 |
|
5,069,523 |
1% |
||||||
| Earnings Per Share - Basic | $ |
0.70 |
$ |
0.31 |
126% |
$ |
1.19 |
$ |
0.54 |
120% |
||||||
| Return on Average Assets |
|
1.31% |
|
0.76% |
72% |
|
1.20% |
|
0.72% |
67% |
||||||
| Return on Average Equity |
|
16.14% |
|
8.18% |
97% |
|
14.26% |
|
7.23% |
97% |
||||||
| Net Interest Margin |
|
3.97% |
|
3.98% |
0% |
|
3.88% |
|
4.11% |
-6% |
||||||
| Five Quarter Statements of Income (unaudited) | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|||||||
| Interest Income | |||||||||||||||
| Interest and Fees on Loans | $ |
8,840 |
$ |
7,874 |
$ |
7,589 |
$ |
7,822 |
$ |
7,766 |
|||||
| Fees on PPP Loans |
|
1,412 |
|
946 |
|
1,374 |
|
559 |
|
391 |
|||||
| Net Fair Value Amortization Income |
|
19 |
|
43 |
|
14 |
|
5 |
|
46 |
|||||
| Interest on Securities |
|
311 |
|
271 |
|
274 |
|
306 |
|
246 |
|||||
| Interest on Fed Funds |
|
- |
|
- |
|
- |
|
- |
|
- |
|||||
| Interest on Due From Banks |
|
72 |
|
60 |
|
74 |
|
67 |
|
72 |
|||||
| Total Interest Income |
|
10,654 |
|
9,194 |
|
9,325 |
|
8,759 |
|
8,521 |
|||||
| Interest Expense | |||||||||||||||
| Interest Expense on Deposits |
|
259 |
|
263 |
|
295 |
|
333 |
|
501 |
|||||
| Interest Expense on Borrowings |
|
- |
|
- |
|
- |
|
22 |
|
48 |
|||||
| Total Interest Expense |
|
259 |
|
263 |
|
295 |
|
355 |
|
549 |
|||||
| Net Interest Income |
|
10,395 |
|
8,931 |
|
9,030 |
|
8,404 |
|
7,972 |
|||||
| Provision for Loan Losses |
|
- |
|
338 |
|
418 |
|
209 |
|
710 |
|||||
| Net Interest Income After Provision |
|
10,395 |
|
8,593 |
|
8,612 |
|
8,195 |
|
7,262 |
|||||
| Non-Interest Income | |||||||||||||||
| Service Charges, Commissions and Fees |
|
664 |
|
653 |
|
543 |
|
609 |
|
463 |
|||||
| Other Non-Interest Income |
|
309 |
|
173 |
|
251 |
|
149 |
|
159 |
|||||
| Total Non-Interest Income |
|
973 |
|
826 |
|
794 |
|
758 |
|
622 |
|||||
| Non-Interest Expense | |||||||||||||||
| Salaries and Employee Benefits |
|
3,829 |
|
3,706 |
|
3,847 |
|
3,604 |
|
3,495 |
|||||
| Occupancy and Equipment |
|
778 |
|
590 |
|
722 |
|
677 |
|
666 |
|||||
| Other Non-Interest Expense |
|
1,792 |
|
1,530 |
|
1,562 |
|
1,434 |
|
1,534 |
|||||
| Total Non-Interest Expense |
|
6,399 |
|
5,826 |
|
6,131 |
|
5,715 |
|
5,695 |
|||||
| Net Income Before Provision for Taxes |
|
4,969 |
|
3,593 |
|
3,275 |
|
3,238 |
|
2,189 |
|||||
| Provision for Taxes |
|
1,397 |
|
1,033 |
|
896 |
|
974 |
|
624 |
|||||
| Net Income | $ |
3,572 |
$ |
2,560 |
$ |
2,379 |
$ |
2,264 |
$ |
1,565 |
|||||
| Shares (end of period) |
|
5,132,809 |
|
5,127,895 |
|
5,083,648 |
|
5,070,556 |
|
5,069,523 |
|||||
| Earnings Per Share - Basic | $ |
0.70 |
$ |
0.50 |
$ |
0.47 |
$ |
0.45 |
$ |
0.31 |
|||||
| Selected Financial Highlights (unaudited) | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| At or for the Three Months Ended | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2020 |
|||||||
| Income and performance ratios: | |||||||||||||||
| Net Income | $ |
3,572 |
$ |
2,560 |
$ |
2,379 |
$ |
2,264 |
$ |
1,565 |
|||||
| Earnings per share - basic |
|
0.70 |
|
0.50 |
|
0.47 |
|
0.45 |
|
0.31 |
|||||
| Return on average assets |
|
1.31% |
|
1.07% |
|
0.96% |
|
0.98% |
|
0.76% |
|||||
| Return on average equity |
|
16.14% |
|
12.34% |
|
11.16% |
|
10.95% |
|
8.18% |
|||||
| Net interest margin |
|
3.97% |
|
3.78% |
|
3.85% |
|
3.86% |
|
3.98% |
|||||
| Efficiency ratio (c) |
|
56.25% |
|
59.06% |
|
62.65% |
|
62.64% |
|
65.96% |
|||||
| Asset quality: | |||||||||||||||
| Allowance for loan and lease losses | $ |
9,373 |
$ |
8,817 |
$ |
8,467 |
$ |
8,040 |
$ |
7,890 |
|||||
| Nonperforming assets |
|
3,413 |
|
3,588 |
|
3,446 |
|
12 |
|
40 |
|||||
| Allowance for loan and lease losses / total loans and leases |
|
1.21% |
|
1.13% |
|
1.17% |
|
1.11% |
|
1.08% |
|||||
| Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (a) |
|
1.34% |
|
1.33% |
|
1.32% |
|
1.33% |
|
1.28% |
|||||
| Net charge-offs / average loans and leases (annualized) |
|
-0.28% |
|
-0.01% |
|
-0.01% |
|
0.03% |
|
-0.01% |
|||||
| Texas ratio (b) |
|
3.59% |
|
3.98% |
|
3.91% |
|
0.01% |
|
0.05% |
|||||
| Other ratios: | |||||||||||||||
| Tier 1 risk-based capital |
|
11.18% |
|
11.30% |
|
11.45% |
|
11.82% |
|
11.31% |
|||||
| Total risk-based capital |
|
12.43% |
|
12.55% |
|
12.70% |
|
13.07% |
|
12.54% |
|||||
| Common equity tier 1 risk-based capital |
|
11.18% |
|
11.30% |
|
11.45% |
|
11.82% |
|
11.31% |
|||||
| Tier 1 leverage ratio |
|
7.90% |
|
8.21% |
|
8.16% |
|
8.49% |
|
8.87% |
|||||
| Equity and share related: | |||||||||||||||
| Common equity | $ |
90,810 |
|
86,456 |
|
84,919 |
|
82,101 |
$ |
79,725 |
|||||
| Book value per share |
|
17.69 |
|
16.86 |
|
16.70 |
|
16.19 |
|
15.73 |
|||||
| Tangible book value per share |
|
16.72 |
|
15.97 |
|
15.58 |
|
15.11 |
|
14.62 |
|||||
| Stock closing price per share |
|
19.22 |
|
18.50 |
|
16.50 |
|
12.10 |
|
12.25 |
|||||
| Number of shares issued and outstanding |
|
5,133 |
|
5,128 |
|
5,084 |
|
5,071 |
|
5,070 |
|||||
| 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. | |||||||||||||||
| Loan Deferrals | |||||||||
| As of June 30, 2021 | |||||||||
| Principal Only Deferred |
Total Deferred Loans (e) |
Percentage of Total Loans excluding PPP |
|||||||
| CRE - Retail | $ |
7,981,909 |
$ |
7,981,909 |
1.14% |
||||
| CRE - Special Purpose | $ |
- |
$ |
- |
0.00% |
||||
| CRE - Hospitality | $ |
- |
$ |
- |
0.00% |
||||
| C&I | $ |
588,114 |
$ |
588,114 |
0.08% |
||||
$ |
8,570,023 |
$ |
8,570,023 |
1.22% |
|||||
| Total Loans excluding PPP | $ |
701,399,000 |
|||||||
