SANTA BARBARA, Calif.--(BUSINESS WIRE)--American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $4,821,000 ($0.96 per share) for the nine months ended September 30, 2019. This represents a 10% increase in net income from the $4,398,000 ($0.99 per share) for the same reporting period in the prior year. The Bank reported an annualized return on average assets of 1.00% and return on average equity of 9.36%. The Bank reported unaudited net income of $1,547,000 ($0.31 per share) for the third quarter ended September 30, 2019 compared to $1,571,000 ($0.35 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 quarter ended March 31, 2019.

The Bank continues to experience significant growth, reporting $697 million in total assets as of September 30, 2019. Total deposits increased 20% from September 30, 2018 reaching $603 million at September 30, 2019. Non-interest bearing demand deposit accounts increased $41 million, or 25% from the same reporting period last year, reaching $208 million at September 30, 2019.
The Bank reported strong loan growth, with gross loans increasing $59 million, or 12% from September 30, 2018, reaching $548 million at September 30, 2019, with no other real estate owned and no loans 30 days or more past due. The Bank’s net interest income increased by approximately $2.1 million, or 12% for the nine months ended September 30, 2019, compared to the same reporting period in the prior year. The Bank reported an annualized net interest margin of 4.30% for the nine months ended September 30, 2019, reflecting only modest compression from the 4.47% reported for the same reporting period last year.
Jeff DeVine, President and Chief Executive Officer stated, “We continue to invest in the expansion of the Bank and consistently report strong earnings. This is a direct result of our loan and deposit growth, expanded regional presence and the strength of our relationships throughout the Santa Barbara and San Luis Obispo Counties.”
As of September 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 $13.74 at September 30, 2019, a 15% increase from $11.96 at September 30, 2018.
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 nine 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 2018 and 2017. As of June 30, 2019, 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) | |||||||
Sep 30, |
|
Sep 30, |
|
One Year |
|||
2019 |
|
2018 |
|
Change |
|||
Assets | |||||||
Cash & Due From Banks | $ 79,101 |
$ 31,392 |
152% |
||||
Fed Funds Sold | - |
- |
- |
||||
Securities | 41,797 |
46,549 |
-10% |
||||
Loans | 547,956 |
489,401 |
12% |
||||
Allowance For Loan Losses | (6,145) |
(5,242) |
17% |
||||
Net Loans | 541,811 |
484,159 |
12% |
||||
Premise & Equipment | 6,812 |
5,308 |
28% |
||||
Goodwill and Other Intangibles | 5,382 |
5,561 |
-3% |
||||
Other Assets (a) | 22,364 |
16,034 |
39% |
||||
Total Assets | $ 697,267 |
$ 589,003 |
18% |
||||
Liabilities & Shareholders' Equity | |||||||
Demand Deposits | $ 207,643 |
$ 166,145 |
25% |
||||
NOW Accounts | 79,509 |
86,543 |
-8% |
||||
Other Interest Bearing Deposits | 316,124 |
250,958 |
26% |
||||
Total Deposits | 603,276 |
503,646 |
20% |
||||
Borrowed Funds | 10,000 |
24,000 |
-58% |
||||
Other Liabilities (a) | 9,452 |
2,295 |
312% |
||||
Total Liabilities | 622,728 |
529,941 |
18% |
||||
Common Stock (b) | 54,889 |
46,400 |
18% |
||||
Retained Earnings | 19,653 |
13,339 |
47% |
||||
Other Capital | (3) |
(677) |
-100% |
||||
Total Shareholders' Equity | 74,539 |
59,062 |
26% |
||||
Total Liabilities & Shareholders' Equity | $ 697,267 |
$ 589,003 |
18% |
||||
Notes: | |||||||
(a) Other assets and other liabilities primarily increased due to the adoption of ASU2016-02, "Leases (Topic 842)" as of January 1, 2019. As of September 30, 2019 the right of use asset totals $5.6 million and the operating lease liability is $6 million. | |||||||
(b) Common stock increased in the first quarter 2019 due to $8.5 million common stock capital raise. |
Balance Sheets (unaudited) | |||||||||||
(dollars in thousands) | |||||||||||
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|||
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|||
Assets | |||||||||||
Cash & Due From Banks | $ 79,101 |
$ 47,640 |
$ 48,835 |
$ 41,271 |
$ 31,392 |
||||||
Fed Funds Sold | - |
- |
- |
- |
- |
||||||
Securities | 41,797 |
42,961 |
44,123 |
46,010 |
46,549 |
||||||
Loans | 547,956 |
541,869 |
520,857 |
508,397 |
489,401 |
||||||
Allowance For Loan Losses | (6,145) |
(5,883) |
(5,661) |
(5,542) |
(5,242) |
||||||
Net Loans | 541,811 |
535,986 |
515,196 |
502,855 |
484,159 |
||||||
Premise & Equipment | 6,812 |
6,528 |
5,588 |
5,299 |
5,308 |
||||||
Goodwill and Other Intangibles | 5,382 |
5,427 |
5,472 |
5,516 |
5,561 |
||||||
Other Assets (a) | 22,364 |
23,054 |
19,524 |
15,501 |
16,034 |
||||||
Total Assets | $ 697,267 |
$ 661,596 |
$ 638,738 |
$ 616,452 |
$ 589,003 |
||||||
Liabilities & Shareholders' Equity | |||||||||||
Demand Deposits | $ 207,643 |
$ 186,845 |
$ 187,048 |
$ 169,549 |
$ 166,145 |
||||||
NOW Accounts | 79,509 |
73,782 |
76,370 |
73,652 |
86,543 |
||||||
Other Interest Bearing Deposits | 316,124 |
304,223 |
282,874 |
270,106 |
250,958 |
||||||
Total Deposits | 603,276 |
564,850 |
546,292 |
513,307 |
503,646 |
||||||
Borrowed Funds | 10,000 |
15,000 |
15,000 |
40,000 |
24,000 |
||||||
Other Liabilities (a) | 9,452 |
8,806 |
6,562 |
2,258 |
2,295 |
||||||
Total Liabilities | 622,728 |
588,656 |
567,854 |
555,565 |
529,941 |
||||||
Common Stock (b) | 54,889 |
54,739 |
54,513 |
46,477 |
46,400 |
||||||
Retained Earnings | 19,653 |
18,105 |
16,600 |
14,831 |
13,339 |
||||||
Other Capital | (3) |
96 |
(229) |
(421) |
(677) |
||||||
Total Shareholders' Equity | 74,539 |
72,940 |
70,884 |
60,887 |
59,062 |
||||||
Total Liabilities & Shareholders' Equity | $ 697,267 |
$ 661,596 |
$ 638,738 |
$ 616,452 |
$ 589,003 |
||||||
Notes: | |
(a) Other assets and other liabilities primarily increased due to the adoption of ASU2016-02, "Leases (Topic 842)" as of January 1, 2019. As of September 30, 2019 the right of use asset totals $5.6 million and the operating lease liability is $6 million. The San Luis Obispo branch was added for the quarter ending June 30, 2019. | |
(b) Common stock increased in the first quarter 2019 due to $8.5 million common stock capital raise. |
Statements of Income (unaudited) | |||||||||||||
(dollars in thousands, except per share data) | |||||||||||||
Quarter Ended |
|
Nine Months Ended |
|||||||||||
Sep 30, |
|
Sep 30, |
|
|
|
Sep 30, |
|
Sep 30, |
|
|
|||
2019 |
|
2018 |
|
Change |
|
2019 |
|
2018 |
|
Change |
|||
Interest Income | |||||||||||||
Interest and Fees on Loans | $ 7,224 |
$ 6,256 |
15% |
$ 20,896 |
$ 17,294 |
21% |
|||||||
Net Fair Value Amortization Income | 71 |
118 |
-40% |
379 |
424 |
-11% |
|||||||
Interest on Securities | 264 |
266 |
-1% |
778 |
702 |
11% |
|||||||
Interest on Fed Funds | 0 |
1 |
-100% |
1 |
12 |
-92% |
|||||||
Interest on Due From Banks | 291 |
167 |
74% |
694 |
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