American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $3,501,000 ($0.80 per share) for the nine months ended September 30, 2017, an increase from $3,015,000 ($0.69 per share) for the first nine months of 2016. The annualized return on average assets of 0.99% and return on average equity of 8.92% represent an increase from the 0.95% and 8.69%, respectively, achieved for the same reporting period in the prior year. The Bank reported unaudited net income of $1,383,000 ($0.31 per share) for the third quarter ended September 30, 2017 compared to $1,409,000 ($0.32 per share) for the same quarter last year.
The Bank experienced significant organic growth in the last year, reporting $518 million in total assets as of September 30, 2017. Growth was driven by total deposits increasing 18% from September 30, 2016, reaching $462 million at September 30, 2017. Non-interest bearing demand deposits increased 20% from the same reporting period last year and now represent 35% of total deposits. Deposit origination volume is noteworthy, as the Bank has opened over 1,400 new accounts during the first nine months of 2017, which exceeds new account origination for the entire 2016 year.
Loan demand remained strong, with total loans increasing 17% from September 30, 2016, reaching $406 million at September 30, 2017 with no other real estate owned. The Bank reported an annualized net interest margin of 4.67% for the nine months ending September 30, 2017.
Jeff DeVine, President and Chief Executive Officer stated, "American Riviera Bank is pleased to announce a 16% increase in year to date earnings per share. We plan to re-invest some of our earnings with expansion into San Luis Obispo County as previously announced, and are excited to have our loan production office now open in Paso Robles with an excellent team to serve the community's needs. We look forward to opening our full service branch in Paso Robles in early 2018."
As of September 30, 2017, American Riviera Bank maintained a strong capital position 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 is $11.12 at September 30, 2017, a 9% increase from $10.24 at September 30, 2016.
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 and 5880 Calle Real in Goleta. Loan production offices are located at 205 Oak Hill Road #106 in Paso Robles and 18 East Figueroa in Santa Barbara. For seven 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 2016. As of June 30, 2017, 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) | |||||||||||||
| Sept 30, | Sept 30, | One Year | |||||||||||
| 2017 | 2016 | Change | |||||||||||
| Assets | |||||||||||||
| Cash & Due From Banks | $ | 59,861 | $ | 52,996 | 13 | % | |||||||
| Fed Funds Sold | 11,428 | 38,458 | -70 | % | |||||||||
| Securities | 22,351 | 6,581 | 240 | % | |||||||||
| Loans | 405,947 | 347,345 | 17 | % | |||||||||
| Allowance For Loan Losses | (4,076 | ) | (3,226 | ) | 26 | % | |||||||
| Net Loans | 401,871 | 344,119 | 17 | % | |||||||||
| Fixed Assets | 1,261 | 1,351 | -7 | % | |||||||||
| Goodwill and Other Intangibles | 5,740 | 5,071 | 13 | % | |||||||||
| Other Assets | 15,716 | 14,996 | 5 | % | |||||||||
| Total Assets | 518,228 | 463,572 | 12 | % | |||||||||
| Liabilities & Shareholders' Equity | |||||||||||||
| Demand Deposits | 162,835 | 135,757 | 20 | % | |||||||||
| Interest Bearing Deposits | 299,245 | 256,418 | 17 | % | |||||||||
| Total Deposits | 462,080 | 392,175 | 18 | % | |||||||||
| Borrowed Funds | - | 20,000 | -100 | % | |||||||||
| Other Liabilities | 1,504 | 1,643 | -8 | % | |||||||||
| Total Liabilities | 463,584 | 413,818 | 12 | % | |||||||||
| Common Stock | 42,820 | 42,946 | 0 | % | |||||||||
| Retained Earnings | 11,851 | 6,810 | 74 | % | |||||||||
| Other Capital | (27 | ) | (2 | ) | 1250 | % | |||||||
| Total Shareholders' Equity | 54,644 | 49,754 | 10 | % | |||||||||
| Total Liabilities & Shareholders' Equity | $ | 518,228 | $ | 463,572 | 12 | % | |||||||
| Book Value Per Share | $ | 12.42 | $ | 11.40 | 9 | % | |||||||
| Tangible Book Value Per Share | $ | 11.12 | $ | 10.24 | 9 | % | |||||||
| Statements of Income (unaudited) | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Quarter Ended | 9 Months Ended | ||||||||||||||||||||||
| Sept 30, | Sept 30, | Sept 30, | Sept 30, | ||||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
| Interest Income | |||||||||||||||||||||||
| Interest and Fees on Loans | $ | 5,275 | $ | 4,780 | 10 | % | $ | 15,186 | $ | 14,237 | 7 | % | |||||||||||
| Net Fair Value Amortization Income | 246 | 194 | 27 | % | 597 | 771 | -23 | % | |||||||||||||||
| Interest on Securities | 85 | 23 | 264 | % | 145 | 80 | 81 | % | |||||||||||||||
| Interest on Fed Funds | 38 | 36 | 5 | % | 80 | 52 | 53 | % | |||||||||||||||
| Interest on Due From Banks | 142 | 44 | 222 | % | 317 | 123 | 159 | % | |||||||||||||||
| Total Interest Income | 5,786 | 5,077 | 14 | % | 16,325 | 15,263 | 7 | % | |||||||||||||||
| Interest Expense | |||||||||||||||||||||||
| Interest Expense on Deposits | 273 | 190 | 44 | % | 738 | 591 | 25 | % | |||||||||||||||
| Interest Expense on Borrowings | 1 | 30 | -98 | % | 23 | 66 | -65 | % | |||||||||||||||
| Total Interest Expense | 274 | 220 | 25 | % | 761 | 657 | 16 | % | |||||||||||||||
| Net Interest Income | 5,512 | 4,857 | 13 | % | 15,564 | 14,606 | 7 | % | |||||||||||||||
| Provision for Loan Losses | 68 | 137 | -50 | % | 707 | 388 | 82 | % | |||||||||||||||
| Net Interest Income After Provision | 5,444 | 4,720 | 15 | % | 14,857 | 14,218 | 4 | % | |||||||||||||||
| Non-Interest Income | |||||||||||||||||||||||
| Service Charges, Commissions and Fees | 288 | 309 | -7 | % | 863 | 927 | -7 | % | |||||||||||||||
| Other Non-Interest Income | 74 | 88 | -15 | % | 240 | 254 | -6 | % | |||||||||||||||
| Total Non-Interest Income | 362 | 397 | -9 | % | 1,103 | 1,181 | -7 | % | |||||||||||||||
| Non-Interest Expense | |||||||||||||||||||||||
| Salaries and Employee Benefits | 2,027 | 1,783 | 14 | % | 5,880 | 5,740 | 2 | % | |||||||||||||||
| Occupancy and Equipment | 415 | 395 | 5 | % | 1,155 | 1,161 | 0 | % | |||||||||||||||
| Other Non-Interest Expense | 1,005 | 973 | 3 | % | 3,106 | 3,539 | -12 | % | |||||||||||||||
| Total Non-Interest Expense | 3,447 | 3,151 | 9 | % | 10,141 | 10,440 | -3 | % | |||||||||||||||
| Net Income Before Provision for Taxes | 2,359 | 1,966 | 20 | % | 5,819 | 4,959 | 17 | % | |||||||||||||||
| Provision for Taxes | 976 | 557 | 75 | % | 2,318 | 1,944 | 19 | % | |||||||||||||||
| Net Income | 1,383 | 1,409 | -2 | % | 3,501 | 3,015 | 16 | % | |||||||||||||||
| Shares (end of period) | 4,400,663 | 4,362,930 | 1 | % | 4,400,663 | 4,362,930 | 1 | % | |||||||||||||||
| Earnings Per Share - Basic | $ | 0.31 | $ | 0.32 | -3 | % | $ | 0.80 | $ | 0.69 | 16 | % | |||||||||||
| Return on Average Assets (annualized) | 1.06 | % | 1.23 | % | 0.99 | % | 0.95 | % | |||||||||||||||
| Return on Average Equity (annualized) | 9.90 | % | 11.25 | % | 8.92 | % | 8.69 | % | |||||||||||||||
| Net Interest Margin (annualized) | 4.62 | % | 4.57 | % | 4.67 | % | 4.84 | % | |||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171024006827/en/
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
