American Riviera Bank (OTC Markets: ARBV) announced today that excluding a nonrecurring charge to tax expense, the Bank reported unaudited net income of $4,655,000 ($1.06 per share), a 0.96% return on average assets and an 8.70% return on average equity for the year ended December 31, 2017. This is an increase in net income from the $4,130,000 ($0.94 per share) reported for the previous fiscal year. As a result of the Tax Cuts and Job Act enacted December 22, 2017, the Bank revalued its deferred tax assets and liabilities to account for the decrease in the federal corporate rate. The Bank recorded a one-time net tax expense of $1,119,000 ($0.25 per share) which is reflected in American Riviera Bank's operating results for the fourth quarter of 2017 and was in addition to the normal provision for income taxes. As a result of this revaluation, the Bank reported unaudited net income for the year ended December 31, 2017 of $3,536,000 ($0.80 per share). For the fourth quarter ended December 31, 2017, the Bank reported unaudited net income of $35,000 ($0.01 per share) compared to $1,115,000 ($0.26 per share) for the same quarter last year.
The Bank experienced significant organic growth in the last year, reporting $515 million in total assets as of December 31, 2017. Asset growth was made possible by total deposits increasing 15% from December 31, 2016, reaching $449 million at December 31, 2017. Non-interest bearing demand deposits increased 12% from the same reporting period last year. Deposit origination volume is noteworthy, with the Bank opening over 1,885 new accounts at our three locations during 2017.
Loan demand remained strong, with total loans increasing 16% from December 31, 2016, reaching $414 million at December 31, 2017 with no other real estate owned. The Bank reported an annualized net interest margin of 4.61% for the year ending December 31, 2017.
Jeff DeVine, President and Chief Executive Officer stated, "We are very pleased with the Bank's strong growth in loans, deposits, net income and book value. We have been investing in our expansion into San Luis Obispo County and expect to open our Paso Robles branch in March. Although the Tax Cuts and Job Act required us to incur unplanned tax expense in 2017, we expect the benefits of the reduced tax rate to have an ongoing positive impact on the Bank's earnings."
During the fourth quarter of 2017, the Bank purchased property and began improvements for the Paso Robles branch that is anticipated to open in March of 2018. As of December 31, 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 $11.16 at December 31, 2017, an 8% increase from $10.32 at December 31, 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 September 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.
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Balance Sheets (unaudited) |
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| (dollars in thousands) | |||||||||||||
| Dec 31, | Dec 31, | One Year | |||||||||||
| 2017 | 2016 | Change | |||||||||||
| Assets | |||||||||||||
| Cash & Due From Banks | $ | 42,999 | $ | 45,332 | -5 | % | |||||||
| Fed Funds Sold | 4,040 | 19,539 | -79 | % | |||||||||
| Securities | 33,533 | 5,722 | 486 | % | |||||||||
| Loans | 414,166 | 356,471 | 16 | % | |||||||||
| Allowance For Loan Losses | (4,260 | ) | (3,368 | ) | 26 | % | |||||||
| Net Loans | 409,906 | 353,103 | 16 | % | |||||||||
| Fixed Assets | 3,903 | 1,303 | 200 | % | |||||||||
| Goodwill and Other Intangibles | 5,695 | 5,874 | -3 | % | |||||||||
| Other Assets | 15,046 | 15,103 | 0 | % | |||||||||
| Total Assets | 515,122 | 445,976 | 16 | % | |||||||||
|
Liabilities & Shareholders' Equity |
|||||||||||||
| Demand Deposits | 148,333 | 132,965 | 12 | % | |||||||||
| Interest Bearing Deposits | 300,425 | 258,857 | 16 | % | |||||||||
| Total Deposits | 448,758 | 391,822 | 15 | % | |||||||||
| Borrowed Funds | 10,000 | 2,000 | 400 | % | |||||||||
| Other Liabilities | 1,680 | 1,194 | 41 | % | |||||||||
| Total Liabilities | 460,438 | 395,016 | 17 | % | |||||||||
| Common Stock | 42,837 | 42,933 | 0 | % | |||||||||
| Retained Earnings | 11,972 | 8,048 | 49 | % | |||||||||
| Other Capital | (125 | ) | (21 | ) | 495 | % | |||||||
| Total Shareholders' Equity | 54,684 | 50,960 | 7 | % | |||||||||
| Total Liabilities & Shareholders' Equity | $ | 515,122 | $ | 445,976 | 16 | % | |||||||
| Book Value Per Share | $ | 12.45 | $ | 11.66 | 7 | % | |||||||
| Tangible Book Value Per Share | $ | 11.16 | $ | 10.32 | 8 | % | |||||||
| Statements of Income (unaudited) | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||
| Quarter Ended | 12 Months Ended | ||||||||||||||||||||||
| Dec 31, | Dec 31, | Dec 31, | Dec 31, | ||||||||||||||||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
| Interest Income | |||||||||||||||||||||||
| Interest and Fees on Loans | $ | 5,272 | $ | 4,852 | 9 | % | $ | 20,235 | $ | 19,088 | 6 | % | |||||||||||
| Net Fair Value Amortization Income | 96 | 415 | -77 | % | 916 | 1,187 | -23 | % | |||||||||||||||
| Interest on Securities | 120 | 21 | 475 | % | 265 | 101 | 162 | % | |||||||||||||||
| Interest on Fed Funds | 21 | 46 | -56 | % | 100 | 98 | 2 | % | |||||||||||||||
| Interest on Due From Banks | 132 | 50 | 164 | % | 450 | 173 | 160 | % | |||||||||||||||
| Total Interest Income | 5,641 | 5,384 | 5 | % | 21,966 | 20,647 | 6 | % | |||||||||||||||
| Interest Expense | |||||||||||||||||||||||
| Interest Expense on Deposits | 276 | 214 | 29 | % | 1,014 | 805 | 26 | % | |||||||||||||||
| Interest Expense on Borrowings | 1 | 15 | -93 | % | 24 | 81 | -70 | % | |||||||||||||||
| Total Interest Expense | 277 | 229 | 21 | % | 1,038 | 886 | 17 | % | |||||||||||||||
| Net Interest Income | 5,364 | 5,155 | 4 | % | 20,928 | 19,761 | 6 | % | |||||||||||||||
| Provision for Loan Losses | 207 | 117 | 77 | % | 914 | 505 | 81 | % | |||||||||||||||
| Net Interest Income After Provision | 5,157 | 5,038 | 2 | % | 20,014 | 19,256 | 4 | % | |||||||||||||||
| Non-Interest Income | |||||||||||||||||||||||
| Service Charges, Commissions and Fees | 231 | 279 | -17 | % | 1,094 | 1,206 | -9 | % | |||||||||||||||
| Other Non-Interest Income | 76 | 174 | -56 | % | 316 | 427 | -26 | % | |||||||||||||||
| Total Non-Interest Income | 307 | 453 | -32 | % | 1,410 | 1,633 | -14 | % | |||||||||||||||
| Non-Interest Expense | |||||||||||||||||||||||
| Salaries and Employee Benefits | 2,186 | 2,008 | 9 | % | 8,066 | 7,748 | 4 | % | |||||||||||||||
| Occupancy and Equipment | 397 | 388 | 2 | % | 1,553 | 1,549 | 0 | % | |||||||||||||||
| Other Non-Interest Expense | 1,005 | 1,027 | -2 | % | 4,110 | 4,565 | -10 | % | |||||||||||||||
| Total Non-Interest Expense | 3,588 | 3,423 | 5 | % | 13,729 | 13,862 | -1 | % | |||||||||||||||
| Net Income Before Provision for Taxes | 1,876 | 2,068 | -9 | % | 7,695 | 7,027 | 10 | % | |||||||||||||||
| Provision for Taxes | 722 | 953 | -24 | % | 3,040 | 2,897 | 5 | % | |||||||||||||||
| Non Recurring Tax Provision | 1,119 | - | 100 | % | 1,119 | - | 100 | % | |||||||||||||||
| Net Income | $ | 35 | $ | 1,115 | -97 | % | $ | 3,536 | $ | 4,130 | -14 | % | |||||||||||
| Shares (end of period) | 4,402,841 | 4,372,290 | 1 | % | 4,402,841 | 4,372,290 | 1 | % | |||||||||||||||
| Earnings Per Share - Basic | $ | 0.01 | $ | 0.26 | -97 | % | $ | 0.80 | $ | 0.94 | -14 | % | |||||||||||
| Return on Average Assets (annualized) | 0.00 | % | 0.95 | % | 0.73 | % | 0.95 | % | |||||||||||||||
| Return on Average Equity (annualized) | 0.00 | % | 8.59 | % | 6.61 | % | 8.65 | % | |||||||||||||||
| Net Interest Margin (annualized) | 4.42 | % | 4.74 | % | 4.61 | % | 4.81 | % | |||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20180131006450/en/
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