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Market Overview

American Riviera Bank Reports over $600 Million in Assets


American Riviera Bank (OTC Markets: ARBV) announced today record
unaudited net income of $5,890,000 ($1.32 per share) for the year ended
December 31, 2018. This represents a 67% increase in net income from the
$3,536,000 ($0.80 per share) for the same reporting period in the prior
year. The annualized return on average assets of 1.03% and return on
average equity of 10.19% represent an increase from the 0.73% and 6.61%,
respectively, achieved for the same reporting period in the prior year.
For the fourth quarter ended December 31, 2018, the Bank reported
unaudited net income of $1,492,000 ($0.33 per share) compared to $35,000
($0.01 per share) for the fourth quarter last year.

Prior year results were negatively impacted by a non-recurring
$1,119,000 revaluation of deferred tax assets in the fourth quarter
ended December 31, 2017 related to enacted federal tax reform. In 2018
the Bank benefited from the lower federal income tax rate associated
with such reform, and reinvested by hiring 18 new employees and
continued our expansion into San Luis Obispo County.

The Bank's continued organic growth in Santa Barbara County and the
opening of our full-service Paso Robles branch resulted in a 20%
increase in total assets, with $616 million in total assets reported at
December 31, 2018. Asset growth was driven by strong loan demand, with
total loans increasing $94 million or 23% from December 31, 2017,
reaching $508 million at December 31, 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 4.51% for the year ended December
31, 2018.

As of December 31, 2018, the Bank reported $513 million in total
deposits. This represents a $65 million or 14% increase from the same
reporting period in the prior year. Checking accounts, comprised of
non-interest bearing demand deposits and interest bearing NOW accounts,
increased by $17 million or 8% from the same reporting period last year.

Jeff DeVine, President and Chief Executive Officer, stated, "2018
was an exciting year of growth for American Riviera Bank with assets
increasing just over $100 million. Our bankers are creating lasting
relationships with clients in our Central Coast communities by serving
their deposit and credit needs. As a result, the Bank continues to grow
our client base, asset size and earnings. We are looking forward to
further expansion in 2019 with a full-service branch in the City of San
Luis Obispo."

As of December 31, 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
$12.51 at December 31, 2018, a 12% increase from $11.16 at December 31,

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. Commercial lending offices are
located at 30 East Figueroa Street in Santa Barbara and 1085 Higuera
Street in San Luis Obispo. Our residential loan production office is
located at 18 East Figueroa Street 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 September 30, 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

Balance Sheets (unaudited)
(dollars in thousands)
    Dec 31,   Dec 31,   One Year
    2018 2017 Change
Cash & Due From Banks $ 41,271 $ 42,999 -4 %
Fed Funds Sold - 4,040 -100 %
Securities 46,010 33,534 37 %
Loans 508,397 414,165 23 %
Allowance For Loan Losses   (5,542 )   (4,260 ) 30 %
Net Loans 502,855 409,905 23 %
Fixed Assets 5,299 3,903 36 %
Goodwill and Other Intangibles 5,516 5,695 -3 %
Other Assets   15,501     15,046   3 %
Total Assets   616,452     515,122   20 %
Liabilities & Shareholders' Equity
Demand Deposits 169,549 148,332 14 %
NOW Accounts 73,652 77,483 -5 %
Other Interest Bearing Deposits   270,106     222,941   21 %
Total Deposits 513,307 448,756 14 %
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