Skip to main content

Market Overview

American Riviera Bank Reports Strong Growth and Expansion

Share:

American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $3,274,000 ($0.65 per share) for the six months ended June 30, 2019. This represents a 16% increase in net income from the $2,827,000 ($0.64 per share) for the same reporting period in the prior year. The Bank reported an annualized return on average assets of 1.07% and return on average equity of 10.06%. The Bank reported unaudited net income of $1,506,000 ($0.30 per share) for the second quarter ended June 30, 2019 compared to $1,475,000 ($0.33 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 first quarter ended March 31, 2019.

The Bank continues to experience significant growth, reporting $662 million in total assets as of June 30, 2019. Total deposits, excluding wholesale deposits, increased 16% from June 30, 2018. The Bank had $5 million of wholesale deposits at June 30, 2019, down from the $49 million at June 30, 2018. Over the past twelve months the Bank has replaced these wholesale deposits with local customer deposits. Non-interest bearing demand deposit accounts increased $18 million, or 11% from the same reporting period last year, reaching $187 million at June 30, 2019.

The Bank reported strong loan growth, with gross loans increasing $64 million, or 13% from June 30, 2018, reaching $542 million at June 30, 2019, with no other real estate owned and no loans 30 or more days past due. The Bank's net interest income increased by approximately $1.5 million, or 13% for the six months ended June 30, 2019, compared to the same reporting period in the prior year. The Bank reported an annualized net interest margin of 4.34% for the six months ended June 30, 2019, reflecting only modest compression from the 4.52% reported for the same reporting period last year.

Jeff DeVine, President and Chief Executive Officer stated, "We continue to invest in our expansion and are pleased to announce the opening of our full service branch in the City of San Luis Obispo which will allow us to better serve the needs of businesses and consumers in San Luis Obispo County. We look forward to welcoming new clients affected by mega-mergers who will benefit from our high level of service built on relationships with local decision makers."

As of June 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 $13.41 at June 30, 2019, a 14% increase from $11.80 at June 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 March 31, 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)

Jun 30,

Jun 30,

One Year

2019

2018

Change

Assets
Cash & Due From Banks

$

47,640

 

$

42,796

 

11

%

Fed Funds Sold

 

-

 

 

-

 

-

 

Securities

 

42,961

 

 

48,274

 

-11

%

 
Loans

 

541,869

 

 

477,837

 

13

%

Allowance For Loan Losses

 

(5,883

)

 

(4,895

)

20

%

Net Loans

 

535,986

 

 

472,942

 

13

%

 
Fixed Assets

 

6,528

 

 

5,294

 

23

%

Goodwill and Other Intangibles

 

5,427

 

 

5,606

 

-3

%

Other Assets

 

23,054

 

 

16,320

 

41

%

Total Assets

 

661,596

 

 

591,232

 

12

%

 
 
Liabilities & Shareholders' Equity
Demand Deposits

 

186,845

 

 

168,609

 

11

%

NOW Accounts

 

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com