American Riviera Bancorp Announces Share Repurchase Program

Rhea-AI Summary

American Riviera Bancorp (OTCQX: ARBV), the holding company of American Riviera Bank, announced a share repurchase program worth up to $5 million, representing about 5% of its outstanding shares. The company's Board of Directors approved this action, demonstrating confidence in its financial health and commitment to shareholder value. Jeff DeVine, President & CEO, emphasized that the buyback is anticipated to boost earnings per share and book value per share. Repurchases will be funded through available working capital and operational cash flow. The program has no set expiration date and may be adjusted based on various factors including market conditions and trading volume. American Riviera Bank operates several branches in California and has been recognized for its strong financial performance and community reinvestment.

Positive

• Share repurchase program up to $5 million, representing 5% of outstanding shares.
• Expected to be accretive to earnings per share and book value per share.
• Strong financial performance and growing capital position.
• Repurchases to be funded from available working capital and operational cash flow.
• Flexibility in timing and volume of repurchases based on market conditions.
• No expiration date, allowing long-term strategic adjustments.
• Recognized for strong financial performance by Findley Reports.
• Received 'Outstanding' rating from FDIC for Community Reinvestment Act performance.

Negative

• Share repurchase program may dilute existing shareholders' value if not managed well.
• Open market repurchases can be affected by pricing and trading volume volatility.
• Program can be suspended, modified, or terminated at any time, causing uncertainty.

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- American Riviera Bancorp (“Company”) (OTCQX: ARBV), holding company of American Riviera Bank (“Bank”), announced that its Board of Directors has authorized the adoption of a share repurchase program under which the Company may repurchase up to $5.0 million of its common stock, representing approximately 5% of the Company’s issued and outstanding shares.

“This share repurchase program demonstrates the confidence our Board of Directors and management team have in the future of our business and our commitment to shareholder value. The repurchase decision is supported by our steady financial performance and growing capital position and is anticipated to be accretive to earnings per share and book value per share at the present market price of our shares,” said Jeff DeVine, President & CEO of the Company and the Bank.

Repurchases under the program may occur from time to time in open market transactions, in privately negotiated transactions, or by other means in accordance with federal securities laws and other restrictions. The Company intends to fund repurchases from available working capital and cash provided by operating activities. The timing of repurchases, as well as the number of shares repurchased, will depend on a variety of factors, including price; trading volume; business, economic and general market conditions; and the terms of any Rule 10b5-1 plan adopted by the Company. The repurchase program has no expiration date and may be suspended, modified, or terminated at any time without prior notice.

Company Profile

American Riviera Bancorp (OTCQX: ARBV) is a registered bank holding company headquartered in Santa Barbara, California. American Riviera Bank, the 100% owned subsidiary of American Riviera Bancorp, 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, Santa Maria, San Luis Obispo, and Paso Robles. The Bank provides commercial business, commercial real estate, residential mortgage, construction, and Small Business Administration lending services as well as convenient online and mobile technology. For thirteen consecutive years, the Bank has been recognized for strong financial performance by the Findley Reports and has received the highest “Super Premier” rating from Findley every year since 2016. The Bank was rated “Outstanding” by the Federal Deposit Insurance Corporation in 2023 for its performance under the Community Reinvestment Act.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240605672465/en/

American Riviera Bank

www.americanriviera.bank

805-965-5942

Michelle Martinich

Source: American Riviera Bancorp

FAQ

What is the value of American Riviera Bancorp's share repurchase program?

The share repurchase program is valued at up to $5 million.

How much of American Riviera Bancorp's stock will be repurchased?

The repurchase program represents approximately 5% of the company's issued and outstanding shares.

What impact will the share repurchase program have on earnings per share of ARBV?

The share repurchase program is anticipated to be accretive to earnings per share.

How will American Riviera Bancorp fund the share repurchase program?

The repurchases will be funded from available working capital and cash provided by operating activities.

Does American Riviera Bancorp's share repurchase program have an expiration date?

No, the share repurchase program has no expiration date and may be adjusted as needed.

What factors will influence the timing of American Riviera Bancorp's share repurchases?

The timing will depend on factors such as price, trading volume, business conditions, and market conditions.

What recent recognition has American Riviera Bank received for its financial performance?

American Riviera Bank has been recognized for thirteen consecutive years by the Findley Reports and received the highest 'Super Premier' rating every year since 2016.

How was American Riviera Bank rated by the FDIC for its Community Reinvestment Act performance?

The bank was rated 'Outstanding' by the FDIC in 2023.