American Riviera Bancorp Reports Quarterly Earnings

Rhea-AI Summary

American Riviera Bancorp (OTCQX: ARBV) reported unaudited net income of $3.2 million ($0.61 per share) for Q1 2022, marking a 23% increase from $2.6 million ($0.50 per share) in Q1 2021. Core loans grew 17% to $114.9 million year-over-year, with a 3% increase over the last quarter. The Bank's total deposits surged 27%, reaching $263.2 million since March 2021. The formation of American Riviera Bancorp and issuance of $18.0 million in subordinated notes aim to enhance capital ratios. As of March 31, the Tier 1 Capital ratios stood at 11% for the Company and 13% for the Bank.

Positive

• Net income increased by 23% to $3.2 million.
• Core loans grew 17% year-over-year.
• Total deposits increased by 27% amounting to $263.2 million.
• Capital ratios improved with the issuance of $18.0 million in subordinated notes.

Negative

• None.

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- American Riviera Bancorp (“Company”) (OTCQX: ARBV), holding company of American Riviera Bank (“Bank”), announced today unaudited net income of $3.2 million ($0.61 per share) for the three months ended March 31, 2022. This represents a 23% increase in net income from the $2.6 million ($0.50 per share) earned in the same reporting period in the prior year.

Core loans, excluding SBA PPP loans, have grown 17% or $114.9 million over the last year since March 31, 2021. Core loans have grown 3% or $22.9 million in the last quarter since December 31, 2021. PPP loan forgiveness has been efficiently handled for our small business clients, and only $11.6 million of these 1.00% interest rate loans remained outstanding at March 31, 2022. In the last year, the Bank originated higher-yielding core loans at a volume which exceeded PPP forgiveness and repayments. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $2.8 million or 0.36% of total loans excluding PPP on non-accrual status, which are well supported by collateral.

The Bank continues to experience tremendous deposit growth with a 27% or $263.2 million increase in total deposits over the last year since March 31, 2021. Non-interest-bearing demand deposits increased 19% or $76.4 million over the last year. Deposit inflows from our clients have been the driving factor in the total assets of the Company increasing 26% or $278.7 million since March 31, 2021 to a total of $1.4 billion at March 31, 2022.

Jeff DeVine, President and Chief Executive Officer, noted, “2022 is off to a great start! The formation of American Riviera Bancorp this quarter and its issuance of $18.0 million of 3.75% fixed to floating rate subordinated notes will bolster capital ratios at the Bank level and support our continued growth. SBA PPP loans have been replaced by higher-yielding core loans, and our sizeable balance sheet liquidity will generate increased interest income in a rising rate environment.”

As of March 31, 2022, the Company and Bank continue to be well capitalized with Tier 1 Capital ratios of 11% and 13%, respectively. The tangible book value per share of American Riviera Bancorp common stock is $16.33 at March 31, 2022.

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, 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 twelve 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 2020 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.

Balance Sheets (unaudited)
(dollars in thousands)
			Mar 31,				Mar 31,				One Year				One Year
			2022				2021				$ Change				% Change
Assets
	Cash & Due From Banks		$	320,683			$	187,886			$	132,797			71	%
	Securities			220,364				86,587				133,777			155	%
	Loans (excluding PPP)			776,395				661,520				114,875			17	%
	PPP Loans			11,633				119,429				(107,796	)		-90	%
	Allowance For Loan Losses			(9,394	)			(8,817	)			(577	)		7	%
	Net Loans			778,634				772,132				6,502			1	%
	Premises & Equipment			9,948				11,760				(1,812	)		-15	%
	Goodwill and Other Intangibles			5,080				5,191				(111	)		-2	%
	Other Assets			27,327				19,770				7,557			38	%
Total Assets			$	1,362,036			$	1,083,326			$	278,710			26	%
Liabilities & Shareholders' Equity
	Demand Deposits		$	481,619			$	405,264			$	76,355			19	%
	NOW Accounts			193,178				144,591				48,587			34	%
	Other Interest Bearing Deposits			571,595				433,310				138,285			32	%
	Total Deposits			1,246,392				983,165				263,227			27	%
	Borrowed Funds			18,000				5,000				13,000			260	%
	Other Liabilities			7,971				8,705				(734	)		-8	%
	Total Liabilities			1,272,363				996,870				275,493			28	%
	Common Stock			56,554				55,821				733			1	%
	Retained Earnings			43,370				31,163				12,207			39	%
	Other Capital			(10,251	)			(528	)			(9,723	)		1841	%
	Total Shareholders' Equity			89,673				86,456				3,217			4	%
Total Liabilities & Shareholders' Equity			$	1,362,036			$	1,083,326			$	278,710			26	%

Balance Sheets (unaudited)
(dollars in thousands)
			March 31,				December 31,				September 30,				June 30,				March, 31
			2022				2021				2021				2021				2021
Assets
	Cash & Due From Banks		$	320,683			$	292,111			$	262,965			$	233,502			$	187,886
	Securities			220,364				191,543				146,937				110,403				86,587
	Loans (excluding PPP)			776,395				753,494				728,316				701,399				661,520
	PPP Loans			11,633				39,996				50,966				76,093				119,429
	Allowance For Loan Losses			(9,394	)			(9,383	)			(9,376	)			(9,373	)			(8,817	)
	Net Loans			778,634				784,107				769,906				768,119				772,132
	Premises & Equipment			9,948				10,429				10,848				11,330				11,760
	Goodwill and Other Intangibles			5,080				5,075				5,135				5,166				5,191
	Other Assets			27,327				23,275				22,371				21,749				19,770
Total Assets			$	1,362,036			$	1,306,540			$	1,218,162			$	1,150,269			$	1,083,326
Liabilities & Shareholders' Equity
	Demand Deposits		$	481,619			$	470,763			$	435,489			$	428,577			$	405,264
	NOW Accounts			193,178				181,546				177,952				170,029				144,591
	Other Interest Bearing Deposits			571,595				549,781				502,237				452,867				433,310
	Total Deposits			1,246,392				1,202,090				1,115,678				1,051,473				983,165
	Borrowed Funds			18,000				-				-				-				5,000
	Other Liabilities			7,971				8,177				8,665				7,986				8,705
	Total Liabilities			1,272,363				1,210,267				1,124,343				1,059,459				996,870
	Common Stock			56,554				56,564				56,302				56,146				55,821
	Retained Earnings			43,370				40,432				37,685				34,735				31,163
	Other Capital			(10,251	)			(723	)			(168	)			(71	)			(528	)
	Total Shareholders' Equity			89,673				96,273				93,819				90,810				86,456
Total Liabilities & Shareholders' Equity			$	1,362,036			$	1,306,540			$	1,218,162			$	1,150,269			$	1,083,326

Statement of Income (unaudited)
(dollars in thousands, except per share data)
			Quarter Ended
			Mar 31,				Mar 31,
			2022				2021				Change
Interest Income
	Interest and Fees on Loans		$	8,600			$	7,874			9	%
	Fees on PPP Loans			913				946			3	%
	Net Fair Value Amortization Income			7				43			-84	%
	Interest on Securities			842				271			211	%
	Interest on Fed Funds			-				-			n/a
	Interest on Due From Banks			142				60			137	%
	Total Interest Income			10,504				9,194			14	%
Interest Expense
	Interest Expense on Deposits			210				263			-20	%
	Interest Expense on Borrowings			67				-			n/a
	Total Interest Expense			277				263			5	%
Net Interest Income				10,227				8,931			15	%
	Provision for Loan Losses			-				338			-100	%
Net Interest Income After Provision				10,227				8,593			19	%
Non-Interest Income
	Service Charges, Commissions and Fees			670				653			3	%
	Other Non-Interest Income			494				173			186	%
	Total Non-Interest Income			1,164				826			41	%
Non-Interest Expense
	Salaries and Employee Benefits			4,310				3,706			16	%
	Occupancy and Equipment			755				590			28	%
	Other Non-Interest Expense			1,895				1,530			24	%
	Total Non-Interest Expense			6,960				5,826			19	%
Net Income Before Provision for Taxes				4,431				3,593			23	%
Provision for Taxes				1,276				1,033			24	%
Net Income			$	3,155			$	2,560			23	%
	Shares (end of period)			5,178,965				5,127,895			1	%
	Earnings Per Share - Basic		$	0.61			$	0.50			22	%
	Return on Average Assets			1.00	%			1.07	%		-7	%
	Return on Average Equity			15.58	%			12.34	%		26	%
	Net Interest Margin			3.22	%			3.78	%		-15	%

Five Quarter Statements of Income (unaudited)
(dollars in thousands)
			Three Months Ended
			March 31,			December 31,			September 30,			June 30,			March 31,
			2022			2021			2021			2021			2021
Interest Income
	Interest and Fees on Loans		$	8,600		$	8,557		$	8,342		$	8,840		$	7,874
	Fees on PPP Loans			913			517			978			1,412			946
	Net Fair Value Amortization Income			7			25			419			19			43
	Interest on Securities			842			645			447			311			271
	Interest on Fed Funds			-			-			-			-			-
	Interest on Due From Banks			142			139			120			72			60
	Total Interest Income			10,504			9,883			10,306			10,654			9,194
Interest Expense
	Interest Expense on Deposits			210			207			220			259			263
	Interest Expense on Borrowings			67			-			-			-			-
	Total Interest Expense			277			207			220			259			263
Net Interest Income				10,227			9,676			10,086			10,395			8,931
	Provision for Loan Losses			-			-			-			-			338
Net Interest Income After Provision				10,227			9,676			10,086			10,395			8,593
Non-Interest Income
	Service Charges, Commissions and Fees			670			705			601			664			653
	Other Non-Interest Income			494			138			342			309			173
	Total Non-Interest Income			1,164			843			943			973			826
Non-Interest Expense
	Salaries and Employee Benefits			4,310			4,003			4,469			3,829			3,706
	Occupancy and Equipment			755			747			756			778			590
	Other Non-Interest Expense			1,895			1,991			1,769			1,792			1,530
	Total Non-Interest Expense			6,960			6,741			6,994			6,399			5,826
Net Income Before Provision for Taxes				4,431			3,778			4,035			4,969			3,593
Provision for Taxes				1,276			1,031			1,085			1,397			1,033
Net Income			$	3,155		$	2,747		$	2,950		$	3,572		$	2,560
	Shares (end of period)			5,178,965			5,134,993			5,130,937			5,132,809			5,127,895
	Earnings Per Share - Basic		$	0.61		$	0.53		$	0.58		$	0.70		$	0.50

Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
			At or for the Three Months Ended
			March 31,				December 31,				September 30,				June 30,				March 31,
			2022				2021				2021				2021				2021
Income and performance ratios:
	Net Income		$	3,155			$	2,747			$	2,950			$	3,572			$	2,560
	Earnings per share - basic			0.61				0.53				0.58				0.70				0.50
	Return on average assets			1.00	%			0.84	%			0.98	%			1.31	%			1.07	%
	Return on average equity			15.58	%			11.20	%			12.45	%			16.14	%			12.34	%
	Net interest margin			3.22	%			3.12	%			3.54	%			3.97	%			3.78	%
	Efficiency ratio (c)			60.48	%			64.51	%			63.80	%			56.25	%			59.06	%
Asset quality:
	Allowance for loan and lease losses		$	9,394			$	9,383			$	9,376			$	9,373			$	8,817
	Nonperforming assets			2,776				2,870				3,349				3,413				3,588
	Allowance for loan and lease losses / total loans and leases			1.19	%			1.18	%			1.20	%			1.21	%			1.13	%
	Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (a)			1.21	%			1.25	%			1.29	%			1.34	%			1.33	%
	Net charge-offs / average loans and leases (annualized)			-0.01	%			0.00	%			0.00	%			-0.28	%			-0.01	%
	Texas ratio (b)			2.95	%			2.85	%			3.41	%			3.59	%			3.98	%
Capital ratios for American Riviera Bank (d):
	Tier 1 risk-based capital			12.65	%			11.02	%			11.09	%			11.18	%			11.30	%
	Total risk-based capital			13.74	%			12.16	%			12.28	%			12.43	%			12.55	%
	Tier 1 leverage ratio			8.40	%			7.23	%			7.59	%			7.90	%			8.21	%
Capital ratios for American Riviera Bancorp (d):
	Tier 1 risk-based capital			10.82	%			N/A				N/A				N/A				N/A
	Total risk-based capital			11.91	%			N/A				N/A				N/A				N/A
	Tier 1 leverage ratio			7.27	%			N/A				N/A				N/A				N/A
Equity and share related:
	Common equity		$	89,673				96,273				93,819				90,810			$	86,456
	Book value per share			17.31				18.75				18.28				17.69				16.86
	Tangible book value per share			16.33				17.76				17.28				16.69				15.85
	Tangible book value per share, excluding AOCI			18.31				17.90				17.34				16.72				15.97
	Stock closing price per share			20.58				20.29				19.20				19.22				18.50
	Number of shares issued and outstanding			5,178.97				5,134.99				5,130.94				5,132.81				5,127.90

Notes:
(a)		PPP loans are 100% guaranteed by the Small Business Administration.
(b)		The sum of Nonperforming assets and Other Real Estate Owned, divided by the sum of Total Shareholder Equity and Total Allowance for Loan and Lease Losses (less Preferred Stock and Intangible Assets).
(c)		Annualized Operating Expense excluding Loan Loss Provisions minus Annualized Extraordinary Expense, divided by Annualized Interest Income including Loan Fees minus Annualized Interest Expense plus Annualized Non-Interest Income minus Annualized Extraordinary Income, expressed as a percentage.
(d)		Current period capital ratios are preliminary

 

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American Riviera Bank

www.americanriviera.bank

805-965-5942

Michelle Martinich

Source: American Riviera Bancorp

FAQ

What were the earnings results for ARBV in Q1 2022?

American Riviera Bancorp reported a net income of $3.2 million, or $0.61 per share.

How much did total deposits increase for ARBV?

Total deposits increased by 27%, amounting to $263.2 million since March 31, 2021.

What is the growth percentage of core loans for ARBV?

Core loans grew by 17% year-over-year.

What are the Tier 1 Capital ratios for ARBV?

As of March 31, 2022, the Tier 1 Capital ratios were 11% for the Company and 13% for the Bank.