American Riviera Bancorp Reports Quarterly Earnings

Rhea-AI Summary

American Riviera Bancorp (OTCQX: ARBV) reported unaudited net income of $5.7 million ($1.10 per share) for the first half of 2022, down from $6.1 million ($1.19 per share) in 2021. For Q2 2022, net income was $2.5 million ($0.49 per share), decreasing from $3.6 million ($0.70 per share) in 2021. The drop is attributed to $1.2 million less in PPP loan fee income. Core loans increased 22% year-over-year, and total deposits rose 19%, reaching $1.4 billion. Capital ratios remained strong, with Tier 1 Capital at 10%.

Positive

• Core loans grew by 22% or $153.2 million over the past year.
• Total deposits increased by 19% or $203.7 million over the last year.
• The Bank maintained strong credit quality with no loans 90 days or more past due.

Negative

• Net income for H1 2022 decreased by $0.4 million compared to H1 2021.
• Q2 2022 net income fell by $1.1 million year-over-year.

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- American Riviera Bancorp (“Company”) (OTCQX: ARBV), holding company of American Riviera Bank (“Bank”), announced today unaudited net income of $5.7 million ($1.10 per share) for the six months ended June 30, 2022 compared to the $6.1 million ($1.19 per share) earned in the same reporting period in the previous year. Unaudited net income was $2.5 million ($0.49 per share) for the three months ended June 30, 2022 compared to the $3.6 million ($0.70 per share) earned in the same reporting period in the previous year. The decline in year to date net income in 2022 compared to 2021 is primarily attributable to higher amounts of non-recurring SBA PPP loan fee income in 2021. PPP fee income recognized was $1.2 million lower in the six months ending June 30, 2022 than recognized in the same reporting period in the previous year.

The Bank has generated substantial loan growth, deploying liquidity into “core loans” which exclude SBA PPP loans. Core loans have grown 22% or $153.2 million over the last year since June 30, 2021, 13% or $101.1 million year to date since December 31, 2021, and 10% or $78.2 million in the last quarter since March 31, 2022. PPP loan forgiveness has been efficiently handled for our small business clients, and only $6.2 million of these 1.00% interest rate loans remained outstanding at June 30, 2022. The $0.9 million addition to allowance for loan and lease loss in 2022 was necessary based on the core loan growth reported above. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $3.5 million or 0.41% of total loans excluding PPP on non-accrual status, which are well supported by collateral and reserves.

The Bank continues to experience substantial deposit growth with a 19% or $203.7 million increase in total deposits over the last year since June 30, 2021. Non-interest-bearing demand deposits increased 14% or $58.6 million over the last year. Deposit inflows from our clients have been the driving factor in the total assets of the Company increasing 19% or $212.9 million since June 30, 2021 to a total of $1.4 billion at June 30, 2022. The Company’s overall cost of funds has increased slightly to 0.12% as of June 30, 2022, primarily attributable to interest on the subordinated notes issued in February 2022.

Jeff DeVine, President and Chief Executive Officer noted, “The Bank continues to respond to the needs of our community by deploying the deposits that our clients have entrusted us with into loans right here on the Central Coast! This is the value proposition of the community banking model. We know that the financial strength of our Bank and the dedication and experience of our team will allow American Riviera Bank to continue to support the economic growth and vitality of our businesses and consumers.”

As of June 30, 2022, the Company and Bank continue to be well capitalized with Tier 1 Capital ratios of 10% and 12%, respectively. The tangible book value per share of American Riviera Bancorp common stock is $15.17 at June 30, 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)
		Jun 30, 2022				Jun 30, 2021				One Year $ Change				One Year % Change
Assets
Cash & Due From Banks		$	212,675			$	233,502			$	(20,827	)		-9	%
Securities			250,132				110,403				139,729			127	%
Loans (excluding PPP)			854,593				701,399				153,194			22	%
PPP Loans			6,169				76,093				(69,924	)		-92	%
Allowance For Loan Losses			(10,367	)			(9,373	)			(994	)		11	%
Net Loans			850,395				768,119				82,276			11	%
Premise & Equipment			9,491				11,330				(1,839	)		-16	%
Goodwill and Other Intangibles			5,025				5,166				(141	)		-3	%
Other Assets			35,470				21,749				13,721			63	%
Total Assets		$	1,363,188			$	1,150,269			$	212,919			19	%
Liabilities & Shareholders' Equity
Demand Deposits		$	487,187			$	428,577			$	58,610			14	%
NOW Accounts			196,485				170,029				26,456			16	%
Other Interest Bearing Deposits			571,544				452,867				118,677			26	%
Total Deposits			1,255,216				1,051,473				203,743			19	%
Borrowed Funds			18,000				-				18,000			100	%
Other Liabilities			6,460				7,986				(1,526	)		-19	%
Total Liabilities			1,279,676				1,059,459				220,217			21	%
Common Stock			56,897				56,146				751			1	%
Retained Earnings			45,922				34,735				11,187			32	%
Other Capital			(19,307	)			(71	)			(19,236	)		27,093	%
Total Shareholders' Equity			83,512				90,810				(7,298	)		-8	%
Total Liabilities & Shareholders' Equity		$	1,363,188			$	1,150,269			$	212,919			19	%

Balance Sheets (unaudited)
(dollars in thousands)
		June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021				June 30, 2021
Assets
Cash & Due From Banks		$	212,675			$	320,683			$	292,111			$	262,965			$	233,502
Securities			250,132				220,364				191,543				146,937				110,403
Loans (excluding PPP)			854,593				776,395				753,494				728,316				701,399
PPP Loans			6,169				11,633				39,996				50,966				76,093
Allowance For Loan Losses			(10,367	)			(9,394	)			(9,383	)			(9,376	)			(9,373	)
Net Loans			850,395				778,634				784,107				769,906				768,119
Premise & Equipment			9,491				9,948				10,429				10,848				11,330
Goodwill and Other Intangibles			5,025				5,080				5,075				5,135				5,166
Other Assets			35,470				27,327				23,275				22,371				21,749
Total Assets		$	1,363,188			$	1,362,036			$	1,306,540			$	1,218,162			$	1,150,269
Liabilities & Shareholders' Equity
Demand Deposits		$	487,187			$	481,619			$	470,763			$	435,489			$	428,577
NOW Accounts			196,485				193,178				181,546				177,952				170,029
Other Interest Bearing Deposits			571,544				571,595				549,781				502,237				452,867
Total Deposits			1,255,216				1,246,392				1,202,090				1,115,678				1,051,473
Borrowed Funds			18,000				18,000				-				-				-
Other Liabilities			6,460				7,971				8,177				8,665				7,986
Total Liabilities			1,279,676				1,272,363				1,210,267				1,124,343				1,059,459
Common Stock			56,897				56,554				56,564				56,302				56,146
Retained Earnings			45,922				43,370				40,432				37,685				34,735
Other Capital			(19,307	)			(10,251	)			(723	)			(168	)			(71	)
Total Shareholders' Equity			83,512				89,673				96,273				93,819				90,810
Total Liabilities & Shareholders' Equity		$	1,363,188			$	1,362,036			$	1,306,540			$	1,218,162			$	1,150,269

Statement of Income (unaudited)
(dollars in thousands, except per share data)
		Quarter Ended											Six Months Ended
		Jun 30, 2022				Jun 30, 2021				Change			Jun 30, 2022				Jun 30, 2021				Change
Interest Income
Interest and Fees on Loans		$	9,356			$	8,840			6	%		$	17,956			$	16,714			7	%
Fees on PPP Loans			209				1,412			-85	%		$	1,122				2,358			-52	%
Net Fair Value Amortization Income			(9	)			19			-147	%		$	(2	)			62			-103	%
Interest on Securities			1,116				311			259	%			1,957				583			236	%
Interest on Due From Banks			512				72			611	%			654				132			395	%
Total Interest Income			11,184				10,654			5	%			21,687				19,849			9	%
Interest Expense
Interest Expense on Deposits			216				259			-17	%			426				522			-18	%
Interest Expense on Borrowings			166				-			100	%			233				-			100	%
Total Interest Expense			382				259			47	%			659				522			26	%
Net Interest Income			10,802				10,395			4	%			21,028				19,327			9	%
Provision for Loan Losses			916				-			100	%			916				338			171	%
Net Interest Income After Provision			9,886				10,395			-5	%			20,112				18,989			6	%
Non-Interest Income
Service Charges, Commissions and Fees			672				664			1	%			1,342				1,317			2	%
Other Non-Interest Income			20				309			-94	%			514				483			6	%
Total Non-Interest Income			692				973			-29	%			1,856				1,800			3	%
Non-Interest Expense
Salaries and Employee Benefits			4,326				3,829			13	%			8,636				7,535			15	%
Occupancy and Equipment			766				778			-2	%			1,521				1,368			11	%
Other Non-Interest Expense			2,119				1,792			18	%			4,014				3,323			21	%
Total Non-Interest Expense			7,211				6,399			13	%			14,171				12,226			16	%
Net Income Before Provision for Taxes			3,367				4,969			-32	%			7,797				8,563			-9	%
Provision for Taxes			818				1,397			-41	%			2,093				2,431			-14	%
Net Income		$	2,549			$	3,572			-29	%		$	5,704			$	6,132			-7	%
Shares (end of period)			5,173,373				5,132,809			1	%			5,173,373				5,132,809			1	%
Earnings Per Share - Basic		$	0.49			$	0.70			-30	%		$	1.10			$	1.19			-8	%
Return on Average Assets			0.75	%			1.31	%		-43	%			0.95	%			1.20	%		-21	%
Return on Average Equity			11.40	%			16.14	%		-29	%			13.41	%			14.26	%		-6	%
Net Interest Margin			3.26	%			3.97	%		-18	%			3.30	%			3.88	%		-15	%

Five Quarter Statements of Income (unaudited)
(dollars in thousands, except per share data)
		Three Months Ended
		June 30, 2022				March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021
Interest Income
Interest and Fees on Loans		$	9,356			$	8,600		$	8,557		$	8,342		$	8,840
Fees on PPP Loans			209				913			517			978			1,412
Net Fair Value Amortization Income			(9	)			7			25			419			19
Interest on Securities			1,116				842			645			447			311
Interest on Due From Banks			512				142			139			120			72
Total Interest Income			11,184				10,504			9,883			10,306			10,654
Interest Expense
Interest Expense on Deposits			216				210			207			220			259
Interest Expense on Borrowings			166				67			-			-			-
Total Interest Expense			382				277			207			220			259
Net Interest Income			10,802				10,227			9,676			10,086			10,395
Provision for Loan Losses			916				-			-			-			-
Net Interest Income After Provision			9,886				10,227			9,676			10,086			10,395
Non-Interest Income
Service Charges, Commissions and Fees			672				670			705			601			664
Other Non-Interest Income			20				494			138			342			309
Total Non-Interest Income			692				1,164			843			943			973
Non-Interest Expense
Salaries and Employee Benefits			4,326				4,310			4,003			4,469			3,829
Occupancy and Equipment			766				755			747			756			778
Other Non-Interest Expense			2,119				1,895			1,991			1,769			1,792
Total Non-Interest Expense			7,211				6,960			6,741			6,994			6,399
Net Income Before Provision for Taxes			3,367				4,431			3,778			4,035			4,969
Provision for Taxes			818				1,276			1,031			1,085			1,397
Net Income		$	2,549			$	3,155		$	2,747		$	2,950		$	3,572
Shares (end of period)			5,173,373				5,178,965			5,134,993			5,130,937			5,132,809
Earnings Per Share - Basic		$	0.49			$	0.61		$	0.53		$	0.58		$	0.70

Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
		At or for the Three Months Ended
		June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021				June 30, 2021
Income and performance ratios:
Net Income		$	2,549			$	3,155			$	2,747			$	2,950			$	3,572
Earnings per share - basic			0.49				0.61				0.53				0.58				0.70
Return on average assets			0.75	%			1.00	%			0.84	%			0.98	%			1.31	%
Return on average equity			11.40	%			15.58	%			11.20	%			12.45	%			16.14	%
Cost of Funds			0.12	%			0.09	%			0.07	%			0.08	%			0.10	%
Net interest margin			3.26	%			3.22	%			3.12	%			3.54	%			3.97	%
Efficiency ratio (c)			62.89	%			60.48	%			64.51	%			63.80	%			56.25	%
Asset quality:
Allowance for loan and lease losses		$	10,367			$	9,394			$	9,383			$	9,376			$	9,373
Nonperforming assets			3,505				2,776				2,870				3,349				3,413
Allowance for loan and lease losses / total loans and leases			1.20	%			1.19	%			1.18	%			1.20	%			1.21	%
Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (a)			1.21	%			1.21	%			1.25	%			1.29	%			1.34	%
Net charge-offs / average loans and leases (annualized)			-0.03	%			-0.01	%			0.00	%			0.00	%			-0.28	%
Texas ratio (b)			3.94	%			2.95	%			2.85	%			3.41	%			3.59	%
Capital ratios for American Riviera Bank (d):
Tier 1 risk-based capital			11.85	%			12.53	%			11.02	%			11.09	%			11.18	%
Total risk-based capital			12.94	%			13.59	%			12.16	%			12.28	%			12.43	%
Tier 1 leverage ratio			8.29	%			8.75	%			7.23	%			7.59	%			7.90	%
Capital ratios for American Riviera Bancorp (d):
Tier 1 risk-based capital			10.15	%			10.82	%			N/A				N/A				N/A
Total risk-based capital			11.24	%			11.91	%			N/A				N/A				N/A
Tier 1 leverage ratio			7.11	%			7.27	%			N/A				N/A				N/A
Equity and share related:
Common equity		$	83,512				89,673				96,273				93,819			$	90,810
Book value per share			16.14				17.31				18.75				18.28				17.69
Tangible book value per share			15.17				16.33				17.76				17.28				16.69
Tangible book value per share, excluding AOCI (e)			18.90				18.31				17.90				17.34				16.72
Stock closing price per share			17.90				20.58				20.29				19.20				19.22
Number of shares issued and outstanding			5,173.37				5,178.97				5,134.99				5,130.94				5,132.81

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.
	(e) Accumulated Other Comprehensive Income (AOCI), is comprised of the unrealized loss on securities and is presented as Other Capital on the Balance Sheet.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220721006091/en/

American Riviera Bank

www.americanriviera.bank

805-965-5942

Michelle Martinich

Source: American Riviera Bancorp

FAQ

What were the earnings results for American Riviera Bancorp in the first half of 2022?

American Riviera Bancorp reported unaudited net income of $5.7 million ($1.10 per share) for the first half of 2022.

How did the loan growth of American Riviera Bancorp perform in 2022?

The bank's core loans increased by 22% or $153.2 million compared to the previous year.

What is the status of American Riviera Bank's deposits as of June 30, 2022?

Total deposits increased by 19% or $203.7 million, reaching $1.4 billion.

What is the Tier 1 Capital ratio for American Riviera Bancorp as of June 30, 2022?

The Tier 1 Capital ratio for the company was 10% as of June 30, 2022.