American Riviera Bank Reports 20% Core Loan Growth

Rhea-AI Summary

American Riviera Bank (OTCQX: ARBV) reported unaudited net income of $9,082,000 ($1.77 per share) for the nine months ending September 30, 2021, marking an 82% increase from $5,000,000 in the prior year. The bank's annualized return on average assets stands at 1.12% and return on average equity at 13.64%. Core loans grew 20% or $124 million year-over-year, while total deposits increased 35% or $287 million. As of September 30, 2021, the bank maintained a strong credit quality with a Tier 1 Capital Ratio of 11%.

Positive

• 82% increase in net income to $9,082,000 for the nine months ended September 30, 2021.
• 20% growth in core loans, totaling $124 million year-over-year.
• 35% increase in total deposits, amounting to $287 million since September 30, 2020.
• Strong credit quality with no loans 90 days past due.
• Tier 1 Capital Ratio at 11%, well above regulatory requirements.

Negative

• None.

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- American Riviera Bank (OTCQX: ARBV) announced today unaudited net income of $9,082,000 ($1.77 per share) for the nine months ended September 30, 2021. This represents an 82% increase in net income from the $5,000,000 ($0.99 per share) earned in the same reporting period in the prior year. In 2021, the Bank has achieved an annualized return on average assets of 1.12% and return on average equity of 13.64%. Unaudited net income was $2,950,000 ($0.58 per share) for the third quarter ended September 30, 2021, compared to the $2,264,000 ($0.45 per share) earned in the same reporting period in the prior year.

Core loans, excluding SBA PPP loans, have grown 20% or $124 million over the last year since September 30, 2020. Year to date, core loans excluding PPP loans have grown 14% or $87 million since December 31, 2020. PPP loans totaled $51 million at September 30, 2021, with $102 million processed by the Bank and approved for forgiveness by the SBA during the nine months ended September 30, 2021. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $3.3 million or 0.46% of total loans excluding PPP on non-accrual status, which are well supported by collateral.

American Riviera Bank continues to experience tremendous deposit growth with a 35% or $287 million increase in total deposits over the last year since September 30, 2020. Non-interest bearing demand deposits increased 32% or $104 million since September 30, 2020. Deposit inflows from our clients have been the driving factor in the total assets of the Bank increasing $288 million since September 30, 2020 to a total of $1.2 billion at September 30, 2021.

Jeff DeVine, President and Chief Executive Officer noted, “Each day clients throughout the Central Coast entrust us with more of their business. This is reflected in our strong organic loan and deposit growth. I am proud of our team who have partnered with our communities, supported our clients and made new relationships despite challenges presented by the pandemic.”

As of September 30, 2021, American Riviera Bank continues to be well capitalized with a Tier 1 Capital Ratio of 11% (well above the regulatory guideline of 8% for well capitalized institutions). The tangible book value per share of American Riviera Bank common stock increased to $17.34 at September 30, 2021.

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 eleven 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)
		Sep 30,				Sep 30,				One Year
			2021				2020			Change
Assets
Cash & Due From Banks		$	262,965			$	105,157			150	%
Securities			146,937				73,886			99	%
Loans (excluding PPP)			728,316				604,728			20	%
PPP Loans			50,966				117,361			-57	%
Allowance For Loan Losses			(9,376	)			(8,040	)		17	%
Net Loans			769,906				714,049			8	%
Premise & Equipment			6,041				6,634			-9	%
Goodwill and Other Intangibles			5,024				5,203			-3	%
Other Assets			27,289				25,287			8	%
Total Assets		$	1,218,162			$	930,216			31	%
Liabilities & Shareholders' Equity
Demand Deposits		$	435,489			$	331,035			32	%
NOW Accounts			177,952				110,476			61	%
Other Interest Bearing Deposits			502,237				387,293			30	%
Total Deposits			1,115,678				828,804			35	%
Borrowed Funds			-				10,000			-100	%
Other Liabilities			8,665				9,311			-7	%
Total Liabilities			1,124,343				848,115			33	%
Common Stock			56,302				55,571			1	%
Retained Earnings			37,685				26,224			44	%
Other Capital			(168	)			306			-155	%
Total Shareholders' Equity			93,819				82,101			14	%
Total Liabilities & Shareholders' Equity		$	1,218,162			$	930,216			31	%

Balance Sheets (unaudited)
(dollars in thousands)
		September 30,				June 30,				March, 31				December, 31				September, 30
			2021				2021				2021				2020				2020
Assets
Cash & Due From Banks		$	262,965			$	233,502			$	187,886			$	129,732			$	105,157
Securities			146,937				110,403				86,587				86,942				73,886
Loans (excluding PPP)			728,316				701,399				661,520				641,603				604,728
PPP Loans			50,966				76,093				119,429				84,464				117,361
Allowance For Loan Losses			(9,376	)			(9,373	)			(8,817	)			(8,467	)			(8,040	)
Net Loans			769,906				768,119				772,132				717,600				714,049
Premise & Equipment			6,041				6,229				6,365				6,458				6,634
Goodwill and Other Intangibles			5,024				5,069				5,114				5,158				5,203
Other Assets			27,289				26,947				25,242				25,733				25,287
Total Assets		$	1,218,162			$	1,150,269			$	1,083,326			$	971,623			$	930,216
Liabilities & Shareholders' Equity
Demand Deposits		$	435,489			$	428,577			$	405,264			$	332,995			$	331,035
NOW Accounts			177,952				170,029				144,591				128,266				110,476
Other Interest Bearing Deposits			502,237				452,867				433,310				410,837				387,293
Total Deposits			1,115,678				1,051,473				983,165				872,098				828,804
Borrowed Funds			-				-				5,000				5,000				10,000
Other Liabilities			8,665				7,986				8,705				9,606				9,311
Total Liabilities			1,124,343				1,059,459				996,870				886,704				848,115
Common Stock			56,302				56,146				55,821				55,738				55,571
Retained Earnings			37,685				34,735				31,163				28,603				26,224
Other Capital			(168	)			(71	)			(528	)			578				306
Total Shareholders' Equity			93,819				90,810				86,456				84,919				82,101
Total Liabilities & Shareholders' Equity		$	1,218,162			$	1,150,269			$	1,083,326			$	971,623			$	930,216

Statements of Income (unaudited)
(dollars in thousands, except per share data)
		Quarter Ended											Nine Months Ended
		Sep 30,				Sep 30,							Sep 30,				Sep 30,
			2021				2020			Change				2021				2020			Change
Interest Income
Interest and Fees on Loans		$	8,342			$	7,822			7	%		$	25,056			$	23,127			8	%
Fees on PPP Loans			978				559			75	%			3,336				950			251	%
Net Fair Value Amortization Income			419				5			8280	%			481				166			189	%
Interest on Securities			447				306			46	%			1,029				874			18	%
Interest on Fed Funds			-				-			n/a				-				-			n/a
Interest on Due From Banks			120				67			79	%			252				326			-23	%
Total Interest Income			10,306				8,759			18	%			30,154				25,443			19	%
Interest Expense
Interest Expense on Deposits			220				333			-34	%			742				1,696			-56	%
Interest Expense on Borrowings			-				22			-100	%			-				123			-100	%
Total Interest Expense			220				355			-38	%			742				1,819			-59	%
Net Interest Income			10,086				8,404			20	%			29,412				23,624			25	%
Provision for Loan Losses			-				209			-100	%			338				1,702			-80	%
Net Interest Income After Provision			10,086				8,195			23	%			29,074				21,922			33	%
Non-Interest Income
Service Charges, Commissions and Fees			601				609			-1	%			1,918				1,574			22	%
Other Non-Interest Income			342				149			130	%			825				501			65	%
Total Non-Interest Income			943				758			24	%			2,743				2,075			32	%
Non-Interest Expense
Salaries and Employee Benefits			4,469				3,604			24	%			12,004				10,551			14	%
Occupancy and Equipment			756				677			12	%			2,124				2,028			5	%
Other Non-Interest Expense			1,769				1,434			23	%			5,092				4,351			17	%
Total Non-Interest Expense			6,994				5,715			22	%			19,220				16,930			14	%
Net Income Before Provision for Taxes			4,035				3,238			25	%			12,597				7,067			78	%
Provision for Taxes			1,085				974			11	%			3,515				2,067			70	%
Net Income		$	2,950			$	2,264			30	%		$	9,082			$	5,000			82	%
Shares (end of period)			5,130,937				5,070,556			1	%			5,130,937				5,070,556			1	%
Earnings Per Share - Basic		$	0.58			$	0.45			29	%		$	1.77			$	0.99			80	%
Return on Average Assets			0.98	%			0.98	%		0	%			1.12	%			0.81	%		38	%
Return on Average Equity			12.45	%			10.95	%		14	%			13.64	%			8.51	%		60	%
Net Interest Margin			3.54	%			3.86	%		-8	%			3.75	%			4.04	%		-7	%

Five Quarter Statements of Income (unaudited)
(dollars in thousands)
		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
			2021			2021			2021			2020			2020
Interest Income
Interest and Fees on Loans		$	8,342		$	8,840		$	7,874		$	7,589		$	7,822
Fees on PPP Loans			978			1,412			946			1,374			559
Net Fair Value Amortization Income			419			19			43			14			5
Interest on Securities			447			311			271			274			306
Interest on Fed Funds			-			-			-			-			-
Interest on Due From Banks			120			72			60			74			67
Total Interest Income			10,306			10,654			9,194			9,325			8,759
Interest Expense
Interest Expense on Deposits			220			259			263			295			333
Interest Expense on Borrowings			-			-			-			-			22
Total Interest Expense			220			259			263			295			355
Net Interest Income			10,086			10,395			8,931			9,030			8,404
Provision for Loan Losses			-			-			338			418			209
Net Interest Income After Provision			10,086			10,395			8,593			8,612			8,195
Non-Interest Income
Service Charges, Commissions and Fees			601			664			653			543			609
Other Non-Interest Income			342			309			173			251			149
Total Non-Interest Income			943			973			826			794			758
Non-Interest Expense
Salaries and Employee Benefits			4,469			3,829			3,706			3,847			3,604
Occupancy and Equipment			756			778			590			722			677
Other Non-Interest Expense			1,769			1,792			1,530			1,562			1,434
Total Non-Interest Expense			6,994			6,399			5,826			6,131			5,715
Net Income Before Provision for Taxes			4,035			4,969			3,593			3,275			3,238
Provision for Taxes			1,085			1,397			1,033			896			974
Net Income		$	2,950		$	3,572		$	2,560		$	2,379		$	2,264
Shares (end of period)			5,130,937			5,132,809			5,127,895			5,083,648			5,070,556
Earnings Per Share - Basic		$	0.58		$	0.70		$	0.50		$	0.47		$	0.45

Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
		At or for the Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
			2021				2021				2021				2020				2020
Income and performance ratios:
Net Income		$	2,950			$	3,572			$	2,560			$	2,379			$	2,264
Earnings per share - basic			0.58				0.70				0.50				0.47				0.45
Return on average assets			0.98	%			1.31	%			1.07	%			0.96	%			0.98	%
Return on average equity			12.45	%			16.14	%			12.34	%			11.16	%			10.95	%
Net interest margin			3.54	%			3.97	%			3.78	%			3.85	%			3.86	%
Efficiency ratio (c)			63.80	%			56.25	%			59.06	%			62.65	%			62.64	%
Asset quality:
Allowance for loan and lease losses		$	9,376			$	9,373			$	8,817			$	8,467			$	8,040
Nonperforming assets			3,349				3,413				3,588				3,446				12
Allowance for loan and lease losses / total loans and leases			1.20	%			1.21	%			1.13	%			1.17	%			1.11	%
Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (a)			1.29	%			1.34	%			1.33	%			1.32	%			1.33	%
Net charge-offs / average loans and leases (annualized)			0.00	%			-0.28	%			-0.01	%			-0.01	%			0.03	%
Texas ratio (b)			3.41	%			3.59	%			3.98	%			3.91	%			0.01	%
Other ratios:
Tier 1 risk-based capital			11.09	%			11.18	%			11.30	%			11.45	%			11.82	%
Total risk-based capital			12.28	%			12.43	%			12.55	%			12.70	%			13.07	%
Common equity tier 1 risk-based capital			11.09	%			11.18	%			11.30	%			11.45	%			11.82	%
Tier 1 leverage ratio			7.59	%			7.90	%			8.21	%			8.16	%			8.49	%
Equity and share related:
Common equity		$	93,819				90,810				86,456				84,919			$	82,101
Book value per share			18.28				17.69				16.86				16.70				16.19
Tangible book value per share			17.34				16.72				15.97				15.58				15.11
Stock closing price per share			19.20				19.22				18.50				16.50				12.10
Number of shares issued and outstanding			5,131				5,133				5,128				5,084				5,071

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.

 

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American Riviera Bank

www.americanriviera.bank

805-965-5942

Michelle Martinich

Source: American Riviera Bank

FAQ

What was American Riviera Bank's net income for the first nine months of 2021?

American Riviera Bank reported a net income of $9,082,000 for the nine months ended September 30, 2021.

How much did core loans grow at American Riviera Bank compared to last year?

Core loans at American Riviera Bank grew 20%, or $124 million, year-over-year.

What percentage increase did American Riviera Bank see in total deposits?

American Riviera Bank experienced a 35% increase in total deposits, amounting to $287 million since September 30, 2020.

What is the Tier 1 Capital Ratio of American Riviera Bank?

As of September 30, 2021, American Riviera Bank maintained a Tier 1 Capital Ratio of 11%.

What is the return on average equity for American Riviera Bank in 2021?

The return on average equity for American Riviera Bank in 2021 is 13.64%.