American Riviera Bank Reports Annual Results

Rhea-AI Summary

American Riviera Bank (OTCQX: ARBV) reported unaudited net income of $11.83 million for the year ending December 31, 2021, marking a 60% increase from the previous year. The Bank's fourth quarter net income was $2.75 million, up from $2.38 million in 2020. Core loans grew by 17%, totaling $112 million, and deposits rose by 38% to $1.3 billion. The Tier 1 Capital Ratio stands at 11%, indicating strong capitalization. The tangible book value per share increased to $17.92.

Positive

• 60% increase in net income year-over-year to $11.83 million.
• Core loans grew 17%, amounting to $112 million.
• Deposits increased by 38%, reaching a total of $1.3 billion.
• Tier 1 Capital Ratio at 11%, above regulatory standards.
• Tangible book value per share rose to $17.92.

Negative

• None.

SANTA BARBARA, Calif.--(BUSINESS WIRE)-- American Riviera Bank (OTCQX: ARBV) announced today unaudited net income of $11,829,000 ($2.30 per share) for the twelve months ended December 31, 2021. This represents a 60% increase in net income from the $7,378,000 ($1.45 per share) earned in the same reporting period in the prior year. In 2021, the Bank achieved an annualized return on average assets of 1.04% and return on average equity of 13.02%. Unaudited net income was $2,747,000 ($0.53 per share) for the fourth quarter ended December 31, 2021, compared to the $2,379,000 ($0.47 per share) earned in the prior year.

Core loans, excluding SBA PPP loans, have grown 17% or $112 million over the last year since December 31, 2020. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $2.9 million or 0.38% 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 38% or $330 million increase in total deposits since December 31, 2020. Non-interest bearing demand deposits increased 41% or $138 million over the last year. Deposit inflows from our clients have been the driving factor in the total assets of the Bank increasing $335 million, or 34%, since December 31, 2020 to a total of $1.3 billion at December 31, 2021.

Jeff DeVine, President and Chief Executive Officer, noted, “We have our loyal clients and dedicated team members to thank for record earnings and strong balance sheet growth in 2021. The pandemic continued to disrupt our business and personal lives, yet our bankers worked tirelessly to respond to the deposit and lending needs of the communities we serve. In turn, the Bank was able to share its success by increasing wages and benefits for our hard-working team, increasing donations and sponsorships on the Central Coast, and reporting strong growth in earnings and tangible book value per share for our shareholders. This is the power of community banking!”

As of December 31, 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 $17.92 at December 31, 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)
		Dec 31,				Dec 31,				One Year				One Year
		2021				2020				$ Change				% Change
Assets
Cash & Due From Banks		$	292,111			$	129,732			$	162,379			125	%
Securities			191,543				86,942				104,601			120	%
Loans (excluding PPP)			753,494				641,603				111,891			17	%
PPP Loans			39,996				84,464				(44,468	)		-53	%
Allowance For Loan Losses			(9,383	)			(8,467	)			(916	)		11	%
Net Loans			784,107				717,600				66,507			9	%
Premise & Equipment			5,916				6,458				(542	)		-8	%
Goodwill and Other Intangibles			5,075				5,233				(158	)		-3	%
Other Assets			27,788				25,658				2,130			8	%
Total Assets		$	1,306,540			$	971,623			$	334,917			34	%
Liabilities & Shareholders' Equity
Demand Deposits		$	470,763			$	332,995			$	137,768			41	%
NOW Accounts			181,546				128,266				53,280			42	%
Other Interest Bearing Deposits			549,781				410,837				138,944			34	%
Total Deposits			1,202,090				872,098				329,992			38	%
Borrowed Funds			-				5,000				(5,000	)		-100	%
Other Liabilities			8,177				9,606				(1,429	)		-15	%
Total Liabilities			1,210,267				886,704				323,563			36	%
Common Stock			56,564				55,738				826			1	%
Retained Earnings			40,432				28,603				11,829			41	%
Other Capital			(723	)			578				(1,301	)		-225	%
Total Shareholders' Equity			96,273				84,919				11,354			13	%
Total Liabilities & Shareholders' Equity		$	1,306,540			$	971,623			$	334,917			34	%

Balance Sheets (unaudited)
(dollars in thousands)
		December 31,				September 30,				June 30,				March, 31				December, 31
		2021				2021				2021				2021				2020
Assets
Cash & Due From Banks		$	292,111			$	262,965			$	233,502			$	187,886			$	129,732
Securities			191,543				146,937				110,403				86,587				86,942
Loans (excluding PPP)			753,494				728,316				701,399				661,520				641,603
PPP Loans			39,996				50,966				76,093				119,429				84,464
Allowance For Loan Losses			(9,383	)			(9,376	)			(9,373	)			(8,817	)			(8,467	)
Net Loans			784,107				769,906				768,119				772,132				717,600
Premise & Equipment			5,916				6,041				6,229				6,365				6,458
Goodwill and Other Intangibles			5,075				5,135				5,166				5,191				5,233
Other Assets			27,788				27,178				26,850				25,165				25,658
Total Assets		$	1,306,540			$	1,218,162			$	1,150,269			$	1,083,326			$	971,623
Liabilities & Shareholders' Equity
Demand Deposits		$	470,763			$	435,489			$	428,577			$	405,264			$	332,995
NOW Accounts			181,546				177,952				170,029				144,591				128,266
Other Interest Bearing Deposits			549,781				502,237				452,867				433,310				410,837
Total Deposits			1,202,090				1,115,678				1,051,473				983,165				872,098
Borrowed Funds			-				-				-				5,000				5,000
Other Liabilities			8,177				8,665				7,986				8,705				9,606
Total Liabilities			1,210,267				1,124,343				1,059,459				996,870				886,704
Common Stock			56,564				56,302				56,146				55,821				55,738
Retained Earnings			40,432				37,685				34,735				31,163				28,603
Other Capital			(723	)			(168	)			(71	)			(528	)			578
Total Shareholders' Equity			96,273				93,819				90,810				86,456				84,919
Total Liabilities & Shareholders' Equity		$	1,306,540			$	1,218,162			$	1,150,269			$	1,083,326			$	971,623

Statements of Income (unaudited)
(dollars in thousands, except per share data)
		Quarter Ended											Twelve Months Ended
		Dec 31,				Dec 31,							Dec 31,				Dec 31,
		2021				2020				Change			2021				2020				Change
Interest Income
Interest and Fees on Loans		$	8,557			$	7,589			13	%		$	33,613			$	30,715			9	%
Fees on PPP Loans			517				1,374			-62	%			3,853				2,324			66	%
Net Fair Value Amortization Income			25				14			79	%			506				180			181	%
Interest on Securities			645				274			135	%			1,674				1,149			46	%
Interest on Fed Funds			-				-			n/a				-				-			n/a
Interest on Due From Banks			139				74			88	%			391				400			-2	%
Total Interest Income			9,883				9,325			6	%			40,037				34,768			15	%
Interest Expense
Interest Expense on Deposits			207				295			-30	%			948				1,991			-52	%
Interest Expense on Borrowings			-				-			n/a				-				123			-100	%
Total Interest Expense			207				295			-30	%			948				2,114			-55	%
Net Interest Income			9,676				9,030			7	%			39,089				32,654			20	%
Provision for Loan Losses			-				418			-100	%			338				2,120			-84	%
Net Interest Income After Provision			9,676				8,612			12	%			38,751				30,534			27	%
Non-Interest Income
Service Charges, Commissions and Fees			705				543			30	%			2,623				2,117			24	%
Other Non-Interest Income			138				251			-45	%			962				751			28	%
Total Non-Interest Income			843				794			6	%			3,585				2,868			25	%
Non-Interest Expense
Salaries and Employee Benefits			4,003				3,847			4	%			16,007				14,398			11	%
Occupancy and Equipment			747				722			3	%			2,872				2,750			4	%
Other Non-Interest Expense			1,991				1,562			27	%			7,082				5,913			20	%
Total Non-Interest Expense			6,741				6,131			10	%			25,961				23,061			13	%
Net Income Before Provision for Taxes			3,778				3,275			15	%			16,375				10,341			58	%
Provision for Taxes			1,031				896			15	%			4,546				2,963			53	%
Net Income		$	2,747			$	2,379			15	%		$	11,829			$	7,378			60	%
Shares (end of period)			5,134,993				5,083,648			1	%			5,134,993				5,083,648			1	%
Earnings Per Share - Basic		$	0.53			$	0.47			13	%		$	2.30			$	1.45			59	%
Return on Average Assets			0.84	%			0.96	%		-13	%			1.04	%			0.86	%		21	%
Return on Average Equity			11.20	%			11.16	%		0	%			13.02	%			9.20	%		42	%
Net Interest Margin			3.12	%			3.85	%		-19	%			3.58	%			3.97	%		-10	%

Five Quarter Statements of Income (unaudited)
(dollars in thousands)
		Three Months Ended
		December 31,			September 30,			June 30,			March 31,			December 31,
		2021			2021			2021			2021			2020
Interest Income
Interest and Fees on Loans		$	8,557		$	8,342		$	8,840		$	7,874		$	7,589
Fees on PPP Loans			517			978			1,412			946			1,374
Net Fair Value Amortization Income			25			419			19			43			14
Interest on Securities			645			447			311			271			274
Interest on Fed Funds			-			-			-			-			-
Interest on Due From Banks			139			120			72			60			74
Total Interest Income			9,883			10,306			10,654			9,194			9,325
Interest Expense
Interest Expense on Deposits			207			220			259			263			295
Interest Expense on Borrowings			-			-			-			-			-
Total Interest Expense			207			220			259			263			295
Net Interest Income			9,676			10,086			10,395			8,931			9,030
Provision for Loan Losses			-			-			-			338			418
Net Interest Income After Provision			9,676			10,086			10,395			8,593			8,612
Non-Interest Income
Service Charges, Commissions and Fees			705			601			664			653			543
Other Non-Interest Income			138			342			309			173			251
Total Non-Interest Income			843			943			973			826			794
Non-Interest Expense
Salaries and Employee Benefits			4,003			4,469			3,829			3,706			3,847
Occupancy and Equipment			747			756			778			590			722
Other Non-Interest Expense			1,991			1,769			1,792			1,530			1,562
Total Non-Interest Expense			6,741			6,994			6,399			5,826			6,131
Net Income Before Provision for Taxes			3,778			4,035			4,969			3,593			3,275
Provision for Taxes			1,031			1,085			1,397			1,033			896
Net Income		$	2,747		$	2,950		$	3,572		$	2,560		$	2,379
Shares (end of period)			5,134,993			5,130,937			5,132,809			5,127,895			5,083,648
Earnings Per Share - Basic		$	0.53		$	0.58		$	0.70		$	0.50		$	0.47

Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
		At or for the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2021				2021				2021				2021				2020
Income and performance ratios:
Net Income		$	2,747			$	2,950			$	3,572			$	2,560			$	2,379
Earnings per share - basic			0.53				0.58				0.70				0.50				0.47
Return on average assets			0.84	%			0.98	%			1.31	%			1.07	%			0.96	%
Return on average equity			11.20	%			12.45	%			16.14	%			12.34	%			11.16	%
Net interest margin			3.12	%			3.54	%			3.97	%			3.78	%			3.85	%
Efficiency ratio (c)			64.51	%			63.80	%			56.25	%			59.06	%			62.65	%
Asset quality:
Allowance for loan and lease losses		$	9,383			$	9,376			$	9,373			$	8,817			$	8,467
Nonperforming assets			2,870				3,349				3,413				3,588				3,446
Allowance for loan and lease losses / total loans and leases			1.18	%			1.20	%			1.21	%			1.13	%			1.17	%
Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (a)			1.25	%			1.29	%			1.34	%			1.33	%			1.32	%
Net charge-offs / average loans and leases (annualized)			0.00	%			0.00	%			-0.28	%			-0.01	%			-0.01	%
Texas ratio (b)			2.85	%			3.41	%			3.59	%			3.98	%			3.91	%
Other ratios:
Tier 1 risk-based capital			11.02	%			11.09	%			11.18	%			11.30	%			11.45	%
Total risk-based capital			12.16	%			12.28	%			12.43	%			12.55	%			12.70	%
Common equity tier 1 risk-based capital			11.02	%			11.09	%			11.18	%			11.30	%			11.45	%
Tier 1 leverage ratio			7.23	%			7.59	%			7.90	%			8.21	%			8.16	%
Equity and share related:
Common equity		$	96,273				93,819				90,810				86,456			$	84,919
Book value per share			18.75				18.28				17.69				16.86				16.70
Tangible book value per share			17.90				17.34				16.72				15.97				15.58
Stock closing price per share			20.29				19.20				19.22				18.50				16.50
Number of shares issued and outstanding			5,135				5,131				5,133				5,128				5,084

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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220131005208/en/

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 2021?

American Riviera Bank's net income for 2021 was $11.83 million.

How did American Riviera Bank's fourth quarter performance compare to 2020?

In the fourth quarter of 2021, American Riviera Bank reported $2.75 million in net income, up from $2.38 million in the same quarter of 2020.

What was the growth percentage of core loans for American Riviera Bank?

Core loans grew by 17%, amounting to $112 million over the last year.

How much did American Riviera Bank's total deposits increase by?

American Riviera Bank's total deposits increased by 38%, totaling $1.3 billion.

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

American Riviera Bank's Tier 1 Capital Ratio is 11%, which is well above the regulatory requirement.

What is the tangible book value per share for American Riviera Bank?

As of December 31, 2021, the tangible book value per share for American Riviera Bank is $17.92.