UK Markets open in 4 hrs 10 mins

American Riviera Bank Reports 20% Core Loan Growth

  • Oops!
    Something went wrong.
    Please try again later.
·6-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

SANTA BARBARA, Calif., October 25, 2021--(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

...

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting