American Riviera Bancorp Reports Quarterly Earnings
SANTA BARBARA, Calif.–(BUSINESS WIRE)–#BankonBetter–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 SBA PPP loans have been replaced by higher-yielding core loans, and our sizeable balance sheet liquidity will generate increased interest income in a rising rate environment.”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
Contacts
American Riviera Bank
www.americanriviera.bank805-965-5942
Michelle Martinich
