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American Riviera Bank Reports Record Earnings and Growth

January 28, 2021 GMT

SANTA BARBARA, Calif.--(BUSINESS WIRE)--Jan 28, 2021--

American Riviera Bank (OTC Markets: ARBV) announced today record unaudited net income of $7,378,000 ($1.45 per share) for the twelve months ended December 31, 2020. This represents a 15% increase in net income from the $6,393,000 ($1.27 per share) for the same reporting period in the prior year. The Bank reported unaudited net income of $2,379,000 ($0.47 per share) for the fourth quarter ended December 31, 2020. This represents a 51% increase from the $1,572,000 ($0.31 per share) for the same quarter last y

Jeff DeVine, President and Chief Executive Officer stated, “American Riviera Bank is proud to serve an important role in providing economic stability to the Santa Barbara and San Luis Obispo counties while also reporting strong earnings to our shareholders. During these unprecedented times, the Bank originated tremendous SBA PPP loan volume while still growing non-PPP loans at a double digit pace. Our branch network, drive-ups, ATMs, and robust digital banking capabilities allowed us to deliver uninterrupted depository services despite the COVID-19 pandemic and related stay-at-home orders. I thank our frontline team members, and those working from their office or remotely from home, who quickly adapted and safely helped our clients and communities in 2020.”

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The Bank has seen a continued decrease in temporary loan payment deferrals for clients negatively affected by the COVID-19 pandemic. Total loans on deferral at December 31, 2020 were approximately $9.6 million, representing 1.5% of total loans excluding SBA PPP, and have fallen from the $18 million reported at September 30, 2020. The deferrals are primarily to borrowers wishing to conserve cash for the economic uncertainty, and who have asked for the principal portion of their payments to be deferred while continuing to pay interest (see detail on Loan Deferrals exhibit). The sizeable increase in loan loss provision in 2020 was primarily driven by qualitative factors in our loan loss methodology related to COVID-19 pandemic economic uncertainty, and not by actual delinquencies or defaults. At December 31, 2020, the Bank had no other real estate owned, no loans 90 days or more past due, and only $3.4 million or 0.53% of total loans excluding PPP on non-accrual status which are well supported by collateral.

The Bank has experienced tremendous growth in new and existing relationships, reporting $972 million in total assets as of December 31, 2020, which represents a $253 million or 35% increase from December 31, 2019. Total loans including SBA PPP increased 26% from December 31, 2019, reaching $726 million at December 31, 2020. Total loans excluding SBA PPP increased $63 million or 11% from December 31, 2019, reaching $642 million at December 31, 2020. Total deposits increased 40% from December 31, 2019, reaching $872 million at December 31, 2020. Non-interest bearing demand deposit accounts increased $116 million or 54% from the same reporting period in the prior year.

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As of December 31, 2020, American Riviera Bank was highly liquid with $217 million in cash and available-for-sale securities, and 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 was $15.58 at December 31, 2020.

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 ten 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. As of September 30, 2020, the Bank was rated five stars by BauerFinancial. 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

2020

 

 

2019

 

 

Change

Assets
Cash & Due From Banks

$ 129,732

 

$ 66,472

 

95

%

Securities

86,942

 

43,403

 

100

%

 
Loans (excluding PPP)

641,603

 

578,458

 

11

%

PPP Loans

84,464

 

-

 

n/a

 

Allowance For Loan Losses

(8,467

)

(6,366

)

33

%

Net Loans

717,600

 

572,092

 

25

%

 
Premise & Equipment

6,458

 

6,878

 

-6

%

Goodwill and Other Intangibles

5,158

 

5,337

 

-3

%

Other Assets

25,733

 

24,753

 

4

%

Total Assets

$ 971,623

 

$ 718,935

 

35

%

 
 
Liabilities & Shareholders' Equity
Demand Deposits

$ 332,995

 

$ 216,671

 

54

%

NOW Accounts

128,266

 

87,906

 

46

%

Other Interest Bearing Deposits

410,837

 

316,585

 

30

%

Total Deposits

872,098

 

621,162

 

40

%

 
Borrowed Funds

5,000

 

10,000

 

-50

%

Other Liabilities

9,606

 

11,630

 

-17

%

Total Liabilities

886,704

 

642,792

 

38

%

 
Common Stock

55,738

 

55,034

 

1

%

Retained Earnings

28,603

 

21,224

 

35

%

Other Capital

578

 

(115

)

n/a

 

Total Shareholders' Equity

84,919

 

76,143

 

12

%

 
Total Liabilities & Shareholders' Equity

$ 971,623

 

$ 718,935

 

35

%

Balance Sheets (unaudited)
(dollars in thousands)

December, 31

 

September, 30

 

June, 30

 

March 31,

 

December 31,

2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

Assets
Cash & Due From Banks

$ 129,732

 

$ 105,157

 

$ 84,722

 

$ 59,793

 

$ 66,472

 

Securities

86,942

 

73,886

 

57,099

 

50,518

 

43,403

 

 
Loans (excluding PPP)

641,603

 

604,728

 

615,367

 

603,631

 

578,458

 

PPP Loans

84,464

 

117,361

 

116,531

 

-

 

-

 

Allowance For Loan Losses

(8,467

)

(8,040

)

(7,890

)

(7,171

)

(6,366

)

Net Loans

717,600

 

714,049

 

724,008

 

596,460

 

572,092

 

 
Premise & Equipment

6,458

 

6,634

 

6,731

 

6,832

 

6,878

 

Goodwill and Other Intangibles

5,158

 

5,203

 

5,248

 

5,293

 

5,337

 

Other Assets

25,733

 

25,287

 

24,846

 

24,514

 

24,753

 

Total Assets

$ 971,623

 

$ 930,216

 

$ 902,654

 

$ 743,410

 

$ 718,935

 

 
 
Liabilities & Shareholders' Equity
Demand Deposits

$ 332,995

 

$ 331,035

 

$ 328,748

 

$ 219,331

 

$ 216,671

 

NOW Accounts

128,266

 

110,476

 

121,741

 

117,453

 

87,906

 

Other Interest Bearing Deposits

410,837

 

387,293

 

342,668

 

308,666

 

316,585

 

Total Deposits

872,098

 

828,804

 

793,157

 

645,450

 

621,162

 

 
Borrowed Funds

5,000

 

10,000

 

20,000

 

10,000

 

10,000

 

Other Liabilities

9,606

 

9,311

 

9,772

 

10,723

 

11,630

 

Total Liabilities

886,704

 

848,115

 

822,929

 

666,173

 

642,792

 

 
Common Stock

55,738

 

55,571

 

55,418

 

55,084

 

55,034

 

Retained Earnings

28,603

 

26,224

 

23,960

 

22,395

 

21,224

 

Other Capital

578

 

306

 

347

 

(242

)

(115

)

Total Shareholders' Equity

84,919

 

82,101

 

79,725

 

77,237

 

76,143

 

 
Total Liabilities & Shareholders' Equity

$ 971,623

 

$ 930,216

 

$ 902,654

 

$ 743,410

 

$ 718,935

 

Statements of Income (unaudited)
(dollars in thousands, except per share data)

Quarter Ended

 

Twelve Months Ended

Dec 31,

 

Dec 31,

 

 

 

Dec 31,

 

Dec 31,

 

 

2020

 

 

2019

 

 

Change

 

2020

 

 

2019

 

 

Change

Interest Income
Interest and Fees on Loans

$ 7,589

 

$ 7,387

 

3

%

$ 30,715

 

$ 28,283

 

9

%

Fees on PPP Loans

1,374

 

-

 

n/a

 

2,324

 

-

 

n/a

 

Net Fair Value Amortization Income

14

 

62

 

-77

%

180

 

442

 

-59

%

Interest on Securities

274

 

247

 

11

%

1,149

 

1,025

 

12

%

Interest on Fed Funds

-

 

-

 

n/a

 

-

 

1

 

-100

%

Interest on Due From Banks

74

 

290

 

-74

%

400

 

984

 

-59

%

Total Interest Income

9,325

 

7,986

 

17

%

34,768

 

30,735

 

13

%

 
Interest Expense
Interest Expense on Deposits

295

 

1,085

 

-73

%

1,991

 

3,973

 

-50

%

Interest Expense on Borrowings

-

 

43

 

-100

%

123

 

276

 

-55

%

Total Interest Expense

295

 

1,128

 

-74

%

2,114

 

4,249

 

-50

%

 
Net Interest Income

9,030

 

6,858

 

32

%

32,654

 

26,486

 

23

%

Provision for Loan Losses

418

 

205

 

104

%

2,120

 

806

 

163

%

Net Interest Income After Provision

8,612

 

6,653

 

29

%

30,534

 

25,680

 

19

%

 
Non-Interest Income
Service Charges, Commissions and Fees

543

 

566

 

-4

%

2,117

 

2,096

 

1

%

Other Non-Interest Income

251

 

199

 

26

%

751

 

695

 

8

%

Total Non-Interest Income

794

 

765

 

4

%

2,868

 

2,791

 

3

%

 
Non-Interest Expense
Salaries and Employee Benefits

3,847

 

3,212

 

20

%

14,398

 

11,922

 

21

%

Occupancy and Equipment

722

 

665

 

9

%

2,750

 

2,358

 

17

%

Other Non-Interest Expense

1,562

 

1,309

 

19

%

5,913

 

5,292

 

12

%

Total Non-Interest Expense

6,131

 

5,186

 

18

%

23,061

 

19,572

 

18

%

 
Net Income Before Provision for Taxes

3,275

 

2,232

 

47

%

10,341

 

8,899

 

16

%

Provision for Taxes

896

 

660

 

36

%

2,963

 

2,506

 

18

%

Net Income

$ 2,379

 

$ 1,572

 

51

%

$ 7,378

 

$ 6,393

 

15

%

 
Shares (end of period)

5,083,648

 

5,033,348

 

1

%

5,083,648

 

5,033,348

 

1

%

Earnings Per Share - Basic

$ 0.47

 

$ 0.31

 

52

%

$ 1.45

 

$ 1.27

 

14

%

Return on Average Assets

0.96

%

0.85

%

13

%

0.86

%

0.97

%

-11

%

Return on Average Equity

11.16

%

8.04

%

39

%

9.20

%

9.01

%

2

%

Net Interest Margin

3.85

%

4.06

%

-5

%

3.97

%

4.24

%

-6

%

Five Quarter Statements of Income (unaudited)
(dollars in thousands)

Three Months Ended

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

2020

 

2020

 

2020

 

2020

 

2019

Interest Income
Interest and Fees on Loans

$ 7,589

$ 7,822

$ 7,766

$ 7,537

$ 7,387

Fees on PPP Loans

1,374

559

391

-

-

Net Fair Value Amortization Income

14

5

46

115

62

Interest on Securities

274

306

246

323

247

Interest on Fed Funds

-

-

-

-

-

Interest on Due From Banks

74

67

72

187

290

Total Interest Income

9,325

8,759

8,521

8,162

7,986

 
Interest Expense
Interest Expense on Deposits

295

333

501

862

1,085

Interest Expense on Borrowings

-

22

48

53

43

Total Interest Expense

295

355

549

915

1,128

 
Net Interest Income

9,030

8,404

7,972

7,247

6,858

Provision for Loan Losses

418

209

710

783

205

Net Interest Income After Provision

8,612

8,195

7,262

6,464

6,653

 
Non-Interest Income
Service Charges, Commissions and Fees

543

609

463

502

566

Other Non-Interest Income

251

149

159

193

199

Total Non-Interest Income

794

758

622

695

765

 
Non-Interest Expense
Salaries and Employee Benefits

3,847

3,604

3,495

3,452

3,212

Occupancy and Equipment

722

677

666

685

665

Other Non-Interest Expense

1,562

1,434

1,534

1,383

1,309

Total Non-Interest Expense

6,131

5,715

5,695

5,520

5,186

 
Net Income Before Provision for Taxes

3,275

3,238

2,189

1,639

2,232

Provision for Taxes

896

974

624

468

660

Net Income

$ 2,379

$ 2,264

$ 1,565

$ 1,171

$ 1,572

 
Shares (end of period)

5,083,648

5,070,556

5,069,523

5,047,696

5,033,348

Earnings Per Share - Basic

$ 0.47

$ 0.45

$ 0.31

$ 0.23

$ 0.31

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,

2020

 

 

2020

 

 

2020

 

 

2020

 

 

2019

 

Income and performance ratios:
Net Income

$ 2,379

 

$ 2,264

 

$ 1,565

 

$ 1,171

 

$ 1,572

 

Earnings per share - basic

0.47

 

0.45

 

0.31

 

0.23

 

0.31

 

Return on average assets

0.96

%

0.98

%

0.76

%

0.67

%

0.85

%

Return on average equity

11.16

%

10.95

%

8.18

%

6.27

%

8.04

%

Net interest margin

3.85

%

3.86

%

3.98

%

4.27

%

4.06

%

Net interest margin (excluding PPP loans)

3.53

%

3.99

%

4.12

%

n/a

 

n/a

 

Efficiency ratio (d)

62.65

%

62.64

%

65.96

%

69.18

%

68.49

%

 
Asset quality:
Allowance for loan and lease losses

$ 8,467

 

$ 8,040

 

$ 7,890

 

$ 7,171

 

$ 6,366

 

Nonperforming assets

$ 3,446

 

$ 12

 

$ 40

 

$ 341

 

$ 284

 

Allowance for loan and lease losses / total loans and leases

1.17

%

1.11

%

1.08

%

1.19

%

1.10

%

Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (b)

1.32

%

1.33

%

1.28

%

n/a

 

n/a

 

Net charge-offs / average loans and leases (annualized)

-0.01

%

0.03

%

-0.01

%

‐0.01%

-0.01

%

Texas ratio (c)

3.91

%

0.01

%

0.05

%

0.43

%

0.37

%

 
Other ratios:
Tier 1 risk-based capital (a)

11.45

%

11.82

%

11.31

%

11.17

%

11.35

%

Total risk-based capital (a)

12.70

%

13.07

%

12.54

%

12.30

%

12.40

%

Common equity tier 1 risk-based capital (a)

11.45

%

11.82

%

11.31

%

11.17

%

11.35

%

Tier 1 leverage ratio (a)

8.16

%

8.49

%

8.87

%

10.04

%

10.04

%

 
Equity and share related:
Common equity

$ 84,919

 

82,101

 

79,725

 

77,237

 

$ 76,143

 

Book value per share

16.59

 

16.13

 

15.66

 

15.35

 

15.15

 

Tangible book value per share

15.58

 

15.11

 

14.62

 

14.30

 

14.09

 

Stock closing price per share

16.50

 

12.10

 

12.25

 

12.00

 

19.80

 

Number of shares issued and outstanding

5,084

 

5,071

 

5,070

 

5,048

 

5,033

 

 
 
Notes:
(a) Presented as projected for most recent quarter and actual for the remaining periods.
(b) PPP loans are 100% guaranteed by the Small Business Administration.
(c) 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).
(d) 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.
Loan Deferrals
As of December 31, 2020
Principal Only Principal and Interest Total Deferred Loans (e) Percentage of Total Loans excluding PPP
CRE - Retail

$ 8,727,555

$ -

$ 8,727,555

1.36

%

CRE - Special Purpose

$ -

$ -

$ -

0.00

%

CRE - Hospitality

$ -

$ -

$ -

0.00

%

C&I

$ 651,239

$ 236,269

$ 887,508

0.14

%

$ 9,378,794

$ 236,269

$ 9,615,063

1.50

%

 
Total Loans excluding PPP

$ 641,603,130

 
Notes:
(e) Ten separate loans are included in total loans on deferral

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210128006158/en/

CONTACT: American Riviera Bank

www.americanrivierabank.com

805-965-5942

Michelle Martinich

KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES FINANCE

SOURCE: American Riviera Bank

Copyright Business Wire 2021.

PUB: 01/28/2021 06:22 PM/DISC: 01/28/2021 06:22 PM

http://www.businesswire.com/news/home/20210128006158/en