American Riviera Bancorp Reports Quarterly Earnings
American Riviera Bancorp Reports Quarterly Earnings

SANTA BARBARA, Calif.–(BUSINESS WIRE)–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 SBA PPP loans have been replaced by higher-yielding core loans, and our sizeable balance sheet liquidity will generate increased interest income in a rising rate environment.”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

 

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