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American Riviera Bank Reports Growth and Earnings

Santa Barbara, California (January 28, 2020) – American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $6,393,000 ($1.27 per share) for the year ended December 31, 2019. This represents a 9% increase in net income from the $5,890,000 ($1.32 per share) for the same reporting period in the prior year. The Bank reported an annualized return on average assets of 0.97% and return on average equity of 9.01%. The Bank reported unaudited net income of $1,572,000 ($0.31 per share) for the fourth quarter ended December 31, 2019 compared to $1,492,000 ($0.33 per share) for the same quarter last year. Share count has increased primarily due to the $8,500,000 common stock capital raise closed in the quarter ended March 31, 2019.

The Bank continues to experience significant growth, reporting $719 million in total assets as of December 31, 2019, representing a $102 million, or 17% increase from December 31, 2018. Total deposits increased 21% from December 31, 2018 reaching $621 million at December 31, 2019. Non-interest bearing demand deposit accounts increased $47 million, or 28% from the same reporting period in the prior year, reaching $217 million at December 31, 2019.

The Bank reported strong loan growth, with gross loans increasing $70 million, or 14% from December 31, 2018, reaching $578 million at December 31, 2019, with 6% or $31 million of growth in the fourth quarter of 2019.  At December 31, 2019, the Bank had no other real estate owned and no loans 30 days or more past due. The Bank’s net interest income increased by approximately $2.3 million, or 9% for the year ended December 31, 2019, compared to the same reporting period in the prior year.  The Bank’s non-interest income grew by $1.0 million, or 58% for the year ended December 31, 2019, compared to the same reporting period in the prior year. The increase in non-interest income came from diversified sources, including sales and servicing of SBA loans, mortgage broker fees, commercial loan swap fees and Farmer Mac lending. 

Jeff DeVine, President and Chief Executive Officer stated, “2019 was an impactful year for the Bank by significantly growing loans, deposits and increasing earnings. During the year the Bank raised capital, opened a full service branch in San Luis Obispo and added a Chief Technology Officer and Chief Compliance & Risk Officer to the executive team in order to support our growth and expand our relationships throughout the Central Coast.”

As of December 31, 2019, American Riviera Bank has a strong capital position 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 is $14.09 at December 31, 2019, a 13% increase from $12.51 at December 31, 2018.

Balance Sheet (unaudited)            
(dollars in thousands)            
      Dec 31,   Dec 31,   One Year
      2019   2018   Change
Assets            
  Cash & Due From Banks    $ 66,472    $41,271   61%
  Fed Funds Sold                                 -                                    -     -
  Securities                        43,403                         46,009   -6%
               
  Loans                     578,458                      508,397   14%
  Allowance For Loan Losses                        (6,366)                         (5,542)   15%
  Net Loans                     572,092                      502,855   14%
               
  Premise & Equipment                          6,878                           5,299   30%
  Goodwill and Other Intangibles                          5,337                           5,516   -3%
  Other Assets (a)                        24,753                         15,590   59%
Total Assets    $718,935    $616,540   17%
               
               
Liabilities & Shareholders' Equity            
  Demand Deposits    $ 216,671    $169,549   28%
  NOW Accounts                        87,906                         73,652   19%
  Other Interest Bearing Deposits                     316,586                      270,106   17%
  Total Deposits                     621,163                      513,307   21%
               
  Borrowed Funds                        10,000                         40,000   -75%
  Other Liabilities (a)                        11,629                           2,346   396%
  Total Liabilities                     642,792                      555,653   16%
               
  Common Stock (b)                        55,034                         46,477   18%
  Retained Earnings                        21,224                         14,831   43%
  Other Capital                           (115)                            (421)   -73%
  Total Shareholders' Equity                        76,143                         60,887   25%
               
Total Liabilities & Shareholders' Equity    $718,935    $616,540   17%
               
               
Notes:            
  (a) Other assets and other liabilities primarily increased due to the adoption of ASU2016-02, "Leases (Topic 842)" as of January 1, 2019.  As of December 31, 2019 the right-of-use asset totals $7.7 million and the operating lease liability is $8 million.
  (b) Common stock increased in the first quarter 2019 due to $8.5 million common stock capital raise.    

 

Balance Sheet (unaudited)                    
(dollars in thousands)                    
      December 31,   September 30,   June 30,   March 31,   December 31,
      2019   2019   2019   2019   2018
Assets                    
  Cash & Due From Banks    $          66,472    $          79,101    $          47,640    $          48,835    $          41,271
  Fed Funds Sold                         -                           -                           -                           -                           -  
  Securities                43,403                41,797                42,961                44,123                46,009
                       
  Loans              578,458              547,956              541,869              520,857              508,397
  Allowance For Loan Losses                (6,366)                (6,145)                (5,883)                (5,661)                (5,542)
  Net Loans              572,092              541,811              535,986              515,196              502,855
                       
  Premise & Equipment                  6,878                  6,812                  6,528                  5,588                  5,299
  Goodwill and Other Intangibles                  5,337                  5,382                  5,427                  5,472                  5,516
  Other Assets (a)                24,753                22,364                23,054                19,524                15,590
Total Assets    $       718,935    $       697,267    $       661,596    $       638,738    $       616,540
                       
                       
Liabilities & Shareholders' Equity                    
  Demand Deposits    $       216,671    $       207,643    $       186,845    $       187,048    $       169,549
  NOW Accounts                87,906                79,509                73,782                76,370                73,652
  Other Interest Bearing Deposits              316,586              316,124              304,223              282,874              270,106
  Total Deposits              621,163              603,276              564,850              546,292              513,307
                       
  Borrowed Funds                10,000                10,000                15,000                15,000                40,000
  Other Liabilities (a)                11,629                  9,452                  8,806                  6,562                  2,346
  Total Liabilities              642,792              622,728              588,656              567,854              555,653
                       
  Common Stock (b)                55,034                54,889                54,739                54,513                46,477
  Retained Earnings                21,224                19,653                18,105                16,600                14,831
  Other Capital                    (115)                        (3)                        96                    (229)                    (421)
  Total Shareholders' Equity                76,143                74,539                72,940                70,884                60,887
                       
Total Liabilities & Shareholders' Equity    $       718,935    $       697,267    $       661,596    $       638,738    $       616,540
                       
Notes:                    
  (a) Other assets and other liabilities primarily increased due to the adoption of ASU2016-02,  "Leases (Topic 842)" as of January 1, 2019.     
      As of December 31, 2019 the right-of-use asset totals $7.7 million and the operating lease liability is $8 million. The San Luis Obispo branch   
      was added for the quarter ending June 30, 2019 and the Santa Barbara Branch increased as of December 31, 2019 with the expectation to extend the lease term.
  (b) Common stock increased in the first quarter 2019 due to $8.5 million common stock capital raise.