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Our offices and branches will be closed on Monday, January 21, in observance of Martin Luther King Jr. Day
 

American Riviera Bank Reports Growth and Earnings

SANTA BARBARA, CALIFORNIA - American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $2,827,000 ($0.64 per share) for the six months ended June 30, 2018. This represents a 33% increase in net income from the $2,118,000 ($0.48 per share) for the same reporting period in the prior year. The annualized return on average assets of 1.08% and return on average equity of 10.37% represents an increase from the 0.95% and 8.40%, respectively, achieved for the same reporting period in the prior year. The Bank reported unaudited net income of $1,475,000 ($0.33 per share) for the second quarter ended June 30, 2018 compared to $1,163,000 ($0.27 per share) for the same quarter last year.

Loans and deposits continue to experience double digit growth.  As of June 30, 2018, the Bank reported $532 million in total deposits. Checking accounts, comprised of non-interest bearing demand deposits and interest bearing NOW accounts, increased by $46 million or 22% from the same reporting period last year. Deposit origination volume is noteworthy, with the Bank opening over 1,100 new accounts at our four locations year to date 2018.

Loan demand remained strong, with total loans increasing $81 million or 20% from June 30, 2017, reaching $478 million at June 30, 2018 with no loans that were 90 days or more past due and no other real estate owned. The Bank reported an annualized net interest margin of 4.52% for the six months ending June 30, 2018.

 Jeff DeVine, President and Chief Executive Officer stated, “American Riviera Bank’s net income of $2.8 million in the first six months of 2018 represents strong core earnings and the continued growth of our relationships in Santa Barbara and San Luis Obispo Counties. The earnings are a reflection of growth in both loans and deposits. Our commitment to community banking – meeting the financial needs of families and businesses with service that is both personal and high tech continues to build our presence throughout the Central Coast.”

As of June 30, 2018, American Riviera Bank maintained a strong capital position with a Tier 1 Capital Ratio of 10%; well above the regulatory guideline of 8% for well capitalized institutions. The tangible book value per share of American Riviera Bank common stock is $11.60 at June 30, 2018, a 7% increase from $10.81 at June 30, 2017.

Balance Sheets (unaudited)            
(dollars in thousands)            
      Jun 30,   Jun 30,   One Year
      2018   2017   Change
Assets            
  Cash & Due From Banks    $          42,796    $            46,054   -7%
  Fed Funds Sold                         -                    15,841   -100%
  Securities                48,274                  18,695   158%
               
  Loans              477,837                396,876   20%
  Allowance For Loan Losses                (4,895)                  (4,001)   22%
  Net Loans              472,942                392,875   20%
               
  Fixed Assets                  5,294                    1,210   338%
  Goodwill and Other Intangibles                  6,462                    5,785   12%
  Other Assets                15,464                  15,369   1%
Total Assets              591,232                495,829   19%
               
               
Liabilities & Shareholders' Equity            
  Demand Deposits              168,609                159,289   6%
  NOW Accounts                86,543                  50,072   88%
  Other Interest Bearing Deposits              276,460                230,160   20%
  Total Deposits              531,612                439,521   21%
               
  Borrowed Funds                         -                      2,000   -100%
  Other Liabilities                  2,134                    1,092   95%
  Total Liabilities              533,746                442,613   21%
               
  Common Stock                46,212                  42,824   8%
  Retained Earnings                11,768                  10,384   13%
  Other Capital                    (494)                             8   -6275%
  Total Shareholders' Equity                57,486                  53,216   8%
               
Total Liabilities & Shareholders' Equity    $       591,232    $         495,829   19%
               
  Book Value Per Share    $            13.06    $              12.13   8%
  Tangible Book Value Per Share    $            11.60    $              10.81  

7%

 

Statements of Income (unaudited)                        
(dollars in thousands)                        
      Quarter Ended   6 Months Ended
      Jun 30,   Jun 30,       Jun 30,   Jun 30,    
      2018   2017   Change   2018   2017   Change
Interest Income                        
  Interest and Fees on Loans    $        5,769    $        5,006   15%    $          11,037    $          9,794   13%
  Net Fair Value Amortization Income                  176                  233   -24%                      306                    468   -35%
  Interest on Securities                  253                    41   521%                      437                      60   628%
  Interest on Fed Funds                       1                    28   -97%                         11                      42   -73%
  Interest on Due From Banks                  122                    87   40%                      269                    175   53%
  Total Interest Income              6,321              5,395   17%                12,060              10,539   14%
                           
Interest Expense                        
  Interest Expense on Deposits                  326                  245   33%                      592                    464   27%
  Interest Expense on Borrowings                    98                    18   444%                      120                      23   423%
  Total Interest Expense                  424                  263   61%                      712                    487   46%
                           
Net Interest Income              5,897              5,132   15%                11,348              10,052   13%
  Provision for Loan Losses                  363                  252   44%                      631                    639   -1%
Net Interest Income After Provision              5,534              4,880   13%                10,717                9,413   14%
                           
Non-Interest Income                        
  Service Charges, Commissions and Fees                  409                  302   35%                      845                    576   47%
  Other Non-Interest Income                    84                    76   11%                      198                    165   20%
  Total Non-Interest Income                  493                  378   30%                   1,043                    741   41%
                           
Non-Interest Expense                        
  Salaries and Employee Benefits              2,278              1,898   20%                   4,631                3,854   20%
  Occupancy and Equipment                  429                  372   16%                      821                    741   11%
  Other Non-Interest Expense              1,227              1,125   9%                   2,376                2,099   13%
  Total Non-Interest Expense              3,934              3,395   16%                   7,828                6,694   17%
                           
Net Income Before Provision for Taxes              2,093              1,863   12%                   3,932                3,460   14%
Provision for Taxes                  618                  700   -12%                   1,105                1,342   -18%
Net Income     $        1,475    $        1,163   27%    $            2,827    $          2,118   33%
                           
  Shares (end of period)      4,440,082      4,387,369   1%          4,440,082        4,387,369   1%
  Earnings Per Share - Basic    $          0.33    $          0.27   26%    $               0.64    $            0.48   33%
                           
  Return on Average Assets (annualized)   1.07%   0.99%       1.08%   0.95%    
  Return on Average Equity (annualized)   10.47%   8.92%       10.37%   8.40%    
  Net Interest Margin (annualized)   4.54%   4.63%       4.52%   4.70%