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American Riviera Bank Reports over $600 Million in Assets

Santa Barbara, California – American Riviera Bank (OTC Markets: ARBV) announced today record unaudited net income of $5,890,000 ($1.32 per share) for the year ended December 31, 2018. This represents a 67% increase in net income from the $3,536,000 ($0.80 per share) for the same reporting period in the prior year. The annualized return on average assets of 1.03% and return on average equity of 10.19% represent an increase from the 0.73% and 6.61%, respectively, achieved for the same reporting period in the prior year. For the fourth quarter ended December 31, 2018, the Bank reported unaudited net income of $1,492,000 ($0.33 per share) compared to $35,000 ($0.01 per share) for the fourth quarter last year.

Prior year results were negatively impacted by a non-recurring $1,119,000 revaluation of deferred tax assets in the fourth quarter ended December 31, 2017 related to enacted federal tax reform. In 2018 the Bank benefitted from the lower federal income tax rate associated with such reform, and reinvested by hiring 18 new employees and continued our expansion into San Luis Obispo County.

The Bank’s continued organic growth in Santa Barbara County and the opening of our full-service Paso Robles branch resulted in a 20% increase in total assets, with $616 million in total assets reported at December 31, 2018. Asset growth was driven by strong loan demand, with total loans increasing $94 million or 23% from December 31, 2017, reaching $508 million at December 31, 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 4.51% for the year ended December 31, 2018.

As of December 31, 2018, the Bank reported $513 million in total deposits. This represents a $65 million or 14% increase from the same reporting period in the prior year. Checking accounts, comprised of non-interest bearing demand deposits and interest bearing NOW accounts, increased by $17 million or 8% from the same reporting period last year.

Jeff DeVine, President and Chief Executive Officer stated, 2018 was an exciting year of growth for American Riviera Bank with assets increasing just over $100 million. Our bankers are creating lasting relationships with clients in our Central Coast communities by serving their deposit and credit needs. As a result, the Bank continues to grow our client base, asset size and earnings. We are looking forward to further expansion in 2019 with a full-service branch in the City of San Luis Obispo.”

As of December 31, 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 $12.51 at December 31, 2018, a 12% increase from $11.16 at December 31, 2017.

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
      2018   2017   Change
Assets              
  Cash & Due From Banks    $          41,271    $       42,999   -4%
  Fed Funds Sold                         -                  4,040   -100%
  Securities                46,010              33,534   37%
               
  Loans              508,397           414,165   23%
  Allowance For Loan Losses                (5,542)              (4,260)   30%
  Net Loans              502,855           409,905   23%
               
  Fixed Assets                  5,299                3,903   36%
  Goodwill and Other Intangibles                5,516                5,695   -3%
  Other Assets                15,501              15,046   3%
Total Assets              616,452           515,122   20%
               
               
Liabilities & Shareholders' Equity            
  Demand Deposits              169,549           148,332   14%
  NOW Accounts                73,652              77,483   -5%
  Other Interest Bearing Deposits            270,106           222,941   21%
  Total Deposits              513,307           448,756   14%
               
  Borrowed Funds                40,000              10,000   300%
  Other Liabilities                  2,258                1,681   34%
  Total Liabilities              555,565           460,437   21%
               
  Common Stock                46,477              45,895   1%
  Retained Earnings                14,831                8,915   66%
  Other Capital                    (421)                 (125)   -237%
  Total Shareholders' Equity                60,887              54,685   11%
               
Total Liabilities & Shareholders' Equity  $       616,452    $     515,122   20%
               
  Book Value Per Share    $            13.74    $          12.45   10%
  Tangible Book Value Per Share  $            12.51    $          11.16   12%

 

 

Statements of Income (unaudited)                        
(dollars in thousands)                        
      Quarter Ended   12 Months Ended
      Dec 31,   Dec 31,       Dec 31,   Dec 31,    
      2018   2017   Change   2018   2017   Change
Interest Income                        
  Interest and Fees on Loans    $           6,533    $           5,272   24%    $         23,827    $           20,235   18%
  Net Fair Value Amortization Income                   423                       96   341%                     847                       916   -8%
  Interest on Securities                     297                     120   148%                     999                       265   277%
  Interest on Fed Funds                          0                       21   -100%                       12                       100   -88%
  Interest on Due From Banks                     165                     132   25%                     601                       450   34%
  Total Interest Income                 7,418                 5,641   32%               26,286                 21,966   20%
                           
Interest Expense                        
  Interest Expense on Deposits                     681                     276   147%                 1,895                   1,014   87%
  Interest Expense on Borrowings                       73                          1   7200%                     199                         25   695%
  Total Interest Expense                     754                     277   172%                 2,094                   1,039   101%
                           
Net Interest Income                 6,664                 5,364   24%               24,192                 20,927   16%
  Provision for Loan Losses                     369                     207   78%                 1,294                       914   42%
Net Interest Income After Provision                 6,295                 5,157   22%               22,898                 20,013   14%
                           
Non-Interest Income                        
  Service Charges, Commissions and Fees                   289                     231   25%                 1,531                   1,094   40%
  Other Non-Interest Income                     (53)                       76   -170%                     205                       316   -35%
  Total Non-Interest Income                     236                     307   -23%                 1,736                   1,410   23%
                           
Non-Interest Expense                        
  Salaries and Employee Benefits                 2,633                 2,186   20%                 9,694                   8,066   20%
  Occupancy and Equipment                     503                     397   27%                 1,806                   1,553   16%
  Other Non-Interest Expense                 1,212                 1,005   21%                 4,797                   4,109   17%
  Total Non-Interest Expense                 4,348                 3,588   21%               16,297                 13,728   19%
                           
Net Income Before Provision for Taxes                 2,183                 1,876   16%                 8,337                   7,695   8%
Provision for Taxes                     691                     722   -4%                 2,447                   3,040   -19%
Non Recurring Tax Provision                        -                   1,119   100%                        -                     1,119   100%
Net Income     $           1,492    $                 35   4223%    $           5,890    $             3,536   67%
                           
  Shares (end of period)         4,461,068         4,402,841   1%         4,461,068           4,402,841   1%
  Earnings Per Share - Basic    $             0.33    $             0.01   3259%    $             1.32    $               0.80   65%
                           
  Return on Average Assets (annualized) 0.95%   0.00%       1.03%   0.73%    
  Return on Average Equity (annualized) 9.60%   0.00%       10.19%   6.61%    
  Net Interest Margin (annualized)   4.61%   4.42%       4.51%   4.61%