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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 Record Quarterly Earnings

Santa Barbara, California (October 23, 2018) – American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $4,398,000 ($0.99 per share) for the nine months ended September 30, 2018. This represents a 26% increase in net income from the $3,501,000 ($0.80 per share) for the same reporting period in the prior year. The annualized return on average assets of 1.06% and return on average equity of 10.38% represents an increase from the 0.99% and 8.92%, respectively, achieved for the same reporting period in the prior year. The Bank reported its best quarter ever with unaudited net income of $1,571,000 ($0.35 per share) for the third quarter ended September 30, 2018 compared to $1,383,000 ($0.31 per share) for the same reporting period in the prior year.

As of September 30, 2018 the Bank reported $504 million in total deposits. This represents a 9% increase from the same reporting period prior year. Checking accounts, comprised of non-interest bearing demand deposits and interest bearing NOW accounts, increased by $40 million or 19% from the same quarter last year.

Loan demand remains strong, with total loans increasing $83 million or 21% from September 30, 2017, reaching $489 million at September 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 4.47% for the nine months ending September 30, 2018.

 Jeff DeVine, President and Chief Executive Officer stated, The third quarter was another strong quarter for American Riviera Bank, as we are quickly approaching $600 million in assets and continue to increase profitability. Moving forward, we remain committed to being the leading independent bank on the Central Coast and continue to make American Riviera Bank better for its shareholders, customers and employees. Our organic growth and community centric approach continues to differentiate us in the market as we solidify our position as the Central Coast’s leading community bank.”

As of September 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 $11.96 at September 30, 2018, a 8% increase from $11.12 at September 30, 2017.

Balance Sheets (unaudited)

           

(dollars in thousands)

           
     

Sep 30,

 

Sep 30,

 

One Year

     

2018

 

2017

 

Change

Assets

           
 

Cash & Due From Banks

 

 $          31,392

 

 $            59,861

 

-48%

 

Fed Funds Sold

 

                      -  

 

               11,428

 

-100%

 

Securities

 

             46,549

 

               22,351

 

108%

               
 

Loans

 

           489,401

 

             405,947

 

21%

 

Allowance For Loan Losses

 

             (5,242)

 

               (4,076)

 

29%

 

Net Loans

 

           484,159

 

             401,871

 

20%

               
 

Fixed Assets

 

               5,308

 

                 1,261

 

321%

 

Goodwill and Other Intangibles

 

               6,417

 

                 5,740

 

12%

 

Other Assets

 

             15,178

 

               15,716

 

-3%

Total Assets

 

           589,003

 

             518,228

 

14%

               
               

Liabilities & Shareholders' Equity

           
 

Demand Deposits

 

           166,145

 

             162,835

 

2%

 

NOW Accounts

 

             86,543

 

               50,072

 

73%

 

Other Interest Bearing Deposits

 

           250,958

 

             249,173

 

1%

 

Total Deposits

 

           503,646

 

             462,080

 

9%

               
 

Borrowed Funds

 

             24,000

 

                        -  

 

N/A

 

Other Liabilities

 

               2,295

 

                 1,504

 

53%

 

Total Liabilities

 

           529,941

 

             463,584

 

14%

               
 

Common Stock

 

             46,400

 

               45,791

 

1%

 

Retained Earnings

 

             13,339

 

                 8,880

 

50%

 

Other Capital

 

                 (677)

 

                     (27)

 

2407%

 

Total Shareholders' Equity

 

             59,062

 

               54,644

 

8%

               

Total Liabilities & Shareholders' Equity

 

 $       589,003

 

 $         518,228

 

14%

               
 

Book Value Per Share

 

 $            13.40

 

 $              12.42

 

8%

 

Tangible Book Value Per Share

 

 $            11.96

 

 $              11.12

 

8%

 

Statements of Income (unaudited)

                       

(dollars in thousands)

                       
     

Quarter Ended

 

9 Months Ended

     

Sep 30,

 

Sep 30,

     

Sep 30,

 

Sep 30,

   
     

2018

 

2017

 

Change

 

2018

 

2017

 

Change

Interest Income

                       
 

Interest and Fees on Loans

 

 $        6,256

 

 $        5,275

 

19%

 

 $          17,294

 

 $        15,186

 

14%

 

Net Fair Value Amortization Income

 

               118

 

               246

 

-52%

 

                   424

 

                 597

 

-29%

 

Interest on Securities

 

               266

 

                 85

 

212%

 

                   702

 

                 145

 

384%

 

Interest on Fed Funds 

 

                   1

 

                 38

 

-98%

 

                      12

 

                   80

 

-85%

 

Interest on Due From Banks

 

               167

 

               142

 

17%

 

                   436

 

                 318

 

37%

 

Total Interest Income

 

           6,808

 

           5,786

 

18%

 

             18,868

 

           16,326

 

16%

                           

Interest Expense

                       
 

Interest Expense on Deposits

 

               622

 

               273

 

128%

 

                1,214

 

                 738

 

65%

 

Interest Expense on Borrowings

 

                   6

 

                   1

 

500%

 

                   126

 

                   23

 

446%

 

Total Interest Expense

 

               628

 

               274

 

129%

 

                1,340

 

                 761

 

76%

                           

Net Interest Income

 

           6,180

 

           5,512

 

12%

 

             17,528

 

           15,565

 

13%

 

Provision for Loan Losses

 

               294

 

                 68

 

330%

 

                   925

 

                 707

 

31%

Net Interest Income After Provision

 

           5,886

 

           5,444

 

8%

 

             16,603

 

           14,858

 

12%

                           

Non-Interest Income

                       
 

Service Charges, Commissions and Fees

 

               397

 

               288

 

38%

 

                1,242

 

                 863

 

44%

 

Other Non-Interest Income

 

                 60

 

                 74

 

-19%

 

                   258

 

                 240

 

8%

 

Total Non-Interest Income

 

               457

 

               362

 

26%

 

                1,500

 

             1,103

 

36%

                           

Non-Interest Expense

                       
 

Salaries and Employee Benefits

 

           2,429

 

           2,027

 

20%

 

                7,061

 

             5,880

 

20%

 

Occupancy and Equipment

 

               483

 

               415

 

17%

 

                1,304

 

             1,155

 

13%

 

Other Non-Interest Expense

 

           1,210

 

           1,005

 

20%

 

                3,585

 

             3,106

 

15%

 

Total Non-Interest Expense

 

           4,122

 

           3,447

 

20%

 

             11,950

 

           10,141

 

18%

                           

Net Income Before Provision for Taxes

 

           2,221

 

           2,359

 

-6%

 

                6,153

 

             5,820

 

6%

Provision for Taxes

 

               650

 

               976

 

-33%

 

                1,755

 

             2,319

 

-24%

Net Income 

 

 $        1,571

 

 $        1,383

 

14%

 

 $            4,398

 

 $          3,501

 

26%

                           
 

Shares (end of period)

 

   4,459,269

 

   4,400,663

 

1%

 

       4,459,269

 

     4,400,663

 

1%

 

Earnings Per Share - Basic

 

 $          0.35

 

 $          0.31

 

13%

 

 $               0.99

 

 $            0.80

 

24%

                           
 

Return on Average Assets (annualized)

 

1.03%

 

1.06%

     

1.06%

 

0.99%

   
 

Return on Average Equity (annualized)

 

10.39%

 

9.90%

     

10.38%

 

8.92%

   
 

Net Interest Margin (annualized)

 

4.39%

 

4.62%

     

4.47%

 

4.67%