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American Riviera Bank Reports Strong Growth and Expansion

Santa Barbara, California (July 19, 2019) – American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $3,274,000 ($0.65 per share) for the six months ended June 30, 2019. This represents a 16% increase in net income from the $2,827,000 ($0.64 per share) for the same reporting period in the prior year. The Bank reported an annualized return on average assets of 1.07% and return on average equity of 10.06%. The Bank reported unaudited net income of $1,506,000 ($0.30 per share) for the second quarter ended June 30, 2019 compared to $1,475,000 ($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 first quarter ended March 31, 2019.

The Bank continues to experience significant growth, reporting $662 million in total assets as of June 30, 2019. Total deposits, excluding wholesale deposits, increased 16% from June 30, 2018. The Bank had $5 million of wholesale deposits at June 30, 2019, down from the $49 million at June 30, 2018. Over the past twelve months the Bank has replaced these wholesale deposits with local customer deposits. Non-interest bearing demand deposit accounts increased $18 million, or 11% from the same reporting period last year, reaching $187 million at June 30, 2019.

The Bank reported strong loan growth, with gross loans increasing $64 million, or 13% from June 30, 2018, reaching $542 million at June 30, 2019, with no other real estate owned and no loans 30 or more days past due. The Bank’s net interest income increased by approximately $1.5 million, or 13% for the six months ended June 30, 2019, compared to the same reporting period in the prior year. The Bank reported an annualized net interest margin of 4.34% for the six months ended June 30, 2019, reflecting only modest compression from the 4.52% reported for the same reporting period last year.

Jeff DeVine, President and Chief Executive Officer stated, We continue to invest in our expansion and are pleased to announce the opening of our full service branch in the City of San Luis Obispo which will allow us to better serve the needs of businesses and consumers in San Luis Obispo County.  We look forward to welcoming new clients affected by mega-mergers who will benefit from our high level of service built on relationships with local decision makers.”  

As of June 30, 2019, American Riviera Bank has a strong capital position with a Tier 1 Capital Ratio of 12%; well above the regulatory guideline of 8% for well capitalized institutions. The tangible book value per share of American Riviera Bank common stock is $13.41 at June 30, 2019, a 14% increase from $11.80 at June 30, 2018.

Balance Sheets (unaudited)            
(dollars in thousands)            
      Jun 30,   Jun 30,   One Year
      2019   2018   Change
Assets            
  Cash & Due From Banks    $          47,640    $            42,796   11%
  Fed Funds Sold                         -                             -     -
  Securities                42,961                  48,274   -11%
               
  Loans              541,869                477,837   13%
  Allowance For Loan Losses                (5,883)                  (4,895)   20%
  Net Loans              535,986                472,942   13%
               
  Fixed Assets                  6,528                    5,294   23%
  Goodwill and Other Intangibles                  5,427                    5,606   -3%
  Other Assets                23,054                  16,320   41%
Total Assets              661,596                591,232   12%
               
               
Liabilities & Shareholders' Equity            
  Demand Deposits              186,845                168,609   11%
  NOW Accounts                73,782                  86,543   -15%
  Other Interest Bearing Deposits              304,223                276,460   10%
  Total Deposits              564,850                531,612   6%
               
  Borrowed Funds                15,000                           -     N/M
  Other Liabilities                  8,806                    2,134   313%
  Total Liabilities              588,656                533,746   10%
               
  Common Stock                54,739                  46,212   18%
  Retained Earnings                18,105                  11,768   54%
  Other Capital                        96                      (494)   N/M
  Total Shareholders' Equity                72,940                  57,486   27%
               
Total Liabilities & Shareholders' Equity    $       661,596    $         591,232   12%
               
  Book Value Per Share    $            14.49    $              13.06   11%
  Tangible Book Value Per Share    $            13.41    $              11.80  

14%

 

Statements of Income (unaudited)                        
(dollars in thousands)                        
      Quarter Ended   6 Months Ended
      Jun 30,   Jun 30,       Jun 30,   Jun 30,    
      2019   2018   Change   2019   2018   Change
Interest Income                        
  Interest and Fees on Loans    $        6,992    $        5,769   21%    $        13,672    $        11,037   24%
  Net Fair Value Amortization Income                    86                  176   -51%                    308                    306   1%
  Interest on Securities                  230                  253   -9%                    514                    437   18%
  Interest on Fed Funds                       0                      1   -100%                         1                      11   -91%
  Interest on Due From Banks                  205                  122   68%                    403                    269   50%
  Total Interest Income              7,513              6,321   19%              14,898              12,060   24%
                           
Interest Expense                        
  Interest Expense on Deposits                  998                  326   206%                1,822                    592   208%
  Interest Expense on Borrowings                    60                    98   -39%                    202                    120   68%
  Total Interest Expense              1,058                  424   150%                2,024                    712   184%
                           
Net Interest Income              6,455              5,897   9%              12,874              11,348   13%
  Provision for Loan Losses                  220                  363   -39%                    395                    631   -37%
Net Interest Income After Provision              6,235              5,534   13%              12,479              10,717   16%
                           
Non-Interest Income                        
  Service Charges, Commissions and Fees                  580                  409   42%                1,007                    845   19%
  Other Non-Interest Income                  113                    84   35%                    279                    198   41%
  Total Non-Interest Income                  693                  493   41%                1,286                1,043   23%
                           
Non-Interest Expense                        
  Salaries and Employee Benefits              2,881              2,278   26%                5,573                4,631   20%
  Occupancy and Equipment                  546                  429   27%                1,040                    821   27%
  Other Non-Interest Expense              1,366              1,227   11%                2,679                2,376   13%
  Total Non-Interest Expense              4,793              3,934   22%                9,292                7,828   19%
                           
Net Income Before Provision for Taxes              2,135              2,093   2%                4,473                3,932   14%
Provision for Taxes                  629                  618   2%                1,199                1,105   9%
Net Income     $        1,506    $        1,475   2%    $          3,274    $          2,827   16%
                           
  Shares (end of period)      5,028,906      4,440,082   13%        5,028,906        4,440,082   13%
  Earnings Per Share - Basic    $          0.30    $          0.33   -9%    $            0.65    $            0.64   2%
                           
  Return on Average Assets (annualized)   0.95%   1.07%       1.07%   1.08%    
  Return on Average Equity (annualized)   8.46%   10.47%       10.06%   10.37%    
  Net Interest Margin (annualized)   4.27%   4.54%       4.34%   4.52%