American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $1,409,000 ($0.32 per share) for the third quarter ended September 30, 2016, compared to the $133,000 ($0.05 per share) reported September 30, 2015. For the nine months ended September 30, 2016 unaudited net income was $3,015,000 ($0.69 per share), as compared to the $938,000 ($0.35 per share) achieved for the same reporting period last year prior to the merger.
As of September 30, 2016, the Bank reported $347 million in total loans with no other real estate owned. Non-interest bearing demand deposits have increased to 35% of the $392 million in total deposits at September 30, 2016, an increase from 32% one year ago.
Jeff DeVine, President and Chief Executive Officer stated, “It has only been 9 months since we completed the merger with The Bank of Santa Barbara and our financial results are already reflecting the synergies from that merger. Common share count is up 63% from one year ago as a result of the merger, however earnings per share are up 98%.”
As of September 30, 2016 American Riviera Bank had $464 million in total assets, and maintained a strong capital position with a Tier 1 Capital Ratio of 12%; well above the regulatory guideline of 8% for well capitalized institutions. For the first nine months of 2016, the Bank recorded a return on average assets of 0.95% and a return on average equity of 8.69%. The tangible book value per share of American Riviera Bank’s common stock is $10.24 and the book value is $11.40 at September 30, 2016, an increase from the $10.47 book value at September 30, 2015.
(dollars in thousands)
| Assets | Sept 30, 2016 | Sept 30, 2015 | One Year Change |
|---|---|---|---|
| Cash & Due From Banks | $52,996 | $18,551 | 186% |
| Fed Funds Sold | 38,458 | 5,415 | 610% |
| Securities | 6,581 | 6,184 | 6% |
| Loans | 347,345 | 191,372 | 82% |
| Allowance For Loan Losses | (3,226) | (2,374) | 36% |
| Net Loans | 344,119 | 188,998 | 82% |
| Fixed Assets | 1,351 | 893 | 51% |
| Goodwill | 5,071 | - | N/A |
| Other Assets | 14,996 | 6,964 | 115% |
| Total Assets | 463,572 | 227,005 | 104% |
| Liabilities & Shareholders' Equity | |||
| Demand Deposits | 135,757 | 62,558 | 117% |
| Interest Bearing Deposits | 256,418 | 135,478 | 89% |
| Total Deposits | 392,175 | 198,036 | 98% |
| Borrowed Funds | 20,000 | - | N/A |
| Other Liabilities | 1,643 | 891 | 84% |
| Total Liabilities | 413,818 | 198,927 | 108% |
| Common Stock | 42,946 | 24,735 | 74% |
| Retained Earnings | 6,810 | 3,357 | 103% |
| Other Capital | (2) | (14) | -86% |
| Total Shareholders' Equity | 49,754 | 28,078 | 77% |
| Total Liabilities & Shareholders' Equity | $463,572 | $227,005 | 104% |
| Book Value Per Share | $11.40 | $10.47 | - |
| Tangible Book Value Per Share | $10.24 | $10.47 | - |
(dollars in thousands)
| Quarter Ended | 9 Months Ended | |||||
|---|---|---|---|---|---|---|
| Sept 30, 2016 | Sept 30, 2015 | Change | Sept 30, 2016 | Sept 30, 2015 | Change | |
| Interest Income | ||||||
| Interest and Fees on Loans | $4,780 | $2,472 | 93% | $14,237 | $7,061 | 102% |
| Loan Fair Value Accretion, net | 194 | - | N/A | 771 | - | N/A |
| Interest on Securities | 23 | 23 | 0% | 80 | 75 | 7% |
| Interest on Fed Funds | 36 | 3 | 1330% | 52 | 13 | 295% |
| Interest on Due From Banks | 44 | 31 | 42% | 123 | 109 | 12% |
| Total Interest Income | 5,077 | 2,529 | 101% | 15,263 | 7,258 | 110% |
| Interest Expense | ||||||
| Interest Expense on Deposits | 190 | 92 | 107% | 591 | 284 | 108% |
| Interest Expense on Borrowings | 30 | - | N/A | 66 | 22 | 198% |
| Total Interest Expense | 220 | 92 | -140% | 657 | 306 | -115% |
| Net Interest Income | 4,857 | 2,437 | 99% | 14,606 | 6,952 | 110% |
| Provision for Loan Losses | 137 | 163 | -16% | 388 | 163 | 138% |
| Net Interest Income After Provision | 4,720 | 2,274 | 108% | 14,218 | 6,789 | 109% |
| Non-Interest Income | ||||||
| Service Charges, Commissions and Fees | 295 | 149 | 97% | 927 | 430 | 115% |
| Other Non-Interest Income | 103 | 48 | 113% | 254 | 163 | 56% |
| Total Non-Interest Income | 398 | 197 | 102% | 1,181 | 593 | 99% |
| Non-Interest Expense | ||||||
| Salaries and Employee Benefits | 1,823 | 1,047 | 74% | 5,780 | 2,957 | 95% |
| Occupancy and Equipment | 395 | 262 | 51% | 1,161 | 798 | 45% |
| Merger Related Expenses (non recurring) | (81) | 255 | -132% | 938 | 421 | 123% |
| Other Non-Interest Expense | 1,015 | 460 | 121% | 2,561 | 1,422 | 80% |
| Total Non-Interest Expense | 3,152 | 2,024 | 56% | 10,440 | 5,598 | 86% |
| Net Income Before Provison for Taxes | 1,966 | 447 | 339% | 4,959 | 1,784 | 178% |
| Provision for Taxes | 557 | 314 | 77% | 1,944 | 846 | 130% |
| Net Income | 1,409 | 133 | 957% | 3,015 | 938 | 222% |
| Shares (end of period) | 4,362,930 | 2,683,254 | 63% | 4,362,930 | 2,683,254 | 63% |
| Earnings Per Share - Basic | $0.32 | $0.05 | 550% | $0.69 | $ 0.35 | 98% |
| Return on Average Assets (annualized) | 1.23% | 0.20% | - | 0.95% | 0.55% | - |
| Return on Average Equity (annualized) | 11.25% | 1.64% | - | 8.69% | 4.59% | - |
| Net Interest Margin (annualized) | 4.57% | 4.52% | - | 4.84% | 4.24% | - |
| Net Interest Margin (excluding FV amortization) | 4.37% | 4.52% | - | 4.57% | 4.24% | - |
