American Riviera Bank (OTC Markets: ARBV) announced today that assets exceeded $1 billion during the quarter, and totaled $1,083,326,000 at March 31, 2021. The Bank achieved record unaudited net income of $2,560,000 ($0.50 per share) for the three months ended March 31, 2021. This represents a 119% increase in net income from the $1,171,000 ($0.23 per share) for the same reporting period in the prior year, and an 8% increase in net income from the $2,379,000 ($0.47 per share) reported for the prior quarter ended December 31, 2020. The Bank reported an annualized return on average assets of 1.07% and return on average equity of 12.34% for the quarter ended March 31, 2021.
Larry Koppelman, Chair of the Board of Directors of the Bank stated, “Reaching $1 billion in assets is a significant milestone for the Bank and is a reflection of our growing and loyal client base on the Central Coast. It does present increased regulatory compliance expectations, but we have made the necessary investments in advance of reaching that milestone. We are proud of the hard work and dedication of our employees that made this milestone possible,” he noted, “and on behalf of the Board of Directors, we owe them our gratitude for both their contribution to the Bank’s success and superior service to our clients.”
American Riviera Bank continues to experience tremendous loan and deposit growth, reporting 29% growth in loans and a 52% increase in deposits since March 31, 2020. Total loans, excluding SBA Paycheck Protection Program (PPP) loans, increased $58 million or 10% from March 31, 2020, reaching $662 million at March 31, 2021, primarily due to continued demand for residential real estate and commercial real estate loans. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $3.6 million or 0.54% of total loans excluding PPP on non-accrual status, which are well supported by collateral. Total deposits increased $338 million from March 31, 2020, reaching $983 million at March 31, 2021. Non-interest bearing demand deposit accounts increased $186 million or 85% from the same reporting period in the prior year.
Jeff DeVine, President and Chief Executive Officer noted, “We funded $118 million in PPP loans to 614 businesses in 2020, and our SBA Department has been actively assisting clients to obtain forgiveness on these loans since last September. Through March 31, 2021, more than 50% of those clients have received forgiveness, totaling over $60 million in forgiven PPP loans.” Said DeVine, “We continue to assist our clients with their forgiveness requests, while also originating First and Second Draw PPP loans under the 2021 appropriation from Congress. Since December 31, 2020, an additional 420 PPP loans have been originated totaling $68 million. It has been an honor to support local businesses and jobs throughout the pandemic.”
As of March 31, 2021, American Riviera Bank continues to be well capitalized with a Tier 1 Capital Ratio of 11% (well above the regulatory guideline of 8% for well capitalized institutions). The tangible book value per share of American Riviera Bank common stock was $15.97 at March 31, 2021.
Company Profile
American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers on the Central Coast of California. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Full-service branches are located in Santa Barbara, Montecito, Goleta, San Luis Obispo and Paso Robles. The Bank provides commercial, residential mortgage, construction and Small Business Administration lending services as well as convenient online and mobile technology. For eleven consecutive years the Bank has been recognized for strong financial performance by the Findley Reports, and has received the highest “Super Premier” rating from Findley every year since 2016. As of December 31, 2020, the Bank was rated five stars by BauerFinancial. The Bank was rated “Outstanding” by the Federal Deposit Insurance Corporation in 2020 for its performance under the Community Reinvestment Act.
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) | |||||||||||
Mar 31, |
|
Mar 31, |
|
One Year |
|||||||
2021 |
|
2020 |
|
Change |
|||||||
Assets | |||||||||||
Cash & Due From Banks | $ |
187,886 |
|
$ |
59,793 |
|
214 |
% |
|||
Securities |
|
86,587 |
|
|
50,518 |
|
71 |
% |
|||
Loans (excluding PPP) |
|
661,520 |
|
|
603,631 |
|
10 |
% |
|||
PPP Loans |
|
119,429 |
|
|
- |
|
n/a |
|
|||
Allowance For Loan Losses |
|
(8,817 |
) |
|
(7,171 |
) |
23 |
% |
|||
Net Loans |
|
772,132 |
|
|
596,460 |
|
29 |
% |
|||
Premise & Equipment |
|
6,365 |
|
|
6,832 |
|
-7 |
% |
|||
Goodwill and Other Intangibles |
|
5,114 |
|
|
5,293 |
|
-3 |
% |
|||
Other Assets |
|
25,242 |
|
|
24,514 |
|
3 |
% |
|||
Total Assets | $ |
1,083,326 |
|
$ |
743,410 |
|
46 |
% |
|||
Liabilities & Shareholders' Equity | |||||||||||
Demand Deposits | $ |
405,264 |
|
$ |
219,331 |
|
85 |
% |
|||
NOW Accounts |
|
144,591 |
|
|
117,453 |
|
23 |
% |
|||
Other Interest Bearing Deposits |
|
433,310 |
|
|
308,666 |
|
40 |
% |
|||
Total Deposits |
|
983,165 |
|
|
645,450 |
|
52 |
% |
|||
Borrowed Funds |
|
5,000 |
|
|
10,000 |
|
-50 |
% |
|||
Other Liabilities |
|
8,705 |
|
|
10,723 |
|
-19 |
% |
|||
Total Liabilities |
|
996,870 |
|
|
666,173 |
|
50 |
% |
|||
Common Stock |
|
55,821 |
|
|
55,084 |
|
1 |
% |
|||
Retained Earnings |
|
31,163 |
|
|
22,395 |
|
39 |
% |
|||
Other Capital |
|
(528 |
) |
|
(242 |
) |
118 |
% |
|||
Total Shareholders' Equity |
|
86,456 |
|
|
77,237 |
|
12 |
% |
|||
Total Liabilities & Shareholders' Equity | $ |
1,083,326 |
|
$ |
743,410 |
|
46 |
% |
Balance Sheets (unaudited) | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||||
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
||||||||||||
Assets | ||||||||||||||||||||
Cash & Due From Banks | $ |
187,886 |
|
$ |
129,732 |
|
$ |
105,157 |
|
$ |
84,722 |
|
$ |
59,793 |
|
|||||
Securities |
|
86,587 |
|
|
86,942 |
|
|
73,886 |
|
|
57,099 |
|
|
50,518 |
|
|||||
Loans (excluding PPP) |
|
661,520 |
|
|
641,603 |
|
|
604,728 |
|
|
615,367 |
|
|
603,631 |
|
|||||
PPP Loans |
|
119,429 |
|
|
84,464 |
|
|
117,361 |
|
|
116,531 |
|
|
- |
|
|||||
Allowance For Loan Losses |
|
(8,817 |
) |
|
(8,467 |
) |
|
(8,040 |
) |
|
(7,890 |
) |
|
(7,171 |
) |
|||||
Net Loans |
|
772,132 |
|
|
717,600 |
|
|
714,049 |
|
|
724,008 |
|
|
596,460 |
|
|||||
Premise & Equipment |
|
6,365 |
|
|
6,458 |
|
|
6,634 |
|
|
6,731 |
|
|
6,832 |
|
|||||
Goodwill and Other Intangibles |
|
5,114 |
|
|
5,158 |
|
|
5,203 |
|
|
5,248 |
|
|
5,293 |
|
|||||
Other Assets |
|
25,242 |
|
|
25,733 |
|
|
25,287 |
|
|
24,846 |
|
|
24,514 |
|
|||||
Total Assets | $ |
1,083,326 |
|
$ |
971,623 |
|
$ |
930,216 |
|
$ |
902,654 |
|
$ |
743,410 |
|
|||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||
Demand Deposits | $ |
405,264 |
|
$ |
332,995 |
|
$ |
331,035 |
|
$ |
328,748 |
|
$ |
219,331 |
|
|||||
NOW Accounts |
|
144,591 |
|
|
128,266 |
|
|
110,476 |
|
|
121,741 |
|
|
117,453 |
|
|||||
Other Interest Bearing Deposits |
|
433,310 |
|
|
410,837 |
|
|
387,293 |
|
|
342,668 |
|
|
308,666 |
|
|||||
Total Deposits |
|
983,165 |
|
|
872,098 |
|
|
828,804 |
|
|
793,157 |
|
|
645,450 |
|
|||||
Borrowed Funds |
|
5,000 |
|
|
5,000 |
|
|
10,000 |
|
|
20,000 |
|
|
10,000 |
|
|||||
Other Liabilities |
|
8,705 |
|
|
9,606 |
|
|
9,311 |
|
|
9,772 |
|
|
10,723 |
|
|||||
Total Liabilities |
|
996,870 |
|
|
886,704 |
|
|
848,115 |
|
|
822,929 |
|
|
666,173 |
|
|||||
Common Stock |
|
55,821 |
|
|
55,738 |
|
|
55,571 |
|
|
55,418 |
|
|
55,084 |
|
|||||
Retained Earnings |
|
31,163 |
|
|
28,603 |
|
|
26,224 |
|
|
23,960 |
|
|
22,395 |
|
|||||
Other Capital |
|
(528 |
) |
|
578 |
|
|
306 |
|
|
347 |
|
|
(242 |
) |
|||||
Total Shareholders' Equity |
|
86,456 |
|
|
84,919 |
|
|
82,101 |
|
|
79,725 |
|
|
77,237 |
|
|||||
Total Liabilities & Shareholders' Equity | $ |
1,083,326 |
|
$ |
971,623 |
|
$ |
930,216 |
|
$ |
902,654 |
|
$ |
743,410 |
|
Statements of Income (unaudited) | |||||||||||
(dollars in thousands, except per share data) | |||||||||||
Quarter Ended |
|||||||||||
Mar 31, |
|
Mar 31, |
|
|
|||||||
2021 |
|
2020 |
|
Change |
|||||||
Interest Income | |||||||||||
Interest and Fees on Loans | $ |
7,874 |
|
$ |
7,537 |
|
4 |
% |
|||
Fees on PPP Loans |
|
946 |
|
|
- |
|
n/a |
|
|||
Net Fair Value Amortization Income |
|
43 |
|
|
115 |
|
-63 |
% |
|||
Interest on Securities |
|
271 |
|
|
323 |
|
-16 |
% |
|||
Interest on Fed Funds |
|
- |
|
|
- |
|
n/a |
|
|||
Interest on Due From Banks |
|
60 |
|
|
187 |
|
-68 |
% |
|||
Total Interest Income |
|
9,194 |
|
|
8,162 |
|
13 |
% |
|||
Interest Expense | |||||||||||
Interest Expense on Deposits |
|
263 |
|
|
862 |
|
-69 |
% |
|||
Interest Expense on Borrowings |
|
- |
|
|
53 |
|
-100 |
% |
|||
Total Interest Expense |
|
263 |
|
|
915 |
|
-71 |
% |
|||
Net Interest Income |
|
8,931 |
|
|
7,247 |
|
23 |
% |
|||
Provision for Loan Losses |
|
338 |
|
|
783 |
|
-57 |
% |
|||
Net Interest Income After Provision |
|
8,593 |
|
|
6,464 |
|
33 |
% |
|||
Non-Interest Income | |||||||||||
Service Charges, Commissions and Fees |
|
653 |
|
|
502 |
|
30 |
% |
|||
Other Non-Interest Income |
|
173 |
|
|
193 |
|
-10 |
% |
|||
Total Non-Interest Income |
|
826 |
|
|
695 |
|
19 |
% |
|||
Non-Interest Expense | |||||||||||
Salaries and Employee Benefits |
|
3,706 |
|
|
3,452 |
|
7 |
% |
|||
Occupancy and Equipment |
|
590 |
|
|
685 |
|
-14 |
% |
|||
Other Non-Interest Expense |
|
1,530 |
|
|
1,383 |
|
11 |
% |
|||
Total Non-Interest Expense |
|
5,826 |
|
|
5,520 |
|
6 |
% |
|||
Net Income Before Provision for Taxes |
|
3,593 |
|
|
1,639 |
|
119 |
% |
|||
Provision for Taxes |
|
1,033 |
|
|
468 |
|
121 |
% |
|||
Net Income | $ |
2,560 |
|
$ |
1,171 |
|
119 |
% |
|||
Shares (end of period) |
|
5,127,895 |
|
|
5,047,696 |
|
2 |
% |
|||
Earnings Per Share - Basic | $ |
0.50 |
|
$ |
0.23 |
|
117 |
% |
|||
Return on Average Assets |
|
1.07 |
% |
|
0.67 |
% |
60 |
% |
|||
Return on Average Equity |
|
12.34 |
% |
|
6.27 |
% |
97 |
% |
|||
Net Interest Margin |
|
3.78 |
% |
|
4.27 |
% |
-11 |
% |
Five Quarter Statements of Income (unaudited) | |||||||||||||||
(dollars in thousands) | |||||||||||||||
Three Months Ended | |||||||||||||||
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|||||||
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
|||||||
Interest Income | |||||||||||||||
Interest and Fees on Loans | $ |
7,874 |
$ |
7,589 |
$ |
7,822 |
$ |
7,766 |
$ |
7,537 |
|||||
Fees on PPP Loans |
|
946 |
|
1,374 |
|
559 |
|
391 |
|
- |
|||||
Net Fair Value Amortization Income |
|
43 |
|
14 |
|
5 |
|
46 |
|
115 |
|||||
Interest on Securities |
|
271 |
|
274 |
|
306 |
|
246 |
|
323 |
|||||
Interest on Fed Funds |
|
- |
|
- |
|
- |
|
- |
|
- |
|||||
Interest on Due From Banks |
|
60 |
|
74 |
|
67 |
|
72 |
|
187 |
|||||
Total Interest Income |
|
9,194 |
|
9,325 |
|
8,759 |
|
8,521 |
|
8,162 |
|||||
Interest Expense | |||||||||||||||
Interest Expense on Deposits |
|
263 |
|
295 |
|
333 |
|
501 |
|
862 |
|||||
Interest Expense on Borrowings |
|
- |
|
- |
|
22 |
|
48 |
|
53 |
|||||
Total Interest Expense |
|
263 |
|
295 |
|
355 |
|
549 |
|
915 |
|||||
Net Interest Income |
|
8,931 |
|
9,030 |
|
8,404 |
|
7,972 |
|
7,247 |
|||||
Provision for Loan Losses |
|
338 |
|
418 |
|
209 |
|
710 |
|
783 |
|||||
Net Interest Income After Provision |
|
8,593 |
|
8,612 |
|
8,195 |
|
7,262 |
|
6,464 |
|||||
Non-Interest Income | |||||||||||||||
Service Charges, Commissions and Fees |
|
653 |
|
543 |
|
609 |
|
463 |
|
502 |
|||||
Other Non-Interest Income |
|
173 |
|
251 |
|
149 |
|
159 |
|
193 |
|||||
Total Non-Interest Income |
|
826 |
|
794 |
|
758 |
|
622 |
|
695 |
|||||
Non-Interest Expense | |||||||||||||||
Salaries and Employee Benefits |
|
3,706 |
|
3,847 |
|
3,604 |
|
3,495 |
|
3,452 |
|||||
Occupancy and Equipment |
|
590 |
|
722 |
|
677 |
|
666 |
|
685 |
|||||
Other Non-Interest Expense |
|
1,530 |
|
1,562 |
|
1,434 |
|
1,534 |
|
1,383 |
|||||
Total Non-Interest Expense |
|
5,826 |
|
6,131 |
|
5,715 |
|
5,695 |
|
5,520 |
|||||
Net Income Before Provision for Taxes |
|
3,593 |
|
3,275 |
|
3,238 |
|
2,189 |
|
1,639 |
|||||
Provision for Taxes |
|
1,033 |
|
896 |
|
974 |
|
624 |
|
468 |
|||||
Net Income | $ |
2,560 |
$ |
2,379 |
$ |
2,264 |
$ |
1,565 |
$ |
1,171 |
|||||
Shares (end of period) |
|
5,127,895 |
|
5,083,648 |
|
5,070,556 |
|
5,069,523 |
|
5,047,696 |
|||||
Earnings Per Share - Basic | $ |
0.50 |
$ |
0.47 |
$ |
0.45 |
$ |
0.31 |
$ |
0.23 |
Selected Financial Highlights (unaudited) | ||||||||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
At or for the Three Months Ended |
||||||||||||||||||||
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
||||||||||||
2021 |
|
2020 |
|
2020 |
|
2020 |
|
2020 |
||||||||||||
Income and performance ratios: | ||||||||||||||||||||
Net Income | $ |
2,560 |
|
$ |
2,379 |
|
$ |
2,264 |
|
$ |
1,565 |
|
$ |
1,171 |
|
|||||
Earnings per share - basic |
|
0.50 |
|
|
0.47 |
|
|
0.45 |
|
|
0.31 |
|
|
0.23 |
|
|||||
Return on average assets |
|
1.07 |
% |
|
0.96 |
% |
|
0.98 |
% |
|
0.76 |
% |
|
0.67 |
% |
|||||
Return on average equity |
|
12.34 |
% |
|
11.16 |
% |
|
10.95 |
% |
|
8.18 |
% |
|
6.27 |
% |
|||||
Net interest margin |
|
3.78 |
% |
|
3.85 |
% |
|
3.86 |
% |
|
3.98 |
% |
|
4.27 |
% |
|||||
Efficiency ratio (d) |
|
59.06 |
% |
|
62.65 |
% |
|
62.64 |
% |
|
65.96 |
% |
|
69.18 |
% |
|||||
Asset quality: | ||||||||||||||||||||
Allowance for loan and lease losses | $ |
8,817 |
|
$ |
8,467 |
|
$ |
8,040 |
|
$ |
7,890 |
|
$ |
7,171 |
|
|||||
Nonperforming assets |
|
3,588 |
|
|
3,446 |
|
|
12 |
|
|
40 |
|
|
341 |
|
|||||
Allowance for loan and lease losses / total loans and leases |
|
1.13 |
% |
|
1.17 |
% |
|
1.11 |
% |
|
1.08 |
% |
|
1.19 |
% |
|||||
Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (b) |
|
1.33 |
% |
|
1.32 |
% |
|
1.33 |
% |
|
1.28 |
% |
|
n/a |
|
|||||
Net charge-offs / average loans and leases (annualized) |
|
-0.01 |
% |
|
-0.01 |
% |
|
0.03 |
% |
|
-0.01 |
% |
‐0.01% | |||||||
Texas ratio (c) |
|
3.98 |
% |
|
3.91 |
% |
|
0.01 |
% |
|
0.05 |
% |
|
0.43 |
% |
|||||
Other ratios: | ||||||||||||||||||||
Tier 1 risk-based capital (a) |
|
11.30 |
% |
|
11.45 |
% |
|
11.82 |
% |
|
11.31 |
% |
|
11.17 |
% |
|||||
Total risk-based capital (a) |
|
12.55 |
% |
|
12.70 |
% |
|
13.07 |
% |
|
12.54 |
% |
|
12.30 |
% |
|||||
Common equity tier 1 risk-based capital (a) |
|
11.30 |
% |
|
11.45 |
% |
|
11.82 |
% |
|
11.31 |
% |
|
11.17 |
% |
|||||
Tier 1 leverage ratio (a) |
|
8.21 |
% |
|
8.16 |
% |
|
8.49 |
% |
|
8.87 |
% |
|
10.04 |
% |
|||||
Equity and share related: | ||||||||||||||||||||
Common equity | $ |
86,456 |
|
|
84,919 |
|
|
82,101 |
|
|
79,725 |
|
$ |
77,237 |
|
|||||
Book value per share |
|
16.96 |
|
|
16.59 |
|
|
16.13 |
|
|
15.66 |
|
|
15.35 |
|
|||||
Tangible book value per share |
|
15.97 |
|
|
15.58 |
|
|
15.11 |
|
|
14.62 |
|
|
14.30 |
|
|||||
Stock closing price per share |
|
18.50 |
|
|
16.50 |
|
|
12.10 |
|
|
12.25 |
|
|
12.00 |
|
|||||
Number of shares issued and outstanding |
|
5,128 |
|
|
5,084 |
|
|
5,071 |
|
|
5,070 |
|
|
5,048 |
|
Notes: |
(a) Presented as projected for most recent quarter and actual for the remaining periods. |
(b) PPP loans are 100% guaranteed by the Small Business Administration. |
(c) The sum of Nonperforming assets and Other Real Estate Owned, divided by the sum of Total Shareholder Equity and Total Allowance for Loan and Lease Losses (less Preferred Stock and Intangible Assets). |
(d) Annualized Operating Expense excluding Loan Loss Provisions minus Annualized Extraordinary Expense, divided by Annualized Interest Income including Loan Fees minus Annualized Interest Expense plus Annualized Non-Interest Income minus Annualized Extraordinary Income, expressed as a percentage. |
Loan Deferrals | ||||||||||||
As of March 31, 2021 | ||||||||||||
Principal Only | Principal and Interest | Total Deferred Loans (e) |
Percentage of Total Loans excluding PPP |
|||||||||
CRE - Retail | $ |
9,468,400 |
$ |
- |
$ |
9,468,400 |
1.43 |
% |
||||
CRE - Special Purpose | $ |
- |
$ |
3,799,533 |
$ |
3,799,533 |
0.57 |
% |
||||
CRE - Hospitality | $ |
- |
$ |
- |
$ |
- |
0.00 |
% |
||||
C&I | $ |
1,063,089 |
$ |
1,063,089 |
0.16 |
% |
||||||
$ |
10,531,489 |
$ |
3,799,533 |
$ |
14,331,022 |
2.17 |
% |
|||||
Total Loans excluding PPP | $ |
661,520,000 |
Notes: | |
(e) Thirteen separate loans are included in total loans on deferral |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210426005927/en/
Contacts
American Riviera Bank
www.americanriviera.bank
805-965-5942
Michelle Martinich