American Riviera Bank Reports Assets Exceeding $1 Billion

By: American Riviera Bank via Business Wire

April 26, 2021 at 18:49 PM EDT

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