American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $956,000 ($0.22 per share) for the first quarter ended March 31, 2017, which represents a 426% increase from the $182,000 ($0.04 per share) reported for the first quarter ended March 31, 2016. The Bank reported an annualized return on average assets of 0.91% and return on average equity of 7.88%, which represents an increase from the 0.20% and 1.88%, respectively, achieved for the same reporting period prior year.

The Bank experienced strong loan demand in the first quarter, with loans increasing 8% from December 31, 2016, reaching $384 million in total loans at March 31, 2017 with no other real estate owned. Deposit growth was also substantial, with the Bank opening almost 500 new accounts at our three locations during the first quarter of 2017 and growing total deposits by 12% and demand accounts by 20% since one year ago. Non-interest bearing demand deposits have increased to 36% of the $412 million in total deposits at March 31, 2017, an increase from 33% at March 31, 2016.

Jeff DeVine, President and Chief Executive Officer, stated, "American Riviera Bank started 2017 strong, with significant loan and deposit origination this quarter. Last year, the merger required significant internal focus, but now that successful integration is behind us we've been able to shift our focus to expanding existing relationships and developing new customers."

As of March 31, 2017, American Riviera Bank had $467 million in total assets, and maintained a strong capital position 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's common stock is $10.51 at March 31, 2017, an increase from $9.75 at March 31, 2016.

Company Profile

American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers in Santa Barbara and the surrounding communities. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Offices are located at 1033 Anacapa Street in Santa Barbara, 525 San Ysidro Road in Montecito, and 5880 Calle Real in Goleta. American Riviera Bank is the second-largest community bank based in the city of Santa Barbara. For seven consecutive years the Bank has been recognized for strong financial performance by the Findley Reports, and received the highest "Super Premier" rating from Findley for 2016. As of December 31, 2016, the Bank was rated five stars by BauerFinancial.

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
      2017     2016   Change
Assets
Cash & Due From Banks $ 40,998 $ 31,584 30 %
Fed Funds Sold 14,978 971 1443 %
Securities 8,405 7,733 9 %
 
Loans 383,685 358,793 7 %
Allowance For Loan Losses   (3,735 )   (3,511 ) 6 %
Net Loans 379,950 355,282 7 %
 
Fixed Assets 1,245 1,369 -9 %
Goodwill and Other Intangibles 5,829 4,579 27 %
Other Assets   15,225     14,637   4 %
Total Assets   466,630     416,155   12 %
 
 
Liabilities & Shareholders' Equity
Demand Deposits 146,654 121,937 20 %
Interest Bearing Deposits   265,065     244,291   9 %
Total Deposits 411,719 366,228 12 %
 
Borrowed Funds 2,000 2,000 0 %
Other Liabilities   1,029     1,365   -25 %
Total Liabilities 414,748 369,593 12 %
 
Common Stock 42,825 42,712 0 %
Retained Earnings 9,076 3,862 135 %
Other Capital   (19 )   (12 ) 58 %
Total Shareholders' Equity   51,882     46,562   11 %
     
Total Liabilities & Shareholders' Equity $ 466,630   $ 416,155   12 %
 
Book Value Per Share $ 11.84 $ 10.81
Tangible Book Value Per Share $ 10.51 $ 9.75
 
Statements of Income (unaudited)      
(dollars in thousands)
  Quarter Ended
Mar 31, Mar 31,
      2017     2016   Change
Interest Income
Interest and Fees on Loans $ 5,023 $ 4,663 8 %
Interest on Securities 19 31 -40 %
Interest on Fed Funds 15 8 89 %
Interest on Due From Banks   88     45   94 %
Total Interest Income 5,144 4,747 8 %
 
Interest Expense
Interest Expense on Deposits 220 210 5 %
Interest Expense on Borrowings   5     10   -49 %
Total Interest Expense   225     220   2 %
 
Net Interest Income 4,920 4,527 9 %
Provision for Loan Losses   387     86   350 %
Net Interest Income After Provision 4,533 4,441 2 %
 
Non-Interest Income
Service Charges, Commissions and Fees 275 196 40 %
Other Non-Interest Income   88     83   7 %
Total Non-Interest Income 363 279 30 %
 
Non-Interest Expense
Salaries and Employee Benefits 1,955 2,188 -11 %
Occupancy and Equipment 369 391 -5 %
Other Non-Interest Expense   974     1,504   -35 %
Total Non-Interest Expense 3,298 4,084 -19 %
 

Net Income Before Provision for Taxes
1,597 636 151 %
Provision for Taxes   641     455   41 %
Net Income   956     182   426 %
 
Shares (end of period) 4,382,260 4,308,372 2 %
Earnings Per Share - Basic $ 0.22 $ 0.04 418 %
 
Return on Average Assets (annualized) 0.91 % 0.20 %
Return on Average Equity (annualized) 7.88 % 1.88 %
Net Interest Margin (annualized) 4.77 % 4.63 %

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