American Riviera Bank (OTC BB: ARBV.OB) announced Thursday that it reported unaudited net income of $502,000 for the six months ending June 30 — a $599,000 improvement from the same period last year.
“With many other banks concerned about earnings and capital, our bank is well positioned to continue to serve our community by providing a safe place for its deposits and knowledgeable and experienced bankers for its lending needs,” president and CEO Jeff DeVine said.
The bank’s net interest margin continues to increase, reaching 4.68 percent for the six months ended June 30, up from 3.67 percent for the same period last year. The bank has made significant improvements in the deposit mix by focusing on core, relationship accounts.
In the past 12 months, core deposits have increased 12 percent to $82 million, or 80 percent of total deposits, as of June 30. Loan balances grew to $107 million at June 30, from $104 million one year ago, and increased 7 percent from just one quarter ago at March 31.
The bank continues to maintain an ample 2.74 percent loan loss allowance as a percentage of loans, with 64 percent of the $2.9 million reserve in a general allocation and unrelated to specific loans. The bank recorded $227,000 in loan loss provision for the six months ended June 30. It has continued to make improvements in loan quality, with a 46 percent reduction in nonperforming loans and other real estate owned since Dec. 31, 2009.
The bank’s unaudited net income for the quarter ended June 30 was substantial at $274,000, considering that the quarterly results include a $72,000 loan charge-off and a $124,000 loss on sale of other real estate owned. Net interest margin was 4.90 percent for the quarter ended June 30.
The bank continues to maintain a strong capital position with Tier 1 capital to total assets of 13 percent as of June 30, well above the regulatory guideline of 5 percent for well-capitalized institutions.
— Michelle Martinich is senior vice president and chief financial officer for American Riviera Bank.