American Riviera Bancorp, holding company of American Riviera Bank has announced unaudited net income of $10.5 million ($1.82 per share) for the year ended Dec. 31, 2023, compared to $13.5 million ($2.38 per share) earned in the same reporting period in the previous year.

Unaudited net income was $2.2 million ($0.38 per share) for the quarter ended Dec. 31, 2023, compared to $2.6 million ($0.46 per share) in the previous quarter and $4.0 million ($0.70 per share) earned in the same reporting period in the previous year.

Earnings for the fourth quarter of 2023 were impacted by a decision to reposition $15.6 million of lower-yielding securities into new higher-yielding securities of similar duration, resulting in a $544,000 pre-tax loss on sale with an approximate 18-month earn back.

“Although 2023 net income was impacted by rising deposit costs and strategic decisions we made to invest in our technology, the company was still able to increase shareholders’ equity and tangible book value per share by 15% in the last year,” said Jeff DeVine, president/CEO of the company and the bank.

“Our balance sheet has adjusted to the higher rate environment and net interest income and net interest margin are improving,” he said. “The core and digital banking upgrade completed in the fourth quarter of 2023 will increase efficiencies and enhance client functionality in 2024.”

Fourth Quarter Highlights
• The bank has the highest “Super Premier” rating for financial performance from the Findley Reports and has maintained a 5 Star – Superior rating from Bauer Financial as of Sept. 30, 2023.
• The bank was rated “outstanding” by the Federal Deposit Insurance Corporation in 2023 for its performance under the Community Reinvestment Act.
• Total shareholders’ equity of $100.6 million at Dec. 31, 2023, has increased $8.3 million or 9.0% from the prior quarter-end and $13.5 million, or 15.5% from the prior year-end. The substantial increase is attributable to retained earnings as well as the improved market value of our securities portfolio.
• Tangible book value per share of $16.59 at Dec. 31, 2023, has increased $1.44 or 9.5% from the prior quarter-end and $2.16 or 15.0% from the prior year-end.