American Riviera Bancorp, holding company of American Riviera Bank, has announced unaudited net income of $3.0 million ($0.52 per share) for the three months ended March 31, 2023, compared to $3.2 million ($0.55 per share) earned in the same reporting period in the previous year.

Adjusted for non-recurring SBA PPP loan fee income of $913,000 in the first quarter of 2022, the company reported a $544,000 or 15.5% increase in pre-tax net income for the first quarter of 2023 compared to the same quarter last year.

“American Riviera Bank reported respectable earnings, loan growth, and increased capital ratios despite the elevated interest rate environment,” said Jeff DeVine, president/CEO of the company and the bank.

“Our clients appreciate the bank’s relationship business model of serving depositors and providing loans on the Central Coast of California as we have for the past 17 years,” he said.
“Market volatility has created opportunities for us to do business with many new clients. Our dedicated and knowledgeable team of bankers opened over 750 new deposit accounts this quarter,” he said.

First Quarter Highlights
• The bank recently received 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 Dec.31, 2022.
• Return on average assets for the first quarter ended March 31, 2023, was 0.98%, and return on average equity was 14.22%.
• Total loans reached $924.8 million at March 31, 2023, an increase of $17.1 million or 1.9% from the prior quarter-end, and $136.7 million or 17.4% from March 31, 2022. The Bank’s loan-to-deposit ratio at March 31, 2023, was 84.1%.
•  Non-interest-bearing demand deposits totaled $460.7 million at March 31, 2023, a modest decrease of $17.9 million or 3.7% from the prior quarter-end, and a modest decrease of $21.0 million or 4.4% from March 31, 2022. Non-interest-bearing demand deposits have increased to 41.9% of total deposits, from 41.1% at the prior quarter-end, and 38.6% one year ago.
• Interest-bearing deposits totaled $639.0 million at March 31, 2023, a decrease of $46.0 million or 6.7% from the prior quarter-end, and a decrease of $125.8 million or 16.4% from March 31, 2022. The Federal Reserve’s actions over the last year to rapidly increase interest rates have caused a shift in interest-bearing depositor behavior as some clients have decided to reinvest their excess cash in non- FDIC insured, external investment products.
• During the first quarter of 2023, the Bank opened 784 new deposit accounts, compared to 562 in the last quarter, and 657 in the same quarter last year.
• All of the bank’s deposits are local, retail deposits. At March 31, 2023, the bank had no wholesale brokered deposits.