American Riviera Bank has announced record unaudited net income of $5,890,000 ($1.32 per share) for the year ended Dec. 31, 2018. This represents a 67 percent increase in net income from the $3,536,000 ($0.80 per share) for the same reporting period in the prior year.
The annualized return on average assets of 1.03 percent and return on average equity of 10.19 percent represent an increase from the 0.73 percent and 6.61 percent, respectively, achieved for the same reporting period in the prior year.
For the fourth quarter ended Dec. 31, 2018, the bank reported unaudited net income of $1,492,000 ($0.33 per share) compared to $35,000 ($0.01 per share) for the fourth quarter last year.
Prior year results were negatively impacted by a non-recurring $1,119,000 revaluation of deferred tax assets in the fourth quarter ended Dec. 31, 2017, related to enacted federal tax reform.
In 2018 the bank benefitted from the lower federal income tax rate associated with such reform, and reinvested by hiring 18 new employees and continued its expansion into San Luis Obispo County.
The bank’s continued organic growth in Santa Barbara County and the opening of its full-service Paso Robles branch resulted in a 20 percent increase in total assets, with $616 million in total assets reported at Dec. 31, 2018.
Asset growth was driven by strong loan demand, with total loans increasing $94 million or 23 percent from Dec. 31, 2017, reaching $508 million at Dec. 31, 2018, with no loans that were 90 days or more past due and no other real estate owned.
The bank reported an annualized net interest margin of 4.51 percent for the year ended Dec. 31, 2018.
As of Dec. 31, 2018, the bank reported $513 million in total deposits. This represents a $65 million or 14 percent increase from the same reporting period in the prior year.
Checking accounts, comprised of non-interest bearing demand deposits and interest bearing NOW accounts, increased by $17 million or 8 percent from the same reporting period last year.
“2018 was an exciting year of growth for American Riviera Bank with assets increasing just over $100 million,” said Jeff DeVine, president/CEO. “Our bankers are creating lasting relationships with clients in our Central Coast communities by serving their deposit and credit needs.
“As a result, the bank continues to grow our client base, asset size and earnings. We are looking forward to further expansion in 2019 with a full-service branch in the City of San Luis Obispo.”
As of Dec. 31, 2018, American Riviera Bank maintained a strong capital position with a Tier 1 Capital Ratio of 10 percent, well above the regulatory guideline of 8 percent for well-capitalized institutions.
The tangible book value per share of American Riviera Bank common stock is $12.51 at Dec. 31, 2018, a 12 percent increase from $11.16 at Dec. 31, 2017.
— Michelle Martinich for American Riviera Bank.