American Riviera Bank has announced unaudited net income of $5 million ($0.99 per share) for the nine months ended Sept. 30, 2020. This represents a 4% increase in net income from the $4,821,000 ($0.96 per share) for the same reporting period in the prior year.
The bank reported record unaudited net income of $2,264,000 ($0.45 per share) for the third quarter ended Sept. 30, 2020. This represents a 46% increase from the $1,547,000 ($0.31 per share) for the same quarter last year.
“Despite significant uncertainty in the economy, the bank generated record earnings in the third quarter, reflecting the diversity of our business model and growing market share position,” said Jeff DeVine, president CEO.
“Thanks to the hard work of our employees and our solid financial footing, we have been able to serve as economic first responders to our clients and Central Coast communities impacted by the COVID-19 pandemic,” he said.
The bank has experienced a significant decrease in temporary loan payment deferrals for clients negatively affected by the COVID-19 pandemic. Total loans on deferral at Sept. 30, 2020 were about $18 million, representing 3% of total loans excluding SBA PPP, and have notably fallen from the $108 million reported at June 30, 2020.
About $5 million of such deferrals are to borrowers wishing to conserve cash for the economic uncertainty, and who have asked for the principal portion of their payments to be deferred while continuing to pay interest.
The remaining $13 million are full deferrals of both principal and interest on loans secured by commercial real estate with significant equity cushion.
The sizeable increase in loan loss provision year-to-date was primarily driven by qualitative factors in our loan loss methodology related to COVID-19 pandemic economic uncertainty, and not by actual delinquencies or defaults. At Sept. 30, 2020, the bank had no other real estate owned and no loans 90 days or more past due.
The bank has experienced tremendous growth in new and existing relationships, reporting $930 million in total assets as of Sept. 30, 2020, which represents a $233 million or 33% increase from Sept. 30, 2019.
Total loans including SBA PPP increased 32% from Sept. 30, 2019, reaching $722 million at Sept. 30, 2020. Total loans excluding SBA PPP increased $57 million or 10% from Sept. 30, 2019, reaching $605 million at Sept. 30, 2020.
Total deposits increased 37% from Sept. 30, 2019, reaching $829 million at Sept. 30, 2020. Non-interest bearing demand deposit accounts increased $123 million or 59% from the same reporting period in the prior year. Interest bearing demand deposit accounts increased $31 million or 39% from the same reporting period in the prior year.
As of Sept. 30, 2020, American Riviera Bank was highly liquid with $179 million in cash and available for sale securities, and well capitalized with a Tier 1 Capital Ratio of 12% (well above the regulatory guideline of 8% for well capitalized institutions). The tangible book value per share of American Riviera Bank common
stock was $15.11 at Sept. 30, 2020.
American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers on the Central Coast. Full-service branches are in Santa Barbara, Montecito, Goleta, San Luis Obispo and Paso Robles.