American Riviera Bank (OTC Markets: ARBV) announced Wednesday unaudited, pre-tax operating income of $763,000 for the second quarter, which ended June 30, 2015.
This represents a 20-percent increase from the $635,000 generated during the same reporting period last year.
Due to merger-related costs of $160,000, the bank reported unaudited net income of $362,000 ($0.13 per share) for the second quarter. This compares to $382,000 for the same quarter last year.
For the six months ending June 30, 2015, the bank reported unaudited net income of $804,000 ($0.30 per share), which includes $162,000 in merger related expenses. This represents a 20-percent increase from the $668,000 reported for the first six months of the previous year.
American Riviera Bank recently announced a merger with the Bank of Santa Barbara, which is expected to close in the fourth quarter of 2015.
The strategic merger will create one of the premier community banking franchises in Santa Barbara City and County.
Jeff DeVine, president and chief executive officer stated, “We are very excited to merge these two outstanding community banks into one that is perfectly sized for Santa Barbara and the surrounding area,” he said. “The merger will deliver convenience and value for our clients through increased lending capacity, a Goleta branch, a full service SBA lending department and expanded depository products.
“Together we will realize important synergies, be better positioned to benefit from future growth opportunities, and generate enhanced financial performance for our shareholders.”
American Riviera Bank has achieved strong growth in loans, reporting $171 million in total loans at the end of the most recent quarter, which represents an 8-percent increase from the end of the second quarter of 2014.
Loan quality remains high, with no other real estate owned and no loans past due 30 days or more at quarter end.
The aforementioned loan production enabled the bank to grow net interest income 7 percent compared to the same quarter last year and 11 percent compared to the first six months of 2014.
Deposits averaged $199 million for the second quarter ending June 30, 2015, which represents a significant 24-percent increase from the same reporting period last year.
American Riviera Bank maintains a strong capital position with Tier 1 Capital to total-average assets of 12 percent as of June 30, 2015—well above the regulatory guideline of 5 percent for well capitalized institutions.
The book value of one share of American Riviera Bank stock was $10.40 at June 30, 2015, an increase from $10.02 at June 30, 2014.
Company Profile
American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers in Santa Barbara and surrounding communities. The state-chartered bank opened for business on July 18, 2006, with the support of 400 local shareholders.
Offices are located at 1033 Anacapa St. in Santa Barbara and 525 San Ysidro Road in Montecito.
For three consecutive years, the bank has been named a “Premier Performer” by the Findley Reports.
As of March 31, 2015, the Bank was rated five stars by Bauer Financial.
—Michelle Martinich is the chief financial officer at American Riviera Bank.