American Riviera Bank has announced unaudited net income of $3,274,000 (65 cents per share) for the six months ended June 30. This represents a 16 percent increase in net income from the $2,827,000 (64 cents per share) for the same reporting period in the prior year.
The bank reported an annualized return on average assets of 1.07 percent and return on average equity of 10.06 percent. The bank reported unaudited net income of $1,506,000 (30 cents per share) for the second quarter ended June 30, 2019, compared to $1,475,000 (33 cents per share) for the same quarter last year.
Share count has increased primarily due to the $8,500,000 common stock capital raise closed in the first quarter ended March 31, 2019.
The bank continues to experience significant growth, reporting $662 million in total assets as of June 30, 2019. Total deposits, excluding wholesale deposits, increased 16 percent from June 30, 2018. The bank had $5 million of wholesale deposits at June 30, 2019, down from the $49 million at June 30, 2018.
Over the past 12 months, the bank has replaced these wholesale deposits with local customer deposits. Non-interest bearing demand deposit accounts increased $18 million, or 11 percent from the same reporting period last year, reaching $187 million at June 30, 2019.
The bank reported strong loan growth, with gross loans increasing $64 million, or 13 percen- from June 30, 2018, reaching $542 million at June 30, 2019, with no other real estate owned and no loans 30 or more days past due.
The bank’s net interest income increased by about $1.5 million, or 13 percent for the six months ended June 30, compared to the same reporting period in the prior year.
The bank reported an annualized net interest margin of 4.34 percent for the six months ended June 30, 2019, reflecting only modest compression from the 4.52 percent reported for the same reporting period last year.
“We continue to invest in our expansion and are pleased to announce the opening of our full service branch in the city of San Luis Obispo, which will allow us to better serve the needs of businesses and consumers in San Luis Obispo County,” said Jeff DeVine, president/CEO.
“We look forward to welcoming new clients affected by mega-mergers who will benefit from our high level of service built on relationships with local decision makers,” he said.
As of June 30, American Riviera Bank has a strong capital position with a Tier 1 Capital Ratio of 12 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 $13.41 at June 30, 2019, a 14 percent increase from $11.80 at June 30, 2018.
— Michelle Martinich for American Riviera Bank.