American River Bankshares (NASDAQ-GS: AMRB) today reported net
income of $1.4 million, or $0.24 per diluted share for the first
quarter of 2020 compared to $1.1 million, or $0.20 per diluted
share for the first quarter of 2019.
“While it is important to share our quarterly results with our
shareholders, it is important to remember that the current global
pandemic is impacting us all,” said David E. Ritchie, Jr.,
President and Chief Executive Officer. “We are carefully balancing
our decisions to benefit our shareholders while protecting the
health and wellbeing of our employees and financial viability of
our clients, which would include providing access to the benefits
under the CARES Act.”
Financial Highlights
- Net loans decreased $5.8 million (1.5%) and core deposits
increased $1.2 million (0.2%) during the first quarter of
2020. Net loans increased $52.0 million (15.5%) from March
31, 2019 to March 31, 2020. Core deposits increased $47.5 million
(9.8%) from March 31, 2019 to March 31, 2020.
- The first quarter 2020 net interest margin was 3.75%, compared
to 3.63% for the fourth quarter of 2019 and 3.59% for the first
quarter of 2019.
- Net interest income was $6.2 million in the first quarter of
2020, compared to $5.5 million in the first quarter of 2019
- Pretax, pre-provision income increased $724,000 (42.6%) to $2.4
million in the first quarter of 2020, compared to $1.7 million in
the first quarter of 2019.
- The allowance for loan and lease losses was $5.6 million (1.43%
of total loans and leases) at March 31, 2020, compared to $5.1
million (1.29% of total loans and leases) at December 31, 2019 and
$4.6 million (1.34% of total loans and leases) at March 31,
2019. There were no nonperforming loans at March 31, 2020 and
December 31, 2019 compared to $25,000 at March 31, 2019.
- Shareholders’ equity was $86.9 million at March 31, 2020
compared to $82.9 million at December 31, 2019. Tangible book
value per share was $11.92 at March 31, 2020 compared to $11.29 at
December 31, 2019. Book value per share was $14.68 per share
at March 31, 2020 compared to $14.06 per share at December 31,
2019.
- The Company continued the quarterly cash dividend program by
paying a $0.07 per share cash dividend on February 12, 2020.
- The Company continues to maintain strong capital ratios.
At March 31, 2020 the Leverage ratio was 9.4% compared to 9.2% at
December 31, 2019; the Tier 1 Risk-Based Capital ratio was 15.3%
compared to 14.8% at December 31, 2019; and the Total Risk-Based
Capital ratio was 16.6% compared to 15.9% at December 31,
2019.
Northern California Economic Update, March 31,
2020.
Each quarter, management at American River Bank prepares an
economic report for internal use that analyzes the recent
historical rolling quarters within the three primary markets in
which the Company does business – Greater Sacramento Area and
Sonoma and Amador Counties. Sources of economic and industry
information include: Colliers International, Keegan & Coppin
Company, Inc., ycharts, and the State of California Employment
Development Department.
The commercial real estate and employment data below primarily
covering years 2017 through 2019 reflects mostly positive trends in
the markets we serve. 2019 commercial real estate results
reflect some slight signs of slowing when compared to year-end
2018. Unemployment for the month of December 2019
decreased when compared to year-end 2018, however, as we move into
2020, unemployment has increased in all of the Bank’s
markets.
Although more current data has not yet fully
emerged, the Bank’s management is closely monitoring the ongoing
economic effects of the COVID-19 pandemic, including temporary and
permanent business closures, increased unemployment, and the
disruption of supply chains for construction. It is anticipated
that unemployment will continue to rise and the commercial real
estate market will slow considerably in the coming
months.
Commercial Real Estate. In the Greater
Sacramento Area, when comparing fourth quarter 2018 to fourth
quarter 2017, commercial real estate vacancies improved in all
segments. Office vacancy decreased from 14.9% to 14.0%,
retail vacancy decreased from 9.1% to 7.8%, and industrial vacancy
decreased from 5.9% to 4.7%. As of the fourth quarter 2019,
vacancies in office and industrial segments decreased slightly
further to 13.8% and 4.6% respectively. Retail vacancy
increased slightly over the year, topping at 8.3%, however, rested
at 7.8% as of fourth quarter 2019.
In Sonoma County, vacancy rates fluctuated within a relatively
narrow range during 2018. Comparing fourth quarter 2018 to
fourth quarter 2017, commercial real estate office vacancy
decreased slightly from 12.5% to 12.3%, retail vacancy increased
from 3.8% to 4.5%, and industrial vacancy increased from 4.6% to
4.8%. As of fourth quarter 2019, Sonoma County’s retail and
industrial vacancy rates decreased slightly further to 4.3% and
4.7% respectively. Office vacancy remained flat at
12.3%.
In all segments (office, retail, and industrial), the Greater
Sacramento Area reported a positive absorption from December 31,
2017 through December 31, 2018. Some fluctuation has occurred
in 2019 and as of December 31, 2019 absorption was a positive
129,414 square feet (SF) for office, 568,000 SF for retail, and
120,000 SF for industrial.
Sonoma County and the City of Santa Rosa reported positive
absorption for the office segment from December 31, 2017 through
the third quarter of 2018. Although absorption remained
positive for the fourth quarter of 2018 and into 2019, it was
trending downward, and at the end of the third quarter 2019 was
negative 45,441 SF in Sonoma County and a positive 44,143 SF in
Santa Rosa.
Industrial absorption in Sonoma County was also positive through
third-quarter 2018, however, experienced an increasingly negative
absorption since that time. During the third quarter 2019,
some improvement was made, however, absorption was still a negative
71,923 SF. As of fourth quarter 2019, industrial absorption
improved further to a positive 18,599 SF. In the City of
Santa Rosa, industrial absorption was positive from December 31,
2017 through June 30, 2018, however began to decline as of
September 30, 2018 at which time absorption was a negative 7,795
SF. As of September 30, 2019, absorption was a negative 6,876
SF, however improved as of December 31, 2019 to a positive 81,630
SF. Retail absorption data for Sonoma County and the
City of Santa Rosa is not available for the time periods mentioned
above.
In the Greater Sacramento area, commercial lease rates overall
have increased from December 31, 2017 through December 31, 2018
with lease rates ranging from the following: office: $1.88/SF to
$1.99/SF; retail: $1.34/SF to $1.38/SF and industrial: $0.50/SF to
$0.57/SF. Fourth quarter 2018 lease rates represent the top
of the range in two segments at $1.99/SF for office and $0.57/SF
for industrial. Retail decreased slightly from $1.39/SF in
third quarter 2018 to $1.38/SF in fourth quarter 2018. As of
fourth quarter 2019, lease rates for office, industrial, and retail
remained flat at $1.99/SF, $0.57/SF, and $1.41/SF respectively.
As a proxy for Sonoma County, the City of Santa Rosa’s gross
office lease rates as of year-end 2017 ranged from $1.75/SF to
$2.35/SF and industrial rates ranged from $0.90/SF to
$1.10/SF. Year-end 2018 office rental rates ranged from
$1.80/SF to $2.50/SF (depending on quality) and industrial rates
ranged from $0.95/SF to $1.30/SF with cannabis use rents ranging
from $1.50/SF to $3.00+ per SF gross. As of second quarter
2019, office rental rates ranged from $1.95 - $2.35/SF full service
for Class A, and $1.75 - $1.90/SF full service for Class B.
Industrial rental rates ranged from $0.95 - $1.25/SF gross
(non-cannabis). Retail rental rates ranged from $2.00 -
$4.50/SF NNN for shops in anchor centers and $1.25 - $1.50/SF NNN
for anchor space in anchor centers. Subsequent data for Santa
Rosa is not yet available. There is no retail rental rate data
available for the City of Santa Rosa for the other time periods
mentioned above.
Due to the rural nature of the Amador County region, it has the
lowest level of commercial real estate concentration in the Bank’s
footprint. There is limited supply for commercial real estate
in this region and as a result, minimal information is
available.
Multi-family. The Bank’s multi-family
loan portfolio is widely spread geographically throughout
California. Sacramento data is currently being used below as
it is our largest concentration, however, as multi-family loans
become more concentrated in other major areas they may be added in
the future.
The multi-family market in the Sacramento area has reflected
high occupancy from December 31, 2017 through December 31,
2018. The highest occupancy rate within this time range was
in third quarter 2018 at 96.8%, and the lowest was first quarter
2018 at 96.3%. As of fourth quarter 2019, occupancy was at
96.5%. Monthly lease rates during this period ranged from
$1,359 in fourth quarter 2017 to $1,405 in fourth quarter
2018. As of fourth quarter 2019, lease rates increased to
$1,495.
The trailing 12-month cap rate from fourth quarter 2017 through
fourth quarter 2018, ranged with some fluctuation from a high of
5.6% in fourth quarter 2017 to a low of 5.4% in the second quarter
2018. As of fourth quarter 2019, the 12-month cap rate was
5.8%.
Employment. National unemployment, which
reached a high of 10.0% at October 31, 2009, had dropped steadily
over the years and stabilized. However, the recent global
COVID-19 pandemic facing our nation has had a sudden
tremendous impact on unemployment. When compared to December
2016, national unemployment decreased from 4.7% to 4.1% in December
2017, 3.9% in December 2018, and 3.5% as of December 2019. As
of March 31, 2020, the national unemployment rate was 4.4%, a sharp
increase compared to February’s 3.5% unemployment rate.
California unemployment was 4.4% at December 31, 2017. As
of December 2018 and December 2019, the rate decreased further to
4.3% and 3.9% respectively. The California preliminary
unemployment rate remained flat at 3.9% as of February 2020.
The number of employed Californians increased during years 2017 and
2018, and slowed at year-end 2019. There were 18.5
million employed at the end of 2017, and 18.7 million at the end of
years 2018 and 2019. As of February 2020, the number of
employed Californians increased since year-end 2019 by 28,000
jobs. The March 2020 data is not yet available for
California, but as stated earlier based on the increased number of
first time unemployment claims we expect the unemployment rate to
increase.
All three of our markets have reported positive unemployment
rate results from year-end 2017 to year-end 2019 with an increase
in unemployment as we move into 2020. When comparing December
31, 2017 to December 31, 2018, unemployment rates increased
slightly from 3.9% to 4.0% in the Sacramento MSA and decreased from
2.9% to 2.6% in the Santa Rosa-Petaluma MSA. As of December
31, 2019, the unemployment rate for Sacramento and Santa
Rosa-Petaluma MSAs decreased to 3.2% and 2.4%, respectively.
Over the same period, Amador County’s unemployment has improved
decreasing to 4.3% at December 31, 2017, 4.0% at December 31, 2018,
and 3.6% at December 31, 2019.
As of February 2020, unemployment rates increased slightly in
all areas compared to year-end 2019 as follows: Sacramento MSA
increased from 3.2% to 3.8%, Santa-Rosa-Petaluma MSA increased from
2.4% to 2.8%, and Amador County from 3.6% to 4.4%.
Job growth was positive in all of our markets from year-end 2017
to year-end 2018. Compared to December 2017, job growth was
3.7% for Sacramento MSA, 1.6% for Santa Rosa MSA and 1.2% for
Amador County as of December 2018. As of December 2019,
the number employed decreased slightly in the Sacramento MSA and
Santa Rosa MSA, 0.19% and 0.39% respectively, while Amador County
increased the number employed 2.08%. February 2020
results reflect a decrease in job growth for all three areas.
The number employed in the Sacramento MSA decreased by 7,000 jobs
or 0.65%, Santa Rosa MSA 2,000 jobs or 0.79%, and Amador County 60
jobs or 0.42%.
Balance Sheet Review
American River Bankshares’ assets totaled $716.1 million at
March 31, 2020, compared to $720.4 million at December 31, 2019,
and $689.4 million at March 31, 2019.
Net loans totaled $388.0 million at March 31, 2020, compared to
$393.8 million at December 31, 2019, and $336.0 million at March
31, 2019.
The loan portfolio at March 31, 2020 included: real estate loans
of $318.4 million (81% of the portfolio), commercial loans of $42.9
million (11% of the portfolio) and other loans, which consist
mainly of agriculture and consumer loans of $33.0 million (8% of
the portfolio). The real estate loan portfolio at March 31,
2020 includes: owner-occupied commercial real estate loans of $74.4
million (23% of the real estate portfolio), investor commercial
real estate loans of $141.9 million (45% of the real estate
portfolio), multi-family real estate loans of $52.1 million (16% of
the real estate portfolio), construction and land development loans
of $20.9 million (7% of the real estate portfolio) and residential
real estate loans of $29.1 million (9% of the real estate loan
portfolio).
Nonperforming assets (“NPAs”) include nonperforming loans and
leases, other assets, and other real estate owned (“OREO”).
Nonperforming loans include all such loans and leases that are
either placed on nonaccrual status or are 90 days past due as to
principal or interest, but still accrue interest because such loans
are well-secured and in the process of collection. There were
$846,000 in NPAs at March 31, 2020 compared to $1.4 million in NPAs
at December 31, 2019 and $982,000 at March 31, 2019.
The NPAs to total assets ratio decreased to 0.12% at March
31, 2020 from 0.19% at December 31, 2019 and from 0.14% at March
31, 2019.
At March 31, 2020 and December 31, 2019, the Company had one
OREO property totaling $846,000 compared to a balance of $957,000
at March 31, 2019. During the fourth quarter of 2019, the
book value of this OREO property was written down from $957,000 to
$846,000 after receipt of an updated appraisal. Also during
the fourth quarter of 2019, the Company took possession of an
automobile which was held as collateral for a loan. The book
value of this automobile at December 31, 2019 was $517,000 and was
classified in other assets. During the first quarter of 2020,
this automobile was sold with 100% of the principal collected upon
sale. At March 31, 2020, December 31, 2019 and March 31, 2019 there
was no valuation allowance for OREO properties.
Loans measured for impairment were $7.5 million at the end of
March 2020, a decrease from $7.6 million at December 31, 2019, and
from $8.6 million at the end of March 2019. Specific reserves
of $134,000 were held on the impaired loans at March 31, 2020,
compared to $142,000 at December 31, 2019 and $164,000 at March 31,
2019. There was $495,000 in provision for loan and lease
losses in the first quarter of 2020 compared to $180,000 in
provision for the fourth quarter of 2019 and $180,000 for the first
quarter of 2019. The additions to the loan and lease loss
allowance in 2020 were due to the anticipated economic impact of
the COVID-19 pandemic and expected volatility in loan
payments. The Company had net recoveries of $4,000 in the
first quarter of 2020 compared to net recoveries of $4,000 in the
fourth quarter of 2019 and net recoveries of $5,000 in the first
quarter of 2019. The Company continues to gather the
latest information available to perform and update its impairment
analysis. As more information becomes available, including
the economic impact of the COVID-19 pandemic, the Company will
update the impairment analysis, which could lead to further charges
to the ALLL. The Company maintains the allowance for loan and
lease losses at a level believed to be adequate for known and
inherent risks in the portfolio. The methodology incorporates a
variety of risk considerations, both quantitative and qualitative,
in establishing an allowance for loan and lease losses that
management believes is appropriate at each reporting
date.
Investment securities, which excludes $4.3 million in stock of
the Federal Home Loan Bank of San Francisco (“FHLB Stock”), totaled
$255.9 million at March 31, 2020, a decrease of 2.4% from $262.2
million at December 31, 2019 and of 10.8% from $286.9 million at
March 31, 2019.
At March 31, 2020, the investment portfolio was comprised of 92%
U.S. Government agencies or U.S. Government-sponsored agencies
(primarily mortgage-backed securities), 5% obligations of states
and political subdivisions, and 3% corporate bonds. The
reduction in the investment portfolio during 2020 was to increase
the Company’s cash position in light of potential liquidity needs
due to the COVID-19 pandemic.
At March 31, 2020, total deposits were $603.1 million, compared
to $604.8 million at December 31, 2019 and $572.4 million one year
ago. Core deposits increased $1.2 million (0.2%) to $532.2
million at March 31, 2020 from $531.0 million at December 31, 2019
and increased $47.5 million (9.8%) from $484.7 million at March 31,
2019. The Company considers all deposits except time deposits
as core deposits.
At March 31, 2020, noninterest-bearing demand deposits accounted
for 38% of total deposits, interest-bearing demand accounts were
11%, savings deposits were 12%, money market balances accounted for
27% and time certificates were 12% of total deposits.
At March 31, 2019, noninterest-bearing demand deposits
accounted for 37% of total deposits, interest-bearing demand
accounts were 12%, savings deposits were 13%, money market balances
accounted for 23% and time certificates were 15% of total
deposits.
Shareholders’ equity increased $3.9 million (4.8%) to $86.8
million at March 31, 2020 compared to $82.9 million at December 31,
2019. The increase in equity from December 31, 2019 was due
to a $2.8 million increase in accumulated other comprehensive
income related to an increase in the unrealized gain on securities,
a $1.0 million increase in Retained Earnings due to the net income
for the quarter less cash dividends declared, and a $98,000
increase in common stock from equity compensation.
Net Interest Income
The net interest income during the first quarter 2020 increased
$639,000 (11.5%) to $6.2 million from $5.5 million in the first
quarter of 2019 and the net interest margin as a percentage of
average earning assets was 3.75% in the first quarter of 2020,
compared to 3.63% in the fourth quarter of 2019 and 3.59% in the
first quarter of 2019. Interest income for the first quarter
of 2020 increased $583,000 (9.5%) to $6.7 million compared to $6.1
million in the first quarter of 2019.
The average tax equivalent yield on earning assets increased
from 3.96% in the first quarter of 2019 to 4.06% for the first
quarter of 2020. Much of the increase in yields from the
first quarter of 2019 to the first quarter of 2020 can be
attributed to an increase in loans and an increase in yield on
loans due to the higher rate environment between these
periods. When compared to the first quarter of 2019, average
loan balances increased $67.8 million (20.6%) from $328.6 million
to $396.3 million for the first quarter of 2020. The yield on
loans increased from 4.93% in the first quarter of 2019 to 5.03%
during the first quarter of 2020.
The average balance of earning assets increased $37.0 million
(5.8%) from $633.0 million in the first quarter of 2019 to $670.0
million in the first quarter of 2020.
Interest expense for the first quarter of 2020 decreased $56,000
(9.6%) to $527,000 compared to $583,000 for the first quarter of
2019. The decrease in interest expense is related to a
reduction in some higher rate time deposits. As these high
rate time deposits matured they exited the Company and were
replaced by lower cost checking and money market accounts.
Average time deposits decreased $16.8 million (19.2%) from
$87.6 million during the first quarter of 2019 to $70.8 million
during the first quarter of 2020 and the cost of those funds
decreased from 1.80% to 1.30% during that same time period.
The average cost of funds decreased from 0.60% in the first quarter
of 2019 to 0.54% in the first quarter of 2020. Average
deposits increased $26.4 million (4.5%) from $581.7 million during
the first quarter of 2019 to $608.1 million during the first
quarter of 2020. Average borrowings decreased $2.5 million
(12.8%) from $19.5 million during the first quarter of 2019 to
$17.0 million during the first quarter of 2020.
Noninterest Income and Expense
Noninterest income for the first quarter of 2020 was $452,000,
an increase of $41,000 (10.0%) from $411,000 in the first quarter
of 2019. The increase in noninterest income was predominately
related to an increase in income from service charges on deposits
from $121,000 in 2019 to $155,000 in 2020.
Noninterest expense decreased $44,000 (1.0%) from $4.3 million
for the first quarter of 2019 to $4.2 million in the first quarter
of 2020. The decrease is primarily due to a decrease in other
expenses of $108,000 which includes costs such as insurance,
advertising, director expenses, technology and telephone expenses,
and bank charges. The largest change within the other
expenses category is in advertising and business development.
Advertising and business development decreased $123,000 (63.4%)
from $194,000 in the first quarter of 2019 to $71,000 in the first
quarter of 2020. Much of this decrease is related to the
shelter in place order within our markets reducing the number of
business development opportunities and events. This was
offset by an increase in salaries and benefits of $84,000 (3.0%)
due to regular annual salary adjustments and promotions.
The fully taxable equivalent efficiency ratio for the first
quarter of 2020 decreased to 63.0% from 70.9% for the first quarter
of 2019.
Provision for Income Taxes
Federal and state income taxes for the quarter ended March 31,
2020 increased by $123,000 (32.9%) from $374,000 in the first
quarter of 2019 to $497,000 in the first quarter of 2020. The
higher provision for taxes in 2020 compared to 2019 primarily
resulted from a lower level of tax benefits from tax-exempt
investments and equity compensation and an increase in taxable
income in 2020.
Earnings Conference Call
The first quarter earnings conference call will be held
Thursday, April 16, 2020 at 1:30 p.m. Pacific Time. David E.
Ritchie, Jr., President and Chief Executive Officer, and Mitchell
A. Derenzo, Executive Vice President and Chief Financial Officer,
both of American River Bankshares, will lead a live presentation
and answer analysts’ questions. Shareholders, analysts
and other interested parties are invited to join the call by
dialing (888) 517-2464 and entering the Conference ID 6805
366#. A recording of the call will be available approximately
twenty-four hours after the call’s completion on
AmericanRiverBank.com.
About American River Bankshares
American River Bankshares [NASDAQ-GS: AMRB] is the parent
company of American River Bank, a regional bank serving Northern
California since 1983. We provide financial expertise and
exceptional service to complement a full suite of banking products
and services to meet the needs of the communities we serve. For
more information, call (800) 544-0545 or visit our website at
AmericanRiverBank.com.
Use of Non-GAAP Financial Measures
This news release contains certain non-GAAP (Generally Accepted
Accounting Principles) financial measures in addition to results
presented in accordance with GAAP. These measures include
income before provisions for loan and lease losses and income taxes
(referred to as “pretax, pre-provision income”), tangible book
value and taxable equivalent basis. Management has presented
these non-GAAP financial measures in this earnings release because
it believes that they provide useful and comparative information to
assess trends in the Company’s financial position reflected in the
current quarter and year-to-date results and facilitate comparison
of our performance with the performance of our peers.
Income Before Provision for Loan and Lease Losses and
Income Taxes (non-GAAP financial measures)
Income before provision for loan and lease losses and income
taxes (pretax, pre-provision income) adds back both the provision
for loan and lease losses and the provision for income taxes to net
income. The Company believes the income before deducting the
provisions for loan and lease losses and income taxes facilitates
the comparison of results for ongoing business operations.
The Company’s management internally assesses its performance based,
in part, on these non-GAAP financial measures.
Net Interest Margin and Efficiency Ratio (non-GAAP
financial measures)
In accordance with industry standards, certain designated net
interest income amounts are presented on a taxable equivalent
basis, including the calculation of net interest margin and the
efficiency ratio. The Company believes the presentation of
net interest margin on a taxable equivalent basis using a 21%
effective tax rate for 2019 and 2020 allows for comparability of
net interest margin with industry peers by eliminating the effect
of the differences in portfolios attributable to the proportion
represented by both taxable and tax-exempt loans and
investments. The efficiency ratio is a measure of a banking
company’s overhead as a percentage of its revenue. The
Company derives this ratio by dividing total noninterest expense by
the sum of the taxable equivalent net interest income and the total
noninterest income.
Tangible Equity (non-GAAP financial
measures)
Tangible common stockholders' equity (tangible book value)
excludes goodwill and other intangible assets. The Company
believes the exclusion of goodwill and other intangible assets to
create “tangible equity” facilitates the comparison of results for
ongoing business operations. The Company’s management
internally assesses its performance based, in part, on these
non-GAAP financial measures.
Forward-Looking Statements
Certain statements contained herein are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 and
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 that involve risks and
uncertainties. Actual results may differ materially from the
results in these forward-looking statements. Factors that
might cause such a difference include, among other matters, changes
in interest rates, economic conditions, governmental regulation and
legislation, credit quality, and competition affecting the
Company’s businesses generally; the risk of natural disasters and
future catastrophic events including terrorist related incidents;
and other factors discussed in the Company’s Annual Report on Form
10-K for the year ended December 31, 2019, and in subsequent
reports filed on Form 10-Q and Form 8-K. The Company does not
undertake any obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information,
future events or otherwise, except as required by law.
American River Bankshares |
Condensed Consolidated Balance Sheets
(Unaudited) |
(Dollars in thousands) |
|
|
|
|
|
|
|
March 31 |
December 31 |
March 31 |
ASSETS |
2020 |
2019 |
2019 |
Cash and due from banks |
$ |
15,272 |
|
$ |
15,258 |
|
$ |
16,610 |
|
Federal funds sold |
|
0 |
|
|
0 |
|
|
0 |
|
Interest-bearing deposits in
banks |
|
11,400 |
|
|
2,552 |
|
|
2,835 |
|
Investment securities |
|
255,864 |
|
|
262,213 |
|
|
286,879 |
|
Loans & leases: |
|
|
|
|
|
|
Real estate |
|
318,380 |
|
|
323,771 |
|
|
285,950 |
|
Commercial |
|
42,887 |
|
|
43,019 |
|
|
29,827 |
|
Other |
|
33,071 |
|
|
32,871 |
|
|
25,256 |
|
Deferred loan and lease origination fees, net |
|
(657 |
) |
|
(721 |
) |
|
(449 |
) |
Allowance for loan and lease losses |
|
(5,637 |
) |
|
(5,138 |
) |
|
(4,577 |
) |
Loans and leases,
net |
|
388,044 |
|
|
393,802 |
|
|
336,007 |
|
Bank premises and equipment,
net |
|
996 |
|
|
1,191 |
|
|
1,151 |
|
Goodwill and intangible
assets |
|
16,321 |
|
|
16,321 |
|
|
16,321 |
|
Investment in Federal Home
Loan Bank Stock |
|
4,259 |
|
|
4,259 |
|
|
3,932 |
|
Other real estate owned,
net |
|
846 |
|
|
846 |
|
|
957 |
|
Accrued interest receivable
and other assets |
|
23,051 |
|
|
23,911 |
|
|
24,676 |
|
|
$ |
716,053 |
|
$ |
720,353 |
|
$ |
689,368 |
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Noninterest-bearing
deposits |
$ |
229,793 |
|
$ |
227,055 |
|
$ |
213,012 |
|
Interest checking |
|
67,444 |
|
|
69,834 |
|
|
66,148 |
|
Money market |
|
162,184 |
|
|
158,319 |
|
|
132,966 |
|
Savings |
|
72,800 |
|
|
75,820 |
|
|
72,576 |
|
Time deposits |
|
70,915 |
|
|
73,809 |
|
|
87,677 |
|
Total deposits |
|
603,136 |
|
|
604,837 |
|
|
572,379 |
|
Short-term borrowings |
|
5,000 |
|
|
9,000 |
|
|
19,000 |
|
Long-term borrowings |
|
10,500 |
|
|
10,500 |
|
|
10,500 |
|
Accrued interest and other
liabilities |
|
10,563 |
|
|
13,107 |
|
|
9,913 |
|
Total liabilities |
|
629,199 |
|
|
637,444 |
|
|
611,792 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Common stock |
|
30,634 |
|
|
30,536 |
|
|
30,281 |
|
Retained earnings |
|
51,600 |
|
|
50,581 |
|
|
47,347 |
|
Accumulated other
comprehensive income (loss) |
|
4,620 |
|
|
1,792 |
|
|
(52 |
) |
Total shareholders' equity |
|
86,854 |
|
|
82,909 |
|
|
77,576 |
|
|
$ |
716,053 |
|
$ |
720,353 |
|
$ |
689,368 |
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
Nonperforming loans and leases
to total loans and leases |
|
0.00% |
|
|
0.00% |
|
|
0.01% |
|
Net (recoveries) chargeoffs to
average loans and leases (annualized |
|
|
|
|
|
|
at March 31, 2019 and
2020) |
|
0.00% |
|
|
-0.02% |
|
|
-0.01% |
|
Allowance for loan and lease
losses to total loans and leases |
|
1.43% |
|
|
1.29% |
|
|
1.34% |
|
|
|
|
|
|
|
|
American River Bank
Capital Ratios: |
|
|
|
|
|
|
Leverage Capital Ratio |
|
9.50% |
|
|
9.26% |
|
|
9.20% |
|
Common Equity Tier 1
Risk-Based Capital |
|
15.47% |
|
|
14.93% |
|
|
15.95% |
|
Tier 1 Risk-Based Capital
Ratio |
|
15.47% |
|
|
14.93% |
|
|
15.95% |
|
Total Risk-Based Capital
Ratio |
|
16.72% |
|
|
16.10% |
|
|
17.13% |
|
|
|
|
|
|
|
|
American River
Bankshares Capital Ratios: |
|
|
|
|
|
|
Leverage Capital Ratio |
|
9.40% |
|
|
9.16% |
|
|
9.13% |
|
Tier 1 Risk-Based Capital
Ratio |
|
15.31% |
|
|
14.77% |
|
|
15.83% |
|
Total Risk-Based Capital
Ratio |
|
16.56% |
|
|
15.94% |
|
|
17.01% |
|
|
|
|
|
|
|
|
Nonperforming loans |
|
- |
|
|
- |
|
|
25 |
|
Nonperforming assets |
|
846 |
|
|
1,363 |
|
|
982 |
|
|
|
|
|
|
|
|
American River Bankshares |
Condensed Consolidated Statements of Income
(Unaudited) |
(Dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
First |
First |
|
|
|
Quarter |
Quarter |
% |
|
|
2020 |
2019 |
Change |
|
Interest income |
$ |
6,715 |
|
$ |
6,132 |
|
9.5 |
|
% |
Interest expense |
|
527 |
|
|
583 |
|
(9.6 |
) |
% |
Net interest income |
|
6,188 |
|
|
5,549 |
|
11.5 |
|
% |
Provision for loan and lease
losses |
|
495 |
|
|
180 |
|
- |
|
% |
Noninterest income: |
|
|
|
|
|
|
Service charges on deposit accounts |
|
155 |
|
|
121 |
|
28.1 |
|
% |
Gain on sale of securities |
|
38 |
|
|
36 |
|
5.6 |
|
% |
Other noninterest income |
|
259 |
|
|
254 |
|
2.0 |
|
% |
Total noninterest income |
|
452 |
|
|
411 |
|
10.0 |
|
% |
Noninterest expense: |
|
|
|
|
|
|
Salaries and employee benefits |
|
2,865 |
|
|
2,781 |
|
3.0 |
|
% |
Occupancy |
|
256 |
|
|
257 |
|
(0.4 |
) |
% |
Furniture and equipment |
|
143 |
|
|
140 |
|
2.1 |
|
% |
Federal Deposit Insurance Corporation assessments |
|
27 |
|
|
50 |
|
(46.0 |
) |
% |
Expenses related to other real estate owned |
|
5 |
|
|
4 |
|
25.0 |
|
% |
Other expense |
|
920 |
|
|
1,028 |
|
(10.5 |
) |
% |
Total noninterest expense |
|
4,216 |
|
|
4,260 |
|
(1.0 |
) |
% |
Income before provision for
income taxes |
|
1,929 |
|
|
1,520 |
|
26.9 |
|
% |
Provision for income
taxes |
|
497 |
|
|
374 |
|
32.9 |
|
% |
Net income |
$ |
1,432 |
|
$ |
1,146 |
|
25.0 |
|
% |
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.24 |
|
$ |
0.20 |
|
20.0 |
|
% |
Diluted earnings per
share |
$ |
0.24 |
|
$ |
0.20 |
|
20.0 |
|
% |
|
|
|
|
|
|
|
Net interest margin as a
percentage of |
|
|
|
|
|
|
average earning assets |
|
3.75% |
|
|
3.59% |
|
|
|
|
|
|
|
|
|
|
Average diluted shares
outstanding |
|
5,883,576 |
|
|
5,857,627 |
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
Return on average assets |
|
0.80% |
|
|
0.68% |
|
|
|
Return on average equity |
|
6.77% |
|
|
6.17% |
|
|
|
Return on average tangible equity |
|
8.38% |
|
|
7.88% |
|
|
|
Efficiency ratio (fully taxable equivalent) |
|
62.96% |
|
|
70.91% |
|
|
|
|
|
|
|
|
|
|
American River Bankshares |
|
|
Condensed Consolidated Statements of Income
(Unaudited) |
|
|
(Dollars in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
|
First |
Fourth |
Third |
Second |
First |
|
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|
|
2020 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
Interest income |
$ |
6,715 |
|
$ |
6,707 |
|
$ |
6,555 |
|
$ |
6,276 |
|
$ |
6,132 |
|
Interest expense |
|
527 |
|
|
603 |
|
|
627 |
|
|
648 |
|
|
583 |
|
Net interest income |
|
6,188 |
|
|
6,104 |
|
|
5,928 |
|
|
5,628 |
|
|
5,549 |
|
Provision for loan and lease
losses |
|
495 |
|
|
180 |
|
|
120 |
|
|
180 |
|
|
180 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
155 |
|
|
149 |
|
|
149 |
|
|
139 |
|
|
121 |
|
Gain on sale of securities |
|
38 |
|
|
41 |
|
|
9 |
|
|
29 |
|
|
36 |
|
Other noninterest income |
|
259 |
|
|
249 |
|
|
259 |
|
|
253 |
|
|
254 |
|
Total noninterest income |
|
452 |
|
|
439 |
|
|
417 |
|
|
421 |
|
|
411 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
2,865 |
|
|
2,893 |
|
|
2,898 |
|
|
2,744 |
|
|
2,781 |
|
Occupancy |
|
256 |
|
|
255 |
|
|
256 |
|
|
255 |
|
|
257 |
|
Furniture and equipment |
|
143 |
|
|
142 |
|
|
120 |
|
|
140 |
|
|
140 |
|
Federal Deposit Insurance Corporation assessments |
|
27 |
|
|
- |
|
|
(47 |
) |
|
45 |
|
|
50 |
|
Expenses related to other real estate owned |
|
5 |
|
|
119 |
|
|
7 |
|
|
4 |
|
|
4 |
|
Other expense |
|
920 |
|
|
936 |
|
|
859 |
|
|
960 |
|
|
1,028 |
|
Total noninterest expense |
|
4,216 |
|
|
4,345 |
|
|
4,093 |
|
|
4,148 |
|
|
4,260 |
|
Income before provision for
income taxes |
|
1,929 |
|
|
2,018 |
|
|
2,132 |
|
|
1,721 |
|
|
1,520 |
|
Provision for income
taxes |
|
497 |
|
|
511 |
|
|
561 |
|
|
445 |
|
|
374 |
|
Net income |
$ |
1,432 |
|
$ |
1,507 |
|
$ |
1,571 |
|
$ |
1,276 |
|
$ |
1,146 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.24 |
|
$ |
0.26 |
|
$ |
0.27 |
|
$ |
0.22 |
|
$ |
0.20 |
|
Diluted earnings per
share |
$ |
0.24 |
|
$ |
0.26 |
|
$ |
0.27 |
|
$ |
0.22 |
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin as a
percentage of |
|
|
|
|
|
|
|
|
|
|
average earning assets |
|
3.75% |
|
|
3.63% |
|
|
3.62% |
|
|
3.57% |
|
|
3.59% |
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares
outstanding |
|
5,883,576 |
|
|
5,881,901 |
|
|
5,870,916 |
|
|
5,862,416 |
|
|
5,857,627 |
|
Shares outstanding-end of
period |
|
5,918,375 |
|
|
5,898,878 |
|
|
5,903,228 |
|
|
5,903,228 |
|
|
5,887,962 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.80% |
|
|
0.82% |
|
|
0.88% |
|
|
0.74% |
|
|
0.68% |
|
Return on average equity |
|
6.77% |
|
|
7.22% |
|
|
7.65% |
|
|
6.53% |
|
|
6.17% |
|
Return on average tangible equity |
|
8.38% |
|
|
8.99% |
|
|
9.57% |
|
|
8.25% |
|
|
7.88% |
|
Efficiency ratio (fully taxable equivalent) |
|
62.96% |
|
|
65.74% |
|
|
64.01% |
|
|
68.00% |
|
|
70.91% |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
table sets forth a reconciliation of pretax, pre-provision income
by adding back the provisions for both loan and lease |
losses and income taxes to net
income. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First |
Fourth |
Third |
Second |
First |
|
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|
2020 |
2019 |
2019 |
2019 |
2019 |
Reported net income |
$ |
1,432 |
|
$ |
1,507 |
|
$ |
1,571 |
|
$ |
1,276 |
|
$ |
1,146 |
|
Provision for loan and lease losses |
|
495 |
|
|
180 |
|
|
120 |
|
|
180 |
|
|
180 |
|
Provision for income
taxes |
|
497 |
|
|
511 |
|
|
561 |
|
|
445 |
|
|
374 |
|
Pretax, pre-provision income |
$ |
2,424 |
|
$ |
2,198 |
|
$ |
2,252 |
|
$ |
1,901 |
|
$ |
1,700 |
|
|
|
|
|
|
|
|
|
|
|
|
American River Bankshares |
Analysis of Net Interest Margin on Earning Assets
(Unaudited) |
(Taxable Equivalent Basis) |
(Dollars in
thousands) |
Three months ended March 31, |
|
2020 |
|
|
|
2019 |
|
ASSETS |
Avg Balance |
Interest |
Avg Yield |
|
Avg Balance |
Interest |
Avg Yield |
Taxable loans and leases |
$ |
372,826 |
|
$ |
4,675 |
5.04 |
% |
|
$ |
312,588 |
|
$ |
3,818 |
4.95 |
% |
Tax-exempt loans and leases |
|
23,496 |
|
|
278 |
4.76 |
% |
|
|
15,982 |
|
|
178 |
4.52 |
% |
Taxable investment
securities |
|
259,592 |
|
|
1,739 |
2.69 |
% |
|
|
283,006 |
|
|
2,024 |
2.90 |
% |
Tax-exempt investment
securities |
|
5,445 |
|
|
45 |
3.32 |
% |
|
|
14,260 |
|
|
111 |
3.16 |
% |
Federal funds |
|
- |
|
|
- |
N/A |
|
|
|
700 |
|
|
5 |
2.90 |
% |
Interest-bearing deposits in
banks |
|
8,615 |
|
|
34 |
1.59 |
% |
|
|
6,459 |
|
|
44 |
2.76 |
% |
Total earning assets |
|
669,974 |
|
|
6,771 |
4.06 |
% |
|
|
632,995 |
|
|
6,180 |
3.96 |
% |
Cash & due from banks |
|
16,008 |
|
|
|
|
|
16,176 |
|
|
|
Other assets |
|
40,675 |
|
|
|
|
|
41,411 |
|
|
|
Allowance for loan & lease
losses |
|
(5,218 |
) |
|
|
|
|
(4,420 |
) |
|
|
|
$ |
721,439 |
|
|
|
|
$ |
686,162 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Interest checking and money
market |
$ |
230,222 |
|
$ |
204 |
0.36 |
% |
|
$ |
211,003 |
|
$ |
94 |
0.18 |
% |
Savings |
|
74,530 |
|
|
7 |
0.04 |
% |
|
|
73,602 |
|
|
7 |
0.04 |
% |
Time deposits |
|
70,787 |
|
|
229 |
1.30 |
% |
|
|
87,636 |
|
|
388 |
1.80 |
% |
Other borrowings |
|
16,978 |
|
|
87 |
2.06 |
% |
|
|
19,533 |
|
|
94 |
1.95 |
% |
Total interest bearing liabilities |
|
392,517 |
|
|
527 |
0.54 |
% |
|
|
391,774 |
|
|
583 |
0.60 |
% |
Noninterest bearing demand
deposits |
|
232,562 |
|
|
|
|
|
209,456 |
|
|
|
Other liabilities |
|
11,282 |
|
|
|
|
|
9,628 |
|
|
|
Total liabilities |
|
636,361 |
|
|
|
|
|
610,858 |
|
|
|
Shareholders' equity |
|
85,078 |
|
|
|
|
|
75,304 |
|
|
|
|
$ |
721,439 |
|
|
|
|
$ |
686,162 |
|
|
|
Net interest income
& margin |
|
$ |
6,244 |
3.75 |
% |
|
|
$ |
5,597 |
3.59 |
% |
|
|
|
|
|
|
|
|
Investor Contact:Mitchell A. DerenzoExecutive Vice President
and Chief Financial OfficerAmerican River
Bankshares916-231-6723
Media Contact:Jennifer J. HeldVice President, Marketing
DirectorAmerican River Bankshares916-231-6717
Grafico Azioni American River Bankshares (NASDAQ:AMRB)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni American River Bankshares (NASDAQ:AMRB)
Storico
Da Set 2023 a Set 2024