American River Bankshares (NASDAQ-GS: AMRB) today reported net
income of $2.1 million or $0.36 per diluted share for the fourth
quarter of 2020 compared to a net income of $1.5 million or $0.26
per diluted share for the fourth quarter of 2019. For the twelve
months ended December 31, 2020, net income was $7.1 million or
$1.20 per diluted share, compared to $5.5 million or $0.94 per
diluted share for the twelve months ended December 31, 2019.
“Despite the challenges we all faced in 2020, our financial
results bear out the determination of our Company, employees and
clients. Our results were driven by our ability to adjust to the
pandemic and the low interest rate environment,” said David E.
Ritchie, Jr., President and Chief Executive Officer. “This would
include funding nearly 500 Paycheck Protection Program (PPP) loans
for our business clients and working tirelessly to help them with
the forgiveness process while growing both sides of the balance
sheet with a focus on maintaining our strong credit
culture.”
Financial Highlights
- Net loans increased $78.1 million (19.8%) during 2020 and
increased $206,000 (0.0%) during the fourth quarter of 2020. Much
of the growth in 2020 is related to loans funded under the Paycheck
Protection Program (“PPP”). These PPP loans directly benefitted the
businesses and their employees in our local communities. The
Company funded 477 PPP loans totaling $80.2 million in the second
quarter of 2020. At December 31, 2020, PPP loans totaled $54.5
million, net of $1.1 million in deferred processing fees. Excluding
PPP loans, gross loans increased $25.1 million (6.3%) from $399.7
million at December 31, 2019 to $424.7 million at December 31, 2020
and $20.0 million (4.9%) from $404.7 million at September 30,
2020.
- Core deposits increased $144.0 million (27.1%) during 2020 and
increased $15.2 million (2.3%) during the fourth quarter of
2020.
- The fourth quarter 2020 net interest margin was 3.46%, compared
to 3.42% for the third quarter of 2020 and 3.63% for the fourth
quarter of 2019.
- Net interest income was $6.9 million in the fourth quarter of
2020, compared to $6.1 million in the fourth quarter of 2019. For
the twelve months ended December 31, 2020, net interest income was
$26.3 million, compared to $23.2 million for the twelve months
ended December 31, 2019.
- Pretax, pre-provision income increased $698,000 (31.8%) to $2.9
million in the fourth quarter of 2020, compared to $2.2 million in
the fourth quarter of 2019. For the year ended December 31, 2020
pretax, pre-provision income was $11.1 million, an increase of $3.0
million (38.3%) when compared to $8.1 million for the year ended
December 31, 2019.
- The allowance for loan losses was $6.6 million (1.38% of total
loans) at December 31, 2020, compared to $5.1 million (1.29% of
total loans) at December 31, 2019. Excluding the PPP loans and the
related loan fees, which are fully guaranteed by the U.S. Small
Business Administration, the allowance for loan losses to total
loans was 1.56% at December 31, 2020. There were no nonperforming
loans at December 31, 2020 or at December 31, 2019. There were no
loans past due 30 days or more at December 31, 2020, compared to
$75,000 at December 31, 2019.
- Shareholders’ equity was $93.1 million at December 31, 2020
compared to $82.9 million at December 31, 2019. Tangible book value
per share was $12.93 at December 31, 2020 compared to $11.29 at
December 31, 2019. Book value per share was $15.68 per share at
December 31, 2020 compared to $14.06 per share at December 31,
2019.
- The Company continued the quarterly cash dividend by paying a
$0.07 per share cash dividend on November 18, 2020. Cash dividends
per share for the year ended December 31, 2020 were $0.28, compared
to $0.24 for the year ended December 31, 2019.
- The Company continues to maintain strong capital ratios. At
December 31, 2020 the Leverage ratio was 8.3% compared to 9.2% at
December 31, 2019; the Tier 1 Risk-Based Capital ratio was 15.0%
compared to 14.8% at December 31, 2019; and the Total Risk-Based
Capital ratio was 16.2% compared to 15.9% at December 31,
2019.
Northern California Economic Update, December 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. Much of the market data that the Bank has
used in the past has become unavailable since the COVID-19
pandemic. As such, the Bank has not been able to provide recent
information in all areas below, particularly in the real estate
markets. The Bank has decided to continue to provide the most
recent data available despite the fact that it may not be as
current as the Bank would like it to be.
The commercial real estate and employment data below, primarily
covering years 2017 through 2020, reflects mostly positive trends
in the markets served by the Bank. 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. As of November 30, 2020,
unemployment has increased, compared to year over year results, in
all of the market areas of the Bank, due in large part to the
COVID-19 pandemic which has persisted for much of 2020 and
continuing into 2021.
The Bank’s management continues to closely
monitor 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 stabilize as businesses
begin to reopen while the commercial real estate market begins to
recover as the vaccine is distributed in the coming months.
Commercial Real Estate. In the Greater
Sacramento Area, when comparing fourth quarter 2019 to fourth
quarter 2018, commercial real estate vacancies improved, or stayed
the same, in all segments. Office vacancy decreased from 14.0% to
13.8%, retail vacancy remains at 7.8%, and industrial vacancy
decreased from 4.7% to 4.6%. Despite the ongoing pandemic, vacancy
rates have remained stable for retail, decreasing to 13.5% with
industrial vacancy rates increasing to 5.0% for the third quarter
2020.
In Sonoma County, vacancy rates fluctuated within a relatively
narrow range during 2019. Comparing fourth quarter 2019 to fourth
quarter 2018, commercial real estate office vacancy remained at
12.3%, retail vacancy decreased from 4.5% to 4.3%, and industrial
vacancy decreased from 4.8% to 4.7%. As of the third quarter 2020,
industrial vacancy increased to 5.4% and office increased to 14.1%.
Retail numbers were not available for the third quarter of
2020.
In all segments (office, retail, and industrial), the Greater
Sacramento Area reported a positive absorption from December 31,
2018 through December 31, 2019. Some fluctuation occurred in 2019
but 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. For the third quarter of 2020, office had net loss
of 106,000 SF and industrial had absorption of 66,000 SF.
Sonoma County and the City of Santa Rosa reported positive
absorption for the office segment from December 31, 2018 through
most of 2019, with mixed results by the end of the third quarter
2019 as it was negative 45,441 SF in Sonoma County and a positive
44,143 SF in Santa Rosa. For the third quarter 2020, office space
lost 240,000 SF in Sonoma County with Santa Rosa totaling a loss of
194,000 SF of the total 240,000 SF.
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. For third
quarter 2020, industrial absorbed 17,000 SF.
In the Greater Sacramento area, commercial lease rates overall
have remains stable from December 31, 2018 through December 31,
2019 with lease rates as follows--office: $1.99/SF; retail:
$1.41/SF, and industrial: $0.57/SF. The third quarter 2020 reported
lease rates for office increased to $2.05/SF and industrial
decreased to $0.53/SF. Retail lease rates were not available.
As a proxy for Sonoma County, the City of Santa Rosa’s gross
office lease rates as of year-end 2018 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, or thereafter.
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 the Bank’s
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 March 31, 2018 through December 31, 2019. The
highest occupancy rate within this time range was in third quarter
2019 at 96.9%, 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 $1,367 in first quarter 2018 to
$1,495 in fourth quarter 2019. As of the third quarter 2020,
occupancy totaled 97.3% and lease rates increased to $1,563.
The trailing 12-month cap rate from first quarter 2018 through
fourth quarter 2019, ranged with some fluctuation from a high of
5.8% in fourth quarter 2019 to a low of 4.8% in the second quarter
2019. As of first quarter 2020, the 12-month cap rate was 5.3%. As
of second quarter 2020, the 12-month cap rate is no longer
available from the Bank’s normal sources.
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 the nation has had a sudden and tremendous impact
on unemployment. As of November 30, 2020, the national unemployment
rate was 6.7%, a sharp increase compared to February 2020’s 3.9%
unemployment rate but a sharp decrease from a high in April 30,
2020 of 14.7% at the start of the pandemic.
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
increased to 7.9% as of November 2020. The unemployment rate has
improved over the three month period from August 2020 with an
unemployment rate of 11.3% and a high in April 2020 of 16.2% due to
the COVID-19 pandemic. 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 November 2020, the
number of employed Californians decreased since year-end 2019 by
1.3 million jobs.
All three of the Bank’s markets reported positive unemployment
rate results from year-end 2017 to year-end 2019 with an increase
in unemployment in 2020 due to the COVID-19 pandemic. 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.
Based on preliminary results for November 2020, unemployment
rates increased in all areas compared to year-end 2019 as follows:
Sacramento MSA increased from 3.2% to 6.7%, Santa-Rosa-Petaluma MSA
increased from 2.4% to 5.5%, and Amador County from 3.6% to 7.0%.
All three areas of the bank have continue to show improvement in
unemployment since April/May 2020, the beginning of the COVID-19
pandemic, but still higher than year-end 2020.
Job growth was positive in all of the Bank’s 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%. Job growth decreased as of
November 2020 compared to December 2019 due to the COVID-19
pandemic. Compared to the number employed in the Sacramento MSA
decreased by 87,000 jobs or 8.21% from December 2019, Santa Rosa
MSA lost 17,000 jobs or 6.78% compared to December 2019, and Amador
County lost 1,600 jobs or 10.81% compared to December 2019.
However, the November 2020 results reflect an increase in job
growth for all three areas compared to May 2020. The number
employed in the Sacramento MSA increased by 51,000 jobs or 5.5%
from May 2020, Santa Rosa MSA gained 21,000 jobs or 9.85% compared
to May 2020, and Amador County gained 2,000 jobs or 19.1% compared
to May 2020. Although the local economy continues to be impacted by
the COVID-19 pandemic, unemployment for the Bank’s market area
shows improvement as businesses are allowed to reopen.
Balance Sheet Review
American River Bankshares’ assets totaled $869.0 million at
December 31, 2020, compared to $857.9 million at September 30,
2020, and $720.4 million at December 31, 2019.
Net loans totaled $471.9 million at December 31, 2020, compared
to $471.6 million at September 30, 2020, and $393.8 million at
December 31, 2019.
The loan portfolio at December 31, 2020 included: real estate
loans of $350.9 million (73% of the portfolio), Paycheck Protection
Program Loans (“PPP”) of $55.5 million (12% of the portfolio),
commercial loans of $39.0 million (8% of the portfolio) and other
loans, which consist mainly of agriculture and consumer loans of
$34.9 million (7% of the portfolio). The real estate loan portfolio
at December 31, 2020 includes: owner-occupied commercial real
estate loans of $85.8 million (25% of the real estate portfolio),
investor commercial real estate loans of $165.6 million (47% of the
real estate portfolio), multi-family real estate loans of $48.8
million (14% of the real estate portfolio), construction and land
development loans of $18.4 million (5% of the real estate
portfolio) and residential real estate loans of $32.3 million (9%
of the real estate loan portfolio).
Nonperforming assets (“NPAs”) include nonperforming loans and
other assets and other real estate owned (“OREO”). Nonperforming
loans include all such loans 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. NPAs were $800,000 at December 31, 2020
compared to $846,000 at September 30, 2020 and $1.4 million at
December 31, 2019. The NPAs to total assets ratio decreased to
0.09% at December 31, 2020 from 0.10% at the end of September 2020
and from 0.19% at December 31, 2019.
The lone NPA at December 31, 2020 was an OREO property totaling
$800,000 compared to a balance of $846,000 at September 30, 2020
and December 31, 2019. During the fourth quarter of 2020, the book
value of this OREO property was written down by $46,000 to $800,000
from $846,000 due to an updated appraisal. At December 31, 2020,
September 30, 2020 and December 31, 2019 there was no valuation
allowance for OREO properties.
Loans measured individually for impairment were $7.0 million at
the end of December 2020, compared to $7.1 million at September 30,
2020, and $7.6 million at December 31, 2019. Specific reserves of
$112,000 were held on the impaired loans at December 31, 2020,
compared to $128,000 at September 30, 2020 and $142,000 at December
31, 2019. There was $35,000 in provision for loan loss expense in
the fourth quarter of 2020 compared to a $180,000 provision for the
fourth quarter of 2019. The Company had net charge-offs of $23,000
in the fourth quarter of 2020, compared to net recoveries of $4,000
in the fourth quarter of 2019. There was $1.5 million in provision
for loan losses in the twelve months ended December 31, 2020
compared to $660,000 in provision expense in the twelve months
ended December 31, 2019. The additions to the loan loss allowance
in 2020 was due to uncertainty in the economic market during 2020
due to the COVID-19 pandemic. In the twelve months ended December
31, 2020, the Company had net charge-offs of $30,000 compared to
net recoveries of $86,000 in 2019. The Company continues to gather
the latest information available to perform and update its analysis
of potential loan losses. As more information becomes available,
including the economic impact of the COVID-19 pandemic, the Company
will update this analysis, which could lead to further charges to
the ALLL. The Company maintains the allowance for loan 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 losses that management believes is
appropriate at each reporting date.
During the 2020, the Company diligently worked with our
borrowers to provide loan payment relief to those affected by the
COVID-19 pandemic. At June 30, 2020, there were 107 such
arrangements totaling $96,465,000. During the third quarter of
2020, two additional arrangements were made, four loans were paid
in full, and 70 loans began to make their regularly scheduled loan
payments. During the fourth quarter on 2020, all deferred loans
that were scheduled to begin paying during the quarter made
payments with the exception of two-a $25,000 commercial loan that
was charged off and a $3.6 million commercial real estate loan that
was provided an additional deferral. At December 31, 2020, the
Company had two such deferral arrangements remaining totaling $4.9
million, one of which is the $3.6 million loan mentioned above and
the other is a $1.3 million commercial real estate loan that was
granted an interest only six-month deferral and is current to those
temporary terms. There were no loans that were provided deferrals
that were past due 30 days or more as of December 31, 2020.
Investment securities, which excludes $4.2 million in
stock of the Federal Home Loan Bank of San Francisco (“FHLB
Stock”), totaled $307.0 million at December 31, 2020, up $40.1
million (15.0%) from $266.9 million at September 30, 2020 and $44.8
million (17.1%) from $262.2 million at December 31, 2019. At
December 31, 2020, the investment portfolio was comprised of 93%
U.S. Government agencies or U.S. Government-sponsored agencies
(primarily mortgage-backed securities), 5% obligations of states
and political subdivisions, and 2% corporate bonds. The expansion
in the investment portfolio during 2020 was primarily to capitalize
on the increased deposit growth during the same time period.
At December 31, 2020, total deposits were $744.2 million,
compared to $728.8 million at September 30, 2020 and $604.8 million
one year ago. Core deposits increased $15.2 million (2.3%) to
$675.0 million at December 31, 2020 from $659.8 million at
September 30, 2020 and increased $144.0 million (27.1%) from $531.0
million at December 31, 2019. The Company considers all deposits
except time deposits as core deposits.
At December 31, 2020, noninterest-bearing demand deposits
accounted for 44% of total deposits, interest-bearing demand
accounts were 11%, savings deposits were 12%, money market balances
accounted for 24% and time certificates were 9% of total deposits.
At December 31, 2019, noninterest-bearing demand deposits accounted
for 38% of total deposits, interest-bearing demand accounts were
12%, savings deposits were 12%, money market balances accounted for
26% and time certificates were 12% of total deposits.
Shareholders’ equity increased $1.4 million (1.5%) to $93.1
million at December 31, 2020 compared to $91.7 million at September
30, 2020 and $10.2 million (12.3%) from $82.9 million at December
31, 2019. The increase in equity from December 31, 2019 was due to
a $4.4 million increase in accumulated other comprehensive income
related to an increase in the unrealized gain on securities, a $5.4
million increase in Retained Earnings due to the net income for the
year ($7.1 million) less cash dividends declared ($1.7 million),
plus a $0.4 million increase in common stock from equity
compensation.
Net Interest Income
The net interest income during the fourth quarter 2020 increased
$786,000 (12.9%) to $6.9 million from $6.1 million during the
fourth quarter of 2019 and for the twelve months ended December 31,
2020, net interest income increased $3.1 million (13.4%) to $26.3
million from $23.2 million during the twelve months ended December
31, 2019. The net interest margin as a percentage of average
earning assets was 3.46% in the fourth quarter of 2020, compared to
3.42% in the third quarter of 2020 and 3.63% in the fourth quarter
of 2019. For the twelve months ended December 31, 2020, the net
interest margin was 3.52% compared to 3.60% for the twelve months
ended December 31, 2019. Interest income for the fourth quarter of
2020 increased $448,000 (6.7%) to $7.2 million from $6.7 million in
the fourth quarter of 2019 and for the twelve months ended December
31, 2020, interest income increased $2.2 million (8.7%) to $27.9
million from $25.7 million for the twelve months ended December 31,
2019.
The average tax equivalent yield on earning assets decreased
from 3.98% in the fourth quarter of 2019 to 3.59% for the fourth
quarter of 2020 and for the twelve months ended December 31, 2020
decreased to 3.73% from 3.98% for the twelve months ended December
31, 2019. Much of the decrease in yields for both the three- and
twelve-month period comparisons can be attributed to new loans and
investment securities funded in an overall lower interest rate
environment and a large increase in cash held in interest-bearing
deposits in banks during this low rate environment. The average
balance of interest-bearing deposits in banks increased $35.4
million (294.9%) from $12.0 million to $47.4 million for the fourth
quarter of 2020, while the yield decreased from 1.65% to 0.13%
during that same time period. Interest-bearing deposits in banks
increased $30.7 million (311.7%) from $9.8 million to $40.5 million
for the twelve months of 2020 while the yield decreased from 2.04%
to 0.22%.
The average balance of earning assets increased $125.8 million
(18.7%) from $674.4 million in the fourth quarter of 2019 to $800.2
million in the fourth quarter of 2020 and for the twelve months
ended December 31, 2020, increased $104.1 million (16.0%) to $754.7
million from $650.6 million for the twelve months ended December
31, 2019.
Interest expense for the fourth quarter of 2020 decreased
$338,000 (56.1%) to $265,000 from $603,000 for the fourth quarter
of 2019 and for the twelve months ended December 31, 2020 decreased
$879,000 (35.7%) to $1.6 million from $2.5 million for the twelve
months ended December 31, 2019. The decrease in interest expense is
related to a reduction in some higher rate time deposits. As these
time deposits matured, they renewed at lower market rates or they
exited the Company and were replaced by lower cost checking and
money market accounts. Average time deposits decreased $10.8
million (13.5%) from $80.0 million during the fourth quarter of
2019 to $69.2 million during the fourth quarter of 2020 and the
cost of those funds decreased from 1.58% to 0.57% during that same
time period. The average cost of funds decreased from 0.60% in the
fourth quarter of 2019 to 0.23% in the fourth quarter of 2020.
Average interest-bearing deposits increased $60.9 million (15.4%)
from $396.2 million during the fourth quarter of 2019 to $457.0
million during the fourth quarter of 2020.
Noninterest Income and Expense
Noninterest income for the fourth quarter of 2020 was $364,000,
a decrease of $75,000 (17.1%) from $439,000 in the fourth quarter
of 2019 and for the twelve months ended December 31, 2020 was $1.5
million, a decrease of $162,000 (9.6%) compared to $1.7 million for
the twelve months ended December 31, 2019. For both periods, the
decrease in noninterest income was predominately related to a
decrease in gain on sale of securities from a gain of $41,000 in
the fourth quarter of 2019 to no gain in the fourth quarter of 2020
and from $115,000 in the twelve months of 2019 to $38,000 in 2020.
Service charges also decreased from $149,000 in the fourth quarter
of 2019 to $119,000 in 2020 and from $558,000 in the twelve months
of 2019 to $500,000 for the same period in 2020. The decrease in
2020 is largely due to lower service charges being assessed as the
higher average deposit balances resulting from PPP loan fundings
and other governmental programs were used to offset these fees.
Noninterest expense increased $13,000 (0.3%) to $4.4 million for
the fourth quarter of 2020 from $4.3 million in the fourth quarter
of 2019, which included an increase in FDIC insurance assessments
from zero expense in the fourth quarter of 2019 to an expense of
$69,000 in the fourth quarter of 2020 due to the receipt of the
FDIC’s Small Bank Assessment Credits in the fourth quarter of 2019.
Noninterest expense decreased $133,000 (0.8%) from $16.8 million
for the twelve months of 2019 to $16.7 million for the same period
in 2020. The decrease is primarily due to a decrease in
salaries and employee benefits of $114,000 (1.0%) due to an
increase in deferral of direct loan costs, which reduced salary
expense. Each PPP loan that was recorded had an associated cost.
The total cost for all of the PPP loans funded during 2020 was
$332,000. The decrease in noninterest expense is also due to a
decrease in other expenses of $149,000 (3.9%) to $3.6 million,
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 $232,000 (46.7%) from $497,000 in 2019 to $265,000 in
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. These decreases in 2020 were
partially offset by an increase of $159,000 (331.3%) in FDIC
insurance assessments from $48,000 in 2019 to $207,000 in 2020. The
assessment credit mentioned above was substantially utilized in
2019, with minimal credits recognized in 2020.
The fully taxable equivalent efficiency ratio for the fourth
quarter of 2020 decreased to 59.5% from 65.7% in the fourth quarter
of 2019 and for the twelve months ended December 31, 2020,
decreased to 59.5% from 67.1% for the twelve months ended December
31, 2019.
Provision for Income Taxes
Federal and state income taxes for the quarter ended December
31, 2020 increased by $247,000 (48.3%) from $511,000 in the fourth
quarter of 2019 to $758,000 in the fourth quarter of 2020 and
increased $665,000 (35.2%) from $1.9 million in 2019 to $2.6
million in 2020. The higher provision for taxes in 2020 compared to
2019 primarily resulted from a lower level of tax benefits from
equity compensation and an increase in taxable income in 2020.
Earnings Conference Call
The fourth quarter earnings conference call will be held
Thursday, January 28, 2021 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 (800)
697-5978 and entering the Conference ID 7962 419#. 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 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 Losses and Income Taxes
(non-GAAP financial measures)
Income before provision for loan losses and income taxes
(pretax, pre-provision income) adds back both the provision for
loan losses and the provision for income taxes to net income.
The Company believes the income before deducting the provisions for
loan 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.
Investor Contact:Mitchell A. DerenzoExecutive Vice
President andChief Financial OfficerAmerican River
Bankshares916-231-6723
Media Contact:Jennifer J. HeldVice President,
Marketing DirectorAmerican River Bankshares916-231-6717
American
River Bankshares |
|
|
Condensed
Consolidated Balance Sheets (Unaudited) |
|
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
ASSETS |
|
2020 |
|
2020 |
|
2019 |
Cash and due
from banks |
$ |
14,030 |
$ |
16,559 |
$ |
15,258 |
Federal
funds sold |
|
- |
|
- |
|
- |
Interest-bearing deposits in banks |
|
28,479 |
|
56,469 |
|
2,552 |
Investment
securities |
|
306,978 |
|
266,932 |
|
262,213 |
Loans: |
|
|
|
|
|
|
Commercial |
|
38,976 |
|
44,352 |
|
43,019 |
Paycheck Protection Program loans
("PPP") |
|
55,546 |
|
75,804 |
|
- |
Real estate: |
|
|
|
|
|
|
Commercial |
|
251,348 |
|
225,129 |
|
214,604 |
Multi-family |
|
48,760 |
|
42,739 |
|
56,818 |
Construction |
|
18,424 |
|
30,504 |
|
23,169 |
Residential |
|
32,329 |
|
27,720 |
|
29,180 |
Agriculture |
|
6,091 |
|
6,138 |
|
6,479 |
Consumer |
|
28,804 |
|
28,160 |
|
26,392 |
|
|
480,278 |
|
480,546 |
|
399,661 |
Deferred loan origination fees, net
of costs |
|
(1,797) |
|
(2,283) |
|
(721) |
Allowance for loan losses |
|
(6,628) |
|
(6,616) |
|
(5,138) |
Loans, net |
|
471,853 |
|
471,647 |
|
393,802 |
Bank
premises and equipment, net |
|
1,002 |
|
948 |
|
1,191 |
Goodwill and
intangible assets |
|
16,321 |
|
16,321 |
|
16,321 |
Investment
in Federal Home Loan Bank Stock |
|
4,212 |
|
4,212 |
|
4,259 |
Other real
estate owned, net |
|
800 |
|
846 |
|
846 |
Accrued
interest receivable and other assets |
|
25,316 |
|
24,000 |
|
23,911 |
|
$ |
868,991 |
$ |
857,934 |
$ |
720,353 |
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
330,095 |
$ |
295,862 |
$ |
227,055 |
Interest
checking |
|
82,045 |
|
84,390 |
|
69,834 |
Money
market |
|
175,541 |
|
193,647 |
|
158,319 |
Savings |
|
87,315 |
|
85,937 |
|
75,820 |
Time
deposits |
|
69,181 |
|
68,995 |
|
73,809 |
Total deposits |
|
744,177 |
|
728,831 |
|
604,837 |
Short-term
borrowings |
|
7,000 |
|
12,000 |
|
9,000 |
Long-term
borrowings |
|
13,787 |
|
15,460 |
|
10,500 |
Accrued
interest and other liabilities |
|
10,932 |
|
9,959 |
|
13,107 |
Total liabilities |
|
775,896 |
|
766,250 |
|
637,444 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Common
stock |
$ |
30,961 |
$ |
30,855 |
$ |
30,536 |
Retained
earnings |
|
55,978 |
|
54,290 |
|
50,581 |
Accumulated
other comprehensive income |
|
6,156 |
|
6,539 |
|
1,792 |
Total shareholders' equity |
|
93,095 |
|
91,684 |
|
82,909 |
|
$ |
868,991 |
$ |
857,934 |
$ |
720,353 |
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
Nonperforming loans to total loans |
|
0.00% |
|
0.00% |
|
0.00% |
Net
chargeoffs (recoveries) to average loans (annualized) |
|
0.01% |
|
0.02% |
|
-0.02% |
Allowance
for loan losses to total loans |
|
1.39% |
|
1.38% |
|
1.29% |
Allowance
for loan losses to total non PPP loans |
|
1.56% |
|
1.64% |
|
1.29% |
|
|
|
|
|
|
|
American River Bank Capital Ratios: |
|
|
|
|
|
|
Leverage
Capital Ratio |
|
8.37% |
|
8.31% |
|
9.26% |
Common
Equity Tier 1 Risk-Based Capital |
|
15.10% |
|
15.42% |
|
14.93% |
Tier 1
Risk-Based Capital Ratio |
|
15.10% |
|
15.42% |
|
14.93% |
Total
Risk-Based Capital Ratio |
|
16.36% |
|
16.67% |
|
16.10% |
|
|
|
|
|
|
|
American River Bankshares Capital Ratios: |
|
|
|
|
|
|
Leverage
Capital Ratio |
|
8.29% |
|
8.23% |
|
9.16% |
Tier 1
Risk-Based Capital Ratio |
|
14.96% |
|
15.27% |
|
14.77% |
Total
Risk-Based Capital Ratio |
|
16.21% |
|
16.52% |
|
15.94% |
|
|
|
|
|
|
|
Nonperforming loans |
|
- |
|
- |
|
- |
|
Nonperforming assets |
|
800 |
|
846 |
|
1,363 |
|
|
|
|
|
|
|
|
American
River Bankshares |
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income (Unaudited) |
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth |
|
Fourth |
|
|
|
|
For the
Twelve Months |
|
|
|
|
Quarter |
|
Quarter |
% |
|
|
|
Ended
December 31, |
% |
|
|
|
2020 |
|
|
2019 |
|
Change |
|
|
|
2020 |
|
|
2019 |
|
Change |
|
Interest
income |
$ |
7,155 |
|
$ |
6,707 |
|
6.7 |
|
% |
|
$ |
27,900 |
|
$ |
25,670 |
|
8.7 |
|
% |
Interest
expense |
|
265 |
|
|
603 |
|
(56.1 |
) |
% |
|
|
1,582 |
|
|
2,461 |
|
(35.7 |
) |
% |
Net interest
income |
|
6,890 |
|
|
6,104 |
|
12.9 |
|
% |
|
|
26,318 |
|
|
23,209 |
|
13.4 |
|
% |
Provision
for loan losses |
|
35 |
|
|
180 |
|
(80.6 |
) |
% |
|
|
1,520 |
|
|
660 |
|
130.3 |
|
% |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts |
|
119 |
|
|
149 |
|
(20.1 |
) |
% |
|
|
500 |
|
|
558 |
|
(10.4 |
) |
% |
Gain on sale of securities |
|
- |
|
|
41 |
|
(100.0 |
) |
% |
|
|
38 |
|
|
115 |
|
(67.0 |
) |
% |
Other noninterest income |
|
245 |
|
|
249 |
|
(1.6 |
) |
% |
|
|
988 |
|
|
1,015 |
|
(2.7 |
) |
% |
Total
noninterest income |
|
364 |
|
|
439 |
|
(17.1 |
) |
% |
|
|
1,526 |
|
|
1,688 |
|
(9.6 |
) |
% |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
2,937 |
|
|
2,893 |
|
1.5 |
|
% |
|
|
11,202 |
|
|
11,316 |
|
(1.0 |
) |
% |
Occupancy |
|
258 |
|
|
255 |
|
1.2 |
|
% |
|
|
1,031 |
|
|
1,023 |
|
0.8 |
|
% |
Furniture and equipment |
|
136 |
|
|
142 |
|
(4.2 |
) |
% |
|
|
558 |
|
|
542 |
|
3.0 |
|
% |
Federal Deposit Insurance Corporation
assessments |
69 |
|
|
- |
|
N/A |
% |
|
|
207 |
|
|
48 |
|
331.3 |
|
% |
Expenses related to other real estate
owned |
|
54 |
|
|
119 |
|
(54.6 |
) |
% |
|
|
81 |
|
|
134 |
|
(39.6 |
) |
% |
Other expense |
|
904 |
|
|
936 |
|
(3.4 |
) |
% |
|
|
3,634 |
|
|
3,783 |
|
(3.9 |
) |
% |
Total
noninterest expense |
|
4,358 |
|
|
4,345 |
|
0.3 |
|
% |
|
|
16,713 |
|
|
16,846 |
|
(0.8 |
) |
% |
Income
before provision for income taxes |
|
2,861 |
|
|
2,018 |
|
41.8 |
|
% |
|
|
9,611 |
|
|
7,391 |
|
30.0 |
|
% |
Provision
for income taxes |
|
758 |
|
|
511 |
|
48.3 |
|
% |
|
|
2,556 |
|
|
1,891 |
|
35.2 |
|
% |
Net
income |
$ |
2,103 |
|
$ |
1,507 |
|
39.5 |
|
% |
|
$ |
7,055 |
|
$ |
5,500 |
|
28.3 |
|
% |
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.36 |
|
$ |
0.26 |
|
38.5 |
|
% |
|
$ |
1.20 |
|
$ |
0.94 |
|
27.7 |
|
% |
Diluted
earnings per share |
$ |
0.36 |
|
$ |
0.26 |
|
38.5 |
|
% |
|
$ |
1.20 |
|
$ |
0.94 |
|
27.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin as a percentage of |
|
|
|
|
|
|
|
|
|
|
|
|
|
average
earning assets |
|
3.46 |
% |
|
3.63 |
% |
|
|
|
|
3.52 |
% |
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
5,899,490 |
|
|
5,881,901 |
|
|
|
|
|
5,887,828 |
|
|
5,869,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.96 |
% |
|
0.82 |
% |
|
|
|
|
0.86 |
% |
|
0.78 |
% |
|
|
Return on average equity |
|
9.12 |
% |
|
7.22 |
% |
|
|
|
|
7.94 |
% |
|
6.92 |
% |
|
|
Return on average tangible
equity |
|
11.10 |
% |
|
8.99 |
% |
|
|
|
|
9.73 |
% |
|
8.71 |
% |
|
|
Efficiency ratio (fully taxable
equivalent) |
|
59.49 |
% |
|
65.74 |
% |
|
|
|
|
59.54 |
% |
|
67.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 losses and income |
|
|
taxes to net
income. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth |
|
Fourth |
|
|
|
|
For the
Twelve Months |
|
|
|
|
Quarter |
|
Quarter |
|
|
|
|
Ended
December 31, |
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
2020 |
|
|
2019 |
|
|
|
Reported net
income |
$ |
2,103 |
|
$ |
1,507 |
|
|
|
|
$ |
7,055 |
|
$ |
5,500 |
|
|
|
Provision
for loan losses |
|
35 |
|
|
180 |
|
|
|
|
|
1,520 |
|
|
660 |
|
|
|
Provision
for income taxes |
|
758 |
|
|
511 |
|
|
|
|
|
2,556 |
|
|
1,891 |
|
|
|
Pretax,
pre-provision income |
$ |
2,896 |
|
$ |
2,198 |
|
|
|
|
$ |
11,131 |
|
$ |
8,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American
River Bankshares |
|
|
Condensed
Consolidated Statements of Income (Unaudited) |
|
|
(Dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Fourth |
|
Third |
|
Second |
|
First |
|
Fourth |
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
Interest
income |
$ |
7,155 |
|
$ |
7,055 |
|
$ |
6,975 |
|
$ |
6,715 |
|
$ |
6,707 |
|
Interest
expense |
|
265 |
|
|
335 |
|
|
455 |
|
|
527 |
|
|
603 |
|
Net interest
income |
|
6,890 |
|
|
6,720 |
|
|
6,520 |
|
|
6,188 |
|
|
6,104 |
|
Provision
for loan losses |
|
35 |
|
|
445 |
|
|
545 |
|
|
495 |
|
|
180 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts |
|
119 |
|
|
115 |
|
|
111 |
|
|
155 |
|
|
149 |
|
Gain on sale of securities |
|
- |
|
|
- |
|
|
- |
|
|
38 |
|
|
41 |
|
Other noninterest income |
|
245 |
|
|
259 |
|
|
225 |
|
|
259 |
|
|
249 |
|
Total
noninterest income |
|
364 |
|
|
374 |
|
|
336 |
|
|
452 |
|
|
439 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
2,937 |
|
|
2,889 |
|
|
2,511 |
|
|
2,865 |
|
|
2,893 |
|
Occupancy |
|
258 |
|
|
258 |
|
|
259 |
|
|
256 |
|
|
255 |
|
Furniture and equipment |
|
136 |
|
|
140 |
|
|
139 |
|
|
143 |
|
|
142 |
|
Federal Deposit Insurance Corporation
assessments |
|
69 |
|
|
62 |
|
|
49 |
|
|
27 |
|
|
- |
|
Expenses related to other real estate
owned |
|
54 |
|
|
4 |
|
|
18 |
|
|
5 |
|
|
119 |
|
Other expense |
|
904 |
|
|
870 |
|
|
940 |
|
|
920 |
|
|
936 |
|
Total
noninterest expense |
|
4,358 |
|
|
4,223 |
|
|
3,916 |
|
|
4,216 |
|
|
4,345 |
|
Income
before provision for income taxes |
|
2,861 |
|
|
2,426 |
|
|
2,395 |
|
|
1,929 |
|
|
2,018 |
|
Provision
for income taxes |
|
758 |
|
|
647 |
|
|
654 |
|
|
497 |
|
|
511 |
|
Net
income |
$ |
2,103 |
|
$ |
1,779 |
|
$ |
1,741 |
|
$ |
1,432 |
|
$ |
1,507 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
0.36 |
|
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.24 |
|
$ |
0.26 |
|
Diluted
earnings per share |
$ |
0.36 |
|
$ |
0.30 |
|
$ |
0.30 |
|
$ |
0.24 |
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin as a percentage of |
|
|
|
|
|
|
|
|
|
|
average
earning assets |
|
3.46 |
% |
|
3.42 |
% |
|
3.48 |
% |
|
3.75 |
% |
|
3.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
5,899,490 |
|
|
5,886,304 |
|
|
5,879,219 |
|
|
5,883,576 |
|
|
5,881,901 |
|
Shares
outstanding-end of period |
|
5,898,878 |
|
|
5,938,009 |
|
|
5,938,009 |
|
|
5,918,375 |
|
|
5,898,878 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.96 |
% |
|
0.82 |
% |
|
0.85 |
% |
|
0.80 |
% |
|
0.82 |
% |
Return on average equity |
|
9.12 |
% |
|
7.79 |
% |
|
7.98 |
% |
|
6.77 |
% |
|
7.22 |
% |
Return on average tangible
equity |
|
11.10 |
% |
|
9.49 |
% |
|
9.81 |
% |
|
8.38 |
% |
|
8.99 |
% |
Efficiency ratio (fully taxable
equivalent) |
|
59.49 |
% |
|
59.12 |
% |
|
56.71 |
% |
|
62.96 |
% |
|
65.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
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 losses and |
income taxes
to net income. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth |
|
Third |
|
Second |
|
First |
|
Fourth |
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
Reported net
income |
$ |
2,103 |
|
$ |
1,779 |
|
$ |
1,741 |
|
$ |
1,432 |
|
$ |
1,507 |
|
Provision
for loan losses |
|
35 |
|
|
445 |
|
- |
545 |
|
- |
495 |
|
- |
180 |
|
Provision
for income taxes |
|
758 |
|
|
647 |
|
- |
654 |
|
- |
497 |
|
- |
511 |
|
Pretax,
pre-provision income |
$ |
2,896 |
|
$ |
2,871 |
|
$ |
2,940 |
|
$ |
2,424 |
|
$ |
2,198 |
|
|
|
|
|
|
|
|
|
|
|
|
American
River Bankshares |
Analysis of
Net Interest Margin on Earning Assets |
(Taxable Equivalent
Basis) |
(Dollars in
thousands) |
Three months ended December 31, |
|
2020 |
|
|
|
2019 |
|
ASSETS |
Avg
Balance |
Interest |
Avg
Yield |
|
Avg
Balance |
Interest |
Avg
Yield |
Taxable
loans |
$ |
450,164 |
|
$ |
5,392 |
4.77 |
% |
|
$ |
363,910 |
|
$ |
4,505 |
4.91 |
% |
Tax-exempt
loans |
|
19,894 |
|
|
269 |
5.38 |
% |
|
|
23,936 |
|
|
338 |
5.60 |
% |
Taxable
investment securities |
|
277,493 |
|
|
1,507 |
2.16 |
% |
|
|
268,933 |
|
|
1,833 |
2.70 |
% |
Tax-exempt
investment securities |
|
5,278 |
|
|
44 |
3.32 |
% |
|
|
5,643 |
|
|
47 |
3.30 |
% |
Federal
funds sold |
|
0 |
|
|
- |
0.00 |
% |
|
|
- |
|
|
- |
0.00 |
% |
Interest-bearing deposits in banks |
|
47,421 |
|
|
15 |
0.13 |
% |
|
|
12,008 |
|
|
50 |
1.65 |
% |
Total earning assets |
|
800,250 |
|
|
7,227 |
3.59 |
% |
|
|
674,430 |
|
|
6,773 |
3.98 |
% |
Cash &
due from banks |
|
39,707 |
|
|
|
|
|
16,683 |
|
|
|
Other
assets |
|
41,517 |
|
|
|
|
|
40,382 |
|
|
|
Allowance
for loan losses |
|
(6,686 |
) |
|
|
|
|
(5,022 |
) |
|
|
|
$ |
874,788 |
|
|
|
|
$ |
726,473 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Interest
checking and money market |
$ |
278,216 |
|
$ |
93 |
0.13 |
% |
|
$ |
224,050 |
|
$ |
194 |
0.34 |
% |
Savings |
|
87,203 |
|
|
7 |
0.03 |
% |
|
|
76,405 |
|
|
7 |
0.04 |
% |
Time
deposits |
|
69,217 |
|
|
100 |
0.57 |
% |
|
|
79,992 |
|
|
319 |
1.58 |
% |
Other
borrowings |
|
22,396 |
|
|
65 |
1.15 |
% |
|
|
15,728 |
|
|
83 |
2.09 |
% |
Total interest bearing liabilities |
|
457,032 |
|
|
265 |
0.23 |
% |
|
|
396,175 |
|
|
603 |
0.60 |
% |
Noninterest
bearing demand deposits |
|
315,039 |
|
|
|
|
|
237,022 |
|
|
|
Other
liabilities |
|
11,024 |
|
|
|
|
|
10,481 |
|
|
|
Total liabilities |
|
783,095 |
|
|
|
|
|
643,678 |
|
|
|
Shareholders' equity |
|
91,693 |
|
|
|
|
|
82,795 |
|
|
|
|
$ |
874,788 |
|
|
|
|
$ |
726,473 |
|
|
|
Net
interest income & margin |
|
$ |
6,962 |
3.46 |
% |
|
|
$ |
6,170 |
3.63 |
% |
|
|
|
|
|
|
|
|
Twelve months ended December 31, |
|
2020 |
|
|
|
2019 |
|
ASSETS |
Avg
Balance |
Interest |
Avg
Yield |
|
Avg
Balance |
Interest |
Avg
Yield |
Taxable
loans |
$ |
423,405 |
|
$ |
20,322 |
4.80 |
% |
|
$ |
338,775 |
|
$ |
16,834 |
4.97 |
% |
Tax-exempt
loans |
|
23,623 |
|
|
1,140 |
4.83 |
% |
|
|
20,554 |
|
|
942 |
4.58 |
% |
Taxable
investment securities |
|
261,826 |
|
|
6,401 |
2.44 |
% |
|
|
271,779 |
|
|
7,589 |
2.79 |
% |
Tax-exempt
investment securities |
|
5,381 |
|
|
175 |
3.25 |
% |
|
|
9,517 |
|
|
313 |
3.29 |
% |
Federal
funds sold |
|
- |
|
|
- |
- |
|
|
|
173 |
|
|
5 |
2.89 |
% |
Interest-bearing deposits in banks |
|
40,470 |
|
|
88 |
0.22 |
% |
|
|
9,829 |
|
|
201 |
2.04 |
% |
Total earning assets |
|
754,705 |
|
|
28,126 |
3.73 |
% |
|
|
650,627 |
|
|
25,884 |
3.98 |
% |
Cash &
due from banks |
|
29,902 |
|
|
|
|
|
16,440 |
|
|
|
Other
assets |
|
41,960 |
|
|
|
|
|
40,878 |
|
|
|
Allowance
for loan losses |
|
(5,980 |
) |
|
|
|
|
(4,740 |
) |
|
|
|
$ |
820,587 |
|
|
|
|
$ |
703,205 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Interest
checking and money market |
$ |
263,454 |
|
$ |
598 |
0.23 |
% |
|
$ |
212,499 |
|
$ |
563 |
0.26 |
% |
Savings |
|
80,964 |
|
|
28 |
0.03 |
% |
|
|
74,304 |
|
|
28 |
0.04 |
% |
Time
deposits |
|
69,867 |
|
|
648 |
0.93 |
% |
|
|
85,723 |
|
|
1,487 |
1.73 |
% |
Other
borrowings |
|
22,755 |
|
|
308 |
1.35 |
% |
|
|
18,430 |
|
|
383 |
2.08 |
% |
Total interest bearing liabilities |
|
437,040 |
|
|
1,582 |
0.36 |
% |
|
|
390,956 |
|
|
2,461 |
0.63 |
% |
Noninterest
bearing demand deposits |
|
283,578 |
|
|
|
|
|
222,616 |
|
|
|
Other
liabilities |
|
11,127 |
|
|
|
|
|
10,136 |
|
|
|
Total liabilities |
|
731,745 |
|
|
|
|
|
623,708 |
|
|
|
Shareholders' equity |
|
88,842 |
|
|
|
|
|
79,497 |
|
|
|
|
$ |
820,587 |
|
|
|
|
$ |
703,205 |
|
|
|
Net
interest income & margin |
|
$ |
26,544 |
3.52 |
% |
|
|
$ |
23,423 |
3.60 |
% |
|
|
|
|
|
|
|
|
Grafico Azioni American River Bankshares (NASDAQ:AMRB)
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Grafico Azioni American River Bankshares (NASDAQ:AMRB)
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