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CORRECTING and REPLACING American Riviera Bank Reports Record Earnings and Growth

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First paragraph, fourth sentence of release should read: for the same quarter last year (instead of for the same quarter last y).

The updated release reads:

AMERICAN RIVIERA BANK REPORTS RECORD EARNINGS AND GROWTH

American Riviera Bank (OTC Markets: ARBV) announced today record unaudited net income of $7,378,000 ($1.45 per share) for the twelve months ended December 31, 2020. This represents a 15% increase in net income from the $6,393,000 ($1.27 per share) for the same reporting period in the prior year. The Bank reported unaudited net income of $2,379,000 ($0.47 per share) for the fourth quarter ended December 31, 2020. This represents a 51% increase from the $1,572,000 ($0.31 per share) for the same quarter last year.

Jeff DeVine, President and Chief Executive Officer stated, "American Riviera Bank is proud to serve an important role in providing economic stability to the Santa Barbara and San Luis Obispo counties while also reporting strong earnings to our shareholders. During these unprecedented times, the Bank originated tremendous SBA PPP loan volume while still growing non-PPP loans at a double digit pace. Our branch network, drive-ups, ATMs, and robust digital banking capabilities allowed us to deliver uninterrupted depository services despite the COVID-19 pandemic and related stay-at-home orders. I thank our frontline team members, and those working from their office or remotely from home, who quickly adapted and safely helped our clients and communities in 2020."

The Bank has seen a continued decrease in temporary loan payment deferrals for clients negatively affected by the COVID-19 pandemic. Total loans on deferral at December 31, 2020 were approximately $9.6 million, representing 1.5% of total loans excluding SBA PPP, and have fallen from the $18 million reported at September 30, 2020. The deferrals are primarily to borrowers wishing to conserve cash for the economic uncertainty, and who have asked for the principal portion of their payments to be deferred while continuing to pay interest (see detail on Loan Deferrals exhibit). The sizeable increase in loan loss provision in 2020 was primarily driven by qualitative factors in our loan loss methodology related to COVID-19 pandemic economic uncertainty, and not by actual delinquencies or defaults. At December 31, 2020, the Bank had no other real estate owned, no loans 90 days or more past due, and only $3.4 million or 0.53% of total loans excluding PPP on non-accrual status which are well supported by collateral.

The Bank has experienced tremendous growth in new and existing relationships, reporting $972 million in total assets as of December 31, 2020, which represents a $253 million or 35% increase from December 31, 2019. Total loans including SBA PPP increased 26% from December 31, 2019, reaching $726 million at December 31, 2020. Total loans excluding SBA PPP increased $63 million or 11% from December 31, 2019, reaching $642 million at December 31, 2020. Total deposits increased 40% from December 31, 2019, reaching $872 million at December 31, 2020. Non-interest bearing demand deposit accounts increased $116 million or 54% from the same reporting period in the prior year.

As of December 31, 2020, American Riviera Bank was highly liquid with $217 million in cash and available-for-sale securities, and well capitalized with a Tier 1 Capital Ratio of 11% (well above the regulatory guideline of 8% for well capitalized institutions). The tangible book value per share of American Riviera Bank common stock was $15.58 at December 31, 2020.

Company Profile

American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers on the Central Coast of California. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Full-service branches are located in Santa Barbara, Montecito, Goleta, San Luis Obispo and Paso Robles. The Bank provides commercial, residential mortgage, construction and Small Business Administration lending services as well as convenient online and mobile technology. For ten consecutive years the Bank has been recognized for strong financial performance by the Findley Reports, and has received the highest "Super Premier" rating from Findley every year since 2016. As of September 30, 2020, the Bank was rated five stars by BauerFinancial. The Bank was rated "Outstanding" by the Federal Deposit Insurance Corporation in 2020 for its performance under the Community Reinvestment Act.

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, effects of interest rate changes, ability to control costs and expenses, impact of consolidation in the banking industry, financial policies of the US government, and general economic conditions.

Balance Sheets (unaudited)

(dollars in thousands)

Dec 31,

Dec 31,

One Year

2020

2019

Change

Assets

Cash & Due From Banks

$ 129,732

$ 66,472

95

%

Securities

86,942

43,403

100

%

Loans (excluding PPP)

641,603

578,458

11

%

PPP Loans

84,464

-

n/a

Allowance For Loan Losses

(8,467

)

(6,366

)

33

%

Net Loans

717,600

572,092

25

%

Premise & Equipment

6,458

6,878

-6

%

Goodwill and Other Intangibles

5,158

5,337

-3

%

Other Assets

25,733

24,753

4

%

Total Assets

$ 971,623

$ 718,935

35

%

Liabilities & Shareholders' Equity

Demand Deposits

$ 332,995

$ 216,671

54

%

NOW Accounts

128,266

87,906

46

%

Other Interest Bearing Deposits

410,837

316,585

30

%

Total Deposits

872,098

621,162

40

%

Borrowed Funds

5,000

10,000

-50

%

Other Liabilities

9,606

11,630

-17

%

Total Liabilities

886,704

642,792

38

%

Common Stock

55,738

55,034

1

%

Retained Earnings

28,603

21,224

35

%

Other Capital

578

(115

)

n/a

Total Shareholders' Equity

84,919

76,143

12

%

Total Liabilities & Shareholders' Equity

$ 971,623

$ 718,935

35

%

Balance Sheets (unaudited)

(dollars in thousands)

December, 31

September, 30

June, 30

March 31,

December 31,

2020

2020

2020

2020

2019

Assets

Cash & Due From Banks

$ 129,732

$ 105,157

$ 84,722

$ 59,793

$ 66,472

Securities

86,942

73,886

57,099

50,518

43,403

Loans (excluding PPP)

641,603

604,728

615,367

603,631

578,458

PPP Loans

84,464

117,361

116,531

-

-

Allowance For Loan Losses

(8,467

)

(8,040

)

(7,890

)

(7,171

)

(6,366

)

Net Loans

717,600

714,049

724,008

596,460

572,092

Premise & Equipment

6,458

6,634

6,731

6,832

6,878

Goodwill and Other Intangibles

5,158

5,203

5,248

5,293

5,337

Other Assets

25,733

25,287

24,846

24,514

24,753

Total Assets

$ 971,623

$ 930,216

$ 902,654

$ 743,410

$ 718,935

Liabilities & Shareholders' Equity

Demand Deposits

$ 332,995

$ 331,035

$ 328,748

$ 219,331

$ 216,671

NOW Accounts

128,266

110,476

121,741

117,453

87,906

Other Interest Bearing Deposits

410,837

387,293

342,668

308,666

316,585

Total Deposits

872,098

828,804

793,157

645,450

621,162

Borrowed Funds

5,000

10,000

20,000

10,000

10,000

Other Liabilities

9,606

9,311

9,772

10,723

11,630

Total Liabilities

886,704

848,115

822,929

666,173

642,792

Common Stock

55,738

55,571

55,418

55,084

55,034

Retained Earnings

28,603

26,224

23,960

22,395

21,224

Other Capital

578

306

347

(242

)

(115

)

Total Shareholders' Equity

84,919

82,101

79,725

77,237

76,143

Total Liabilities & Shareholders' Equity

$ 971,623

$ 930,216

$ 902,654

$ 743,410

$ 718,935

Statements of Income (unaudited)

(dollars in thousands, except per share data)

Quarter Ended

Twelve Months Ended

Dec 31,

Dec 31,

Dec 31,

Dec 31,

2020

2019

Change

2020

2019

Change

Interest Income

Interest and Fees on Loans

$ 7,589

$ 7,387

3

%

$ 30,715

$ 28,283

9

%

Fees on PPP Loans

1,374

-

n/a

2,324

-

n/a

Net Fair Value Amortization Income

14

62

-77

%

180

442

-59

%

Interest on Securities

274

247

11

%

1,149

1,025

12

%

Interest on Fed Funds

-

-

n/a

-

1

-100

%

Interest on Due From Banks

74

290

-74

%

400

984

-59

%

Total Interest Income

9,325

7,986

17

%

34,768

30,735

13

%

Interest Expense

Interest Expense on Deposits

295

1,085

-73

%

1,991

3,973

-50

%

Interest Expense on Borrowings

-

43

-100

%

123

276

-55

%

Total Interest Expense

295

1,128

-74

%

2,114

4,249

-50

%

Net Interest Income

9,030

6,858

32

%

32,654

26,486

23

%

Provision for Loan Losses

418

205

104

%

2,120

806

163

%

Net Interest Income After Provision

8,612

6,653

29

%

30,534

25,680

19

%

Non-Interest Income

Service Charges, Commissions and Fees

543

566

-4

%

2,117

2,096

1

%

Other Non-Interest Income

251

199

26

%

751

695

8

%

Total Non-Interest Income

794

765

4

%

2,868

2,791

3

%

Non-Interest Expense

Salaries and Employee Benefits

3,847

3,212

20

%

14,398

11,922

21

%

Occupancy and Equipment

722

665

9

%

2,750

2,358

17

%

Other Non-Interest Expense

1,562

1,309

19

%

5,913

5,292

12

%

Total Non-Interest Expense

6,131

5,186

18

%

23,061

19,572

18

%

Net Income Before Provision for Taxes

3,275

2,232

47

%

10,341

8,899

16

%

Provision for Taxes

896

660

36

%

2,963

2,506

18

%

Net Income

$ 2,379

$ 1,572

51

%

$ 7,378

$ 6,393

15

%

Shares (end of period)

5,083,648

5,033,348

1

%

5,083,648

5,033,348

1

%

Earnings Per Share - Basic

$ 0.47

$ 0.31

52

%

$ 1.45

$ 1.27

14

%

Return on Average Assets

0.96

%

0.85

%

13

%

0.86

%

0.97

%

-11

%

Return on Average Equity

11.16

%

8.04

%

39

%

9.20

%

9.01

%

2

%

Net Interest Margin

3.85

%

4.06

%

-5

%

3.97

%

4.24

%

-6

%

Five Quarter Statements of Income (unaudited)

(dollars in thousands)

Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2020

2020

2020

2020

2019

Interest Income

Interest and Fees on Loans

$ 7,589

$ 7,822

$ 7,766

$ 7,537

$ 7,387

Fees on PPP Loans

1,374

559

391

-

-

Net Fair Value Amortization Income

14

5

46

115

62

Interest on Securities

274

306

246

323

247

Interest on Fed Funds

-

-

-

-

-

Interest on Due From Banks

74

67

72

187

290

Total Interest Income

9,325

8,759

8,521

8,162

7,986

Interest Expense

Interest Expense on Deposits

295

333

501

862

1,085

Interest Expense on Borrowings

-

22

48

53

43

Total Interest Expense

295

355

549

915

1,128

Net Interest Income

9,030

8,404

7,972

7,247

6,858

Provision for Loan Losses

418

209

710

783

205

Net Interest Income After Provision

8,612

8,195

7,262

6,464

6,653

Non-Interest Income

Service Charges, Commissions and Fees

543

609

463

502

566

Other Non-Interest Income

251

149

159

193

199

Total Non-Interest Income

794

758

622

695

765

Non-Interest Expense

Salaries and Employee Benefits

3,847

3,604

3,495

3,452

3,212

Occupancy and Equipment

722

677

666

685

665

Other Non-Interest Expense

1,562

1,434

1,534

1,383

1,309

Total Non-Interest Expense

6,131

5,715

5,695

5,520

5,186

Net Income Before Provision for Taxes

3,275

3,238

2,189

1,639

2,232

Provision for Taxes

896

974

624

468

660

Net Income

$ 2,379

$ 2,264

$ 1,565

$ 1,171

$ 1,572

Shares (end of period)

5,083,648

5,070,556

5,069,523

5,047,696

5,033,348

Earnings Per Share - Basic

$ 0.47

$ 0.45

$ 0.31

$ 0.23

$ 0.31

Selected Financial Highlights (unaudited)

(dollars in thousands, except per share data)

At or for the Three Months Ended

December 31,

September 30,

June 30,

March 31,

December 31,

2020

2020

2020

2020

2019

Income and performance ratios:

Net Income

$ 2,379

$ 2,264

$ 1,565

$ 1,171

$ 1,572

Earnings per share - basic

0.47

0.45

0.31

0.23

0.31

Return on average assets

0.96

%

0.98

%

0.76

%

0.67

%

0.85

%

Return on average equity

11.16

%

10.95

%

8.18

%

6.27

%

8.04

%

Net interest margin

3.85

%

3.86

%

3.98

%

4.27

%

4.06

%

Net interest margin (excluding PPP loans)

3.53

%

3.99

%

4.12

%

n/a

n/a

Efficiency ratio (d)

62.65

%

62.64

%

65.96

%

69.18

%

68.49

%

Asset quality:

Allowance for loan and lease losses

$ 8,467

$ 8,040

$ 7,890

$ 7,171

$ 6,366

Nonperforming assets

$ 3,446

$ 12

$ 40

$ 341

$ 284

Allowance for loan and lease losses / total loans and leases

1.17

%

1.11

%

1.08

%

1.19

%

1.10

%

Allowance for loan and lease losses / total loans and leases (excluding PPP loans) (b)

1.32

%

1.33

%

1.28

%

n/a

n/a

Net charge-offs / average loans and leases (annualized)

-0.01

%

0.03

%

-0.01

%

‐0.01%

-0.01

%

Texas ratio (c)

3.91

%

0.01

%

0.05

%

0.43

%

0.37

%

Other ratios:

Tier 1 risk-based capital (a)

11.45

%

11.82

%

11.31

%

11.17

%

11.35

%

Total risk-based capital (a)

12.70

%

13.07

%

12.54

%

12.30

%

12.40

%

Common equity tier 1 risk-based capital (a)

11.45

%

11.82

%

11.31

%

11.17

%

11.35

%

Tier 1 leverage ratio (a)

8.16

%

8.49

%

8.87

%

10.04

%

10.04

%

Equity and share related:

Common equity

$ 84,919

82,101

79,725

77,237

$ 76,143

Book value per share

16.59

16.13

15.66

15.35

15.15

Tangible book value per share

15.58

15.11

14.62

14.30

14.09

Stock closing price per share

16.50

12.10

12.25

12.00

19.80

Number of shares issued and outstanding

5,084

5,071

5,070

5,048

5,033

Notes:

(a) Presented as projected for most recent quarter and actual for the remaining periods.

(b) PPP loans are 100% guaranteed by the Small Business Administration.

(c) The sum of Nonperforming assets and Other Real Estate Owned, divided by the sum of Total Shareholder Equity and Total Allowance for Loan and Lease Losses (less Preferred Stock and Intangible Assets).

(d) Annualized Operating Expense excluding Loan Loss Provisions minus Annualized Extraordinary Expense, divided by Annualized Interest Income including Loan Fees minus Annualized Interest Expense plus Annualized Non-Interest Income minus Annualized Extraordinary Income, expressed as a percentage.

Loan Deferrals

As of December 31, 2020

Principal Only

Principal and Interest

Total Deferred Loans (e)

Percentage of Total Loans excluding PPP

CRE - Retail

$ 8,727,555

$ -

$ 8,727,555

1.36

%

CRE - Special Purpose

$ -

$ -

$ -

0.00

%

CRE - Hospitality

$ -

$ -

$ -

0.00

%

C&I

$ 651,239

$ 236,269

$ 887,508

0.14

%

$ 9,378,794

$ 236,269

$ 9,615,063

1.50

%

Total Loans excluding PPP

$ 641,603,130

Notes:

(e) Ten separate loans are included in total loans on deferral

View source version on businesswire.com: https://www.businesswire.com/news/home/20210128006158/en/

Contacts

American Riviera Bank
www.americanrivierabank.com
805-965-5942
Michelle Martinich