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Edited Transcript of AMRB earnings conference call or presentation 23-Jan-20 9:30pm GMT

Q4 2019 American River Bankshares Earnings Call

Roncho Cordova Jan 31, 2020 (Thomson StreetEvents) -- Edited Transcript of American River Bankshares earnings conference call or presentation Thursday, January 23, 2020 at 9:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* David E. Ritchie

American River Bankshares - President, CEO & Director

* Mitchell A. Derenzo

American River Bankshares - Executive VP & CFO

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Conference Call Participants

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* Kevin William Swanson

Hovde Group, LLC, Research Division - Director & VP

* Timothy Norton Coffey

Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts

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Presentation

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Operator [1]

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Welcome to the fourth quarter 2019 earnings conference call. My name is Cheryl, and I will be your operator for today's call. (Operator Instructions) Please note that this conference call is being recorded.

I will now turn the call over to David Ritchie. Sir, you may begin.

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David E. Ritchie, American River Bankshares - President, CEO & Director [2]

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Thank you, Cheryl. Good afternoon. This is Dave Ritchie, President and CEO of American River Bankshares, the parent company of American River Bank, headquartered in Rancho Cordova, California. This is our fourth quarter update. I'm joined today by with -- by Mitch Derenzo, our Chief Financial Officer, who'll be reporting to you in just a minute.

Please be aware that we -- our earnings were released -- I'm sorry, please be aware of our earnings release, which details our quarterly and year-end results went out at the market open today. And last week, we also announced a quarterly cash dividend payable next month. As we do each quarter, we also have included some economic data in our press release. In general, there's positive trends in our markets, California and the nation as a whole.

So with that, I will turn it over to Mitch Derenzo to give you an in-depth look in our financial results.

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [3]

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Great. Thank you, Dave, and of course, thanks to all of you for listening on the call today. As you recall, I need to remind everyone of our safe harbor disclosures. Certain matters discussed in this presentation may constitute forward-looking statements for the purposes of the federal securities laws and may involve risks and uncertainties. Actual results may differ materially from the results in these forward-looking statements. Factors that might cause such a difference are discussed in our annual report on Form 10-K for the year ended December 31, 2018, and 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. This would include information or future events, except as required by the law. The links to the annual reports for our 2018 10-K, are located on our website, americanriverbank.com.

As with past conference calls, I'm going to highlight some of the key areas from the press release that Dave mentioned was issued this morning. I'll also try to provide some additional details and analysis, and I'll turn it back over to Dave for his final comments, and then we'll open up the lines for questions. Today, American Bankshares reported net income of $1.5 million for the fourth quarter of 2019 compared to $1.1 million for the fourth quarter of 2018, that's a 34% increase. Earnings per share were $0.26 per share for the fourth quarter of 2019, compared to $0.19 per share in the fourth quarter of 2018. That's a 37% increase.

ROA and ROE for the quarter were 82 basis points and 7.22%, respectively, compared to 65 basis points and 6.22, respectively, one year ago. On a year-to-date basis, net income in 2019 was $5.5 million or $0.94 per share. That compares to $4.9 million or $0.83 per share in 2018. On a year-to-date pretax pre-provision basis, net income in 2019 was $8.1 million. That's an increase of $1.4 million or 21.1% over the $6.6 million reported for 2018.

As far as our progress on our playing goes, I think the fourth quarters of both years are a pretty good comparison of how we're doing. In addition, I think the trailing 4 quarters is also useful to view some of our progress. When comparing the fourth quarter of 2019 to the third quarter of 2019, net income was actually lowered by $64,000. But there was some noise. The fourth quarter had the $110,000 OREO write-down and then Q3 had the, of course, the nice FDIC assessment credit of $47,000.

But if you look at the top line net interest income, we've seen that increase from $5.5 million to $5.6 million to $5.9 million and now $6.1 million over the past 4 quarters. Margin is also holding pretty strong as well. That has increased from 3.54% in the fourth quarter of last year, fourth quarter 2018, to 3.63 in the fourth quarter of 2019.

EPS has increased from $0.19 in the fourth quarter of '18 to $0.20 in the first quarter of '19 to $0.22 in the second quarter of '19, to $0.27 per share in the third quarter of '19. And of course, due to the items I just mentioned, it came in at $0.27 -- $0.26 per share in the fourth quarter of 2019. Again, when you compare that to the fourth quarter of 2018, that's a 37% increase.

As I said last quarter, we are excited about the progress -- just mentioned there were those increases, they're nice. But we continue to believe we still have quite a bit of work to do, but we do believe we are headed in the right direction. We continue to add new relationships, we're increasing our deposits, and we're shifting the assets from investments in the higher-yielding loans and that has had a great impact on the net income -- net interest income, which I just referenced a minute ago.

As to the shift from investments to loans, loans were actually up $75 million or 23.6% in 2019. And for the fourth quarter alone, they were up $24 million or 6.5%. Of course, that's helping to increase the daily net interest income, which increased from $60,100 in the fourth quarter of 2018, increased, again, to $61,700 in the first quarter of '19. It was $61,800 in the second quarter of '19, then it went to $64,400 in the third quarter. And finally, in the fourth quarter of 2019, it was $66,300 per day.

The loan growth, however, also requires higher provision. We did add $660,000 to the provision to -- in 2019. That's up from $175,000 in 2018. Some look at the balance sheet here. As far as the assets go. I did mention the loan growth, we were able to accomplish that by increasing the loan commitments and also seeing a slower pace of pay downs, which was exciting.

Fourth quarter loan fundings were $43.4 million. This marks the seventh consecutive quarter of $30 million plus in loan fundings. Year-to-date, loan fundings in 2019 were $149.5 million that compares to $104.5 million in 2018. At December 31, 2019, total unused commitments were about $40 million.

Of that, about $13 million was in commercial. Again, those have the ability to revolve. But the rest of that $27 million is real estate-related and should fund over the next year or so. I mentioned the payoffs, manageable. Yes, there are about $7 million in the fourth quarter of 2019. That's down from roughly $13 million in each of the second and third quarters of '19.

Good news is that we'll be keeping those loans. Obviously, I mentioned negative in the past year, but prepayment fees are down year-over-year. For the fourth quarter of 2019, we were able to collect $74,000 in prepayment penalties that compares to $60,000 in the fourth quarter of 2018. But on a year-to-date basis, 2019 had $231,000 in prepayment penalties, down from $494,000 in 2018.

Our loan growth for the fourth quarter, it was pretty diversified. Largest, obviously, being real estate. That was up $21.2 million, that's a 7% growth. Commercial was also up about $1.9 million, that's 4.7% growth. We did see some growth in consumer. That shows up in the other line item in our balance sheet. I'll get to that in a second here. But the growth in real estate was primarily in CRE, that was up $11.9 million or 5.9%.

And then construction was up $9.5 million. That's about a 70% increase. That growth in construction was in commercial construction. I did mention the consumer, that did grow by $1.1 million to $25.3 million at the end of the year. That consumer growth is in our specialty auto portfolio. We did 49 of those loans during the fourth quarter. The average balance of those was 66.7 -- $66,700. That compares to 69 of those loans in the third quarter of 2019, and those averaged $88,100 per...

Of the $43 million in new loan commitments during the fourth quarter, our average loan rate on those was 4.96%. We also renewed just over $10 million in existing loans during the fourth quarter, and those rates average 6.17%. Credit quality remains sound. We had 0 nonaccrual loans at the end of 2019. We did have [2 -- 72] loans, totaling $75,000 over the past due 30 days plus, but less than 60 days, past due. They were 2 consumer loans. Each of them made payments in early January.

We did have one auto loan that went to nonaccrual during the quarter. It was a Lamborghini that had a book value of $517,000. We subsequently repossessed that. It's no longer a nonaccrual. It's now classified as a nonperforming asset. And that's going to show up in the other asset line item of our balance sheet. We believe the book value there is property sold. The car has been transported to our agent. In fact, it's on the way right now to the dealer, should be there in the next day or 2 to be prepped and sold.

I briefly mentioned a $110,000 write-down on our OREO. We did receive an updated appraisal in the fourth quarter. That's our one OREO property. The value has decreased a bit. So we wrote it down at $110,000 to a net book value now of $846,000. So the nonperforming assets, they are about just under $1.4 million, and those are comprised of OREO and the car. The nonperforming assets -- total assets was just 19 basis points at December 31.

We did add $180,000 provision during the quarter. That's really based on the -- because of the loan growth there. The allowance to loans was 1.29% at the end of December 2019. In comparison, fourth quarter 2018, we added $125,000 to the provision and the allowance to loans was 1.36%. Not much on far as recoveries goes, we had about $4,000 in loan recoveries in the fourth quarter. That compares to charge-offs of $65,000 in the fourth quarter of 2018. On a full year basis, 2019, we had $86,000 in recoveries and 0 charge-offs.

In 2018, we had $282,000 in charge-offs, $21,000 in recoveries for a net $261,000 in charge-offs. Classified equity ratio at the end of 2019 was 2.1%. Classified asset being the $846,000 OREO, the $517,000 auto and then we have one $135,000 commercial real estate loan. That totals -- those 3 is about 1 million -- just under $1.5 million.

Now I'd like to say about the investment portfolio. It's pretty close to what we talked about last quarter. Didn't add a lot. Really letting the proceeds fund our loan growth. The average life of the entire bond portfolio is 4.2 years. The effective duration of the entire portfolio is still -- it's still low at just under 3 years. And then the price change in rates at 300 is 9.6%.

On the funding side of the balance sheet, overall, our deposits did decrease $8.1 million during the fourth quarter. Really, that was due to $12.4 million decreased CD balances. Our non-CD balances actually increased $4.4 million during the quarter. And then for the year, deposits increased $14.2 million. But if you factor in the -- or exclude the change in the CD balances, our deposits actually grew $28.4 million or 5.6%. And really, the CDs that we ran off in the fourth quarter were high-rate CDs. And by running them off, we actually decreased our funding costs. The average cost of funds decreased from 64 basis points in the third quarter of 2019 down 60 basis points in the fourth quarter of 2019. And the overall cost of deposits, that also decreased during the time frame. It was 36 basis points in the third quarter of 2019. That dropped 3 basis points to 33 basis points in the fourth quarter of 2019. On an overall basis for the year, our cost of deposits actually increased. They were 23 basis points in 2018, jumped up to 35 basis points in 2019. But if you exclude the CDS, the cost of our deposits in 2019 was 12 basis points.

At the end of the year 2019, our deposit breakdown, we had 39 -- sorry, we had 38% in noninterest balances, 26% in our money markets, and then interest checking, savings and CDS all had 12% each in those 3 items.

Capital. The earnings was at about the capital this year. That helped our leverage ratio. We ended at 8.9% at the end of 2019. And the -- I'm sorry, we're 8.9% at the end of 2018. We increased to 9.2% at end of 2019. Total risk-based capital actually decreased during that time frame. We were at 17.3% at the end of 2018. That decreased to 15.9% at the end of 2019. And really, that's based on -- we're switching from lower risk-weighted investment securities, taking that and putting it in the higher risk-weighting loans. And then also the growth in the balance sheet. That is one of the reasons why there's decrease in the risk-based capital ratio.

Also on capital, Dave did mention the press release that went out last week, announcing the record and pay dates for the cash dividends that will be paid out next month.

On the income statement, noninterest income, not much there. We did increase $175,000 or roughly 12% from $1.5 million in 2018 to $1.7 million in 2019. The big change there really is in investment sales. We -- in 2018, we had gains of $31,000. In 2019, that increased to $115,000.

On the expense side, noninterest expense actually increased to $16,000 from $4,329,000 in the fourth quarter of '18 to $4,345,000 in the fourth quarter of 2019. As we mentioned in the third quarter, we did have that nice benefit from the FDIC insurance fund being above their target. We did benefit again in the fourth quarter. Although we didn't get a credit, we didn't have an expense in the fourth quarter of 2019. That compares to $44,000 in the fourth quarter of 2018. And assuming the fund doesn't drop below their target, we should be able to see a partial credit again in Q1 of 2020. Meaning that instead of roughly a $45,000 run rate on the expense, it should be close to about half of that in Q1. And then I think we'll probably back on full expense going forward for the rest of the year.

On the expense side, I did mention the $110,000 hit to the OREO, and that was another big item there. On a year-to-date basis, noninterest expense increased $1.3 million. That's about 8.6% from $15.5 million in 2018 to $16.8 million in 2019. Most of that increase was in the salary and benefit areas. That increased $1.1 million, increased from $10.2 million in 2018 to $11.3 million in 2019. And really, that's based upon -- the increase is based upon the new production and lending staff that we hired in 2018. They were here for a full 12 months in 2019. And so had a few salary increases and promotions, and that's going to get you through that 10% increase.

Let's see. But I would say the salary piece has stabilized and it's been consistent in the past few quarters. We did see a slight decrease from third quarter of 2019 for the fourth quarter of 2019. So going forward the -- since we are substantially fully staffed. I think the fluctuations really are going to come in the incentive accrual area, and that's going to relate to production -- to relationship managers if the fundings are large in the quarter. We're going to have a larger incentive accrual there. And that's a good thing.

Let's see, really, on a year-to-date basis, the other big changes were what I've previously mentioned, the OREO expense and then the FDIC did -- the assessment did decrease $154,000 from 2018 to 2019. We did see a little bit of an increase in the other expense line item there, that was up about $300,000 year-over-year. That's going to include increases in professional and bank charges. Professional is up $68,000. The bank charges were up $233,000.

The professional that's going to relate to -- we've actually -- we're using more services from our network providers. They're charging us a little bit more. And then the higher bank charges, really a couple of things there. One, we're maintaining lower average balances in our bank accounts, therefore, higher service charges and also the interest earned on those balances, which we began increasing really during the higher rate environment over the last few years.

So what we did is, in 2019, we started reporting that as actual interest income, and that's going to be reflected in the higher balances in the interest due from banks. And if you look up there, you'll see the interest due from banks that increased about $168,000 from $33,000 in 2018 to just over $200,000 in 2019.

Lastly here, we got to talk a little bit about the taxes. They did increase $174,000 quarter-over-quarter. That's about a 52% increase. They were $337,000 in the fourth quarter of 2018. They were up to $511,000 in the fourth quarter of 2019. And then on a year-to-date basis, they were up 317% -- $317,000. That's at 20.1%. Those increased from $1.6 million in 2018 to $1.9 million in 2019.

The effective tax rate in 2019, that was 25.6%. That's up from 24.3% during 2018. Really, the same story here, why the increase here that I talked about last quarter is lower level of tax benefits from tax-exempt investments. As those things mature, they're being invested into loans. We have less tax investments. And then equity compensation. And then, of course, the increase in taxable income. We're going to pay higher tax rate there. The tax benefits from the equity comp decreased from $166,000 in 2018, down to $34,000 in 2019. And of course, the taxable income, that was up by $917,000, about 14% from $6.5 million in 2018 to $7.4 million in 2019. Thank you.

And I'm going to turn it back over to Dave for some additional comments.

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David E. Ritchie, American River Bankshares - President, CEO & Director [4]

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Thanks, Mitch. That was great. Yes, I mean, I would just follow that up. And I guess, to put it in my words, I would say that I'm particularly excited about the consistent loan growth, coupled with increasing deposits.

We -- the one thing about this company that is proven out over at least my last 2 years is just the service levels that we provide to our clients, and that's giving us opportunities on the loan side as well as increasing our deposits.

I'm pretty optimistic about 2020. We basically have the same relationship management team in place and the same branch managers in place, and they've got a year under their belt that they've worked together. And that's key to us that they work together, and they're doing a good job of that. And if we can make loans and bring in deposits, we do a pretty good job making income on both sides of that equation. So that's pretty good for us.

I would say that again, I mean, we're starting to see pretax and net income, ROE, ROA, EPS are all going in the right direction, which was kind of anticipated. I mean, it took us a little while to get the right people in place, but those things are going in the right direction. I don't anticipate any extraordinary expenses for 2020. Obviously, we lose people, we will take a look at the job and the roles and replace where need be. But I don't think either Mitch or I see anything on the horizon that's going to radically change the expense profile of the company.

So hopefully, with the continued growth, we're focused on the efficiency ratio as well, and that would hopefully bring that down with better production on the revenue side, which I expect.

And as far as the commercial banking team, going into the year, they've got a good pipeline, which is, I think we've shown over the last 6 quarters that we've had a pretty consistent growth in the loan side, at least from a commitment standpoint.

And it's really impressive is we're -- now that we've had this going for about 18 months, if you will, we're starting to get some pretty good validation when clients are coming back to us and giving us more opportunities to do more financing for them or give us more deposits. So that's proving out.

And again, our deposit franchise is largely because of our retail team, which does an outstanding job with their clients, and they continue to bring in deposits in a very competitive environment. I think it's the handholding and just the amazing service. So financial reviews of the clients every year and just being present in front of them. And so I think we feel we want to be a top performer. We've said that for a while. And now we're starting to -- we're really making real revenue and real income. It's not based on onetime events. It's based on consistency.

So I'm pretty excited about 2020 and where we're going. We don't have any credit problems per se. We've very -- and the stuff that we're doing is well thought out. I don't think we're overly chasing stuff that we shouldn't be doing. The culture is good. We're following our new credit policy by -- pretty closely. And so I think we're in pretty good shape from that standpoint.

So with that, I was going to say, Cheryl, maybe you can open up the line for some questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) And our first question comes from Tim Coffey from Janney Montgomery.

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Timothy Norton Coffey, Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts [2]

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I had a question about the incentive accruals. Were they elevated these last 2 quarters? Or were they -- they're somewhere in the run rate?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [3]

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The fourth quarter was elevated, because we did $43 million in loans. We did mid-30s in the third quarter. So it's really based on the loan production. So third quarter was -- second and third quarter were probably pretty close, because we're roughly $30 million -- mid-30s there, but the fourth quarter was elevated, yes.

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Timothy Norton Coffey, Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts [4]

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Okay. Okay. And then, Mitch, I missed it on what you were talking about in terms of the FDIC credits for this next quarter.

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [5]

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So going forward, it looks like we probably should -- we've been running about -- our actual expense when we had the expense of about $45,000, and we're using our credits. We're not actually expensing that.

I think in the first quarter of 2019, we'll probably get about a 50% haircut on that. So half of that expense in this quarter. And then going forward, we should be right out of the credit, so normal expense going forward in the last 3 quarters of this year.

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Timothy Norton Coffey, Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts [6]

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Okay. And then looking at the loan growth you guys had in the quarter, obviously, very good. I'm wondering, was there any pull-through from 3Q that might have inflated that number a little bit?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [7]

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No. I mean, we've got some construction of funding, but we had about the same amount of unfunded commitments at the end of the third quarter as we do in the fourth quarter. So we might have funded some of that from the third quarter, but we replaced it in the fourth quarter.

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Timothy Norton Coffey, Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts [8]

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Yes. Okay. And then, Mitch, I know you talked about the yields on the new production and the renewed production. I wanted -- I know pay downs are down, but do you have kind of the average rate on the loans that are paying down?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [9]

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I don't have that.

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Timothy Norton Coffey, Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts [10]

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Do you know the range they might be in?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [11]

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I'm going to guess they are going to be a bit lower than what we're renewing. I know there's some of those multi-family in there that are...

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David E. Ritchie, American River Bankshares - President, CEO & Director [12]

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There might be some of the portfolio.

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [13]

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Call it, 4, low 4s.

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Timothy Norton Coffey, Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts [14]

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Okay. Okay.

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [15]

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There wasn't -- in the quarter, there wasn't too many large loans that have paid down, which was good.

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Timothy Norton Coffey, Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts [16]

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Okay. And then the deposits in the quarter, especially noninterest bearing. Usually, I think we see a seasonal decline in the first quarter, was some of that brought into this quarter?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [17]

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Well, so you're saying that it ramped up a bit in the fourth quarter, and it's going to drop in the first quarter. Is that what you're asking?

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Timothy Norton Coffey, Janney Montgomery Scott LLC, Research Division - Director of Banks and Thrifts [18]

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Well, we know that we typically see the other way around. So you ramp up in the fourth quarter, then you drop in the first quarter?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [19]

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I mean, we did have pretty good growth in the fourth quarter compared to the fourth quarter of last year. As I said, overall deposits dropped, but the non -- the core type actually increased about $4.5 million. I still anticipate the first part of 2020 being rough and that we always experience tax payments more business clients as well as draws and distribution from the business owners paying out their incentives, et cetera.

So I anticipate another rough quarter. It's kind of hard to put a number on it, though.

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Operator [20]

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(Operator Instructions) Our next question comes from Kevin Swanson.

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Kevin William Swanson, Hovde Group, LLC, Research Division - Director & VP [21]

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You've been able to move funding costs lower in the past 2 quarters. Obviously, you called out the CDs in this quarter. How much of kind of the recent Fed action back late last year and then some of your own actions do you think is included wholly in the fourth quarter number?

I guess, just trying to get a sense of what could be less there on the funding side pricing?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [22]

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Yes, I don't anticipate much more decrease there. When prime dropped in, what, October 31 or so, we did drop a couple of our money market tiers, but not significantly. Again, we're -- our core type deposits are 12 basis points. I think it was 6 basis points in 2018. So there's not a lot of room to get back to that point.

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Kevin William Swanson, Hovde Group, LLC, Research Division - Director & VP [23]

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Okay. And then maybe a different way to kind of attack it. I think the average cost of funds increased maybe 6 basis points point-to-point over the year. And your margin went up 9 basis points at the same level. Obviously, some competition from loan pricing. But just curious what you guys think of in terms of margin? And if the stable kind of cost of funds, do you see some benefit to the upside in the margin compared to this year? Or just maybe your thoughts on that?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [24]

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Well, I think there will be some upside there because just looking at the funding costs, those were down from -- in the fourth quarter were down from the year-to-year numbers. So we'll see some benefit there.

And then our plan is to continue to increase the loans. So if we're taking it out of loan securities making [275] or so and putting them in loans making [495], we're going to see some benefit there as well. So it's just a matter of can we -- how much can we move out of securities into loans each of the next few quarters here. So I do hopefully see that continue with -- I don't anticipate any rate drops from the Feds. But even when they did move here in October, it only impacted a handful of our loans because most of our loans have floors with prepayment penalties. So when we book a loan, the start rate is a floor rate. So I think I think the low rate environment isn't going to impact us too significantly.

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Kevin William Swanson, Hovde Group, LLC, Research Division - Director & VP [25]

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Okay. And then, I guess, maybe it kind of leads me to next question. Just talking about some of the loan growth, obviously, easily above 20% on kind of a linked-quarter basis, annualized and year-over-year. Considering that the balances, obviously, are higher to start 2020, so it makes some of the percentages a difficult comparison, but is that kind of a rate you would like to expect for 2020? Or just, kind of, your thoughts on how that's shaping up?

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [26]

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I don't think that we'll experience the same growth rate in 2020 as we did in 2019. I like having 20-plus loan growth, but that's not something we can consistently do.

We're shooting for double digits, somewhere in the double digits. And it's probably the lower double digits, more than the higher double digits.

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Operator [27]

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And we have no further questions in queue at this time. I'd like to turn the call back to Mr. Ritchie for closing comments.

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David E. Ritchie, American River Bankshares - President, CEO & Director [28]

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Thank you very much. We appreciate it. And if you have any questions, we're here to answer them. For anybody has any questions, give us a call. All right. Thank you very much.

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Mitchell A. Derenzo, American River Bankshares - Executive VP & CFO [29]

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Thank you.

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Operator [30]

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And thank you, ladies and gentlemen. This concludes today's conference call. Thank you for participating. You may now disconnect.