American River Bankshares (NASDAQ:AMRB) today reported net income
of $1.8 million, or $0.27 per diluted share for the third quarter
of 2016 compared to $1.5 million, or $0.20 per diluted share for
the third quarter of 2015. For the nine months ended
September 30, 2016, net income was $4.5 million or $0.66 per
diluted share, compared to $3.8 million or $0.50 per diluted share
for the nine months ended September 30, 2015.
“The entire American River Bank team is focused on profitable
growth. This quarter was very productive, with continued loan
growth and solid core deposit growth,” says David Taber, President
and CEO of American River Bankshares. He went on to say, “We
are proud to report a 32% increase in EPS.”
Financial Highlights
- Net loans increased $8.2 million (3%) and core deposits
increased $19.9 million (4%) during the third quarter of
2016.
- The third quarter 2016 net interest margin was 3.65%, compared
to 3.72% for the third quarter of 2015. For the nine months
ended September 30, 2016, the net interest margin was 3.64%,
compared to 3.62% for the nine months ended September 30, 2015.
- Net interest income was $5.1 million in the third quarter 2016,
compared to $5.2 million in the third quarter of 2015. For
the nine months ended September 30, 2016, net interest income was
$15.1 million, compared to $14.9 million for the nine months ended
September 30, 2015.
- The allowance for loan and lease losses was $5.0 million (1.57%
of total loans and leases) at September 30, 2016, compared to $4.9
million (1.67% of total loans and leases) at September 30,
2015. The allowance for loan and lease losses to
nonperforming loans and leases was 640.5% at September 30, 2016,
compared to 255.1% at September 30, 2015.
- Shareholders’ equity was $84.7 million at September 30, 2016
compared to $83.6 million at June 30, 2016 and $86.3 million at
September 30, 2015. Tangible book value per share was $10.27
at September 30, 2016 compared to $10.10 at June 30, 2016 and $9.53
at September 30, 2015. Book value per share was $12.72 per
share at September 30, 2016 compared to $12.56 per share at June
30, 2016 and $11.75 at September 30, 2015.
- During 2016, the Company repurchased 716,897 shares of its
common stock under the 2016 Stock Repurchase Program, at an average
price of $10.29 per share.
- During the third quarter of 2016, the efficiency ratio was
59.9%, compared to 59.1% in the third quarter of 2015.
Return on average equity for the third quarter of 2016 was 8.62%
compared to 6.71% during the third quarter of 2015.
- The Company continues to maintain strong capital ratios.
At September 30, 2016 the Leverage ratio was 10.6% compared to
10.4% at June 30, 2016 and 10.8% at September 30, 2015; the Tier 1
Risk-Based Capital ratio was 18.4% compared to 18.0% at June 30,
2016 and 19.0% at September 30, 2015; and the Total Risk-Based
Capital ratio was 19.7% compared to 19.2% at June 30, 2016 and
20.3% at September 30, 2015.
Northern California Economic Update, September 30,
2016
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/housing, State of California Employment
Development Department, US Census, CBRE, Integra Realty Resources,
and Sacramento Association of Realtors and Trading
Economics.
Overall, 2015 commercial real estate results and employment
trends were positive and this has continued in 2016.
Commercial Real Estate. In the Greater
Sacramento Area, when comparing second quarter 2015 to second
quarter 2016, commercial real estate vacancies have improved in all
segments. Office vacancy decreased from 13.7% to 12.8%,
retail vacancy decreased from 10.6% for three quarters, with a low
of 10.2% and then increasing back to 10.6%, and industrial vacancy
decreased from 10.4% to 9.1%. In Sonoma County, for the same
period (second quarter 2015 compared to second quarter 2016),
commercial real estate vacancies improved in all segments as
well. Office vacancy decreased from 16.7% to 15.0%, retail
vacancy decreased slightly from 3.8 % to 3.7%, and industrial
vacancy decreased from 6.9% to 5.6%.
The Greater Sacramento Area reported positive absorption each
quarter over the past three years in all segments (office, retail,
and industrial) including second quarter 2016. However, in
the first quarter of 2016 absorption was negative for both office
and retail. This change was primarily the result of two large
office building vacancies, and one major retailer closing its
doors. Sonoma County has also reported (when data is
available) positive absorption over the past 3 years for all
segments.
In Greater Sacramento, commercial lease rates have been in a
relatively narrow range over the past two years through the end of
the second quarter 2016 with lease rates ranging from the
following: office: $1.68/SF to $1.78/SF; retail: $1.33/SF to
$1.40/SF and industrial: $0.35/SF to $0.47/SF. As of
second quarter 2016, lease rates per square foot were $1.78 for
office, $1.34 for retail, and $0.47 for industrial. As
a proxy for Sonoma County, the City of Santa Rosa’s gross lease
rates in the past two years through the end of the fourth quarter
of 2015 have shown some fluctuation in office and industrial
segments and decreased in the retail segment. The lease rates
during the two year period ranged from: office: $1.47/SF to
$1.88/SF, retail: $0.90/SF to $1.52/SF, and industrial: $0.66/SF to
$0.95/SF.
The Amador region has the lowest level of commercial real estate
concentration in the Bank. There is limited supply for
commercial real estate in this region and as a result, minimal
information is available.
Employment. National unemployment, which
reached a high of 10.0% at October 31, 2009, has dropped steadily
since and has stabilized. Compared to December 2014, national
unemployment decreased from 5.6% to 5.0% in December 2015, and
decreased further to 4.9% as of August 2016. California
unemployment was 9.6% at December 31, 2012, 8.2% at December 31,
2013, 6.9% at December 31 2014, and 5.9% at December 31,
2015. As of August 2016, the rate decreased to 5.5%.
The number of employed Californians continues to
increase. There were 17.1 million employed at the end
of 2013, 17.6 million employed at the end of 2014, and 17.9 million
employed at the end of 2015. The State added another 292,000
jobs this year through August 31, 2016.
At December 31, 2014, all three of our markets reported lower
unemployment rates than at year end 2013. This trend
continued at a slower pace into 2015, and at December 31, 2015,
unemployment rates were 5.5% and 4.2% for the Sacramento MSA and
Santa Rosa-Petaluma MSA, respectively. As of August 31, 2016,
these figures remained relatively flat at 5.5% and 4.1%,
respectively. Over the same period, Amador County has been
higher than the State every quarter with the exception of the third
quarter 2015. Amador County had shown significant improvement
from 7.4% at December 31, 2014 to 6.3% at December 31, 2015, and at
August 31, 2016 decreased to 5.8%.
Job growth was positive in all of our markets in 2014, 2015, and
as of August 31, 2016. Compared to December 2014, job growth
was 1.06%, 2.13% and 0.61% for the Sacramento MSA, Santa
Rosa-Petaluma MSA and Amador County, respectively, at December 31,
2015. As of August 31, 2016, compared to December 2015, job
growth was 2.37%, 2.41% and 7.58% for the Sacramento MSA, Santa
Rosa-Petaluma MSA and Amador County, respectively.
Asset Quality and Balance Sheet Review
American River Bankshares’ assets totaled $653.8 million at
September 30, 2016, compared to $634.6 million at December 31,
2015, and $625.2 million at September 30, 2015.
Net loans totaled $313.3 million at September 30, 2016, an
increase from $289.1 million at December 31, 2015 and $289.8
million at September 30, 2015. The loan portfolio at
September 30, 2016 included: real estate loans of $278.6 million
(87% of the portfolio), commercial loans of $35.2 million (11% of
the portfolio) and other loans, which consist mainly of leases and
consumer loans of $4.7 million (2% of the portfolio). The
real estate loan portfolio at September 30, 2016 includes:
owner-occupied commercial real estate loans of $75.3 million (27%
of the real estate portfolio), investor commercial real estate
loans of $119.6 million (43% of the real estate portfolio),
construction and land development loans of $16.9 million (6% of the
real estate portfolio), multi-family real estate loans of $50.9
million (18% of the real estate portfolio), and residential real
estate loans of $15.9 million (6% of the real estate loan
portfolio).
Nonperforming assets (“NPAs”) include nonperforming loans and
leases, other real estate owned (“OREO”), and other assets.
Nonperforming loans includes all loans and leases that are either
placed on nonaccrual status or are 90 days past due as to principal
or interest but still accrue interest because these loans are
well-secured and in the process of collection. Nonperforming
loans decreased $1.1 million (57.9%) from $1.9 million at September
30, 2015 to $800,000 at September 30, 2016. Nonperforming
loans decreased $800,000 (50.0%) from $1.6 million at December 31,
2015. NPAs declined to $2.3 million at September 30, 2016
from $6.1 million at December 31, 2015 and from $6.6 million at
September 30, 2015. The NPAs to total assets ratio declined
to 0.35% at the end of September 2016 from 0.96% at December 2015
and 1.05% one year ago.
At September 30, 2016, the Company had one OREO property
totaling $653,000. This compares to three OREO properties
totaling $3.6 million at December 31, 2015 and four OREO properties
totaling $3.8 million at September 30, 2015. During the third
quarter of 2016, the Company sold one commercial property for a
gain of $43,000. There was no OREO valuation allowance
recorded at September 30, 2016, December 31, 2015, or September 30,
2015.
Loans measured for impairment were $18.4 million at the end of
September 2016, a decrease from $21.4 million at December 31, 2015,
and $23.1 million a year ago. Specific reserves of $564,000
were held on the impaired loans at September 30, 2016, compared to
$899,000 at December 31, 2015 and $966,000 at September 30,
2015. There was a reversal of $668,000 in provision for loan
and lease losses in the third quarter and first nine months of 2016
compared to no provision in the third quarter and first nine months
of 2015. The Company had net recoveries of $519,000 in the
third quarter of 2016 compared to net charge-offs of $430,000 in
the third quarter of 2015. For the first nine months of 2016,
the Company had net recoveries of $676,000 compared to net
charge-offs of $372,000 in the first nine months of 2015. The
Company maintains the allowance for loan and lease losses at a
level believed to be adequate for known and inherent risks in the
portfolio. The methodology incorporates a variety of risk
considerations, both quantitative and qualitative, in establishing
an allowance for loan and lease losses that management believes is
appropriate at each reporting date.
Investment securities, which excludes $3.8 million in stock of
the Federal Home Loan Bank of San Francisco (“FHLB Stock”), totaled
$254.0 million at September 30, 2016, down 7.4% from $274.4 million
at December 31, 2015 and 5.0% from $267.4 million at September 30,
2015. At September 30, 2016, the investment portfolio was
comprised of 90% U.S. Government agencies or U.S.
Government-sponsored agencies (primarily mortgage-backed
securities), 9% obligations of states and political subdivisions,
and 1% corporate bonds.
At September 30, 2016, total deposits were $546.2 million,
compared to $530.7 million at December 31, 2015 and $521.4 million
one year ago. Core deposits increased 6.4% to $463.2 million
at September 30, 2016 from $435.2 million at September 30, 2015 and
increased 3.8% from $446.1 million at December 31, 2015. The
Company considers all deposits except time deposits as core
deposits.
At September 30, 2016, noninterest-bearing demand deposits
accounted for 39% of total deposits, interest-bearing demand
accounts were 11%, savings deposits were 11%, money market balances
accounted for 24% and time certificates were 15% of total
deposits. At September 30, 2015, noninterest-bearing demand
deposits accounted for 34% of total deposits, interest-bearing
demand accounts were 12%, savings deposits were 11%, money market
balances accounted for 26% and time certificates were 17% of total
deposits.
Shareholders’ equity decreased to $84.7 million at September 30,
2016 compared to $86.1 million at December 31, 2015 and from $86.3
million at September 30, 2015. The $1.4 million (1.6%)
decrease in equity from December 31, 2015 was due primarily to a
decrease in common stock of $7.3 million related to repurchases
made under the 2016 Stock Repurchase Program, partially offset by
an increase in Retained Earnings of $4.5 million due to the net
income for the year and a $1.3 million increase in accumulated
other comprehensive income related to an increase in the unrealized
gain on securities. In 2016, the Company repurchased 716,897
shares of its common stock at an average price of $10.29 per
share.
Net Interest Income
The net interest income during the third quarter of 2016
decreased 1.9% from $5.2 million to $5.1 million during the third
quarter of 2015 and for the nine months ended September 30, 2016,
net interest income increased 1.3% to $15.1 million from $14.9
million for the nine months ended September 30, 2015. The net
interest margin as a percentage of average earning assets was 3.65%
in the third quarter of 2016, compared to 3.64% in the second
quarter of 2016 and 3.72% in the third quarter of 2015. For
the nine months ended September 30, 2016, the net interest margin
was 3.64% compared to 3.62% for the nine months ended September 30,
2015. Interest income for the third quarter of 2016 decreased
3.6% to $5.3 million from $5.5 million for the third quarter of
2015 and for the nine months ended September 30, 2016, interest
income increased 1.3% to $15.8 million from $15.6 million for the
nine months ended September 30, 2015. Interest expense for
the third quarter of 2016 decreased 7.1% to $223,000 from $240,000
for the third quarter of 2015 and for the nine months ended
September 30, 2016 decreased 7.4% to $678,000 from $732,000 for the
nine months ended September 30,
2015.
The average tax equivalent yield on earning assets decreased
from 3.89% in the third quarter of 2015 to 3.81% for the third
quarter of 2016 and for the nine months ended September 30, 2016
remained consistent at 3.80% with the nine months ended September
30, 2015. The decrease in yield on earning assets from the
third quarter of 2015 to the third quarter of 2016 results from the
addition of newly funded loans at current market rates, which are
lower than historical rates earned on maturing and paid off
loans. Average loans rates decreased from 5.07% in the third
quarter of 2015 to 5.01% in the third quarter of 2016.
Investment securities also contributed, with average yields
decreasing from 2.69% in in the third quarter of 2015 to 2.38% in
in the third quarter of 2016. The consistency of the yield
over the nine months ending September 30, 2015 and 2016 results
from a decrease in interest rates earned offset by an increase in
volume. Average loans rates decreased from 5.06% in the
first nine months of 2015 to 4.93% in the first nine months of
2016. Yields on investment securities decreased from 2.59% in
the first nine months of 2015 to 2.52% in the first nine months of
2016. Average loan balances increased from $275,566,000 in
the first nine months of 2015 to $301,645,000 during the first nine
months of 2016 while average investment balances decreased from
$283,377,000 during the first nine months of 2015 to $265,436,000
during the first nine months of 2016.
The average balance of earning assets decreased $1.6 million
(0.3%) from $566.7 million in the third quarter of 2015 to $565.1
million in the third quarter of 2016 and for the nine months ended
September 30, 2016, increased $8.2 million (1.5%) to $568.1 million
from $559.9 million for the nine months ended September 30,
2015.
The average cost of funds remained consistent at 0.26% in the
third quarter of 2015 and 2016, while it decreased slightly to
0.26% in the first nine months of 2016 from 0.27% in the first nine
months of 2015. The consistency comes from the decreasing
cost of interest checking and money market deposits and the
offsetting increase in cost of time deposits and borrowings.
Noninterest Income and Expense
Noninterest income for the third quarter of 2016 was $399,000,
down from $490,000 in the third quarter of 2015 and decreased for
the nine months ended September 30, 2016 and 2015, from $1.6
million to $1.5 million. On a quarter over quarter
basis, the decrease in noninterest income was predominately related
to a decrease in income from OREO properties from $87,000 in the
third quarter of 2015 to zero in 2016. The decrease in OREO
income results from the sale of an income producing OREO property
in March 2016. On a year over year basis, the decrease in
noninterest income was primarily due to a decrease in rental income
from OREO properties, partially offset by an increase in the gain
on sale of securities. Gain on sale of securities was
$314,000 in the first nine months of 2016 compared to $251,000 for
the first nine months of 2015 and rental income from OREO
properties was $248,000 in 2015 compared to $106,000 in 2016.
The increase in gain on sale of securities was a result of the Bank
managing its portfolio in a volatile rate environment.
Noninterest expense decreased $100,000 from $3.4 million for the
third quarter of 2015 to $3.3 million for the third quarter of
2016, and decreased to $10.6 million for the nine months ended
September 30, 2016 from $10.7 million in 2015. While there
were many fluctuations in expense related items between the third
quarters of 2015 and 2016, two areas of note would be a decrease in
salaries and benefits of $112,000 and a decrease in OREO expense of
$88,000. The above mentioned $43,000 gain on sale of OREO is
recorded as a reduction of OREO expense, which exceeded normal
operating costs, thereby creating a credit balance of $30,000 for
the third quarter of 2016. On a year over year basis, OREO
related expense increased $70,000 and salaries and benefits
decreased by $166,000. The Company has focused on controlling
overhead expenses, however, the increase in OREO related expenses
for 2016 compared to 2015 was the result of an impairment charge to
one of the properties during the first quarter of 2016 in the
amount of $376,000 and this was partially offset by gains on sale
of OREO properties for the year in the amount of
$169,000. The fully taxable equivalent efficiency ratio
for the third quarter of 2016 increased to 59.9% from 59.1% for the
third quarter of 2015 and for the nine months ended September 30,
2016, decreased to 62.1% from 63.6% for the nine months ended
September 30, 2015.
Provision for Income Taxes
Federal and state income taxes for the quarter ended September
30, 2016 increased by $182,000 from $807,000 in the third quarter
of 2015 to $989,000 in the third quarter of 2016 and increased from
$2.0 million in the first nine months of 2015 to $2.3 million in
the first nine months of 2016. The higher provision for taxes
in the first nine months of 2016 compared to the first nine months
of 2015 resulted from an increase in taxable income partially
offset by the increase in tax benefits related to tax exempt loan
interest.
Earnings Conference Call
The third quarter earnings conference call will be held
Thursday, October 20, 2016 at 1:30 p.m. Pacific Time (4:30 p.m.
Eastern Time). David T. Taber, President and Chief Executive
Officer, and Mitchell A. Derenzo, Executive Vice President and
Chief Financial Officer, both of American River Bankshares, will
lead a live presentation and answer analysts’
questions. Shareholders, analysts and other interested
parties are invited to join the call by dialing (888) 517-2513 and
entering the Conference ID 8692619#. 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 give business owners more REACH by
offering financial expertise and exceptional service to complement
a full suite of banking products and services. Our honest approach,
commitment to community and focus on profitability is intended to
lead our clients to greater success. For more information, call
(800) 544-0545 or visit 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
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.
Net Interest Margin and Efficiency Ratio (non-GAAP
financial measures)
In accordance with industry standards, certain designated net
interest income amounts are presented on ataxable 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 34% effective tax rate
allows 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.
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, 2015, and in subsequent
reports filed on Form 10-Q and Form 8-K. The Company does not
undertake any obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information,
future events or otherwise, except as required by law.
American River Bankshares |
|
|
|
Condensed Consolidated Balance Sheets
(Unaudited) |
|
|
|
(Dollars
in thousands) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
September 30, |
|
ASSETS |
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
Cash and
due from banks |
$ |
|
43,094 |
|
$ |
|
23,727 |
|
$ |
|
21,638 |
|
|
Interest-bearing deposits in banks |
|
|
999 |
|
|
|
750 |
|
|
|
1,000 |
|
|
Investment securities |
|
|
254,010 |
|
|
|
274,442 |
|
|
|
267,414 |
|
|
Loans
& leases: |
|
|
|
|
|
|
|
Real estate |
|
|
278,594 |
|
|
|
251,818 |
|
|
|
253,888 |
|
|
Commercial |
|
|
35,172 |
|
|
|
36,195 |
|
|
|
34,269 |
|
|
Lease financing |
|
|
462 |
|
|
|
732 |
|
|
|
837 |
|
|
Other |
|
|
4,305 |
|
|
|
5,553 |
|
|
|
5,948 |
|
|
Deferred loan and lease origination
fees, net |
|
|
(248 |
) |
|
|
(221 |
) |
|
|
(239 |
) |
|
Allowance for loan and lease
losses |
|
|
(4,983 |
) |
|
|
(4,975 |
) |
|
|
(4,929 |
) |
|
Loans and leases, net |
|
|
313,302 |
|
|
|
289,102 |
|
|
|
289,774 |
|
|
Bank
premises and equipment, net |
|
|
1,259 |
|
|
|
1,407 |
|
|
|
1,435 |
|
|
Goodwill
and intangible assets |
|
|
16,321 |
|
|
|
16,321 |
|
|
|
16,321 |
|
|
Investment in Federal Home Loan Bank Stock |
|
|
3,779 |
|
|
|
3,779 |
|
|
|
3,779 |
|
|
Other
real estate owned, net |
|
|
653 |
|
|
|
3,551 |
|
|
|
3,781 |
|
|
Accrued
interest receivable and other assets |
|
|
20,429 |
|
|
|
21,561 |
|
|
|
20,052 |
|
|
|
$ |
|
653,846 |
|
$ |
|
634,640 |
|
$ |
|
625,194 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Noninterest-bearing deposits |
$ |
|
209,586 |
|
$ |
|
190,548 |
|
$ |
|
178,038 |
|
|
Interest
checking |
|
|
61,398 |
|
|
|
61,324 |
|
|
|
63,745 |
|
|
Money
market |
|
|
131,655 |
|
|
|
135,186 |
|
|
|
133,249 |
|
|
Savings |
|
|
60,605 |
|
|
|
59,061 |
|
|
|
60,174 |
|
|
Time
deposits |
|
|
82,921 |
|
|
|
84,571 |
|
|
|
86,163 |
|
|
Total
deposits |
|
|
546,165 |
|
|
|
530,690 |
|
|
|
521,369 |
|
|
Short-term borrowings |
|
|
5,000 |
|
|
|
3,500 |
|
|
|
3,500 |
|
|
Long-term borrowings |
|
|
9,000 |
|
|
|
7,500 |
|
|
|
7,500 |
|
|
Accrued
interest and other liabilities |
|
|
9,015 |
|
|
|
6,875 |
|
|
|
6,547 |
|
|
Total
liabilities |
|
|
569,180 |
|
|
|
548,565 |
|
|
|
538,916 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Common stock |
$ |
|
42,402 |
|
$ |
|
49,554 |
|
$ |
|
49,483 |
|
|
Retained earnings |
|
|
38,907 |
|
|
|
34,418 |
|
|
|
32,961 |
|
|
Accumulated other
comprehensive income |
|
|
3,357 |
|
|
|
2,103 |
|
|
|
3,834 |
|
|
Total shareholders' equity |
|
|
84,666 |
|
|
|
86,075 |
|
|
|
86,278 |
|
|
|
$ |
|
653,846 |
|
$ |
|
634,640 |
|
$ |
|
625,194 |
|
|
|
|
|
|
|
|
|
|
Ratios: |
|
|
|
|
|
|
|
Nonperforming loans and
leases to total loans and leases |
|
|
0.24 |
% |
|
|
0.56 |
% |
|
|
0.66 |
% |
|
Net (recoveries)
charge-offs to average loans and leases (annualized) |
|
|
-0.30 |
% |
|
|
0.12 |
% |
|
|
0.18 |
% |
|
Allowance for loan and
lease losses to total loans and leases |
|
|
1.57 |
% |
|
|
1.69 |
% |
|
|
1.67 |
% |
|
|
|
|
|
|
|
|
|
American River
Bank Capital Ratios: |
|
|
|
|
|
|
|
Leverage Capital
Ratio |
|
|
10.62 |
% |
|
|
11.04 |
% |
|
|
10.89 |
% |
|
Common Equity Tier 1
Risk-Based Capital |
|
|
18.15 |
% |
|
|
19.07 |
% |
|
|
18.75 |
% |
|
Tier 1 Risk-Based
Capital Ratio |
|
|
18.15 |
% |
|
|
19.07 |
% |
|
|
18.75 |
% |
|
Total Risk-Based
Capital Ratio |
|
|
19.40 |
% |
|
|
20.32 |
% |
|
|
20.00 |
% |
|
|
|
|
|
|
|
|
|
American River
Bankshares Capital Ratios: |
|
|
|
|
|
|
|
Leverage Capital
Ratio |
|
|
10.56 |
% |
|
|
10.97 |
% |
|
|
10.82 |
% |
|
Tier 1 Risk-Based
Capital Ratio |
|
|
18.45 |
% |
|
|
19.34 |
% |
|
|
19.00 |
% |
|
Total Risk-Based
Capital Ratio |
|
|
19.70 |
% |
|
|
20.59 |
% |
|
|
20.25 |
% |
|
|
|
|
|
|
|
|
|
American River Bankshares |
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of
Income (Unaudited) |
|
|
|
|
|
|
|
|
(Dollars
in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third |
|
Third |
|
|
|
|
For the Nine
Months |
|
|
|
|
|
Quarter |
|
Quarter |
% |
|
|
|
Ended September 30, |
% |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Change |
|
|
|
|
2016 |
|
|
|
2015 |
|
Change |
|
|
Interest
income |
$ |
|
5,304 |
|
$ |
|
5,458 |
|
|
(2.8 |
) |
% |
|
$ |
|
15,809 |
|
$ |
|
15,643 |
|
|
1.1 |
|
% |
|
Interest
expense |
|
|
223 |
|
|
|
240 |
|
|
(7.1 |
) |
% |
|
|
|
678 |
|
|
|
732 |
|
|
(7.4 |
) |
% |
|
Net
interest income |
|
|
5,081 |
|
|
|
5,218 |
|
|
(2.6 |
) |
% |
|
|
|
15,131 |
|
|
|
14,911 |
|
|
1.5 |
|
% |
|
Provision for loan and lease losses |
|
|
(668 |
) |
|
|
- |
|
|
- |
|
% |
|
|
|
(668 |
) |
|
|
- |
|
|
- |
|
% |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
|
124 |
|
|
|
132 |
|
|
(6.1 |
) |
% |
|
|
|
381 |
|
|
|
376 |
|
|
1.3 |
|
% |
|
Gain on
sale or impairment of securities, net |
|
|
33 |
|
|
|
33 |
|
|
- |
|
% |
|
|
|
314 |
|
|
|
251 |
|
|
25.1 |
|
% |
|
Rental
income from other real estate owned |
|
|
- |
|
|
|
87 |
|
|
(100.0 |
) |
% |
|
|
|
106 |
|
|
|
248 |
|
|
(57.3 |
) |
% |
|
Other
noninterest income |
|
|
242 |
|
|
|
238 |
|
|
1.7 |
|
% |
|
|
|
715 |
|
|
|
707 |
|
|
1.1 |
|
% |
|
Total
noninterest income |
|
|
399 |
|
|
|
490 |
|
|
(18.6 |
) |
% |
|
|
|
1,516 |
|
|
|
1,582 |
|
|
(4.2 |
) |
% |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
2,073 |
|
|
|
2,185 |
|
|
(5.1 |
) |
% |
|
|
|
6,334 |
|
|
|
6,500 |
|
|
(2.6 |
) |
% |
|
Occupancy |
|
|
295 |
|
|
|
294 |
|
|
0.3 |
|
% |
|
|
|
885 |
|
|
|
888 |
|
|
(0.3 |
) |
% |
|
Furniture
and equipment |
|
|
165 |
|
|
|
171 |
|
|
(3.5 |
) |
% |
|
|
|
493 |
|
|
|
527 |
|
|
(6.5 |
) |
% |
|
Federal
Deposit Insurance Corporation assessments |
|
|
77 |
|
|
|
83 |
|
|
(7.2 |
) |
% |
|
|
|
233 |
|
|
|
239 |
|
|
(2.5 |
) |
% |
|
Expenses
related to other real estate owned |
|
|
(30 |
) |
|
|
58 |
|
|
(151.7 |
) |
% |
|
|
|
330 |
|
|
|
260 |
|
|
26.9 |
|
% |
|
Other
expense |
|
|
766 |
|
|
|
641 |
|
|
19.5 |
|
% |
|
|
|
2,277 |
|
|
|
2,246 |
|
|
1.4 |
|
% |
|
Total
noninterest expense |
|
|
3,346 |
|
|
|
3,432 |
|
|
(2.5 |
) |
% |
|
|
|
10,552 |
|
|
|
10,660 |
|
|
(1.0 |
) |
% |
|
Income
before provision for income taxes |
|
|
2,802 |
|
|
|
2,276 |
|
|
23.1 |
|
% |
|
|
|
6,763 |
|
|
|
5,833 |
|
|
15.9 |
|
% |
|
Provision for income taxes |
|
|
989 |
|
|
|
807 |
|
|
22.6 |
|
% |
|
|
|
2,274 |
|
|
|
2,022 |
|
|
12.5 |
|
% |
|
Net
income |
$ |
|
1,813 |
|
$ |
|
1,469 |
|
|
23.4 |
|
% |
|
$ |
|
4,489 |
|
$ |
|
3,811 |
|
|
17.8 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
|
0.28 |
|
$ |
|
0.20 |
|
|
40.0 |
|
% |
|
$ |
|
0.66 |
|
$ |
|
0.50 |
|
|
32.0 |
|
% |
|
Diluted
earnings per share |
$ |
|
0.27 |
|
$ |
|
0.20 |
|
|
35.0 |
|
% |
|
$ |
|
0.66 |
|
$ |
|
0.50 |
|
|
32.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin as a percentage of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average earning
assets |
|
|
3.65 |
% |
|
|
3.72 |
% |
|
|
|
|
|
3.64 |
% |
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
|
6,621,276 |
|
|
|
7,501,459 |
|
|
|
|
|
|
6,828,124 |
|
|
|
7,667,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
|
1.13 |
% |
|
|
0.92 |
% |
|
|
|
|
|
0.95 |
% |
|
|
0.82 |
% |
|
|
|
Return on
average equity |
|
|
8.62 |
% |
|
|
6.71 |
% |
|
|
|
|
|
7.12 |
% |
|
|
5.81 |
% |
|
|
|
Return on
average tangible equity |
|
|
10.70 |
% |
|
|
8.27 |
% |
|
|
|
|
|
8.83 |
% |
|
|
7.14 |
% |
|
|
|
Efficiency ratio (fully taxable equivalent) |
|
|
59.88 |
% |
|
|
59.14 |
% |
|
|
|
|
|
62.11 |
% |
|
|
63.60 |
% |
|
|
|
American River Bankshares |
|
|
|
Condensed Consolidated Statements of
Income (Unaudited) |
|
|
|
(Dollars
in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Third |
|
Second |
|
First |
|
Fourth |
|
Third |
|
|
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
Quarter |
|
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2015 |
|
|
Interest
income |
$ |
|
5,304 |
|
$ |
|
5,229 |
|
$ |
|
5,276 |
|
$ |
|
5,325 |
|
$ |
|
5,458 |
|
|
Interest
expense |
|
|
223 |
|
|
|
221 |
|
|
|
234 |
|
|
|
229 |
|
|
|
240 |
|
|
Net
interest income |
|
|
5,081 |
|
|
|
5,008 |
|
|
|
5,042 |
|
|
|
5,096 |
|
|
|
5,218 |
|
|
Provision for loan and lease losses |
|
|
(668 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts |
|
|
124 |
|
|
|
128 |
|
|
|
129 |
|
|
|
122 |
|
|
|
132 |
|
|
Gain
(loss) on sale or impairment of securities |
|
|
33 |
|
|
|
(1 |
) |
|
|
282 |
|
|
|
- |
|
|
|
33 |
|
|
Rental
income from other real estate owned |
|
|
- |
|
|
|
- |
|
|
|
106 |
|
|
|
87 |
|
|
|
87 |
|
|
Other
noninterest income |
|
|
242 |
|
|
|
236 |
|
|
|
237 |
|
|
|
224 |
|
|
|
238 |
|
|
Total
noninterest income |
|
|
399 |
|
|
|
363 |
|
|
|
754 |
|
|
|
433 |
|
|
|
490 |
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
|
2,073 |
|
|
|
2,101 |
|
|
|
2,160 |
|
|
|
2,028 |
|
|
|
2,185 |
|
|
Occupancy |
|
|
295 |
|
|
|
292 |
|
|
|
298 |
|
|
|
295 |
|
|
|
294 |
|
|
Furniture
and equipment |
|
|
165 |
|
|
|
163 |
|
|
|
165 |
|
|
|
163 |
|
|
|
171 |
|
|
Federal
Deposit Insurance Corporation assessments |
|
|
77 |
|
|
|
76 |
|
|
|
80 |
|
|
|
85 |
|
|
|
83 |
|
|
Expenses
related to other real estate owned |
|
|
(30 |
) |
|
|
20 |
|
|
|
340 |
|
|
|
62 |
|
|
|
58 |
|
|
Other
expense |
|
|
766 |
|
|
|
763 |
|
|
|
748 |
|
|
|
787 |
|
|
|
641 |
|
|
Total
noninterest expense |
|
|
3,346 |
|
|
|
3,415 |
|
|
|
3,791 |
|
|
|
3,420 |
|
|
|
3,432 |
|
|
Income
before provision for income taxes |
|
|
2,802 |
|
|
|
1,956 |
|
|
|
2,005 |
|
|
|
2,109 |
|
|
|
2,276 |
|
|
Provision for income taxes |
|
|
989 |
|
|
|
652 |
|
|
|
633 |
|
|
|
652 |
|
|
|
807 |
|
|
Net
income |
$ |
|
1,813 |
|
$ |
|
1,304 |
|
$ |
|
1,372 |
|
$ |
|
1,457 |
|
$ |
|
1,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
|
0.28 |
|
$ |
|
0.19 |
|
$ |
|
0.19 |
|
$ |
|
0.20 |
|
$ |
|
0.20 |
|
|
Diluted
earnings per share |
$ |
|
0.27 |
|
$ |
|
0.19 |
|
$ |
|
0.19 |
|
$ |
|
0.20 |
|
$ |
|
0.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin as a percentage of |
|
|
|
|
|
|
|
|
|
|
|
average
earning assets |
|
|
3.65 |
% |
|
|
3.64 |
% |
|
|
3.63 |
% |
|
|
3.63 |
% |
|
|
3.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
diluted shares outstanding |
|
|
6,621,271 |
|
|
|
6,746,099 |
|
|
|
7,130,444 |
|
|
|
7,315,109 |
|
|
|
7,501,459 |
|
|
Shares
outstanding-end of period |
|
|
6,656,594 |
|
|
|
6,655,980 |
|
|
|
6,994,300 |
|
|
|
7,343,649 |
|
|
|
7,343,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
1.13 |
% |
|
|
0.84 |
% |
|
|
0.87 |
% |
|
|
0.91 |
% |
|
|
0.92 |
% |
|
Return on average equity |
|
|
8.62 |
% |
|
|
6.29 |
% |
|
|
6.44 |
% |
|
|
6.71 |
% |
|
|
6.71 |
% |
|
Return on average tangible equity |
|
|
10.70 |
% |
|
|
7.83 |
% |
|
|
7.95 |
% |
|
|
8.28 |
% |
|
|
8.27 |
% |
|
Efficiency ratio (fully taxable equivalent) |
|
|
59.88 |
% |
|
|
62.26 |
% |
|
|
64.07 |
% |
|
|
60.72 |
% |
|
|
59.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
American River Bankshares |
|
Analysis of Net Interest Margin on Earning
Assets (Unaudited) |
|
(Taxable Equivalent Basis) |
|
(Dollars in thousands) |
|
Three months
ended September 30, |
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
Avg Balance |
Interest |
Avg Yield |
|
Avg Balance |
Interest |
Avg Yield |
|
Taxable loans and
leases |
$ |
289,795 |
|
$ |
3,617 |
|
|
4.97 |
% |
|
$ |
275,313 |
|
$ |
3,534 |
|
|
5.09 |
% |
|
Tax-exempt loans and
leases |
|
17,529 |
|
|
254 |
|
|
5.76 |
% |
|
|
11,601 |
|
|
130 |
|
|
4.45 |
% |
|
Taxable investment
securities |
|
232,858 |
|
|
1,340 |
|
|
2.29 |
% |
|
|
252,760 |
|
|
1,633 |
|
|
2.56 |
% |
|
Tax-exempt investment
securities |
|
23,811 |
|
|
199 |
|
|
3.32 |
% |
|
|
25,965 |
|
|
254 |
|
|
3.88 |
% |
|
Corporate stock |
|
78 |
|
|
- |
|
|
0.00 |
% |
|
|
83 |
|
|
- |
|
|
0.00 |
% |
|
Interest-bearing
deposits in banks |
|
999 |
|
|
2 |
|
|
0.80 |
% |
|
|
1,000 |
|
|
2 |
|
|
0.79 |
% |
|
Total earning assets |
|
565,070 |
|
|
5,412 |
|
|
3.81 |
% |
|
|
566,722 |
|
|
5,553 |
|
|
3.89 |
% |
|
Cash & due from
banks |
|
37,343 |
|
|
|
|
|
29,465 |
|
|
|
|
Other assets |
|
38,618 |
|
|
|
|
|
40,010 |
|
|
|
|
Allowance for loan &
lease losses |
|
(5,470 |
) |
|
|
|
|
(5,493 |
) |
|
|
|
|
$ |
635,561 |
|
|
|
|
$ |
630,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Interest checking and
money market |
$ |
188,292 |
|
$ |
35 |
|
|
0.07 |
% |
|
$ |
196,395 |
|
$ |
61 |
|
|
0.12 |
% |
|
Savings |
|
60,925 |
|
|
4 |
|
|
0.03 |
% |
|
|
58,579 |
|
|
6 |
|
|
0.04 |
% |
|
Time deposits |
|
82,771 |
|
|
140 |
|
|
0.67 |
% |
|
|
86,684 |
|
|
135 |
|
|
0.62 |
% |
|
Other borrowings |
|
15,185 |
|
|
44 |
|
|
1.15 |
% |
|
|
18,228 |
|
|
38 |
|
|
0.83 |
% |
|
Total interest bearing liabilities |
|
347,173 |
|
|
223 |
|
|
0.26 |
% |
|
|
359,886 |
|
|
240 |
|
|
0.26 |
% |
|
Noninterest bearing demand
deposits |
|
198,655 |
|
|
|
|
|
177,737 |
|
|
|
|
Other liabilities |
|
6,031 |
|
|
|
|
|
6,253 |
|
|
|
|
Total liabilities |
|
551,859 |
|
|
|
|
|
543,876 |
|
|
|
|
Shareholders' equity |
|
83,702 |
|
|
|
|
|
86,828 |
|
|
|
|
|
$ |
635,561 |
|
|
|
|
$ |
630,704 |
|
|
|
|
Net interest
income & margin |
|
$ |
5,189 |
|
|
3.65 |
% |
|
|
$ |
5,313 |
|
|
3.72 |
% |
|
|
|
|
|
|
|
|
|
|
Nine months
ended September 30, |
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
Avg Balance |
Interest |
Avg Yield |
|
Avg Balance |
Interest |
Avg Yield |
|
Taxable loans and
leases |
$ |
284,782 |
|
$ |
10,424 |
|
|
4.89 |
% |
|
$ |
267,256 |
|
$ |
10,130 |
|
|
5.07 |
% |
|
Tax-exempt loans and
leases |
|
16,863 |
|
|
716 |
|
|
5.67 |
% |
|
|
8,310 |
|
|
297 |
|
|
4.78 |
% |
|
Taxable investment
securities |
|
241,129 |
|
|
4,333 |
|
|
2.40 |
% |
|
|
257,103 |
|
|
4,706 |
|
|
2.45 |
% |
|
Tax-exempt investment
securities |
|
24,233 |
|
|
660 |
|
|
3.64 |
% |
|
|
26,196 |
|
|
763 |
|
|
3.89 |
% |
|
Corporate stock |
|
74 |
|
|
14 |
|
|
25.27 |
% |
|
|
78 |
|
|
12 |
|
|
20.57 |
% |
|
Interest-bearing
deposits in banks |
|
994 |
|
|
5 |
|
|
0.67 |
% |
|
|
993 |
|
|
4 |
|
|
0.54 |
% |
|
Total
earning assets |
|
568,075 |
|
|
16,152 |
|
|
3.80 |
% |
|
|
559,936 |
|
|
15,912 |
|
|
3.80 |
% |
|
Cash & due from
banks |
|
31,209 |
|
|
|
|
|
24,347 |
|
|
|
|
Other assets |
|
38,027 |
|
|
|
|
|
39,650 |
|
|
|
|
Allowance for loan
& lease losses |
|
(5,191 |
) |
|
|
|
|
(5,382 |
) |
|
|
|
|
$ |
632,120 |
|
|
|
|
$ |
618,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Interest checking and
money market |
$ |
188,405 |
|
$ |
110 |
|
|
0.08 |
% |
|
$ |
195,563 |
|
$ |
192 |
|
|
0.13 |
% |
|
Savings |
|
59,940 |
|
|
14 |
|
|
0.03 |
% |
|
|
58,464 |
|
|
23 |
|
|
0.05 |
% |
|
Time deposits |
|
83,222 |
|
|
421 |
|
|
0.68 |
% |
|
|
87,495 |
|
|
409 |
|
|
0.62 |
% |
|
Other borrowings |
|
17,936 |
|
|
133 |
|
|
0.99 |
% |
|
|
14,606 |
|
|
108 |
|
|
0.99 |
% |
|
Total
interest bearing liabilities |
|
349,503 |
|
|
678 |
|
|
0.26 |
% |
|
|
356,128 |
|
|
732 |
|
|
0.27 |
% |
|
Noninterest bearing demand
deposits |
|
192,103 |
|
|
|
|
|
168,546 |
|
|
|
|
Other liabilities |
|
6,262 |
|
|
|
|
|
6,157 |
|
|
|
|
Total
liabilities |
|
547,868 |
|
|
|
|
|
530,831 |
|
|
|
|
Shareholders' equity |
|
84,252 |
|
|
|
|
|
87,720 |
|
|
|
|
|
$ |
632,120 |
|
|
|
|
$ |
618,551 |
|
|
|
|
Net interest
income & margin |
|
$ |
15,474 |
|
|
3.64 |
% |
|
|
$ |
15,180 |
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
Investor and Media Contact:
Mitchell A. Derenzo
Chief Financial Officer
American River Bankshares
(916) 231-6723
American River Bankshares (NASDAQ:AMRB)
Historical Stock Chart
From Mar 2024 to Apr 2024
American River Bankshares (NASDAQ:AMRB)
Historical Stock Chart
From Apr 2023 to Apr 2024