American Riviera Bank Recognizes Deferred Tax Assets
October 25 2011 - 8:12PM
Business Wire
American Riviera Bank (OTCBB: ARBV) reported record year-to-date
net income of $2,953,000 ($1.18 per share) and pre-tax earnings of
$1,135,000 ($0.45 per share) for the nine months ended September
30, 2011; compared to $931,000 ($0.37 per share) of pre-tax
earnings for the same period one year ago. A primary factor in the
increased net income was recognition of $1,818,000 in federal and
state tax benefits made possible by reversal of a valuation
allowance on the deferred tax assets.
Jeff DeVine, President and Chief Executive Officer, stated:
“Even excluding this extraordinary event, the Bank has generated
year-to-date pre-tax earnings exceeding those of last year by
$204,000. With our track record of eight consecutive quarters of
profitability, strong net interest margin, and stable expense
levels; management determined that the deferred tax assets were
more likely than not to be utilized and recognized the
benefit.”
American Riviera Bank reported a record quarterly net interest
margin of 5.36%, a significant increase from the previous quarter
of 4.55%. This increase in net interest margin is due to the
combined effect of continued growth of relationship checking
accounts and deployment of liquidity into loans during the quarter.
The Bank reported $108 million in deposits at September 30, 2011,
with $21 million in non-interest bearing checking accounts, a 47%
increase from one year ago. As of September 30, 2011, the Bank
reported total loans outstanding of $101 million, a 4% increase
from the previous quarter end.
Management and the Board of Directors believe the allowance for
loan losses at 2.37% of total loans is adequate at September 30,
2011, and therefore, did not record any loan loss provision in the
third quarter of 2011. As part of the Bank’s normal monitoring of
its loan portfolio, valuations on real estate collateral sale
dependent loans are updated throughout the year via appraisal.
Certain appraisals are scheduled to be received in the fourth
quarter of 2011. No loan loss provision expense has been necessary
year-to-date. However, based on local real estate market data
continually monitored by the Bank, some level of loan loss
provisioning in the fourth quarter of 2011 is likely to address
potential reduced market values.
The Bank reported record unaudited pre-tax earnings for the
quarter ended September 30, 2011 of $433,000. The Bank continues to
maintain a strong capital position with Tier 1 capital to total
assets of 15% as of September 30, 2011, well above the regulatory
guideline of 5% for well capitalized institutions. The tangible
book value of one share of American Riviera Bank stock is $8.72 at
September 30, 2011, an increase from $7.81 as of June 30, 2011.
Company
Profile
American Riviera Bank is a full service community bank, focused
on serving the lending and deposit needs of businesses and
consumers in our community. The Bank was founded in 2006 by over
400 local shareholders and has one branch located at 1033 Anacapa
Street in downtown Santa Barbara.
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.
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