Posted on July 23, 2021
| 11:25 am
Riviera Bank of America announced an unaudited net income of $ 6,132,000 ($ 1.19 per share) for the six months ended June 30, 2021. This represents a 124% increase in net income compared to $ 2,736,000 ($ 0.54 per share) for the same reporting period in 2020. …
In 2021, the bank achieved an annual return on assets of 1.20% and a return on equity of 14.26%.
Unaudited net income was $ 3,572,000 ($ 0.70 per share) for the second quarter ended June 30, 2021, compared to $ 1,565,000 ($ 0.31 per share) received for the same reporting period in the previous year.
Net income in the second quarter of 2021 was positively impacted by the collection of interest on the loan of $ 751,000 and the accelerated recognition of commission income under the Payroll Protection Program (PPP) following loan forgiveness by the Small Business Administration (SBA).
Principal loans, excluding SBA PPP loans, rose 14% or $ 86 million in the last year from June 30, 2020.
Since December 31, 2020 year-to-date, core loans, excluding PPP loans, have grown by 9% or $ 60 million. As of June 30, 2021, PPP loans totaled $ 76 million, of which $ 78 million was processed by the bank and approved for forgiveness by the SBA during the six months ended June 30, 2021.
The bank maintained a high credit quality, without owning other real estate, without loans with a delay of 90 days or more, and only 3.4 million US dollars or 0.48% of the total amount of loans, excluding PPP, by the status of no accruals, which are well supported by collateral.
American Riviera Bank continues to see significant growth in deposits, with total deposits increasing 33% or $ 258 million since June 30, 2020, compared to last year. Interest-free demand deposits have increased by 30% or $ 100 million since June 30, 2020.
The influx of customer deposits was the driving factor in the increase in the bank’s total assets by $ 248 million from June 30, 2020 to $ 1.15 billion as of June 30, 2021.
“We are delighted that our community is recovering from the pandemic to put contributions to work by funding loans to local businesses and real estate projects,” said Jeff DeVine, President / CEO.
“The bank worked closely with our clients to process and receive immediate forgiveness decisions from the SBA, which contributed to strong recognition of PPP fee revenue this year,” he said.
“We will continue to invest heavily in people, products and technology to support our customers and the Central Coast communities,” he said.
As of June 30, 2021, American Riviera Bank continues to be well-capitalized with an 11% Tier 1 capital ratio (above the 8% regulatory requirement for well-capitalized institutions).
The real carrying value of American Riviera Bank common shares was $ 16.72 as of June 30, 2021.