March 31, December 31,
Non-performing assets 2010 2009
------------- -------------
Non-performing loans that are current to terms*
(11 loans or leases at March 31, 2010 and 12
loans or leases at December 31, 2009) $ 1,916,000 $ 2,133,000
------------- -------------
Non-performing loans that are past due (43
loans or leases at March 31, 2010 and 40 loans
or leases at December 31, 2009) 16,500,000 18,831,000
------------- -------------
Loans or leases greater than 90 days past due
(1 loan at March 31, 2010) 11,000 -
------------- -------------
Other real estate owned (net) (18 properties
at March 31, 2010 and 13 properties at
December 31, 2009) 3,271,000 2,508,000
------------- -------------
------------- -------------
$ 21,698,000 $ 23,472,000
------------- -------------
* loans that are current (less than 30 days past due) pursuant to original
or modified terms
The Company evaluates non-performing loans for impairment and assigns
specific reserves when necessary. At March 31, 2010, specific reserves of
$1,378,000 were held on the non-performing loans. In addition, there were
10 loans and leases totaling $2,513,000 that are included in the
$18,427,000 of non-performing loans and leases, that have been modified and
considered troubled debt restructures. All of the loans and leases
considered troubled debt restructures are considered impaired and have been
evaluated according to the Company's best practices, which follows the
guidance established by Generally Accepted Accounting Principles and
Regulatory requirements. There were no loans or leases reported as
troubled debt restructures as of March 31, 2009.
Other Real Estate Owned
At March 31, 2010, the Company had 18 other real estate owned ("OREO")
properties totaling $3,271,000. This compares to 8 properties totaling
$4,478,000 at March 31, 2009 and 13 totaling $2,508,000 at December 31,
2009. During the first quarter of 2010, the Company sold 2 properties for
a loss of $25,000 and added 7 properties with loan balances totaling
$1,911,000. The properties added during the quarter were simultaneously
written down to fair value, net of estimated selling costs, by $209,000
leaving a net value of $1,702,000. The Company periodically obtains
property valuations to determine whether the recorded book value is
considered fair value. During the first quarter of 2010, this valuation
process resulted in the Company reducing the book value of some properties
by $223,000. At December 31, 2009 the OREO reserve was at $15,000 and at
March 31, 2009 and 2010, the reserve balance was zero.
Deposits and Borrowed Funds
Total deposits as of March 31, 2010 increased $32,203,000 (7.4%) to
$469,144,000 from $436,941,000 as of March 31, 2009, but decreased $611,000
(0.1%) from $469,755,000 as of December 31, 2009. Core deposits as of
March 31, 2010 increased $45,231,000 (15.3%) to $340,396,000 from
$295,165,000 as of March 31, 2009 and increased $4,066,000 (1.2%) from
$336,330,000 as of December 31, 2009. The Company considers all non time
deposits as core deposits.
Noninterest-bearing deposits increased $3,626,000 (3.2%) to $116,321,000 as
of March 31, 2010 from $112,695,000 as of March 31, 2009, but decreased
$2,007,000 (1.7%) from $118,328,000 as of December 31, 2009.
Interest-bearing deposits increased $28,577,000 (8.8%) to $352,823,000 as
of March 31, 2010 from $324,246,000 as of March 31, 2009 and increased
$1,396,000 (0.4%) from $351,427,000 as of December 31, 2009. Other
borrowings, which include both short- and long-term borrowings, decreased
$27,121,000 (55.8%) to $21,500,000 as of March 31, 2010 from $48,621,000 as
of March 31, 2009 and decreased $10,000,000 (31.7%) from $31,500,000 at
December 31, 2009.
Noninterest Income and Expense
Noninterest income for the first quarter of 2010 decreased $49,000 (9.6%)
to $461,000 from $510,000 for the first quarter of 2009 and noninterest
expense for the first quarter of 2010 increased $584,000 (16.2%) to
$4,185,000 from $3,601,000 for the first quarter of 2009. Much of the
increase in noninterest expense reflects costs associated with the
Company's OREO, legal fees, and increased costs of FDIC insurance. The
total OREO-related expense for the three months ended March 31, 2010 was
$381,000 compared to $117,000 for the same period in 2009. In addition,
legal fees increased by $103,000 from a net recovery of $4,000 for the
three months ended March 31, 2009 to $99,000 in expense for the three
months ended March 31, 2010. FDIC insurance was $319,000 for the three
months ended March 31, 2010 up $245,000 (331.0%) from $74,000 for the three
months ended March 31, 2009. The fully taxable equivalent efficiency ratio
for the first quarter of 2010 increased to 65.56% from 50.97% for the first
quarter of 2009.
Income Taxes
The Company recorded income taxes for the quarter ended March 31, 2010 of
$101,000, compared to $736,000, or an effective tax rate of 24.8%, for the
quarter ended March 31, 2010, a decrease from 36.5% for the first quarter
of 2009. The lower effective tax rate in 2010 results from the Company
realizing the benefits of tax free income related to such items as
municipal bonds and bank owned life insurance against an overall lower
amount of taxable income.
Capital
Total shareholders' equity at March 31, 2010 was $88,672,000, up
$24,743,000 (38.7%) from $63,929,000 at March 31, 2009. The large increase
is due, in part, to a successful common stock offering in December 2009
from which the Company received net proceeds of $23.9 million, after
underwriting discounts, commissions and other expenses. The Company's
subsidiary, American River Bank, remains above the well-capitalized
regulatory guidelines. At March 31, 2010, American River Bank's Leverage
ratio was 11.66%, the Tier 1 Risk Based ratio was 16.87% and the Total Risk
Based Capital ratio was 18.13%. At March 31, 2009, American River Bank's
Leverage ratio was 8.36%, Tier 1 Risk Based ratio was 10.56% and the Total
Risk Based Capital ratio was 11.81%.
At March 31, 2010, American River Bankshares' Leverage ratio was 12.46%,
the Tier 1 Risk Based ratio was 18.00% and the Total Risk Based Capital
ratio was 19.26%. At March 31, 2009, American River Bankshares' leverage
ratio was 8.29%, the Tier 1 Risk Based ratio was 10.45% and the Total Risk
Based Capital ratio was 11.70%.
Performance Metrics
Performance measures for the first quarter of 2010 (annualized): the Return
on Average Assets (ROAA) was 0.21%, Return on Average Equity (ROAE) was
1.41% and Return on Average Tangible Equity (ROATE) was 1.74% compared to
the ROAA of 0.90%, ROAE of 8.15% and ROATE of 11.16%, during the first
quarter of 2009.
Earnings Conference Call
The first quarter earnings conference call will be held Thursday, April 22,
2010 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). David T. Taber,
President and CEO, and Mitchell A. Derenzo, Executive Vice President and
Chief Financial Officer, both of American River Bankshares, will lead a
live forty-five minute presentation and answer questions. Shareholders,
analysts and other interested parties are invited to join the call by
dialing (800) 909-7810. No conference ID number required. A recording of
the call will be available twenty-four hours after the call's completion on
http://amrb.podbean.com.
About American River Bankshares
American River Bankshares (
American River Bankshares
Condensed Consolidated Balance Sheet (Unaudited)
(Dollars in thousands)
March 31, December 31, March 31,
ASSETS 2010 2009 2009
------------ ------------ ------------
Cash and due from banks $ 48,250 $ 58,493 $ 9,115
Federal funds sold - - -
Interest-bearing deposits in
banks - - 2,772
Investment securities 128,977 112,935 92,322
Loans & leases:
Real estate 281,008 286,565 300,935
Commercial 65,384 72,621 88,377
Lease financing 3,609 3,920 4,578
Other 21,713 21,725 22,912
Deferred loan and lease
origination fees, net (543) (600) (640)
Allowance for loan and lease
losses (8,380) (7,909) (5,839)
------------ ------------ ------------
Loans and leases, net 362,791 376,322 410,323
------------ ------------ ------------
Bank premises and equipment 2,010 2,094 2,204
Goodwill and intangible assets 16,904 16,965 17,162
Other real estate owned, net 3,271 2,508 4,478
Accrued interest receivable and
other assets 21,437 25,101 17,959
============ ============ ============
$ 583,640 $ 594,418 $ 556,335
============ ============ ============
LIABILITIES & SHAREHOLDERS'
EQUITY
Noninterest-bearing deposits $ 116,321 $ 118,328 $ 112,695
Interest checking 48,179 50,154 43,815
Money market 134,896 131,614 106,847
Savings 41,000 36,234 31,808
Time deposits 128,748 133,425 141,776
------------ ------------ ------------
Total deposits 469,144 469,755 436,941
------------ ------------ ------------
Short-term borrowings 9,500 14,500 27,121
Long-term borrowings 12,000 17,000 21,500
Accrued interest and other
liabilities 4,324 5,818 6,844
------------ ------------ ------------
Total liabilities 494,968 507,073 492,406
Total shareholders' equity 88,672 87,345 63,929
============ ============ ============
$ 583,640 $ 594,418 $ 556,335
============ ============ ============
Ratios:
Nonperforming loans and leases to
total loans and leases 4.96% 5.46% 1.55%
Net chargeoffs to average loans
and leases (YTD) 1.25% 1.62% 1.27%
Allowance for loan and lease loss
to total loans and leases 2.26% 2.06% 1.40%
American River Bank Capital
Ratios:
Leverage Ratio 11.66% 11.65% 8.36%
Tier 1 Risk-Based Capital Ratio 16.87% 16.04% 10.56%
Total Risk-Based Capital Ratio 18.13% 17.30% 11.81%
American River Bankshares Capital
Ratios:
Leverage Ratio 12.46% 12.45% 8.29%
Tier 1 Risk-Based Capital Ratio 18.00% 17.13% 10.45%
Total Risk-Based Capital Ratio 19.26% 18.39% 11.70%
American River Bankshares
Condensed Consolidated Statement of Operations (Unaudited)
(Dollars in thousands, except share and per share data)
First First
Quarter Quarter %
2010 2009 Change
------------ ------------ ----------
Interest income $ 6,714 $ 7,751 (13.38)%
Interest expense 942 1,412 (33.29)%
------------ ------------
Net interest income 5,772 6,339 (8.94)%
Provision for loan and lease loss 1,641 1,229 33.52 %
Total noninterest income 461 510 (9.61)%
Total noninterest expense 4,185 3,601 16.22 %
------------ ------------
Income before provision for
income taxes 407 2,019 (79.84)%
Provision for income taxes 101 736 (86.28)%
============ ============
Net income $ 306 $ 1,283 (76.15)%
============ ============
Basic earnings per share $ 0.03 $ 0.22 (86.36)%
Diluted earnings per share $ 0.03 $ 0.22 (86.36)%
Avearge diluted shares
outstanding 9,845,533 5,824,407
Net interest margin as a
percentage of
average earning assets 4.73% 5.08%
Operating Ratios:
Return on average assets 0.21% 0.90%
Return on average equity 1.41% 8.15%
Return on average tangible
equity 1.74% 11.16%
Efficiency ratio (fully
taxable equivalent) 65.56% 50.97%
American River Bankshares
Condensed Consolidated Statement of Income (Unaudited)
Trailing Four Quarters
(Dollars in thousands, except share and per share data)
First Fourth Third Second
Quarter Quarter Quarter Quarter
2010 2009 2009 2009
---------- ---------- ---------- ----------
Interest income $ 6,714 $ 6,887 $ 7,163 $ 7,321
Interest expense 942 1,140 1,235 1,303
---------- ---------- ---------- ----------
Net interest income 5,772 5,747 5,928 6,018
Provision for loan and
lease loss 1,641 2,500 1,001 3,800
Total noninterest income 461 513 597 649
Total noninterest expense 4,185 3,703 4,268 4,239
---------- ---------- ---------- ----------
Income before provision for
(benefit from) income
taxes 407 57 1,256 (1,372)
Provision for (benefit
from) income taxes 101 (123) 429 (668)
========== ========== ========== ==========
Net income (loss) $ 306 $ 180 $ 827 $ (704)
========== ========== ========== ==========
Basic earnings (loss) per
share $ 0.03 $ 0.03 $ 0.14 $ (0.12)
Diluted earnings (loss) per
share $ 0.03 $ 0.03 $ 0.14 $ (0.12)
Net interest margin as a
percentage of
average earning assets 4.73% 4.74% 4.91% 4.87%
Avearge diluted shares
outstanding 9,845,533 6,725,359 5,797,533 5,797,533
Shares outstanding-end of
period 9,845,533 9,845,533 5,797,533 5,797,533
Operating Ratios
(annualized):
Return on average
assets 0.21% 0.12% 0.59% -0.50%
Return on average
equity 1.41% 1.03% 5.22% -4.41%
Return on average
tangible equity 1.74% 1.37% 7.17% -6.01%
Efficiency ratio
(fully taxable
equivalent) 65.56% 57.58% 63.71% 61.81%
American River Bankshares
Analysis of Net Interest Margin on Earning Assets
(Taxable Equivalent Basis)
(Dollars in thousands, except share and per share data)
Three months ended
March 31, 2010 2009
Avg Avg Avg Avg
ASSETS Balance Interest Yield Balance Interest Yield
Loans and leases $ 378,317 $ 5,837 6.26% $ 417,779 $ 6,718 6.52%
Taxable
investment
securities 105,426 708 2.72% 64,665 735 4.61%
Tax-exempt
investment
securities 16,374 225 5.57% 26,516 351 5.37%
Corporate stock 25 1 16.22% 27 - 0.00%
Federal funds
sold - - - 38 - 0.00%
Interest-bearing
deposits in
banks - - - 3,643 33 3.67%
--------- -------- --------- --------
Total earning
assets 500,142 6,771 5.49% 512,668 7,837 6.20%
--------- -------- --------- --------
Cash & due from
banks 46,942 28,654
Other assets 45,560 42,063
Allowance for
loan & lease
losses (8,301) (5,784)
========= =========
$ 584,343 $ 577,601
========= =========
LIABILITIES &
SHAREHOLDERS'
EQUITY
Interest checking
and money market $ 181,608 $ 350 0.78% $ 150,408 $ 318 0.86%
Savings 38,075 57 0.61% 32,423 54 0.68%
Time deposits 128,367 391 1.24% 133,655 709 2.15%
Other borrowings 23,500 144 2.49% 77,645 331 1.73%
--------- -------- --------- --------
Total
interest
bearing
liabilities 371,550 942 1.03% 394,131 1,412 1.45%
--------- -------- --------- --------
Noninterest
bearing demand
deposits 118,175 113,582
Other liabilities 6,526 6,068
--------- ---------
Total
liabilities 496,251 513,781
Shareholders'
equity 88,092 63,820
========= =========
$ 584,343 $ 577,601
========= ======== ======= ========= ======== =======
Net interest
income & margin $ 5,829 4.73% $ 6,425 5.08%
======== ======= ======== =======
Contact Information: Investor Contact: Mitchell A. Derenzo Chief Financial Officer American River Bankshares 916-231-6723 Media Contact: Diana Walery Corporate Communications American River Bankshares 916-231-6717