Non-performing assets Balance
------------
Non-performing loans that are current to terms*
(12 loans or leases) $ 2,133,000
Non-performing loans that are past due (40 loans or leases) 18,831,000
Other real estate owned (net) (13 properties) 2,508,000
------------
$ 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 December 31, 2009, specific reserves
of $1,421,000 were held on the non-performing loans considered to be
impaired. In addition, there were 13 loans and leases totaling $3,133,000
that are included in the $20,964,000 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 accordingly. There were no loans or
leases considered troubled debt restructures as of December 31, 2008.
Other Real Estate Owned
At December 31, 2009, the Company had 13 other real estate owned ("OREO")
properties totaling $2,508,000. This compares to 3 properties totaling
$2,158,000 at December 31, 2008 and 15 totaling $3,484,000 at September 30,
2009. During the fourth quarter of 2009, the Company sold 4 properties for
a loss of $26,000 and added 2 properties with loan balances totaling
$489,000. The 3 properties added during the quarter were simultaneously
written down to net fair value by $115,000 leaving a net value of $374,000.
The Company periodically obtains property valuations to determine whether
the recorded book value is considered fair value. During the fourth
quarter of 2009, this valuation process resulted in the Company reducing
the book value of some properties with a charge to the reserve and as a
result added $59,000 to the OREO reserve. At September 30, 2009, the OREO
reserve was at zero and at December 31, 2009, the reserve balance was
$15,000.
Deposits and Borrowed Funds
Total deposits as of December 31, 2009 increased $32,694,000 (7.5%) to
$469,755,000 from $437,061,000 as of December 31, 2008, and increased
$4,838,000 (1.0%) from $464,917,000 as of September 30, 2009.
Noninterest-bearing deposits decreased $815,000 (0.7%) to $118,328,000 as
of December 31, 2009 from $119,143,000 as of December 31, 2008 and
decreased slightly from $118,418,000 as of September 30, 2009.
Interest-bearing deposits increased $33,509,000 (10.5%) to $351,427,000 as
of December 31, 2009 from $317,918,000 as of December 31, 2008 and
increased $4,928,000 (1.4%) from $346,499,000 as of September 30, 2009.
Other borrowings, which include both short- and long-term borrowings,
decreased $25,731,000 (45.0%) to $31,500,000 as of December 31, 2009 from
$57,231,000 as of December 31, 2008 and decreased $2,500,000 (7.4%) from
$34,000,000 at September 30, 2009.
Noninterest Income and Expense
Noninterest income for the fourth quarter of 2009 increased $15,000 (3.0%)
to $513,000 from $498,000 for the fourth quarter of 2008 and for the twelve
months ended December 31, 2009 increased $101,000 (4.7%) to $2,269,000 from
$2,168,000 for the twelve months ended December 31, 2008.
Noninterest expense for the fourth quarter of 2009 increased $467,000
(14.4%) to $3,703,000 from $3,236,000 for the fourth quarter of 2008. Much
of this increase reflects costs associated with the Company's OREO, legal
fees, and increased costs of FDIC insurance. The total OREO expense for
the three months ended December 31, 2009 was $123,000 compared to zero for
the same period in 2008. In addition, legal fees increased by $103,000
from $40,000 for the three months ended December 31, 2008 to $143,000 for
the three months ended December 31, 2009. FDIC insurance was $195,000 for
the three months ended December 31, 2009, up $106,000 (119.1%) from $89,000
for the three months ended December 31, 2008.
For the twelve months ended December 31, 2009 noninterest expense increased
$1,610,000 (11.3%) to $15,811,000 from $14,201,000 for the twelve months
ended December 31, 2008. The total OREO expense for the twelve months ended
December 31, 2009 was $1,441,000 compared to $1,000 for the same period in
2008. In addition, FDIC insurance increased by $619,000 from $151,000 for
the twelve months ended December 31, 2008 to $770,000 in 2009. Total
salaries and benefits decreased in 2009 by $508,000 (5.3%) from 2008 due to
a reduction of 6 full-time equivalent (4.9%) from an average of 123 in 2008
to an average of 117 in 2009.
The fully taxable equivalent efficiency ratio for the fourth quarter of
2009 increased to 57.58% from 45.03% for the fourth quarter of 2008 and for
the twelve months ended December 31, 2009 increased to 58.45% from 48.92%
for the twelve months ended December 31, 2008.
Income Taxes
The Company recorded a benefit for income taxes for the quarter ended
December 31, 2009 of $123,000, compared to a tax provision of $1,047,000,
or an effective tax rate of 36.4%, for the quarter ended December 31, 2008.
For the twelve months ended December 31, 2009, income taxes were $374,000,
resulting in an effective tax rate of 19.1%, compared to $4,578,000 or an
effective tax rate of 37.7%, for the twelve months ended December 31, 2008.
The lower effective tax rate in 2009 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. The tax credit recorded in the fourth quarter of 2009 was the
result of a credit related to tax free interest on loans qualifying for the
California Enterprise Zone credit.
Capital
Total shareholders' equity at December 31, 2009 was $87,345,000, up
$23,898,000 (37.7%) from $63,447,000 at December 31, 2008. The large
increase is due, in part, to a successful common stock offering 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 December 31, 2009, American River Bank's Leverage ratio was
11.65%, the Tier 1 Risk Based ratio was 16.04% and the Total Risk Based
Capital ratio was 17.30%. These ratios increased from the December 31,
2008, American River Bank Leverage ratio of 8.40%, Tier 1 Risk Based ratio
of 10.35% and the Total Risk Based Capital ratio of 11.60%.
At December 31, 2009, American River Bankshares' Leverage ratio was 12.45%,
the Tier 1 Risk Based ratio was 17.13% and the Total Risk Based Capital
ratio was 18.39%. These ratios increased from the December 31, 2008,
American River Bankshares leverage ratio of 8.32%, the Tier 1 Risk Based
ratio of 10.25% and the Total Risk Based Capital ratio of 11.50%.
Performance Metrics
Performance measures for the fourth quarter of 2009 (annualized): the
Return on Average Assets (ROAA) was 0.12%, Return on Average Equity (ROAE)
was 1.03% and Return on Average Tangible Equity (ROATE) was 1.37% compared
to the ROAA of 1.28%, ROAE of 11.71% and ROATE of 16.23%, during the fourth
quarter of 2008. For the twelve months ended December 31, 2009, the
Company had a ROAA of 0.28%, ROAE of 2.44% and ROATE of 3.31% compared to a
ROAA of 1.32%, ROAE of 12.39% and ROATE of 17.32% for the twelve months
ended December 31, 2008.
Earnings Conference Call
The fourth quarter earnings conference call will be held Wednesday, January
27, 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) 926-6502. 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, except share and per share data)
December December
31, 31, %
ASSETS 2009 2008 Change
--------- --------- --------
Cash and due from banks $ 58,493 $ 15,170 285.58 %
Federal funds sold - - - %
Interest-bearing deposits in banks - 4,248 - %
Investment securities 112,935 91,621 23.26 %
Loans & leases:
Real estate 286,565 300,934 (4.77)%
Commercial 72,621 90,625 (19.87)%
Lease financing 3,920 4,475 (12.40)%
Other 21,725 22,811 (4.76)%
Deferred loan and lease origination
fees, net (600) (571) 5.08 %
Allowance for loan and lease losses (7,909) (5,918) 33.64 %
--------- ---------
Loans and leases, net 376,322 412,356 (8.74)%
--------- ---------
Bank premises and equipment 2,094 2,115 (0.99)%
Goodwill and intangible assets 16,965 17,228 (1.53)%
Other real estate owned, net 2,508 2,158 16.22 %
Accrued interest receivable and other
assets 25,101 18,261 37.46 %
========= =========
$ 594,418 $ 563,157 5.55 %
========= =========
LIABILITIES &
SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $ 118,328 $ 119,143 (0.68)%
Interest checking 50,154 45,581 10.03 %
Money market 131,614 105,919 24.26 %
Savings 36,234 33,438 8.36 %
Time deposits 133,425 132,980 0.33 %
--------- ---------
Total deposits 469,755 437,061 7.48 %
--------- ---------
Short-term borrowings 14,500 43,231 (66.46)%
Long-term borrowings 17,000 14,000 21.43 %
Accrued interest and other liabilities 5,818 5,418 7.38 %
--------- ---------
Total liabilities 507,073 499,710 1.47 %
Total shareholders' equity 87,345 63,447 37.67 %
========= =========
$ 594,418 $ 563,157 5.55 %
========= =========
Ratios:
Nonperforming loans and leases to total
loans and leases 5.46% 1.49%
Net chargeoffs to average loans and leases
(YTD) 1.62% 0.42%
Allowance for loan and lease loss to total
loans and leases 2.06% 1.41%
American River Bank Capital Ratios:
Leverage Ratio 11.65% 8.40%
Tier 1 Risk-Based Capital Ratio 16.04% 10.35%
Total Risk-Based Capital Ratio 17.30% 11.60%
American River Bankshares Capital Ratios:
Leverage Ratio 12.45% 8.32%
Tier 1 Risk-Based Capital Ratio 17.13% 10.25%
Total Risk-Based Capital Ratio 18.39% 11.50%
American River Bankshares
Condensed Consolidated Statement of Operations (Unaudited)
(Dollars in thousands, except share and per share data)
Fourth Fourth For the year
Quarter Quarter % ended December 31, %
2009 2008 Change 2009 2008 Change
-------- -------- ------- -------- -------- -------
Interest income $ 6,887 $ 8,119 (15.17)% $ 29,122 $ 33,553 (13.21)%
Interest
expense 1,140 1,673 (31.86)% 5,090 7,628 (33.27)%
-------- -------- -------- --------
Net interest
income 5,747 6,446 (10.84)% 24,032 25,925 (7.30)%
Provision for
loan and lease
loss 2,500 835 199.40 % 8,530 1,743 389.39 %
Total
noninterest
income 513 498 3.01 % 2,269 2,168 4.66 %
Total
noninterest
expense 3,703 3,236 14.43 % 15,811 14,201 11.34 %
-------- -------- -------- --------
Income before
provision for
income taxes 57 2,873 (98.02)% 1,960 12,149 (83.87)%
(Benefit from)
provision for
income taxes (123) 1,047 (111.75)% 374 4,578 (91.83)%
======== ======== ======== ========
Net income $ 180 $ 1,826 (90.14)% $ 1,586 $ 7,571 (79.05)%
======== ======== ======== ========
Basic earnings
per share $ 0.03 $ 0.32 (90.63)% $ 0.26 $ 1.30 (80.00)%
Diluted
earnings per
share $ 0.03 $ 0.32 (90.63)% $ 0.26 $ 1.30 (80.00)%
Avearge diluted
shares
outstanding 6,725,359 5,794,733 6,038,022 5,825,200
Net interest
margin as a
percentage of
average earning
assets 4.74% 5.04% 4.90% 5.03%
Operating
Ratios:
Return on
average
assets 0.12% 1.28% 0.28% 1.32%
Return on
average
equity 1.03% 11.71% 2.44% 12.39%
Return on
average
tangible
equity 1.37% 16.23% 3.31% 17.32%
Efficiency
ratio
(fully
taxable
equivalent) 57.58% 45.03% 58.45% 48.92%
Note: Earnings per share and shares outstanding have been adjusted for a
5% stock dividend distributed in 2008
American River Bankshares
Condensed Consolidated Statement of Income (Unaudited)
Trailing Four Quarters
(Dollars in thousands, except share and per share data)
Fourth Third Second First
Quarter Quarter Quarter Quarter
2009 2009 2009 2009
--------- --------- --------- ---------
Interest income $ 6,887 $ 7,163 $ 7,321 $ 7,751
Interest expense 1,140 1,235 1,303 1,412
--------- --------- --------- ---------
Net interest income 5,747 5,928 6,018 6,339
Provision for loan and lease
loss 2,500 1,001 3,800 1,229
Total noninterest income 513 597 649 510
Total noninterest expense 3,703 4,268 4,239 3,601
--------- --------- --------- ---------
Income before provision for
(benefit from) income taxes 57 1,256 (1,372) 2,019
(Benefit from) provision for
income taxes (123) 429 (668) 736
========= ========= ========= =========
Net income (loss) $ 180 $ 827 $ (704) $ 1,283
========= ========= ========= =========
Basic earnings (loss) per share $ 0.03 $ 0.14 $ (0.12) $ 0.22
Diluted earnings (loss) per
share $ 0.03 $ 0.14 $ (0.12) $ 0.22
Net interest margin as a
percentage of average earning
assets 4.74% 4.91% 4.87% 5.08%
Average diluted shares
outstanding 6,725,359 5,797,533 5,797,533 5,824,407
Shares outstanding-end of
period 9,845,533 5,797,533 5,797,533 5,797,533
--------- --------- --------- ---------
Operating Ratios (annualized):
Return on average assets 0.12% 0.59% -0.50% 0.90%
Return on average equity 1.03% 5.22% -4.41% 8.15%
Return on average tangible
equity 1.37% 7.17% -6.01% 11.16%
Efficiency ratio (fully
taxable equivalent) 57.58% 63.71% 61.81% 50.97%
--------- --------- --------- ---------
American River Bankshares
Analysis of Net Interest Margin on Earning Assets
(Taxable Equivalent Basis)
(Dollars in thousands, except share and per share data)
For the Year ended December 31,
2009 2008
Avg Avg Avg Avg
ASSETS Balance Interest Yield Balance Interest Yield
Loans and leases $ 404,539 $ 25,378 6.27% $ 410,293 $ 28,512 6.95%
Taxable
investment
securities 67,480 2,763 4.09% 79,675 3,711 4.66%
Tax-exempt
investment
securities 22,541 1,215 5.39% 27,102 1,428 5.27%
Corporate stock 28 6 21.43% 172 22 12.79%
Federal funds
sold 11 - - 486 10 2.06%
Interest-bearing
deposits in
banks 1,603 59 3.68% 4,838 222 4.59%
--------- ---------- --------- ----------
Total earning
assets 496,202 29,421 5.93% 522,566 33,905 6.47%
--------- ---------- --------- ----------
Cash & due from
banks 41,064 19,260
Other assets 42,208 39,330
Allowance for
loan & lease
losses (7,001) (6,110)
========= =========
$ 572,473 $ 575,046
========= =========
LIABILITIES &
SHAREHOLDERS'
EQUITY
Interest checking
and money market $ 163,141 $ 1,375 0.84% $ 164,531 $ 1,929 1.17%
Savings 34,392 229 0.67% 36,033 324 0.90%
Time deposits 137,601 2,399 1.74% 121,479 3,648 3.00%
Other borrowings 49,745 1,087 2.19% 59,560 1,727 2.90%
--------- ---------- --------- ----------
Total
interest
bearing
liabilities 384,879 5,090 1.32% 381,603 7,628 1.99%
--------- ---------- --------- ----------
Noninterest
bearing demand
deposits 117,594 126,125
Other liabilities 4,993 6,234
--------- ---------
Total
liabilities 507,466 513,962
Shareholders'
equity 65,007 61,084
========= =========
$ 572,473 $ 575,046
========= ========== ===== ========= ========== =====
Net interest
income & margin $ 24,331 4.90% $ 26,277 5.03%
========== ===== ========== =====
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 December 31,
2009 2008
Avg Avg Avg Avg
ASSETS Balance Interest Yield Balance Interest Yield
Loans and leases $ 390,042 $ 5,994 6.10% $ 417,945 $ 7,040 6.70%
Taxable
investment
securities 78,365 717 3.63% 66,354 765 4.59%
Tax-exempt
investment
securities 17,213 234 5.39% 26,025 354 5.41%
Corporate stock 28 - - 43 - -
Federal funds
sold - - - 321 1 1.24%
Interest-bearing
deposits in
banks - - - 4,529 46 4.04%
--------- ---------- --------- ----------
Total earning
assets 485,648 6,945 5.67% 515,217 8,206 6.34%
--------- ---------- --------- ----------
Cash & due from
banks 63,181 19,720
Other assets 39,718 39,904
Allowance for
loan & lease
losses (7,987) (6,272)
========= =========
$ 580,560 $ 568,569
========= =========
LIABILITIES &
SHAREHOLDERS'
EQUITY
Interest checking
and money market $ 181,509 $ 368 0.80% $ 157,941 $ 407 1.03%
Savings 35,833 57 0.63% 34,135 79 0.92%
Time deposits 138,009 502 1.44% 121,492 793 2.60%
Other borrowings 32,234 213 2.62% 64,961 394 2.41%
--------- ---------- --------- ----------
Total
interest
bearing
liabilities 387,585 1,140 1.17% 378,529 1,673 1.76%
--------- ---------- --------- ----------
Noninterest
bearing demand
deposits 123,010 121,726
Other liabilities 698 6,297
--------- ---------
Total
liabilities 511,293 506,552
Shareholders'
equity 69,267 62,017
========= =========
$ 580,560 $ 568,569
========= ========== ===== ========= ========== =====
Net interest
income & margin $ 5,805 4.74% $ 6,533 5.04%
========== ===== ========== =====
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