Santa Barbara-based American Riviera Bank reported net income of $4.1 million in 2016, or 94 cents per share, up from $1.3 million in 2015, or 48 cents per share, as the acquisition of The Bank of Santa Barbara has paid dividends, the company said.
The all-stock transaction, completed in January 2016, created a combined institution with more than $400 million in assets and three branches in downtown Santa Barbara, Montecito and Goleta. Each share of The Bank of Santa Barbara common stock was converted into the right to receive 0.8546 shares of American Riviera Bank common stock. The Bank of Santa Barbara common shareholders’ compensation is approximately $17.9 million.
“We are now positioned to better serve our clients and the community with a larger legal lending limit, expanded branch network, and a full line of lending products including SBA, residential mortgage, construction and commercial lending,” American Riviera President and CEO Jeff DeVine said in a news release. “Our growth has also provided great benefit to our shareholders. Earnings per share increased 96 percent from the prior year and our stock closed at $15.10 per share on Dec. 31, 2016, which represents a 34 percent increase from the closing price on Dec. 31, 2015.”
The bank reported record return on average assets of 0.95 percent and return on average equity of 8.65 percent in 2016, increases from 0.56 percent and 4.67 percent, respectively, from 2015.
American Riviera reported $356 million in total loans and noninterest bearing demand deposits were 34 percent of the $392 million in total deposits.
It had a tier 1 capital ratio of 12 percent.
American Riviera shares went up 10 cents to $15.45 on Jan. 31.
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