American Riviera Bank saw its net income rise sharply this year, with a 46 percent increase in net income in third quarter earnings year-over-year.
The Santa Barbara-based bank reported $2.26 million in net income the quarter, or 45 cents per share. For the same quarter in 2019, the bank had $1.55 million in net income, or 31 cents per share.
American Riviera attributed the increase to “tremendous” growth in new and existing relationships, as it had $930 million in total assets at the end of the quarter, a 33 percent year-over-year increase. Much of the growth was driven by federal Paycheck Protection Program loans, as total loans including PPP loans rose 32 percent from Sept. 30, 2019 to the same date in 2020. Total deposits increased 37 percent over the year, and non-interest bearing demand deposit accounts increased 59 percent.
“Despite significant uncertainty in the economy, the bank generated record earnings in the third quarter, reflecting the diversity of our business model and growing market share position,” Jeff DeVine, the bank’s president and CEO, in a news release. “Thanks to the hard work of our employees and our solid financial footing, we have been able to serve as economic first responders to our clients and Central Coast communities impacted by the COVID-19 pandemic.”
The bank also noted it has seen a “significant” decrease in the amount of clients asking for temporary deferrals. At the end of the third quarter, $18 million in loans were being deferred, while at the end of the second quarter, $108 million in loans were being deferred.