May 18, 2024
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American Riviera reports smaller net income, adds hundreds of new depositors

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American Riviera Bank, based in Santa Barbara, reported a net income of $3 million for the quarter ending on March 31, representing a decrease of 6% over the same period last year. 

Earnings per share for the first quarter totaled 52 cents per share, compared with 55 cents per share this time last year, according to the earnings statement put out by the bank on April 27. 

With the closure of Silicon Valley Bank looming on everyone’s mind, president and CEO Jeff DeVine assuaged fears by saying, “Our clients appreciate the Bank’s relationship business model of serving depositors and providing loans on the Central Coast of California as we have for the past 17 years.”

He acknowledged market volatility has led to an increase in opportunities for the bank to conduct business with many newer clients. “Our dedicated and knowledgeable team of bankers opened over 750 new deposit accounts this quarter,” said DeVine.

During the first quarter of 2023, American Riviera opened 784 new deposit accounts compared to 657 during the same time last year. 

Still, overall total deposits fell year-over-year. Total deposits were $1.1 billion in the first quarter, representing a decrease of $63.9 million or 5.5% from December 31, 2022, and a decrease of $146.7 million or 11.8% since March 31, 2022.

American Riviera said in a press release, the reduction in deposit balances is primarily due to “some clients deciding to reinvest their excess cash in non-FDIC insured, external investment products.”

Total loans hit $924.8 million at the end of the first quarter, an uptick of $136.7 million or 17.4% from March 2022. The bank’s loan-to-deposit ratio as of March 31 sat at 84.1%

Non-interest-bearing demand deposits reached $460.7 million at the end of the first quarter, a small decrease of $21 million or 4.4% from this time last year. Non-interest-bearing demand deposits increased to 41.9% of total deposits, up 38.6% one year ago. 

Interest-bearing deposits totaled $639 million at the end of the first quarter, a decrease of $125.8 million or 16.4% from March 31, 2022. The Federal Reserve’s actions over the last year to allow interest rates to rapidly rise have caused a shift in interest-bearing depositor behavior as some clients have reinvested their excess cash into non-FDIC-insured, external investment products.

American Riviera, which is publicly traded, closed the trading day at $16 per share.