Finbriefs: American Riviera Bank, LTC, PennyMac earnings
American Riviera Bank reports lower net income in Q3
Santa Barbara-based American Riviera Bank reported a net income of $2.6 million in the third quarter of 2023, down from $3 million in the same quarter a year ago, the organization reported on Oct. 26.
So far through the year, net income is also down as through nine months in 2023, American Riviera has generated $8.3 million compared to $9.5 million during the same period a year ago.
In a press release, American Riviera said the bank continues to grow interest and fees on loans over the last four quarters.
Still, the cost of funding has also increased from the historically low levels that existed before the Federal Reserve’s aggressive rate increase policy.
“Although net income year to date in 2023 compared to 2022 has been impacted by rising deposit costs, our company was able to increase shareholders’ equity by over 12% in the last year,” Jeff DeVine, president and CEO of American Riviera, said in a press release.
“Our core and digital banking upgrade scheduled for completion in the fourth quarter of 2023 is expected to increase internal efficiencies and enhance client functionality in 2024.”
Total loans were $941.1 million as of Sept. 30, a decrease of $4.3 million or 0.5% from the prior quarter-end. Moreover, the Bank’s loan-to-deposit ratio was 85.4%.
Non-interest-bearing demand deposits totaled $457.7 million in the third quarter, an increase of $15.6 million or 3.5% from the end of the second quarter but a decrease of $62.1 million from the same quarter a year ago.
Non-interest-bearing demand deposits represent 41.6% of total deposits by the end of the third quarter.
American Riviera shares closed the trading day on Oct. 30 at $15.35 per share, up nearly 2% from Oct. 26.
Westlake Village-based LTC Properties, a real estate investment trust that primarily invests in seniors housing and healthcare properties, reported a net income of $22 million in the third quarter, up from $13 million in the same quarter a year ago.
Reported after the markets closed on Oct. 26, LTC shares are up about 1% as of close on Oct. 30, with the price closing at $31.39.
PENNYMAC FINANCIAL EARNINGS
Westlake Village-based PennyMac Financial Services reported net income of $92.9 million for the third quarter of 2023, or $1.77 per share, on revenue of $400.3 million, the company announced on Oct. 26.
Book value per share increased to $71.56 from $69.77 as of the end of the second quarter.
The company’s board of directors declared a third-quarter cash dividend of $0.20 per share, payable on Nov. 22 to common stockholders of record as of Nov. 13.
PennyMac Financial shares closed at $67.95 on Oct. 30, up 6.3% from Oct. 26.
PENNYMAC MORTGAGE EARNINGS
Westlake Village-based PennyMac Mortgage Investment Trust reported net income of $51 million in the third quarter on net investment income of $163.4 million, the firm announced on Oct. 26.
PennyMac Mortgage produced a 14% annualized return on equity in the third quarter, reflecting strong financial results and growth in book value per share from the prior quarter, Chairman and CEO David Spector said in a press release.
Book value per share increased to $16.01 from $15.81 as of the end of the second quarter.
The company also invested $64 million into opportunistic investments throughout the quarter, including $7 million into government-sponsored enterprise (GSE) credit risk transfer (CRT) bonds and $58 million into senior mezzanine bonds from investor loans and jumbo securitizations.
PennyMac Mortgage shares closed at $12.40 on Oct. 30, up 12.4% from Oct. 26.
Amgen announced on Oct. 24 that its board of directors declared a $2.13 per share dividend for the fourth quarter of 2023.
The dividend will be paid on Dec. 8 to all stockholders of record as of the close of business on Nov. 17 the company said in a press release.