May 23, 2024
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American Riviera sees net income slip to start 2024

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Santa Barbara-based American Riviera Bank saw net income take a slight dip in the first quarter of 2024.

Announced April 24, ARB noted net income of $2.2 million for the quarter ended March 31, down from $3 million in the same quarter a year ago. According to a press release, the dip in net income could be attributed to increased interest expense and decreased interest income on cash and due from banks.

The bank continues to grow interest and fees on loans sequentially over the last four quarters from $11.2 million in the first quarter of 2023 to $12.7 million in the first quarter of 2024, representing a $1.5 million or 13.1% increase. 

However, the cost of funding has also increased sequentially from the historically low levels that existed prior to the Federal Reserve’s aggressive rate increase policy. 

Total interest expense has increased from $1.7 million in the first quarter of 2023 to $4.3 million in the first quarter of 2024, a $2.6 million or 156.3% increase.

Return on average assets for the first quarter was 0.69% and return on average equity was 8.65%.

Total loans were $950.8 million, an increase of $4.4 million or 0.5% from the prior quarter-end, and an increase of $26.1 million or 2.8% from the first quarter of 2023. The bank’s loan-to-deposit ratio was 90.6%.

Total deposits were $1.05 billion, a decrease of $50.2 million or 4.6% from the first quarter of 2023. And, non-interest-bearing demand deposits represent 39.6% of total deposits, and total demand deposits represent 52.4% of total deposits, respectively.

“With our newly enhanced online banking technology we have been able to launch new products and services to meet the needs of our existing and prospective clients,” CEO Jeff Devine said in a press release. 

“Competitor consolidation has provided attractive opportunities to hire relationship bankers, and we look forward to announcing continued expansion on the Central Coast of California.”