American Riviera Bank reports Q2 results

By
Jorge Mercado

Wednesday, July 31, 2024

Santa Barbara-based American Riviera Bank reported a slight decline in net income in the second quarter of 2024.

As reported July 24, ARB reported net income of $2.5 million for the quarter ended June 30, down from $2.7 million in the same quarter a year earlier.

According to a press release, the decline in net income can be attributed to higher interest costs on deposits and loans.

The bank continued to see sequential growth in loan interest and fees over the past four quarters, from $11.2 million in Q1 2023 to $12.7 million in Q1 2024, an increase of $1.5 million or 13.1%.

Total loans amounted to $963.7 million, an increase of $12.9 million, or 1.4%, compared to the end of the previous quarter and an increase of $18.3 million, or 1.9%, compared to the second quarter of 2023.

Total deposits were $1.07 billion, a decrease of $14.5 million, or 1.3%, compared to the same quarter last year.

In the second quarter, the return on average assets for the second quarter ended June 30 was 0.77%, and the return on average equity was 9.57%.

Furthermore, non-interest bearing demand deposits account for 39.8% of total deposits and total demand deposits account for 50.1% of total deposits.

“We continue to expand and grow our customer base, opening more than 1,100 new demand deposit and savings accounts in the first half of the year. We opened a branch in Atascadero just a few weeks ago and have already collected more than $5 million in new deposits,” CEO Jeff Devine said in a press release.

“Demand for loans is growing, allowing us to meet customer needs, support the development of our communities and increase shareholder returns.”