American River Holdings' Streak of Profitability Continues

Apr 23, 2001, 01:00 ET from American River Holdings

    SACRAMENTO, Calif., April 23 /PRNewswire Interactive News Release/ --
 American River Holdings (Nasdaq:   AMRB), the holding company for American River
 Bank, North Coast Bank and first source capital, today reported net income for
 the first quarter of 2001 of $1,024,000 compared to $890,000 in the comparable
 quarter in 2000.  This is an increase of $134,000 or 15%.  Expressing
 quarterly earnings on a per share basis, basic EPS was $0.42 compared to
 $0.38 in the first quarter of last year.  Diluted EPS for the quarter was
 $0.40, up 11% from the $0.36 recorded in the same period in 2000.
     Interest income was up $960,000 (19.9%) mainly as a result of an increase
 in average earning assets of $31 million or 12.5%.  Interest expense was up
 $425,000 (25.4%) as a result of an increase in average deposits of
 $16.6 million (10.0%).  Net interest income grew by 17.0% from $3,152,000 to
 $3,687,000.  The net interest margin on a tax-equivalent basis was
 5.91% compared with 5.62% for the first quarter of 2000.
     Non-interest income was $579,000, up from the $505,000 reported in the
 comparable quarter one year ago.  Increased fees from the Residential Lending
 Division and Accounts Receivable Servicing made up the majority of the
 increase.
     Non-interest expense increased $291,000 (13.9%) with $228,000 being in the
 salary and benefits area.  The efficiency ratio on a fully taxable equivalent
 basis was 55.21% for the quarter compared to 56.52% in the first quarter of
 2000.
     David T. Taber, president and chief executive officer, commented, "this is
 our 69th consecutive profitable quarter and we are pleased with our steady
 growth and profitability."
     The Company ended the first quarter with total assets of $280,716,000,
 which is an increase of 13.7% over the same quarter last year.  This was,
 however, slightly less than the $284 million at year-end 2000.  Net loans
 ended the quarter at $200,941,000 up 27.1% from the $158,133,000 at
 March 31, 2000.  Loans were funded mainly with an increase in deposits and
 with a decrease in investment securities.  Total deposits grew 13.5% from
 $220,674,000 in 2000 to $250,532,000 at March 31, 2001.
     The Company's capital ratios continue to exceed all "well-capitalized"
 benchmarks with total equity increasing 19.9% from $21,494,000 at
 March 31, 2000 to $25,778,000 at March 31, 2001.
     Non-performing loans and leases were 0.36% of total loans and leases.  Net
 charge-offs to average loans and leases were 0.05% for the quarter.  The
 allowance for loan and lease losses was 1.25% of total loans and leases.
 Subsequent to quarter-end, a loan with a book balance of $700,000 to a
 commercial contractor was placed on non-performing status.  Although we expect
 some loss, the precise amount cannot yet be determined.  Management is
 actively pursuing all appropriate means of collection.
     The return on average assets for the quarter was 1.50% and the return on
 average equity for the quarter was 16.77%.  In the first quarter of last year,
 the return on average assets was 1.45% and the return on average equity was
 17.10%.
     The Company's Annual Meeting has been set for 5:30 p.m. on May 15, 2001 at
 its headquarters in Sacramento.  The Annual Report, proxy statement and proxy
 card will be mailed on or about April 20, 2001 to shareholders of record as of
 April 3, 2001.
     American River Holdings is a financial services company with three
 subsidiaries, American River Bank, a community business bank with four offices
 in Sacramento and Placer Counties, North Coast Bank, a community business bank
 with three offices in Sonoma County and first source capital, also
 headquartered in Sacramento, which provides equipment lease financing for
 businesses throughout the country.
    Related websites:  www.amrb.com,   www.americanriverbank.net,
 www.northcoastbank.com www.firstsourcecapital.com
     Unaudited financial statements are attached.  Earnings per share have been
 adjusted for a 5% stock dividend in 2000.
 
     THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS ABOUT AMERICAN RIVER
 HOLDINGS' AND SUBSIDIARIES' FINANCIAL CONDITION, RESULTS OF OPERATIONS, PLANS,
 OBJECTIVES AND FUTURE PERFORMANCE.  A NUMBER OF FACTORS, ANY OF WHICH ARE
 BEYOND THE CONTROL OF AMERICAN RIVER HOLDINGS OR ITS SUBSIDIARIES COULD CAUSE
 ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING
 STATEMENTS.
 
                            AMERICAN RIVER HOLDINGS
 
                                               FINANCIAL SUMMARY
                                                  (unaudited)
     CONSOLIDATED BALANCE SHEET
                                  MARCH 31         MARCH 31         PERCENT
          ASSETS                    2001             2000           CHANGE
 
     Cash and due from banks     $20,542,000     $15,260,000        34.61%
     Federal funds sold            4,320,000       4,300,000         0.47%
     Interest-bearing
      deposits in banks            5,442,000       6,669,000       -18.40%
     Investment securities        40,091,000      55,293,000       -27.49%
     Loans and leases, net       200,941,000     158,133,000        27.07%
     Bank premises and equipment   1,742,000       1,272,000        36.95%
     Accounts receivable
      servicing receivable, net    3,408,000       2,280,000        49.47%
     Accrued interest
      and other assets             4,230,000       3,667,000        15.35%
 
                                $280,716,000    $246,874,000        13.71%
 
      LIABILITIES & EQUITY
 
     Deposits                   $250,532,000    $220,674,000        13.53%
     Short-term borrowings                --       1,000,000      -100.00%
     Long-term debt                2,073,000       2,115,000        -1.99%
     Accrued interest and other
      liabilities                  2,333,000       1,591,000        46.64%
     Total liabilities           254,938,000     225,380,000        13.11%
 
     Total equity                 25,778,000      21,494,000        19.93%
 
                                $280,716,000    $246,874,000        13.71%
 
 
     CONSOLIDATED STATEMENT OF INCOME
              (unaudited)           FIRST            FIRST
                                   QUARTER          QUARTER         PERCENT
                                     2001             2000          CHANGE
 
     Interest income              $5,783,000      $4,823,000        19.90%
 
     Interest expense              2,096,000       1,671,000        25.43%
 
     Net interest income           3,687,000       3,152,000        16.97%
 
     Provision for loan and
      lease loss                     194,000         132,000        46.97%
 
     Total non-interest income       579,000         505,000        14.65%
 
     Total non-interest expense    2,380,000       2,089,000        13.93%
 
     Income before taxes           1,692,000       1,436,000        17.83%
 
     Income taxes                    668,000         546,000        22.34%
 
     Net income                    1,024,000         890,000        15.06%
 
     Non-recurring expenses,
      net of income taxes                 --              --         0.00%
 
     Core earnings                $1,024,000        $890,000        15.06%
 
     Basic earnings per share          $0.42           $0.38        10.53%
     Diluted earnings per share         0.40            0.36        11.11%
     Core-basic earnings per share      0.42            0.38        10.53%
     Core-diluted earnings per share    0.40            0.36        11.11%
     Core-trailing 12-month diluted
      earnings per share                1.62
 
     Average shares outstanding    2,413,501       2,362,554
 
     Operating Ratios
      (through March 31):
     Return on average assets          1.50%           1.45%
     Return on average equity         16.77%          17.10%
     Efficiency ratio
      (fully taxable equivalent)      55.21%          56.52%
 
     Earnings per share have been adjusted for a 5% stock dividend in 2000.
 Core earnings exclude non-recurring expenses.
 
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SOURCE American River Holdings
    SACRAMENTO, Calif., April 23 /PRNewswire Interactive News Release/ --
 American River Holdings (Nasdaq:   AMRB), the holding company for American River
 Bank, North Coast Bank and first source capital, today reported net income for
 the first quarter of 2001 of $1,024,000 compared to $890,000 in the comparable
 quarter in 2000.  This is an increase of $134,000 or 15%.  Expressing
 quarterly earnings on a per share basis, basic EPS was $0.42 compared to
 $0.38 in the first quarter of last year.  Diluted EPS for the quarter was
 $0.40, up 11% from the $0.36 recorded in the same period in 2000.
     Interest income was up $960,000 (19.9%) mainly as a result of an increase
 in average earning assets of $31 million or 12.5%.  Interest expense was up
 $425,000 (25.4%) as a result of an increase in average deposits of
 $16.6 million (10.0%).  Net interest income grew by 17.0% from $3,152,000 to
 $3,687,000.  The net interest margin on a tax-equivalent basis was
 5.91% compared with 5.62% for the first quarter of 2000.
     Non-interest income was $579,000, up from the $505,000 reported in the
 comparable quarter one year ago.  Increased fees from the Residential Lending
 Division and Accounts Receivable Servicing made up the majority of the
 increase.
     Non-interest expense increased $291,000 (13.9%) with $228,000 being in the
 salary and benefits area.  The efficiency ratio on a fully taxable equivalent
 basis was 55.21% for the quarter compared to 56.52% in the first quarter of
 2000.
     David T. Taber, president and chief executive officer, commented, "this is
 our 69th consecutive profitable quarter and we are pleased with our steady
 growth and profitability."
     The Company ended the first quarter with total assets of $280,716,000,
 which is an increase of 13.7% over the same quarter last year.  This was,
 however, slightly less than the $284 million at year-end 2000.  Net loans
 ended the quarter at $200,941,000 up 27.1% from the $158,133,000 at
 March 31, 2000.  Loans were funded mainly with an increase in deposits and
 with a decrease in investment securities.  Total deposits grew 13.5% from
 $220,674,000 in 2000 to $250,532,000 at March 31, 2001.
     The Company's capital ratios continue to exceed all "well-capitalized"
 benchmarks with total equity increasing 19.9% from $21,494,000 at
 March 31, 2000 to $25,778,000 at March 31, 2001.
     Non-performing loans and leases were 0.36% of total loans and leases.  Net
 charge-offs to average loans and leases were 0.05% for the quarter.  The
 allowance for loan and lease losses was 1.25% of total loans and leases.
 Subsequent to quarter-end, a loan with a book balance of $700,000 to a
 commercial contractor was placed on non-performing status.  Although we expect
 some loss, the precise amount cannot yet be determined.  Management is
 actively pursuing all appropriate means of collection.
     The return on average assets for the quarter was 1.50% and the return on
 average equity for the quarter was 16.77%.  In the first quarter of last year,
 the return on average assets was 1.45% and the return on average equity was
 17.10%.
     The Company's Annual Meeting has been set for 5:30 p.m. on May 15, 2001 at
 its headquarters in Sacramento.  The Annual Report, proxy statement and proxy
 card will be mailed on or about April 20, 2001 to shareholders of record as of
 April 3, 2001.
     American River Holdings is a financial services company with three
 subsidiaries, American River Bank, a community business bank with four offices
 in Sacramento and Placer Counties, North Coast Bank, a community business bank
 with three offices in Sonoma County and first source capital, also
 headquartered in Sacramento, which provides equipment lease financing for
 businesses throughout the country.
    Related websites:  www.amrb.com,   www.americanriverbank.net,
 www.northcoastbank.com www.firstsourcecapital.com
     Unaudited financial statements are attached.  Earnings per share have been
 adjusted for a 5% stock dividend in 2000.
 
     THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS ABOUT AMERICAN RIVER
 HOLDINGS' AND SUBSIDIARIES' FINANCIAL CONDITION, RESULTS OF OPERATIONS, PLANS,
 OBJECTIVES AND FUTURE PERFORMANCE.  A NUMBER OF FACTORS, ANY OF WHICH ARE
 BEYOND THE CONTROL OF AMERICAN RIVER HOLDINGS OR ITS SUBSIDIARIES COULD CAUSE
 ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING
 STATEMENTS.
 
                            AMERICAN RIVER HOLDINGS
 
                                               FINANCIAL SUMMARY
                                                  (unaudited)
     CONSOLIDATED BALANCE SHEET
                                  MARCH 31         MARCH 31         PERCENT
          ASSETS                    2001             2000           CHANGE
 
     Cash and due from banks     $20,542,000     $15,260,000        34.61%
     Federal funds sold            4,320,000       4,300,000         0.47%
     Interest-bearing
      deposits in banks            5,442,000       6,669,000       -18.40%
     Investment securities        40,091,000      55,293,000       -27.49%
     Loans and leases, net       200,941,000     158,133,000        27.07%
     Bank premises and equipment   1,742,000       1,272,000        36.95%
     Accounts receivable
      servicing receivable, net    3,408,000       2,280,000        49.47%
     Accrued interest
      and other assets             4,230,000       3,667,000        15.35%
 
                                $280,716,000    $246,874,000        13.71%
 
      LIABILITIES & EQUITY
 
     Deposits                   $250,532,000    $220,674,000        13.53%
     Short-term borrowings                --       1,000,000      -100.00%
     Long-term debt                2,073,000       2,115,000        -1.99%
     Accrued interest and other
      liabilities                  2,333,000       1,591,000        46.64%
     Total liabilities           254,938,000     225,380,000        13.11%
 
     Total equity                 25,778,000      21,494,000        19.93%
 
                                $280,716,000    $246,874,000        13.71%
 
 
     CONSOLIDATED STATEMENT OF INCOME
              (unaudited)           FIRST            FIRST
                                   QUARTER          QUARTER         PERCENT
                                     2001             2000          CHANGE
 
     Interest income              $5,783,000      $4,823,000        19.90%
 
     Interest expense              2,096,000       1,671,000        25.43%
 
     Net interest income           3,687,000       3,152,000        16.97%
 
     Provision for loan and
      lease loss                     194,000         132,000        46.97%
 
     Total non-interest income       579,000         505,000        14.65%
 
     Total non-interest expense    2,380,000       2,089,000        13.93%
 
     Income before taxes           1,692,000       1,436,000        17.83%
 
     Income taxes                    668,000         546,000        22.34%
 
     Net income                    1,024,000         890,000        15.06%
 
     Non-recurring expenses,
      net of income taxes                 --              --         0.00%
 
     Core earnings                $1,024,000        $890,000        15.06%
 
     Basic earnings per share          $0.42           $0.38        10.53%
     Diluted earnings per share         0.40            0.36        11.11%
     Core-basic earnings per share      0.42            0.38        10.53%
     Core-diluted earnings per share    0.40            0.36        11.11%
     Core-trailing 12-month diluted
      earnings per share                1.62
 
     Average shares outstanding    2,413,501       2,362,554
 
     Operating Ratios
      (through March 31):
     Return on average assets          1.50%           1.45%
     Return on average equity         16.77%          17.10%
     Efficiency ratio
      (fully taxable equivalent)      55.21%          56.52%
 
     Earnings per share have been adjusted for a 5% stock dividend in 2000.
 Core earnings exclude non-recurring expenses.
 
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 SOURCE  American River Holdings