EXHIBIT 99.1
SACRAMENTO, CA - JULY 19, 2001
AMERICAN RIVER HOLDINGS ANNOUNCES
SECOND QUARTER AND YTD 2001 FINANCIAL RESULTS
Sacramento, CA - July 19, 2001 - (Nasdaq: AMRB) -- The parent company of
American River Bank, North Coast Bank and first source capital announced
financial results for the six months and quarter ended June 30, 2001. Net income
on a year-to-date basis was $1,925,000 ($0.75 diluted EPS) up 10.2% from the
$1,747,000 ($0.70 diluted EPS) recorded in the same period last year. Total
assets grew by $11,622,000 from one year ago, reaching $273,013,000 at June 30,
2001. Net income for the second quarter 2001 was $901,000 ($0.35 diluted EPS) up
from the $857,000 ($0.35 diluted EPS) recorded in the second quarter 2000.
Net income for 2000 was impacted by merger-related expenses resulting from the
North Coast Bank acquisition that closed in the fourth quarter 2000. Therefore,
year-to-date net income, excluding these non-recurring expenses, at June 30,
2000 was $1,897,000 compared to $1,925,000 this year. Net income, excluding
non-recurring expenses for the quarter ended June 30, 2000 was $995,000 compared
to $901,000 for the quarter ended June 30, 2001.
For the six months ending June 30, 2001, and when compared to the same period in
2000, net interest income grew by 13.6% from $6,441,000 to $7,316,000. The net
interest margin for the first six months of this year was 5.87% on a
tax-equivalent basis, compared to 5.74% for the first half of 2000. Non-interest
income was $1,135,000 compared to $1,077,000, which is an increase of 5.4%.
Non-interest expense increased from $4,406,000 for the first half of last year
to $4,880,000 this year.
Net interest income for the second quarter 2001 was $3,629,000 up 10.3% from the
$3,289,000 recorded in the second quarter 2000. For the quarter ended June 30,
2001, the net interest margin was 5.84%, identical to that of second quarter
ended June 30, 2000. Non-interest income for the most recent quarter, however,
was slightly off at $556,000, compared to $572,000 recorded in the comparable
period in the previous year. For the quarter, overhead increased from $2,317,000
to $2,500,000.
These higher overhead costs were, in large part, associated with the completion
of two significant projects during the second quarter of 2001: implementation of
a new Company-wide computer system and the completion of the consolidation of
support services for the newly-acquired North Coast Bank. These investments in
future operating efficiencies were designed to enable the Company to continue as
a leading-edge financial services provider and to improve operating performance.
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Net loans and leases outstanding grew 13.4% from a year ago to $197,139,000.
This growth was funded by an increase in deposits and a reduction in investment
securities. Deposits increased by 5.8% to $243,176,000. Shareholders' equity
increased by 18.3% from $22,272,000 on June 30, 2000 to $26,341,000 on June 30,
2001. The majority of this increase was from reinvested profits.
Non-performing loans and leases were 0.69% of total loans and leases at June 30,
2001. Net charge-offs on a year-to-date basis were 0.15% average loans and
leases. The allowance for loan and lease losses was $2,537,000 at June 30, 2001,
which is 1.27% of total loans and leases and 184.4% of non-performing loans and
leases.
Return on average assets was 1.40% for the first six months of this year and
return on average equity was 15.28%. The efficiency ratio was 57.22% for the
six-month period.
"This is our 70th consecutive, profitable quarter. These results showcase our
belief that consistency builds value," said David Taber, President and CEO of
American River Holdings.
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, 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.
FORWARD-LOOKING INFORMATION
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 files periodic reports with the SEC. These reports are
available at www.sec.gov and describe some of the factors mentioned above.
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AMERICAN RIVER HOLDINGS Financial Summary
(unaudited)
CONSOLIDATED BALANCE SHEET
JUNE 30 JUNE 30 PERCENT
ASSETS 2001 2000 CHANGE
------------ ------------ ------------
Cash and due from banks $ 19,159,000 $ 19,612,000 -2.31%
Federal funds sold 3,350,000 2,140,000 56.54%
Interest-bearing deposits in banks 5,345,000 6,431,000 -16.89%
Investment securities 38,439,000 50,901,000 -24.48%
Loans and leases, net 197,139,000 173,910,000 13.36%
Bank premises and equipment 1,970,000 1,385,000 42.24%
Accounts receivable servicing receivable, net 3,779,000 2,705,000 39.70%
Accrued interest and other assets 3,832,000 4,307,000 -11.03%
------------ ------------ ------------
$273,013,000 $261,391,000 4.45%
============ ============ ============
LIABILITIES & EQUITY
Deposits $243,176,000 $229,839,000 5.80%
Short-term borrowings -- 5,250,000 -100.00%
Long-term debt 2,062,000 2,105,000 -2.04%
Accrued interest and other liabilities 1,434,000 1,925,000 -25.51%
------------ ------------ ------------
Total liabilities 246,672,000 239,119,000 3.16%
Total equity 26,341,000 22,272,000 18.27%
------------ ------------ ------------
$273,013,000 $261,391,000 4.45%
============ ============ ============
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED) SECOND SECOND
QUARTER QUARTER FOR THE SIX MONTHS
2001 2000 ENDING JUNE 30
----------- ----------- -------------------------
Interest income $ 5,317,000 $ 5,078,000 $11,100,000 $ 9,901,000
Interest expense 1,688,000 1,789,000 3,784,000 3,460,000
----------- ----------- ----------- -----------
Net interest income 3,629,000 3,289,000 7,316,000 6,441,000
Provision for loan and lease loss 187,000 146,000 381,000 278,000
Total non-interest income 556,000 572,000 1,135,000 1,077,000
Total non-interest expense 2,500,000 2,317,000 4,880,000 4,406,000
----------- ----------- ----------- -----------
Income before taxes 1,498,000 1,398,000 3,190,000 2,834,000
Income taxes 597,000 541,000 1,265,000 1,087,000
----------- ----------- ----------- -----------
Net income 901,000 857,000 1,925,000 1,747,000
Non-recurring expenses, net of income taxes -- 138,000 -- 150,000
----------- ----------- ----------- -----------
Core earnings $ 901,000 $ 995,000 $ 1,925,000 $ 1,897,000
=========== =========== =========== ===========
Basic earnings per share $ 0.37 $ 0.36 $ 0.80 $ 0.74
Diluted earnings per share 0.35 0.35 0.75 0.70
Core-basic earnings per share 0.37 0.42 0.80 0.80
Core-diluted earnings per share 0.35 0.40 0.75 0.76
Core-trailing 12-month diluted earnings per share 1.57
Average shares outstanding 2,418,521 2,370,233 2,416,025 2,366,394
- ----------------------------------------------------------------------------------------------------------
Operating Ratios (through June 30):
Return on average assets 1.31% 1.38% 1.40% 1.41%
Return on average equity 13.89% 15.72% 15.28% 16.42%
Efficiency ratio (fully taxable equivalent) 59.26% 59.43% 57.22% 58.00%
- ----------------------------------------------------------------------------------------------------------
Earnings per share have been adjusted for a 5% stock dividend in 2000. Core
earnings exclude non-recurring expenses.
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