EXHIBIT 99.1
Sacramento, CA - January 16, 2002
AMERICAN RIVER HOLDINGS ANNOUNCES RECORD YEAR END RESULTS
American River Holdings (Nasdaq: AMRB), the parent company of American River
Bank, North Coast Bank and first source capital announced record financial
results for the year ended December 31, 2001. "Quality and consistency have been
the driving forces in our success. Our team has consistently delivered
profitability while maintaining asset quality, both of which are crucial
elements of our Shareholder Value Plan," remarked the President and CEO of
American River Holdings, David Taber. The year-to-date net income came to
$4,037,000 ($1.50 diluted earnings per share), marking the highest net income in
the history of American River Holdings, and making a 13.9% increase from the
$3,546,000 ($1.35 diluted earnings per share) reported for 2000. Total assets
grew by $2.4 million from one year ago, reaching $286.6 million at December 31,
2001.
Representative of American River Holdings' values toward growth and
profitability are the consistent increases in shareholder equity. Shareholder
equity increased 14.5% from $24,413,000 on December 31, 2000 to $27,942,000 on
December 31, 2001. Total deposits increased by 6.5% finishing the year at
$254,904,000 on December 31, 2001.
When comparing the year ending December 31, 2001, to the same period in 2000,
net interest income grew by 7.3% from $13,585,000 to $14,577,000. Non-interest
income increased from $2,183,000 to $2,365,000 for the year ending 2001.
Non-interest expense increased as well, rising to $9,502,000 from the $9,329,000
recorded in the previous year, resulting in a 1.9% increase in the year 2001.
The year-to-date return on average assets was 1.45 %, up from the 1.37% reported
during 2000. Return on average equity for the year ending December 31, 2001, was
15.34% and the efficiency ratio was 55.57%. Net charge offs were 0.31% of
average loans and leases. The allowance for loan and lease losses was $2,614,000
as of December 31, 2001, which is 1.32% of total loans and leases, and 305.4% of
non-performing loans and leases.
Delivering the seventy-second consecutive profitable quarter, net income for the
quarter totaled $1,001,000 ($0.37 diluted earnings per share), which is an
increase of 13.4% compared to last year's fourth quarter of $883,000 ($0.33
diluted earnings per share). Net interest income was $3,612,000 down from the
$3,674,000 in the comparable quarter in 2000. The net interest margin which was
5.83% for the first nine months of 2001, dropped to 5.53% during the fourth
quarter. This reduction was caused by the dramatic downward change in short term
interest rates and an increase in lower yielding federal funds and other
short-term investments. Non-interest income for the fourth quarter was $574,000,
up 1.1% from the $568,000 recorded from the same period during the previous
year. For the quarter, non-interest expense decreased from $2,591,000 to
$2,355,000, or 9.1%. The return on average assets for the fourth quarter was
1.39%, and the return on average equity was 14.21%. The efficiency ratio for the
fourth quarter was 55.74%, an improvement from the 60.54% recorded during the
same period in 2000.
American River Holdings is a financial services company with three affiliates,
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 on a brokerage basis for businesses
throughout the country.
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Related websites include www.amrb.com, www.americanriverbank.net,
www.northcoastbank.com and www.firstsourcecapital.com
Unaudited financial statements are attached. Historical earnings per share have
been adjusted for a 5% stock dividend in 2001.
FORWARD-LOOKING INFORMATION
In addition to the historical information contained herein, this press release
contains certain forward-looking statements. The reader of this press release
should understand that all such forward-looking statements are subject to
various uncertainties and risks that could affect their outcome. The Company's
actual results could differ materially from those suggested by such
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to, variances in the actual versus
projected growth in assets, return on assets, loan losses, expenses, rates
charged on loans and earned on securities investments, rates paid on deposits,
competition effects, fee and other non interest income earned, general economic
conditions, nationally, regionally and in the operating market areas of the
Company and its subsidiaries, changes in the regulatory environment, changes in
business conditions and inflation, changes in securities markets, data
processing problems, a decline in real estate values in the Company's market
area, the California power crisis, the effects of terrorism, including the
events of September 11, 2001 and thereafter, and the conduct of the war on
terrorism by the United States and its allies, as well as other factors. This
entire press release should be read to put such forward-looking statements in
context. To gain a more complete understanding of the uncertainties and risks
involved in the Company's business, this press release should be read in
conjunction with the Company's annual report on Form 10-K for the year ended
December 31, 2000.
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AMERICAN RIVER HOLDINGS FINANACIAL SUMMARY
(unaudited)
CONSOLIDATED BALANCE SHEET
December 31 December 31 PERCENT
ASSETS 2001 2000 CHANGE
------------ ------------ -------
Cash and due from banks $ 20,342,000 $ 21,236,000 -4.21%
Federal funds sold 7,814,000 -- --
Interest-bearing deposits in banks 5,740,000 5,540,000 3.61%
Investment securities 48,912,000 48,018,000 1.86%
Loans and leases, net 195,026,000 200,658,000 -2.81%
Bank premises and equipment 1,903,000 1,688,000 12.74%
Accounts receivable servicing receivable, net 2,869,000 3,180,000 -9.78%
Accrued interest and other assets 3,953,000 3,806,000 3.86%
------------ ------------ -----
$286,559,000 $284,126,000 0.86%
============ ============ =====
LIABILITIES & EQUITY
Deposits $254,904,000 $239,312,000 6.52%
Short-term borrowings -- 15,990,000 --
Long-term debt 2,039,000 2,084,000 -2.16%
Accrued interest and other liabilities 1,674,000 2,327,000 -28.06%
------------ ------------ -----
Total liabilities 258,617,000 259,713,000 -0.42%
Total equity 27,942,000 24,413,000 14.46%
------------ ------------ -----
$286,559,000 $284,126,000 0.86%
============ ============ =====
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED) FOURTH FOURTH FOR THE TWELVE MONTHS
QUARTER QUARTER ENDING DECEMBER 31
2001 2000 2001 2000
----------- ----------- ----------- -----------
Interest income $ 4,688,000 $ 5,793,000 $20,843,000 $21,227,000
Interest expense 1,076,000 2,119,000 6,266,000 7,642,000
----------- ----------- ----------- -----------
Net interest income 3,612,000 3,674,000 14,577,000 13,585,000
Provision for loan and lease loss 218,000 223,000 791,000 672,000
Total non-interest income 574,000 568,000 2,365,000 2,183,000
Total non-interest expense 2,355,00 2,591,000 9,502,000 9,329,000
----------- ----------- ----------- -----------
Income before taxes 1,613,000 1,428,000 6,649,000 5,767,000
Income taxes 612,000 545,000 2,612,000 2,221,000
----------- ----------- ----------- -----------
Net income $ 1,001,000 $ 883,000 $ 4,037,000 $ 3,546,000
=========== =========== =========== ===========
Non-recurring expenses, net of income taxes -- 156,000 -- 421,000
Core earnings $ 1,001,000 $ 1,039,000 $ 4,037,000 $ 3,967,000
=========== =========== =========== ===========
Basic earnings per share $ 0.39 $ 0.35 $ 1.59 $ 1.42
Diluted earnings per share 0.37 0.33 1.50 1.35
Core-basic earnings per share 0.39 0.41 1.59 1.59
Core-diluted earnings per share 0.37 0.39 1.50 1.51
Average shares outstanding 2,529,124 2,513,023 2,535,350 2,496,966
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Operating Ratios (through December 31)
Return on average assets 1.39% 1.28% 1.45% 1.37%
Return on average equity 14.21% 15.07% 15.34% 15.93%
Efficiency ratio (fully taxable equivalent) 55.74% 60.54% 55.57% 58.59%
- ----------------------------------------------------------------------------------------------------------
Historical Earnings per share have been adjusted for a 5% stock dividend in
2001. Core earnings exclude non-recurring expenses.
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