EXHIBIT 99.1
Sacramento, CA - January 16, 2003- 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, 2002. Net
income came to $4,459,000 ($1.57 diluted earnings per share), marking the
highest earnings in the history of American River Holdings, and a 10.5% increase
from the $4,037,000 ($1.43 diluted earnings per share) reported for 2001. Total
assets grew by $56 million from one year ago, reaching $342.6 million at
December 31, 2002.
"We are thrilled with our success in 2002. Profits, growth, asset quality and
shareholder return are at all time highs, proving that our formula for success
works. We have the best team serving the best clients," remarked American River
Holdings' President and CEO, David T. Taber.
When comparing the year ended December 31, 2002 to the same period in 2001, net
interest income grew by 3.4% to $15,073,000 from $14,577,000. Noninterest income
decreased slightly to $2,323,000 from $2,365,000 for 2002. Noninterest expense
decreased as well, to $9,389,000 from $9,502,000 recorded in 2002.
Return on average assets for 2002 was 1.44 %, compared to 1.45% in 2001. Return
on average equity for the year ended December 31, 2002 was 15.11% and the
efficiency ratio was 53.47%. Net chargeoffs for the year were 0.03% of average
loans and leases. The allowance for loan and lease losses was $3,197,000 as of
December 31, 2002, which is 1.38% of total loans and leases, and 1551.9% of
non-performing loans and leases.
Loans and deposits increased considerably during 2002. Net loans grew 17.4% from
$195,026,000 at December 31, 2001 to $229,008,000 at December 31, 2002. Total
deposits were up $20.9 million, from $254,888,000 at December 31, 2001 to
$275,796,000 at December 31, 2002. Noninterest bearing deposits increased 21.0%
from $67,740,000 at December 31, 2001 to $81,974,000 at December 31, 2002.
The Company achieved its seventy-sixth consecutive profitable quarter. Net
income for the quarter was $1,271,000, which is an increase of 27.0% compared to
the $1,001,000 recorded in the fourth quarter of 2001. Diluted earnings per
share increased 28.6% from $0.35 recorded in the fourth quarter of 2001 to $0.45
in the fourth quarter of 2002. Net interest income was $4,047,000, increasing
from the $3,612,000 in the comparable quarter in 2001. Noninterest income for
the fourth quarter was $660,000, up 15.0% from the $574,000 recorded in the same
period during the previous year. For the quarter, noninterest expense increased
from $2,355,000 to $2,472,000. The return on average assets for the fourth
quarter was 1.48%, which is an increase from the 1.39% recorded for the previous
year. Return on average equity also increased to 16.21% from the 14.21% recorded
for the fourth quarter in 2001. The efficiency ratio for the fourth quarter was
52.07%, an improvement from the 55.74% recorded during the same period in 2001.
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.
Related websites include www.amrb.com, www.americanriverbank.net,
www.northcoastbank.com and www.firstsourcecapital.com
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Unaudited financial statements are attached. Historical earnings per share have
been adjusted for 5% stock dividends in 2001 and 2002.
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 energy shortage, 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, 2001.
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AMERICAN RIVER HOLDINGS FINANACIAL SUMMARY
CONSOLIDATED BALANCE SHEET (unaudited)
December 31 December 31
ASSETS 2002 2001
------------ ------------
Cash and due from banks $ 25,899,000 $ 20,342,000
Federal funds sold -- 7,814,000
Interest-bearing deposits in banks 5,938,000 5,740,000
Investment securities 75,623,000 48,912,000
Loans and leases, net 229,008,000 195,026,000
Bank premises and equipment 1,665,000 1,903,000
Accounts receivable servicing receivable, net 1,396,000 2,869,000
Accrued interest and other assets 3,034,000 3,953,000
------------ ------------
$342,563,000 $286,559,000
============ ============
LIABILITIES & EQUITY
Noninterest bearing deposits $ 81,974,000 $ 67,740,000
Interest checking, money market & savings 121,436,000 110,978,000
Time deposits 72,386,000 76,170,000
------------ ------------
Total deposits 275,796,000 254,888,000
------------ ------------
Short-term borrowings 30,550,000 --
Long-term debt 1,992,000 2,039,000
Accrued interest and other liabilities 2,499,000 1,690,000
------------ ------------
Total liabilities 310,837,000 258,617,000
Total equity 31,726,000 27,942,000
------------ ------------
$342,563,000 $286,559,000
============ ============
Nonperforming loans and leases to total loans and 0.09% 0.43%
leases
Net chargeoffs to average loans and leases 0.03% 0.31%
Allowance for loan and lease losses to nonperforming 1551.94% 305.37%
loans and leases
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED) FOURTH FOURTH FOR THE YEAR ENDED
QUARTER QUARTER DECEMBER 31
2002 2001 2002 2001
Interest income $ 4,902,000 $ 4,688,000 $18,585,000 $20,843,000
Interest expense 855,000 1,076,000 3,512,000 6,266,000
----------- ----------- ----------- -----------
Net interest income 4,047,000 3,612,000 15,073,000 14,577,000
Provision for loan and lease losses 150,000 218,000 644,000 791,000
Total noninterest income 660,000 574,000 2,323,000 2,365,000
Total noninterest expense 2,472,000 2,355,000 9,389,000 9,502,000
----------- ----------- ----------- -----------
Income before taxes 2,085,000 1,613,000 7,363,000 6,649,000
Income taxes 814,000 612,000 2,904,000 2,612,000
----------- ----------- ----------- -----------
Net income $ 1,271,000 $ 1,001,000 $ 4,459,000 $ 4,037,000
=========== =========== =========== ===========
Basic earnings per share $ 0.48 $ 0.38 $ 1.69 $ 1.52
Diluted earnings per share 0.45 0.35 1.57 1.43
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Operating Ratios:
Return on average assets 1.48% 1.39% 1.44% 1.45%
Return on average equity 16.21% 14.21% 15.11% 15.34%
Efficiency ratio (fully taxable equivalent) 52.07% 55.74% 53.47% 55.57%
- ----------------------------------------------------------------------------------------------------------
Earnings per share have been adjusted for 5% stock dividends in 2001 and 2002.
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CONSOLIDATED STATEMENT OF INCOME FOURTH THIRD SECOND FIRST
Trailing Four Quarters QUARTER QUARTER QUARTER QUARTER
(Unaudited) 2002 2002 2002 2002
---------- ---------- ---------- ----------
Interest income $4,902,000 $4,732,000 $4,486,000 $4,465,000
Interest expense 855,000 912,000 863,000 882,000
---------- ---------- ---------- ----------
Net interest income 4,047,000 3,820,000 3,623,000 3,583,000
Provision for loan and lease losses 150,000 160,000 186,000 148,000
Total noninterest income 660,000 619,000 552,000 492,000
Total noninterest expense 2,472,000 2,285,000 2,288,000 2,344,000
---------- ---------- ---------- ----------
Income before taxes 2,085,000 1,994,000 1,701,000 1,583,000
Income taxes 814,000 794,000 674,000 622,000
---------- ---------- ---------- ----------
Net income $1,271,000 $1,200,000 $1,027,000 $ 961,000
========== ========== ========== ==========
Basic earnings per share $ 0.48 $ 0.46 $ 0.39 $ 0.36
Diluted earnings per share 0.45 0.42 0.36 0.34
- ------------------------------------------------------------------------------------------------------
Quarterly Operating Ratios:
Return on average assets 1.48% 1.48% 1.42% 1.37%
Return on average equity 16.21% 16.01% 14.26% 13.79%
Efficiency ratio (fully taxable equivalent) 52.07% 51.00% 54.28% 56.95%
- ------------------------------------------------------------------------------------------------------
Earnings per share have been adjusted for a 5% stock dividend in 2002.
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