EXHIBIT 99.1
Sacramento, CA - April 16, 2003
American River Holdings (Nasdaq: AMRB), the parent company of American River
Bank, North Coast Bank and first source capital, announced financial results for
the first quarter, which ended March 31, 2003. Total assets were $357,527,000,
up $74.8 million from the $282,713,000 recorded for the quarter ended March 31,
2002.
Net income for the first quarter was $1,049,000 ($0.37 diluted earnings per
share), which is a 9.2% increase from last year's $961,000 ($0.34 diluted
earnings per share) or 8.8% increase in diluted earnings per share. Net interest
income increased by $474,000 totaling $4,057,000 for the first quarter of 2003,
from the $3,583,000 reported for March 31, 2002. This increase in net interest
margin was driven by volume as the net interest margin expressed as a percentage
was down from 5.75% in the first quarter of 2002 to 5.25% in the most recent
quarter. Total noninterest income increased from $492,000 during the first
quarter of 2002 to $526,000 during the first quarter of 2003, but dipped from
the $660,000 reported for the fourth quarter of 2002. This reduction from the
fourth quarter was mainly a result of a decrease in fees from brokered leases
from our subsidiary first source capital which recorded record earnings in the
fourth quarter. Total noninterest expense increased from $2,344,000 at March 31,
2002 to $2,659,000 at March 31, 2003, mainly due to higher personnel expenses.
Noninterest expense increased 7.6% from $2,472,000 in the fourth quarter of 2002
to $2,659,000 in the current quarter due to expenses related to employee
departures and an increase in employer taxes on employee incentives.
Net loans and leases grew 24.6% from $200,672,000 at March 31, 2002 to
$250,111,000 at March 31, 2003. The sources of the increase were centered in
commercial loans, commercial real estate loans and lease financing. Commercial
loans increased 9.6% from $47,672,000 at March 31, 2002 to $52,248,000 at March
31, 2003. Commercial real estate loans increased 35.0% from $106,003,000 at
March 31, 2002 to $143,071,000 at March 31, 2003. Lease financing increased
214.4% from $2,424,000 at March 31, 2002 to $7,621,000 at March 31, 2003. From
March 31, 2002 to March 31, 2003, both banks increased loans outstanding,
American River Bank by 24% and North Coast Bank by 27%.
Deposits increased from $250,249,000 at March 31, 2002 to $282,671,000 at March
31, 2003, including a 20.3% increase in interest checking, money market, and
savings accounts and a 16.7% increase in noninterest bearing deposits.
"We had impressive growth in loans outstanding and core deposits over the past
year. This is a tribute to our dedicated team," commented David T. Taber,
President and CEO of American River Holdings.
Credit quality remained strong in the first quarter of 2003. Non-performing
loans and leases were 0.03% of total loans and leases at March 31, 2003. The
Company had net loan recoveries in the first quarter of eight basis points of
average loans and leases, compared to the 0.02% in charge-offs recorded for the
first quarter of 2002. The allowance for loan and lease losses was $3,431,000 or
1.35% of outstanding loans and leases.
Return on average assets was 1.24% for the quarter ending March 31, 2003, down
thirteen basis points from the 1.37% reported for the first quarter in 2002.
Return on average equity decreased from 13.79% at March 31, 2002 to 13.29% at
March 31, 2003. The efficiency ratio was 57.52%, up 0.57 basis points from the
56.95% reported at March 31, 2002.
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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: 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.
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, charges in
the interest environment including interest rates charged on loans, earned on
securities investments, and 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 effects of terrorism, including
the events of September 11, 2001 and thereafter, and the conduct of the war on
terrorism, the threat of terrorism or the impact of potential military conflicts
and the conduct of war or terrorism by the United States and its allies, as well
as other factors. 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, 2002.
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AMERICAN RIVER HOLDINGS FINANACIAL SUMMARY
CONSOLIDATED BALANCE SHEET (unaudited)
March 31 March 31
ASSETS 2003 2002
------------- -------------
Cash and due from banks $ 22,410,000 $ 22,061,000
Federal funds sold -- --
Interest-bearing deposits in banks 5,343,000 5,840,000
Investment securities 73,103,000 46,228,000
Loans and leases, net 250,111,000 200,672,000
Bank premises and equipment 1,584,000 1,856,000
Accounts receivable servicing receivable, net 1,346,000 2,370,000
Accrued interest and other assets 3,630,000 3,686,000
------------- -------------
$ 357,527,000 $ 282,713,000
============= =============
LIABILITIES & EQUITY
Noninterest bearing deposits $ 80,648,000 $ 69,119,000
Interest checking, money market & savings 129,738,000 107,860,000
Time deposits 72,285,000 73,270,000
------------- -------------
Total deposits 282,671,000 250,249,000
------------- -------------
Short-term borrowings 38,100,000 --
Long-term debt 1,980,000 2,028,000
Accrued interest and other liabilities 1,887,000 1,813,000
------------- -------------
Total liabilities 324,638,000 254,090,000
Total equity 32,889,000 28,623,000
------------- -------------
$ 357,527,000 $ 282,713,000
============= =============
Nonperforming loans and leases to total loans and leases 0.03% 0.30%
Net (recoveries) charge-offs to average loans and leases (0.08%) 0.02%
Allowance for loan and lease losses to total loans and leases 1.35% 1.35%
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
FIRST FIRST
QUARTER QUARTER PERCENT
2003 2002 CHANGE
---------- ---------- ----------
Interest income $4,810,000 $4,465,000 7.73%
Interest expense 753,000 882,000 -14.63%
---------- ---------- ----------
Net interest income 4,057,000 3,583,000 13.23%
Provision for loan and lease losses 189,000 148,000 27.70%
Total noninterest income 526,000 492,000 6.91%
Total noninterest expense 2,659,000 2,344,000 13.44%
---------- ---------- ----------
Income before taxes 1,735,000 1,583,000 9.60%
Income taxes 686,000 622,000 10.29%
---------- ---------- ----------
Net income $1,049,000 $ 961,000 9.16%
========== ========== ==========
Basic earnings per share $ 0.40 $ 0.36 11.11%
Diluted earnings per share 0.37 0.34 8.82%
- ---------------------------------------------------------------------------------------
Operating Ratios:
Return on average assets 1.24% 1.37%
Return on average equity 13.29% 13.79%
Efficiency ratio (fully taxable equivalent) 57.52% 56.95%
- ---------------------------------------------------------------------------------------
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CONSOLIDATED STATEMENT OF INCOME
Trailing Four Quarters
(Unaudited)
FIRST FOURTH THIRD SECOND
QUARTER QUARTER QUARTER QUARTER
2003 2002 2002 2002
---------- ---------- ---------- ----------
Interest income $4,810,000 $4,902,000 $4,732,000 $4,486,000
Interest expense 753,000 855,000 912,000 863,000
---------- ---------- ---------- ----------
Net interest income 4,057,000 4,047,000 3,820,000 3,623,000
Provision for loan and lease losses 189,000 150,000 160,000 186,000
Total noninterest income 526,000 660,000 619,000 552,000
Total noninterest expense 2,659,000 2,472,000 2,285,000 2,288,000
---------- ---------- ---------- ----------
Income before taxes 1,735,000 2,085,000 1,994,000 1,701,000
Income taxes 686,000 814,000 794,000 674,000
---------- ---------- ---------- ----------
Net income $1,049,000 $1,271,000 $1,200,000 $1,027,000
========== ========== ========== ==========
Basic earnings per share $ 0.40 $ 0.48 $ 0.46 $ 0.39
Diluted earnings per share 0.37 0.45 0.42 0.36
Net interest margin as a percentage 5.25% 5.14% 5.18% 5.57%
- -----------------------------------------------------------------------------------------------------
Quarterly Operating Ratios:
Return on average assets 1.24% 1.48% 1.48% 1.42%
Return on average equity 13.29% 16.21% 16.01% 14.26%
Efficiency ratio (fully taxable equivalent) 57.52% 52.07% 51.00% 54.28%
- -----------------------------------------------------------------------------------------------------
Earnings per share have been adjusted for a 5% stock dividend in 2002.
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