EXHIBIT 99.1
Sacramento, CA - October 15, 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 third quarter ended September 30, 2003.
Total assets were $370,260,000 at September 30, 2003, up 11.7% from the
$331,528,000 reported at September 30, 2002. Net income for the quarter was
$1,260,000 ($0.29 diluted EPS), up 5.0% from the $1,200,000 ($0.28 diluted EPS)
recorded for the third quarter last year. Earnings per share have been
retroactively adjusted for a 3 for 2 stock split declared on September 17, 2003,
with a record date of October 17, 2003. "This has been another successful
quarter for our Company. We have accomplished the highest quarterly assets,
loans and deposits in our history and have delivered our seventy-ninth
consecutive profitable quarter," remarked American River Holdings President and
CEO David Taber. Net loans and leases were $252,758,000 at September 30, 2003,
up 15.1% from the $219,568,000 recorded at September 30, 2002. Total deposits
were $312,166,000, increasing 17.8% from the $265,000,000 recorded at September
30, 2002.
Net income on a year-to-date basis was $3,612,000 ($0.84 diluted EPS) up 13.3%
from the $3,188,000 ($0.75 diluted EPS) recorded in the same period last year.
For the nine months ended September 30, 2003, and when compared to the same
period in 2002, net interest income increased 14.5% to $12,622,000 from
$11,026,000. Noninterest income increased 4.4% to $1,736,000 in 2003 compared to
$1,663,000 in 2002. Noninterest expense increased 11.3% to $7,702,000 this year
from $6,917,000 recorded last year.
Net interest income for the third quarter 2003 was $4,266,000 up 11.7% from the
$3,820,000 recorded in the third quarter of 2002. For the quarter ended
September 30, 2003, the net interest margin on a (fully taxable equivalent
basis) was 5.11% compared to the 5.18% recorded in the third quarter of
September 30, 2002. Non-interest income for the most recent quarter was
$645,000, up 4.2% when compared to $619,000 recorded in the same period during
the previous year. For the quarter, noninterest expense increased 13.2% to
$2,587,000 from $2,285,000 recorded in the third quarter of 2002.
Non-performing loans and leases were 0.16% of the total loans and leases at
September 30, 2003. Year to date net chargeoffs on an annualized basis were
0.13% of average loans and leases. The allowance for loan and lease losses was
$3,617,000 as of September 30, 2003, which is 1.41% of total loans and leases.
For the quarter ended September 30, 2003 return on average assets was 1.37%,
down from the 1.48% recorded at September 30, 2002. Return on average equity was
14.84% at September 30, 2003 compared to 16.01% recorded during the third
quarter ended September 30, 2002. The efficiency ratio was 52.23% up from the
51.00% recorded at September 30, 2002.
American River Bank increased assets, deposits and loans for the quarter ended
September 30, 2003. Assets were up 7.6% to $292,974,000 from the $272,368,000
recorded at September 30, 2002. Deposits increased to $239,246,000 up 13.0% from
the $211,747,000 recorded at the end of the third quarter in 2002. Loans
increased to $199,297,000 (12.3%) from the $177,509,000 recorded at September
30, 2002.
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North Coast Bank also had large increases in assets, deposits and loans. At
September 30, 2003, assets were up 34.9% to $79,541,000 from the $58,963,000
recorded at September 30, 2002. Deposits increased by 37.7% to $73,646,000 at
September 30, 2003 from the $53,495,000 recorded at September 30, 2002. Loans
increased to $53,461,000, up 27.1% from the $42,060,000 recorded at September
30, 2002.
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.
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, changes 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 conduct of the war on terrorism,
the threat of terrorism or the impact of potential military conflicts and the
conduct of war on 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
(unaudited)
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30 SEPTEMBER 30 DECEMBER 31
2003 2002 2002
------------ ------------ ------------
ASSETS
Cash and due from banks $ 26,766,000 $ 17,417,000 $ 25,899,000
Federal funds sold 5,100,000 0 0
Interest-bearing deposits in banks 4,353,000 6,037,000 5,938,000
Investment securities 73,085,000 81,531,000 75,623,000
Loans and leases, net 252,758,000 219,568,000 229,008,000
Bank premises and equipment 1,586,000 1,755,000 1,665,000
Accounts receivable servicing receivable, net 1,441,000 1,873,000 1,396,000
Accrued interest and other assets 5,171,000 3,347,000 3,034,000
------------ ------------ ------------
$370,260,000 $331,528,000 $342,563,000
============ ============ ============
LIABILITIES & EQUITY
Noninterest-bearing deposits $ 97,231,000 $ 75,425,000 $ 81,974,000
Interest checking, money market & savings 144,753,000 116,694,000 121,436,000
Time deposits 70,182,000 72,881,000 72,386,000
------------ ------------ ------------
Total deposits 312,166,000 265,000,000 275,796,000
------------ ------------ ------------
Short-term borrowings 19,000,000 31,700,000 30,550,000
Long-term debt 1,955,000 2,004,000 1,992,000
Accrued interest and other liabilities 2,418,000 1,751,000 2,499,000
------------ ------------ ------------
Total liabilities 335,539,000 300,455,000 310,837,000
Total equity 34,721,000 31,073,000 31,726,000
------------ ------------ ------------
$370,260,000 $331,528,000 $342,563,000
============ ============ ============
Nonperforming loans and leases to total loans and leases 0.16% 0.13% 0.09%
Year to date net chargeoffs to average loans and leases 0.13% -0.02% 0.03%
(annualized)
Allowance for loan and lease losses to total
loans and leases 1.41% 1.41% 1.38%
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
THIRD THIRD FOR THE NINE MONTHS
QUARTER QUARTER ENDED SEPTEMBER 30
2003 2002 2003 2002
----------- ----------- ----------- -----------
Interest income $ 4,953,000 $ 4,732,000 $14,825,000 $13,683,000
Interest expense 687,000 912,000 2,203,000 2,657,000
----------- ----------- ----------- -----------
Net interest income 4,266,000 3,820,000 12,622,000 11,026,000
Provision for loan and lease losses 252,000 160,000 664,000 494,000
Total noninterest income 645,000 619,000 1,736,000 1,663,000
Total noninterest expense 2,587,000 2,285,000 7,702,000 6,917,000
----------- ----------- ----------- -----------
Income before taxes 2,072,000 1,994,000 5,992,000 5,278,000
Income taxes 812,000 794,000 2,380,000 2,090,000
----------- ----------- ----------- -----------
Net income $ 1,260,000 $ 1,200,000 $ 3,612,000 $ 3,188,000
=========== =========== =========== ===========
Basic earnings per share $ 0.32 $ 0.30 $ 0.91 $ 0.81
Diluted earnings per share 0.29 0.28 0.84 0.75
Trailing 12-month diluted EPS 1.14
Net interest margin as a percentage of average
earnings assets (fully taxable equivalent) 5.11% 5.18% 5.21% 5.48%
Operating Ratios (through September 30)
Return on average assets 1.37% 1.48% 1.36% 1.43%
Return on average equity 14.84% 16.01% 14.63% 14.71%
Efficiency ratio (fully taxable equivalent) 52.23% 51.00% 53.19% 53.99%
Earnings per share have been adjusted for a 3 for 2 stock split in 2003 and a 5%
stock dividend in 2002
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CONSOLIDATED STATEMENT OF INCOME THIRD SECOND FIRST FOURTH
Trailing Four Quarters QUARTER QUARTER QUARTER QUARTER
(Unaudited) 2003 2003 2003 2002
----------- ----------- ----------- -----------
Interest income $ 4,953,000 $ 5,062,000 $ 4,810,000 $ 4,902,000
Interest expense 687,000 763,000 753,000 855,000
----------- ----------- ----------- -----------
Net interest income 4,266,000 4,299,000 4,057,000 4,047,000
Provision for loan and lease losses 252,000 223,000 189,000 150,000
Total noninterest income 645,000 565,000 526,000 660,000
Total noninterest expense 2,587,000 2,456,000 2,659,000 2,472,000
----------- ----------- ----------- -----------
Income before taxes 2,072,000 2,185,000 1,735,000 2,085,000
Income taxes 812,000 882,000 686,000 814,000
----------- ----------- ----------- -----------
Net income $ 1,260,000 $ 1,303,000 $ 1,049,000 $ 1,271,000
=========== =========== =========== ===========
Basic earnings per share $ 0.32 $ 0.33 $ 0.27 $ 0.32
Diluted earnings per share 0.29 0.30 0.25 0.30
Net interest margin as a percentage of average
earnings assets (fully taxable equivalent) 5.11% 5.28% 5.25% 5.14%
Quarterly Operating Ratios:
Return on average assets 1.37% 1.46% 1.24% 1.48%
Return on average equity 14.84% 15.69% 13.29% 16.21%
Efficiency ratio (fully taxable equivalent) 52.23% 50.07% 57.52% 52.07%
Earnings per share have been adjusted for a 5% stock dividend in 2002 and a 3
for 2 stock split in 2003.
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