EXHIBIT 99.1
American River Bankshares Announces Fourth Quarter Earnings
Sacramento, CA, January 18, 2007 - American River Bankshares (NASDAQ-GS: AMRB)
today reported diluted earnings per share for the fourth quarter of 2006 of
$0.42, a 7.7% increase from $0.39 recorded in the third quarter of 2006 and a
2.3% decrease from $0.43 for the fourth quarter of 2005. Net income for the
fourth quarter of 2006 increased 5.8% to $2,407,000 from $2,275,000 during the
third quarter of 2006 and decreased 6.2% from $2,567,000 for the fourth quarter
of 2005. Diluted earnings per share for the year ended December 31, 2006
remained constant at $1.53 and net income decreased 1.3% to $9,062,000 from
$9,184,000 for the year ended December 31, 2005.
"We are pleased to finish 2006 with solid results," said David T. Taber,
President and CEO of American River Bankshares. "The last two quarters have each
been better than the previous and our key industry metrics are very good." He
added: "The economy is strong, but the rapid increase in funding costs has made
2006 tough. As a Company, we believe that we're up to the challenge of
positioning ourselves as the premier business bank in the communities we serve."
Net interest income for the fourth quarter of 2006 decreased 0.3% to $6,777,000
from $6,798,000 for the third quarter of 2006 and decreased 2.6% from $6,955,000
for the fourth quarter of 2005. Interest income for the fourth quarter of 2006
decreased 1.0% to $9,637,000 from $9,737,000 for the third quarter of 2006 and
increased 7.5% from $8,966,000 for the fourth quarter of 2005. For the year
ended December 31, 2006, net interest income increased 2.3% to $27,066,000 from
$26,462,000 and interest income increased 14.3% to $37,954,000 from $33,213,000
for the year ended December 31, 2005.
Net interest margin as a percentage increased to 5.03% for the fourth quarter of
2006 from 5.01% for the third quarter of 2006 and decreased from 5.09% for the
fourth quarter of 2005. For the year ended December 31, 2006, net interest
margin as a percentage increased to 5.03% from 4.98% for the year ended December
31, 2005.
Interest expense for the fourth quarter of 2006 decreased 2.7% to $2,860,000
from $2,939,000 for the third quarter of 2006 and increased 42.2% from
$2,011,000 for the fourth quarter of 2005. For the year ended December 31, 2006,
interest expense increased 61.3% to $10,888,000 from $6,751,000.
Noninterest income for the fourth quarter of 2006 increased 0.3% to $607,000
from $605,000 for the third quarter of 2006 and increased 6.5% from $570,000 for
the fourth quarter of 2005. For the year ended December 31, 2006, noninterest
income increased 4.9% to $2,443,000 from $2,329,000. Noninterest expense
decreased 2.1% to $3,526,000 from $3,602,000 in the third quarter of 2006 and
increased 6.9% from $3,298,000 for the fourth quarter of 2005. For the year
ended December 31, 2006, noninterest expense increased 6.6% to $14,388,000 from
$13,493,000.
Net loans as of December 31, 2006 increased $8,597,000 (2.3%) to $382,993,000
from $374,396,000 as of September 30, 2006 and increased $17,422,000 (4.8%) from
$365,571,000 as of December 31, 2005. Total deposits as of December 31, 2006
increased $431,000 to $493,875,000 from $493,444,000 as of September 30, 2006
but decreased $6,831,000 (1.4%) from $500,706,000 as of December 31, 2005.
Short-term borrowings increased 45.8% to $37,270,000 at December 31, 2006 from
$25,566,000 at September 30, 2006. Short-term borrowings are down 5.4% from
$39,386,000 at December 31, 2005.
"Shifting our loan and deposit portfolio mix towards commercial loans and
noninterest bearing deposits remains an important goal," said David Taber.
"Quarter over quarter, commercial loans are up 3%, noninterest-bearing deposits
are up 4% and over the one year period, commercial loans increased 10%."
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Credit quality remains good, with nonperforming loans and leases at 0.02% of
total loans and leases compared to 0.08% last quarter and 0.02% one year ago.
The allowance for loan and lease losses increased slightly to $5,874,000 as of
December 31, 2006 from $5,871,000 as of September 30, 2006 and increased from
$5,679,000 as of December 31, 2005. The provision for loan and lease losses was
$50,000 for the fourth quarter of 2006, an increase from $30,000 for the third
quarter of 2006 and no change from the fourth quarter of 2005. The reserve as a
percentage of loans and leases was 1.51% at December 31, 2006, compared to 1.54%
at September 30, 2006 and 1.53% at December 31, 2005. Non performing assets were
$78,000 and net chargeoffs were $125,000 for the year ended December 31, 2006.
Performance measures in the fourth quarter of 2006: the Return on Average Assets
(ROAA) was 1.61%, Return on Average Equity (ROAE) was 15.47%, Return on Average
Tangible Equity (ROATE) was 21.78% and the efficiency ratio was 46.12%. For the
quarter ended September 30, 2006, the Company had a ROAA of 1.50%, ROAE of
14.39%, ROATE of 20.16% and an efficiency ratio of 47.03%. For the year ended
December 31, 2006, the Company had a ROAA of 1.50%, ROAE of 14.48%, ROATE of
20.33% and an efficiency ratio of 47.11%.
Fourth Quarter Highlights
o American River Bankshares continues a long history of enhancing shareholder
value with its 92nd consecutive profitable quarter. In the fourth quarter
of 2006, the Company repurchased 28,500 shares totaling $728,000 and for
the year ended December 31, 2006, has repurchased 258,600 shares totaling
nearly $7,000,000. Also in the fourth quarter of 2006, the Company declared
a 5% stock dividend and quarterly cash dividend of 15 cents per share.
o Net interest margin for the fourth quarter of 2006 was 5.03% compared to
5.09% for the fourth quarter of 2005. Net interest margin for the year
ended December 31, 2006 was 5.03% compared to 4.98% for the year ended
December 31, 2005.
o American River Bank's offices in the Greater Sacramento Area and Placer
County experienced a slight decrease in total deposits of 0.2% to
$319,286,000 at December 31, 2006 from $319,958,000 at December 31, 2005.
Year over year, net loans increased 4.3% to $222,851,000 from $213,670,000.
o North Coast Bank, a division of American River Bank with three offices in
Sonoma County, increased total deposits 3.8% to $69,521,000 at December 31,
2006 from $66,984,000 as of December 31, 2005. Year over year, net loans
increased 18.0% to $83,302,000 from $70,613,000.
o Bank of Amador, a division of American River Bank with three offices in
Amador County, experienced a decrease in total deposits of 7.6% to
$105,375,000 at December 31, 2006 from $114,079,000 at December 31, 2005.
Year over year, net loans decreased 5.5% to $76,840,000 from $81,287,000.
o The American River Bankshares Foundation awarded a total of $70,000 during
its 2006 grant cycle to five non-profit organizations in the four counties
we serve. The mission of the American River Bankshares Foundation is to
support organizations that create opportunity, enhance self-esteem and
provide physical and emotional well-being for the most vulnerable women and
children.
2006 Year in Review Highlights
o American River Bank was awarded the 2006 Hands on Sacramento Award for
Encouraging Employee Volunteerism at the 18th Annual People Helping People
Awards, put on by the Community Service Planning Council. It pays tribute
to Sacramento-area companies and individuals serving as role models of
outstanding commitment to community service. This award recognizes a
business that supports employee volunteer projects as well as encouraging
year-round employee volunteerism.
o American River Bankshares was selected for the new NASDAQ Global Select
Market, which has the highest initial listing standards of any exchange in
the world based on financial and liquidity requirements, putting the
Company among some of the most well-respected organizations in the nation,
including Costco, Intel and Google to name a few.
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o U.S. Banker Magazine (July 2006) ranked AMRB as number thirty-five on their
"Top 200 Publicly Traded Community Banks" list for the second consecutive
year. The magazine's annual performance ranking includes banks and thrifts
with assets under $1 billion and lists each company by three-year average
rate of return on equity.
About American River Bankshares
- -------------------------------
American River Bankshares [NASDAQ: AMRB] is the parent company of American River
Bank ("ARB"), a community business bank serving Sacramento, CA that operates a
family of financial services providers, including North Coast Bank [a division
of "ARB"] in Sonoma County and Bank of Amador [a division of "ARB"] in Amador
County. For more information, please call 916-231-6700 or visit www.amrb.com;
www.americanriverbank.com; www.northcoastbank.com; or www.bankofamador.com.
Forward-Looking Statement
- -------------------------
Certain statements contained herein are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 that involve risks and uncertainties. Actual
results may differ materially from the results in these forward-looking
statements. Factors that might cause such a difference include, among other
matters, changes in interest rates, economic conditions, governmental regulation
and legislation, credit quality, and competition affecting the Company's
businesses generally; the risk of natural disasters and future catastrophic
events including terrorist related incidents; and other factors discussed in the
Company's Annual Report on Form 10-K for the year ended December 31, 2005, and
in reports filed on its 2006 Form 10-Q and Form 8-K. The Company does not
undertake any obligation to publicly update or revise any of these
forward-looking statements, whether to reflect new information, future events or
otherwise.
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American River Bankshares
Consolidated Balance Sheet (Unaudited)
December 31 September 30 December 31
ASSETS 2006 2006 2005
Cash and due from banks $ 25,352,000 $ 29,076,000 $ 34,825,000
Federal funds sold 0 0 1,250,000
Interest-bearing deposits in bank 4,951,000 4,951,000 4,844,000
Investment securities 151,311,000 149,776,000 171,809,000
Loans and leases:
Real estate 278,264,000 271,350,000 265,995,000
Commercial 85,859,000 83,128,000 77,971,000
Lease financing 6,375,000 6,686,000 7,967,000
Other 19,074,000 19,790,000 20,029,000
Deferred loan and lease originations fees, net (705,000) (687,000) (712,000)
Allowance for loan and lease losses (5,874,000) (5,871,000) (5,679,000)
-------------------------------------------------
Total loans and leases, net 382,993,000 374,396,000 365,571,000
-------------------------------------------------
Bank premises and equipment 1,846,000 1,905,000 2,090,000
Accounts receivable servicing receivable, net 2,581,000 2,611,000 2,000,000
Intangible assets 17,822,000 17,903,000 18,152,000
Accrued interest and other assets 17,147,000 11,481,000 12,222,000
-------------------------------------------------
$ 604,003,000 $ 592,099,000 $ 612,763,000
=================================================
LIABILITIES & EQUITY
Noninterest-bearing deposits $ 160,574,000 $ 154,549,000 $ 164,397,000
Interest checking 41,814,000 42,670,000 46,364,000
Money market 122,765,000 125,170,000 133,443,000
Savings 36,893,000 36,785,000 37,711,000
Time deposits 131,829,000 134,270,000 118,791,000
-------------------------------------------------
Total deposits 493,875,000 493,444,000 500,706,000
-------------------------------------------------
Short-term borrowings 37,270,000 25,566,000 39,386,000
Long-term debt 5,000,000 6,722,000 4,270,000
Accrued interest and other liabilities 5,487,000 4,747,000 5,655,000
-------------------------------------------------
Total liabilities 541,632,000 530,479,000 550,017,000
Total equity 62,371,000 61,620,000 62,746,000
-------------------------------------------------
$ 604,003,000 $ 592,099,000 $ 612,763,000
=================================================
Nonperforming loans and leases to total loans and leases 0.02% 0.08% 0.02%
Net chargeoffs to average loans and leases (annualized) 0.03% 0.03% 0.04%
Allowance for loan and lease loss to total loans and leases 1.51% 1.54% 1.53%
Leverage Ratio 7.81% 7.59% 7.64%
Tier 1 Risk-Based Capital Ratio 10.34% 10.19% 10.57%
Total Risk-Based Capital Ratio 11.59% 11.44% 11.82%
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American River Bankshares
Consolidated Statement of Income (Unaudited)
Fourth Fourth % For the year ended %
Quarter Quarter Change December 31 Change
2006 2005 2006 2005
------------------------------------------------------------------------------------
Interest income $ 9,637,000 $ 8,966,000 7.5% $ 37,954,000 $ 33,213,000 14.3%
Interest expense 2,860,000 2,011,000 42.2% 10,888,000 6,751,000 61.3%
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Net interest income 6,777,000 6,955,000 (2.6%) 27,066,000 26,462,000 2.3%
Provision for loan and lease losses 50,000 50,000 -- 320,000 322,000 (0.6%)
Total noninterest income 607,000 570,000 6.5% 2,443,000 2,329,000 4.9%
Total noninterest expense 3,526,000 3,298,000 6.9% 14,388,000 13,493,000 6.6%
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Income before taxes 3,808,000 4,177,000 (8.8%) 14,801,000 14,976,000 (1.2%)
Income taxes 1,401,000 1,610,000 (13.0%) 5,739,000 5,792,000 (0.9%)
------------------------------------------------------------------------------------
Net income $ 2,407,000 $ 2,567,000 (6.2%) $ 9,062,000 $ 9,184,000 (1.3%)
====================================================================================
Basic earnings per share $ 0.43 $ 0.43 -- $ 1.56 $ 1.56 --
Diluted earnings per share 0.42 0.43 (2.3%) 1.53 1.53 --
Average diluted shares outstanding 5,751,634 6,007,619 5,907,644 6,022,137
Net interest margin as a percentage 5.03% 5.09% 5.03% 4.98%
Operating Ratios:
Return on average assets 1.61% 1.67% 1.50% 1.54%
Return on average equity 15.47% 16.41% 14.48% 15.14%
Return on average tangible equity 21.78% 23.15% 20.33% 21.64%
Efficiency ratio (fully taxable equivalent) 46.12% 42.21% 47.11% 45.16%
Earnings per share have been adjusted for 5% stock dividends in 2006 and 2005
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American River Bankshares
Consolidated Statement of Income (Unaudited)
Trailing Four Quarters
Fourth Third Second First
Quarter Quarter Quarter Quarter
2006 2006 2006 2006
------------------------------------------------------------
Interest income $ 9,637,000 $ 9,737,000 $ 9,463,000 $ 9,117,000
Interest expense 2,860,000 2,939,000 2,764,000 2,325,000
------------------------------------------------------------
Net interest income 6,777,000 6,798,000 6,699,000 6,792,000
Provision for loan and lease losses 50,000 30,000 156,000 84,000
Total noninterest income 607,000 605,000 597,000 634,000
Total noninterest expense 3,526,000 3,602,000 3,622,000 3,638,000
------------------------------------------------------------
Income before taxes 3,808,000 3,771,000 3,518,000 3,704,000
Income taxes 1,401,000 1,496,000 1,381,000 1,461,000
------------------------------------------------------------
Net income $ 2,407,000 $ 2,275,000 $ 2,137,000 $ 2,243,000
============================================================
Basic earnings per share $ 0.43 $ 0.39 $ 0.36 $ 0.38
Diluted earnings per share 0.42 0.39 $ 0.36 0.37
Average diluted shares outstanding 5,751,634 5,885,968 5,983,079 6,013,008
Shares outstanding-end of period 5,657,346 5,677,875 5,812,355 5,905,876
Net interest margin as a percentage 5.03% 5.01% 4.96% 5.12%
Quarterly Operating Ratios:
Return on average assets 1.61% 1.50% 1.41% 1.49%
Return on average equity 15.47% 14.39% 13.53% 14.41%
Return on average tangible equity 21.78% 20.16% 18.92% 20.20%
Efficiency ratio (fully tax equivalent) 46.12% 47.03% 48.01% 47.34%
Earnings per share have been adjusted for 5% stock dividends in 2006 and 2005
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