EXHIBIT 99.1
American River Bankshares Announces First Quarter 2007 Earnings
Sacramento, CA, April 19, 2007 - American River Bankshares (NASDAQ - GS: AMRB)
today reported net income for the first quarter of 2007 of $2,086,000, a 7.0%
decrease from $2,243,000 for the quarter ended March 31, 2006. Diluted earnings
per share for the first quarter of 2007 were unchanged at $0.37 per share from
the first quarter of 2006.
"The primary focus of our strategic plan remains to grow American River
Bankshares' profitability, which means making prudent decisions for long-term
success," said David Taber, President and CEO of American River Bankshares. "Our
financial metrics continue to differentiate our Company as a solid performer."
Net interest income for the first quarter of 2007 decreased 3.6% to $6,547,000
from $6,792,000 for the first quarter of 2006. Interest income for the first
quarter of 2007 increased 3.8% to $9,464,000 from $9,117,000 for the first
quarter of 2006. Average earning assets decreased $11,365,000 (2.1%) from the
first quarter of 2006 to the first quarter of 2007; the decrease is mainly the
result of a planned reduction in the investment portfolio. The proceeds were
primarily used to pay down short-term borrowings. The average level of loans
increased quarter over quarter by $16,841,000 (4.5%), which helped to increase
the interest income for the quarter. Although borrowings were down, interest
expense for the first quarter of 2007 increased 25.5% to $2,917,000 from
$2,325,000 for the first quarter of 2006. This increase is primarily related to
increased interest rates as a direct result of the higher overall rate
environment. The average yield on interest bearing liabilities increased 72
basis points from 2.46% during the first quarter of 2006 to 3.18% during the
first quarter of 2007.
Noninterest income for the first quarter of 2007 increased 1.1% to $641,000 from
$634,000 for the first quarter of 2006. Noninterest expense for the first
quarter of 2007 increased 1.5% to $3,692,000 from $3,638,000 for the first
quarter of 2006.
Net loans as of March 31, 2007 decreased $3,347,000 (0.9%) to $379,646,000 from
$382,993,000 as of December 31, 2006 but increased by $6,892,000 (1.8%) from
$372,754,000 as of March 31, 2006. Total deposits as of March 31, 2007 decreased
$8,131,000 (1.6%) to $485,744,000 from $493,875,000 as of December 31, 2006 and
decreased $10,212,000 (2.1%) from $495,956,000 as of March 31, 2006. Short-term
borrowings decreased 46.1% to $20,083,000 at March 31, 2007 from $37,270,000 at
December 31, 2006 and are down 49.8% from $40,029,000 at March 31, 2006.
Credit quality remains sound, with nonperforming loans and leases at 0.20% of
total loans and leases compared to 0.02% last quarter and 0.04% one year ago.
The allowance for loan and lease losses increased slightly to $5,935,000 as of
March 31, 2007 from $5,874,000 as of December 31, 2006 and increased from
$5,767,000 as of March 31, 2006. The provision for loan and lease losses was
$121,000 for the first quarter of 2007, an increase from $84,000 for the first
quarter of 2006. The reserve as a percentage of loans and leases was 1.54% at
March 31, 2007, compared to 1.51% at December 31, 2006 and 1.52% at March 31,
2006. Non performing assets were $766,000 and net chargeoffs were $60,000 for
the quarter ended March 31, 2007 compared to non performing assets of $78,000
and net chargeoffs of $47,000 for the quarter ended December 31, 2006.
Performance measures in the first quarter of 2007: the Return on Average Assets
(ROAA) was 1.44%, Return on Average Equity (ROAE) was 14.02%, Return on Average
Tangible Equity (ROATE) was 19.89% and the efficiency ratio was 49.68%. For the
quarter ended March 31, 2006, the Company had a ROAA of 1.49%, ROAE of 14.41%,
ROATE of 20.20% and an efficiency ratio of 47.34%.
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First Quarter Highlights
o American River Bankshares continues a long history of enhancing shareholder
value with its 93rd consecutive profitable quarter. In the first quarter of
2007, the Company repurchased 159,000 shares of common stock totaling
$4,079,000 and declared a quarterly cash dividend of 15 cents per share.
o Net interest margin for the first quarter of 2007 was 5.04% compared to
5.12% for the first quarter of 2006 and 5.03% for the quarter ended
December 31, 2006.
o American River Bank's offices in the Greater Sacramento Area and Placer
County experienced a decrease in total deposits of 1.9% to $309,600,000 at
March 31, 2007 from $315,623,000 at March 31, 2006. Quarter over quarter,
net loans increased 2.6% to $224,558,000 from $218,780,000.
o North Coast Bank, a division of American River Bank with three offices in
Sonoma County, increased total deposits 5.0% to $70,206,000 at March 31,
2007 from $66,836,000 as of March 31, 2006. Quarter over quarter, net loans
increased 28.0% to $86,355,000 from $67,487,000.
o Bank of Amador, a division of American River Bank with three offices in
Amador County, experienced a decrease in total deposits of 6.9% to
$106,087,000 at March 31, 2007 from $114,007,000 at March 31, 2006. Quarter
over quarter, net loans decreased 20.5% to $68,733,000 from $86,487,000.
o The Board of Directors of American River Bankshares appointed Dorene C.
Dominguez to the Company's Board of Directors and increased the size of the
Board from eight to nine members. Dorene Dominguez is President of Vanir
Group of Companies, a leader in the fields of real estate development,
construction and construction management.
About American River Bankshares
- -------------------------------
American River Bankshares [NASDAQ - GS: 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 916-851-0123 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, 2006, and
in reports filed on 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)
March 31 December 31 March 31
ASSETS 2007 2006 2006
Cash and due from banks $ 16,275,000 $ 25,352,000 $ 38,261,000
Federal funds sold 400,000 -- --
Interest-bearing deposits in bank 4,951,000 4,951,000 4,844,000
Investment securities 134,279,000 151,311,000 163,494,000
Loans and leases:
Real estate 274,007,000 278,264,000 267,388,000
Commercial 87,429,000 85,859,000 82,517,000
Lease financing 5,970,000 6,375,000 8,181,000
Other 18,805,000 19,074,000 21,089,000
Deferred loan and lease originations fees, net (630,000) (705,000) (654,000)
Allowance for loan and lease losses (5,935,000) (5,874,000) (5,767,000)
------------- ------------- -------------
Total loans and leases, net 379,646,000 382,993,000 372,754,000
------------- ------------- -------------
Bank premises and equipment 1,765,000 1,846,000 2,013,000
Accounts receivable servicing receivable, net 1,842,000 2,581,000 2,049,000
Intangible assets 17,745,000 17,822,000 18,069,000
Accrued interest and other assets 17,746,000 17,147,000 11,897,000
------------- ------------- -------------
$ 574,649,000 $ 604,003,000 613,381,000
------------- ------------- -------------
LIABILITIES & SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $ 146,964,000 $ 160,574,000 $ 161,836,000
Interest checking 39,676,000 41,814,000 47,679,000
Money market 131,891,000 122,765,000 123,457,000
Savings 39,135,000 36,893,000 35,423,000
Time deposits 128,078,000 131,829,000 127,561,000
------------- ------------- -------------
Total deposits 485,744,000 493,875,000 495,956,000
------------- ------------- -------------
Short-term borrowings 20,083,000 37,270,000 40,029,000
Long-term debt 2,500,000 5,000,000 8,254,000
Accrued interest and other liabilities 6,339,000 5,487,000 5,370,000
------------- ------------- -------------
Total liabilities 514,666,000 541,632,000 549,609,000
Total shareholders' equity 59,983,000 62,371,000 63,772,000
------------- ------------- -------------
$ 574,649,000 $ 604,003,000 $ 613,381,000
------------- ------------- -------------
Nonperforming loans and leases to total loans and leases 0.20% 0.02% 0.04%
Net chargeoffs to average loans and leases (annualized) 0.06% 0.03% 0.00%
Allowance for loan and lease loss to total loans and leases 1.54% 1.51% 1.52%
Leverage Ratio 7.46% 7.81% 7.93%
Tier 1 Risk-Based Capital Ratio 9.94% 10.34% 10.89%
Total Risk-Based Capital Ratio 11.19% 11.59% 12.14%
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American River Bankshares
Consolidated Statement of Income (Unaudited)
First First
Quarter Quarter %
2007 2006 Change
------------ ------------ ------------
Interest income $ 9,464,000 $ 9,117,000 3.8%
Interest expense 2,917,000 2,325,000 25.5%
------------ ------------ ------------
Net interest income 6,547,000 6,792,000 (3.6%)
Provision for loan and lease losses 121,000 84,000 44.0%
Total noninterest income 641,000 634,000 1.1%
Total noninterest expense 3,692,000 3,638,000 1.5%
------------ ------------ ------------
Income before taxes 3,375,000 3,704,000 (8.9%)
Income taxes 1,289,000 1,461,000 (11.8%)
------------ ------------ ------------
Net income $ 2,086,000 $ 2,243,000 (7.0%)
------------ ------------ ------------
Basic earnings per share $ 0.37 $ 0.38 (2.6%)
Diluted earnings per share $ 0.37 $ 0.37 --
Average diluted shares outstanding 5,644,056 5,726,674
Net interest margin as a percentage 5.04% 5.12%
Operating Ratios:
Return on average assets 1.44% 1.49%
Return on average equity 14.02% 14.41%
Return on average tangible equity 19.89% 20.20%
Efficiency ratio (fully taxable equivalent) 49.68% 47.34%
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American River Bankshares
Consolidated Statement of Income (Unaudited)
Trailing Four Quarters
First Fourth Third Second
Quarter Quarter Quarter Quarter
2007 2006 2006 2006
------------ ------------ ------------ ------------
Interest income $ 9,464,000 $ 9,637,000 $ 9,737,000 $ 9,463,000
Interest expense 2,917,000 2,860,000 2,939,000 2,764,000
------------ ------------ ------------ ------------
Net interest income 6,547,000 6,777,000 6,798,000 6,699,000
Provision for loan and lease losses 121,000 50,000 30,000 156,000
Total noninterest income 641,000 607,000 605,000 597,000
Total noninterest expense 3,692,000 3,526,000 3,602,000 3,622,000
------------ ------------ ------------ ------------
Income before taxes 3,375,000 3,808,000 3,771,000 3,518,000
Income taxes 1,289,000 1,401,000 1,496,000 1,381,000
------------ ------------ ------------ ------------
Net income $ 2,086,000 $ 2,407,000 $ 2,275,000 $ 2,137,000
------------ ------------ ------------ ------------
Basic earnings per share $ 0.37 $ 0.43 $ 0.39 $ 0.36
Diluted earnings per share $ 0.37 $ 0.42 $ 0.39 $ 0.36
Average diluted shares outstanding 5,644,056 5,751,634 5,885,968 5,983,079
Shares outstanding-end of period 5,520,433 5,657,346 5,677,875 5,812,355
Net interest margin as a percentage 5.04% 5.03% 5.01% 4.96%
Quarterly Operating Ratios:
Return on average assets 1.44% 1.61% 1.50% 1.41%
Return on average equity 14.02% 15.47% 14.39% 13.53%
Return on average tangible equity 19.89% 21.78% 20.16% 18.92%
Efficiency ratio (fully tax equivalent) 49.68% 46.12% 47.03% 48.01%
Earnings per share have been adjusted for a 5% stock dividend declared in 2006.
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