EXHIBIT 99.1
American River Bankshares Announces Third Quarter Results
Sacramento, CA, October 18, 2007 - American River Bankshares (NASDAQ-GS: AMRB)
today reported diluted earnings per share for the third quarter of 2007 of
$0.39, a 2.6% increase from $0.38 recorded during the second quarter of 2007 and
the same as the third quarter of 2006. Net income for the third quarter of 2007
increased 2.6% to $2,152,000 from $2,098,000 during the second quarter of 2007
and decreased 5.4% compared to $2,275,000 for the third quarter of 2006. Diluted
earnings per share for the nine months ended September 30, 2007 increased 0.9%
to $1.13 from $1.12 for the same period in 2006. Net income for the nine months
ended September 30, 2007 declined 4.8% to $6,336,000 from $6,655,000 for the
nine months ended September 30, 2006.
"American River Bankshares' EPS is up for the second quarter in a row and ahead
of last year on a year-to-date basis," said David T. Taber, President and CEO of
American River Bankshares. "Our team continues to execute our Company's
philosophy of `Consistency Builds Value'."
Net interest income for the third quarter of 2007 increased 1.0% to $6,680,000
from $6,609,000 for the second quarter of 2007 but decreased 1.7% from
$6,798,000 for the third quarter of 2006. Interest income for the third quarter
of 2007 decreased 0.5% to $9,454,000 from $9,498,000 for the second quarter of
2007 and decreased 2.9% from $9,737,000 for the third quarter of 2006. During
the third quarter, the Company placed three loans on non-accrued status -
forgone interest on those three loans represented $99,000 during the quarter.
For the nine months ended September 30, 2007, net interest income decreased 2.2%
to $19,836,000 from $20,289,000 for the nine months ended September 30, 2006 and
interest income increased 0.3% to $28,416,000 from $28,317,000 during the same
period.
Interest income for the third quarter of 2007 decreased 0.5% to $9,454,000 from
$9,498,000 for the second quarter of 2007 and decreased 2.9% from $9,737,000 for
the third quarter of 2006. For the nine months ended September 30, 2007,
interest income increased 0.3% to $28,416,000 from $28,317,000 for the nine
months ended September 30, 2006.
Interest expense for the third quarter of 2007 decreased 4.0% to $2,774,000 from
$2,889,000 for the second quarter of 2007 and decreased 5.6% from $2,939,0000
for the third quarter of 2006. For the nine months ended September 30, 2007,
interest expense increased 6.9% to $8,580,000 from $8,028,000 for the nine
months ended September 30, 2006.
Net interest margin as a percentage increased to 5.17% for the third quarter of
2007 from 5.10% for the second quarter of 2007 and from 5.01% for the third
quarter of 2006. For the nine months ended September 30, 2007, net interest
margin as a percentage increased to 5.10% from 5.03% for the nine months ended
September 30, 2006.
Noninterest income for the third quarter of 2007 decreased 7.6% to $669,000 from
$724,000 for the second quarter of 2007 but increased 10.6% from $605,000 for
the third quarter of 2006. For the nine months ended September 30, 2007,
noninterest income increased 10.8% to $2,034,000 from $1,836,000 for the same
period in 2006. Noninterest expense increased 0.4% to $3,796,000 from $3,779,000
in the second quarter of 2007 and increased 5.4% from $3,602,000 for the third
quarter of 2006. For the nine months ended September 30, 2007, noninterest
expense increased 3.7% to $11,267,000 from $10,862,000.
Net loans as of September 30, 2007 decreased $409,000 (0.1%) to $385,176,000
from $385,585,000 as of June 30, 2007 but increased $10,780,000 (2.9%) from
$374,396,000 as of September 30, 2006. Since December 31, 2006, net loans have
increased $2,183,000 (0.6%) from $382,993,000. The primary increase was in
commercial loans, which have increased 16.4% from December 31, 2006 ending the
quarter at $99,959,000. As a percentage of the loan portfolio, commercial loans
now represent 25.5% of the total compared to 21.8% one year ago. Offsetting this
increase was a decrease in real estate loans of 3.9% over the same period ending
the quarter at $267,304,000.
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"Our intense focus on business banking is producing results, with commercial
loans at a record high at just under $100 million," said Taber. "There is still
a need in the market for business banking solutions and our Company is
positioned to fulfill that need."
Total deposits as of September 30, 2007 decreased 9,679,000 (2.0%) to
$472,074,000 from $481,753,000 as of June 30, 2007 and decreased $21,370,000
(4.3%) from $493,444,000 as of September 30, 2006. Since December 31, 2006,
total deposits decreased $21,801,000 (4.4%) from $493,875,000. Total borrowings
decreased 2.7% to $27,921,000 at September 30, 2007 from $28,695,000 at June 30,
2007. Total borrowings decreased 13.3% from $32,228,000 at September 30, 2006.
At September 30, 2007, the allowance for loan and lease losses totaled
$5,889,000 compared to $5,972,000 at June 30, 2007 and $5,871,000 at September
30, 2006. The provision for loan and lease losses was $50,000 for the third
quarter of 2007, compared to $144,000 for the second quarter of 2007 and from
$30,000 for the third quarter of 2006. The allowance as a percentage of loans
and leases was 1.51% at September 30, 2007, compared to 1.53% at June 30, 2007
and 1.54% at September 30, 2006. Net chargeoffs for the third quarter were
$133,000 and for the first nine months of 2007 net chargeoffs were $300,000.
Nonperforming loans and leases as of September 30, 2007 were at 0.79% of total
loans and leases compared to 0.21% last quarter and 0.08% one year ago.
Nonperforming assets were $3,100,000 at September 30, 2007 up from $818,000 at
June 30, 2007. One loan in the amount of $450,000 included in the $818,000
balance as of June 30, 2007 paid off in full during the third quarter.
Contributing to the increase during the third quarter were three loans that
totaled $2,761,000 (89.1% of the total). The first of these loans had a balance
of $1,328,000 and is a development loan for residential lots; the second loan
had a balance of $1,111,000 and is a real estate loan on a multi-tenant office
building; and the third loan, in the amount of $322,000, is secured by a
seven-acre parcel in a rural part of Sacramento County. Management believes that
all three of these loans are adequately secured and adequately reserved. The
remaining balance of the nonperforming loans and leases totaled $339,000 and
represented 11 accounts, mainly small dollar leases. Subsequent to quarter end
one of the 11 small dollar-nonperforming assets was acquired in a foreclosure
sale. The carrying value of this real estate owned property represents $57,000.
"Although nonperforming assets ended the quarter at just over $3 million, the
total represents less than 1% of total loans," continued Taber. "Our
high-quality credit culture remains intact and executive management is actively
managing our nonperforming assets."
Performance measures in the third quarter of 2007: the Return on Average Assets
(ROAA) was 1.50%, Return on Average Equity (ROAE) was 13.99%, Return on Average
Tangible Equity (ROATE) was 19.68% and the efficiency ratio was 50.02%. For the
nine months ended September 30, 2007, the Company had a ROAA of 1.47%, ROAE of
13.97%, ROATE of 19.75% and an efficiency ratio of 49.86%.
Third Quarter Highlights
o American River Bankshares continues a long history of enhancing
shareholder value with its 95th consecutive profitable quarter. During
the third quarter, the Company repurchased 80,000 shares of its common
stock at an average price of $23.31. Year to date, the Company has
repurchased 239,000 shares of its common stock totaling $5,943,000 and
declared three quarterly cash dividends of $0.15 per share.
o Net interest margin for the third quarter of 2007 was 5.17% compared to
5.01% for the third quarter of 2006 and was 5.10% for the nine months
ended September 30, 2007 compared to 5.03% for the nine months ended
September 30, 2006.
o American River Bank's offices in the Greater Sacramento Area and Placer
County experienced a decrease in total deposits of 6.1% to $298,546,000
at September 30, 2007 from $317,860,000 at September 30, 2006. Compared
to one year ago, net loans increased 6.2% to $233,326,000 from
$219,683,000.
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o North Coast Bank, a division of American River Bank with three offices
in Sonoma County, experienced a decrease in total deposits of 10.7% to
$60,868,000 at September 30, 2007 from $68,159,000 as of September 30,
2006. Compared to one year ago, net loans increased 12.9% to
$86,064,000 from $76,241,000.
o Bank of Amador, a division of American River Bank with three offices in
Amador County, experienced a decrease in total deposits of 10.9% to
$95,894,000 at September 30, 2007 from $107,661,000 at September 30,
2006. Compared to one year ago, net loans decreased 16.2% to
$65,787,000 from $78,472,000.
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)
September 30 December 31 September 30
2007 2006 2006
------------- ------------- -------------
ASSETS
Cash and due from banks $ 18,605,000 $ 25,352,000 $ 29,076,000
Federal funds sold -- -- --
Interest-bearing deposits in bank 4,851,000 4,951,000 4,951,000
Investment securities 120,135,000 151,311,000 149,776,000
Loans and leases:
Real estate 267,304,000 278,264,000 271,350,000
Commercial 99,959,000 85,859,000 83,128,000
Lease financing 4,950,000 6,375,000 6,686,000
Other 19,436,000 19,074,000 19,790,000
Deferred loan and lease originations fees, net (584,000) (705,000) (687,000)
Allowance for loan and lease losses (5,889,000) (5,874,000) (5,871,000)
-------------------------------------------------
Total loans and leases, net 385,176,000 382,993,000 374,396,000
-------------------------------------------------
Bank premises and equipment 1,871,000 1,846,000 1,905,000
Accounts receivable servicing receivable, net 1,876,000 2,581,000 2,611,000
Goodwill and intangible assets 17,590,000 17,822,000 17,903,000
Accrued interest and other assets 17,131,000 17,147,000 11,481,000
-------------------------------------------------
$ 567,235,000 $ 604,003,000 $ 592,099,000
=================================================
LIABILITIES & SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $ 138,966,000 $ 160,574,000 $ 154,549,000
Interest checking 45,015,000 41,814,000 42,670,000
Money market 133,237,000 122,765,000 125,170,000
Savings 36,385,000 36,893,000 36,785,000
Time deposits 118,471,000 131,829,000 134,270,000
-------------------------------------------------
Total deposits 472,074,000 493,875,000 493,444,000
-------------------------------------------------
Short-term borrowings 27,921,000 37,270,000 25,566,000
Long-term borrowings -- 5,000,000 6,722,000
Accrued interest and other liabilities 5,756,000 5,487,000 4,747,000
-------------------------------------------------
Total liabilities 505,751,000 541,632,000 530,479,000
Total shareholders' equity 61,484,000 62,371,000 61,620,000
-------------------------------------------------
$ 567,235,000 $ 604,003,000 $ 592,099,000
=================================================
Nonperforming loans and leases to total loans
and leases 0.79% 0.02% 0.08%
Net chargeoffs to average loans and leases
(annualized) 0.10% 0.03% 0.03%
Allowance for loan and lease loss to total loans
and leases 1.51% 1.51% 1.54%
Leverage Ratio 7.99% 7.81% 7.59%
Tier 1 Risk-Based Capital Ratio 10.13% 10.34% 10.19%
Total Risk-Based Capital Ratio 11.38% 11.59% 11.44%
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American River Bankshares
Consolidated Statement of Income (Unaudited)
Third Third For the Nine Months
Quarter Quarter % Ended September 30 %
2007 2006 Change 2007 2006 Change
----------------------------------------------------------------------------------
Interest income $ 9,454,000 $ 9,737,000 (2.9%) $28,416,000 $28,317,000 0.3%
Interest expense 2,774,000 2,939,000 (5.6%) 8,580,000 8,028,000 6.9%
----------------------------------------------------------------------------------
Net interest income 6,680,000 6,798,000 (1.7%) 19,836,000 20,289,000 (2.2%)
Provision for loan and lease losses 50,000 30,000 66.7% 315,000 270,000 16.7%
Total noninterest income 669,000 605,000 10.6% 2,034,000 1,836,000 10.8%
Total noninterest expense 3,796,000 3,602,000 5.4% 11,267,000 10,862,000 3.7%
----------------------------------------------------------------------------------
Income before taxes 3,503,000 3,771,000 (7.1%) 10,288,000 10,993,000 (6.4%)
Income taxes 1,351,000 1,496,000 (9.7%) 3,952,000 4,338,000 (8.9%)
----------------------------------------------------------------------------------
Net income $ 2,152,000 $ 2,275,000 (5.4%) $ 6,336,000 $ 6,655,000 (4.8%)
==================================================================================
Basic earnings per share $ 0.39 $ 0.39 -- $ 1.15 $ 1.14 0.9%
Diluted earnings per share $ 0.39 $ 0.39 -- $ 1.13 $ 1.12 0.9%
Average diluted shares outstanding 5,546,172 5,890,331 5,592,487 5,960,219
Net interest margin as a percentage 5.17% 5.01% 5.10% 5.03%
Operating Ratios:
Return on average assets 1.50% 1.50% 1.47% 1.47%
Return on average equity 13.99% 14.39% 13.97% 14.11%
Return on average tangible equity 19.68% 20.16% 19.75% 19.76%
Efficiency ratio (fully taxable
equivalent) 50.02% 47.03% 49.86% 47.45%
Earnings per share have been adjusted for a 5% stock dividend declared in 2006.
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American River Bankshares
Consolidated Statement of Income (Unaudited)
Trailing Four Quarters
Third Second First Fourth
Quarter Quarter Quarter Quarter
2007 2007 2007 2006
------------------------------------------------------------
Interest income $ 9,454,000 $ 9,498,000 $ 9,464,000 $ 9,637,000
Interest expense 2,774,000 2,889,000 2,917,000 2,860,000
------------------------------------------------------------
Net interest income 6,680,000 6,609,000 6,547,000 6,777,000
Provision for loan and lease losses 50,000 144,000 121,000 50,000
Total noninterest income 669,000 724,000 641,000 607,000
Total noninterest expense 3,796,000 3,779,000 3,692,000 3,526,000
------------------------------------------------------------
Income before taxes 3,503,000 3,410,000 3,375,000 3,808,000
Income taxes 1,351,000 1,312,000 1,289,000 1,401,000
------------------------------------------------------------
Net income $ 2,152,000 $ 2,098,000 $ 2,086,000 $ 2,407,000
============================================================
Basic earnings per share $ 0.39 $ 0.38 $ 0.37 $ 0.43
Diluted earnings per share $ 0.39 $ 0.38 $ 0.37 $ 0.42
Average diluted shares for the period 5,546,172 5,589,141 5,644,056 5,751,634
Shares outstanding-end of period 5,471,194 5,528,863 5,520,433 5,657,346
Net interest margin as a percentage 5.17% 5.10% 5.04% 5.03%
Quarterly Operating Ratios:
Return on average assets 1.50% 1.46% 1.44% 1.61%
Return on average equity 13.99% 13.91% 14.02% 15.47%
Return on average tangible equity 19.68% 19.67% 19.89% 21.78%
Efficiency ratio (fully tax equivalent) 50.02% 49.87% 49.68% 46.12%
Earnings per share have been adjusted for a 5% stock dividend declared in 2006.
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