Post on 30-May-2019
transcript
David E. Ritchie, Jr.
President
Chief Executive Officer
Giving Business More Reach
Mitchell A. Derenzo
Executive Vice President
Chief Financial Officer
Dan McGregor
Executive Vice President
Chief Credit Officer
NASDAQ: AMRB
AmericanRiverBank.com
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 and subject
to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, 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, 2018, and in subsequent reports filed on
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, except as required by law.
Forward-Looking Statements
2AmericanRiverBank.com
NASDAQ: AMRB
*FDIC market share data for Amador, Placer, Sacramento and Sonoma Counties as of June 30, 2018
Diverse and Large Market
$62 Billion in Deposit Potential*
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Strategic Direction
ORGANIC GROWTH
IN CURRENT MARKETS
Low-cost core deposits
Robust Sales Culture
Extraordinary Client
Experience*
BUSINESS BANKING
NICHES
Small business $1MM – $50MM
Building Trades
Wholesalers/ Manufacturers
Professionals
Property Managers
RELATIONSHIP
BANKING
Focus on the business, its
owners, their families and
their employees
Provide 360 degree banking
needs for each relationship
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*Client Satisfaction Score: 98.32% and Net Promoter Score: 83Annual data as of December 2018
Experienced Leadership Foundation for Future Growth
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Name Title Years At AMRB
Years In Industry
David Ritchie President & CEO 1 37
Mitchell Derenzo EVP & CFO 26 31
Kevin Bender EVP & COO 32 35
Dennis Raymond EVP & CLO 1 31
Dan McGregor EVP & CCO <1 35
Lisa Cisneros EVP, Retail Banking Manager 8 25
Net Income Breakdown
(Dollars in thousands) 2014 2015 2016 2017 2018
Net interest income
$18,797 $ 20,007 $ 20,243 $19,353 $20,646
Provision for loan or lease losses
(541) 0 (1,344) 450 175
Noninterest income
2,177 2,015 2,045 1,596 1,513
Noninterest expense
14,862 14,080 13,836 14,049 15,510
Income before income taxes
6,653 7,942 9,796 6,450 6,474
Provision for income taxes
2,292 2,674 3,392 3,252 1,574
Net income
$ 4,361 $ 5,268 $ 6,404 $3,198 $4,900
Earnings Per Share
$ 0.54 $ 0.70 $ 0.95 $0.50 $0.83
6AmericanRiverBank.comNASDAQ: AMRB
Gross Loans and Deposits
7AmericanRiverBank.comNASDAQ: AMRB
-
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
2014 2015 2016 2017 2018
252,358,000
294,077,000
328,908,000 313,191,000
322,908,000
510,693,000 530,690,000 544,806,000 556,080,000
590,674,000
Gross Loans Deposits
Total Deposit Mix Average Account Balances
Noninterest checking: $35,000
Interest checking: $34,000
Money market: $190,000
As of December 31, 2018
Success is in the Deposit Mix
Noninterest-
Bearing
36%
Interest
Checking
12%
Money Market
25%
Savings
12%
Time
15%
Business
73%
Personal
27%
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Cost of Deposits 0.23%
Of Noninterest
Bearing,
Money Market
and Interest
Checking
AmericanRiverBank.comNASDAQ: AMRB
As of December 31, 2018
Loan Portfolio
Commercial 9%
Owner-Occupied
CRE23%
Investor CRE 39%
Multi-Family
RE17%
Construction/Land2%
Residential RE 5%
Other 5%
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Yield on Loans 4.72%
AmericanRiverBank.comNASDAQ: AMRB
Asset Quality
10AmericanRiverBank.comNASDAQ: AMRB
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2013 2014 2015 2016 2017 2018
Tho
usa
nd
s
Non Performing Assets ALL
Strong Capital Position $75 million in Shareholder’s Equity
Tangible Book Value of $9.97 per share at December 31, 2018
2013 Stock Repurchase Program: 9% of outstanding shares (849,404 shares) at an average price of $8.24
2014 Stock Repurchase Program: 5% of outstanding shares (424,462 shares) at an average price of $9.77
2015 Stock Repurchase Program: 10% of outstanding shares (790,989 shares) at an average price of $9.92
2016 Stock Repurchase Program : 10% of outstanding shares (716,897 shares) at an average price of $10.34
2017 Stock Repurchase Program : 9% of outstanding shares (574,748 shares) at an average price of $14.99
2018 Stock Repurchase Program: 5% of outstanding shares (306,618 shares) at an average price of $15.52
Cash Dividends of $0.20 per share in both 2017 & 2018
Capital Ratios
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11.88% 11.60%10.97% 10.50%
9.45% 8.94%
23.20% 22.85%
20.59% 20.27%19.34%
17.29%
2013 2014 2015 2016 2017 2018
Leverage Ratio Total Risk-Based Capital Ratio
AmericanRiverBank.comNASDAQ: AMRB
The AMRB Difference
Business Banking Niches
Relationship Banking
Strong Core Deposit Base
Proven Track Record of
Efficiency & Bottom Line Focus
Organic Growth
Opportunities
Strategic Growth
Opportunities
12AmericanRiverBank.com
NASDAQ: AMRB