2015 Annual Shareholders Meeting May 17, 2016
Lawrence Koppelman Chair of the Board of Directors
Your Board of Directors Frank Burgess Darren D. Caesar Joe Campanelli Jeff DeVine Leonard Himelsein Jody Dolan Holehouse, CPA Weldon U. Howell, Jr. Lawrence Koppelman Douglas Margerum Julie McGovern Richard Scheinberg, MD
Your Executive Management Team Jeff DeVine, President Chief Executive Officer Joanne Funari, Executive Vice President Chief Operating Officer Ken Jacobsen, Executive Vice President Chief Credit Officer Michelle Martinich, Executive Vice President Chief Financial Officer Laurie Leighty, Executive Vice President Chief Administrative Officer
Michelle Martinich, Executive Vice President Chief Financial Officer and Corporate Secretary
Jeff DeVine, President Chief Executive Officer
Merger Completion October 27, 2015- Shareholder Approval January 1, 2016- Merger Closed January 16, 2016- System Conversion January 19, 2016- Closure of The Bank of Santa Barbara Figueroa Branch April 27, 2016- Release of 1 st Quarter Financial Performance
2016 1 st Quarter Financial Highlights $176,000 of Net Income ($0.04 per share) Includes $944,000 of non-recurring merger related costs Pre-tax, operating income excluding non-recurring merger related costs was $1,652,000 ($0.38 per share) in 1Q16 versus $734,000 ($0.27 per share) in 1Q15 (41% better on a share adjusted basis) $366 million in Total Deposits $361 million in Total Loans $416 million in Total Assets
Financial Performance Looking Ahead (in thousands) Our goal is to reach a $1 per share earnings run rate by year end We believe this is possible: 1st Quarter pre-tax operating income excluding merger related costs: $1,652 Pre-tax operating income excluding merger related costs annualized: $6,608 Tax Rate Assumption of 40% $2,643 Net Income $3,965 Shares Outstanding 4,308 Amount needed to achieve a $1 per share run rate $343 Opportunities to achieve the $343k gap SBA loan sale premiums –No sales recorded 1 st Quarter but department pipeline is ramping up Organic loan growth (10%-12%) Realizing merger efficiencies and synergies 9
Market Share June 2015 Santa Barbara County Institution Name (dollars in thousands) Deposit Amount Market Share 1 Bank of America, National Association $ 2,423,944 19.40% 2 MUFG Union Bank, National Association $ 2,196,770 17.58% 3 Wells Fargo Bank, National Association $ 2,093,140 16.76% 4 Rabobank, National Association $ 1,233,395 9.87% 5 Montecito Bank & Trust $ 959,413 7.68% 6 JPMorgan Chase Bank, National Association $ 933,669 7.47% 7 Heritage Oaks Bank $ 438,455 3.51% 8 Community West Bank, National Association $ 401,056 3.21% COMBINED BANK- American Riviera Bank $ 346,294 2.77% 9 First Republic Bank $ 290,973 2.33% 10 The Northern Trust Company $ 200,135 1.60% 11 American Riviera Bank $ 195,011 1.56% 12 Community Bank of Santa Maria $ 194,596 1.56% 13 Bank of the West $ 183,022 1.47% 14 Pacific Western Bank $ 161,004 1.29% 15 The Bank of Santa Barbara $ 151,283 1.21% 16 Banc of California, N.A. $ 141,260 1.13% 17 First Bank $ 125,832 1.01% 18 Citibank, National Association $ 105,326 0.84% 19 U.S. Bank National Association $ 53,268 0.43% 20 Ojai Community Bank $ 9,690 0.08% 21 Armed Forces Bank, National Association $ 1,245 0.01%
Market Share June 2015 City of Santa Barbara Institution Name (dollars in thousands) Deposit Amount Market Share 1 Bank of America, National Association $ 1,872,499 24.11% 2 MUFG Union Bank, National Association $ 1,499,074 19.31% 3 Wells Fargo Bank, National Association $ 1,481,789 19.08% 4 Montecito Bank & Trust $ 551,465 7.10% 5 JPMorgan Chase Bank, National Association $ 486,846 6.27% COMBINED BANK- American Riviera Bank $ 324,830 4.02% 6 First Republic Bank $ 290,973 3.75% 7 Rabobank, National Association $ 263,072 3.39% 8 Heritage Oaks Bank $ 206,930 2.66% 9 The Northern Trust Company $ 200,135 2.58% 10 American Riviera Bank $ 195,011 2.51% 11 Bank of the West $ 183,022 2.36% 12 Banc of California, N.A. $ 141,260 1.82% 13 The Bank of Santa Barbara $ 129,819 1.67% 14 Citibank, National Association $ 105,326 1.36% 15 First Bank $ 66,460 0.86% 16 U.S. Bank National Association $ 38,324 0.49% 17 Community West Bank, National Association $ 36,355 0.47% 18 Ojai Community Bank $ 9,690 0.12% 19 Pacific Western Bank $ 6,983 0.09%
Financial Trends 1 st Quarter End Deposit Mix SAV 7% Demand Deposits 33%
Stock Price vs. Book Value Market close yesterday: $10.85 Stock Price -Stock price increase since merger announcement: $1.15 or 12% Tangible Book Value
Our Focus Streamline operations and optimize synergies Subleased former The Bank of Santa Barbara downtown branch in April 2016 Optimal staffing levels being determined Mortgage opportunities to former BSB customers SBA opportunities to former ARB customers Continue to build a diversified loan portfolio Continue to increase deposit market share Maintain adequate capital for growth Earnings run rate by year end will approach 1% ROA and 10% ROE
2015 Annual Shareholders Meeting May 17, 2016
Cautionary Note: Forward Looking Statements · This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding American Riviera Bank (ARB). All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the performance or achievements of ARB to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made, and ARB assumes no duty to update forward looking statements. Such forward-looking statements include, but are not limited to, statements about the benefits of the recent merger, future financial and operating results, and the company’s plans, objectives, expectations and intentions and other statements that are not historical facts. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: (i) the risk that the benefits from the recent merger may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which ARB operates; (ii) the ability to promptly and effectively integrate the businesses of the legacy banks; (iii) the reaction to the transaction of the legacy banks’ customers, employees and counterparties; (iv) expected or unexpected merger-related expenses and diversion of management time on merger integration related issues; and (v) lower than expected revenues, credit quality deterioration or a reduction in real estate values or a reduction in net earnings. · Annualized, pro forma, projected and estimated numbers and percentages are used for illustrative purposes only, are not forecasts and may not reflect actual results.
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