On December 11, 2024, American Riviera Bank (ARB) American Riviera Bancorp (ARBOTCQX: ARBV) took part in an interactive investor conference, showcasing the latest trends in the community banking industry alongside other leading California banks. CEO Jeff DeVine and CFO Michelle Martinich shared valuable insights into ARB’s current business state, industry trends, and future outlook.
We're excited to give you an inside look at how we're shaping the future of community banking. Join us as we explore ARB's commitment to personalized service and community growth. Read on to discover how we're not just keeping pace with change but setting new standards in banking that truly matter to you and our shared community.
ARB has achieved a 21% increase in tangible book value over the past year and is trading at 107% of tangible book value (91% excluding Accumulated Other Comprehensive Income, or AOCI). The bank boasts a strong deposit base, with 51% of total deposits in checking accounts and 41% being non-interest bearing, contributing to a low overall cost of funds.
ARB’s growth strategy focuses on expanding into underserved markets, capitalizing on disruptions from bank mergers and acquisitions, and successfully executing team lift-outs from other banks. A significant milestone was the implementation of a new core banking and online banking system in late 2023, which has already led to substantial core deposit growth. In Q3 2024 alone, ARB saw $60 million in core deposit growth, with $40 million in non-interest-bearing checking accounts.
ARB maintains a diverse commercial real estate portfolio with conservative underwriting practices, including a 3% rate shock test at loan origination. The bank's credit quality remains strong, with minimal past-due loans. As of September 30, 2024, nonperforming assets were $521,000, or 0.04% of total assets.
Looking ahead, ARB expects its blended loan yield to increase by the end of 2025. The bank is forecasting 10-13% annual tangible book value growth over the next 3 years and anticipates ROE to reach 10% by the end of 2025.
Jeff DeVine and Michelle Martinich discussed several key industry insights and ARB’s strategic positioning:
ARB’s competitive advantages include a strong relationship-banking model, flexibility and responsiveness, the ability to provide personalized service compared to larger banks, a successful track record of team lift-outs and expansions, and a deep understanding of local markets and industries.
American Riviera Bank’s presentation at the 2024 Investor Conference highlighted its strategic initiatives and robust financial health. With a focus on relationship banking, conservative risk management, and targeted growth initiatives, ARB is well-positioned to navigate the evolving financial landscape and continue delivering value to its shareholders, clients, and communities.
For a more detailed look at ARB’s strategies and financial performance, you can watch the full presentation on the Virtual Bank Conference website and view our presentation slides here.
