American River Bankshares Announces Fourth Quarter Earnings.SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Calif. -- American River
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMRB) today reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter of 2006 of $0.42, a 7.7% increase from $0.39 recorded in the third quarter of 2006 and a 2.3% decrease from $0.43 for the fourth quarter of 2005. Net income for the fourth quarter of 2006 increased 5.8% to $2,407,000 from $2,275,000 during the third quarter of 2006 and decreased 6.2% from $2,567,000 for the fourth quarter of 2005. Diluted earnings per share for the year ended December December: see month. 31, 2006 remained constant at $1.53 and net income decreased 1.3% to $9,062,000 from $9,184,000 for the year ended December 31, 2005. "We are pleased to finish 2006 with solid results," said David T. Taber Taber (tā`bər), town (1991 pop. 6,660), S Alta., Canada, NE of Lethbridge. The area is irrigated for crop and livestock raising. The town has a sugar beet refinery and a vegetable cannery. Coal, oil, and natural gas are found nearby. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of American River Bankshares. "The last two quarters have each been better than the previous and our key industry metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. are very good." He added: "The economy is strong, but the rapid increase in funding costs has made 2006 tough. As a Company, we believe that we're we're Contraction of we are. we're we are up to the challenge of positioning ourselves as the premier business bank in the communities we serve." Net interest income for the fourth quarter of 2006 decreased 0.3% to $6,777,000 from $6,798,000 for the third quarter of 2006 and decreased 2.6% from $6,955,000 for the fourth quarter of 2005. Interest income for the fourth quarter of 2006 decreased 1.0% to $9,637,000 from $9,737,000 for the third quarter of 2006 and increased 7.5% from $8,966,000 for the fourth quarter of 2005. For the year ended December 31, 2006, net interest income increased 2.3% to $27,066,000 from $26,462,000 and interest income increased 14.3% to $37,954,000 from $33,213,000 for the year ended December 31, 2005. Net interest margin as a percentage increased to 5.03% for the fourth quarter of 2006 from 5.01% for the third quarter of 2006 and decreased from 5.09% for the fourth quarter of 2005. For the year ended December 31, 2006, net interest margin as a percentage increased to 5.03% from 4.98% for the year ended December 31, 2005. Interest expense for the fourth quarter of 2006 decreased 2.7% to $2,860,000 from $2,939,000 for the third quarter of 2006 and increased 42.2% from $2,011,000 for the fourth quarter of 2005. For the year ended December 31, 2006, interest expense increased 61.3% to $10,888,000 from $6,751,000. Noninterest income for the fourth quarter of 2006 increased 0.3% to $607,000 from $605,000 for the third quarter of 2006 and increased 6.5% from $570,000 for the fourth quarter of 2005. For the year ended December 31, 2006, noninterest income increased 4.9% to $2,443,000 from $2,329,000. Noninterest expense decreased 2.1% to $3,526,000 from $3,602,000 in the third quarter of 2006 and increased 6.9% from $3,298,000 for the fourth quarter of 2005. For the year ended December 31, 2006, noninterest expense increased 6.6% to $14,388,000 from $13,493,000. Net loans as of December 31, 2006 increased $8,597,000 (2.3%) to $382,993,000 from $374,396,000 as of September 30, 2006 and increased $17,422,000 (4.8%) from $365,571,000 as of December 31, 2005. Total deposits as of December 31, 2006 increased $431,000 to $493,875,000 from $493,444,000 as of September 30, 2006 but decreased $6,831,000 (1.4%) from $500,706,000 as of December 31, 2005. Short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings increased 45.8% to $37,270,000 at December 31, 2006 from $25,566,000 at September 30, 2006. Short-term borrowings are down 5.4% from $39,386,000 at December 31, 2005. "Shifting our loan and deposit portfolio mix towards commercial loans and noninterest bearing deposits remains an important goal," said David Taber. "Quarter over quarter, commercial loans are up 3%, noninterest-bearing deposits are up 4% and over the one year period, commercial loans increased 10%." Credit quality remains good, with nonperforming loans and leases at 0.02% of total loans and leases compared to 0.08% last quarter and 0.02% one year ago. The allowance for loan and lease losses increased slightly to $5,874,000 as of December 31, 2006 from $5,871,000 as of September 30, 2006 and increased from $5,679,000 as of December 31, 2005. The provision for loan and lease losses was $50,000 for the fourth quarter of 2006, an increase from $30,000 for the third quarter of 2006 and no change from the fourth quarter of 2005. The reserve as a percentage of loans and leases was 1.51% at December 31, 2006, compared to 1.54% at September 30, 2006 and 1.53% at December 31, 2005. Non performing assets Non Performing Asset Any asset that is not effectively producing income. Notes: For example, an overdue loan would be considered non-performing. See also: Asset, Charge Off, Non-Performing Loan were $78,000 and net chargeoffs were $125,000 for the year ended December 31, 2006. Performance measures in the fourth quarter of 2006: the Return on Average Assets (ROAA ROAA Return on Average Assets (business, banking, accounting) ROAA Rural Oregon Arts Association ROAA Royce Online Account Access (Royce Fund Services, Inc. ) was 1.61%, Return on Average Equity (ROAE ROAE Return on Average Equity ) was 15.47%, Return on Average Tangible Equity (ROATE) was 21.78% and the efficiency ratio was 46.12%. For the quarter ended September 30, 2006, the Company had a ROAA of 1.50%, ROAE of 14.39%, ROATE of 20.16% and an efficiency ratio of 47.03%. For the year ended December 31, 2006, the Company had a ROAA of 1.50%, ROAE of 14.48%, ROATE of 20.33% and an efficiency ratio of 47.11%. Fourth Quarter Highlights * American River Bankshares continues a long history of enhancing shareholder value with its 92nd consecutive profitable quarter. In the fourth quarter of 2006, the Company repurchased 28,500 shares totaling $728,000 and for the year ended December 31, 2006, has repurchased 258,600 shares totaling nearly $7,000,000. Also in the fourth quarter of 2006, the Company declared a 5% stock dividend and quarterly cash dividend of 15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . * Net interest margin for the fourth quarter of 2006 was 5.03% compared to 5.09% for the fourth quarter of 2005. Net interest margin for the year ended December 31, 2006 was 5.03% compared to 4.98% for the year ended December 31, 2005. * American River Bank's offices in the Greater Sacramento Area and Placer County experienced a slight decrease in total deposits of 0.2% to $319,286,000 at December 31, 2006 from $319,958,000 at December 31, 2005. Year over year, net loans increased 4.3% to $222,851,000 from $213,670,000. * North Coast Bank, a division of American River Bank with three offices in Sonoma County, increased total deposits 3.8% to $69,521,000 at December 31, 2006 from $66,984,000 as of December 31, 2005. Year over year, net loans increased 18.0% to $83,302,000 from $70,613,000. * Bank of Amador, a division of American River Bank with three offices in Amador County, experienced a decrease in total deposits of 7.6% to $105,375,000 at December 31, 2006 from $114,079,000 at December 31, 2005. Year over year, net loans decreased 5.5% to $76,840,000 from $81,287,000. * The American River Bankshares Foundation awarded a total of $70,000 during its 2006 grant cycle to five non-profit organizations A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. in the four counties we serve. The mission of the American River Bankshares Foundation is to support organizations that create opportunity, enhance self-esteem self-esteem Sense of personal worth and ability that is fundamental to an individual's identity. Family relationships during childhood are believed to play a crucial role in its development. and provide physical and emotional well-being for the most vulnerable women and children. 2006 Year in Review Highlights * American River Bank was awarded the 2006 Hands on Sacramento Award for Encouraging Employee Volunteerism vol·un·teer·ism n. Use of or reliance on volunteers, especially to perform social or educational work in communities. volunteerism at the 18th Annual People Helping People Awards, put on by the Community Service Planning Council. It pays tribute to Sacramento-area companies and individuals serving as role models of outstanding commitment to community service. This award recognizes a business that supports employee volunteer projects as well as encouraging year-round employee volunteerism. * American River Bankshares was selected for the new NASDAQ Global Select Market, which has the highest initial listing standards of any exchange in the world based on financial and liquidity requirements, putting the Company among some of the most well-respected organizations in the nation, including Costco, Intel and Google (Google, Mountain View, CA, www.google.com) The largest search engine on the Web, founded by Larry Page and Sergey Brin, two Stanford University students. In 1996, they developed their "BackRub" search engine, named after its unique page ranking method (explained below). to name a few. * U.S. Banker Magazine (July 2006) ranked AMRB as number thirty-five on their "Top 200 Publicly Traded Community Banks" list for the second consecutive year. The magazine's annual performance ranking includes banks and thrifts with assets under $1 billion and lists each company by three-year average rate of return on equity. About American River Bankshares American River Bankshares [NASDAQ:AMRB] is the parent company of American River Bank ("ARB"), a community business bank serving Sacramento, CA that operates a family of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. 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 916-231-6700 or visit www.amrb.com; www.americanriverbank.com; www.northcoastbank.com; or www.bankofamador.com. Forward-Looking Statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005, and in reports filed on its 2006 Form 10-Q Form 10-Q See 10-Q. and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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