By Jorge Mercado Wednesday, July 31st, 2024

Santa Barbara-based American Riviera Bank saw net income take a slight dip in the second quarter of 2024.

Announced July 24, ARB noted net income of $2.5 million for the quarter ended June 30, down from $2.7 million in the same quarter a year ago. 

According to a press release, the dip in net income could be attributed to increased interest expense on deposits and borrowings.

The bank continues to grow interest and fees on loans sequentially over the last four quarters from $11.2 million in the first quarter of 2023 to $12.7 million in the first quarter of 2024, representing a $1.5 million or 13.1% increase. 

Total loans were $963.7 million, an increase of $12.9 million or 1.4% from the prior quarter-end, and an increase of $18.3 million or 1.9% from the second quarter of 2023. 

Total deposits were $1.07 billion, a decrease of $14.5 million or 1.3% compared to the same quarter a year ago. 

During the second quarter,  the return on average assets for the second quarter ended June 30 was 0.77%, and the return on average equity was 9.57%.

Moreover, non-interest-bearing demand deposits represent 39.8% of total deposits, and total demand deposits represent 50.1% of total deposits.

“We continue to expand and grow our client base, opening over 1,100 new demand deposit and savings accounts in the first half of the year. We opened our Atascadero branch just a few weeks ago and have already gathered over $5 million in new deposits,” CEO Jeff Devine said in a press release. 

“Loan demand is increasing, allowing us to serve customer needs, support the growth of our communities and enhance shareholder return.”