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NEWS RELEASE
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FOR IMMEDIATE RELEASE MEDIA & INVESTOR CONTACTS:
--------------------------
David Taber, President & CEO
AMERICAN RIVER HOLDINGS
(916) 231-6114
Mitchell A. Derenzo, CFO
AMERICAN RIVER HOLDINGS
(916) 231-6123
SACRAMENTO, CA - AUGUST 18, 2000
AMERICAN RIVER HOLDINGS ANNOUNCES RESULTS FOR 2ND QUARTER 2000
American River Holdings (AMRB.OB), the parent company of American River Bank and
FIRST SOURCE CAPITAL, reported today a 25% increase in core diluted earnings per
share and a 20% growth in total assets. This was the 66TH CONSECUTIVE PROFITABLE
QUARTER for this financial services company. The performance measures were
strong and the asset quality of the company remains solid.
Core diluted earnings per share were 45 cents for the quarter ended June 30,
2000 compared to 36 cents for the comparable period in 1999. These core earnings
exclude $105,000 net of tax merger related costs for the pending merger between
American River Holdings and North Coast Bank in Santa Rosa (NCTA.OB) which was
publicly announced March 1, 2000. This proposed merger is subject to regulatory
and shareholder approval. The shareholders' meetings are set for September 21,
2000.
Core earnings for the quarter were $833,000 up from the $715,000 recorded in the
second quarter of 1999. Net Income, after merger related costs, was $728,000 for
the quarter just ended. On a comparable diluted earnings per share basis, the
second quarter earnings were 39 cents versus 36 cents in the second quarter of
1999. The solid increase in earnings was the result of increases of $245,000 in
the net interest margin, and $130,000 in non-interest income to $498,000 for the
quarter. These increases in revenue were offset by a $157,000 increase in
non-interest expense excluding merger costs.
Total assets increased 20% to $208,805,000 from the $174,675,000 a year earlier.
This increase in assets was mainly due to a 21% increase in net loans
outstanding and a 13% increase in investment securities. The growth in assets
was funded primarily with an 18% increase in client deposits which reached
$182,762,000 on June 30, 2000. "This exceptional growth validates our long-held
philosophy of having talented people build relationships with great clients,"
said David Taber, president and CEO of American River Holdings.
Performance ratios for the quarter continued to improve including a Return on
Average Assets of 1.67%, a Return on Average Equity of 18.96% when measured on
core earnings and Return of Average Assets of 1.46%, and a Return of Average
Equity of 16.57% when measured on net income. The efficiency ratio improved as
well to 50.89% and 56.50% measured on core earnings and net income,
respectively.
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August 18, 2000
Page two
On June 30, 2000, the company owned no foreclosed property and non-performing
loans were just $21,000. The allowance for loan losses was $1,838,000, or 1.38%
of total loans outstanding.
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This news release contains forward-looking statements about American River
Holdings' and North Coast Bank's financial condition, results of operations,
plans, objectives and future performance. A number of factors, any of which are
beyond the control of American River Holdings or North Coast Bank could cause
actual results to differ materially from those in the forward-looking
statements.
American River Holdings has filed a registration statement with the Securities
and Exchange Commission to register the securities of American River Holdings to
be offered and issued to shareholders of North Coast Bank in the proposed
transaction. The registration statement was declared effective on August 10,
2000 and includes a proxy statement/prospectus that will be sent to the
shareholders of both companies, seeking their approval of the proposed
transaction. The registration statement and other documents concerning the
proposed transaction may also be obtained without charge at the Commission's
website at: http://www.sec.gov. Shareholders are urged to read the documents
filed with the Commission because they contain important information.
This news release does not constitute an offer to sell to, or a solicitation of
an offer to buy from anyone in any state or jurisdiction in which such an offer
of solicitation is not authorized. The securities described in this news release
have not been approved by the Securities and Exchange Commission or any state
securities authority nor has the Commission or any regulatory authority or any
state passed upon the accuracy or adequacy of this news release. Any
representation to the contrary is unlawful. No person other than the company has
been authorized to give any information or to make any representations other
than those contained in this news release in connection with the securities
described therein, and, if given or made, such other information or
representation must not be relied upon as having been made or authorized by the
company.
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<TABLE>
<CAPTION>
AMERICAN RIVER HOLDINGS
FINANCIAL SUMMARY
STATEMENT OF CONDITION JUNE 30 JUNE 30 PERCENT
(unaudited) 2000 1999 CHANGE
------------ ------------ ------
<S> <C> <C> <C>
ASSETS
CASH & DUE FROM BANKS $ 21,014,000 $ 17,253,000 21.80%
INVESTMENTS 49,337,000 43,505,000 13.41%
NET LOANS 131,515,000 108,634,000 21.06%
BANK PREMISES & FF&E 660,000 413,000 59.81%
AR SERVICING RECEIVABLE 2,705,000 1,527,000 77.14%
OTHER ASSETS 3,574,000 3,343,000 6.91%
------------ ------------ ------
TOTAL ASSETS $208,805,000 $174,675,000 19.54%
============ ============ ======
LIABILITIES
TOTAL DEPOSITS $182,762,000 $155,064,000 17.86%
SHORT & LONG-TERM BORROWINGS 6,405,000 2,145,000 198.60%
OTHER LIABILITIES 1,714,000 1,504,000 13.96%
------------ ------------ ------
TOTAL LIABILITIES 190,881,000 158,713,000 20.27%
TOTAL EQUITY CAPITAL 17,924,000 15,962,000 12.29%
------------ ------------ ------
TOTAL LIABILITIES & CAPITAL $208,805,000 $174,675,000 19.54%
============ ============ ======
STATEMENT OF INCOME SECOND SECOND FOR THE SIX MONTHS
(unaudited) QUARTER QUARTER ENDING JUNE 30
2000 1999 2000 1999
------------- ------------- ------------- -------------
TOTAL INTEREST INCOME $ 3,965,000 $ 3,306,000 $ 7,731,000 $ 6,588,000
TOTAL INTEREST EXPENSE 1,431,000 1,017,000 2,748,000 2,036,000
------------- ------------- ------------- -------------
NET INTEREST MARGIN 2,534,000 2,289,000 4,983,000 4,552,000
PROVISION FOR LOAN LOSSES 123,000 94,000 228,000 188,000
TOTAL OTHER INCOME 498,000 365,000 953,000 669,000
TOTAL OTHER EXPENSES 1,725,000 1,398,000 3,250,000 2,778,000
------------- ------------- ------------- -------------
PRETAX INCOME 1,184,000 1,162,000 2,458,000 2,255,000
INCOME TAXES 456,000 447,000 936,000 867,000
------------- ------------- ------------- -------------
NET INCOME $ 728,000 $ 715,000 $ 1,522,000 $ 1,388,000
MERGER EXPENSES, NET OF TAX $ 105,000 $0 $ 105,000 $0
------------- -- ------------- --
CORE EARNINGS $ 833,000 $ 715,000 $ 1,627,000 $ 1,388,000
============= ============= ============= =============
EARNINGS PER SHARE--BASIC $ 0.41 $ 0.39 $ 0.85 $ 0.76
EARNINGS PER SHARE--DILUTED $ 0.39 $ 0.36 $ 0.81 $ 0.71
CORE EARNINGS PER SHARE--BASIC $ 0.46 $ 0.39 $ 0.91 $ 0.76
CORE EARNINGS PER SHARE--DILUTED $ 0.45 $ 0.36 $ 0.87 $ 0.71
TRAILING 12-MONTH DILUTED EPS $ 1.60
TRAILING 12-MONTH CORE DILUTED EPS $ 1.66
AVERAGE SHARES OUTSTANDING 1,793,274 1,833,912 1,793,274 1,832,979
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OPERATING RATIOS (THROUGH JUNE 30):
-----------------------------------
RETURN ON AVERAGE ASSETS 1.54% 1.60%
RETURN ON AVERAGE ASSETS-CORE 1.65% 1.60%
RETURN ON AVERAGE EQUITY 17.87% 17.73%
RETURN ON AVERAGE EQUITY-CORE 19.10% 17.73%
EFFICIENCY RATIO 54.33% 52.82%
EFFICIENCY RATIO-CORE 51.47% 52.82%
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EARNINGS PER SHARE HAVE BEEN ADJUSTED FOR A 5% STOCK DIVIDEND IN OCTOBER 1999
AND A 3 FOR 2 STOCK SPLIT IN MAY OF 1999.
