EXHIBIT 99.1
SACRAMENTO, CA - OCTOBER 20, 2000
AMERICAN RIVER HOLDINGS REPORTS CORE EPS UP 27%
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American River Holdings (AMRB.OB) parent company of American River Bank and
FIRST SOURCE CAPITAL, reported an increase in core earnings per share for the
third quarter of 27%, net loans outstanding up by 21% and total assets up by
12%. These figures are all compared to the third quarter of 1999. This is THE
67TH CONSECUTIVE PROFITABLE QUARTER for the company.
Core diluted EPS for the quarter ending September 30, 2000 was $0.47 or 27%
higher than the $0.37 posted in the quarter ending September 30, 1999. Core
earnings exclude merger-related expenses for the pending merger with North Coast
Bank announced earlier this year. This solid increase in earnings is the result
of a 15% increase in the net interest margin which can be attributed mainly to
the increase in loans outstanding. Another key contributing factor to the core
EPS surge is a 20% increase in non-interest income which includes fees for the
accounts receivable purchased during the quarter, for non-insured investment
sales, for merchant bankcard, and for servicing state contracts.
Net income during the quarter, after deducting $83,000 net of tax in merger
expenses, was $792,000 or $0.42 diluted EPS compared to $0.37 recorded in the
third quarter of 1999, representing an increase of 13%.
"When comparing our year-to-date numbers, core diluted EPS was $1.33 versus
$1.08 last year. Core earnings were $2,502,000 compared to $2,095,000 for the
nine months of 1999. This is an increase of 19%. We are very pleased with the
growth and performance for the quarter and on a year-to-date basis," stated
David T. Taber, President and CEO.
On September 30, 2000, total assets were $210.5 million compared to $187.8
million on September 30, 1999 representing an increase of 12%. Net loans
outstanding were $132.7 million, up 21% from the $109.5 million outstanding on
September 30, 1999. This increase in loans includes increases in commercial and
real estate loans outstanding. Accounts receivable servicing outstanding
increased by 56% to $2.9 million. This solid increase in assets was funded by a
12% increase in deposits and a 17% increase in equity. Asset quality remains
strong. At September 30, 2000, non-performing loans totaled $24,000 which was
two-tenths of 1% of total loans and leases outstanding. Charge-offs for the
quarter were less than $1,500 and the allowance for loan and lease losses grew
to 1.45% of total loans and leases outstanding which is 8,000 times greater than
non-performing loans and leases at September 30, 2000.
Performance ratios for this third quarter were also good. Return on average
shareholders equity excluding merger-related expenses was 18.9%, up from 17.5%
the previous year. When you include merger expenses the return on average equity
was 17.1%. Return on average assets excluding merger expenses was 1.67% up from
1.53% for the same quarter last year. Including merger expenses, return on
average assets was 1.51%. The efficiency ratio, which measures the net income
plus non-interest income on a fully-taxable equivalent, in relation to
non-interest expense, excluding merger expenses, was 50.17% as compared to
53.67% for the same quarter last year, and including merger expenses, it was
54.09%.
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<PAGE>
3Q Press Release
October 20, 2000
Page two
American River Holdings is a financial services company with two subsidiaries,
American River Bank, a community business bank with four offices in Sacramento
and Placer Counties, and FIRST SOURCE CAPITAL, also headquartered in Sacramento,
which provides equipment lease financing for businesses throughout the country.
Related websites: www.amrb.com, www.americanriverbank.net,
www.firstsourcecapital.com
Unaudited financial statements attached.
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THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS ABOUT AMERICAN
RIVER HOLDINGS' AND SUBSIDIARIES' 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 ITS SUBSIDIARIES COULD CAUSE
ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING
STATEMENTS.
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<PAGE>
<TABLE>
<CAPTION>
AMERICAN RIVER HOLDINGS
Financial Summary
STATEMENT OF CONDITION SEPTEMBER 30 SEPTEMBER 30 PERCENT
(UNAUDITED) 2000 1999 CHANGE
-----------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
CASH & DUE FROM BANKS $ 17,759,000 $ 17,245,000 2.98%
INVESTMENTS 52,659,000 56,053,000 -6.05%
NET LOANS 132,678,000 109,517,000 21.15%
BANK PREMISES & FF&E 628,000 391,000 60.61%
AR SERVICING RECEIVABLE 2,908,000 1,870,000 55.51%
OTHER ASSETS 3,834,000 2,704,000 41.79%
------------ ------------ ------
TOTAL ASSETS $210,466,000 $187,780,000 12.08%
============ ============ ======
LIABILITIES
TOTAL DEPOSITS $188,189,000 $168,261,000 11.84%
SHORT & LONG-TERM BORROWINGS 2,094,000 2,135,000 -1.92%
OTHER LIABILITIES 1,313,000 1,224,000 7.27%
------------ ------------ ------
TOTAL LIABILITIES 191,596,000 171,620,000 11.64%
TOTAL EQUITY CAPITAL 18,870,000 16,160,000 16.77%
------------ ------------ ------
TOTAL LIABILITIES & CAPITAL $210,466,000 $187,780,000 12.08%
============ ============ ======
STATEMENT OF INCOME THIRD THIRD FOR THE NINE MONTHS
(UNAUDITED) QUARTER QUARTER ENDING SEPTEMBER 30
2000 1999 2000 1999
----------------------------------------------------------------
<S> <C> <C> <C> <C>
TOTAL INTEREST INCOME $ 4,235,000 $ 3,384,000 $11,966,000 $ 9,972,000
TOTAL INTEREST EXPENSE 1,583,000 1,081,000 4,331,000 3,117,000
------------- ----------- ----------- -----------
NET INTEREST MARGIN 2,652,000 2,303,000 7,635,000 6,855,000
PROVISION FOR LOAN LOSSES 121,000 109,000 349,000 297,000
NON-INTEREST INCOME 475,000 394,000 1,428,000 1,063,000
NON-INTEREST EXPENSE 1,712,000 1,464,000 4,962,000 4,242,000
------------- ----------- ----------- -----------
PRETAX INCOME 1,294,000 1,124,000 3,752,000 3,379,000
INCOME TAXES 502,000 417,000 1,438,000 1,284,000
------------- ----------- ----------- -----------
NET INCOME $ 792,000 $ 707,000 $ 2,314,000 $ 2,095,000
MERGER EXPENSE, NET OF TAX $ 83,000 $ 0 $ 188,000 $ 0
------------- ----------- ----------- -----------
CORE EARNINGS $ 875,000 $ 707,000 $ 2,502,000 $ 2,095,000
============= =========== =========== ===========
EARNINGS PER SHARE--BASIC $ 0.44 $ 0.39 $ 1.29 $ 1.15
EARNINGS PER SHARE--DILUTED $ 0.42 $ 0.37 $ 1.23 $ 1.08
CORE EARNINGS PER SHARE--BASIC $ 0.49 $ 0.39 $ 1.40 $ 1.15
CORE EARNINGS PER SHARE--DILUTED $ 0.47 $ 0.37 $ 1.33 $ 1.08
TRAILING 12-MONTH DILUTED EPS $ 1.66
TRAILING 12-MONTH CORE DILUTED EPS $ 1.76
AVERAGE SHARES OUTSTANDING 1,793,274 1,813,036 1,793,274 1,824,341
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OPERATING RATIOS
----------------
RETURN ON AVERAGE ASSETS 1.51% 1.53% 1.53% 1.57%
RETURN ON AVERAGE ASSETS--CORE 1.67% 1.53% 1.65% 1.57%
RETURN ON AVERAGE EQUITY 17.11% 17.53% 17.53% 17.67%
RETURN ON AVERAGE EQUITY--CORE 18.90% 17.53% 18.96% 17.67%
EFFICIENCY RATIO (FULLY TAXABLE EQUIVALENT) 54.09% 53.67% 54.07% 53.05%
EFFICIENCY RATIO (FULLY TAXABLE EQUIVALENT--CORE) 50.17% 53.67% 50.84% 53.05%
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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 1999.
</TABLE>
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