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NEWS RELEASE
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FOR IMMEDIATE RELEASE MEDIA & INVESTOR CONTACTS:
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Kathy Pinkard, President & CEO
NORTH COAST BANK
(707) 528-6300
Debbie Fakalata, Chief Financial Officer
NORTH COAST BANK
(707) 528-6300
SANTA ROSA, CA - APRIL 17, 2000
NORTH COAST BANK ANNOUNCES RESULTS OF FIRST QUARTER 2000
North Coast Bank, (NCTA.OB) reported today a 137.5% increase in earnings per
share and a 19% growth in total assets for the First Quarter of 2000. Return on
average equity and return on average assets for this institution were 9.46% and
.80%, respectively. The asset quality of the company remained strong.
Earnings per share were 19 cents for the quarter ended March 31, 2000, up 137.5%
from the 08 cents reported in the same quarter one year earlier. Total net
income for the quarter was $96,000 up from the $37,000 posted one year earlier.
This was a result of a net increase in the Bank's loan portfolio of over
$9,000,000 thus increasing the net interest margin 31.65%. In addition, other
income increased 48% while total other expenses increased only 19%. The increase
in total other income was mainly attributable to increased revenue from service
charges associated with the growth in deposits. The increase in non-interest
expense included $23,000 increase in salaries and benefits for the company and
$19,000 in premises and fixed asset expenses associated with the new branch in
Santa Rosa.
Total assets increased $8 million to $49.5 million. This increase in the
company's balance sheet was centered in net loans growing by $9 million, while
investment securities decreased by $1.5 million. A $6.7 million increase in
deposits and $1 million in Federal Home Loan Bank borrowings funded the growth
in assets.
Performance ratios for the company were positive including a return on average
equity for the quarter of 9.46%, up from 3.89% in the same period last year. The
return on average assets for the quarter ended March 31, 2000, was .80% up from
the .37% recorded in the corresponding quarter in 1999.
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News Release - April 17, 2000
Page two
On March 31, 2000, there was no other real estate owned. The Bank had no loans
on non-accrual or any loans past due 60 days or more. The Allowance for Loan and
Lease Losses at March 31, 2000, was $434,000; or 1.09% of the total loans
outstanding, and charge-offs for the quarter were nil.
This solid quarterly performance announcement comes on the heels of a public
announcement made on March 1, 2000 whereby American River Holdings (AMRB.OB) and
North Coast Bank (NCTA.OB) announced a strategic merger. The merger agreement
calls for North Coast Bank shareholders to receive .9644 of a share of American
River Holdings common stock in a tax-free exchange for each North Coast Bank
common share that they own. North Coast Bank will continue to operate as North
Coast Bank in Sonoma County, joining American River Bank which serves Sacramento
and Placer Counties, and First Source Capital as affiliates of American River
Holdings, a diversified financial services company. North Coast Bank will
continue to be led by its existing Board of Directors with the addition of two
directors from American River Holdings. Two North Coast Bank directors will join
the Board of American River Holdings. The combined assets of these companies
were approximately $250 million at March 31, 2000. The transaction will be
accounted for as a pooling of interests and it is expected that this merger will
be accomplished in the third quarter of 2000, subject to shareholder and
regulatory approval.
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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 will file 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 will include 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, when filed with the
Commission, may also be obtained without charge at the Commission's website at:
http://www.sec.gov. Shareholders are urged to read the documents to be 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
or solicitation is not authorized. The securities described in this news release
have not been registered with or 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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<CAPTION>
NORTH COAST BANK FINANCIAL SUMMARY
(unaudited)
STATEMENT OF CONDITION MARCH 31 MARCH 31 PERCENT
2000 1999 CHANGE
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<S> <C> <C> <C>
ASSETS
CASH & DUE FROM BANKS $ 2,862,000 $ 2,280,000 25.53%
INVESTMENTS 5,746,000 7,235,000 -20.58%
NET LOANS 39,648,000 30,635,000 29.42%
BANK PREMISES & FF&E 730,000 764,000 -4.45%
OTHER ASSETS 559,000 632,000 -11.55%
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TOTAL ASSETS $49,545,000 $41,546,000 19.25%
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LIABILITIES
TOTAL DEPOSITS $44,345,000 $37,625,000 17.86%
SHORT & LONG-TERM BORROWINGS 1,000,000 -- N/A
OTHER LIABILITIES 106,000 96,000 10.42%
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TOTAL LIABILITIES 45,451,000 37,721,000 20.49%
TOTAL EQUITY CAPITAL 4,094,000 3,825,000 7.03%
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TOTAL LIABILITIES & CAPITAL $49,545,000 $41,546,000 19.25%
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OPERATING RATIOS (THROUGH MARCH 31):
RETURN ON AVERAGE ASSETS 0.80% 0.37%
RETURN ON AVERAGE EQUITY 9.46% 3.89%
EFFICIENCY RATIO 75.90% 84.97%
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STATEMENT OF INCOME FIRST FIRST
(unaudited) QUARTER QUARTER PERCENT
2000 1999 CHANGE
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<S> <C> <C> <C>
TOTAL INTEREST INCOME $ 1,057,000 $ 825,000 28.12%
TOTAL INTEREST EXPENSE 354,000 291,000 21.65%
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NET INTEREST MARGIN $ 703,000 $ 534,000 31.65%
PROVISION FOR LOAN LOSSES 28,000 30,000 -6.67%
TOTAL OTHER INCOME 86,000 58,000 48.28%
TOTAL OTHER EXPENSES 599,000 503,000 19.09%
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PRETAX INCOME $ 162,000 $ 59,000 174.58%
INCOME TAXES 66,000 22,000 200.00%
NET INCOME $ 96,000 $ 37,000 159.46%
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EARNINGS PER SHARE--BASIC $0.19 $0.08 137.50%
EARNINGS PER SHARE--DILUTED $0.19 $0.08 137.50%
TRAILING 12-MONTHS DILUTED EPS
AVERAGE SHARES OUTSTANDING-BASIC 472,354 472,354
AVERAGE SHARES OUTSTANDING-DILUTED 500,977 491,088
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EARNINGS PER SHARE HAVE BEEN ADJUSTED FOR A 5 for 4 STOCK SPLIT IN JUNE OF 1999
