American Riviera Bancorp Announces Results for the Third Quarter of 2024

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SANTA BARBARA, Calif.–(BUSINESS WIRE)–#BankonBetter–American Riviera Bancorp (“Company”) (OTCQX: ARBV), holding company of American Riviera Bank (“Bank”), announced today unaudited net income of $6.7 million ($1.15 per share) for the nine months ended September 30, 2024, compared to $8.3 million ($1.44 per share) earned in the same reporting period in the previous year. Unaudited net income was $2.1 million ($0.36 per share) for the three months ended September 30, 2024, compared to $2.5 million ($0.42 per share) in the previous quarter, and $2.6 million ($0.46 per share) earned in the same reporting period in the previous year.

Jeff DeVine, President and CEO of the Company and the Bank stated, “Our strong relationship deposit growth from every branch this quarter has allowed the Bank to reduce non-core, wholesale funding. Our new branch in Atascadero has been well received by the community and has already reached $9.6 million in deposits since opening in June. Loan demand noticeably increased in the latter portion of this quarter which will allow us to further serve client needs, support the growth of our communities and enhance shareholder return.”

Third Quarter Highlights

The Bank has the highest “Super Premier” rating for financial performance from the Findley Reports and maintained a “5 Star – Superior” rating from Bauer Financial as of June 30, 2024.
The Bank was rated “Outstanding” by the Federal Deposit Insurance Corporation in 2023 for its performance under the Community Reinvestment Act.
Total shareholders’ equity of $112.1 million at September 30, 2024, has increased $6.7 million or 6.4% from the prior quarter-end, and $19.8 million or 21.4% from the same reporting period in the previous year.
Tangible book value per share of $18.37 at September 30, 2024, has increased $1.11 or 6.4% from the prior quarter-end, and $3.22 or 21.3% from the same reporting period in the previous year.
All Bank and Company capital ratios increased in the third quarter of 2024. The Bank’s regulatory capital ratios were all above “well-capitalized” standards. The Company’s tangible common equity ratio at September 30, 2024 was 8.31%, an increase from 6.92% at September 30, 2023.
Return on average assets for the third quarter ended September 30, 2024, was 0.65%, and return on average equity was 7.73%.
Total loans were $976.3 million at September 30, 2024, an increase of $12.6 million or 1.3% from the prior quarter-end, and an increase of $35.1 million or 3.7% from September 30, 2023. The Bank’s loan-to-deposit ratio at September 30, 2024, was 86.2%.
Total deposits were $1.13 billion at September 30, 2024, an increase of $64.8 million or 6.1% from the $1.07 billion at June 30, 2024, and an increase of $31.3 million or 2.8% from September 30, 2023.
Non-interest-bearing demand deposits were $466.5 million at September 30, 2024, an increase of $41.5 million or 9.8% from the prior quarter-end. Non-interest-bearing demand deposits represent 41.2% of total deposits, and total demand deposits represent 51.5% of total deposits, respectively, at September 30, 2024.
As a result of increased core deposits, borrowed funds were $36.5 million at September 30, 2024, a reduction of $50.0 million or 57.8% from the amount carried at the prior quarter-end.
As a result of decreased use of non-core, wholesale funds, total cost of funds decreased to 1.66% for the third quarter of 2024, compared to 1.70% in the prior quarter, yet remain higher than the 1.06% for the same quarter in the prior year. Overall funding costs for the Company have increased from prior year due to Federal Reserve policy but remain modest compared to industry averages based on our relationship banking focus and high percentage of demand deposits.
On-balance sheet liquidity continues to be substantial with $228.7 million of cash, due from banks, and available-for-sale (“AFS”) securities market value at September 30, 2024.
Access to available sources of liquidity including fed funds lines of credit with correspondent banks, unused secured borrowing capacity with the Federal Home Loan Bank (“FHLB”), and unused secured borrowing capacity with the Federal Reserve totaled $450.6 million at September 30, 2024.
Allowance for Credit Losses (“ACL”) was 1.20% of total loans at September 30, 2024, slightly decreased from 1.21% at June 30, 2024, and 1.24% at September 30, 2023.
The Bank’s commercial real estate (“CRE”) portfolio is diverse, with only $83.4 million in the non-owner-occupied office category. Credit underwriting is strong with weighted average loan-to-values of 31% to 53% and weighted average debt coverage ratios between 1.86 and 3.16 depending on the individual CRE category.
The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $0.5 million or 0.05% of total loans on non-accrual status, which are well supported by collateral or reserves.

Third Quarter Earnings

For the third quarter of 2024, unaudited net income was $2.1 million, stable from the $2.1 million in the second quarter of 2024 (adjusted for the $0.5 million non-recurring gain on early redemption of a subordinated note), and less than the $2.7 million in the third quarter of 2023. The decrease in earnings compared to the third quarter of the previous year is primarily attributable 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 $12.1 million in the third quarter of 2023 to $13.4 million in the third quarter of 2024, representing a $1.3 million or 10.4% increase. However, the cost of funding has also increased sequentially due to the Federal Reserve’s higher-rate policy. Total interest expense has increased from $3.1 million in the third quarter of 2023 to $4.8 million in the third quarter of 2024, a $1.7 million or 54.9% increase.

Non-Interest Income and Expense

Total non-interest income was $0.9 million for the third quarter of 2024, compared to $1.5 million for the prior quarter including the $0.5 million non-recurring gain on subordinated note redemption, and $0.7 million for the same quarter last year. Total non-interest income for the quarter has grown 27% over the same quarter of the prior year and has increased 49% year-to-date compared to September 30, 2023. Variances between the quarters relate primarily to SBA loan sale premiums, mortgage broker fees, loan interest rate swap fees, and loan prepayment fees.

Non-interest expense was $8.4 million for the third quarter of 2024, a slight increase from the $8.1 million reported for the prior quarter, and more than the $7.9 million reported for the same quarter of the prior year. Non-recurring expenses related to counterfeit check fraud losses were $0.2 million higher in the third quarter of 2024 compared to the prior quarter. Cost savings generated from our core and online banking vendor contract have allowed for targeted personnel increases in deposit generating roles including staffing and occupancy for our recently opened branch in Atascadero.

Loans and Asset Quality

Total loans were $976.3 million at September 30, 2024, an increase of $12.6 million or 1.3% from the prior quarter-end, and an increase of $35.1 million or 3.7% from September 30, 2023.

The Bank’s ACL was $11.7 million at September 30, 2024, with a resulting coverage ratio of 1.20%, as compared to $11.6 million or 1.24% at September 30, 2023. As of September 30, 2024, non-accrual loans totaled $0.5 million, a slight decrease from the previous quarter-end, and a reduction of $2.2 million from September 30, 2023. Credit quality remains strong.

Deposits & Borrowings

Total deposits were $1.13 billion at September 30, 2024, representing a $64.8 million or 6.1% increase from June 30, 2024, and an increase of $31.3 million or 2.8% since September 30, 2023.

Non-interest-bearing demand deposits totaled $466.5 million at September 30, 2024, an increase of $41.5 million or 9.8% from the prior quarter-end, and an increase of $8.8 million or 1.9% from September 30, 2023. Non-interest-bearing demand deposits represent 41.2% of total deposits at September 30, 2024, compared to 39.8% at the prior quarter-end, and 41.6% at September 30, 2023.

Interest-bearing demand deposits totaled $116.6 million at September 30, 2024, an increase of $6.3 million or 5.7% from the prior quarter-end, and a decrease of $12.9 million or 9.9% from September 30, 2023. Demand deposits represent 51.5% of total deposits at September 30, 2024, an increase from 50.1% at the prior quarter-end, and decrease from 53.3% at September 30, 2023.

Other interest-bearing deposits totaled $549.6 million at September 30, 2024, an increase of $16.9 million or 3.2% from the prior quarter-end, and an increase of $35.3 million or 6.9% from September 30, 2023.

The weighted average cost of deposits for the third quarter of 2024 was 1.52%, compared to 1.35% for the previous quarter, and 0.90% for the same quarter last year. The increase in the cost of deposits this quarter is related to higher rates on time deposits for local depositors.

As a result of increased core deposits, the Bank was able to reduce more expensive wholesale-funded certificates of deposit by $11.8 million from the prior quarter. Additionally, the Bank decreased its FHLB advances to $10.0 million at September 30, 2024, from $60.0 million at June 30, 2024. At September 30, 2024, the Bank had a single $10.0 million long-term FHLB advance outstanding with a rate of 4.00%, $10.0 million drawn on a correspondent bank line of credit at a rate of 3.85%, and $16.5 million of subordinated notes outstanding at a rate of 3.75%. The weighted average cost on all borrowings for the quarter was 4.50%, resulting in $0.6 million in interest expense. The $36.5 million of borrowed funds at September 30, 2024, represents a $50.0 million or 57.8% decrease from the level carried at the prior quarter-end.

As a result of the increased core deposits and decreased use of non-core wholesale funding, the Company was able to reduce the overall cost of funds to 1.66% for the third quarter of 2024, compared to 1.70% for the previous quarter. Additionally, the Company’s net interest margin increased to 3.33% for the third quarter of 2024, compared to 3.24% for the prior quarter.

The Bank’s liquidity position remained strong with a primary liquidity ratio (cash and cash equivalents, deposits held in other banks and unpledged AFS securities as a percentage of total assets) of 15.8% at September 30, 2024, compared to 15.3% at June 30, 2024.

As of September 30, 2024, the Bank had available and unused, secured borrowing capacity with the FHLB of San Francisco of $266.5 million, and had available and unused, secured borrowing capacity with the Federal Reserve of $41.2 million. In addition, the Bank had $142.9 million of unused fed funds lines of credit with correspondent banks at September 30, 2024. Available contingent funding sources of $450.6 million remain robust.

Overall uninsured deposits, excluding public agency deposits that are collateralized, are conservatively estimated to be $423.4 million, or 37.4% of total deposit balances as of September 30, 2024. The actual level of uninsured deposits is lower than the percentage stated above, as our knowledgeable bankers have helped clients obtain more than $250,000 of FDIC insurance with vesting structures such as joint accounts, payable upon death accounts, and revocable trust accounts with multiple beneficiaries. In addition, the Bank can offer up to $50 million of FDIC pass-through insurance to clients via the IntraFi network Insured Cash Sweep (“ICS”) or Certificate of Deposit Account Registry System (“CDARS”) products.

Shareholders’ Equity

Total shareholders’ equity was $112.1 million at September 30, 2024, a $6.7 million or 6.4% increase since June 30, 2024, and an increase of $19.8 million or 21.4% over the same period of the prior year. The tax adjusted unrealized loss on securities, which is a component of equity (accumulated other comprehensive income or “AOCI”), improved $4.3 million or 20.6% from $20.9 million at June 30, 2024, to $16.6 million at the end of the third quarter of 2024. The Bank fully expects to receive all principal when the investments mature. As of September 30, 2024, the Company has not repurchased any shares under the previously announced share repurchase program.

Company Profile

American Riviera Bancorp (OTCQX: ARBV) is a registered bank holding company headquartered in Santa Barbara, California. American Riviera Bank, the 100% owned subsidiary of American Riviera Bancorp, is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers on the Central Coast of California. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Full-service branches are located in Santa Barbara, Montecito, Goleta, Santa Maria, San Luis Obispo, Atascadero, and Paso Robles. The Bank provides commercial business, commercial real estate, residential mortgage, construction, and Small Business Administration lending services as well as convenient online and mobile technology. For thirteen consecutive years, the Bank has been recognized for strong financial performance by the Findley Reports and has received the highest “Super Premier” rating from Findley every year since 2016. The Bank was rated “Outstanding” by the Federal Deposit Insurance Corporation in 2023 for its performance under the Community Reinvestment Act.

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, effects of interest rate changes, ability to control costs and expenses, impact of consolidation in the banking industry, financial policies of the US government, and general economic conditions.

American Riviera Bancorp and Subsidiaries
Balance Sheets (unaudited)
(dollars in thousands)
	September 30,			September 30,			One Year			One Year
	2024			2023			$ Change			% Change
Assets
Cash & Due From Banks	$	40,549		$	26,905		$	13,644		51	%
Available-for-sale securities		188,173			206,842			(18,669	)	-9	%
Held-to-maturity securities, net		41,377			41,309			68		0	%

Loans		976,257			941,124			35,133		4	%
Allowance For Credit Losses		(11,694	)		(11,647	)		(47	)	0	%
Net Loans		964,563			929,477			35,086		4	%

Premise & Equipment		8,477			9,452			(975	)	-10	%
Operating Lease Right-of-Use Asset		5,153			5,234			(81	)	-2	%
Bank Owned Life Insurance		12,027			11,613			414		4	%
Stock in Other Banks		6,786			6,699			87		1	%
Goodwill and Other Intangibles		4,939			4,934			5		0	%
Other Assets		22,716			26,341			(3,625	)	-14	%
Total Assets	$	1,294,758		$	1,268,806		$	25,952		2	%


Liabilities & Shareholders’ Equity
Non-interest-bearing Demand Deposits	$	466,537		$	457,723		$	8,814		2	%
Interest-bearing Demand Deposits		116,624			129,484			(12,860	)	-10	%
Other Interest-bearing Deposits		549,601			514,266			35,335		7	%
Total Deposits		1,132,762			1,101,473			31,289		3	%

Borrowed Funds		36,500			63,000			(26,500	)	-42	%
Other Liabilities		13,372			11,976			1,396		12	%
Total Liabilities		1,182,634			1,176,449			6,185		1	%

Common Stock		67,841			67,108			733		1	%
Retained Earnings		60,901			51,972			8,929		17	%
Other Capital		(16,617	)		(26,723	)		10,106		-38	%
Total Shareholders’ Equity		112,125			92,357			19,768		21	%

Total Liabilities & Shareholders’ Equity	$	1,294,758		$	1,268,806		$	25,952		2	%

American Riviera Bancorp and Subsidiaries
Balance Sheets (unaudited)
(dollars in thousands)
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
Assets
Cash & Due From Banks	$	40,549		$	28,557		$	33,029		$	19,683		$	26,905
Available-for-sale securities		188,173			189,514			200,905			207,271			206,842
Held-to-maturity securities		41,377			41,360			41,343			41,326			41,309

Loans		976,257			963,701			950,820			946,411			941,124
Allowance for Credit Losses		(11,694	)		(11,694	)		(11,648	)		(11,648	)		(11,647	)
Net Loans		964,563			952,008			939,172			934,763			929,477

Premise & Equipment		8,477			8,527			8,529			8,801			9,452
Operating Lease Right-of-Use Asset		5,153			4,636			4,931			5,193			5,234
Bank Owned Life Insurance		12,027			11,930			11,839			11,738			11,613
Stock in Other Banks		6,786			6,786			6,699			6,699			6,699
Goodwill and Other Intangibles		4,939			4,956			4,955			4,930			4,934
Other Assets		22,716			24,932			24,828			24,632			26,341
Total Assets	$	1,294,758		$	1,273,206		$	1,276,230		$	1,265,036		$	1,268,806


Liabilities & Shareholders’ Equity
Non-interest-bearing Demand Deposits	$	466,537		$	424,991		$	415,648		$	443,070		$	457,723
Interest-bearing Demand Deposits		116,624			110,323			134,532			123,686			129,484
Other Interest-bearing Deposits		549,601			532,656			499,236			482,926			514,266
Total Deposits		1,132,762			1,067,970			1,049,416			1,049,682			1,101,473

Borrowed Funds		36,500			86,500			113,000			103,000			63,000
Other Liabilities		13,372			13,342			12,120			11,715			11,976
Total Liabilities		1,182,634			1,167,812			1,174,535			1,164,397			1,176,449

Common Stock		67,841			67,509			67,198			67,388			67,108
Retained Earnings		60,901			58,812			56,357			54,177			51,972
Other Capital		(16,617	)		(20,927	)		(21,860	)		(20,926	)		(26,723	)
Total Shareholders’ Equity		112,125			105,394			101,695			100,639			92,357

Total Liabilities & Shareholders’ Equity	$	1,294,758		$	1,273,206		$	1,276,230		$	1,265,036		$	1,268,806

American Riviera Bancorp and Subsidiaries
Statement of Income (unaudited)
(dollars in thousands, except per share data)
	Quarter Ended								Nine Months Ended
	September 30,			September 30,					September 30,			September 30,
	2024			2023			Change		2024			2023			Change
Interest Income
Interest and Fees on Loans	$	13,395		$	12,134		10	%	$	39,110		$	35,130		11	%
Interest on Securities		1,577			1,664		-5	%		4,884			5,189		-6	%
Interest on Due From Banks		305			221		38	%		748			761		-2	%
Total Interest Income		15,277			14,019		9	%		44,742			41,080		9	%

Interest Expense
Interest Expense on Deposits		4,225			2,514		68	%		10,565			5,753		84	%
Interest Expense on Borrowings		624			618		1	%		3,532			2,044		73	%
Total Interest Expense		4,849			3,131		55	%		14,097			7,797		81	%

Net Interest Income		10,428			10,888		-4	%		30,645			33,283		-8	%
Provision for Credit Losses		(0	)		9		-101	%		111			171		-35	%
Net Interest Income After Provision		10,428			10,879		-4	%		30,534			33,112		-8	%

Non-Interest Income
Service Charges, Commissions and Fees		606			467		30	%		1,857			1,694		10	%
Other Non-Interest Income		272			225		21	%		1,438			514		180	%
Total Non-Interest Income		878			692		27	%		3,295			2,208		49	%

Non-Interest Expense
Salaries and Employee Benefits		4,965			4,599		8	%		15,292			14,128		8	%
Occupancy and Equipment		978			862		14	%		2,744			2,635		4	%
Other Non-Interest Expense		2,429			2,450		-1	%		6,496			7,095		-8	%
Total Non-Interest Expense		8,372			7,911		6	%		24,532			23,858		3	%

Net Income Before Provision for Taxes		2,934			3,660		-20	%		9,297			11,462		-19	%
Provision for Taxes		845			1,011		-16	%		2,572			3,154		-18	%
Net Income	$	2,089		$	2,649		-21	%	$	6,724		$	8,308		-19	%

Shares Outstanding		5,833,825			5,771,679		1	%		5,833,825			5,771,679		1	%
Earnings Per Share – Basic	$	0.36		$	0.46		-22	%	$	1.15		$	1.44		-20	%
Return on Average Assets		0.65	%		0.80	%	-19	%		0.70	%		0.88	%	-20	%
Return on Average Equity		7.73	%		10.98	%	-30	%		8.64	%		12.31	%	-30	%
Net Interest Margin		3.33	%		3.47	%	-4	%		3.29	%		3.58	%	-8	%

American Riviera Bancorp and Subsidiaries
Five Quarter Statements of Income (unaudited)
(dollars in thousands, except per share data)
	Three Months Ended
	September 30,			June 30,		March 31,		December 31,			September 30,
	2024			2024		2024		2023			2023
Interest Income
Interest and Fees on Loans	$	13,395		$	13,043	$	12,672	$	12,557		$	12,134
Interest on Securities		1,577			1,595		1,712		1,751			1,664
Interest on Due From Banks		305			291		153		293			221
Total Interest Income		15,277			14,928		14,537		14,601			14,019

Interest Expense
Interest Expense on Deposits		4,225			3,534		2,806		2,735			2,514
Interest Expense on Borrowings		624			1,370		1,538		863			618
Total Interest Expense		4,849			4,903		4,344		3,598			3,131

Net Interest Income		10,428			10,025		10,192		11,003			10,888
Provision for Credit Losses		(0	)		78		33		(84	)		9
Net Interest Income After Provision		10,428			9,947		10,159		11,087			10,879

Non-Interest Income
Service Charges, Commissions and Fees		606			731		520		525			467
Other Non-Interest Income		272			805		361		(257	)		225
Total Non-Interest Income		878			1,536		881		268			692

Non-Interest Expense
Salaries and Employee Benefits		4,965			5,104		5,223		4,838			4,599
Occupancy and Equipment		978			893		873		907			862
Other Non-Interest Expense		2,429			2,096		1,971		2,569			2,450
Total Non-Interest Expense		8,372			8,094		8,067		8,314			7,911

Net Income Before Provision for Taxes		2,935			3,389		2,973		3,041			3,660
Provision for Taxes		845			934		793		838			1,011
Net Income	$	2,089		$	2,455	$	2,180	$	2,203		$	2,649

Shares Outstanding		5,833,825			5,819,759		5,820,150		5,768,697			5,771,679
Earnings Per Share – Basic	$	0.36		$	0.42	$	0.37	$	0.38		$	0.46

Net Income pre-tax, pre-provision (Non-GAAP)	$	2,935		$	3,434	$	2,972	$	3,039		$	3,668

American Riviera Bancorp and Subsidiaries
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)
		At or for the Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Income and performance ratios:
	Net Income	$	2,089		$	2,455		$	2,180		$	2,203		$	2,649
	Earnings per share – basic		0.36			0.42			0.37			0.38			0.46
	Return on average assets		0.65	%		0.77	%		0.69	%		0.69	%		0.80	%
	Return on average equity		7.73	%		9.57	%		8.65	%		9.36	%		10.98	%
	Loan yield		5.52	%		5.48	%		5.37	%		5.26	%		5.03	%
	Cost of funds		1.66	%		1.70	%		1.51	%		1.23	%		1.06	%
	Cost of deposits		1.52	%		1.35	%		1.09	%		1.00	%		0.90	%
	Net interest margin		3.33	%		3.24	%		3.34	%		3.61	%		3.47	%
	Efficiency ratio ^(b)		74.06	%		70.30	%		74.33	%		73.01	%		68.79	%

Balance Sheet ratios:
	Loan-to-deposit ratio		86.18	%		90.24	%		90.60	%		90.16	%		85.44	%
	Non-interest-bearing deposits / total deposits		41.19	%		39.79	%		39.61	%		42.21	%		41.56	%
	Demand deposits / total deposits		51.48	%		50.12	%		52.43	%		53.99	%		53.31	%

Asset quality:
	Allowance for credit losses	$	11,694		$	11,694		$	11,648		$	11,648		$	11,647
	Nonperforming assets		521			614			631			595			2,708
	Allowance for credit losses / total loans and leases		1.20	%		1.21	%		1.23	%		1.23	%		1.24	%
	Net charge-offs / average loans and leases (annualized)		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
	Texas ratio ^(a)		0.54	%		0.69	%		0.74	%		0.71	%		2.73	%

Capital ratios for American Riviera Bank ^(c):
	Tier 1 risk-based capital		12.93	%		12.85	%		12.76	%		12.62	%		12.14	%
	Total risk-based capital		14.05	%		13.99	%		13.90	%		13.77	%		13.28	%
	Tier 1 leverage ratio		11.15	%		11.00	%		10.82	%		10.62	%		10.12	%

Capital ratios for American Riviera Bancorp^(c):
	Tier 1 risk-based capital		11.24	%		11.17	%		11.07	%		10.94	%		10.52	%
	Total risk-based capital		13.80	%		13.77	%		13.84	%		13.72	%		13.31	%
	Tier 1 leverage ratio		9.70	%		9.56	%		9.39	%		9.21	%		8.77	%
	Tangible common equity ratio		8.31	%		7.92	%		7.61	%		7.60	%		6.92	%

Equity and share related:
	Common equity	$	112,125		$	105,394		$	101,695		$	100,639		$	92,357
	Book value per share		19.22			18.11			17.47			17.45			16.00
	Tangible book value per share		18.37			17.26			16.62			16.59			15.15
	Tangible book value per share, excluding AOCI ^(d)		21.22			20.85			20.38			20.22			19.78
	Stock closing price per share		19.40			16.60			15.96			16.50			16.15
	Number of shares issued and outstanding		5,833.83			5,819.76			5,820.15			5,768.70			5,771.68

Notes:
	(a) The sum of Nonperforming assets and Other Real Estate Owned, divided by the sum of Total Shareholder Equity and Total Allowance for Credit Losses (less Preferred Stock and Intangible Assets).
	(b) Annualized Operating Expense excluding Provision for Credit Losses minus Annualized Extraordinary Expense, divided by Annualized Interest Income including Loan Fees minus Annualized Interest Expense plus Annualized Non-Interest Income minus Annualized Extraordinary Income, expressed as a percentage.
	(c) Current period capital ratios are preliminary.
	(d) Accumulated Other Comprehensive Income (AOCI), is comprised of the tax adjusted unrealized loss on securities and is presented as Other Capital on the Balance Sheet.