American River Bankshares (AMRB, Financial) filed Quarterly Report for the period ended 2010-03-31.
American River Bankshares has a market cap of $83.8 million; its shares were traded at around $8.51 with a P/E ratio of 106.4 and P/S ratio of 2.6. AMRB is in the portfolios of Michael Price of MFP Investors LLC.
The Company s sources of liquidity consist of cash and due from correspondent banks, overnight funds sold to correspondent banks, unpledged marketable investments and loans held for sale and/or pledged for secured borrowings. At March 31, 2010, consolidated liquid assets totaled $96.4 million or 16.5% of total assets compared to $79.8 million or 13.4% of total assets on December 31, 2009. In addition to liquid assets, the Company maintains short-term lines of credit in the amount of $20,000,000 with two of its correspondent banks. At March 31, 2010, the Company had $20,000,000 available under these credit lines. Additionally, the Bank is a member of the FHLB. At March 31, 2010, the Bank could have arranged for up to $95,205,000 in secured borrowings from the FHLB. These borrowings are secured by pledged mortgage loans and investment securities. At March 31, 2010, the Company had advances, borrowings and commitments (including letters of credit) outstanding of $29,500,000, leaving $65,705,000 available under these FHLB secured borrowing arrangements. American River Bank also has a secured borrowing arrangement with the Federal Reserve Bank of San Francisco. The borrowing can be secured by pledging selected loans and investment securities. At March 31, 2010, the Company s borrowing capacity at the Federal Reserve Bank was $35,575,000. The Company serves primarily a business and professional customer base and, as such, its deposit base is susceptible to economic fluctuations. Accordingly, management strives to maintain a balanced position of liquid assets and borrowing capacity to offset the potential runoff of these volatile and/or cyclical deposits.
The Company s exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Company applies the same credit policies to commitments and letters of credit as it does for loans included on the consolidated balance sheet. As of March 31, 2010 and December 31, 2009, commitments to extend credit and standby letters of credit were the only financial instruments with off-balance sheet risk. The Company has not entered into any contracts for financial derivative instruments such as futures, swaps, options or similar instruments. Loan commitments and standby letters of credit were $74,288,000 and $78,015,000 at March 31, 2010 and December 31, 2009, respectively. As a percentage of net loans and leases these off-balance sheet items represent 20.5% and 20.7%, respectively.
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American River Bankshares has a market cap of $83.8 million; its shares were traded at around $8.51 with a P/E ratio of 106.4 and P/S ratio of 2.6. AMRB is in the portfolios of Michael Price of MFP Investors LLC.
Highlight of Business Operations:
Liquidity management refers to the Company s ability to provide funds on an ongoing basis to meet fluctuations in deposit levels as well as the credit needs and requirements of its clients. Both assets and liabilities contribute to the Company s liquidity position. Federal funds lines, short-term investments and securities, and loan and lease repayments contribute to liquidity, along with deposit increases, while loan and lease funding and deposit withdrawals decrease liquidity. The Company assesses the likelihood of projected funding requirements by reviewing historical funding patterns, current and forecasted economic conditions and individual client funding needs. Commitments to fund loans and outstanding standby letters of credit at March 31, 2010 were approximately $64,062,000 and $10,226,000, respectively. Such loan commitments relate primarily to revolving lines of credit and other commercial loans and to real estate construction loans. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.The Company s sources of liquidity consist of cash and due from correspondent banks, overnight funds sold to correspondent banks, unpledged marketable investments and loans held for sale and/or pledged for secured borrowings. At March 31, 2010, consolidated liquid assets totaled $96.4 million or 16.5% of total assets compared to $79.8 million or 13.4% of total assets on December 31, 2009. In addition to liquid assets, the Company maintains short-term lines of credit in the amount of $20,000,000 with two of its correspondent banks. At March 31, 2010, the Company had $20,000,000 available under these credit lines. Additionally, the Bank is a member of the FHLB. At March 31, 2010, the Bank could have arranged for up to $95,205,000 in secured borrowings from the FHLB. These borrowings are secured by pledged mortgage loans and investment securities. At March 31, 2010, the Company had advances, borrowings and commitments (including letters of credit) outstanding of $29,500,000, leaving $65,705,000 available under these FHLB secured borrowing arrangements. American River Bank also has a secured borrowing arrangement with the Federal Reserve Bank of San Francisco. The borrowing can be secured by pledging selected loans and investment securities. At March 31, 2010, the Company s borrowing capacity at the Federal Reserve Bank was $35,575,000. The Company serves primarily a business and professional customer base and, as such, its deposit base is susceptible to economic fluctuations. Accordingly, management strives to maintain a balanced position of liquid assets and borrowing capacity to offset the potential runoff of these volatile and/or cyclical deposits.
The Company s exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Company applies the same credit policies to commitments and letters of credit as it does for loans included on the consolidated balance sheet. As of March 31, 2010 and December 31, 2009, commitments to extend credit and standby letters of credit were the only financial instruments with off-balance sheet risk. The Company has not entered into any contracts for financial derivative instruments such as futures, swaps, options or similar instruments. Loan commitments and standby letters of credit were $74,288,000 and $78,015,000 at March 31, 2010 and December 31, 2009, respectively. As a percentage of net loans and leases these off-balance sheet items represent 20.5% and 20.7%, respectively.
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