NasdaqGS:AMRB

Stock Analysis Report

American River Bankshares

Executive Summary

American River Bankshares operates as the holding company for American River Bank that provides commercial banking products and services to small and middle-market businesses, and individuals.

Rewards

PE ratio (16.9x) is below the US market (18.9x)

Earnings are forecast to grow 16.41% per year

Earnings grew by 51.3% over the past year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap ($87M)



Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Esquire Financial Holdings

NasdaqCM:ESQ

Share Price & News

How has American River Bankshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMRB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

AMRB

-0.2%

US Banks

0.6%

US Market


1 Year Return

11.9%

AMRB

15.3%

US Banks

24.6%

US Market

Return vs Industry: AMRB underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: AMRB underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

AMRBIndustryMarket
7 Day1.2%-0.2%0.6%
30 Day-0.7%-2.6%3.0%
90 Day1.3%5.6%10.6%
1 Year13.9%11.9%18.6%15.3%27.3%24.6%
3 Year2.7%-1.8%29.3%20.1%50.5%40.8%
5 Year58.6%51.8%89.1%67.9%78.9%59.1%

Price Volatility Vs. Market

How volatile is American River Bankshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American River Bankshares undervalued compared to its fair value and its price relative to the market?

17.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMRB ($14.77) is trading above our estimate of fair value ($14.71)

Significantly Below Fair Value: AMRB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMRB is poor value based on its PE Ratio (17x) compared to the Banks industry average (12.8x).

PE vs Market: AMRB is good value based on its PE Ratio (17x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AMRB is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: AMRB is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is American River Bankshares forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMRB's forecast earnings growth (16.4% per year) is above the savings rate (1.7%).

Earnings vs Market: AMRB's earnings (16.4% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: AMRB's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMRB's revenue (6.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: AMRB's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMRB's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has American River Bankshares performed over the past 5 years?

-2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMRB has high quality earnings.

Growing Profit Margin: AMRB's current net profit margins (21.6%) are higher than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: AMRB's earnings have declined by -2% per year over the past 5 years.

Accelerating Growth: AMRB's earnings growth over the past year (51.3%) exceeds its 5-year average (-2% per year).

Earnings vs Industry: AMRB earnings growth over the past year (51.3%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: AMRB's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American River Bankshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AMRB has a low level of unsold assets or inventory.

Debt Coverage by Assets: AMRB's debt is covered by short term assets (assets are 2.1x debt).


Financial Institutions Analysis

Asset Level: AMRB's level of assets compared to its equity is low.

Allowance for Bad Loans: AMRB has a sufficient allowance for bad loans.

Low Risk Liabilities: AMRB's liabilities are made up of primarily low risk sources of funding.

Loan Level: AMRB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AMRB's loans are broadly funded by customer deposits.

Level of Bad Loans: AMRB has an appropriate level of bad loans (0.01%)


Next Steps

Dividend

What is American River Bankshares's current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Upcoming Dividend Payment

Purchase American River Bankshares before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: AMRB's dividend (1.88%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: AMRB's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: AMRB's dividend payments have been volatile in the past 10 years.

Growing Dividend: AMRB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.1%), AMRB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMRB's dividends in 3 years are forecast to be well covered by earnings (24.7% payout ratio).


Next Steps

Management

What is the CEO of American River Bankshares's salary, the management and board of directors tenure and is there insider trading?

9.2yrs

Average management tenure


CEO

Dave Ritchie (61yo)

2.2yrs

Tenure

US$587,728

Compensation

Mr. David E. Ritchie, Jr. also known as Dave, has been the Chief Executive Officer and President at American River Bankshares and American River Bank since November 2017. Mr. Ritchie has more than 31 years ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD587.73K) is about average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: AMRB's management team is seasoned and experienced (9.2 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

61yo

Average Age

Experienced Board: AMRB's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: AMRB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$9,84712 Nov 19
Nicolas Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares675
Max PriceUS$14.59
SellUS$2,79006 Nov 19
Philip Wright
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares192
Max PriceUS$14.53
BuyUS$4,96729 Oct 19
Julie Raney
EntityIndividual
Role
Member of the Board of Directors
Director
Shares339
Max PriceUS$14.65
BuyUS$4,80408 May 19
Nicolas Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares375
Max PriceUS$12.81
BuyUS$14,24530 Apr 19
Daniel McGregor
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Credit Officer
Shares1,100
Max PriceUS$12.95
BuyUS$10,15126 Apr 19
William Robotham
EntityIndividual
Role
Vice Chairman
Independent Vice Chairman of the Board
Shares783
Max PriceUS$12.99
BuyUS$13,06222 Feb 19
William Robotham
EntityIndividual
Role
Vice Chairman
Independent Vice Chairman of the Board
Shares933
Max PriceUS$14.00
BuyUS$4,70613 Feb 19
Nicolas Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares325
Max PriceUS$14.48

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mitch Derenzo (58yo)

    Executive VP & CFO

    • Tenure: 25yrs
    • Compensation: US$404.63k
  • Kevin Bender (55yo)

    Executive VP & COO

    • Tenure: 10.3yrs
    • Compensation: US$399.62k
  • Diana Walery

    VP & Director of Communications

    • Tenure: 15.1yrs
  • Erica Fernandez

    SVP & Commercial Banking Mngr

    • Marie Crayne

      Senior VP & Credit Administrator

      • Tenure: 8yrs
    • Dan McGregor (59yo)

      Executive VP & Chief Credit Officer

      • Tenure: 1.7yrs
      • Compensation: US$253.36k
    • Erica Dias

      Vice President of Marketing & Community Engagement

      • Dave Ritchie (61yo)

        President

        • Tenure: 2.2yrs
        • Compensation: US$587.73k

      Board Members

      • Chet Fite (61yo)

        Independent Chairman of the Board

        • Tenure: 19yrs
        • Compensation: US$72.07k
      • Steve Waks (72yo)

        Director Emeritus

        • Compensation: US$56.44k
      • Michael Ziegler (74yo)

        Independent Director

        • Tenure: 18yrs
        • Compensation: US$65.50k
      • Phil Wright (72yo)

        Independent Director

        • Tenure: 10.8yrs
        • Compensation: US$53.09k
      • William Robotham (77yo)

        Independent Vice Chairman of the Board

        • Tenure: 6yrs
        • Compensation: US$54.12k
      • kim Box (59yo)

        Independent Director

        • Tenure: 7.5yrs
        • Compensation: US$56.87k
      • Jeff Owensby (61yo)

        Independent Director

        • Tenure: 3.1yrs
        • Compensation: US$48.37k
      • Dave Ritchie (61yo)

        President

        • Tenure: 2.2yrs
        • Compensation: US$587.73k
      • Nic Anderson (34yo)

        Independent Director

        • Tenure: 1.8yrs
        • Compensation: US$24.78k
      • Julie Raney

        Director

        • Tenure: 0.4yrs

      Company Information

      American River Bankshares's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: American River Bankshares
      • Ticker: AMRB
      • Exchange: NasdaqGS
      • Founded: 1983
      • Industry: Regional Banks
      • Sector: Banks
      • Market Cap: US$86.748m
      • Shares outstanding: 5.85m
      • Website: https://www.americanriverbank.com

      Number of Employees


      Location

      • American River Bankshares
      • 3100 Zinfandel Drive
      • Suite 450
      • Rancho Cordova
      • California
      • 95670
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      AMRBNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1990

      Biography

      American River Bankshares operates as the holding company for American River Bank that provides commercial banking products and services to small and middle-market businesses, and individuals. The company accepts checking and savings deposits; and offers money market deposit accounts and certificates of deposit. It also provides commercial, commercial real estate, multi-family real estate, commercial and residential real estate construction, residential real estate, agriculture, consumer, and other installment and term loans, as well as other customary banking services. In addition, the company conducts lease financing for various types of business equipment ranging from computer software to heavy earth-moving equipment. It operates four full-service banking offices in Sacramento County, one full-service banking office in Placer County, two full-service banking offices in Sonoma County, and three full-service banking offices in Amador County. The company was formerly known as American River Holdings and changed its name to American River Bankshares in 2004. American River Bankshares was founded in 1983 and is headquartered in Rancho Cordova, California. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/23 23:32
      End of Day Share Price2020/01/23 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.