American Riviera Bank (OTCBB: ARBV) reported a 21% increase in loans compared to one year ago, reporting $117 million in total loans outstanding at June 30, 2012.

Deposits have also grown significantly with a 37% increase in non-interest bearing checking accounts compared to one year ago. American Riviera Bank reported $125 million in total deposits with $27 million in non-interest bearing checking accounts at June 30, 2012, compared to $107 million and $19 million at June 30, 2011, respectively.

Jeff DeVine, President and Chief Executive Officer, stated, “In an environment where many banks have pulled back on lending or are reporting soft loan demand, our focus on relationships, outreach in the community, and flexible approach have resulted in consistent client growth. With ample capital and liquidity, the Bank looks forward to helping our clients grow along with us.”

American Riviera Bank reported unaudited pre-tax income of $386 thousand ($0.15 per share) for the second quarter ending June 30, 2012, which represents a 14% increase in profit from the $338 thousand ($0.13 per share) for the same period last year. For the six months ending June 30, 2012, American Riviera Bank reported unaudited pre-tax income of $661 thousand ($0.26 per share).

Due to effective deployment of deposits into loans, American Riviera Bank reported a net interest margin of 5.36% for the quarter ending June 30, 2012 increasing significantly from 4.55% one year ago.

American Riviera Bank continues to maintain a strong capital position with Tier 1 capital to total assets of 14% as of June 30, 2012, well above the regulatory guideline of 5% for well capitalized institutions. The tangible book value of one share of American Riviera Bank stock is $8.99 as of June 30, 2012.

Company Profile

American Riviera Bank is a full service community bank, focused on serving the lending and deposit needs of businesses and consumers in our community. The Bank was founded in 2006 by over 400 local shareholders and has one branch located at 1033 Anacapa Street in downtown Santa Barbara.

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.

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