American Riviera Bank was successful in its efforts to dispose of substantially all other real estate owned during the third quarter of 2012. At September 30, 2012, the ratio of non-performing assets to total assets declined to 0.47% from 2.85% at June 30, 2012. The Bank’s non-performing asset ratio is now significantly lower than the peer average of 3.44% representing California banks with assets between $100-500 million. American Riviera Bank has no loans past due more than 30 days, no non-accrual loans, and only $550 thousand of other real estate owned at September 30, 2012. The Bank did not need to add to the allowance for loan and lease loss in the third quarter, as the 1.90% allowance to total loans was considered adequate given improved credit quality.As of September 30, 2012, total assets were $162 million. The Bank continues to maintain a strong capital position with Tier 1 capital to total assets of 13%, well above the regulatory guideline of 5% for well capitalized institutions. The tangible book value of one share of American Riviera Bank common stock is now $9.18. 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 currently 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.