American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $382,000 ($0.15 per share) for the second quarter ended June 30, 2014, and $668,000 ($0.26 per share) for the six months ended June 30, 2014. The Bank’s focus on building relationships and addressing the lending and deposit needs of our community has also resulted in strong growth in assets. The Bank reached $217 million in total assets at June 30, 2014, which represents a 20% increase from June 30, 2013.

The Bank has achieved exceptional growth in loans; reporting $158 million in total loans at June 30, 2014, which represents 16% growth from the second quarter of 2013. In the second quarter of 2014, American Riviera Bank originated $20 million of new loan commitments locally with a net increase to outstanding loan balances of $10 million. Loan quality remains high with no other real estate owned and no loans past due 30 or more days. The aforementioned loan growth enabled the Bank to grow net interest income 12% compared to the same quarter last year and 9% compared to the first six months of 2013.

Jeff DeVine, President and Chief Executive Officer stated, “Local economic conditions have picked up and while supporting the banking needs of our clients the Bank was able to grow loan totals and expand our net interest income which is a core driver of future earnings.”

Deposits have also experienced significant growth reaching $180 million in total at June 30, 2014, which represents a 25% increase from the same reporting period last year. Non-interest bearing demand deposits reached $44 million at this quarter end, representing 11% growth from June 30, 2013.

American Riviera Bank maintains a strong capital position with Tier 1 Capital to total average assets of 12% as of June 30, 2014; well above the regulatory guideline of 5% for well capitalized institutions. The book value of one share of American Riviera Bank stock was $10.02 at June 30, 2014, an increase from $9.53 at June 30, 2013.

Company Profile

American Riviera Bank is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers in Santa Barbara and surrounding communities. The state-chartered bank opened for business on July 18, 2006, with the support of 400 local shareholders. Offices are located at 1033 Anacapa Street in Santa Barbara and 525 San Ysidro Road in Montecito. For 2013, the Bank was named a “Premier Performer” by the Findley Reports. As of March 31, 2014, the Bank was rated five stars by BauerFinancial.

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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