American Riviera Bank (OTC Markets: ARBV) announced today unaudited pre-tax operating income of $763,000 for the second quarter ended June 30, 2015. This represents a 20% increase from the $635,000 generated during the same reporting period last year. Due to merger related costs of $160,000, the Bank reported unaudited net income of $362,000 ($0.13 per share) for the second quarter ended June 30, 2015. This compares to $382,000 for the same quarter last year.

For the six months ended June 30, 2015, the Bank reported unaudited net income of $804,000 ($0.30 per share), which includes $162,000 in merger related expenses. This represents a 20% increase from the $668,000 reported for the first six months ended June 30, 2014.

American Riviera Bank recently announced a merger with The Bank of Santa Barbara which is expected to close in the fourth quarter of 2015. The strategic merger will create one of the premier community banking franchises in Santa Barbara City and County.

Jeff DeVine, President and Chief Executive Officer stated, "We are very excited to merge these two outstanding community banks into one that is perfectly sized for Santa Barbara and the surrounding area. The merger will deliver convenience and value for our clients through increased lending capacity, a Goleta branch, a full service SBA lending department, and expanded depository products. Together we will realize important synergies, be better positioned to benefit from future growth opportunities, and generate enhanced financial performance for our shareholders."

American Riviera Bank has achieved strong growth in loans, reporting $171 million in total loans at June 30, 2015, which represents an 8% increase from the end of the second quarter of 2014. Loan quality remains high with no other real estate owned and no loans past due 30 days or more at quarter end. The aforementioned loan production enabled the Bank to grow net interest income 7% compared to the same quarter last year and 11% compared to the first six months of 2014. Deposits averaged $199 million for the second quarter ended June 30, 2015, which represents a significant 24% increase from the same reporting period last year.

American Riviera Bank maintains a strong capital position with Tier 1 Capital to total average assets of 12% as of June 30, 2015; well above the regulatory guideline of 5% for well capitalized institutions. The book value of one share of American Riviera Bank stock was $10.40 at June 30, 2015, an increase from $10.02 at June 30, 2014.

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 three consecutive years the Bank has been named a "Premier Performer" by the Findley Reports. As of March 31, 2015, 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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