American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $1,425,000 ($0.33 per share) for the second quarter ended June 30, 2016, compared to the $362,000 ($0.13 per share) reported June 30, 2015. Pre-tax, unaudited, operating income excluding merger related costs and income for the six months ended June 30, 2016 was $3,654,000 ($0.85 per share), which is 136% better on a share adjusted basis than the $966,000 ($0.36 per share) achieved for the same reporting period last year prior to the merger. As of June 30, 2016 total shares outstanding was 4,322,252 and market capitalization was $46.7 million.

As of June 30, 2016, the Bank reported $360 million in total loans with no other real estate owned. The Bank continues to have an impressive deposit mix with non-interest bearing demand deposits representing 35% of the $354 million in total deposits for the second quarter ending June 30, 2016. The Bank has seen strong account opening in 2016, opening 117 new accounts on average every month.

Jeff DeVine, President and Chief Executive Officer stated, "We are very pleased with our excellent second quarter as the Bank has seen increasing operational and financial synergies from the merger. This is highlighted by one of our best quarterly earnings per share and healthy account opening on a monthly basis. We are excited to continue building meaningful relationships and serve the banking needs of the greater Santa Barbara area."

As of June 30, 2016 American Riviera Bank has $428 million in total assets, and maintains a strong capital position with Tier 1 Capital Ratio of 11%; well above the regulatory guideline of 8% for well capitalized institutions. For the first six months of 2016, the Bank recorded a return on average assets of 0.80% and a return on average equity of 7.31% after non-recurring, merger related costs of $1.2 million and income of $577 thousand. Based on our initial estimate of merger fair value accounting which remains subject to revision, the tangible book value of American Riviera Bank's stock is $10.03 and the book value is $11.13 at June 30, 2016, an increase from the $10.40 book value at June 30, 2015.

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 the surrounding communities. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Offices are located at 1033 Anacapa Street in Santa Barbara, 525 San Ysidro Road in Montecito, and 5880 Calle Real in Goleta. As a result of the merger, American Riviera Bank became the second-largest community bank based in the city of Santa Barbara. For six consecutive years the Bank has been recognized for strong financial performance by the Findley Reports. As of March 31, 2016, 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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