American Riviera Bank Expands Market Share

American Riviera Bank (OTC Markets: ARBV) announced today unaudited net income of $365,000 ($0.14 per share) for the third quarter ended September 30, 2014, a decrease from the $473,000 ($0.19 per share) for the third quarter of 2013. For the nine months ending September 30, 2014, the Bank reported unaudited net income of $1,033,000 ($0.40 per share), down from the $1,203,000 ($0.47 per share) for the same reporting period last year. The decrease in net income is due to non-recurring events primarily related to prepayment penalties and gain on sale of loans which were $310,000 higher in the third quarter of 2013 and $350,000 higher for the first nine months of 2013 versus the same reporting periods in 2014.

The Bank has achieved exceptional growth in loans, reporting $162 million in total loans at September 30, 2014; which represents $27 million (20%) growth from the third quarter of 2013. Average total loan balances for the third quarter of 2014 were $159 million, 16% higher than the same reporting period last year. 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 9% compared to the same quarter last year and 9% compared to the first nine months of 2013.

Deposits have also experienced significant growth reaching $183 million in total at September 30, 2014, which represents a $41 million (28%) increase from September 30, 2013. Average non-interest bearing demand deposits were $49 million for the three months ending September 30, 2014, 29% higher than the same reporting period last year.

Jeff DeVine, President and Chief Executive Officer stated, “The Bank has made significant strides in growing its market share and is now the 3rd largest bank headquartered in Santa Barbara County. The driving force behind the growth is our ability to provide flexible loans and an unmatched level of service combined with innovative technology.”

American Riviera Bank maintains a strong capital position with Tier 1 Capital to total average assets of 12% as of September 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 $10.18 at September 30, 2014, an increase from $9.73 at September 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 June 30, 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.

American Riviera BankMichelle Martinich, 805-965-5942www.americanrivierabank.com