American Riviera Bank Reports Third Quarter Profit

  
    
  
  
    
      American Riviera Bank (OTCBB:ARBV) today announced its first quarterly 
      profit and considerable revenue and asset growth.
    
    
      American Riviera Bank reported revenue of $1.5 million and net profit of 
      $38 thousand for the quarter ending September 30, 2008 (3Q2008), 
      compared to $1.0 million in revenue and a net loss of $550 thousand in 
      3Q2007. Revenue for the nine months ending September 2008 was $4.2 
      million, up 75% from the $2.4 million reported for the same period last 
      year. The Bank’s YTD loss in 2008 of $288 
      thousand is less than projected, and considerably lower than the $1.4 
      million loss incurred for the same period last year. The Bank has 
      reduced the total cost of funds to 2.88% for 3Q2008, from 4.25% for 
      3Q2007, and maintained net interest margin of 4.29% for 3Q2008 compared 
      to most recent peer group averages of 3.25%.
    
    
      “In June, we had our first month of 
      profitability and today we announce our first full quarter of 
      profitability. The continued positive trend has been made possible by 
      high quality asset and core deposit growth,” 
      said Jeff DeVine, the Bank’s President and CEO.
    
    
      Total assets grew to $96.3 million, up from $68.8 million at 3Q2007. 
      Loans increased 50% to $79.8 million at 3Q2008, from the $53.3 million 
      reported at 3Q2007. The Bank’s loan portfolio 
      continues to perform well with no delinquent loans, no non-accrual loans 
      and no loan charge-offs. Loan loss provision for 3Q2008 was $127 
      thousand, compared to $133 thousand in 3Q2007. American Riviera Bank’s 
      capital position remains strong with a Tier 1 Leverage ratio of 20% at 
      3Q2008, well above the regulatory definition of 5% for well capitalized 
      institutions.
    
    
      The Bank’s continued focus on gathering core 
      deposits and expanding relationships resulted in a 46% increase in total 
      deposits from 3Q2007, reaching $70.2 million at 3Q2008. “It 
      has become increasingly apparent in these uncertain economic times, that 
      our existing and new depositors have found comfort in our community 
      banking approach and strong capital position,” 
      said DeVine. “Deposit growth has been 
      consistent across all product types this year including demand, savings, 
      money market and certificates of deposit.”
    
    
      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 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.