The 2011 net income includes recognition of $2,481,000 in federal and state tax benefits made possible by reversal of a valuation allowance on deferred tax assets.

American Riviera Bank focuses on providing relationship banking services delivered through knowledgeable bankers and innovative technology. This combination of service and technology has resulted in significant growth in customers and relationships. In 2011, the Bank opened almost 500 new checking, savings and money market accounts. Non-interest bearing demand deposits grew by 46% compared to one year ago, reaching $23 million, or 20% of total deposits as of December 31, 2011. Loans outstanding increased 15% compared to one year ago, reaching $108 million at December 31, 2011. The Bank was able to grow deposits and loans without sacrificing net interest margin. Net interest margin was 4.87% for the year ended December 31, 2011, up slightly from 4.75% for the same period last year.

Jeff DeVine, President and Chief Executive Officer stated, “Despite the challenging economy, our Bank was able to report another profitable year and grow loans within our community due to our strong capital position and expanding deposit base. We are thankful for the trust of our clients, and look forward to continuing to serve their needs in 2012.”

As a result of residential real estate market deterioration in the latter half of 2011, the Bank absorbed $1.4 million in loan charge-offs during 2011, compared to $54,000 in 2010. The Bank recorded $810,000 in loan loss provision for the year ended December 31, 2011 compared to $648,000 for the year ended December 31, 2010. As a result of focused efforts, loan quality was improved during the year and the Bank reported no nonaccrual or past due loans at December 31, 2011. Management and the Board of Directors believe that the allowance for loan losses at 2.35% of total loans is adequate at December 31, 2011.

The Bank has $142 million in total assets, and maintains a strong capital position with Tier 1 Capital to total average assets of almost 15% as of December 31, 2011; well above the regulatory guideline of 5% for well capitalized institutions. Book value and tangible book value of one share of American Riviera Bank stock is $8.88 at December 31, 2011, an increase from $7.48 at December 31, 2010.

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.


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