Yesterday, American Riviera Bank announced unaudited net income of $1,024,000 for the year ended December 31, 2010.

Their net interest margin was 4.75 percent for the year ended December 31, 2010. This is up from 3.97 percent for the same period last year. In 2010, the number of core deposit accounts increased 18 percent and the dollar amount of core deposits increased 11 percent to $95 million, a figure that represented 87 percent of total deposits as of December 31, 2010. Non-interest bearing demand deposits grew a notable 57 percent since December 31, 2009.

Average loan balances for the year ended December 31, 2010 increased 5 percent to $103 million from the same period the year prior. However, due to normal loan payment amortization and targeted construction loan payoffs in conjunction with limited new loan demand from qualified borrowers, the loan balances outstanding at December 31, 2010 were $94 million.

The Bank had a 3.37 percent and 2.43 percent allowance for loan losses as a percentage of total loans at December 31, 2010 and 2009, respectively. Their Management and the Board of Directors believes the allowance for loan losses is adequate at December 31, 2010.

American Riviera Bank recorded $648,000 in loan loss provision and $54,000 in net loan charge-offs for the year ended December 31, 2010. This is in comparison to $2.7 million and $1.2 million for the year ended December 31, 2009, respectively. Continued improvements in loan quality resulted in a 57 percent reduction in non-performing loans and real estate owned since December 31, 2009. As of December 31, 2010, the Bank was not carrying any real estate owned.

American Riviera Bank has $140 million in total assets and maintains a strong capital position with Tier 1 Capital to total assets exceeding 13 percent as of December 31, 2010. This is well above the regulatory guideline of 5 percent for well-capitalized institutions.

Mr. Jeff DeVine, American Riviera Bank’s President and Chief Executive Officer, stated, “2010 was a significant year for the Bank. We had substantial growth in our relationship customer base, while achieving profitability despite a challenging banking environment. We are pleased to share this news with our shareholders and our community.”

Headquartered in Santa Barbara, California, American Riviera Bank is a full service community bank, focused on serving the lending and deposit needs of businesses and consumers in their community. The Bank was founded in 2006 by more than 400 local shareholders and has one branch located at 1033 Anacapa Street in downtown Santa Barbara.

For more information visit: www.americanrivierabank.com