American Riviera Bank is a full-service community bank based in Santa Barbara, California. The company reported yesterday unaudited net income of $502,000 for the six months ended June 30, 2010 – a vast improvement from the same period last year.

The bank’s unaudited net income for the quarter ended June 30, 2010 was substantial at $274,000. This is especially so considering that the figure included a $72,000 loan charge-off and a $124,000 loss on sale of other real estate owned.

American Riviera’s net margin continues to increase, reaching 4.68% for the six months ended June 30, 2010, up from 3.67% in the same period last year. For the quarter, net margin improved even more, up to 4.9%. The bank has also made significant improvements in its deposit mix by focusing on core accounts. In the last 12 months, core deposits have increased 12% to 82 million, or 80 percent of total deposits.

Loan balances grew to $107 million as of June 30, 2010, up from $104 million a year ago and up 7 percent in the last quarter. The company continues to maintain an ample 2.74% loan loss allowance. However, American Riviera Bank has make great strides in improving its loan quality, with a 46 percent reduction in non-performing loans and other real estate owned since December 31, 2009.

American Riviera Bank continues to maintain a strong capital position with Tier 1 capital to total assets of 13 percent as of June 30, 2010. This is well above the regulatory guideline of 5 percent for well capitalized institutions. The CEO of the company, Jeff Devine, said, “With many other banks concerned about earnings and capital, our bank is well positioned to continue to serve our community by providing a safe place for its deposits and knowledgeable and experienced bankers for its lending needs”.