Santa Barbara, California (October 28, 2026) – American Riviera Bancorp (“Company”) (OTCQX: ARBV), holding company of American Riviera Bank (“Bank”), announced today unaudited net income of $11.6 million ($2.01 per share) for the nine months ended September 30, 2026, an increase of 46.7% compared to $7.9 million ($1.38 per share) earned in the same reporting period in the previous year.
Unaudited net income was $4.3 million ($0.75 per share) for the three months ended September 30, 2026, compared to $3.3 million ($0.57 per share) in the previous quarter, and $2.9 million ($0.51 per share) earned in the same reporting period in the previous year. Net income pre-tax, pre-provision (non-GAAP) continued to increase, reaching $6.3 million for the three months ended September 30, 2026, compared to $5.4 million in the previous quarter, and $4.7 million in the same reporting period in the previous year. Earnings for the three months ended September 30, 2026, include $477,000 of non-recurring loan interest recovery.
Total deposits were $1.26 billion at September 30, 2026, an increase of $2.5 million or 0.2% from September 30, 2025. Total loans were $1.18 billion at September 30, 2026, an increase of $142.0 million or 13.6% from September 30, 2025. Total deposits grew $36.3 million or 3.0%, and loans grew $30.2 million or 2.6% in the third quarter of 2026.
“In our twentieth anniversary year, we are pleased to report record year to date earnings made possible by double digit loan growth in the communities we serve. Over the past year, efforts by our team have increased our loan to deposit ratio from 82.6% to 93.7% while maintaining strong credit quality and underwriting standards.”
Jeff DeVine, President and CEO of the Company and the Bank
For the third quarter of 2026, unaudited net income was $4.3 million, compared to $3.3 million reported in the second quarter of 2026, and $2.9 million reported in the third quarter of 2025. The third quarter of 2026 includes $0.5 million of loan interest recovery related to one non-accrual loan that was sold.
Unaudited net income pre-tax, pre-provision (non-GAAP) has increased sequentially over the last five quarters and was $6.3 million in the third quarter of 2026, a $0.9 million or 16.0% increase from the second quarter of 2026, and a $1.8 million or 40.2% increase from the $4.5 million reported in the third quarter of 2025.
The Bank has grown interest and fees on loans sequentially over the last five quarters from $14.8 million in the third quarter of 2025 to $17.8 million in the third quarter of 2026, representing a $3.0 million or 20.6% increase.
Total interest expense has remained stable at $4.7 million in the third quarter of 2026 compared to $4.6 million for the third quarter of 2025. Total interest expense increased $0.4 million from the prior quarter primarily due to increased average short-term borrowings carried to support loan growth.
Net interest income before provision in the third quarter of 2026 increased $2.5 million or 20.1% compared to the third quarter of 2025.
Total non-interest income was $1.2 million for the third quarter of 2026, an increase of $0.1 million from the prior quarter, and an increase of $0.3 million from the third quarter of 2025. Variances between the quarters can be attributed to Federal Home Loan Bank (“FHLB”) dividends, SBA loan sale premiums, mortgage broker fees, loan prepayment fees and gains or losses on sale of securities.
Total non-interest expense was $9.6 million for the third quarter of 2026, an increase from the $9.2 million reported in the prior quarter, and an increase from the $8.6 million reported for the third quarter of 2025. Variances between the quarters can be attributed to changes in staffing, bonus accrual adjustments, operating losses and recoveries, and the timing of expenses related to advertising and events.
The Company has significantly improved operating leverage with total non-interest expense up only $2.6 million or 10.4% for the first nine months of 2026 versus the first nine months of 2025, while net interest income before provision increased $6.6 million, or 18.9% for the comparison period.
Total loans were $1.18 billion at September 30, 2026, an increase of $30.2 million or 2.6% from the prior quarter-end, and an increase of $142.0 million or 13.6% from September 30, 2025.
The Bank’s Allowance for Credit Losses (“ACL”) was $14.3 million at September 30, 2026, with a resulting coverage ratio of 1.21%, an increase from the prior quarter coverage ratio of 1.19%. As of September 30, 2026, non-accrual loans totaled only $4.2 million, a $3.7 million decrease from the previous quarter-end, and a $5.6 million decrease from the $9.8 million reported at September 30, 2025. All loans on non-accrual are well supported by collateral, borrower assets, SBA guarantees, or specific reserves.
Total deposits were $1.26 billion at September 30, 2026, a $36.3 million or 3.0% increase from the prior quarter-end, and an increase of $2.5 million or 0.2% from September 30, 2025. Deposit growth quarter-over-quarter was primarily from core deposits, with only $5.0 million of wholesale brokered deposits accepted at September 30, 2026.
Non-interest-bearing demand deposits totaled $486.5 million at September 30, 2026, an increase of $7.3 million or 1.5% from the prior quarter-end, and an increase of $4.2 million or 0.9% from September 30, 2025.
Interest-bearing demand deposits totaled $171.8 million at September 30, 2026, an increase of $12.9 million or 8.1% from the prior quarter-end, and a decrease of $9.2 million or 5.1% from September 30, 2025. Total demand deposits, including interest-bearing demand, represent 52.1% of total deposits at September 30, 2026, compared to 52.0% at the prior quarter-end, and 52.6% at September 30, 2025.
Other interest-bearing deposits totaled $604.9 million at September 30, 2026, an increase of $16.1 million or 2.7% from the prior quarter-end, and an increase of $7.5 million or 1.3% from September 30, 2025.
The weighted average cost of deposits for the third quarter of 2026 increased 3 basis points to 1.27% from 1.24% for the second quarter of 2026 and decreased 18 basis points from the 1.45% reported for the same quarter of the previous year. The decrease in cost of deposits in the last year was due to the Federal Reserve’s three 25 basis point rate cuts in the last four months of 2025 which carried into 2026. The recent increase in cost of deposits is primarily due to a competitive deposit rate environment.
The Company’s total borrowings were $60.7 million at September 30, 2026, a decrease of $8.0 million from the prior quarter-end and a $34.2 million increase from September 30, 2025 to support loan growth. At September 30, 2026, the Company had $9.5 million outstanding on a correspondent bank loan at a rate of 3.85%, $16.2 million of subordinated notes outstanding at a rate of 3.75%, and $35.0 million of short-term, one month or less duration advances with a weighted average cost of 4.00%. The weighted average cost on all borrowings for the third quarter of 2026 was 3.85%, resulting in $0.7 million of interest expense on borrowings, an increase of $0.2 million compared to the prior quarter, and an increase of $0.5 million compared to the interest expense on borrowings for the third quarter of 2025.
Due to favorable demand deposit mix and continued focus on maintaining and growing relationships, total cost of funds remained low at 1.42% for the third quarter of 2026, which was 6 basis points higher than the 1.36% reported for the previous quarter, but 6 basis points lower than the 1.48% reported for the third quarter of 2025.
The Company’s net interest margin improved to 4.11% for the third quarter of 2026, compared to 4.01% in the prior quarter, and improved a significant 45 basis points from the 3.66% reported for the same quarter of last year as a result of steady loan yield improvement and a decline in total cost of funds. Net interest margin for the third quarter of 2026 adjusted to exclude $477,000 of non-recurring loan interest recovery was 4.02%.
The Bank’s liquidity position remained strong with a primary liquidity ratio (cash and cash equivalents, deposits held in other banks and unpledged AFS securities as a percentage of total assets) of 11.7% at September 30, 2026, compared to 11.8% at June 30, 2026. As of September 30, 2026, the Bank had $545.0 million of available contingent funding sources.
Overall uninsured deposits, excluding public agency deposits that are collateralized, are conservatively estimated to be $439.6 million, or 34.8% of total deposit balances as of September 30, 2026. The actual level of uninsured deposits is lower than the percentage stated above, as our knowledgeable bankers have helped clients obtain more than $250,000 of FDIC insurance with vesting structures such as joint accounts, payable upon death accounts, and revocable trust accounts with multiple beneficiaries. In addition, the Bank can offer up to $285 million of FDIC pass-through insurance to clients via the IntraFi network Insured Cash Sweep (“ICS”) or Certificate of Deposit Account Registry Service (“CDARS”) products.
Total shareholders’ equity was $137.5 million at September 30, 2026, a $2.7 million or 2.0% increase since June 30, 2026, and an increase of $15.4 million or 12.7% from the same quarter in the previous year. The tax adjusted unrealized loss on securities, which is a component of equity (accumulated other comprehensive income or “AOCI”), was $16.0 million at September 30, 2026, and has increased $1.3 million or 8.7% from September 30, 2025. The Bank fully expects to receive all principal when the securities mature.
As of September 30, 2026, the Company had repurchased a cumulative 130,616 shares of common stock at a weighted average cost of $19.80, leaving $2.4 million available for repurchase under the existing share repurchase program. No shares were repurchased in the quarter ending September 30, 2026.
Company Profile
American Riviera Bancorp (OTCQX: ARBV) is a registered bank holding company headquartered in Santa Barbara, California. American Riviera Bank, the 100% owned subsidiary of American Riviera Bancorp, is a full-service community bank focused on serving the lending and deposit needs of businesses and consumers on the Central Coast of California. The state-chartered bank opened for business on July 18, 2006, with the support of local shareholders. Full-service branches are located in Santa Barbara, Montecito, Goleta, Santa Maria, San Luis Obispo, Atascadero, and Paso Robles. In December 2025, the Bank opened a lending center in the City of Ventura and anticipates opening a full-service branch in early 2027. The Bank provides commercial business, commercial real estate, residential mortgage, construction, and Small Business Administration lending services as well as convenient online and mobile technology. The Bank maintains a “5 Star - Superior” rating from Bauer Financial, and for fifteen consecutive years has been recognized for strong financial performance by the Findley Reports. The Bank is rated “Outstanding” by the Federal Deposit Insurance Corporation for its performance under the Community Reinvestment Act. #BankonBetter #OTCQX
American Riviera Bank
www.americanriviera.bank
805-965-5942
Michelle Martinich
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.
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