Santa Barbara, California (January 28, 2026) – American Riviera Bancorp (“Company”) (OTCQX: ARBV), holding company of American Riviera Bank (“Bank”), announced today unaudited net income of $12.4 million ($2.18 per share) for the year ended December 31, 2025, compared to $8.7 million ($1.50 per share) earned in the same reporting period in the previous year. Unaudited net income was $4.5 million ($0.80 per share) for the three months ended December 31, 2025, compared to $2.9 million ($0.51 per share) in the previous quarter, and $2.0 million ($0.35 per share) earned in the same reporting period in the previous year.
Total deposits were $1.20 billion at December 31, 2025, an increase of $86.7 million or 7.8% from December 31, 2024. At December 31, 2025, all deposits were “core deposits” from our clients, with no wholesale-funded certificates of deposit. Total loans were $1.08 billion at December 31, 2025, an increase of $91.8 million or 9.3% from December 31, 2024. Total loans grew $39.9 million or 3.8% in the fourth quarter of 2025.
“In 2025, we achieved over $90 million of net loan growth and similar growth in deposits through onboarding new clients and expanding existing relationships. Earnings improved substantially, and our shareholders were rewarded with a 17.4% increase in tangible book value per share and a new high for ARBV share price. We have reinvested for growth and look forward to opportunities from our new lending center in Ventura County.”
Jeff DeVine, President and CEO
Fourth Quarter 2025 Highlights
Fourth Quarter 2025 Earnings
For the fourth quarter of 2025, unaudited net income was $4.5 million, compared to $2.9 million reported in the third quarter of 2025, and $2.0 million reported in the fourth quarter of 2024. In the fourth quarter of 2025 the bank purchased a qualified energy Federal tax credit at a discount, which was applied to 2025 Federal tax liability and carried back for 3 prior tax years, resulting in the recognition of a $535,000 tax credit gain. Unaudited net income pre-tax, pre-provision (non-GAAP) was $5.1 million in the fourth quarter of 2025, a $0.6 million or 13.7% increase from the $4.5 million reported in the third quarter of 2025, and a $1.8 million or 54.6% increase from the $3.3 million reported in the fourth quarter of 2024.
The Bank continues to grow interest and fees on loans sequentially over the last five quarters from $13.4 million in the fourth quarter of 2024 to $15.4 million in the fourth quarter of 2025, representing a $2.0 million or 15.0% increase.
Total interest expense has decreased from $4.8 million in the fourth quarter of 2024 to $4.5 million in the fourth quarter of 2025, a $0.3 million or 5.8% decrease, even though deposits have grown $86.7 million or 7.8% since the fourth quarter of 2024. Total interest expense has declined due to the favorable shift in funding mix, reduced borrowings, and deposit rate reductions which followed the Federal Reserve’s actions to lower its target rate by a total of 75 basis points in the last four months of 2025.
Net interest income pre-provision increased $1.1 million or 8.7% in the fourth quarter of 2025 compared to the third quarter of 2025 and increased $2.7 million or 25.2% compared to the fourth quarter of 2024.
Non-Interest Income and Expense
Total non-interest income was $0.9 million for the fourth quarter of 2025, the same as the prior quarter, and $0.1 million more than the fourth quarter of last year. Variances between the quarters can be attributed to SBA loan sale premiums, mortgage broker fees, loan interest rate swap fees, loan prepayment fees and gains or losses on sale of securities.
Total non-interest expense was $9.1 million for the fourth quarter of 2025, an increase from the $8.6 million reported for the prior quarter and the $8.1 million reported for the same quarter last year. 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 generated significant operating leverage with total non-interest expense up only $1.7 million or 5.1% in fiscal 2025 while net interest income increased $6.7 million, or 16.2% in fiscal 2025.
Loans and Asset Quality
Total loans were $1.08 billion at December 31, 2025, an increase of $39.9 million or 3.8% from the prior quarter-end, and an increase of $91.8 million or 9.3% from December 31, 2024.
The Bank’s Allowance for Credit Losses (“ACL”) was $12.7 million at December 31, 2025, with a resulting coverage ratio of 1.17%, compared to $11.6 million or 1.17% at December 31, 2024. As of December 31, 2025, non-accrual loans totaled $8.1 million, a $1.7 million decrease from the previous quarter-end, and a $2.0 million increase from the $6.1 million reported at December 31, 2024. All loans on non-accrual are well supported by collateral, borrower assets, SBA guarantees, or specific reserves.
Deposits & Borrowings
Total deposits were $1.20 billion at December 31, 2025, a $60.7 million or 4.8% decrease from the prior quarter-end, and an increase of $86.7 million or 7.8% from December 31, 2024. Deposit growth year-over-year was represented by core deposits, with no wholesale brokered funds at December 31, 2025.
Non-interest-bearing demand deposits totaled $451.7 million at December 31, 2025, a decrease of $30.6 million or 6.3% from the prior quarter-end, and an increase of $20.7 million or 4.8% from December 31, 2024. Non-interest-bearing demand deposits represent 37.6% of total deposits at December 31, 2025, compared to 38.3% at the prior quarter-end, and 38.7% at December 31, 2024.
Interest-bearing demand deposits totaled $168.4 million at December 31, 2025, a decrease of $12.5 million or 6.9% from the prior quarter-end, and an increase of $51.4 million or 43.9% from December 31, 2024. Total demand deposits, including interest-bearing demand, represent 51.7% of total deposits at December 31, 2025, compared to 52.6% at the prior quarter-end, and 49.2% at December 31, 2024.
Other interest-bearing deposits totaled $579.9 million at December 31, 2025, a decrease of $17.6 million or 2.9% from the prior quarter-end, and an increase of $14.6 million or 2.6% from December 31, 2024.
The weighted average cost of deposits for the fourth quarter of 2025 decreased to 1.29% from 1.45% for the third quarter of 2025 and decreased 29 basis points from the 1.58% reported for the same quarter of last year. The decrease in the cost of deposits was due to significant growth in demand deposits throughout the year, and the Federal Reserve’s three 25 basis point rate cuts in the last four months of 2025.
The Company’s total borrowings remained at $26.5 million at December 31, 2025, same as prior quarter, and a decrease from $41.5 million at December 31, 2024. At December 31, 2025, the Company had $10.0 million drawn on a correspondent bank line of credit at a rate of 3.85%, and $16.5 million of subordinated notes outstanding at a rate of 3.75%. The weighted average cost on all borrowings for the fourth quarter of 2025 was 3.84%, resulting in $0.3 million of interest expense on borrowings, the same as the previous quarter and for the same quarter last year.
As a result of the favorable shift to core funding and the impact of deposit pricing changes, total cost of funds was 1.41% for the fourth quarter of 2025, 7 basis points better than the 1.48% reported for the previous quarter, and 22 basis points better than the 1.63% reported for the same quarter of last year. The Company’s net interest margin improved to 3.81% for the fourth quarter of 2025, compared to 3.66% in the prior quarter, and improved a significant 49 basis points from the 3.32% reported for the same quarter of last year as a result of steady loan yield improvement and decline in total cost of funds.
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 12.1% at December 31, 2025, compared to 18.6% at September 30, 2025. As of December 31, 2025, the Bank had available and unused, secured borrowing capacity with the Federal Home Loan Bank of San Francisco of $263.6 million, and had available and unused, secured borrowing capacity with the Federal Reserve of $44.6 million. In addition, the Bank had $142.7 million of unused fed funds lines of credit with correspondent banks at December 31, 2025. Available contingent funding sources of $450.9 million remain robust.
Overall uninsured deposits, excluding public agency deposits that are collateralized, are conservatively estimated to be $398.4 million, or 33.2% of total deposit balances as of December 31, 2025. 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.
Shareholders’ Equity
Total shareholders’ equity was $127.7 million at December 31, 2025, a $5.6 million or 4.6% increase since September 30, 2025, and an increase of $16.3 million or 14.6% over the same period of the prior year. The tax adjusted unrealized loss on securities, which is a component of equity (accumulated other comprehensive income or “AOCI”), improved $0.8 million or 5.4% from $14.7 million at September 30, 2025, to $13.9 million at December 31, 2025, and improved $5.7 million or 29.2% from December 31, 2024. The Bank fully expects to receive all principal when the investments mature.
As of December 31, 2025, the Company had repurchased 130,616 shares of common stock at a weighted average cost of $19.80, leaving $2.4 million available for repurchase under the share repurchase program.
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. 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 fourteen consecutive years, has been recognized for strong financial performance by the Findley Reports. The Bank was rated “Outstanding” by the Federal Deposit Insurance Corporation in 2023 for its performance under the Community Reinvestment Act. The Company was named to the “OTCQX Best 50” list for equal weighted share trading volume and total return in 2024. The Bank was recognized by S&P Global as a Top 100 Small US Community Bank Deposit Franchise as of June 30, 2025. #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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