Overall, the ARB team spent much of the aftermath fielding FDIC questions and educating clients on how accounts were already structured with FDIC insurance, or how to obtain additional FDIC insurance, if necessary. There was minimal foot traffic in the branches which we interpreted as a good sign that customers were not concerned about safety of their accounts at American Riviera Bank. With branches from Paso Robles to Montecito, ARB has a strong presence on the Central Coast, with clients that represent a variety of industries. This variation in customer type and industry supports a more diverse portfolio and is strategic, to remain more conservative than financial institutions like SVB.  

Mr. DeVine proceeded to review the state of American Riviera Bank, as of December 31, 2022, providing insight into its stability and strength. ARB is a growing franchise throughout California’s Central Coast with a strong history of relationship-based loan growth funded by a stable, diverse deposit base. Its strong core deposit base is at a low cost which will continue to benefit interest income and support net interest margin in the current rate environment. 

Additionally, its deposit base represents many industries and purposes with no concentration with a single depositor. Of total deposits, this mix includes: 24% personal, 18% trust and estate, 11% real estate, as well as professional/technical, accommodation and food service, construction, retail, arts, and more.  

Additionally, Mr. DeVine and Ms. Martinich shared that ARB had experienced 20% loan growth from December 31, 2021, to December 31, 2022, and this growth was exclusive of PPP loans. This high-quality loan growth, partnered with a 78% loan to deposit ratio and close to $300 million in available liquidity all support a healthy balance sheet. Also, the Bank’s credit quality has remained strong with only $3.1 million, or 0.24% of total assets, classified as non-performing. 

When discussing an overview of the Central Coast market, Mr. DeVine shared that there are no banks headquartered in San Luis Obispo County and, in Santa Barbara County, American Riviera Bank is the second largest bank and the largest publicly traded throughout the Central Coast. ARB has added new locations, such as the recent addition of the Santa Maria commercial banking center, when many banks are downsizing. Since 2012, 10 banks with $6.8B of deposits in ARB’s footprint have been acquired, including 7 banks headquartered in-market.  

Going forward, ARB will continue to grow its already leading SBA market share as well as its impact within its geographic footprint, with a focus on a strong professional service, CRE, small businesses - always leading with its focus on client-centric service. The Bank continues to utilize the full capability of the FHLB, prioritize education between its bankers and clients, and appreciates the synergy that comes with the community bank and client relationship.  

The complete presentation is available for review on the Investor Relations page.