American Riviera Bank (OTC BB: ARBV.OB) on Thursday announced a record 65 percent annual growth in total assets, reaching $131 million in assets as of March 31.

American Riviera Bank, 1033 Anacapa St., reported total loans of $91 million as of March 31, the end of the first quarter, an increase of 35 percent, or $24 million, from the same period a year ago and 5 percent growth from Dec. 31. The bank’s sustained focus on deposit growth yielded total deposits of $105 million as of the first quarter’s end, an increase of 80 percent, or $46 million, from a year ago and a $20 million increase from Dec. 31.

“We are pleased to have the support of our community,” said Jeff DeVine, American Riviera Bank’s president and CEO. “This strong deposit growth allows us to continue to serve our clients by providing a safe alternative for their deposits while funding loans to qualified individuals and local businesses.”

As a result of the significant deposit growth, the bank achieved higher than expected liquidity. While these deposits will provide a long-term source for continued loan growth, in the short-term, this excess liquidity had to be conservatively invested in high-quality, low-yielding investments, thereby reducing the bank’s net interest margin in the first quarter. As loan yields have remained steady, the bank expects to see the net interest margin improve in the second quarter as these funds are utilized for loans. The bank had no delinquent loans, no nonaccrual loans and no loan charge-offs in the first quarter. The bank recorded a first-quarter loan loss provision of $46,000, primarily related to growth in the loan portfolio, and maintained a loan-loss allowance equal to 1.20 percent of outstanding loans, which management considers adequate.

Given the economic environment, bank officials remain vigilant in reviewing the loan portfolio and allowance for potential future loan losses.

American Riviera Bank again continued its trend of positive earnings and reported $7,000 in net income for the first quarter. The bank did not apply for or accept TARP or any other government-subsidized capital infusions, and continues to maintain a strong capital position with a Tier 1 Leverage ratio of 15 percent at the end of the first quarter, well above the regulatory guideline of 5 percent for well capitalized institutions.

Founded in 2006 by more than 400 local shareholders, American Riviera Bank is located at 1033 Anacapa St.

— Michelle Martinich is chief financial officer at American Riviera Bank.