American Riviera Bank announced Tuesday unaudited net income of $391,000 (15 cents per share) for the quarter ended June 30, and $730,163 (29 cents per share) for the six months ended
June 30.

Pre-tax income for the quarter increased 68 percent to $649,000 at June 30 compared with the $386,000 reported for the quarter ended June 30, 2012. Pre-tax income for the first six months of 2013 was $1,211,334, an 83 percent improvement from the $660,928 reported for the first six months of 2012.

The bank has experienced strong growth in loans; reporting $138 million in average loans for the second quarter of 2013, which represents a 22 percent increase from the second quarter of 2012.

Although there has been some pressure on net interest margin due to competition for quality loans in our community; net interest margin remains well above peer average at 4.68 percent year to date, and 4.64 percent in the most recent quarter, due to the funding advantage provided by an increase in non-interest bearing deposits.

American Riviera Bank has also experienced consistent growth in deposits reporting $145 million in total deposits at June 30. The bank grew non-interest bearing checking accounts to $40 million at quarter end, a 48 percent increase compared to the same reporting period last year.

“The bank is pleased to be experiencing consistent growth from our existing Santa Barbara branch as well as our new Montecito branch,” said Jeff DeVine, president and chief executive officer. “The new clients and increased deposits have enabled us to grow loans and meet significant local loan demand. We are excited to serve an expanding number of clients throughout the community and look forward to helping each client achieve their goals.”

The bank has $180 million in total assets, and maintains a strong capital position with Tier 1 Capital to total average assets of 14 percent as of June 30; well above the regulatory guideline of 5 percent for well capitalized institutions. The book value of one share of American Riviera Bank stock is $9.53 at June 30, an increase from $8.99 at June 30, 2012.

— Michelle Martinich is senior vice president and chief financial officer for American Riviera Bank.