American Riviera Bancorp : Quarterly Report

FOR IMMEDIATE RELEASE

American Riviera Bancorp Reports Quarterly Earnings

Santa Barbara, California (April 22, 2022) - American Riviera Bancorp ("Company") (OTCQX: ARBV), holding company of American Riviera Bank ("Bank"), announced today unaudited net income of $3.2 million ($0.61 per share) for the three months ended March 31, 2022. This represents a 23% increase in net income from the $2.6 million ($0.50 per share) earned in the same reporting period in the prior year.

Core loans, excluding SBA PPP loans, have grown 17% or $114.9 million over the last year since March 31, 2021. Core loans have grown 3% or $22.9 million in the last quarter since December 31, 2021. PPP loan forgiveness has been efficiently handled for our small business clients, and only $11.6 million of these 1.00% interest rate loans remained outstanding at March 31, 2022. In the last year, the Bank originated higher-yielding core loans at a volume which exceeded PPP forgiveness and repayments. The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due, and only $2.8 million or 0.36% of total loans excluding PPP on non-accrual status, which are well supported by collateral.

The Bank continues to experience tremendous deposit growth with a 27% or $263.2 million increase in total deposits over the last year since March 31, 2021. Non-interest-bearing demand deposits increased 19% or $76.4 million over the last year. Deposit inflows from our clients have been the driving factor in the total assets of the Company increasing 26% or $278.7 million since March 31, 2021 to a total of $1.4 billion at March 31, 2022.

Jeff DeVine, President and Chief Executive Officer noted, "2022 is off to a great start! The formation of American Riviera Bancorp this quarter and its issuance of $18.0 million of 3.75% fixed to floating rate subordinated notes will bolster capital ratios at the Bank level and support our continued growth. SBA PPP loans have been replaced by higher-yielding core loans, and our sizeable balance sheet liquidity will generate increased interest income in a rising rate environment."

As of March 31, 2022, the Company and Bank continue to be well capitalized with Tier 1 Capital ratios of 11% and 13%, respectively. The tangible book value per share of American Riviera Bancorp common stock is $16.33 at March 31, 2022.

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, San Luis Obispo and Paso Robles. 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. For twelve consecutive years, the Bank has been recognized for strong financial performance by the Findley Reports, and has received the highest "Super Premier" rating from Findley every year since 2016. The Bank was rated "Outstanding" by the Federal Deposit Insurance Corporation in 2020 for its performance under the Community Reinvestment Act.

American Riviera Bankwww.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.

Balance Sheets (unaudited)

(dollars in thousands)

Assets

Cash & Due From Banks

Securities

Loans (excluding PPP) PPP Loans

Allowance For Loan Losses Net Loans

Mar 31, 2022

$

• 320,683 $ 220,364 776,395 11,633 (9,394) 778,634

Mar 31, 2021

• 187,886 $ 86,587

One Year $ ChangeOne Year % Change

132,797 71%

133,777 155%

661,520 119,429 (8,817) 772,132

114,875 17%

(107,796) -90%

(577) 7%

6,502 1%Premises & Equipment Goodwill and Other Intangibles Other Assets

Total Assets

Liabilities & Shareholders' Equity

Demand Deposits

NOW Accounts

Other Interest Bearing Deposits Total Deposits

9,948 5,080 27,327

$

1,362,036

$

11,760 5,191 19,770

1,083,326

(1,812) -15%

(111) -2%

7,557 38%

$

278,710 26%

$

• 481,619 $ 193,178 571,595 1,246,392

• 405,264 $ 144,591 433,310 983,165

76,355 19%

48,587 34%

138,285 32%

263,227 27%

Borrowed Funds Other Liabilities Total Liabilities

18,000 7,971 1,272,363

5,000 8,705 996,870

13,000 260%

(734) -8%

275,493 28%Common Stock Retained Earnings Other Capital

Total Shareholders' Equity

56,554 43,370 (10,251) 89,673

55,821 31,163

(528) 86,456

733 1%

12,207 39%

(9,723) 1841%

3,217 4%

Total Liabilities & Shareholders' Equity

$

1,362,036

$

1,083,326

$

278,710 26%

Balance Sheets (unaudited)

(dollars in thousands)

Assets

Cash & Due From Banks

Securities

Loans (excluding PPP)

PPP Loans

Allowance For Loan Losses Net Loans

March 31, 2022

December 31, September 30,2021

2021

$

• 320,683 $ 220,364 776,395 11,633 (9,394) 778,634

• 292,111 $ 191,543 753,494 39,996 (9,383) 784,107

• 262,965 $ 146,937 728,316 50,966 (9,376) 769,906

June 30, 2021

233,502 $ 187,886

110,403 86,587

701,399 661,520

76,093 119,429

(9,373)March, 31 2021

(8,817)

768,119 772,132

Premises & Equipment Goodwill and Other Intangibles Other Assets

Total Assets

Liabilities & Shareholders' Equity

Demand Deposits

NOW Accounts

Other Interest Bearing Deposits Total Deposits

9,948 5,080 27,327

$ 1,362,036

$ 1,306,540

$

• 481,619 $ 193,178 571,595

10,429 5,075 23,275

• 470,763 $ 181,546 549,781

• 1,246,392 1,202,090

10,848 5,135 22,371

$ 1,218,162

$ 1,150,269

• 435,489 $ 177,952 502,237

11,330 11,760

5,166 5,191

21,749 19,770

$

1,083,326

428,577 $ 405,264

170,029 144,591

452,867 433,310

1,115,678

1,051,473 983,165

Borrowed Funds Other Liabilities Total Liabilities

18,000 7,971 1,272,363

- 8,177 1,210,267

- 8,665 1,124,343

- 5,000

7,986 8,705

1,059,459 996,870

Common Stock Retained Earnings Other Capital

Total Shareholders' Equity

56,554 43,370 (10,251) 89,673

56,564 40,432

(723) 96,273

56,302 37,685

(168) 93,819

56,146 55,821

34,735 31,163

(71) (528)

90,810

86,456

Total Liabilities & Shareholders' Equity

$ 1,362,036

$ 1,306,540

$ 1,218,162

$ 1,150,269

$

1,083,326

Statement of Income (unaudited)

(dollars in thousands, except per share data)

Interest Income

Interest and Fees on Loans

Fees on PPP Loans

Net Fair Value Amortization Income

Interest on Securities

Interest on Fed Funds

Interest on Due From Banks Total Interest Income

Interest Expense

Interest Expense on Deposits Interest Expense on Borrowings Total Interest Expense

Net Interest Income

Provision for Loan Losses

Net Interest Income After Provision

Non-Interest Income

Service Charges, Commissions and Fees

Other Non-Interest Income

Total Non-Interest Income

Non-Interest Expense

Salaries and Employee Benefits Occupancy and Equipment Other Non-Interest Expense Total Non-Interest Expense

Quarter EndedMar 31, 2022

$

• 8,600 $

913

7

842 -

142

10,504

210 67 277 10,227 - 10,227

670 494 1,164

Mar 31, 2021

Change

• 7,874 9%

• 946 3%

• 43 -84%

• 271 211%

-n/a

60 137%

9,194 14%

263 -20%

-n/a

263 5%

• 8,931 15% 338 -100%

• 8,593 19%

• 653 3%

• 173 186%

• 826 41%

  4,310 755 1,895 6,960

• 3,706 16%

• 590 28%

• 1,530 24%

• 5,826 19%

  Net Income Before Provision for Taxes Provision for Taxes

  Net Income

  4,431 1,276

  $

  3,155

• 3,593 23%

• 1,033 24%

  $

• 2,560 23%Shares (end of period) Earnings Per Share - Basic Return on Average Assets Return on Average Equity Net Interest Margin

5,178,965

5,127,895 1%

$

• 0.61 $

• 0.50 22%

  1.00%

• 1.07% -7%

  15.58%

• 12.34% 26%

  3.22%

• 3.78% -15%