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Santa Barbara, CA – American Riviera Bancorp (OTCQX: ARBV) announced its unaudited financial results for the third quarter of 2025, showcasing solid growth and improved profitability. The holding company for American Riviera Bank reported a net income of $2.9 million, or $0.51 per share, for the quarter ended September 30, 2025. For the nine months ended September 30, 2025, net income reached $7.9 million, or $1.38 per share.
Total deposits experienced an impressive year-over-year increase of 11.3%, reaching $1.26 billion, composed entirely of core deposits. Total loans also saw growth, rising 6.7% year-over-year to $1.04 billion. The Bancorp’s tangible book value per share increased to $20.52, an 11.7% rise from the previous year, and shareholders’ equity reached $122.1 million, marking an 8.9% increase.
From a profitability standpoint, American Riviera Bancorp reported a net interest margin (NIM) of 3.66%. The total cost of funds improved to 1.48%, a decrease of 18 basis points year-over-year. On-balance sheet liquidity remained strong at $293.2 million. However, non-accrual loans saw a significant increase, reaching $9.8 million, which warrants further analysis.
The company noted its allowance for credit losses was $12.7 million, representing a coverage ratio of 1.22% of total loans. Despite consistent asset quality trends with no significant real estate challenges, some analysts are concerned about this coverage level given macroeconomic uncertainty.
During the quarter, the company actively repurchased shares under its existing buyback program, acquiring 100,000 shares to demonstrate its commitment to shareholder value.
Further details revealed a strategic shift from wholesale funding, relying instead on relationship-based core deposits. This emphasis on organic growth, combined with effective expense management, contributed primarily to year-over-year increases in profitability.
Jeff DeVine, President and CEO, expressed enthusiasm about expanding American Riviera Bank into Ventura County. The expansion is expected to open new opportunities by leveraging local relationships through seasoned relationship bankers.
Positive
Total deposits +11.3% YoY to $1.26B
Total loans +6.7% YoY to $1.04B
Tangible book value per share +11.7% YoY to $20.52
Net interest margin +33 bps YoY to 3.66%
Total cost of funds improved 18 bps YoY to 1.48%
Negative
Non-accrual loans increased to $9.8M from $0.5M YoY
Allowance for credit losses only $12.7M (1.22% coverage)
Total non-interest expense rose to $8.6M in Q3 2025
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