American Riviera Bancorp Reports Q4 2025 Financials

American Riviera Bancorp Reports Strong 2025 Performance, Exceeding Profitability and Loan Growth Targets

SANTA BARBARA, CA – American Riviera Bancorp (OTCQX: ARBV), the holding company for American Riviera Bank, announced robust financial results for the fiscal year ended December 31, 2025. The bank reported unaudited net income of $12.4 million, or $2.18 per share, a significant increase from $8.7 million, or $1.50 per share, in the prior year. This growth underscores the bank’s successful strategic execution and its ability to navigate the evolving financial landscape.

For the fourth quarter of 2025, unaudited net income reached $4.5 million, or $0.80 per share, a substantial jump from $2.9 million, or $0.51 per share, in the third quarter and $2.0 million, or $0.35 per share, in the same period of 2024. This sequential improvement highlights the bank’s consistent trajectory of enhanced profitability. A notable contributor to the fourth quarter results was a $535,000 tax credit gain, derived from the discounted purchase of a qualified energy federal tax credit.

Total deposits expanded by 7.8% year-over-year to $1.20 billion as of December 31, 2025, demonstrating a growing trust from its client base. Importantly, all deposits are classified as “core deposits,” with no wholesale-funded certificates of deposit, indicating a stable and relationship-driven funding base. Loan growth also showed strength, with total loans increasing by 9.3% year-over-year to $1.08 billion. This expansion, totaling $91.8 million, was fueled by a strong pipeline of new clients and the deepening of existing relationships.

Jeff DeVine, President and CEO of American Riviera Bancorp and American Riviera Bank, commented on the year’s performance, stating, “In 2025, we achieved over $90 million of net loan growth and similar growth in deposits through onboarding new clients and expanding existing relationships. Earnings improved substantially, and our shareholders were rewarded with a 17.4% increase in tangible book value per share and a new high for ARBV share price. We have reinvested for growth and look forward to opportunities from our new lending center in Ventura County.”

**Key Financial Highlights for Q4 2025 and FY 2025:**

* **Net Income Growth:** Achieved $12.4 million for FY2025, up from $8.7 million in FY2024. Q4 2025 net income was $4.5 million, a significant increase quarter-over-quarter and year-over-year.
* **Loan and Deposit Expansion:** Total loans reached $1.08 billion (+9.3% YoY) and total deposits grew to $1.20 billion (+7.8% YoY).
* **Margin Improvement:** The Net Interest Margin (NIM) expanded to 3.81% in Q4 2025, a 49 basis point increase year-over-year, driven by steady loan yield improvements and a declining cost of funds.
* **Shareholder Value:** Tangible book value per share increased by 17.4% year-over-year to $21.49, reflecting solid capital growth.
* **Liquidity and Capital Position:** On-balance sheet liquidity remained robust with $191.2 million in cash, due from banks, and available-for-sale securities. The bank’s tangible common equity ratio improved to 9.01%.

**Operational Strengths and Strategic Initiatives:**

The bank’s focus on core funding and relationship-based deposits has led to a more favorable cost of funds. For Q4 2025, the cost of deposits declined to 1.29%, and the total cost of funds decreased to 1.41%. This efficiency was further bolstered by a declining overall cost of funds, benefiting from the Federal Reserve’s rate cuts.

American Riviera Bank continues to maintain strong credit quality. At December 31, 2025, non-accrual loans totaled $8.1 million, representing 0.75% of total loans. The bank reported no other real estate owned and no loans 90 days or more past due and still accruing. The weighted average loan-to-value ratios for the commercial real estate portfolio remain healthy, with an average of 29% to 54% and strong debt coverage ratios.

The opening of a new lending center in Ventura County in December 2025 signals the bank’s commitment to strategic geographic expansion and capturing new market opportunities within the Central Coast region. This initiative is expected to further drive loan and deposit growth.

**Financial Health and Future Outlook:**

The bank’s balance sheet remains strong, with total assets reaching $1.37 billion at year-end 2025. Shareholders’ equity increased by 14.6% year-over-year to $127.7 million. The company also continued its share repurchase program, demonstrating confidence in its valuation and a commitment to returning value to shareholders.

With a solid foundation built on customer relationships, prudent risk management, and strategic growth initiatives, American Riviera Bancorp is well-positioned to continue its upward trajectory in the competitive banking sector. The bank’s consistent performance and focus on core community banking principles are likely to resonate with investors seeking stable growth and reliable financial stewardship.