American Riviera Bancorp Announces Results for the First Quarter of 2026

Published: 2026-04-22 21:51:12 ET ARBV

Published on 04/22/2026 at 09:51 pm EDT

SANTA BARBARA, CA / ACCESS Newswire / April 22, 2026 / American Riviera Bancorp ("Company") (OTCQX:ARBV), holding company of American Riviera Bank ("Bank"), announced today unaudited net income of $4.0 million ($0.69 per share) for the three months ended March 31, 2026, compared to $4.5 million ($0.80 per share) in the previous quarter, and $2.3 million ($0.40 per share) earned in the same reporting period in the previous year.

Total deposits were $1.25 billion at March 31, 2026, an increase of $120.1 million or 10.6% from March 31, 2025. At March 31, 2026, all deposits were "core deposits" from our clients, with no wholesale-funded certificates of deposit. Total loans were $1.10 billion at March 31, 2026, an increase of $104.6 million or 10.5% from March 31, 2025. Total loans grew $17.7 million or 1.6% in the first quarter of 2026.

Jeff DeVine, President and CEO of the Company and the Bank stated, "2026 is off to a strong start with double digit loan and deposit growth and increasing earnings over the past year. We continue to attract new clients and grow existing relationships as evidenced in our loan and deposit growth. Our technology and high touch service has allowed the Bank to reach new markets and better serve our communities. As a result of this growth, the Company was able to deliver a quarterly return on average assets above 1%, quarterly return on average equity above 12%, and a 23% increase in our ARBV share price over the past year to our shareholders."

First Quarter 2026 Highlights

Unaudited net income and earnings per share have improved 70.3% and 72.5%, respectively, from the first quarter of 2025.

Return on average assets was 1.16%, return on average equity was 12.30% and efficiency ratio was 63.60% for the first quarter of 2026.

Total shareholders' equity was $131.3 million at March 31, 2026, an increase of $16.2 million or 14.1% from the same reporting period in the previous year.

Tangible book value per share was $21.99 at March 31, 2026, an increase of $3.10 or 16.4% from the same reporting period in the previous year.

The Company's tangible common equity ratio was 8.91% at March 31, 2026, compared to 8.58% at March 31, 2025. Strong earnings and improvement in the market value of the securities portfolio were partially offset by cumulative share repurchases in 2025 totaling $2.6 million and the impact of 10.4% asset growth over the previous year.

Non-interest-bearing demand deposits were $464.8 million or 37.0% of total deposits at March 31, 2026, and have increased $19.3 million or 4.3% since March 31, 2025.

Total demand deposits were $656.6 million or 52.3% of total deposits at March 31, 2026, and have increased $94.6 million or 16.8% since March 31, 2025.

As a result of the Bank's core funding and relationship-based deposits, the cost of deposits and total cost of funds declined to 1.22% and 1.30%, respectively, for the first quarter of 2026. Total cost of funds has improved by 19 basis points from the 1.49% reported for the same quarter in the previous year.

Net interest margin ("NIM") increased to 3.97% for the first quarter of 2026, compared to 3.81% in the prior quarter, and has improved 36 basis points from the 3.61% reported for the same quarter in the previous year. NIM improved as a result of steady loan yield improvement and declining total cost of funds.

On-balance sheet liquidity continues to be substantial with $231.6 million of cash, due from banks, and available-for-sale ("AFS") securities at market value as of March 31, 2026.

At March 31, 2026, the Bank's commercial real estate ("CRE") portfolio is diverse, with weighted average loan-to-values of 29% to 53% and weighted average debt coverage ratios between 1.85x and 3.10x depending on the individual CRE category and as of the most recent CRE stress test in January 2026.

The Bank maintained strong credit quality with no other real estate owned, no loans 90 days or more past due and still accruing, and $8.0 million or 0.73% of total loans on non-accrual status, which are well supported by collateral, borrower assets, SBA guarantees, or specific reserves.

First Quarter 2026 Earnings

For the first quarter of 2026, unaudited net income was $4.0 million, compared to $4.5 million reported in the fourth quarter of 2025, and $2.3 million reported in the first quarter of 2025. The primary difference between unaudited net income for the first quarter of 2026 and the fourth quarter of 2025 was the previously reported $535,000 benefit received in the fourth quarter of 2025 from the purchase of a Federal energy tax credit at a discount. The Company's effective tax rate was only 14.5% in the fourth quarter of 2025 versus 23.4% in the first quarter of 2026.

Unaudited net income pre-tax, pre-provision (non-GAAP) has increased sequentially over the last five quarters and was $5.2 million in the first quarter of 2026, a $0.1 million or 2.1% increase from the fourth quarter of 2025, and a $1.6 million or 45.9% increase from the $3.6 million reported in the first quarter of 2025.

The Bank has grown interest and fees on loans sequentially over the last five quarters from $13.7 million in the first quarter of 2025 to $15.5 million in the first quarter of 2026, representing a $1.8 million or 13.1% increase.

Total interest expense has decreased from $4.2 million in the first quarter of 2025 to $4.0 million in the first quarter of 2026, a $0.2 million or 6.6% decrease, even though deposits have grown $120.1 million or 10.6% since the first quarter of 2025. Total interest expense has declined due to the favorable shift in funding mix and deposit rate reductions which followed the Federal Reserve's actions to lower its target rate by a total of 75 basis points in the last four months of 2025.

Net interest income pre-provision in the first quarter of 2026 increased $1.9 million or 17.4% compared to the first quarter of 2025.

Non-Interest Income and Expense

Total non-interest income was $1.2 million for the first quarter of 2026, an increase of $0.3 million from the prior quarter, and an increase of $0.4 million from the first quarter of the previous year. Variances between the quarters can be attributed to Federal Home Loan Bank ("FHLB") dividends, SBA loan sale premiums, mortgage broker fees, loan interest rate swap fees, loan prepayment fees and gains or losses on sale of securities.

Total non-interest expense was $9.1 million for the first quarter of 2026, equal to the prior quarter, and an increase from the $8.4 million reported for the same quarter in the previous year. Variances between the quarters can be attributed to changes in staffing, bonus accrual adjustments, operating losses and recoveries, and the timing of expenses related to advertising and events. The Company has significantly improved operating leverage with total non-interest expense up only $0.7 million or 8.2% for the first quarter of 2026 versus the first quarter of 2025, while net interest income increased $1.9 million, or 17.4% for the comparison period.

Loans and Asset Quality

Total loans were $1.10 billion at March 31, 2026, an increase of $17.7 million or 1.6% from the prior quarter-end, and an increase of $104.6 million or 10.5% from March 31, 2025.

The Bank's Allowance for Credit Losses ("ACL") was $12.7 million at March 31, 2026, with a resulting coverage ratio of 1.16%, a slight decrease from the prior quarter of 1.17%. As of March 31, 2026, non-accrual loans totaled $8.0 million, a $0.1 million decrease from the previous quarter-end, and a $3.2 million increase from the $4.8 million reported at March 31, 2025. All loans on non-accrual are well supported by collateral, borrower assets, SBA guarantees, or specific reserves.

Deposits & Borrowings

Total deposits were $1.25 billion at March 31, 2025, a $55.0 million or 4.6% increase from the prior quarter-end, and an increase of $120.1 million or 10.6% from March 31, 2025. Deposit growth year-over-year was represented by core deposits, with no wholesale brokered funds at March 31, 2026.

Non-interest-bearing demand deposits totaled $464.8 million at March 31, 2026, an increase of $13.1 million or 2.9% from the prior quarter-end, and an increase of $19.3 million or 4.3% from March 31, 2025.

Interest-bearing demand deposits totaled $191.8 million at March 31, 2026, an increase of $23.4 million or 13.9% from the prior quarter-end, and an increase of $75.3 million or 64.7% from March 31, 2025. Total demand deposits, including interest-bearing demand, represent 52.3% of total deposits at March 31, 2026, compared to 51.6% at the prior quarter-end, and 49.5% at March 31, 2025.

Other interest-bearing deposits totaled $598.4 million at March 31, 2026, an increase of $18.5 million or 3.2% from the prior quarter-end, and an increase of $25.5 million or 4.4% from March 31, 2025.

The weighted average cost of deposits for the first quarter of 2026 decreased 7 basis points to 1.22% from 1.29% for the fourth quarter of 2025 and decreased 17 basis points from the 1.39% reported for the same quarter of the previous year. The decrease in the cost of deposits was due to significant growth in demand deposits throughout the year, and the Federal Reserve's three 25 basis point rate cuts in the last four months of 2025.

The Company's total borrowings were $26.2 million at March 31, 2026, a decrease of $0.3 million from the prior quarter-end and from March 31, 2025. At March 31, 2026, the Company had $10.0 million drawn on a correspondent bank line of credit at a rate of 3.85%, and $16.2 million of subordinated notes outstanding at a rate of 3.75%. The weighted average cost on all borrowings for the first quarter of 2026 was 3.88%, resulting in $0.4 million of interest expense on borrowings, an increase of $0.1 million compared to the prior quarter, and equal to the interest expense on borrowings for the first quarter of 2025.

As a result of the favorable shift to demand deposits and the impact of deposit pricing changes, total cost of funds was 1.30% for the first quarter of 2026, 11 basis points better than the 1.41% reported for the previous quarter, and 19 basis points better than the 1.49% reported for the same quarter of the previous year.

The Company's net interest margin improved to 3.97% for the first quarter of 2026, compared to 3.81% in the prior quarter, and improved a significant 36 basis points from the 3.61% reported for the same quarter of last year as a result of steady loan yield improvement and decline in total cost of funds.

The Bank's liquidity position remained strong with a primary liquidity ratio (cash and cash equivalents, deposits held in other banks and unpledged AFS securities as a percentage of total assets) of 14.7% at March 31, 2026, compared to 12.1% at December 31, 2025. As of March 31, 2026, the Bank had available and unused, secured borrowing capacity with the FHLB of $316.9 million, and had available and unused, secured borrowing capacity with the Federal Reserve of $48.1 million. In addition, the Bank had $144.3 million of unused fed funds lines of credit with correspondent banks at March 31, 2026. Available contingent funding sources of $509.3 million remain robust.

Overall uninsured deposits, excluding public agency deposits that are collateralized, are conservatively estimated to be $420.8 million, or 33.5% of total deposit balances as of March 31, 2026. The actual level of uninsured deposits is lower than the percentage stated above, as our knowledgeable bankers have helped clients obtain more than $250,000 of FDIC insurance with vesting structures such as joint accounts, payable upon death accounts, and revocable trust accounts with multiple beneficiaries. In addition, the Bank can offer up to $285 million of FDIC pass-through insurance to clients via the IntraFi network Insured Cash Sweep ("ICS") or Certificate of Deposit Account Registry Service ("CDARS") products.

Shareholders' EquityTotal shareholders' equity was $131.3 million at March 31, 2026, a $3.6 million or 2.8% increase since December 31, 2025, and an increase of $16.2 million or 14.1% over the same period of the prior year. The tax adjusted unrealized loss on securities, which is a component of equity (accumulated other comprehensive income or "AOCI"), was unchanged from $13.9 million at December 31, 2025, and improved $4.3 million or 23.6% from March 31, 2025. The Bank fully expects to receive all principal when the investments mature.

As of March 31, 2026, the Company had repurchased 130,616 shares of common stock at a weighted average cost of $19.80, leaving $2.4 million available for repurchase under the share repurchase program.

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, Santa Maria, San Luis Obispo, Atascadero, and Paso Robles. In December 2025, the Bank opened a lending center in the City of Ventura. 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. The Bank maintains a "5 Star - Superior" rating from Bauer Financial and for fifteen consecutive years, has been recognized for strong financial performance by the Findley Reports. The Bank was rated "Outstanding" by the Federal Deposit Insurance Corporation in 2023 for its performance under the Community Reinvestment Act. The Company was named to the "OTCQX Best 50" list for equal weighted share trading volume and total return in 2024. The Bank was recognized by S&P Global as a Top 100 Small US Community Bank Deposit Franchise as of June 30, 2025. #BankonBetter #OTCQX

American Riviera Bank www.americanriviera.bank805-965-5942Michelle 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.

March 31,

One Year

2026

2025

$ Change

% Change

66,678

30,525

36,153

118

164,958

175,787

(10,829

)

-6

41,450

41,410

1,099,436

994,788

104,648

(12,712

)

(11,859

)

(853

)

1,086,724

982,928

103,795

7,108

7,943

(835

)

-11

5,280

4,528

752

14,193

12,254

1,939

6,786

4,873

4,898

(25

)

-1

25,201

21,725

3,476

1,423,251

1,288,784

134,467

464,816

445,533

19,283

191,756

116,425

75,331

598,427

572,936

25,491

1,254,999

1,134,894

120,105

26,150

26,500

(350

)

-1

974

1,126

(152

)

-13

9,822

11,158

(1,336

)

-12

1,291,945

1,173,678

118,267

66,858

67,914

(1,056

)

-2

78,309

65,334

12,975

(13,861

)

(18,142

)

4,281

131,306

115,106

16,200

1,423,251

1,288,784

134,467

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

66,678

21,395

128,753

28,111

30,525

164,958

169,793

164,459

162,089

175,787

41,450

41,430

41,411

41,392

41,410

1,099,436

1,081,696

1,041,839

1,020,261

994,788

(12,712

)

(12,689

)

(12,689

)

(12,496

)

(11,859

)

1,086,724

1,069,007

1,029,150

1,007,765

982,928

7,108

7,255

7,494

7,773

7,943

5,280

5,584

5,885

6,184

4,528

14,193

14,051

12,489

12,370

12,254

6,786

4,873

4,871

4,883

4,889

4,898

25,201

27,117

21,142

23,086

21,725

1,423,251

1,367,289

1,422,452

1,300,445

1,288,784

464,816

451,721

482,343

447,534

445,533

191,756

168,399

180,930

134,538

116,425

598,427

579,902

597,454

549,404

572,936

1,254,999

1,200,022

1,260,727

1,131,476

1,134,894

26,150

26,500

38,500

26,500

974

1,215

993

1,126

9,822

12,123

11,956

11,865

11,158

1,291,945

1,239,619

1,300,398

1,182,834

1,173,678

66,858

67,263

68,493

67,914

78,309

74,330

68,276

67,645

65,334

(13,861

)

(13,923

)

(14,715

)

(17,948

)

(18,142

)

131,306

127,670

122,054

117,611

115,106

1,423,251

1,367,289

1,422,452

1,300,445

1,288,784

1Q 2026

4Q 2025

3Q 2025

2Q 2025

1Q 2025

Average

26,222

109,112

70,822

21,159

28,207

168,770

166,373

162,709

166,833

176,964

41,436

41,416

41,397

41,414

41,400

1,089,710

1,055,371

1,031,749

1,007,429

988,262

(12,690

)

(12,689

)

(12,626

)

(12,010

)

(11,575

)

1,077,020

1,042,682

1,019,123

995,419

976,687

7,212

7,392

7,666

7,910

8,118

5,467

5,762

6,057

4,636

4,676

14,141

13,762

12,448

12,330

12,183

6,786

4,870

4,877

4,887

4,894

4,904

25,267

21,352

21,981

20,943

21,893

1,377,191

1,419,514

1,353,876

1,282,324

1,281,818

452,958

476,473

465,622

433,652

435,938

156,074

156,271

150,042

120,062

113,411

585,890

621,162

579,637

554,088

568,440

1,194,922

1,253,906

1,195,301

1,107,802

1,117,789

39,039

26,589

26,674

47,231

37,389

974

1,212

1,085

1,092

1,053

11,857

13,149

12,052

10,208

12,364

1,246,792

1,294,856

1,235,112

1,166,333

1,168,595

67,159

68,695

68,413

68,092

68,076

76,468

70,292

67,886

66,288

64,320

(13,228

)

(14,329

)

(17,535

)

(18,389

)

(19,173

)

130,399

124,658

118,764

115,991

113,223

1,377,191

1,419,514

1,353,876

1,282,324

1,281,818

Quarter Ended

March 31,

2026

2025

Change

15,494

13,698

1,400

1,489

-6

112

162

-31

17,006

15,349

3,584

3,865

-7

374

373

3,958

4,238

-7

13,048

11,111

287

-92

-100

13,025

10,750

630

548

571

267

114

1,201

815

5,807

5,398

930

937

-1

2,325

2,037

9,062

8,372

5,164

3,193

1,209

870

3,955

2,323

5,750,168

5,833,247

-1

0.69

0.40

1.16

0.74

12.30

8.39

3.97

3.61

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

15,494

15,437

14,789

14,168

13,698

1,400

1,378

1,340

1,439

1,489

112

962

621

162

17,006

17,777

16,750

15,689

15,349

3,584

4,282

4,315

3,822

3,865

374

254

257

487

373

3,958

4,536

4,572

4,309

4,238

13,048

13,241

12,178

11,380

11,111

194

634

287

(240

)

221

(133

)

13,025

13,481

11,763

10,879

10,750

630

609

631

639

548

571

284

289

247

267

1,201

893

920

886

815

5,807

5,744

5,467

5,250

5,398

930

917

922

929

937

2,325

2,393

2,240

2,072

2,037

9,062

9,054

8,629

8,251

8,372

5,164

5,320

4,054

3,514

3,193

1,209

772

1,125

870

3,955

4,548

2,929

2,644

2,323

5,750,168

5,713,022

5,708,960

5,810,042

5,833,247

0.69

0.80

0.51

0.46

0.40

5,187

5,080

4,469

4,015

3,554

At or for the Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

3,955

4,549

2,929

2,644

2,323

0.69

0.80

0.51

0.46

0.40

1.16

1.27

0.85

0.83

0.74

12.30

14.48

9.75

9.14

8.39

5.77

5.80

5.69

5.64

5.62

1.30

1.41

1.48

1.50

1.49

1.22

1.29

1.45

1.39

3.97

3.81

3.66

3.65

3.61

63.60

64.05

65.89

67.26

70.20

87.60

90.14

82.64

90.17

87.65

37.04

37.64

38.26

39.55

39.26

52.32

51.68

52.61

51.44

49.52

12,712

12,689

12,496

11,859

8,013

8,116

9,803

8,442

4,799

1.16

1.17

1.22

1.19

0.00

7.04

7.37

9.38

8.42

4.87

12.69

12.54

12.56

13.39

13.34

13.82

13.68

13.77

14.59

14.51

11.16

10.55

10.69

11.78

11.55

11.63

11.48

11.49

11.61

14.02

13.93

14.03

14.19

14.17

10.22

9.66

9.78

10.16

9.89

8.91

9.01

8.27

8.70

8.58

131,306

127,670

122,054

117,611

115,106

22.84

22.35

21.38

20.24

19.73

21.99

21.49

20.52

19.40

18.89

24.40

23.93

23.10

22.49

22.00

23.60

23.90

21.99

19.27

19.16

5,750.17

5,713.02

5,708.96

5,810.04

5,833.25

Notes:

(a) Sum of Nonperforming Assets and Other Real Estate Owned, divided by the sum of Total Shareholder Equity and Total Allowance for Credit Losses less Preferred Stock and Intangible Assets.(b) Annualized Operating Expense excluding Provision for Credit Losses minus Annualized Extraordinary Expense, divided by Annualized Interest Income including Loan Fees minus Annualized Interest Expense plus Annualized Non-Interest Income minus Annualized Extraordinary Income, expressed as a percentage.(c) Current period capital ratios are preliminary. (d) Accumulated Other Comprehensive Income (AOCI) is comprised of the tax adjusted unrealized loss on securities and is presented as Other Capital on the Balance Sheet.

SOURCE: American Riviera Bancorp