American Riviera Bank Reports Third Quarter Profit

SANTA BARBARA, Calif.--(Business Wire)--
American Riviera Bank (OTCBB:ARBV) today announced its first
quarterly profit and considerable revenue and asset growth.

American Riviera Bank reported revenue of $1.5 million and net
profit of $38 thousand for the quarter ending September 30, 2008
(3Q2008), compared to $1.0 million in revenue and a net loss of $550
thousand in 3Q2007. Revenue for the nine months ending September 2008
was $4.2 million, up 75% from the $2.4 million reported for the same
period last year. The Bank's YTD loss in 2008 of $288 thousand is less
than projected, and considerably lower than the $1.4 million loss
incurred for the same period last year. The Bank has reduced the total
cost of funds to 2.88% for 3Q2008, from 4.25% for 3Q2007, and
maintained net interest margin of 4.29% for 3Q2008 compared to most
recent peer group averages of 3.25%.

"In June, we had our first month of profitability and today we
announce our first full quarter of profitability. The continued
positive trend has been made possible by high quality asset and core
deposit growth," said Jeff DeVine, the Bank's President and CEO.

Total assets grew to $96.3 million, up from $68.8 million at
3Q2007. Loans increased 50% to $79.8 million at 3Q2008, from the $53.3
million reported at 3Q2007. The Bank's loan portfolio continues to
perform well with no delinquent loans, no non-accrual loans and no
loan charge-offs. Loan loss provision for 3Q2008 was $127 thousand,
compared to $133 thousand in 3Q2007. American Riviera Bank's capital
position remains strong with a Tier 1 Leverage ratio of 20% at 3Q2008,
well above the regulatory definition of 5% for well capitalized
institutions.

The Bank's continued focus on gathering core deposits and
expanding relationships resulted in a 46% increase in total deposits
from 3Q2007, reaching $70.2 million at 3Q2008. "It has become
increasingly apparent in these uncertain economic times, that our
existing and new depositors have found comfort in our community
banking approach and strong capital position," said DeVine. "Deposit
growth has been consistent across all product types this year
including demand, savings, money market and certificates of deposit."

Company Profile

American Riviera Bank is a full service community bank, focused on
serving the lending and deposit needs of businesses and consumers in
our community. The Bank was founded in 2006 by over 400 local
shareholders and has one branch located at 1033 Anacapa Street in
downtown Santa Barbara.

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.

American Riviera Bank
Michelle Martinich, 805-730-4992
www.americanrivierabank.com

Copyright Business Wire 2008