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ARB Receives an "Outstanding" Rating in Most Recent CRA Evaluation
ARB Receives an "Outstanding" Rating in Most Recent CRA Evaluation
SANTA BARBARA—American Riviera Bank (ARBV) received a rating of “Outstanding” from the Federal Deposit Insurance Corporation (FDIC) in its most recent Community Reinvestment Act (CRA) Performance Evaluation, which covers the time period from January 2020 to April 2023.
This rating reflects the bank’s strong lending performance and its commitment to supporting community development initiatives throughout the Santa Barbara and San Luis Obispo counties it serves. A bank that receives this rating has an outstanding record of helping to meet the credit needs of its community, including low- and moderate-income neighborhoods.
Other factors that contributed to the bank’s Outstanding rating include its ability to demonstrate excellent responsiveness in serving community needs through: community development loans, and certain CRA-qualified volunteer efforts, investments and donations.
“We are honored to have received the highest possible rating by the FDIC in recognition of our business lending expertise and investment in and support of the local community,”
Jeff DeVine, President and CEO
According to the CRA Performance Evaluation issued by the FDIC, American Riviera Bank originated over $30 million in community development loans in 2022 alone. During the review period, the bank originated 690 of its 707 community development loans, totaling $171.3 million, in 2020 and 2021 as part of the SBA Paycheck Protection Program (PPP) in response to the coronavirus pandemic.
The bank also made over $300,000 in CRA-qualified donations during the review period, almost one-fourth of the bank’s total donations during that time, double the amount of eligible donations reported during the prior review period. The bank maintains a stated goal of donating 3% of net profits to local nonprofits and organizations, including community development organizations. In addition, members of the bank’s management, board of directors, and employees clocked over 2,350 hours of community development services targeted to affordable housing, economic development, revitalization of designated disaster areas, and/or services for low- and moderate-income individuals, despite multiple government-mandated stay-at-home orders prompted by the COVID-19 pandemic in the first two years of the review period.
The bank is dedicated to serving the business community, leveraging its expertise to originate 125 small business loans in 2022 totaling over $44 million in Santa Barbara County alone, significantly outperforming peers with more than 50 percent of those loans to businesses with $1 million or less in gross annual revenues. The bank also originated 105 small business loans totaling over $38 million in 2022 in San Luis Obispo County, with more than 53 percent of small business loans originated to businesses with $1 million or less in gross annual revenues. In addition, in 2021, the bank originated more small business loans to small businesses with $1 million or less in gross annual revenues than any other lender in San Luis Obispo County.
As our designated CRA Officer, I know firsthand how committed American Riviera Bank is in meeting the credit needs of our local communities. We are proud to support activities that promote economic development, affordable housing, and community stabilization in low- and moderate-income communities throughout our footprint.”
Laurel Sykes, Executive Vice President and Chief Risk Officer
The CRA Performance Evaluation also notes that the bank became a preferred Small Business Administration (SBA) lender in March 2017. American Riviera Bank has continued to maintain its position as the #1 market share leader in SBA 7(a) loans in the Santa Barbara and San Luis Obispo counties even prior to the launch of the PPP loan program.
Established by Congress in 1977, the CRA encourages banks to meet the credit needs of all segments of the communities where and with whom they do business, including low- and moderate-income (LMI) populations and individuals. The “Outstanding” rating is consistent with the Bank’s prior rating in 2020; which was the first time the Bank was evaluated under the “Intermediate Small Bank” examination procedures. The exam criteria includes components for both lending activities, and community development activities, which are defined as activities with a primary purpose of
- Supporting affordable housing for low- and moderate-income individuals;
- Targeting community services toward low- and moderate-income individuals;
- Promoting economic development by financing small businesses or farms; or
- Providing activities that revitalize or stabilize low- and moderate-income geographies, designated disaster areas, or distressed or underserved nonmetropolitan middle-income geographies.
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 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 thirteen 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 has also received consecutive “Outstanding” ratings by the Federal Deposit Insurance Corporation for its performance under the Community Reinvestment Act.