American Riviera Bank (OTC Markets: ARBV) (the Bank) announced today that it has completed a capital raise of $8.5 million through the sale of 472,222 shares of common stock at a price of $18.00 per share. The shares of common stock were sold to institutional and select accredited investors as defined in Rule 501(a) of Regulation D of the Securities Act of 1933, as amended (the Securities Act), pursuant to a stock permit issued by the California Department of Business Oversight and an exemption from the Securities Act.
Michelle Martinich, Executive Vice President and Chief Financial Officer, stated, Although the Bank is already well capitalized and profitable, our 2018 growth in Santa Barbara and San Luis Obispo Counties has been significant. This new equity will provide additional cushion in our capital base to support that growth.
The net proceeds of the capital raise will be used for general corporate purposes, including but not limited to, supporting organic growth and expansion opportunities in the Banks Central Coast service area.
Jeff DeVine, President and Chief Executive Officer, stated, We received orders well in excess of the shares offered at a price near our recent market trading range reflecting confidence among the investment community in our Bank.
D.A. Davidson & Co. served as the sole placement agent on this offering and as financial advisor to American Riviera Bank. Duane Morris LLP served as legal counsel to American Riviera Bank and Sheppard Mullin Richter & Hampton LLP served as legal counsel to the placement agent.
This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy shares of the Banks common stock nor shall there be any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
American Riviera Bank 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 at 1033 Anacapa Street in Santa Barbara, 525 San Ysidro Road in Montecito, 5880 Calle Real in Goleta and 1601 Spring Street in Paso Robles. Commercial lending offices are located at 30 East Figueroa Street in Santa Barbara and 1085 Higuera Street in San Luis Obispo. Our residential loan production office is located at 18 East Figueroa Street in Santa Barbara. For eight consecutive years the Bank has been recognized for strong financial performance by the Findley Reports, and received the highest Super Premier rating from Findley for 2017. As of December 31, 2018, the Bank was rated five stars by BauerFinancial.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Banks future financial and operating results, the Banks plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Banks management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. 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. The forward-looking statements in this press release speak only as of the date of the press release, and the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements.
American Riviera Bank