RAY MON D JAME S E ME RG IN G BAN K SY MPOSIUM S E P T E M B E R - PowerPoint PPT Presentation

RAY MON D JAME S E ME RG IN G BAN K SY MPOSIUM S E P T E M B E R 2 0 1 9 P R I V A T E & C O N F I D E N T I A L

Bank Profile Company Overview Financial Snapshot  American Riviera Bank was founded in 2006 YTD For the Year Ended: 6/30/2019 12/31/2018 12/31/2017  Headquartered in Santa Barbara, CA Balance Sheet Total Assets ($MM) $ 662 $ 616 $ 515  Three full-service branches with lending centers: Santa Total Loans ($MM) $ 542 $ 508 $ 414 Barbara, San Luis Obispo and Paso Robles Total Deposits ($MM) $ 565 $ 513 $ 449  Two full-service branches: Montecito and Goleta Loans / Deposits 95.9% 99.0% 92.3% Tangible Common Equity ($MM) $ 67.4 $ 55.8 $ 49.1  Directors and executive officers own ~19% of the Tangible Book Value Per Share $ 13.41 $ 12.51 $ 11.16 Company’s common stock Capital Tangible Common Equity / Tangible Assets 10.28% 9.13% 9.64% Leverage Ratio 10.48% 9.21% 9.54% Risk Based Capital Ratio 12.61% 11.36% 12.21% Net Income ($MM) $ 3.3 $ 5.9 $ 3.5 Earnings Per Share (EPS) $ 0.65 $ 1.32 $ 0.80 Profitability Return on Average Assets (ROAA) 1.07% 1.03% 0.73% Return on Average TCE (ROATCE) 10.86% 11.34% 7.63% Net Interest Margin 4.34% 4.51% 4.61% Cost of Deposits 0.67% 0.38% 0.23% Efficiency Ratio 65.6% 62.8% 61.5% Branch Branch & Lending Center Source: Unaudited company information, call reports and earnings releases, as of or for the year ended 6/30/2019 Note: All dollars in millions 2 Note: Tangible common equity equals total shareholders' equity less goodwill, intangible assets, and accumulated other comprehensive income

History of the Bank 2016 2006 2010 2018 2019 2012 2014 $8.5 Million Common Stock Offering Completed March 2019 Goleta Acquired The Bank of 5880 Calle Real Santa Barbara (“BSB”) Goleta, CA 93117 Opened in January 2013 Assets: $177 million** Jeff DeVine joins Acquired through merger with BSB American Riviera as Completed acquisition in January 2016 President & CEO Deposits: $46 million* San Luis Obispo August 21, 2008 1085 Higuera St. San Luis Obispo, CA 93401 Branch opened in May 2019 LPO opened in December 2018 Santa Barbara 1033 Anacapa St. Deposits: $3 million* Santa Barbara, CA 93101 Opened in July 2006 Montecito Paso Robles 525 San Ysidro Rd. 1601 Spring St. Deposits: $384 million* Montecito, CA 93108 Paso Robles, CA 93446 Opened in April 2013 Opened in February 2018 Deposits: $59 million* Deposits: $66 million* *Unaudited company information as of 6/30/2019. Deposits do not include brokered deposits 3 **BSB call report for the quarter ended 12/31/2015, which is the quarter-end prior to acquisition

Track Record of Organic and Acquisitive Growth Gross Loans ($MM) $600  6.6% loan growth in first 6 months $542 $508 Acquisition of The Bank of of 2019 $500 Santa Barbara $414 ($141MM Gross Loans*) $400 $356  Loan / deposit ratio of 95.9% $300 $212 $165 $200 $142 $128 $108 $106 $94 $87 $100 $- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD Total Deposits ($MM) $565 $600  10.0% deposit growth in first 6 $513 Acquisition of The Bank of months of 2019 $500 Santa Barbara $449 ($159MM Total Deposits*) $392 $400 $300 $219 $195 $200 $153 $142 $114 $109 $106 $85 $100 $- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD Source: Unaudited company information, call reports as of 6/30/2019 4 *BSB call report for the quarter ended 12/31/2015, which is the quarter-end prior to acquisition

Expansion into San Luis Obispo County Executing on growth initiatives and making an investment in San Luis Obispo County – this represents a significant opportunity for the Company. These locations have been designed with the ability to deliver all our services to these communities. Paso Robles – Full-Service Branch and Lending Center  Opened a full-service branch in February 2018  Full service Lending Office including Commercial and Mortgage services. Staff have a long history of relationship banking in the Paso Robles market. The Commercial team was formerly at a local bank.  Team of bankers with deep connections in the community of business owners in Paso Robles San Luis Obispo – Full-Service Branch and Lending Center  Opened a loan production office in December 2018. Currently finishing renovations of permanent LPO space. Lending office includes Commercial, Mortgage and SBA services. SBA lending will cover the entire county, including the city of Paso Robles.  Open a full-service branch in May 2019 5

Common Stock Offering Successfully completed an $8.5 million Common Stock offering in March 2019. Deal Details  Raised at market price of $18/share  Approximately 75% from 5 institutional investors and remaining 25% for local investors in SLO County Purpose  Support organic growth in Santa Barbara and de novo branch expansion into San Luis Obispo County. Inclusion of influential local investors to allow community involvement in our expansion.  Ensure adequate capital to support strategic growth plans through 2021 Capital Ratios – June 30, 2019  10.48% Tier 1 Leverage Ratio  11.56% Common Equity Tier 1 and Tier 1 Capital Ratios  12.61% Total Capital Ratio 6 Source> Unaudited company information, call reports as of 6/30/2019

Santa Barbara County Economic Overview and Demographic Trends Total Deposits ($B) – Santa Barbara County  Thriving local economy with meaningful job growth in tourism, $15.0 5 Year CAGR: 5.3% professional services, and healthcare sectors $14.0 $12.7 $13.0 $11.9 $12.3 Home to UC Santa Barbara, which ranks as the 8 th best public  $12.0 $11.4 university in the United States and employs over 11,000 $11.0 people (1) $10.3 $10.1 $9.9 $9.8 $9.8 $10.0 $9.6 $8.8 $9.1 $9.0  Santa Barbara’s population has grown 6.9% since 2010 and is $9.0 expected to grow 3.8% through 2024 (2) $8.0 $7.0  Median household incomes for the cities of Santa Barbara and Montecito are $73,532 and $138,810, which are 16% and 120% $6.0 higher than the national average, respectively (2) $5.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018  Major employers in Santa Barbara include: Lockheed Martin, Raytheon, Santa Barbara Education System, UC Santa Barbara, and the City of Santa Barbara (3)  The median home price in the city of Santa Barbara is $1.2 million, and is projected to increase 4.0% over the next year (4) Note: All dollars in billions, unless noted otherwise. All information is for Santa Barbara County, unless noted otherwise (1) UCSB Administrative Services (2) S&P Global Market Intelligence (3) Pacific Coast Business Times 7 (4) Zillow

San Luis Obispo County Economic Overview and Demographic Trends Total Deposits ($B) – San Luis Obispo County  Diverse region characterized by agricultural and ranching $8.0 5 Year CAGR: 4.1% operations, a robust wine industry, and small-to-mid sized businesses $7.0 $6.4 $6.5 $5.9 $6.1  Home to nationally-ranked California Polytechnic State $6.0 $5.6 $4.9 $5.0 $5.1 $5.2 $5.3 University, which is comprised of approximately 22,000 students and employs over 3,100 faculty and staff (1) $5.0 $4.5 $4.6 $4.6  San Luis Obispo’s population has grown 5.3% since 2010 and is $4.0 expected to grow 3.3% through 2024 (2) $3.0  Median household income for San Luis Obispo is $76,406, which is 21% higher than the national average (2) $2.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018  Low unemployment rate of 2.7%, compared to the national average of 3.7% (2)  The median home price in the city of San Luis Obispo is $730k, and is projected to increase 7.7% over the next year (3) Note: All dollars in billions, unless noted otherwise. All information is for San Luis Obispo County, unless noted otherwise (1) Cal Poly, San Luis Obispo Quick Facts (2) S&P Global Market Intelligence 8 (3) Zillow