American Riviera Bank (OTCPK:ARBV) (ARBV) entered into a definitive agreement to acquire The Bank of Santa Barbara for $15.4 million in stock on July 14, 2015. Under the deal, shareholders of The Bank of Santa Barbara are expected to receive a total of 1.59 million shares of American Riviera Bank common stock, equating to an exchange ratio of 0.8546 shares of ARBV for each common share of The Bank of Santa Barbara. As a result of the deal, ARBV will own 62% stake and The Bank of Santa Barbara will own 38% stake in the combined bank.

Under the terms of the agreement, Jeff DeVine, President and Chief Executive Officer of American Riviera Bank, will continue in his role as President and Chief Executive Officer and Joanne Funari, The Bank of Santa Barbara's Chief Operating Officer, will continue in her role as Executive Vice President and Chief Operating Officer of the combined bank. The new Board of Directors will be comprised of representatives from both Boards. Lawrence Koppelman, the current Board Chair of American Riviera Bank, will continue in his role. The transaction has been unanimously approved by the Boards of Directors of both banks. The merger is expected to close in the fourth quarter of 2015 and is subject to the closing conditions in the definitive agreement, including approval of regulatory agencies and the shareholders of both banks. The merger is expected to be accretive to earnings in 2016 and beyond. As of October 27, 2015, American Riviera Bank shareholders approved the deal.

Keefe, Bruyette, & Woods, Inc. acted as the financial advisor and Arthur A. Coren of Horgan Rosen Beckham & Coren LLP acted as the legal advisor for American Riviera Bank. D.A. Davidson & Co. acted as the financial advisor and Sheppard, Mullin, Richter & Hampton LLP acted as the legal advisor for The Bank of Santa Barbara. Jennifer Goddard of The Goddard Company acted as the PR advisor for American Riviera Bank in the deal.

American Riviera Bank (OTCPK:ARBV) (ARBV) completed the acquisition of The Bank of Santa Barbara on January 1, 2016. Four former members of The Bank of Santa Barbara Board of Directors, David Mokros, Leonard Himelsein, Julie McGovern and Richard Scheinberg will join the American Riviera's Board of Directors.