American Riviera Bancorp announced that it has completed a private placement of $18 million in fixed-to-floating rate subordinated notes due March 1, 2032 to certain qualified buyers and accredited investors. The Company intends to use the net proceeds for general corporate purposes, the maintenance of required regulatory capital at the Bank, and to support the Company's and Bank's future growth. The Notes are structured to qualify as Tier 2 capital for the Company for regulatory purposes and will carry a fixed rate of 3.75% until March 1, 2027.

Thereafter, the Notes will pay interest at a floating rate, reset quarterly, equal to the then current three-month SOFR plus 212 basis points. The subordinated notes are redeemable by the Company at its option, in whole or in part, on any interest payment date on or after March 1, 2027, or at any time, in whole or in part, upon certain other specified events prior to the Notes' maturity on March 1, 2032.