American Riviera Bank saw a slight rise in its unaudited net income in the second quarter, but the Santa Barbara-based bank is still facing a decreased net income for the year as it prepares for loan losses.

The bank’s unaudited net income in the second quarter of 2020 was $1.56 million, up from $1.51 million the year before, American Riviera announced on July 28. For the first six months of 2020, though, the bank is still 16.4 percent lower in unaudited net income than it was in 2019.

American Riviera attributed the lower net income to loan loss provision. The bank directed almost $1.5 million towards loan loss provision in the first six months of 2020, an increase of more than $1 million from the same period the year before.

At the same time the bank is taking steps to protect itself, it is also trying to help prevent its loan customers from going into default. American Riviera has provided 90-day payment deferrals for $108 million in loans, with options for customers to just pay interest and for customers to pay neither principal or interest.

The bank also made more than 600 federally funded Payment Protection Program loans for small businesses, for a total of $117 million. The average loan was about $194,000, and the loans supported 12,300 local jobs, American Riviera said. As a result of offering the loans, the bank earned $4.2 million in PPP origination fees and saw $397,000 in income during the second quarter.

Other financial markers for the bank also rose. American Riviera’s total loans, excluding PPP loans, increased by $73 million, up 14 percent from the same time last year. Total deposits rose 40 percent from June 30, 2019 to June 30, 2020, and the bank saw what it called a significant amount of new accounts moving from other financial institutions.

“The Bank’s liquidity and capital position provide considerable capacity to lend, and we will continue to build new relationships, provide flexibility to our existing clients and build value for our shareholders despite the pandemic,” said Jeff DeVine, the bank’s president and CEO.