Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the
“Company”) today reported net income increased to $2.7 million, or
$0.12 per diluted share, in the first fiscal quarter ended June 30,
2017, compared to $1.7 million, or $0.08 per diluted share, in the
first fiscal quarter one year ago.
“Riverview’s first quarter operating performance
was solid, as we begin to realize the benefits from the MBank
transaction through improved profitability,” stated Pat Sheaffer,
chairman and chief executive officer. “We completed a successful
system conversion during the quarter and we remain on track with
our operating efficiency goals. We are steadily growing the loan
portfolio while focusing on maintaining strong asset quality.”
First Quarter Highlights (at or for the
period ended June 30, 2017)
- Net income grew to $2.7 million, or $0.12 per diluted
share.
- Net interest margin expanded by 35 basis points to 4.09%,
compared to the first quarter a year ago.
- Total loans increased to $797.5 million at June 30, 2017.
- Non-performing assets were 0.27% of total assets.
- Tangible book value per share improved to $3.80.
- Total risk-based capital ratio was 14.41% and Tier 1 leverage
ratio was 9.79%.
- Successfully completed the MBank system conversion.
- Riverview added to the Russell 2000® Index on June 26, 2017.
Income
Statement
Riverview’s net interest income increased $2.6
million, or 33%, to $10.4 million for the first fiscal quarter of
2018 compared to $7.8 million in the first fiscal quarter a year
ago. The increase in net interest income was primarily due to an
increase in average interest earning assets.
The net interest margin for the first fiscal
quarter was 4.09%, an increase of 12 basis points from the linked
quarter and an increase of 35 basis points from the prior year
period. The increase from the linked quarter was primarily due to
the accretion on MBank purchased loans as well as interest
collected on nonaccrual loans. The interest accretion on purchased
loans totaled $184,000 during the first quarter and resulted in a
seven basis point increase in the net interest margin. Net interest
income also included the recognition of $104,000 of nonaccrual
interest income which resulted in a four basis point increase in
the net interest margin.
“Our net interest margin before the accretion
income and nonaccrual interest income increased 24 basis points
compared to the year ago quarter,” said Kevin Lycklama, executive
vice president and chief financial officer. “The increase in our
core net interest margin was primarily due to the growth in our
loan and investment portfolios along with the addition of the MBank
assets. We have also seen an increase in the yields on both our
loan and investment portfolios as our new originations have been at
higher yields than prior quarters.”
Non-interest income increased to $2.7 million in
the first fiscal quarter compared to $2.6 million in the preceding
quarter and $2.5 million in the first quarter a year ago. The year
over year increase was primarily due to an increase in fees and
service charges, interchange revenue, mortgage related income and
higher asset management fees.
Asset management fees increased to $853,000
during the first fiscal quarter of 2018 compared to $730,000 in the
preceding quarter and $822,000 in the same quarter a year ago.
Riverview Trust Company’s (“RTC”) assets under management increased
to $440.5 million at June 30, 2017 compared to $425.9 million three
months earlier and $396.0 million a year earlier. During the
preceding quarter, RTC opened a second office in the Portland
suburb of Lake Oswego, allowing it to expand its footprint and
product offerings in the Portland market.
Non-interest expense increased to $9.2 million
during the first fiscal quarter of 2018 compared to $8.9 million in
the preceding quarter and $7.8 million in the first quarter a year
ago. “The increase was primarily due to the addition of the
operating expenses of MBank, as well as $429,000 in
transaction-related expenses in the first fiscal quarter compared
to $458,000 in the prior linked quarter,” added Lycklama. “Going
forward, we anticipate the remaining transaction-related expenses
to be minimal. We expect to see continued improvements in our
operating ratios, including EPS and efficiency, as we realize the
expected cost savings, efficiencies and revenue growth from this
transaction.”
Balance Sheet
Review
“The year-over-year loan growth is attributed to
both the new loans acquired from MBank, as well as robust organic
loan growth by our seasoned lenders,” said Ron Wysaske, president
and chief operating officer. “We continue to benefit from operating
in the thriving southern Washington and Portland-area markets,
although loan pricing remains a challenge. Loan originations
increased during the quarter to $89.6 million compared to $67.5
million in the prior quarter.”
Total loans increased $18.1 million during the
quarter to $797.5 million at June 30, 2017 compared to $779.4
million at March 31, 2017. Total loans have grown $167.7 million,
or 26.6%, during the past twelve months. The commercial loan
pipeline totaled $58.9 million at the end of the quarter.
Undisbursed construction loans totaled $64.6 million at June 30,
2017, with the majority of the undisbursed construction loans
expected to fund over the next several quarters.
Total deposits were $973.5 million at June 30,
2017, compared to $980.1 million at March 31, 2017. Total deposits
have increased $183.9 million, or 23.3%, during the past twelve
months. Checking account balances increased to 44.1% of total
deposits compared to 42.8% a year ago as the branch network has
continued to focus on customer relationships and growing core
deposits.
Shareholders’ equity was $113.9 million at June
30, 2017 compared to $111.3 million three months earlier and $110.0
million a year earlier. Tangible book value per share was $3.80 at
June 30, 2017 compared to $3.68 at March 31, 2017, and $3.75 at
June 30, 2016. A quarterly cash dividend of $0.0225 per share was
paid on July 25, 2017.
Credit Quality
Riverview’s classified assets totaled $8.8
million at June 30, 2017 compared to $10.3 million three months
earlier. At June 30, 2017, the classified asset to total capital
ratio was 7.5% compared to 9.1% three months earlier.
Non-performing loans were $2.8 million, or 0.35%
of total loans, at June 30, 2017, compared to $2.7 million, or
0.35% of total loans, three months earlier. REO balances were
$298,000 at June 30, 2017, which were unchanged compared to the
preceding quarter. There were no additions to REO during the
quarter.
At June 30, 2017, the allowance for loan losses totaled $10.6
million, representing 1.33% of total loans compared to 1.35% of
total loans at March 31, 2017. Included in the carrying value of
loans are net discounts on the MBank purchased loans which may
reduce the need for an allowance for loan losses on these loans
because they are carried at an amount below the outstanding
principal balance. The remaining net discount on these purchased
loans was $2.8 million at June 30, 2017 compared to $3.0 million in
the prior quarter. Net loan recoveries were $69,000 during the
first fiscal quarter of 2018 compared to $239,000 in the preceding
quarter.
Capital
Riverview continues to maintain capital levels
well in excess of the regulatory requirements to be categorized as
“well capitalized” with a total risk-based capital ratio of 14.41%,
Tier 1 leverage ratio of 9.79% and tangible common equity to
tangible assets ratio of 7.80% at June 30, 2017.
Non-GAAP Financial
Measures
In addition to results presented in accordance
with generally accepted accounting principles (“GAAP”), this press
release contains certain non-GAAP financial measures. We believe
that certain non-GAAP financial measures provide investors with
information useful in understanding the Company’s financial
performance; however, readers of this report are urged to review
these non-GAAP financial measures in conjunction with GAAP results
as reported.
Financial measures that exclude intangible
assets are non-GAAP measures. To provide investors with a broader
understanding of capital adequacy, Riverview provides non-GAAP
financial measures for tangible common equity, along with the GAAP
measure. Tangible common equity is calculated as shareholders’
equity less goodwill and other intangible assets. In addition,
tangible assets are total assets less goodwill and other intangible
assets.
The following table provides a reconciliation of
ending shareholders’ equity (GAAP) to ending tangible shareholders’
equity (non-GAAP), and ending total assets (GAAP) to ending
tangible assets (non-GAAP).
(Dollars in
thousands) |
|
|
|
|
June 30, 2017 |
|
|
|
|
|
|
|
March 31, 2017 |
|
|
|
|
|
|
|
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
|
|
$ |
113,917 |
|
|
|
|
|
|
|
$ |
111,264 |
|
|
|
|
|
|
|
$ |
109,991 |
|
|
Goodwill |
|
|
|
|
27,076 |
|
|
|
|
|
|
|
27,076 |
|
|
|
|
|
|
|
25,572 |
|
|
Core deposit
intangible, net |
|
|
|
|
1,277 |
|
|
|
|
|
|
|
1,335 |
|
|
|
|
|
|
|
- |
|
|
Tangible
shareholders' equity |
|
|
|
|
$ |
85,564 |
|
|
|
|
|
|
|
$ |
82,853 |
|
|
|
|
|
|
|
$ |
84,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
$ |
1,125,161 |
|
|
|
|
|
|
|
$ |
1,133,939 |
|
|
|
|
|
|
|
$ |
932,447 |
|
|
Goodwill |
|
|
|
|
27,076 |
|
|
|
|
|
|
|
27,076 |
|
|
|
|
|
|
|
25,572 |
|
|
Core deposit
intangible, net |
|
|
|
|
1,277 |
|
|
|
|
|
|
|
1,335 |
|
|
|
|
|
|
|
- |
|
|
Tangible
assets |
|
|
|
|
$ |
1,096,808 |
|
|
|
|
|
|
|
$ |
1,105,528 |
|
|
|
|
|
|
|
$ |
906,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About
Riverview
Riverview Bancorp, Inc. (www.riverviewbank.com)
is headquartered in Vancouver, Washington – just north of Portland,
Oregon on the I-5 corridor. With assets of $1.13 billion at June
30, 2017, it is the parent company of the 94-year-old Riverview
Community Bank, as well as Riverview Trust Company. The Bank offers
true community banking services, focusing on providing the highest
quality service and financial products to commercial and retail
customers. There are 19 branches, including 14 in the
Portland-Vancouver area and three lending centers. For the past 4
years, Riverview has been named Best Bank by the readers of The
Vancouver Business Journal, The Columbian and The Gresham Outlook.
“Safe Harbor” statement under the Private
Securities Litigation Reform Act of 1995: This press release
contains forward-looking statements that are subject to risks and
uncertainties, including, but not limited to: expected cost
savings, synergies and other financial benefits from our pending
purchase of certain assets and assumption of certain liabilities of
MBank and Merchants Bancorp pursuant to the Purchase and Assumption
Agreement (the "Agreement") with Merchants Bancorp and its wholly
owned subsidiary MBank (the "transaction") might not be realized
within the expected time frames or at all, and costs or
difficulties relating to integration matters might be greater than
expected; the requisite approval of Merchants Bancorp’s
shareholders and regulatory approvals for the transaction might not
be obtained; the Company’s ability to raise common capital; the
credit risks of lending activities, including changes in the level
and trend of loan delinquencies and write-offs and changes in the
Company’s allowance for loan losses and provision for loan losses
that may be impacted by deterioration in the housing and commercial
real estate markets; changes in general economic conditions, either
nationally or in the Company’s market areas; changes in the levels
of general interest rates, and the relative differences between
short and long term interest rates, deposit interest rates, the
Company’s net interest margin and funding sources; fluctuations in
the demand for loans, the number of unsold homes, land and other
properties and fluctuations in real estate values in the Company’s
market areas; secondary market conditions for loans and the
Company’s ability to sell loans in the secondary market; results of
examinations of us by the Office of Comptroller of the Currency or
other regulatory authorities, including the possibility that any
such regulatory authority may, among other things, require us to
increase the Company’s reserve for loan losses, write-down assets,
change Riverview Community Bank’s regulatory capital position or
affect the Company’s ability to borrow funds or maintain or
increase deposits, which could adversely affect its liquidity and
earnings; legislative or regulatory changes that adversely affect
the Company’s business including changes in regulatory policies and
principles, or the interpretation of regulatory capital or other
rules; the Company’s ability to attract and retain deposits;
further increases in premiums for deposit insurance; the Company’s
ability to control operating costs and expenses; the use of
estimates in determining fair value of certain of the Company’s
assets, which estimates may prove to be incorrect and result in
significant declines in valuation; difficulties in reducing risks
associated with the loans on the Company’s balance sheet; staffing
fluctuations in response to product demand or the implementation of
corporate strategies that affect the Company’s workforce and
potential associated charges; computer systems on which the Company
depends could fail or experience a security breach; the Company’s
ability to retain key members of its senior management team; costs
and effects of litigation, including settlements and judgments; the
Company’s ability to successfully integrate any assets,
liabilities, customers, systems, and management personnel it may in
the future acquire into its operations and the Company’s ability to
realize related revenue synergies and cost savings within expected
time frames and any goodwill charges related thereto; increased
competitive pressures among financial services companies; changes
in consumer spending, borrowing and savings habits; the
availability of resources to address changes in laws, rules, or
regulations or to respond to regulatory actions; the Company’s
ability to pay dividends on its common stock; and interest or
principal payments on its junior subordinated debentures; adverse
changes in the securities markets; inability of key third-party
providers to perform their obligations to us; changes in accounting
policies and practices, as may be adopted by the financial
institution regulatory agencies or the Financial Accounting
Standards Board, including additional guidance and interpretation
on accounting issues and details of the implementation of new
accounting methods; other economic, competitive, governmental,
regulatory, and technological factors affecting the Company’s
operations, pricing, products and services and the other risks
described from time to time in our filings with the
SEC.
Such forward-looking statements may include
projections. Any such projections were not prepared in accordance
with published guidelines of the American Institute of Certified
Public Accountants or the Securities Exchange Commission regarding
projections and forecasts nor have such projections been audited,
examined or otherwise reviewed by independent auditors of the
Company. In addition, such projections are based upon many
estimates and inherently subject to significant economic and
competitive uncertainties and contingencies, many of which are
beyond the control of management of the Company. Accordingly,
actual results may be materially higher or lower than those
projected. The inclusion of such projections herein should not be
regarded as a representation by the Company that the projections
will prove to be correct.
The Company cautions readers not to place undue
reliance on any forward-looking statements. Moreover, you should
treat these statements as speaking only as of the date they are
made and based only on information then actually known to the
Company. The Company does not undertake and specifically disclaims
any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements. These risks could
cause our actual results for fiscal 2018 and beyond to differ
materially from those expressed in any forward-looking statements
by, or on behalf of, us, and could negatively affect the Company’s
operating and stock price performance.
RIVERVIEW
BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data)
(Unaudited) |
|
|
|
June 30, 2017 |
|
|
|
|
March 31, 2017 |
|
|
|
|
June 30, 2016 |
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
(including interest-earning accounts of $14,919, $46,245 |
|
|
|
$ |
34,108 |
|
|
|
|
$ |
64,613 |
|
|
|
|
$ |
50,377 |
|
|
|
and
$36,120) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificate of deposits held for investment |
|
|
|
11,042 |
|
|
|
|
11,042 |
|
|
|
|
16,271 |
|
|
|
Loans
held for sale |
|
|
|
768 |
|
|
|
|
478 |
|
|
|
|
457 |
|
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available
for sale, at estimated fair value |
|
|
|
205,012 |
|
|
|
|
200,214 |
|
|
|
|
163,684 |
|
|
|
Held to
maturity, at amortized cost |
|
|
|
54 |
|
|
|
|
64 |
|
|
|
|
72 |
|
|
|
Loans
receivable (net of allowance for loan losses of $10,597,
$10,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
$9,960) |
|
|
|
786,913 |
|
|
|
|
768,904 |
|
|
|
|
619,854 |
|
|
|
Real
estate owned |
|
|
|
298 |
|
|
|
|
298 |
|
|
|
|
569 |
|
|
|
Prepaid
expenses and other assets |
|
|
|
3,901 |
|
|
|
|
3,815 |
|
|
|
|
3,286 |
|
|
|
Accrued
interest receivable |
|
|
|
3,086 |
|
|
|
|
2,941 |
|
|
|
|
2,451 |
|
|
|
Federal
Home Loan Bank stock, at cost |
|
|
|
1,181 |
|
|
|
|
1,181 |
|
|
|
|
1,060 |
|
|
|
Premises
and equipment, net |
|
|
|
16,041 |
|
|
|
|
16,232 |
|
|
|
|
14,403 |
|
|
|
Deferred
income taxes, net |
|
|
|
6,051 |
|
|
|
|
7,610 |
|
|
|
|
8,141 |
|
|
|
Mortgage
servicing rights, net |
|
|
|
408 |
|
|
|
|
398 |
|
|
|
|
381 |
|
|
|
Goodwill |
|
|
|
27,076 |
|
|
|
|
27,076 |
|
|
|
|
25,572 |
|
|
|
Core
deposit intangible, net |
|
|
|
1,277 |
|
|
|
|
1,335 |
|
|
|
|
- |
|
|
|
Bank
owned life insurance |
|
|
|
27,945 |
|
|
|
|
27,738 |
|
|
|
|
25,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
|
$ |
1,125,161 |
|
|
|
|
$ |
1,133,939 |
|
|
|
|
$ |
932,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
$ |
973,483 |
|
|
|
|
$ |
980,058 |
|
|
|
|
$ |
789,555 |
|
|
|
Accrued
expenses and other liabilities |
|
|
|
8,302 |
|
|
|
|
13,080 |
|
|
|
|
7,229 |
|
|
|
Advance
payments by borrowers for taxes and insurance |
|
|
|
596 |
|
|
|
|
693 |
|
|
|
|
521 |
|
|
|
Junior
subordinated debentures |
|
|
|
26,414 |
|
|
|
|
26,390 |
|
|
|
|
22,681 |
|
|
|
Capital
lease obligations |
|
|
|
2,449 |
|
|
|
|
2,454 |
|
|
|
|
2,470 |
|
|
|
Total
liabilities |
|
|
|
1,011,244 |
|
|
|
|
1,022,675 |
|
|
|
|
822,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serial
preferred stock, $.01 par value; 250,000 authorized, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
issued
and outstanding, none |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
Common
stock, $.01 par value; 50,000,000 authorized, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2017 – 22,527,401 issued and outstanding; |
|
|
|
225 |
|
|
|
|
225 |
|
|
|
|
225 |
|
|
|
March 31,
2017 - 22,510,890 issued and outstanding; |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016 – 22,507,890 issued and outstanding; |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
|
|
64,556 |
|
|
|
|
64,468 |
|
|
|
|
64,421 |
|
|
|
Retained
earnings |
|
|
|
50,482 |
|
|
|
|
48,335 |
|
|
|
|
43,976 |
|
|
|
Unearned
shares issued to employee stock ownership plan |
|
|
|
(52 |
) |
|
|
|
(77 |
) |
|
|
|
(155 |
) |
|
|
Accumulated other comprehensive income (loss) |
|
|
|
(1,294 |
) |
|
|
|
(1,687 |
) |
|
|
|
1,524 |
|
|
|
Total
shareholders’ equity |
|
|
|
113,917 |
|
|
|
|
111,264 |
|
|
|
|
109,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
$ |
1,125,161 |
|
|
|
|
$ |
1,133,939 |
|
|
|
|
$ |
932,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RIVERVIEW
BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
Consolidated
Statements of Income |
|
|
|
|
|
Three Months Ended |
|
(In thousands, except share data)
(Unaudited) |
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
|
INTEREST INCOME: |
|
|
|
|
Interest
and fees on loans receivable |
$ |
9,789 |
$ |
8,655 |
$ |
7,440 |
|
Interest
on investment securities - taxable |
1,133 |
1,115 |
720 |
|
Interest
on investment securities - nontaxable |
14 |
14 |
- |
|
Other
interest and dividends |
87 |
99 |
102 |
|
Total
interest and dividend income |
11,023 |
9,883 |
8,262 |
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
Interest
on deposits |
322 |
314 |
281 |
|
Interest
on borrowings |
268 |
224 |
158 |
|
Total
interest expense |
590 |
538 |
439 |
|
Net interest
income |
10,433 |
9,345 |
7,823 |
|
Recapture of loan
losses |
- |
- |
- |
|
|
|
|
|
|
Net interest income
after recapture of loan losses |
10,433 |
9,345 |
7,823 |
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
Fees and
service charges |
1,407 |
1,362 |
1,323 |
|
Asset
management fees |
853 |
730 |
822 |
|
Net gain
on sale of loans held for sale |
225 |
163 |
139 |
|
Bank
owned life insurance income |
207 |
194 |
191 |
|
Other,
net |
46 |
137 |
39 |
|
Total
non-interest income |
2,738 |
2,586 |
2,514 |
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
Salaries
and employee benefits |
5,422 |
5,335 |
4,640 |
|
Occupancy
and depreciation |
1,346 |
1,299 |
1,137 |
|
Data
processing |
616 |
578 |
495 |
|
Amortization of core deposit intangible |
58 |
27 |
- |
|
Advertising and marketing expense |
234 |
146 |
193 |
|
FDIC
insurance premium |
145 |
83 |
122 |
|
State and
local taxes |
154 |
154 |
139 |
|
Telecommunications |
104 |
93 |
73 |
|
Professional fees |
415 |
562 |
258 |
|
Real
estate owned expenses |
2 |
2 |
15 |
|
Other |
678 |
639 |
743 |
|
Total
non-interest expense |
9,174 |
8,918 |
7,815 |
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
3,997 |
3,013 |
2,522 |
|
PROVISION FOR INCOME
TAXES |
1,343 |
979 |
825 |
|
NET INCOME |
$ |
2,654 |
$ |
2,034 |
$ |
1,697 |
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
Basic |
$ |
0.12 |
$ |
0.09 |
$ |
0.08 |
|
Diluted |
$ |
0.12 |
$ |
0.09 |
$ |
0.08 |
|
Weighted average number
of common shares outstanding: |
|
|
|
|
Basic |
22,504,852 |
22,489,336 |
22,467,861 |
|
Diluted |
22,589,440 |
22,585,976 |
22,514,235 |
|
|
|
|
|
|
(Dollars
in thousands) |
|
|
At or for the three months ended |
|
|
|
|
|
June 30, 2017 |
|
|
|
March 31, 2017 |
|
|
|
June 30, 2016 |
|
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest–earning assets |
|
|
$ |
1,023,196 |
|
|
|
$ |
955,957 |
|
|
|
$ |
839,427 |
|
|
Average
interest-bearing liabilities |
|
|
745,172 |
|
|
|
710,266 |
|
|
|
625,624 |
|
|
Net average earning
assets |
|
|
278,024 |
|
|
|
245,691 |
|
|
|
213,803 |
|
|
Average loans |
|
|
786,317 |
|
|
|
716,452 |
|
|
|
632,967 |
|
|
Average deposits |
|
|
961,421 |
|
|
|
894,284 |
|
|
|
782,827 |
|
|
Average equity |
|
|
113,661 |
|
|
|
111,054 |
|
|
|
109,809 |
|
|
Average tangible equity
(non-GAAP) |
|
|
85,278 |
|
|
|
85,450 |
|
|
|
84,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
|
June 30, 2017 |
|
|
|
March 31, 2017 |
|
|
|
June 30, 2016 |
|
|
Non-performing
loans |
|
|
$ |
2,792 |
|
|
|
$ |
2,749 |
|
|
|
$ |
2,356 |
|
|
Non-performing loans to
total loans |
|
|
0.35% |
|
|
|
0.35% |
|
|
|
0.37% |
|
|
Real estate/repossessed
assets owned |
|
|
$ |
298 |
|
|
|
$ |
298 |
|
|
|
$ |
569 |
|
|
Non-performing
assets |
|
|
$ |
3,090 |
|
|
|
$ |
3,047 |
|
|
|
$ |
2,925 |
|
|
Non-performing assets
to total assets |
|
|
0.27% |
|
|
|
0.27% |
|
|
|
0.31% |
|
|
Net loan recoveries in
the quarter |
|
|
$ |
(69) |
|
|
|
$ |
(239) |
|
|
|
$ |
(75) |
|
|
Net recoveries in the
quarter/average net loans |
|
|
(0.04)% |
|
|
|
(0.14)% |
|
|
|
(0.05)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
|
$ |
10,597 |
|
|
|
$ |
10,528 |
|
|
|
$ |
9,960 |
|
|
Average
interest-earning assets to average |
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
|
137.31% |
|
|
|
134.59% |
|
|
|
134.17% |
|
|
Allowance for loan
losses to |
|
|
|
|
|
|
|
|
|
|
|
|
|
non-performing loans |
|
|
379.55% |
|
|
|
382.98% |
|
|
|
422.75% |
|
|
Allowance for loan
losses to total loans |
|
|
1.33% |
|
|
|
1.35% |
|
|
|
1.58% |
|
|
Shareholders’ equity to
assets |
|
|
10.12% |
|
|
|
9.81% |
|
|
|
11.80% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk
weighted assets) |
|
|
14.41% |
|
|
|
14.06% |
|
|
|
16.26% |
|
|
Tier 1 capital (to risk
weighted assets) |
|
|
13.16% |
|
|
|
12.81% |
|
|
|
15.01% |
|
|
Common equity tier 1
(to risk weighted assets) |
|
|
13.16% |
|
|
|
12.81% |
|
|
|
15.01% |
|
|
Tier 1 capital (to
average tangible assets) |
|
|
9.79% |
|
|
|
10.21% |
|
|
|
11.16% |
|
|
Tangible common equity
(to average tangible assets) |
|
|
7.80% |
|
|
|
7.49% |
|
|
|
9.31% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
MIX |
|
|
June 30, 2017 |
|
|
|
March 31, 2017 |
|
|
|
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
|
|
$ |
171,360 |
|
|
|
$ |
171,152 |
|
|
|
$ |
151,339 |
|
|
Regular savings |
|
|
126,704 |
|
|
|
126,370 |
|
|
|
98,808 |
|
|
Money market deposit
accounts |
|
|
274,537 |
|
|
|
289,998 |
|
|
|
237,936 |
|
|
Non-interest
checking |
|
|
258,223 |
|
|
|
242,738 |
|
|
|
186,451 |
|
|
Certificates of
deposit |
|
|
142,659 |
|
|
|
149,800 |
|
|
|
115,021 |
|
|
Total deposits |
|
|
$ |
973,483 |
|
|
|
$ |
980,058 |
|
|
|
$ |
789,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
Commercial |
|
|
|
Commercial |
|
|
Real Estate |
|
|
Real Estate |
|
|
& Construction |
|
|
|
Business |
|
|
Mortgage |
|
|
Construction |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
|
(Dollars in thousands) |
Commercial
business |
|
|
$ |
125,732 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ 125,732 |
Commercial
construction |
|
|
- |
|
|
- |
|
|
28,082 |
|
|
28,082 |
Office buildings |
|
|
- |
|
|
130,514 |
|
|
- |
|
|
130,514 |
Warehouse/industrial |
|
|
- |
|
|
77,895 |
|
|
- |
|
|
77,895 |
Retail/shopping
centers/strip malls |
|
|
- |
|
|
70,300 |
|
|
- |
|
|
70,300 |
Assisted living
facilities |
|
|
- |
|
|
4,580 |
|
|
- |
|
|
4,580 |
Single purpose
facilities |
|
|
- |
|
|
168,542 |
|
|
- |
|
|
168,542 |
Land |
|
|
- |
|
|
15,340 |
|
|
- |
|
|
15,340 |
Multi-family |
|
|
- |
|
|
46,189 |
|
|
- |
|
|
46,189 |
One-to-four family
construction |
|
|
- |
|
|
- |
|
|
15,104 |
|
|
15,104 |
Total |
|
|
$ |
125,732 |
|
|
$ |
513,360 |
|
|
$ |
43,186 |
|
|
$ |
682,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
$ |
107,371 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
107,371 |
Commercial
construction |
|
|
- |
|
|
- |
|
|
27,050 |
|
|
27,050 |
Office buildings |
|
|
- |
|
|
121,983 |
|
|
- |
|
|
121,983 |
Warehouse/industrial |
|
|
- |
|
|
74,671 |
|
|
- |
|
|
74,671 |
Retail/shopping
centers/strip malls |
|
|
- |
|
|
78,757 |
|
|
- |
|
|
78,757 |
Assisted living
facilities |
|
|
- |
|
|
3,686 |
|
|
- |
|
|
3,686 |
Single purpose
facilities |
|
|
- |
|
|
167,974 |
|
|
- |
|
|
167,974 |
Land |
|
|
- |
|
|
15,875 |
|
|
- |
|
|
15,875 |
Multi-family |
|
|
- |
|
|
43,715 |
|
|
- |
|
|
43,715 |
One-to-four family
construction |
|
|
- |
|
|
- |
|
|
19,107 |
|
|
19,107 |
Total |
|
|
$ |
107,371 |
|
|
$ |
506,661 |
|
|
$ |
46,157 |
|
|
$ |
660,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN
MIX |
|
|
June 30, 2017 |
|
|
March 31, 2017 |
|
|
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands) |
|
|
|
Commercial and
construction |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
|
$ |
125,732 |
|
|
$ |
107,371 |
|
|
$ |
61,696 |
|
|
|
Other
real estate mortgage |
|
|
513,360 |
|
|
506,661 |
|
|
411,539 |
|
|
|
Real
estate construction |
|
|
43,186 |
|
|
46,157 |
|
|
34,558 |
|
|
|
Total
commercial and construction |
|
|
682,278 |
|
|
660,189 |
|
|
507,793 |
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
Real
estate one-to-four family |
|
|
91,898 |
|
|
92,865 |
|
|
86,515 |
|
|
|
Other
installment |
|
|
23,334 |
|
|
26,378 |
|
|
35,506 |
|
|
|
Total
consumer |
|
|
115,232 |
|
|
119,243 |
|
|
122,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
797,510 |
|
|
779,432 |
|
|
629,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
|
10,597 |
|
|
10,528 |
|
|
9,960 |
|
|
|
Loans
receivable, net |
|
|
$ |
786,913 |
|
|
$ |
768,904 |
|
|
$ |
619,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
Southwest |
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
Oregon |
|
|
Washington |
|
|
Washington |
|
|
Other |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017 |
|
(Dollars in thousands) |
|
|
Non-performing assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
$ |
- |
|
|
$ |
292 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
292 |
|
|
|
Commercial real estate |
|
|
1,111 |
|
|
|
212 |
|
|
|
- |
|
|
|
- |
|
|
|
1,323 |
|
|
|
Land |
|
|
791 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
791 |
|
|
|
Consumer |
|
|
- |
|
|
|
277 |
|
|
|
- |
|
|
|
109 |
|
|
|
386 |
|
|
|
Total non-performing loans |
|
|
1,902 |
|
|
|
781 |
|
|
|
- |
|
|
|
109 |
|
|
|
2,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REO |
|
|
- |
|
|
|
- |
|
|
|
298 |
|
|
|
- |
|
|
|
298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
|
$ |
1,902 |
|
|
$ |
781 |
|
|
$ |
298 |
|
|
$ |
109 |
|
|
$ |
3,090 |
|
|
|
|
|
|
|
|
|
|
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DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION
LOANS |
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Northwest |
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Other |
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Southwest |
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Oregon |
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Oregon |
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Washington |
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Total |
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June 30, 2017 |
|
(Dollars in thousands) |
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Land
development |
|
$ |
1,763 |
|
|
$ |
929 |
|
|
$ |
12,648 |
|
|
$ |
15,340 |
|
|
|
|
|
|
Speculative
construction |
|
|
947 |
|
|
|
321 |
|
|
|
10,795 |
|
|
|
12,063 |
|
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Total land
development and speculative construction |
|
$ |
2,710 |
|
|
$ |
1,250 |
|
|
$ |
23,443 |
|
|
$ |
27,403 |
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At or for the three months ended |
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SELECTED OPERATING
DATA |
June 30, 2017 |
March 31, 2017 |
June 30, 2016 |
|
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Efficiency ratio
(4) |
69.65% |
74.75% |
75.60% |
|
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Coverage ratio (6) |
113.72% |
104.79% |
100.10% |
|
|
Return on average
assets (1) |
0.96% |
0.79% |
0.74% |
|
|
Return on average
equity (1) |
9.37% |
7.43% |
6.20% |
|
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NET INTEREST
SPREAD |
|
|
|
|
|
Yield on loans |
4.99% |
4.90% |
4.71% |
|
|
Yield on investment
securities |
2.21% |
2.23% |
1.85% |
|
|
Total yield on
interest-earning assets |
4.32% |
4.20% |
3.95% |
|
|
|
|
|
|
|
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Cost of
interest-bearing deposits |
0.18% |
0.19% |
0.19% |
|
|
Cost of FHLB advances
and other borrowings |
3.69% |
3.19% |
2.52% |
|
|
Total cost of
interest-bearing liabilities |
0.32% |
0.31% |
0.28% |
|
|
|
|
|
|
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|
Spread (7) |
4.00% |
3.89% |
3.67% |
|
|
Net interest
margin |
4.09% |
3.97% |
3.74% |
|
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PER SHARE DATA |
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|
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Basic earnings per
share (2) |
$ |
|
|
0.12 |
$ |
|
0.09 |
$ |
0.08 |
|
|
Diluted earnings per
share (3) |
0.12 |
0.09 |
0.08 |
|
|
Book value per share
(5) |
5.06 |
4.94 |
4.89 |
|
|
Tangible book value per
share (5) (non-GAAP) |
3.80 |
3.68 |
3.75 |
|
|
Market price per
share: |
|
|
|
|
|
High for the
period |
$ |
|
|
7.47 |
$ |
|
7.90 |
$ |
4.89 |
|
|
Low for the
period |
6.51 |
6.87 |
4.30 |
|
|
Close for period
end |
6.64 |
7.15 |
4.73 |
|
|
Cash dividends declared
per share |
0.0225 |
0.0200 |
0.0200 |
|
|
|
|
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|
Average number of
shares outstanding: |
|
|
|
|
|
Basic (2) |
22,504,852 |
22,489,336 |
22,467,861 |
|
|
Diluted (3) |
22,589,440 |
22,585,976 |
22,514,235 |
|
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(1) Amounts for the quarterly periods are annualized. (2)
Amounts exclude ESOP shares not committed to be released. (3)
Amounts exclude ESOP shares not committed to be released and
include common stock equivalents. (4) Non-interest expense divided
by net interest income and non-interest income. (5) Amounts
calculated based on shareholders’ equity and include ESOP shares
not committed to be released. (6) Net interest income divided by
non-interest expense. (7) Yield on interest-earning assets less
cost of funds on interest-bearing liabilities.
Contacts:
Pat Sheaffer or Kevin Lycklama
Riverview Bancorp, Inc. 360-693-6650
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