Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the
“Company”) today reported net income of $1.4 million, or $0.06 per
diluted share, in the fourth fiscal quarter ended March 31, 2016.
This compares to $1.7 million, or $0.08 per diluted share, in the
preceding quarter and $1.5 million, or $0.07 per diluted share, in
the fourth fiscal quarter a year ago.
Net income increased 42% for fiscal year 2016 to
$6.4 million, or $0.28 per diluted share, compared to $4.5 million,
or $0.20 per diluted share, in fiscal 2015.
“Solid profitability, strong capital, improving
asset quality and strong loan and deposit growth were the
highlights of our fiscal 2016 financial results,” said Pat
Sheaffer, chairman and chief executive officer. “The strength of
the economy in the Portland-Vancouver marketplace continues to
sustain and build our community banking franchise with strong
on-going demand for our high-service approach to lending and
savings programs. Our focus in the coming fiscal year remains on
the local markets and expanding our franchise. We will continue to
look for local opportunities to grow in the Portland market
area.”
Fourth Quarter Highlights (at or for the
period ended March 31, 2016)
- Net income was $1.4 million, or $0.06 per diluted share.
- Net interest margin was 3.67% compared to 3.69% in the
preceding quarter.
- Total loans increased $14.1 million during the quarter and
$45.0 million year-over-year to $624.8 million.
- Total deposits increased $32.2 million during the quarter and
$59.0 million year-over-year to $779.8 million.
- Classified assets decreased to $6.8 million, or 6.4% of total
capital.
- Non-performing assets declined to 0.36% of total assets.
- Total risk-based capital ratio was 16.07% and Tier 1 leverage
ratio was 11.18%.
- Increased quarterly cash dividend to $0.02 per share,
generating a current dividend yield of 1.8%.
Balance Sheet Review
“Strong economic growth in our primary market
area continues to fuel solid demand for loans primarily in the
commercial real estate sector,” said Ron Wysaske, president and
chief operating officer. “Our loan pipeline has remained robust as
our lenders continue expanding relationships with businesses
throughout the Portland metro area.” At March 31, 2016, the loan
pipeline totaled $65.6 million.
Total loans increased $14.1 million, or 2.3%
(9.3% annualized), during the quarter and increased $45.0 million,
or 7.8%, during fiscal year 2016.
Organic loan originations totaled $69.1 million
during the fourth quarter compared to $60.7 million in the
preceding quarter. Total undisbursed construction loans increased
to $44.3 million at March 31, 2016, primarily as a result of $15.4
million in new commercial construction loan originations during the
quarter. The majority of these undisbursed construction loans are
expected to fund during the next fiscal year.
Total deposits increased $32.2 million to $779.8
million at March 31, 2016 compared to $747.6 million at December
31, 2015. Average deposit balances increased $6.4 million during
the quarter and were $48.3 million higher than the fourth quarter a
year ago. The deposit mix improved during the quarter as a result
of the Company’s continued focus on growing its core customer
deposits balances. At March 31, 2016, checking account balances
represented 41.5% of total deposits compared to 37.1% a year
ago.
At March 31, 2016, Riverview’s shareholders’
equity was $108.3 million compared to $106.0 million at December
31, 2015. Tangible book value per share improved to $3.66 at March
31, 2016 compared to $3.56 at December 31, 2015. A quarterly cash
dividend of $0.02 per share was paid on April 25, 2016, generating
a current yield of 1.8% based on the recent stock price.
Income Statement
“Our core profitability continues to build
year-over-year, reflecting our increased revenue growth with
contributions from both the loan portfolio and non-interest
income,” said Wysaske. “Core earnings (defined as earnings before
taxes and provision for loan losses) increased 78%, or $3.8
million, during the year compared to fiscal year 2015 results.” Net
interest income for the fourth fiscal quarter was $7.4 million
compared to $7.5 million in the preceding quarter and $6.9 million
in the fourth fiscal quarter a year ago. For fiscal 2016,
Riverview’s net interest income increased 9% to $29.2 million
compared to $26.7 million in fiscal 2015.
The fourth quarter net interest margin
contracted slightly to 3.67% compared to 3.69% in the preceding
quarter and 3.71% in the fourth quarter a year ago. “The modest
decrease in the net interest margin was primarily the result of an
increase in the Company’s excess cash balances as a result of the
significant growth in deposit balances during the quarter as well
as the continued pressure on loan pricing,” noted Kevin Lycklama,
executive vice president and chief financial officer. “However, our
net interest margin improved year-over-year to 3.67% in fiscal
2016, from 3.59% in fiscal 2015, as we increased our
loan-to-deposit ratio during fiscal 2016.”
Non-interest income was $2.2 million in the
fourth quarter compared to $2.4 million in the preceding quarter
and $2.2 million in the fourth quarter one year ago. Fees and
service charges decreased $206,000 during the fourth quarter
primarily due to a decrease of $213,000 in prepayment penalties on
loan payoffs. For fiscal 2016, non-interest income increased to
$9.4 million compared to $8.9 million for fiscal 2015.
Asset management fees increased to $757,000
during the fourth fiscal quarter compared to $727,000 in the fourth
quarter a year ago. For fiscal year 2016, asset management fees
increased to $3.2 million compared to $3.0 million in fiscal 2015.
Riverview Asset Management and Trust Company’s assets under
management were $389.1 million at March 31, 2016 compared to $409.3
million a year ago.
Non-interest expense was $7.6 million during the
fourth fiscal quarter compared to $7.3 million in the preceding
quarter and $7.7 million in the fourth quarter a year ago. For
fiscal 2016, non-interest expense decreased to $29.9 million
compared to $30.7 million for fiscal 2015. The year-over-year
decrease was the result of a decrease in salaries and employee
benefits, FDIC insurance premiums, professional fees and real
estate owned (“REO”) expenses.
Credit Quality
“We were able to cut our nonperforming loans and
nonperforming assets in half this year, reflecting the hard work of
our lenders and the credit management team as well as the the
continuing improvement in our local markets,” said Dan Cox,
executive vice president and chief credit officer. Total
nonperforming assets decreased to $3.3 million at March 31, 2016
compared to $4.3 million three months earlier and $6.9 million a
year ago.
Nonperforming loans decreased to $2.7 million,
or 0.43% of total loans, at March 31, 2016 compared to $3.9
million, or 0.65% of total loans, at December 31, 2015 and $5.3
million, or 0.92% of total loans, a year ago. Loans past due 30-89
days were 0.10% of total loans at March 31, 2016 compared to 0.11%
in the preceding quarter.
REO balances were $595,000 at March 31, 2016
compared to $388,000 at December 31, 2015. Sales of REO properties
totaled $45,000 during the quarter, with $46,000 in write-downs and
one new addition totaling $298,000.
Classified assets decreased to $6.8 million at
March 31, 2016 compared to $7.1 million at December 31, 2015. The
classified asset to total capital ratio was 6.4% at March 31, 2016
compared to 6.7% three months earlier. During the past twelve
months, Riverview has reduced its classified assets by 60%, or
$10.0 million.
Riverview recorded a $350,000 recapture of loan
losses during the fourth fiscal quarter of 2016 compared to no
provision for loan losses during the preceding quarter and a
$750,000 recapture of loan losses during the fourth quarter one
year ago. For fiscal year 2016, the Company recorded a $1.2 million
recapture of loan losses compared to $1.8 million in fiscal year
2015. The recapture of loan losses reflects the continued
improvement in credit quality and the decline in loan charge-offs
during the past few years.
Net loan recoveries were $62,000 during the
fourth fiscal quarter of 2016 compared to $60,000 in the preceding
quarter. The allowance for loan losses at March 31, 2016 totaled
$9.9 million, representing 1.58% of total loans and 364.2% of
nonperforming loans.
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 16.07%,
Tier 1 leverage ratio of 11.18% and tangible common equity to
tangible assets ratio of 9.20% at March 31, 2016.
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. Riverview believes
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) |
|
March 31,
2016 |
|
December
31, 2015 |
|
March 31,
2015 |
|
|
|
|
|
|
|
Shareholders' equity |
|
$ |
108,273 |
|
|
$ |
105,993 |
|
|
$ |
103,801 |
|
Goodwill |
|
|
25,572 |
|
|
|
25,572 |
|
|
|
25,572 |
|
Other intangible assets, net |
|
|
380 |
|
|
|
386 |
|
|
|
401 |
|
Tangible shareholders' equity |
|
$ |
82,321 |
|
|
$ |
80,035 |
|
|
$ |
77,828 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
921,229 |
|
|
$ |
886,152 |
|
|
$ |
858,750 |
|
Goodwill |
|
|
25,572 |
|
|
|
25,572 |
|
|
|
25,572 |
|
Other intangible assets, net |
|
|
380 |
|
|
|
386 |
|
|
|
401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets |
|
$ |
895,277 |
|
|
$ |
860,194 |
|
|
$ |
832,777 |
|
|
|
|
|
|
|
|
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 $921 million at March 31, 2016, it is
the parent company of the 92 year-old Riverview Community Bank, as
well as Riverview Asset Management Corp. The Bank offers true
community banking services, focusing on providing the highest
quality service and financial products to commercial and retail
customers. There are 17 branches, including twelve in the
Portland-Vancouver area and three lending centers. For the past 3
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: 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 2016 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) |
March 31,
2016 |
|
December
31, 2015 |
|
March 31,
2015 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash (including interest-earning
accounts of $40,317, $16,461 |
$ |
55,400 |
|
|
$ |
28,967 |
|
|
$ |
58,659 |
|
and $45,490) |
|
|
|
|
|
Certificate of deposits held for
investment |
|
16,769 |
|
|
|
17,761 |
|
|
|
25,969 |
|
Loans held for sale |
|
503 |
|
|
|
400 |
|
|
|
778 |
|
Investment securities: |
|
|
|
|
|
Available for sale, at estimated
fair value |
|
150,690 |
|
|
|
154,292 |
|
|
|
112,463 |
|
Held to maturity, at amortized
cost |
|
75 |
|
|
|
77 |
|
|
|
86 |
|
Loans receivable (net of allowance
for loan losses of $9,885, $10,173 |
|
|
|
|
|
and $10,762) |
|
614,934 |
|
|
|
600,540 |
|
|
|
569,010 |
|
Real estate owned |
|
595 |
|
|
|
388 |
|
|
|
1,603 |
|
Prepaid expenses and other
assets |
|
3,405 |
|
|
|
3,236 |
|
|
|
3,238 |
|
Accrued interest receivable |
|
2,384 |
|
|
|
2,429 |
|
|
|
2,139 |
|
Federal Home Loan Bank stock, at
cost |
|
1,060 |
|
|
|
988 |
|
|
|
5,924 |
|
Premises and equipment, net |
|
14,595 |
|
|
|
14,814 |
|
|
|
15,434 |
|
Deferred income taxes, net |
|
9,189 |
|
|
|
10,814 |
|
|
|
12,568 |
|
Mortgage servicing rights, net |
|
380 |
|
|
|
386 |
|
|
|
399 |
|
Goodwill |
|
25,572 |
|
|
|
25,572 |
|
|
|
25,572 |
|
Bank owned life insurance |
|
25,678 |
|
|
|
25,488 |
|
|
|
24,908 |
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
921,229 |
|
|
$ |
886,152 |
|
|
$ |
858,750 |
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits |
$ |
779,803 |
|
|
$ |
747,565 |
|
|
$ |
720,850 |
|
Accrued expenses and other
liabilities |
|
7,388 |
|
|
|
7,178 |
|
|
|
8,111 |
|
Advance payments by borrowers for
taxes and insurance |
|
609 |
|
|
|
256 |
|
|
|
495 |
|
Junior subordinated debentures |
|
22,681 |
|
|
|
22,681 |
|
|
|
22,681 |
|
Capital lease obligations |
|
2,475 |
|
|
|
2,479 |
|
|
|
2,276 |
|
Total liabilities |
|
812,956 |
|
|
|
780,159 |
|
|
|
754,413 |
|
|
|
|
|
|
|
EQUITY: |
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Serial preferred stock, $.01 par
value; 250,000 authorized, |
|
|
|
|
|
issued and outstanding, none |
|
- |
|
|
|
- |
|
|
|
- |
|
Common stock, $.01 par value;
50,000,000 authorized, |
|
|
|
|
|
March 31, 2016 – 22,507,890 issued
and outstanding; |
|
225 |
|
|
|
225 |
|
|
|
225 |
|
December 31, 2015 - 22,507,890
issued and outstanding; |
|
|
|
|
|
March 31, 2015 – 22,489,890 issued
and outstanding; |
|
|
|
|
|
Additional paid-in capital |
|
64,418 |
|
|
|
64,417 |
|
|
|
65,268 |
|
Retained earnings |
|
42,728 |
|
|
|
41,773 |
|
|
|
37,830 |
|
Unearned shares issued to employee
stock ownership plan |
|
(181 |
) |
|
|
(206 |
) |
|
|
(284 |
) |
Accumulated other comprehensive
income (loss) |
|
1,083 |
|
|
|
(216 |
) |
|
|
762 |
|
Total shareholders’ equity |
|
108,273 |
|
|
|
105,993 |
|
|
|
103,801 |
|
|
|
|
|
|
|
Noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
536 |
|
Total equity |
|
108,273 |
|
|
|
105,993 |
|
|
|
104,337 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
921,229 |
|
|
$ |
886,152 |
|
|
$ |
858,750 |
|
|
|
|
|
|
|
RIVERVIEW BANCORP, INC. AND
SUBSIDIARY |
|
|
|
|
|
|
Consolidated Statements of
Income |
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve Months
Ended |
(In thousands, except
share data) (Unaudited) |
March 31,
2016 |
Dec. 31,
2015 |
March 31,
2015 |
|
March 31,
2016 |
March 31,
2015 |
INTEREST INCOME: |
|
|
|
|
|
|
Interest and fees on loans
receivable |
$ |
7,037 |
|
$ |
7,109 |
|
$ |
6,741 |
|
|
$ |
27,795 |
|
$ |
25,896 |
|
Interest on investment
securities |
|
723 |
|
|
702 |
|
|
509 |
|
|
|
2,709 |
|
|
2,274 |
|
Other interest and dividends |
|
104 |
|
|
110 |
|
|
97 |
|
|
|
444 |
|
|
456 |
|
Total interest and dividend
income |
|
7,864 |
|
|
7,921 |
|
|
7,347 |
|
|
|
30,948 |
|
|
28,626 |
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
Interest on deposits |
|
280 |
|
|
290 |
|
|
302 |
|
|
|
1,173 |
|
|
1,326 |
|
Interest on borrowings |
|
152 |
|
|
144 |
|
|
132 |
|
|
|
569 |
|
|
590 |
|
Total interest expense |
|
432 |
|
|
434 |
|
|
434 |
|
|
|
1,742 |
|
|
1,916 |
|
Net interest income |
|
7,432 |
|
|
7,487 |
|
|
6,913 |
|
|
|
29,206 |
|
|
26,710 |
|
Recapture of loan losses |
|
(350 |
) |
|
- |
|
|
(750 |
) |
|
|
(1,150 |
) |
|
(1,800 |
) |
|
|
|
|
|
|
|
Net interest income after recapture of loan
losses |
|
7,782 |
|
|
7,487 |
|
|
7,663 |
|
|
|
30,356 |
|
|
28,510 |
|
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
Fees and service charges |
|
1,106 |
|
|
1,312 |
|
|
1,057 |
|
|
|
4,846 |
|
|
4,317 |
|
Asset management fees |
|
757 |
|
|
830 |
|
|
727 |
|
|
|
3,212 |
|
|
2,975 |
|
Net gain on sale of loans held for
sale |
|
100 |
|
|
125 |
|
|
161 |
|
|
|
525 |
|
|
596 |
|
Bank owned life insurance
income |
|
190 |
|
|
193 |
|
|
188 |
|
|
|
770 |
|
|
716 |
|
Other, net |
|
40 |
|
|
(43 |
) |
|
45 |
|
|
|
22 |
|
|
271 |
|
Total non-interest income |
|
2,193 |
|
|
2,417 |
|
|
2,178 |
|
|
|
9,375 |
|
|
8,875 |
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
Salaries and employee benefits |
|
4,592 |
|
|
4,452 |
|
|
4,818 |
|
|
|
17,694 |
|
|
17,805 |
|
Occupancy and depreciation |
|
1,204 |
|
|
1,200 |
|
|
1,146 |
|
|
|
4,727 |
|
|
4,778 |
|
Data processing |
|
430 |
|
|
424 |
|
|
408 |
|
|
|
1,775 |
|
|
1,807 |
|
Advertising and marketing
expense |
|
136 |
|
|
149 |
|
|
106 |
|
|
|
669 |
|
|
628 |
|
FDIC insurance premium |
|
125 |
|
|
127 |
|
|
129 |
|
|
|
500 |
|
|
627 |
|
State and local taxes |
|
148 |
|
|
102 |
|
|
143 |
|
|
|
510 |
|
|
559 |
|
Telecommunications |
|
74 |
|
|
71 |
|
|
72 |
|
|
|
292 |
|
|
295 |
|
Professional fees |
|
231 |
|
|
222 |
|
|
241 |
|
|
|
904 |
|
|
1,089 |
|
Real estate owned expenses |
|
56 |
|
|
65 |
|
|
93 |
|
|
|
567 |
|
|
994 |
|
Other |
|
573 |
|
|
537 |
|
|
533 |
|
|
|
2,309 |
|
|
2,162 |
|
Total non-interest expense |
|
7,569 |
|
|
7,349 |
|
|
7,689 |
|
|
|
29,947 |
|
|
30,744 |
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
2,406 |
|
|
2,555 |
|
|
2,152 |
|
|
|
9,784 |
|
|
6,641 |
|
PROVISION FOR INCOME TAXES |
|
1,001 |
|
|
849 |
|
|
634 |
|
|
|
3,426 |
|
|
2,150 |
|
NET INCOME |
$ |
1,405 |
|
$ |
1,706 |
|
$ |
1,518 |
|
|
$ |
6,358 |
|
$ |
4,491 |
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
Basic |
$ |
0.06 |
|
$ |
0.08 |
|
$ |
0.07 |
|
|
$ |
0.28 |
|
$ |
0.20 |
|
Diluted |
$ |
0.06 |
|
$ |
0.08 |
|
$ |
0.07 |
|
|
$ |
0.28 |
|
$ |
0.20 |
|
Weighted average number of common shares
outstanding: |
|
|
|
|
|
|
Basic |
|
22,461,703 |
|
|
22,455,543 |
|
|
22,404,870 |
|
|
|
22,450,252 |
|
|
22,392,744 |
|
Diluted |
|
22,502,111 |
|
|
22,506,341 |
|
|
22,460,054 |
|
|
|
22,494,151 |
|
|
22,431,839 |
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
At or for the
three months ended |
|
At or for the
twelve months ended |
|
|
March 31,
2016 |
|
Dec. 31,
2015 |
|
March 31,
2015 |
|
March 31,
2016 |
|
March 31,
2015 |
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
Average interest–earning assets |
|
$ |
815,431 |
|
|
$ |
806,760 |
|
|
$ |
755,848 |
|
|
$ |
795,875 |
|
|
$ |
743,870 |
|
Average interest-bearing liabilities |
|
|
610,568 |
|
|
|
597,989 |
|
|
|
588,664 |
|
|
|
598,007 |
|
|
|
579,627 |
|
Net average earning assets |
|
|
204,863 |
|
|
|
208,771 |
|
|
|
167,184 |
|
|
|
197,868 |
|
|
|
164,243 |
|
Average loans |
|
|
616,015 |
|
|
|
606,760 |
|
|
|
586,159 |
|
|
|
593,415 |
|
|
|
557,440 |
|
Average deposits |
|
|
759,836 |
|
|
|
753,405 |
|
|
|
711,536 |
|
|
|
743,558 |
|
|
|
695,283 |
|
Average equity |
|
|
108,023 |
|
|
|
108,115 |
|
|
|
103,837 |
|
|
|
107,133 |
|
|
|
101,715 |
|
Average tangible equity |
|
|
82,066 |
|
|
|
82,151 |
|
|
|
77,858 |
|
|
|
81,164 |
|
|
|
75,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
March 31,
2016 |
|
Dec. 31,
2015 |
|
March 31,
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
2,714 |
|
|
$ |
3,941 |
|
|
$ |
5,318 |
|
|
|
|
|
Non-performing loans to total loans |
|
|
0.43 |
% |
|
|
0.65 |
% |
|
|
0.92 |
% |
|
|
|
|
Real estate/repossessed assets owned |
|
$ |
595 |
|
|
$ |
388 |
|
|
$ |
1,603 |
|
|
|
|
|
Non-performing assets |
|
$ |
3,309 |
|
|
$ |
4,329 |
|
|
$ |
6,921 |
|
|
|
|
|
Non-performing assets to total assets |
|
|
0.36 |
% |
|
|
0.49 |
% |
|
|
0.81 |
% |
|
|
|
|
Net loan charge-offs in the quarter |
|
$ |
(62 |
) |
|
$ |
(60 |
) |
|
$ |
189 |
|
|
|
|
|
Net charge-offs in the quarter/average net
loans |
|
|
(0.04 |
)% |
|
|
(0.04 |
)% |
|
|
0.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
9,885 |
|
|
$ |
10,173 |
|
|
$ |
10,762 |
|
|
|
|
|
Average interest-earning assets to average |
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
|
133.55 |
% |
|
|
134.91 |
% |
|
|
128.40 |
% |
|
|
|
|
Allowance for loan losses to |
|
|
|
|
|
|
|
|
|
|
non-performing loans |
|
|
364.22 |
% |
|
|
258.13 |
% |
|
|
202.37 |
% |
|
|
|
|
Allowance for loan losses to total loans |
|
|
1.58 |
% |
|
|
1.67 |
% |
|
|
1.86 |
% |
|
|
|
|
Shareholders’ equity to assets |
|
|
11.75 |
% |
|
|
11.96 |
% |
|
|
12.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
Total capital (to risk weighted assets) |
|
|
16.07 |
% |
|
|
16.08 |
% |
|
|
15.89 |
% |
|
|
|
|
Tier 1 capital (to risk weighted assets) |
|
|
14.81 |
% |
|
|
14.83 |
% |
|
|
14.63 |
% |
|
|
|
|
Common equity tier 1 (to risk weighted
assets) |
|
|
14.81 |
% |
|
|
14.83 |
% |
|
|
14.54 |
% |
|
|
|
|
Tier 1 capital (to leverage assets) |
|
|
11.18 |
% |
|
|
11.11 |
% |
|
|
10.89 |
% |
|
|
|
|
Tangible common equity (to tangible assets) |
|
|
9.20 |
% |
|
|
9.30 |
% |
|
|
9.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX |
|
March 31,
2016 |
|
Dec. 31,
2015 |
|
March 31,
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
|
$ |
144,740 |
|
|
$ |
130,635 |
|
|
$ |
115,461 |
|
|
|
|
|
Regular savings |
|
|
96,994 |
|
|
|
88,603 |
|
|
|
77,132 |
|
|
|
|
|
Money market deposit accounts |
|
|
239,544 |
|
|
|
226,746 |
|
|
|
237,465 |
|
|
|
|
|
Non-interest checking |
|
|
179,143 |
|
|
|
177,624 |
|
|
|
151,953 |
|
|
|
|
|
Certificates of deposit |
|
|
119,382 |
|
|
|
123,957 |
|
|
|
138,839 |
|
|
|
|
|
Total deposits |
|
$ |
779,803 |
|
|
$ |
747,565 |
|
|
$ |
720,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND
CONSTRUCTION LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
|
|
Real Estate |
|
Real Estate |
|
& Construction |
|
|
Commercial |
|
Mortgage |
|
Construction |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2016 |
|
(Dollars in
thousands) |
Commercial |
|
$ |
69,397 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
69,397 |
|
Commercial construction |
|
|
- |
|
|
|
- |
|
|
|
16,716 |
|
|
|
16,716 |
|
Office buildings |
|
|
- |
|
|
|
107,986 |
|
|
|
- |
|
|
|
107,986 |
|
Warehouse/industrial |
|
|
- |
|
|
|
55,830 |
|
|
|
- |
|
|
|
55,830 |
|
Retail/shopping centers/strip malls |
|
|
- |
|
|
|
61,600 |
|
|
|
- |
|
|
|
61,600 |
|
Assisted living facilities |
|
|
- |
|
|
|
1,809 |
|
|
|
- |
|
|
|
1,809 |
|
Single purpose facilities |
|
|
- |
|
|
|
126,524 |
|
|
|
- |
|
|
|
126,524 |
|
Land |
|
|
- |
|
|
|
12,045 |
|
|
|
- |
|
|
|
12,045 |
|
Multi-family |
|
|
- |
|
|
|
33,733 |
|
|
|
- |
|
|
|
33,733 |
|
One-to-four family construction |
|
|
- |
|
|
|
- |
|
|
|
10,015 |
|
|
|
10,015 |
|
Total |
|
$ |
69,397 |
|
|
$ |
399,527 |
|
|
$ |
26,731 |
|
|
$ |
495,655 |
|
|
|
|
|
|
|
|
|
|
March 31, 2015 |
|
|
|
|
|
|
|
|
Commercial |
|
$ |
77,186 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
77,186 |
|
Commercial construction |
|
|
- |
|
|
|
- |
|
|
|
27,967 |
|
|
|
27,967 |
|
Office buildings |
|
|
- |
|
|
|
86,813 |
|
|
|
- |
|
|
|
86,813 |
|
Warehouse/industrial |
|
|
- |
|
|
|
42,173 |
|
|
|
- |
|
|
|
42,173 |
|
Retail/shopping centers/strip malls |
|
|
- |
|
|
|
60,736 |
|
|
|
- |
|
|
|
60,736 |
|
Assisted living facilities |
|
|
- |
|
|
|
1,846 |
|
|
|
- |
|
|
|
1,846 |
|
Single purpose facilities |
|
|
- |
|
|
|
108,123 |
|
|
|
- |
|
|
|
108,123 |
|
Land |
|
|
- |
|
|
|
15,358 |
|
|
|
- |
|
|
|
15,358 |
|
Multi-family |
|
|
- |
|
|
|
30,457 |
|
|
|
- |
|
|
|
30,457 |
|
One-to-four family construction |
|
|
- |
|
|
|
- |
|
|
|
2,531 |
|
|
|
2,531 |
|
Total |
|
$ |
77,186 |
|
|
$ |
345,506 |
|
|
$ |
30,498 |
|
|
$ |
453,190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN MIX |
|
March 31,
2016 |
|
Dec. 31,
2015 |
|
March 31,
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Thousands) |
|
|
Commercial and construction |
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
69,397 |
|
|
$ |
72,113 |
|
|
$ |
77,186 |
|
|
|
Other real estate mortgage |
|
|
399,527 |
|
|
|
383,187 |
|
|
|
345,506 |
|
|
|
Real estate construction |
|
|
26,731 |
|
|
|
23,749 |
|
|
|
30,498 |
|
|
|
Total commercial and
construction |
|
|
495,655 |
|
|
|
479,049 |
|
|
|
453,190 |
|
|
|
Consumer |
|
|
|
|
|
|
|
|
Real estate one-to-four family |
|
|
88,780 |
|
|
|
88,839 |
|
|
|
89,801 |
|
|
|
Other installment |
|
|
40,384 |
|
|
|
42,825 |
|
|
|
36,781 |
|
|
|
Total consumer |
|
|
129,164 |
|
|
|
131,664 |
|
|
|
126,582 |
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
624,819 |
|
|
|
610,713 |
|
|
|
579,772 |
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
9,885 |
|
|
|
10,173 |
|
|
|
10,762 |
|
|
|
Loans receivable, net |
|
$ |
614,934 |
|
|
$ |
600,540 |
|
|
$ |
569,010 |
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
Other |
|
|
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Washington |
|
Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016 |
|
(Dollars in
thousands) |
Non-performing assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate |
|
$ |
269 |
|
|
$ |
1,290 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,559 |
|
Land |
|
|
- |
|
|
|
801 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
801 |
|
Consumer |
|
|
112 |
|
|
|
- |
|
|
|
139 |
|
|
|
- |
|
|
|
103 |
|
|
|
354 |
|
Total non-performing
loans |
|
|
381 |
|
|
|
2,091 |
|
|
|
139 |
|
|
|
- |
|
|
|
103 |
|
|
|
2,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REO |
|
|
271 |
|
|
|
- |
|
|
|
26 |
|
|
|
298 |
|
|
|
- |
|
|
|
595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing assets |
|
$ |
652 |
|
|
$ |
2,091 |
|
|
$ |
165 |
|
|
$ |
298 |
|
|
$ |
103 |
|
|
$ |
3,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
DETAIL OF LAND DEVELOPMENT
AND SPECULATIVE CONSTRUCTION LOANS |
|
|
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|
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|
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|
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|
Northwest |
|
Other |
|
Southwest |
|
|
|
|
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Total |
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|
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|
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|
|
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|
March 31,
2016 |
|
(Dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land development |
|
$ |
97 |
|
|
$ |
2,766 |
|
|
$ |
9,182 |
|
|
$ |
12,045 |
|
|
|
|
|
Speculative
construction |
|
|
400 |
|
|
|
- |
|
|
|
7,711 |
|
|
|
8,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total land development and
speculative construction |
|
$ |
497 |
|
|
$ |
2,766 |
|
|
$ |
16,893 |
|
|
$ |
20,156 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended |
|
At or for the
twelve months ended |
SELECTED OPERATING DATA |
March 31,
2016 |
|
Dec. 31,
2015 |
|
March 31,
2015 |
|
March 31,
2016 |
|
March 31,
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
78.64 |
% |
|
|
74.20 |
% |
|
|
84.58 |
% |
|
|
77.62 |
% |
|
|
86.40 |
% |
Coverage ratio (6) |
|
98.19 |
% |
|
|
101.88 |
% |
|
|
89.91 |
% |
|
|
97.53 |
% |
|
|
86.88 |
% |
Return on average assets (1) |
|
0.63 |
% |
|
|
0.76 |
% |
|
|
0.73 |
% |
|
|
0.72 |
% |
|
|
0.54 |
% |
Return on average equity (1) |
|
5.23 |
% |
|
|
6.28 |
% |
|
|
5.93 |
% |
|
|
5.93 |
% |
|
|
4.42 |
% |
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
|
|
|
|
Yield on loans |
|
4.59 |
% |
|
|
4.66 |
% |
|
|
4.66 |
% |
|
|
4.68 |
% |
|
|
4.65 |
% |
Yield on investment securities |
|
1.91 |
% |
|
|
2.09 |
% |
|
|
1.80 |
% |
|
|
2.01 |
% |
|
|
1.85 |
% |
Total yield on interest earning
assets |
|
3.88 |
% |
|
|
3.91 |
% |
|
|
3.94 |
% |
|
|
3.89 |
% |
|
|
3.85 |
% |
|
|
|
|
|
|
|
Cost of interest bearing deposits |
|
0.19 |
% |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
0.20 |
% |
|
|
0.24 |
% |
Cost of FHLB advances and other borrowings |
|
2.43 |
% |
|
|
2.28 |
% |
|
|
2.14 |
% |
|
|
2.27 |
% |
|
|
2.33 |
% |
Total cost of interest bearing
liabilities |
|
0.28 |
% |
|
|
0.29 |
% |
|
|
0.30 |
% |
|
|
0.29 |
% |
|
|
0.33 |
% |
|
|
|
|
|
|
|
Spread (7) |
|
3.60 |
% |
|
|
3.62 |
% |
|
|
3.64 |
% |
|
|
3.60 |
% |
|
|
3.52 |
% |
Net interest margin |
|
3.67 |
% |
|
|
3.69 |
% |
|
|
3.71 |
% |
|
|
3.67 |
% |
|
|
3.59 |
% |
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
Basic earnings per share (2) |
$ |
0.06 |
|
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.28 |
|
|
$ |
0.20 |
|
Diluted earnings per share (3) |
|
0.06 |
|
|
|
0.08 |
|
|
|
0.07 |
|
|
|
0.28 |
|
|
|
0.20 |
|
Book value per share (5) |
|
4.81 |
|
|
|
4.71 |
|
|
|
4.62 |
|
|
|
4.81 |
|
|
|
4.62 |
|
Tangible book value per share (5) |
|
3.66 |
|
|
|
3.56 |
|
|
|
3.46 |
|
|
|
3.66 |
|
|
|
3.46 |
|
Market price per share: |
|
|
|
|
|
|
High for the period |
$ |
4.76 |
|
|
$ |
5.11 |
|
|
$ |
4.74 |
|
|
$ |
5.11 |
|
|
$ |
4.74 |
|
Low for the period |
|
4.20 |
|
|
|
4.35 |
|
|
|
4.32 |
|
|
|
4.08 |
|
|
|
3.38 |
|
Close for period end |
|
4.20 |
|
|
|
4.69 |
|
|
|
4.50 |
|
|
|
4.20 |
|
|
|
4.50 |
|
Cash dividends declared per share |
|
0.02000 |
|
|
|
0.01750 |
|
|
|
0.01125 |
|
|
|
0.06500 |
|
|
|
0.01125 |
|
|
|
|
|
|
|
|
Average number of shares outstanding: |
|
|
|
|
|
|
Basic (2) |
|
22,461,703 |
|
|
|
22,455,543 |
|
|
|
22,404,870 |
|
|
|
22,450,252 |
|
|
|
22,392,744 |
|
Diluted (3) |
|
22,502,111 |
|
|
|
22,506,341 |
|
|
|
22,460,054 |
|
|
|
22,494,151 |
|
|
|
22,431,839 |
|
|
|
|
|
|
|
|
(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, Ron Wysaske or Kevin Lycklama,
Riverview Bancorp, Inc. 360-693-6650
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