Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the
“Company”) today reported that earnings increased to $2.0 million,
or $0.09 per diluted share, in the third fiscal quarter ended
December 31, 2016, compared to $1.7 million, or $0.08 per diluted
share, in the third fiscal quarter one year ago. In the preceding
quarter, Riverview earned $1.7 million, or $0.07 per diluted share.
In the first nine months of fiscal 2017, net income increased to
$5.4 million, or $0.24 per diluted share, compared to $5.0 million,
or $0.22 per diluted share, in the first nine months of fiscal
2016.
“Strong loan growth, improved operating
efficiencies and an expanding net interest margin fueled our
earnings during the quarter,” stated Pat Sheaffer, chairman and
chief executive officer. “With our improving core operating income
and growing revenues, coupled with the MBank transaction and other
strategic initiatives, we believe Riverview is well positioned for
continued profitability improvements.
“Our previously announced purchase and
assumption agreement with MBank is still on track to close in
February,” Sheaffer continued. “We are excited about the
opportunity this transaction will offer to our company, and the
transaction fits well into our strategy of further expanding our
presence in the Portland market. We expect the acquisition will
provide substantial EPS accretion in the first full year. We will
continue to look for additional opportunities to expand our brand
of community banking in the Portland market area.”
Third Quarter Highlights (at or for the
period ended December 31, 2016)
- Net income increased 16.8% to $2.0 million, or $0.09 per
diluted share, compared to F3Q16.
- Net interest margin improved to 3.75%.
- Net revenues increased 9.4% to $10.8 million in F3Q17 compared
to F3Q16.
- Net loans increased $13.2 million, or 2.1% (8.2% on an
annualized basis), during the quarter.
- Loan originations were $68.7 million during the third fiscal
quarter.
- Non-performing assets were 0.31% of total assets.
- Total risk-based capital ratio was 15.93% and Tier 1 leverage
ratio was 10.81%.
Income
Statement
Net revenues for the third fiscal quarter (net
interest income plus non-interest income) increased 1.6% to $10.8
million compared to the preceding quarter and increased 9.4% when
compared to the third fiscal quarter a year ago. Year-to-date net
revenues increased 10.0% to $31.8 million compared to $29.0 million
in the same period a year ago.
Riverview’s net interest income increased
$414,000 compared to the preceding quarter and $1.0 million
compared to the third fiscal quarter a year ago. Year-to-date, net
interest income increased $2.6 million, or 12.1%, to $24.4 million
compared to $21.8 million in the first nine months of fiscal 2016.
Growth in net interest income was driven primarily by an increase
in loans receivable and investment security balances during the
past year.
“The net interest margin increased during the
quarter, as we were able to deploy a significant amount of our
excess cash into both our loan and investment portfolios,” said
Kevin Lycklama, executive vice president and chief financial
officer. Riverview’s net interest margin increased five basis
points to 3.75% compared to the preceding quarter. In the first
nine months of fiscal 2017, Riverview’s net interest margin
improved six basis points to 3.73% compared to 3.67% in the same
period one year earlier.
Non-interest income was $2.3 million in the
third fiscal quarter compared to $2.6 million in the preceding
quarter. Other income during the third quarter included a $108,000
impairment charge on an investment security. In the preceding
quarter, other income included $407,000 of income from a Bank Owned
Life Insurance (“BOLI”) claim, which was offset by a $132,000
impairment charge on an investment security. In the first nine
months of fiscal 2017, non-interest income increased to $7.4
million compared to $7.2 million in the first nine months of fiscal
2016.
Asset management fees were $709,000 during the
third fiscal quarter compared to $727,000 in the preceding quarter
and $830,000 in the third fiscal quarter a year ago. Riverview
Trust Company’s assets under management were $403.3 million at
December 31, 2016, compared to $394.6 million at December 31, 2015.
Riverview Trust Company opened a second office in the Portland
suburb of Lake Oswego during January 2017.
Non-interest expense decreased to $7.9 million
during the third fiscal quarter compared to $8.4 million in the
preceding quarter. The current quarter included approximately
$102,000 in expenses related to the previously announced MBank
acquisition and the preceding quarter included approximately
$192,000 in acquisition related expenses. In addition, the prior
quarter included $475,000 in litigation settlement expenses.
Year-to-date, non-interest expense was $24.1 million compared to
$22.4 million in the same period one year earlier.
Balance Sheet Review
“Loan growth was robust during the quarter,
fueled by our strong local economy,” said Ron Wysaske, president
and chief operating officer. “Office buildings and pre-sold
single-family construction loans generated the largest increases
during the quarter. We continue to see strong loan demand in our
local markets, with loan originations totaling $68.7 million during
the quarter.”
Net loans increased $13.2 million during the
quarter and totaled $654.1 million at December 31, 2016, compared
to $640.9 million at September 30, 2016. Net loans have grown $53.5
million, or 8.9%, compared to one year ago.
The commercial loan pipeline totaled $33.9
million at the end of the quarter. Undisbursed construction loans
totaled $45.0 million at December 31, 2016, with the majority of
the undisbursed construction loans expected to fund during the next
few quarters.
Total deposits increased $1.5 million during the
quarter to $840.4 million at December 31, 2016. As noted last
quarter, deposit balances at September 30, 2016 included a $16
million temporary deposit from a single customer. Deposits from
this customer decreased $15 million during the current quarter.
Absent this single account, total deposits increased $16.5 million
during the third quarter. Average deposits increased $30.2 million
during the quarter. Total deposits have grown $92.8 million, or
12.4%, compared to a year ago. Checking account balances increased
to 44.0% of total deposits compared to 41.2% a year ago.
Shareholders’ equity was $109.4 million at
December 31, 2016 compared to $111.0 million three months earlier
and $106.0 million a year earlier. The decrease in shareholders’
equity was due to a decrease in accumulated other comprehensive
income as a result of an increase in bond yields during the
quarter. Tangible book value per share was $3.72 at December 31,
2016, compared to $3.79 at September 30, 2016 and $3.56 a year ago.
A quarterly cash dividend of $0.02 per share was paid on January
24, 2017.
Credit Quality
Non-performing loans were $2.8 million, or 0.42%
of total loans, at December 31, 2016, compared to $2.4 million, or
0.36% of total loans, three months earlier. REO balances decreased
to $298,000 at December 31, 2016 and included $241,000 in sales
during the quarter with no write-downs. There were no additions to
REO during the quarter.
Classified assets decreased to $4.3 million at
December 31, 2016 compared to $5.5 million at September 30, 2016.
The classified asset to total capital ratio was 3.8% at December
31, 2016, compared to 4.9% three months earlier.
Net loan recoveries were $226,000 during the
third fiscal quarter of 2017 compared to $103,000 in the preceding
quarter. The allowance for loan losses at December 31, 2016,
totaled $10.3 million, representing 1.55% of total loans and 369.2%
of non-performing 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 15.93%,
Tier 1 leverage ratio of 10.81% and tangible common equity to
tangible assets ratio of 8.73% at December 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 and nonrecurring items 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) |
|
|
December 31, 2016 |
|
September 30, 2016 |
|
December 31, 2015 |
|
March 31, 2016 |
|
Shareholders'
equity |
|
|
$ |
109,400 |
|
$ |
110,986 |
|
$ |
105,993 |
|
$ |
108,273 |
Goodwill |
|
|
|
25,572 |
|
|
25,572 |
|
|
25,572 |
|
|
25,572 |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible shareholders'
equity |
|
|
$ |
83,828 |
|
$ |
85,414 |
|
$ |
80,421 |
|
$ |
82,701 |
|
Total assets |
|
|
$ |
985,669 |
|
$ |
984,045 |
|
$ |
886,152 |
|
$ |
921,229 |
Goodwill |
|
|
|
25,572 |
|
|
25,572 |
|
|
25,572 |
|
|
25,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible assets |
|
|
$ |
960,097 |
|
$ |
958,473 |
|
$ |
860,580 |
|
$ |
895,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $986 million at December
31, 2016, it is the parent company of the 93 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 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: 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 2017 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) |
December 31, 2016 |
|
|
September 30, 2016 |
|
|
31-December 31, 2015 |
|
|
March 31, 2016 |
ASSETS |
|
|
Cash
(including interest-earning accounts of $14,302, $77,509,
$16,461 |
$ |
28,262 |
|
|
$ |
93,007 |
|
|
$ |
28,967 |
|
|
$ |
55,400 |
|
and
$40,317) |
|
|
|
Certificate of deposits held for investment |
|
11,291 |
|
|
|
15,275 |
|
|
|
17,761 |
|
|
|
16,769 |
|
Loans
held for sale |
|
1,679 |
|
|
|
991 |
|
|
|
400 |
|
|
|
503 |
|
Investment securities: |
|
|
|
Available
for sale, at estimated fair value |
|
207,271 |
|
|
|
152,251 |
|
|
|
154,292 |
|
|
|
150,690 |
|
Held to
maturity, at amortized cost |
|
67 |
|
|
|
69 |
|
|
|
77 |
|
|
|
75 |
|
Loans
receivable (net of allowance for loan losses of $10,289,
$10,063 |
|
|
|
|
|
|
|
|
|
$10,173,
and $9,885) |
|
654,053 |
|
|
|
640,873 |
|
|
|
600,540 |
|
|
|
614,934 |
|
Real
estate owned |
|
298 |
|
|
|
539 |
|
|
|
388 |
|
|
|
595 |
|
Prepaid
expenses and other assets |
|
4,832 |
|
|
|
4,334 |
|
|
|
3,236 |
|
|
|
3,405 |
|
Accrued
interest receivable |
|
2,846 |
|
|
|
2,421 |
|
|
|
2,429 |
|
|
|
2,384 |
|
Federal
Home Loan Bank stock, at cost |
|
1,060 |
|
|
|
1,060 |
|
|
|
988 |
|
|
|
1,060 |
|
Premises
and equipment, net |
|
13,953 |
|
|
|
14,206 |
|
|
|
14,814 |
|
|
|
14,595 |
|
Deferred
income taxes, net |
|
8,665 |
|
|
|
7,816 |
|
|
|
10,814 |
|
|
|
9,189 |
|
Mortgage
servicing rights, net |
|
390 |
|
|
|
385 |
|
|
|
386 |
|
|
|
380 |
|
Goodwill |
|
25,572 |
|
|
|
25,572 |
|
|
|
25,572 |
|
|
|
25,572 |
|
Bank
owned life insurance |
|
25,430 |
|
|
|
25,246 |
|
|
|
25,488 |
|
|
|
25,678 |
|
|
TOTAL ASSETS |
$ |
985,669 |
|
|
$ |
984,045 |
|
|
$ |
886,152 |
|
|
$ |
921,229 |
|
|
LIABILITIES AND EQUITY |
|
|
LIABILITIES: |
|
Deposits |
$ |
840,391 |
|
|
$ |
838,902 |
|
|
$ |
747,565 |
|
|
$ |
779,803 |
|
Accrued
expenses and other liabilities |
|
10,450 |
|
|
|
8,175 |
|
|
|
7,178 |
|
|
|
7,388 |
|
Advance
payments by borrowers for taxes and insurance |
|
288 |
|
|
|
837 |
|
|
|
256 |
|
|
|
609 |
|
Junior
subordinated debentures |
|
22,681 |
|
|
|
22,681 |
|
|
|
22,681 |
|
|
|
22,681 |
|
Capital
lease obligations |
|
2,459 |
|
|
|
2,464 |
|
|
|
2,479 |
|
|
|
2,475 |
|
Total
liabilities |
|
876,269 |
|
|
|
873,059 |
|
|
|
780,159 |
|
|
|
812,956 |
|
|
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, |
|
|
|
|
|
|
|
December
31, 2016 - 22,510,890 issued and outstanding; |
|
|
|
|
|
|
|
September
30, 2016 - 22,507,890 issued and outstanding; |
|
225 |
|
|
|
225 |
|
|
|
225 |
|
|
|
225 |
|
December
31, 2015 - 22,507,890 issued and outstanding; |
|
|
|
|
|
|
|
March 31,
2016 – 22,507,890 issued and outstanding; |
|
|
|
|
|
|
|
Additional paid-in capital |
|
64,448 |
|
|
|
64,425 |
|
|
|
64,417 |
|
|
|
64,418 |
|
Retained
earnings |
|
46,750 |
|
|
|
45,207 |
|
|
|
41,773 |
|
|
|
42,728 |
|
Unearned
shares issued to employee stock ownership plan |
|
(103 |
) |
|
|
(129 |
) |
|
|
(206 |
) |
|
|
(181 |
) |
Accumulated other comprehensive income (loss) |
|
(1,920 |
) |
|
|
1,258 |
|
|
|
(216 |
) |
|
|
1,083 |
|
Total
shareholders' equity |
|
109,400 |
|
|
|
110,986 |
|
|
|
105,993 |
|
|
|
108,273 |
|
|
TOTAL LIABILITIES AND
EQUITY |
$ |
985,669 |
|
|
$ |
984,045 |
|
|
$ |
886,152 |
|
|
$ |
921,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RIVERVIEW
BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
Consolidated
Statements of Income |
|
|
Three Months Ended |
Nine Months Ended |
(In thousands, except share data)
(Unaudited) |
|
Dec. 31, 2016 |
|
|
Sept. 30, 2016 |
|
|
Dec. 31, 2015 |
|
|
|
Dec. 31, 2016 |
|
|
Dec. 31, 2015 |
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and fees on loans receivable |
$ |
7,883 |
|
$ |
7,631 |
|
$ |
7,109 |
|
|
$ |
22,954 |
|
$ |
20,758 |
|
Interest
on investment securities - taxable |
|
946 |
|
|
769 |
|
|
702 |
|
|
|
2,435 |
|
|
1,986 |
|
Interest
on investment securities - nontaxable |
|
11 |
|
|
- |
|
|
- |
|
|
|
11 |
|
|
- |
|
Other
interest and dividends |
|
112 |
|
|
130 |
|
|
110 |
|
|
|
344 |
|
|
340 |
|
Total
interest and dividend income |
|
8,952 |
|
|
8,530 |
|
|
7,921 |
|
|
|
25,744 |
|
|
23,084 |
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
on deposits |
|
277 |
|
|
279 |
|
|
290 |
|
|
|
837 |
|
|
893 |
|
Interest
on borrowings |
|
173 |
|
|
163 |
|
|
144 |
|
|
|
494 |
|
|
417 |
|
Total
interest expense |
|
450 |
|
|
442 |
|
|
434 |
|
|
|
1,331 |
|
|
1,310 |
|
Net interest
income |
|
8,502 |
|
|
8,088 |
|
|
7,487 |
|
|
|
24,413 |
|
|
21,774 |
|
Recapture of loan
losses |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
(800 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after recapture of loan losses |
|
8,502 |
|
|
8,088 |
|
|
7,487 |
|
|
|
24,413 |
|
|
22,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
Fees and
service charges |
|
1,304 |
|
|
1,188 |
|
|
1,312 |
|
|
|
3,815 |
|
|
3,740 |
|
Asset
management fees |
|
709 |
|
|
727 |
|
|
830 |
|
|
|
2,258 |
|
|
2,455 |
|
Net gain
on sale of loans held for sale |
|
191 |
|
|
163 |
|
|
125 |
|
|
|
493 |
|
|
425 |
|
Bank
owned life insurance |
|
185 |
|
|
190 |
|
|
193 |
|
|
|
566 |
|
|
580 |
|
Other,
net |
|
(56 |
) |
|
313 |
|
|
(43 |
) |
|
|
296 |
|
|
(18 |
) |
Total
non-interest income |
|
2,333 |
|
|
2,581 |
|
|
2,417 |
|
|
|
7,428 |
|
|
7,182 |
|
|
NON-INTEREST
EXPENSE: |
|
Salaries
and employee benefits |
|
4,850 |
|
|
4,531 |
|
|
4,452 |
|
|
|
14,021 |
|
|
13,102 |
|
Occupancy
and depreciation |
|
1,158 |
|
|
1,225 |
|
|
1,200 |
|
|
|
3,520 |
|
|
3,523 |
|
Data
processing |
|
562 |
|
|
476 |
|
|
424 |
|
|
|
1,533 |
|
|
1,345 |
|
Advertising and marketing expense |
|
163 |
|
|
252 |
|
|
149 |
|
|
|
608 |
|
|
533 |
|
FDIC
insurance premium |
|
77 |
|
|
74 |
|
|
127 |
|
|
|
273 |
|
|
375 |
|
State and
local taxes |
|
170 |
|
|
146 |
|
|
102 |
|
|
|
455 |
|
|
362 |
|
Telecommunications |
|
75 |
|
|
76 |
|
|
71 |
|
|
|
224 |
|
|
218 |
|
Professional fees |
|
355 |
|
|
453 |
|
|
222 |
|
|
|
1,066 |
|
|
673 |
|
Real
estate owned expenses |
|
2 |
|
|
35 |
|
|
65 |
|
|
|
52 |
|
|
511 |
|
Other |
|
439 |
|
|
1,129 |
|
|
537 |
|
|
|
2,311 |
|
|
1,736 |
|
Total
non-interest expense |
|
7,851 |
|
|
8,397 |
|
|
7,349 |
|
|
|
24,063 |
|
|
22,378 |
|
|
INCOME BEFORE INCOME
TAXES |
|
2,984 |
|
|
2,272 |
|
|
2,555 |
|
|
|
7,778 |
|
|
7,378 |
|
PROVISION FOR INCOME
TAXES |
|
991 |
|
|
592 |
|
|
849 |
|
|
|
2,408 |
|
|
2,425 |
|
NET INCOME |
$ |
1,993 |
|
$ |
1,680 |
|
$ |
1,706 |
|
|
$ |
5,370 |
|
$ |
4,953 |
|
|
Earnings per common
share: |
|
Basic |
$ |
0.09 |
|
$ |
0.07 |
|
$ |
0.08 |
|
|
$ |
0.24 |
|
$ |
0.22 |
|
Diluted |
$ |
0.09 |
|
$ |
0.07 |
|
$ |
0.08 |
|
|
$ |
0.24 |
|
$ |
0.22 |
|
Weighted
average number of common shares outstanding: |
|
Basic |
|
22,490,433 |
|
|
22,474,019 |
|
|
22,455,543 |
|
|
|
22,477,473 |
|
|
22,446,463 |
|
Diluted |
|
22,563,712 |
|
|
22,530,331 |
|
|
22,506,341 |
|
|
|
22,537,663 |
|
|
22,491,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
At or for the three months
ended |
At or for the nine months ended |
|
|
Dec. 31, 2016 |
|
|
|
Sept. 30, 2016 |
|
|
|
Dec. 31, 2015 |
|
|
|
Dec. 31, 2016 |
|
|
Dec. 31, 2015 |
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest–earning assets |
$ |
900,542 |
|
|
$ |
867,797 |
|
|
$ |
806,760 |
|
|
$ |
869,364 |
|
$ |
789,403 |
|
Average
interest-bearing liabilities |
|
652,195 |
|
|
|
632,445 |
|
|
|
597,989 |
|
|
|
636,795 |
|
|
593,851 |
|
Net average
earning assets |
|
248,347 |
|
|
|
235,352 |
|
|
|
208,771 |
|
|
|
232,569 |
|
|
195,552 |
|
Average loans |
|
|
658,212 |
|
|
|
645,479 |
|
|
|
606,760 |
|
|
|
645,598 |
|
|
585,936 |
|
Average
deposits |
|
839,588 |
|
|
|
809,384 |
|
|
|
753,405 |
|
|
|
810,700 |
|
|
738,172 |
|
Average equity |
|
|
112,444 |
|
|
|
111,516 |
|
|
|
108,115 |
|
|
|
111,261 |
|
|
106,838 |
|
Average
tangible equity |
|
86,872 |
|
|
|
85,944 |
|
|
|
82,151 |
|
|
|
85,689 |
|
|
80,865 |
|
|
ASSET
QUALITY |
|
|
Dec. 31, 2016 |
|
|
|
Sept. 30, 2016 |
|
|
|
Dec. 31, 2015 |
|
|
|
|
Non-performing loans |
$ |
2,787 |
|
|
$ |
2,360 |
|
|
$ |
3,941 |
|
|
Non-performing loans to total loans |
|
0.42 |
% |
|
|
0.36 |
% |
|
|
0.65 |
% |
|
Real
estate/repossessed assets owned |
$ |
298 |
|
|
$ |
539 |
|
|
$ |
388 |
|
|
Non-performing assets |
$ |
3,085 |
|
|
$ |
2,899 |
|
|
$ |
4,329 |
|
|
Non-performing assets to total assets |
|
0.31 |
% |
|
|
0.29 |
% |
|
|
0.49 |
% |
|
Net
recoveries in the quarter |
$ |
(226 |
) |
|
$ |
(103 |
) |
|
$ |
(60 |
) |
|
Net
recoveries in the quarter/average net loans |
|
(0.14 |
)% |
|
|
(0.06 |
)% |
|
|
(0.04 |
)% |
|
|
Allowance
for loan losses |
$ |
10,289 |
|
|
$ |
10,063 |
|
|
$ |
10,173 |
|
|
Average
interest-earning assets to average |
|
interest-bearing liabilities |
|
138.08 |
% |
|
|
137.21 |
% |
|
|
134.91 |
% |
|
Allowance
for loan losses to |
|
non-performing loans |
|
369.18 |
% |
|
|
426.40 |
% |
|
|
258.13 |
% |
|
Allowance
for loan losses to total loans |
|
1.55 |
% |
|
|
1.55 |
% |
|
|
1.67 |
% |
|
Shareholders’ equity to assets |
|
11.10 |
% |
|
|
11.28 |
% |
|
|
11.96 |
% |
|
|
CAPITAL RATIOS |
|
Total
capital (to risk weighted assets) |
|
15.93 |
% |
|
|
16.05 |
% |
|
|
16.08 |
% |
|
Tier 1
capital (to risk weighted assets) |
|
14.68 |
% |
|
|
14.80 |
% |
|
|
14.83 |
% |
|
Common
equity tier 1 (to risk weighted assets) |
|
14.68 |
% |
|
|
14.80 |
% |
|
|
14.83 |
% |
|
Tier 1
capital (to leverage assets) |
|
10.81 |
% |
|
|
10.95 |
% |
|
|
11.11 |
% |
|
Tangible
common equity (to tangible assets) |
|
8.73 |
% |
|
|
8.91 |
% |
|
|
9.34 |
% |
|
|
DEPOSIT
MIX |
|
|
Dec. 31, 2016 |
|
|
|
Sept. 30, 2016 |
|
|
|
Dec. 31, 2015 |
|
|
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
checking |
$ |
167,522 |
|
|
$ |
148,201 |
|
|
$ |
130,635 |
|
|
$ |
144,740 |
|
Regular savings |
|
|
109,629 |
|
|
|
104,241 |
|
|
|
88,603 |
|
|
|
96,994 |
|
Money
market deposit accounts |
|
250,900 |
|
|
|
249,381 |
|
|
|
226,746 |
|
|
|
239,544 |
|
Non-interest checking |
|
202,080 |
|
|
|
222,218 |
|
|
|
177,624 |
|
|
|
179,143 |
|
Certificates of deposit |
|
110,260 |
|
|
|
114,861 |
|
|
|
123,957 |
|
|
|
119,382 |
|
|
|
|
Total
deposits |
|
$ |
840,391 |
|
|
$ |
838,902 |
|
|
$ |
747,565 |
|
|
$ |
779,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
Commercial |
|
Real Estate |
|
|
Real Estate |
|
|
& Construction |
|
|
Commercial |
|
Mortgage |
|
|
Construction |
|
|
Total |
December 31, 2016 |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
Commercial |
|
$ |
64,401 |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
64,401 |
Commercial
construction |
|
- |
|
|
- |
|
|
|
31,942 |
|
|
|
31,942 |
Office buildings |
|
|
- |
|
|
117,310 |
|
|
|
- |
|
|
|
117,310 |
Warehouse/industrial |
|
|
- |
|
|
66,739 |
|
|
|
- |
|
|
|
66,739 |
Retail/shopping centers/strip malls |
|
- |
|
|
60,257 |
|
|
|
- |
|
|
|
60,257 |
Assisted living
facilities |
|
|
- |
|
|
1,781 |
|
|
|
- |
|
|
|
1,781 |
Single purpose
facilities |
|
|
- |
|
|
151,258 |
|
|
|
- |
|
|
|
151,258 |
Land |
|
|
- |
|
|
12,276 |
|
|
|
- |
|
|
|
12,276 |
Multi-family |
|
|
- |
|
|
23,161 |
|
|
|
- |
|
|
|
23,161 |
One-to-four
family construction |
|
- |
|
|
- |
|
|
|
20,765 |
|
|
|
20,765 |
Total |
|
$ |
64,401 |
|
$ |
432,782 |
|
|
$ |
52,707 |
|
|
$ |
549,890 |
|
March 31, 2016 |
|
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 |
|
LOAN
MIX |
|
Dec. 31, 2016 |
|
|
Sept. 30, 2016 |
|
|
|
Dec. 31, 2015 |
|
|
|
March 31, 2016 |
|
|
|
|
(Dollars in thousands) |
|
|
|
|
Commercial
and construction |
|
Commercial business |
|
$ |
64,401 |
|
$ |
64,176 |
|
|
$ |
72,113 |
|
|
$ |
69,397 |
Other real estate mortgage |
|
432,782 |
|
|
423,729 |
|
|
|
383,187 |
|
|
|
399,527 |
Real estate construction |
|
52,707 |
|
|
45,059 |
|
|
|
23,749 |
|
|
|
26,731 |
Total commercial and construction |
|
549,890 |
|
|
532,964 |
|
|
|
479,049 |
|
|
|
495,655 |
Consumer |
|
Real estate one-to-four family |
|
85,956 |
|
|
86,321 |
|
|
|
88,839 |
|
|
|
88,780 |
Other
installment |
|
|
28,496 |
|
|
31,651 |
|
|
|
42,825 |
|
|
|
40,384 |
Total
consumer |
|
|
114,452 |
|
|
117,972 |
|
|
|
131,664 |
|
|
|
129,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
664,342 |
|
|
650,936 |
|
|
|
610,713 |
|
|
|
624,819 |
|
Less: |
|
Allowance for loan losses |
|
10,289 |
|
|
10,063 |
|
|
|
10,173 |
|
|
|
9,885 |
Loans
receivable, net |
|
$ |
654,053 |
|
$ |
640,873 |
|
|
$ |
600,540 |
|
|
$ |
614,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF
NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
Southwest |
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
Oregon |
|
|
Washington |
|
|
|
Washington |
|
|
Other |
|
|
|
Total |
|
December 31, 2016 |
|
Non-performing
assets |
|
|
Commercial |
|
$ |
- |
|
|
$ |
189 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
189 |
|
Commercial real estate |
|
1,262 |
|
|
|
216 |
|
|
|
- |
|
|
|
- |
|
|
|
1,478 |
|
Land |
|
|
801 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
801 |
|
Consumer |
|
|
- |
|
|
|
173 |
|
|
|
- |
|
|
|
146 |
|
|
|
319 |
|
Total non-performing loans |
|
2,063 |
|
|
|
578 |
|
|
|
- |
|
|
|
146 |
|
|
|
2,787 |
|
|
REO |
|
- |
|
|
|
- |
|
|
|
298 |
|
|
|
- |
|
|
|
298 |
|
|
Total
non-performing assets |
$ |
2,063 |
|
|
$ |
578 |
|
|
$ |
298 |
|
|
$ |
146 |
|
|
$ |
3,085 |
|
|
|
DETAIL OF LAND DEVELOPMENT AND SECULATIVE CONSTRUCTION
LOANS |
|
|
|
Northwest |
|
|
Other |
|
|
Southwest |
|
|
|
|
|
|
|
|
|
|
|
Oregon |
|
|
Oregon |
|
|
Washington |
|
|
|
Total |
|
|
|
|
|
December 31, 2016 |
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
Land and Spec
Construction Loans |
|
|
Land development |
$ |
89 |
|
|
$ |
2,563 |
|
|
$ |
9,624 |
|
|
$ |
12,276 |
|
|
|
|
|
Speculative construction |
|
954 |
|
|
|
119 |
|
|
|
16,298 |
|
|
|
17,371 |
|
|
|
|
|
|
Total land development
and speculative construction |
|
$ |
1,043 |
|
|
$ |
2,682 |
|
|
$ |
25,922 |
|
|
$ |
29,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three months ended |
|
At or for the nine months ended |
SELECTED OPERATING
DATA |
|
Dec. 31, 2016 |
|
|
Sept. 30, 2016 |
|
|
Dec. 31, 2015 |
|
|
|
Dec. 31, 2016 |
|
|
Dec. 31, 2015 |
|
|
Efficiency ratio
(4) |
|
72.46 |
% |
|
78.70 |
% |
|
74.20 |
% |
|
|
75.57 |
% |
|
77.28 |
% |
Coverage ratio (6) |
|
108.29 |
% |
|
96.32 |
% |
|
101.88 |
% |
|
|
101.45 |
% |
|
97.30 |
% |
Return on average
assets (1) |
|
0.80 |
% |
|
0.70 |
% |
|
0.76 |
% |
|
|
0.75 |
% |
|
0.75 |
% |
Return on average
equity (1) |
|
7.03 |
% |
|
5.98 |
% |
|
6.28 |
% |
|
|
6.41 |
% |
|
6.17 |
% |
|
NET INTEREST
SPREAD |
|
Yield on loans |
|
4.75 |
% |
|
4.69 |
% |
|
4.66 |
% |
|
|
4.72 |
% |
|
4.72 |
% |
Yield on investment
securities |
|
2.06 |
% |
|
1.96 |
% |
|
2.09 |
% |
|
|
1.96 |
% |
|
2.06 |
% |
Total
yield on interest earning assets |
|
3.95 |
% |
|
3.90 |
% |
|
3.91 |
% |
|
|
3.93 |
% |
|
3.89 |
% |
|
Cost of interest
bearing deposits |
|
0.18 |
% |
|
0.18 |
% |
|
0.20 |
% |
|
|
0.18 |
% |
|
0.21 |
% |
Cost of FHLB advances
and other borrowings |
|
2.73 |
% |
|
2.55 |
% |
|
2.28 |
% |
|
|
2.61 |
% |
|
2.22 |
% |
Total
cost of interest bearing liabilities |
|
0.27 |
% |
|
0.28 |
% |
|
0.29 |
% |
|
|
0.28 |
% |
|
0.29 |
% |
|
Spread (7) |
|
3.68 |
% |
|
3.62 |
% |
|
3.62 |
% |
|
|
3.65 |
% |
|
3.60 |
% |
Net interest
margin |
|
3.75 |
% |
|
3.70 |
% |
|
3.69 |
% |
|
|
3.73 |
% |
|
3.67 |
% |
|
PER SHARE DATA |
|
Basic earnings per
share (2) |
$ |
0.09 |
|
$ |
0.07 |
|
$ |
0.08 |
|
|
$ |
0.24 |
|
$ |
0.22 |
|
Diluted earnings per
share (3) |
|
0.09 |
|
|
0.07 |
|
|
0.08 |
|
|
|
0.24 |
|
|
0.22 |
|
Book value per share
(5) |
|
4.86 |
|
|
4.93 |
|
|
4.71 |
|
|
|
4.86 |
|
|
4.71 |
|
Tangible book value per
share (5) |
|
3.72 |
|
|
3.79 |
|
|
3.56 |
|
|
|
3.72 |
|
|
3.56 |
|
Market price per
share: |
|
High for
the period |
$ |
7.61 |
|
$ |
5.41 |
|
$ |
5.11 |
|
|
$ |
7.61 |
|
$ |
5.11 |
|
Low for
the period |
|
5.23 |
|
|
4.69 |
|
|
4.35 |
|
|
|
4.3 |
|
|
4.08 |
|
Close for
period end |
|
7 |
|
|
5.38 |
|
|
4.69 |
|
|
|
7 |
|
|
4.69 |
|
Cash dividends declared
per share |
|
0.02 |
|
|
0.02 |
|
|
0.0175 |
|
|
|
0.06 |
|
|
0.045 |
|
|
Average number of
shares outstanding: |
|
Basic
(2) |
|
22,490,433 |
|
|
22,474,019 |
|
|
22,455,543 |
|
|
|
22,477,473 |
|
|
22,446,463 |
|
Diluted
(3) |
|
22,563,712 |
|
|
22,530,331 |
|
|
22,506,341 |
|
|
|
22,537,663 |
|
|
22,491,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
Riverview Bancorp (NASDAQ:RVSB)
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