Riverview Bancorp, Inc. To Increase Its Provision For Loan Losses In Fourth Fiscal Quarter
April 20 2012 - 5:09PM
Business Wire
Riverview Bancorp, Inc. (NASDAQ:RVSB) (“Riverview” or the
“Company”), the parent company of Riverview Community Bank (the
“Bank”) today announced that it expects to record a provision for
loan losses of between $14.0 million and $15.0 million (pre-tax)
during the fourth fiscal quarter-ended March 31, 2012 compared to
an $8.1 million provision for loan loss for the quarter ended
December 31, 2011. As a result, the allowance for loan loss balance
will range between $18.0 million and $19.0 million as of March 31,
2012. The anticipated increase in the provision for loan losses was
primarily the result of updated appraisals received on several
properties as well as the Bank’s ongoing internal loan review. As a
result of the increase in the provision for loan losses, the
allowance for loan losses will be between 2.65% and 2.75% of total
loans and 40% to 45% of nonperforming loans at March 31, 2012.
The increase in the fourth quarter provision for loan losses is
expected to result in a net loss for the quarter-ended March 31,
2012 ranging from approximately $0.55 to $0.60 per share. Based on
these estimates, the Bank will continue to be “well-capitalized”
per regulatory guidelines.
About the Company
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered
in Vancouver, Washington – just north of Portland, Oregon on the
I-5 corridor. With assets of $862 million, it is the parent company
of the 88 year-old Riverview Community Bank, as well as Riverview
Asset Management Corp. There are 17 branches, including twelve in
the Portland-Vancouver area and three lending centers. The Bank
offers true community banking services, focusing on providing the
highest quality service and financial products to commercial and
retail customers.
“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 amount of capital it intends to raise and its intended use of
that 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 (OCC) 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; the Company’s
compliance with regulatory enforcement actions; we have entered
into with the OCC as successor to the Office of Thrift Supervision
and the possibility that our noncompliance could result in the
imposition of additional enforcement actions and additional
requirements or restrictions on our operations; 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 Securities and
Exchange Commission.
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 2012 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.
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