Riverview Bancorp, Inc. (Nasdaq:RVSB) ("Riverview" or the
"Company") today announced that it earned $181,000, or $0.01 per
diluted share, in its second fiscal quarter ended September 30,
2011, compared to $1.1 million, or $0.06 per diluted share, in its
second quarter a year ago. For the first six months of fiscal 2012,
net income was $895,000, or $0.04 per diluted share, compared to
$2.9 million, or $0.20 per diluted share, for the same period a
year earlier.
"While Riverview continues to remain profitable, second quarter
results were affected by the additions to our loan loss provision
and a number of loans we placed on non-accrual status," said Pat
Sheaffer, Chairman and CEO. "We view this as a proactive step in
light of the continued weak economic conditions. Improving credit
quality while focusing on improved efficiency through programs such
as our employee-incentive program for cost reductions are just two
examples of Riverview's ongoing efforts to ensure continued
profitability and success. We are also looking for new growth
opportunities and we are excited about our expansion in Gresham,
Oregon with a new branch scheduled to open in the summer of
2012."
Highlights (at or for the period ended September 30,
2011)
- Credit Quality: Nonperforming loans (NPLs)
increased to $29.7 million, or 4.27% of total loans. Real Estate
Owned (REO) decreased to $25.6 million from $27.2 million at June
30, 2011.
- Balance Sheet Review: Net loans increased $3.5
million during the quarter as loan growth continues to remain a
challenge. Due to a planned reduction in non-branch deposits, total
deposits decreased $13.6 million to $729.3 million at September
30th from $742.9 million at June 30th, however, average deposits
increased $8.9 million for the quarter.
- Net Interest Margin: The net interest margin
during the second quarter was 4.35%.
- Income Statement: Net income was $181,000, or
$0.01 per diluted share, and marks the sixth consecutive profitable
quarter.
- Capital and Liquidity: The Company remains
very well capitalized with total risk-based capital ratio of
14.29%. Liquidity remains robust with no outstanding
borrowings.
Credit Quality
"We are taking aggressive action to continue to improve our
credit quality, with improvements in REO balances and ongoing
reductions in our land development and speculative construction
portfolios," said Dave Dahlstrom, EVP and Chief Credit Officer. "In
part due to regulatory requirements, non-performing loan balances
increased during the quarter, despite the fact that over 40% of
these borrowers were current on their loan payments. With declines
in local real estate values over the past several years, the
collateral supporting some of these loans has declined below the
note amounts. The increases in non-performing loans were primarily
concentrated in the commercial construction, land development and
commercial real estate (CRE) portfolios."
NPLs totaled $29.7 million, or 4.27% of total loans at September
30, 2011, compared to $13.1 million, or 1.89% of total loans at
June 30, 2011, and $35.3 million, or 5.06% of total loans a year
ago.
REO decreased to $25.6 million at September 30, 2011 compared to
$27.2 million in the preceding quarter. REO sales during the
quarter totaled $1.7 million, with write-downs of $574,000 and
additions of $642,000. Riverview currently has $8.5 million of REO
properties under sale contracts with expected closing dates before
the end of December.
The allowance for loan losses was $14.7 million at September 30,
2011, representing 2.11% of total loans and 49.43% of
non-performing loans. The provision for loan losses was $2.2
million in the second quarter compared to $1.6 million in the
preceding quarter and $1.7 million in the second quarter a year
ago.
Balance Sheet Review
For the third consecutive quarter, net loans balances increased.
Average loan balances were up $4.5 million compared to the June
30th quarter-end. Increases were concentrated in single-family
residential mortgages and small-business commercial loans.
Riverview continues to reduce its exposure to land development
and speculative construction loans. The balance of these portfolios
was $66.6 million at September 30, 2011 compared to $68.8 million
in the preceding quarter and $87.0 million a year ago. Speculative
construction loans were $14.7 million, representing 2.1% of the
total loan portfolio, and land development loans were $51.9
million, representing 7.5% of the total loan portfolio, at
September 30, 2011.
The CRE loan portfolio continues to perform well with only
isolated credit issues. The CRE loan portfolio totaled $356.6
million as of September 30, 2011, of which 29% was owner-occupied
and 71% was investor-owned. At September 30, 2011, the CRE
portfolio contained five loans totaling $4.0 million that were more
than 90 days past due, representing 1.1% of the total CRE
portfolio.
Due to a planned reduction in non-branch deposits, Riverview's
total deposits decreased $13.6 million during the quarter to $729.3
million at September 30, 2011 compared to $742.9 million at June
30, 2011. Deposits were $11.2 million higher compared to the
balances one year ago. Average deposit balances, which eliminate
fluctuations in daily balances, increased $8.9 million during the
quarter. Non-interest bearing deposits increased $2.9 million
during the quarter and currently account for 16.0% of total
deposits, compared to 13.0% a year ago. Riverview currently
has no wholesale brokered deposits or funding.
Net Interest Margin
Riverview's net interest margin was 4.35% for the second quarter
compared to 4.66% in the preceding quarter and 4.46% in the second
quarter a year ago. The decrease from the preceding quarter was due
to the reversal of interest income from loans placed on non-accrual
status as well as higher balances of cash and liquid assets held by
the Bank. The reversal of interest income resulted in a 23
basis point decrease in the Company's net interest margin while the
increase in cash and liquid assets decreased the net interest
margin by approximately three basis points. The cost of interest
bearing deposits was 0.75% during the current quarter, a decrease
of six basis points from the preceding quarter and a decrease of 37
basis points from the second quarter a year ago.
Income Statement
Net interest income was $8.4 million in the second quarter
compared to $8.8 million in the preceding quarter and $8.7 million
in the second quarter a year ago. The decline in net interest
income was due to the reversal of interest on non-accrual loans and
the continued pressure on loan yields as a result of the current
low interest rate environment. Operating revenue, which consists of
net interest income plus non-interest income, was $10.3 million in
the second quarter compared to $10.7 million both in the prior
linked quarter and in the second quarter a year ago.
Non-interest income was $1.8 million in the second quarter
compared to $1.9 million in the preceding quarter and $2.1 million
in the second quarter a year ago. In the first six months of the
fiscal year, non-interest income was $3.7 million compared to $4.3
million in the first six months of fiscal 2011. The decline from
prior year was primarily due to a decline in both gains on the sale
of REO properties and gains on sale of loans held for sale.
Non-interest expense was $7.8 million in the second quarter
compared to $8.2 million in the first quarter and $7.4 million in
the second quarter a year ago. Second quarter fiscal 2012
results include a one-time data processing expense of $277,000
related to Riverview's internet banking conversion. REO related
expenses increased $326,000 from the prior linked quarter and
$636,000 compared to the same period one year ago. For the first
six months of the year, total non-interest expense was $16.0
million, compared to $14.7 million for the first six months of
fiscal 2011.
"While operating expenses have increased due to higher costs
associated with REO properties, we are making every effort to
mitigate controllable operating expenses," said Ron Wysaske,
President and COO. "The bank has implemented a number of expense
reduction initiatives, including initiating an employee-incentive
program for cost reductions, and we have completed an evaluation of
our staffing levels in light of the continued weak prospects for
economic growth. The identified reductions will result in an
expected annual savings ranging from $1.4 million - $1.7 million.
The Company expects savings in the current fiscal year ranging from
$300,000 - $400,000, however, due to the implementation dates of
some of these items much of the savings will not be recognized
until the Company's fourth fiscal quarter. These efforts, along
with other strategic cost reduction solutions, are designed to
strengthen the Bank's core functions and develop long-term
operational efficiencies."
Riverview Asset Management Corp. ("RAMCorp"), a trust company
subsidiary of the Bank, increased its fee income 15.9% to $570,000
in the second quarter compared to $492,000 in the second quarter a
year ago. Year-to-date, RAMCorp fees totaled $1.2 million
compared to $1.0 million in the same period a year ago. Assets
under management increased 14.1% to $339.5 million at September 30,
2011 compared to $297.5 million at September 30, 2010.
Capital and Liquidity
The Bank continues to maintain capital levels significantly in
excess of the regulatory requirements to be categorized as "well
capitalized" with a total risk-based capital ratio of 14.29% and a
Tier 1 leverage ratio of 10.79% at September 30, 2011. The decrease
in capital from prior quarter was the result of a regulatory
requirement that excludes a portion of the Bank's deferred tax
asset from regulatory capital. The Bank believes that it will be
able to recognize 100% of its deferred tax assets, and it believes
that such amounts will be added back to capital over the next
several quarters as its deferred tax assets are realized. The
Company also has an additional $12 million in assets that could be
used in the future to boost the Bank's capital levels or support
future growth.
At September 30, 2011, the Bank had available total and
contingent liquidity of over $480 million, including over $300
million of borrowing capacity from the Federal Home Loan Bank of
Seattle and the Federal Reserve Bank of San Francisco, and more
than $60 million from cash and short-term investments. As of
September 30, 2011, the Bank had no outstanding borrowings.
Company Growth
Riverview is proceeding with its announced plans to open a new
branch in Gresham, Oregon, with construction expected to begin in
early 2012. "We are excited about our plans to open a new branch in
Gresham, Oregon," said Sheaffer. "We are regularly asked by
community leaders and clients when we are going to expand our
presence in the Gresham market. Customer demand, along with steady,
stable and successful growth of both the Wood Village and Gateway
(Portland) locations demonstrate support for a stronger community
bank presence in the region."
Non-GAAP Financial Measures
In addition to results presented in accordance with generally
accepted accounting principles in the United States of America
(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 reconciliations of ending
shareholders' equity (GAAP) to ending tangible shareholders' equity
(non-GAAP), and ending assets (GAAP) to ending tangible assets
(non-GAAP).
|
September 30, |
June 30, |
September 30, |
March 31, |
(Dollars in thousands) |
2011 |
2011 |
2010 |
2011 |
|
|
|
|
|
Shareholders' equity |
$ 108,149 |
$ 107,818 |
$ 105,719 |
$ 106,944 |
Goodwill |
25,572 |
25,572 |
25,572 |
25,572 |
Other intangible assets, net |
511 |
561 |
735 |
615 |
|
|
|
|
|
Tangible shareholders' equity |
$ 82,066 |
$ 81,685 |
$ 79,412 |
$ 80,757 |
|
|
|
|
|
Total assets |
$ 873,396 |
$ 885,625 |
$ 858,865 |
$ 859,263 |
Goodwill |
25,572 |
25,572 |
25,572 |
25,572 |
Other intangible assets, net |
511 |
561 |
735 |
615 |
|
|
|
|
|
Tangible assets |
$ 847,313 |
$ 859,492 |
$ 832,558 |
$ 833,076 |
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 $873 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
Thrift Supervision 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 OTS 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.
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.
|
|
|
|
|
RIVERVIEW BANCORP, INC. AND
SUBSIDIARY |
|
|
|
|
Consolidated Balance
Sheets |
|
|
|
|
(In thousands, except share
data) (Unaudited) |
September 30,
2011 |
June 30, 2011 |
September 30,
2010 |
March 31, 2011 |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash (including interest-earning accounts of
$32,955, $58,044, $36,002 and $37,349) |
$ 50,148 |
$ 70,010 |
$ 48,505 |
$ 51,752 |
Certificate of deposits |
23,847 |
18,875 |
14,951 |
14,900 |
Loans held for sale |
264 |
190 |
417 |
173 |
Investment securities held to maturity, at
amortized cost |
499 |
499 |
512 |
506 |
Investment securities available for sale, at
fair value |
6,707 |
6,506 |
6,688 |
6,320 |
Mortgage-backed securities held to maturity,
at amortized cost |
181 |
185 |
199 |
190 |
Mortgage-backed securities available for
sale, at fair value |
1,341 |
1,545 |
2,306 |
1,777 |
Loans receivable (net of allowance for loan
losses of $14,672, $16,059, $19,029, and $14,968) |
680,838 |
677,310 |
679,925 |
672,609 |
Real estate and other pers. property
owned |
25,585 |
27,213 |
19,766 |
27,590 |
Prepaid expenses and other assets |
6,020 |
5,973 |
6,541 |
5,887 |
Accrued interest receivable |
2,402 |
2,494 |
2,644 |
2,523 |
Federal Home Loan Bank stock, at cost |
7,350 |
7,350 |
7,350 |
7,350 |
Premises and equipment, net |
16,568 |
15,864 |
15,893 |
16,100 |
Deferred income taxes, net |
9,307 |
9,375 |
11,209 |
9,447 |
Mortgage servicing rights, net |
334 |
364 |
470 |
396 |
Goodwill |
25,572 |
25,572 |
25,572 |
25,572 |
Core deposit intangible, net |
177 |
197 |
265 |
219 |
Bank owned life insurance |
16,256 |
16,103 |
15,652 |
15,952 |
|
|
|
|
|
TOTAL ASSETS |
$ 873,396 |
$ 885,625 |
$ 858,865 |
$ 859,263 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
Deposit accounts |
$ 729,259 |
$ 742,859 |
$ 718,028 |
$ 716,530 |
Accrued expenses and other
liabilities |
9,459 |
8,824 |
8,898 |
9,396 |
Advance payments by borrowers
for taxes and insurance |
797 |
406 |
507 |
680 |
Junior subordinated
debentures |
22,681 |
22,681 |
22,681 |
22,681 |
Capital lease obligation |
2,544 |
2,556 |
2,589 |
2,567 |
Total liabilities |
764,740 |
777,326 |
752,703 |
751,854 |
|
|
|
|
|
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, |
|
|
|
|
September 30, 2011 -
22,471,890 issued and outstanding; |
|
|
|
|
June 30, 2011 – 22,471,890
issued and outstanding; |
225 |
225 |
225 |
225 |
September 30, 2010 – 22,471,890
issued and outstanding; |
|
|
|
|
March 31, 2011 – 22,471,890
issued and outstanding; |
|
|
|
|
Additional paid-in capital |
65,626 |
65,634 |
65,746 |
65,639 |
Retained earnings |
44,088 |
43,907 |
41,760 |
43,193 |
Unearned shares issued to
employee stock ownership trust |
(644) |
(670) |
(748) |
(696) |
Accumulated other comprehensive
loss |
(1,146) |
(1,278) |
(1,264) |
(1,417) |
Total shareholders' equity |
108,149 |
107,818 |
105,719 |
106,944 |
|
|
|
|
|
Noncontrolling interest |
507 |
481 |
443 |
465 |
Total equity |
108,656 |
108,299 |
106,162 |
107,409 |
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
$ 873,396 |
$ 885,625 |
$ 858,865 |
$ 859,263 |
|
|
|
|
|
|
RIVERVIEW BANCORP, INC. AND
SUBSIDIARY |
|
|
|
|
|
Consolidated Statements of
Income |
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
(In thousands, except share
data) (Unaudited) |
Sept. 30, 2011 |
June 30, 2011 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
INTEREST INCOME: |
|
|
|
|
|
Interest and fees on loans
receivable |
$ 9,815 |
$ 10,280 |
$ 10,672 |
$ 20,095 |
$ 21,865 |
Interest on investment
securities-taxable |
36 |
45 |
32 |
81 |
87 |
Interest on investment
securities-non taxable |
12 |
12 |
14 |
24 |
29 |
Interest on mortgage-backed
securities |
13 |
16 |
23 |
29 |
49 |
Other interest and
dividends |
89 |
75 |
48 |
164 |
63 |
Total interest income |
9,965 |
10,428 |
10,789 |
20,393 |
22,093 |
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
Interest on deposits |
1,158 |
1,230 |
1,764 |
2,388 |
3,665 |
Interest on borrowings |
372 |
368 |
375 |
740 |
760 |
Total interest expense |
1,530 |
1,598 |
2,139 |
3,128 |
4,425 |
Net interest income |
8,435 |
8,830 |
8,650 |
17,265 |
17,668 |
Less provision for loan losses |
2,200 |
1,550 |
1,675 |
3,750 |
2,975 |
|
|
|
|
|
|
Net interest income after provision for loan
losses |
6,235 |
7,280 |
6,975 |
13,515 |
14,693 |
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
Fees and service charges |
1,078 |
1,042 |
1,077 |
2,120 |
2,176 |
Asset management fees |
570 |
625 |
492 |
1,195 |
1,013 |
Gain on sale of loans held for
sale |
21 |
23 |
124 |
44 |
243 |
Bank owned life insurance
income |
153 |
151 |
150 |
304 |
300 |
Other |
10 |
63 |
207 |
73 |
554 |
Total non-interest income |
1,832 |
1,904 |
2,050 |
3,736 |
4,286 |
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
Salaries and employee benefits |
3,514 |
4,511 |
4,085 |
8,025 |
8,025 |
Occupancy and depreciation |
1,166 |
1,163 |
1,148 |
2,329 |
2,289 |
Data processing |
542 |
288 |
248 |
830 |
500 |
Amortization of core deposit intangible |
20 |
22 |
23 |
42 |
49 |
Advertising and marketing expense |
283 |
245 |
255 |
528 |
390 |
FDIC insurance premium |
286 |
273 |
417 |
559 |
838 |
State and local taxes |
81 |
179 |
147 |
260 |
318 |
Telecommunications |
108 |
107 |
105 |
215 |
212 |
Professional fees |
298 |
339 |
321 |
637 |
647 |
Real estate owned expenses |
756 |
430 |
120 |
1,186 |
286 |
Other |
791 |
600 |
543 |
1,391 |
1,123 |
Total non-interest expense |
7,845 |
8,157 |
7,412 |
16,002 |
14,677 |
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
222 |
1,027 |
1,613 |
1,249 |
4,302 |
PROVISION FOR INCOME TAXES |
41 |
313 |
496 |
354 |
1,420 |
NET INCOME |
$ 181 |
$ 714 |
$ 1,117 |
$ 895 |
$ 2,882 |
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
Basic |
$ 0.01 |
$ 0.03 |
$ 0.06 |
$ 0.04 |
$ 0.20 |
Diluted |
$ 0.01 |
$ 0.03 |
$ 0.06 |
$ 0.04 |
$ 0.20 |
Weighted average number of shares
outstanding: |
|
|
|
|
|
Basic |
22,314,854 |
22,308,696 |
18,033,354 |
22,311,792 |
14,404,588 |
Diluted |
22,314,854 |
22,309,353 |
18,033,354 |
22,311,792 |
14,404,588 |
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
At or for the three
months ended |
At or for the six
months ended |
|
Sept. 30, 2011 |
June 30, 2011 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
AVERAGE BALANCES |
|
|
|
|
|
Average interest–earning assets |
$ 770,719 |
$ 761,194 |
$ 769,423 |
$ 765,983 |
$ 762,312 |
Average interest-bearing liabilities |
640,605 |
636,935 |
658,973 |
638,754 |
657,543 |
Net average earning assets |
130,114 |
124,259 |
110,450 |
127,229 |
104,769 |
Average loans |
695,941 |
691,394 |
707,944 |
693,680 |
718,838 |
Average deposits |
724,473 |
715,610 |
716,279 |
720,066 |
707,926 |
Average equity |
109,729 |
109,178 |
100,306 |
109,453 |
93,407 |
Average tangible equity |
83,614 |
83,011 |
73,969 |
83,312 |
67,049 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
Sept. 30, 2011 |
June 30, 2011 |
Sept. 30, 2010 |
|
|
|
|
|
|
|
|
Non-performing loans |
29,680 |
13,110 |
35,346 |
|
|
Non-performing loans to total loans |
4.27% |
1.89% |
5.06% |
|
|
Real estate/repossessed assets owned |
25,585 |
27,213 |
19,766 |
|
|
Non-performing assets |
55,265 |
40,323 |
55,112 |
|
|
Non-performing assets to total assets |
6.33% |
4.55% |
6.42% |
|
|
Net loan charge-offs in the quarter |
3,587 |
459 |
2,211 |
|
|
Net charge-offs in the quarter/average net
loans |
2.04% |
0.27% |
1.24% |
|
|
|
|
|
|
|
|
Allowance for loan losses |
14,672 |
16,059 |
19,029 |
|
|
Average interest-earning assets to
average interest-bearing liabilities |
120.31% |
119.51% |
116.76% |
|
|
Allowance for loan losses
to non-performing loans |
49.43% |
122.49% |
53.84% |
|
|
Allowance for loan losses to total loans |
2.11% |
2.32% |
2.72% |
|
|
Shareholders' equity to assets |
12.38% |
12.17% |
12.31% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS |
|
|
|
|
|
Total capital (to risk weighted assets) |
14.29% |
14.72% |
14.07% |
|
|
Tier 1 capital (to risk weighted assets) |
13.03% |
13.46% |
12.81% |
|
|
Tier 1 capital (to leverage assets) |
10.79% |
11.02% |
11.00% |
|
|
Tangible common equity (to tangible
assets) |
9.69% |
9.50% |
9.54% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX |
Sept. 30, 2011 |
June 30, 2011 |
Sept. 30, 2010 |
March 31, 2011 |
|
|
|
|
|
|
|
Interest checking |
$ 92,006 |
$ 105,363 |
$ 82,318 |
$ 77,399 |
|
Regular savings |
40,871 |
37,855 |
35,132 |
37,231 |
|
Money market deposit accounts |
227,095 |
229,994 |
207,607 |
236,321 |
|
Non-interest checking |
116,645 |
113,780 |
93,590 |
102,429 |
|
Certificates of deposit |
252,642 |
255,867 |
299,381 |
263,150 |
|
Total deposits |
$ 729,259 |
$ 742,859 |
$ 718,028 |
$ 716,530 |
|
|
|
|
|
|
COMPOSITION OF
COMMERCIAL AND CONSTRUCTION LOANS |
|
|
|
|
|
|
|
|
|
Commercial |
|
Commercial |
|
|
Real Estate |
Real Estate |
& Construction |
|
Commercial |
Mortgage |
Construction |
Total |
September 30,
2011 |
(Dollars in thousands) |
Commercial |
$ 88,017 |
$ -- |
$ -- |
$ 88,017 |
Commercial construction |
-- |
-- |
12,578 |
12,578 |
Office buildings |
-- |
93,283 |
-- |
93,283 |
Warehouse/industrial |
-- |
46,336 |
-- |
46,336 |
Retail/shopping centers/strip malls |
-- |
83,638 |
-- |
83,638 |
Assisted living facilities |
-- |
37,525 |
-- |
37,525 |
Single purpose facilities |
-- |
95,778 |
-- |
95,778 |
Land |
-- |
51,873 |
-- |
51,873 |
Multi-family |
-- |
46,720 |
-- |
46,720 |
One-to-four family |
-- |
-- |
17,643 |
17,643 |
Total |
$ 88,017 |
$ 455,153 |
$ 30,221 |
$ 573,391 |
|
|
|
|
|
March 31, 2011 |
(Dollars in thousands) |
Commercial |
$ 85,511 |
$ -- |
$ -- |
$ 85,511 |
Commercial construction |
-- |
-- |
8,608 |
8,608 |
Office buildings |
-- |
95,529 |
-- |
95,529 |
Warehouse/industrial |
-- |
49,627 |
-- |
49,627 |
Retail/shopping centers/strip malls |
-- |
85,719 |
-- |
85,719 |
Assisted living facilities |
-- |
35,162 |
-- |
35,162 |
Single purpose facilities |
-- |
98,651 |
-- |
98,651 |
Land |
-- |
55,258 |
-- |
55,258 |
Multi-family |
-- |
42,009 |
-- |
42,009 |
One-to-four family |
-- |
-- |
18,777 |
18,777 |
Total |
$ 85,511 |
$ 461,955 |
$ 27,385 |
$ 574,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN MIX |
Sept. 30, 2011 |
June 30, 2011 |
Sept. 30, 2010 |
March 31, 2011 |
Commercial and construction |
|
|
|
|
Commercial |
$ 88,017 |
$ 84,158 |
$ 93,026 |
$ 85,511 |
Other real estate mortgage |
455,153 |
465,391 |
458,621 |
461,955 |
Real estate construction |
30,221 |
25,924 |
52,262 |
27,385 |
Total commercial and
construction |
573,391 |
575,473 |
603,909 |
574,851 |
Consumer |
|
|
|
|
Real estate one-to-four
family |
119,805 |
115,578 |
92,682 |
110,437 |
Other installment |
2,314 |
2,318 |
2,363 |
2,289 |
Total consumer |
122,119 |
117,896 |
95,045 |
112,726 |
|
|
|
|
|
Total loans |
695,510 |
693,369 |
698,954 |
687,577 |
|
|
|
|
|
Less: |
|
|
|
|
Allowance for loan
losses |
14,672 |
16,059 |
19,029 |
14,968 |
Loans receivable,
net |
$ 680,838 |
$ 677,310 |
$ 679,925 |
$ 672,609 |
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF
NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
Other |
Southwest |
Other |
|
|
|
Oregon |
Oregon |
Washington |
Washington |
Other |
Total |
September 30,
2011 |
(dollars in thousands) |
|
|
|
|
|
Non-performing assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ 207 |
$ 822 |
$ 1,341 |
$ -- |
$ -- |
$ 2,370 |
Commercial real estate |
-- |
532 |
1,023 |
-- |
2,456 |
4,011 |
Land |
-- |
533 |
5,983 |
-- |
6,753 |
13,269 |
Multi-family |
196 |
-- |
-- |
-- |
-- |
196 |
Commercial construction |
3,802 |
-- |
-- |
-- |
-- |
3,802 |
One-to-four family
construction |
1,723 |
1,815 |
-- |
-- |
-- |
3,538 |
Real estate one-to-four
family |
902 |
442 |
1,150 |
-- |
-- |
2,494 |
Consumer |
-- |
-- |
-- |
-- |
-- |
-- |
Total non-performing loans |
6,830 |
4,144 |
9,497 |
-- |
9,209 |
29,680 |
|
|
|
|
|
|
|
REO |
3,828 |
8,721 |
9,412 |
3,624 |
-- |
25,585 |
|
|
|
|
|
|
|
Total non-performing assets |
$ 10,658 |
$ 12,865 |
$ 18,909 |
$ 3,624 |
$ 9,209 |
$ 55,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF SPEC
CONSTRUCTION AND LAND DEVELOPMENT LOANS |
|
|
|
|
|
|
|
|
|
|
Northwest |
Other |
Southwest |
Other |
|
|
|
Oregon |
Oregon |
Washington |
Washington |
Other |
Total |
September 30,
2011 |
(dollars in thousands) |
|
|
|
|
|
Land and Spec Construction Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Development Loans |
$ 6,058 |
$ 4,226 |
$ 34,836 |
$ -- |
$ 6,753 |
$ 51,873 |
Spec Construction Loans |
1,723 |
8,300 |
4,710 |
-- |
-- |
14,733 |
|
|
|
|
|
|
|
Total Land and Spec Construction |
$ 7,781 |
$ 12,526 |
$ 39,546 |
$ -- |
$ 6,753 |
$ 66,606 |
|
|
|
|
|
|
|
At or for the
three months ended |
At or for the six
months ended |
SELECTED OPERATING DATA |
Sept. 30, 2011 |
June 30, 2011 |
Sept. 30, 2010 |
Sept. 30, 2011 |
Sept. 30, 2010 |
|
|
|
|
|
|
Efficiency ratio (4) |
76.41% |
75.99% |
69.27% |
76.20% |
66.85% |
Coverage ratio (6) |
107.52% |
108.25% |
116.70% |
107.89% |
120.38% |
Return on average assets (1) |
0.08% |
0.33% |
0.52% |
0.21% |
0.68% |
Return on average equity (1) |
0.65% |
2.62% |
4.42% |
1.63% |
6.15% |
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
|
|
|
Yield on loans |
5.59% |
5.96% |
5.98% |
5.78% |
6.07% |
Yield on investment securities |
2.59% |
2.93% |
2.60% |
2.74% |
2.98% |
Total yield on interest
earning assets |
5.13% |
5.50% |
5.57% |
5.31% |
5.78% |
|
|
|
|
|
|
Cost of interest bearing deposits |
0.75% |
0.81% |
1.12% |
0.78% |
1.18% |
Cost of FHLB advances and other
borrowings |
5.86% |
5.85% |
4.52% |
5.85% |
3.85% |
Total cost of interest
bearing liabilities |
0.95% |
1.01% |
1.29% |
0.98% |
1.34% |
|
|
|
|
|
|
Spread (7) |
4.18% |
4.49% |
4.28% |
4.33% |
4.44% |
Net interest margin |
4.35% |
4.66% |
4.46% |
4.50% |
4.63% |
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
Basic earnings per share (2) |
$ 0.01 |
$ 0.03 |
$ 0.06 |
$ 0.04 |
$ 0.20 |
Diluted earnings per share (3) |
0.01 |
0.03 |
0.06 |
0.04 |
0.20 |
Book value per share (5) |
4.81 |
4.80 |
4.70 |
4.81 |
4.70 |
Tangible book value per share (5) |
3.65 |
3.63 |
3.53 |
3.65 |
3.53 |
Market price per share: |
|
|
|
|
|
High for the period |
$ 3.12 |
$ 3.18 |
$ 2.49 |
$ 3.18 |
$ 3.81 |
Low for the period |
2.20 |
2.80 |
1.73 |
2.20 |
1.73 |
Close for period end |
2.40 |
3.07 |
1.98 |
2.40 |
1.98 |
Cash dividends declared per share |
-- |
-- |
-- |
-- |
-- |
|
|
|
|
|
|
Average number of shares outstanding: |
|
|
|
|
|
Basic (2) |
22,314,854 |
22,308,696 |
18,033,354 |
22,311,792 |
14,404,588 |
Diluted (3) |
22,314,854 |
22,309,353 |
18,033,354 |
22,311,792 |
14,404,588 |
|
|
|
|
|
|
(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. |
CONTACT: Pat Sheaffer or Ron Wysaske,
Riverview Bancorp, Inc. 360-693-6650
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