Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the
“Company”) today reported net income increased to $3.1 million, or
$0.14 per diluted share, in the second fiscal quarter ended
September 30, 2017, compared to $2.7 million, or $0.12 per diluted
share, in the preceding quarter and $1.7 million, or $0.07 per
diluted share, in the second fiscal quarter ended September 30,
2016.
In the first six months of fiscal year 2018,
Riverview’s earnings increased to $5.7 million, or $0.25 per
diluted share, compared to $3.4 million, or $0.15 per diluted
share, in the first six months of fiscal year 2017.
“Solid revenue growth combined with improving
operating efficiencies contributed to a profitable second quarter,”
stated Pat Sheaffer, chairman and chief executive officer. “We are
proud of our entire team for their hard work and dedication to
growing the Company. Without their efforts none of this would be
possible. This positions us well for continued growth in the
Portland-Vancouver market over the next fiscal year.”
Second Quarter Highlights (at or for the
period ended September 30, 2017)
- Net income grew to $3.1 million, or $0.14 per diluted
share.
- Net interest margin (NIM) expanded by 33 basis points to 4.03%
compared to the second quarter a year ago.
- Total loans were $783.7 million at September 30, 2017.
- Non-performing assets were 0.27% of total assets.
- Tangible book value per share improved to $3.93.
- Total risk-based capital ratio was 15.07% and Tier 1 leverage
ratio was 9.75%.
- Efficiency ratio improved to 65.2%.
- Declared quarterly cash dividend of $0.0225 per share,
generating a current dividend yield of 1.07%.
Income
Statement
Riverview’s net interest income increased $2.6
million, or 33%, to $10.7 million for the second fiscal quarter of
2018 compared to $8.1 million in the second fiscal quarter a year
ago, and increased $292,000, or 3%, compared to $10.4 million in
the preceding quarter. The increase in net interest income was
primarily due to a rise in interest and fees on loans as a result
of the average balance growth of our outstanding loans and an
increase in our loan yield. In the first six months of fiscal 2018,
net interest income increased $5.3 million to $21.2 million
compared to $15.9 million in the first six months of fiscal
2017.
“Our net interest margin compressed six basis
points in the second quarter of fiscal 2018 compared to the prior
linked quarter, reflecting our higher balance of cash and liquid
assets,” said Kevin Lycklama, executive vice president and chief
operating officer. “The prior linked quarter also included the
collection of $104,000 of nonaccrual interest income which
contributed four basis points to our prior quarter’s NIM.” The
interest accretion on purchased loans totaled $273,000 and resulted
in an 10 basis point increase in our NIM during the second fiscal
quarter. Year-to-date, the NIM increased 34 basis points to 4.06%
compared to 3.72% in the first six months of fiscal 2017.
Non-interest income was $2.7 million in the
second fiscal quarter, which was the same as in the preceding
quarter. Non-interest income increased $132,000 compared to $2.6
million in the second quarter a year ago. In the first six months
of fiscal 2018, non-interest income increased to $5.5 million
compared to $5.1 million in the first six months of fiscal 2017.
The year over year increase was primarily due to continued organic
growth as well as an increase in fees and service charges and asset
management fees. The increase in fees and service charges was
primarily due to the collection of $113,000 in loan prepayment
penalties and an increase of $128,000 in debit interchange income.
Other non-interest income decreased during the three and six months
ended September 30, 2017 compared to the same prior year period due
to $407,000 of income from a BOLI claim which was offset by a
$132,000 impairment charge on an investment security during the
prior year period.
Asset management fees were $818,000 in the
second fiscal quarter of 2018 compared to $853,000 in the preceding
quarter and $727,000 in the same quarter a year ago. Riverview
Trust Company’s (“RTC”) assets under management increased to $461.2
million at September 30, 2017 compared to $440.5 million three
months earlier and $401.2 million a year earlier. During the fourth
quarter of fiscal 2017, RTC opened a second office in the Portland
suburb of Lake Oswego, expanding its footprint and product
offerings in the Portland market.
Non-interest expense decreased $415,000 to $8.8
million during the second fiscal quarter of 2018 compared to $9.2
million in the preceding quarter and increased $362,000 from $8.4
million for the same prior year period. The efficiency ratio
improved to 65.2% for the quarter ended September 30, 2017 compared
to 69.7% in the preceding quarter. Second quarter fiscal 2018
operating expenses included $177,000 in transaction-related
expenses in connection with the MBank purchase compared to $429,000
in the preceding quarter. “We have continued to see improvements in
our profitability and performance ratios as we realize the expected
cost savings and operating efficiencies from this transaction,”
said Lycklama.
Balance Sheet Review
With several large loan payoffs during the
quarter, total loans decreased $13.8 million during the quarter to
$783.7 million at September 30, 2017 compared to $797.5 million at
June 30, 2017. Undisbursed construction loans totaled $64.1 million
at September 30, 2017, with the majority of the undisbursed
construction loans expected to fund over the next several quarters.
The commercial loan pipeline totaled $47.7 million at the end of
the quarter.
Total deposits increased $16.8 million to $990.3
million at September 30, 2017 compared to $973.5 million at June
30, 2017. Checking account balances accounted for $16.2 million of
the gain and grew to 45.0% of total deposits compared to 44.2% a
year ago.
Shareholders’ equity was $116.7 million at
September 30, 2017 compared to $113.9 million three months earlier
and $111.0 million a year earlier. Tangible book value per share
was $3.93 at September 30, 2017 compared to $3.80 at June 30, 2017,
and $3.79 at September 30, 2016. A quarterly cash dividend of
$0.0225 per share was paid on October 24, 2017.
Credit Quality
Riverview’s classified assets totaled $7.1
million at September 30, 2017 compared to $8.8 million three months
earlier. At September 30, 2017, the classified asset to total
capital ratio was 6.0% compared to 7.5% three months earlier.
Non-performing loans were $2.7 million, or 0.35%
of total loans, at September 30, 2017 compared to $2.8 million, or
0.35% of total loans, three months earlier. REO balances were
$298,000 at September 30, 2017 unchanged compared to the preceding
quarter.
The allowance for loan losses totaled $10.6
million, representing 1.35% of total loans at September 30, 2017
compared to 1.33% of total loans at June 30, 2017. Included in the
carrying value of loans are net discounts on the MBank purchased
loans which may reduce the need for an allowance for loan losses on
these loans because they are carried at an amount below the
outstanding principal balance. The remaining net discount on these
purchased loans was $2.6 million at September 30, 2017 compared to
$2.8 million in the prior quarter. Net loan recoveries were $20,000
during the second fiscal quarter of 2018 compared to $69,000 in the
preceding quarter.
Capital
Riverview continues to maintain capital levels
well in excess of the regulatory requirements to be categorized as
“well capitalized” with a total risk-based capital ratio of 15.07%,
Tier 1 leverage ratio of 9.75% and tangible common equity to
tangible assets ratio of 7.90% at September 30, 2017.
Non-GAAP Financial
Measures
In addition to results presented in accordance
with generally accepted accounting principles (“GAAP”), this press
release contains certain non-GAAP financial measures. We believe
that certain non-GAAP financial measures provide investors with
information useful in understanding the Company’s financial
performance; however, readers of this report are urged to review
these non-GAAP financial measures in conjunction with GAAP results
as reported.
Financial measures that exclude intangible
assets are non-GAAP measures. To provide investors with a broader
understanding of capital adequacy, Riverview provides non-GAAP
financial measures for tangible common equity, along with the GAAP
measure. Tangible common equity is calculated as shareholders’
equity less goodwill and other intangible assets. In addition,
tangible assets are total assets less goodwill and other intangible
assets.
The following table provides a reconciliation of
ending shareholders’ equity (GAAP) to ending tangible shareholders’
equity (non-GAAP), and ending total assets (GAAP) to ending
tangible assets (non-GAAP).
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
September 30,2017 |
|
June 30, 2017 |
|
September 30,2016 |
|
March 31, 2017 |
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
$ |
116,742 |
|
$ |
113,917 |
|
$ |
110,986 |
|
$ |
111,264 |
Goodwill |
|
|
27,076 |
|
|
27,076 |
|
|
25,572 |
|
|
27,076 |
Core deposit
intangible, net |
|
|
1,219 |
|
|
1,277 |
|
|
- |
|
|
1,335 |
|
Tangible
shareholders' equity |
|
$ |
88,447 |
|
$ |
85,564 |
|
$ |
85,414 |
|
$ |
82,853 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,147,680 |
|
$ |
1,125,161 |
|
$ |
984,045 |
|
$ |
1,133,939 |
Goodwill |
|
|
27,076 |
|
|
27,076 |
|
|
25,572 |
|
|
27,076 |
Core deposit
intangible, net |
|
|
1,219 |
|
|
1,277 |
|
|
- |
|
|
1,335 |
|
Tangible assets |
|
$ |
1,119,385 |
|
$ |
1,096,808 |
|
$ |
958,473 |
|
$ |
1,105,528 |
|
|
|
|
|
|
|
|
|
About Riverview
Riverview Bancorp, Inc. (www.riverviewbank.com)
is headquartered in Vancouver, Washington – just north of Portland,
Oregon on the I-5 corridor. With assets of $1.15 billion at
September 30, 2017, it is the parent company of the 94-year-old
Riverview Community Bank, as well as Riverview Trust Company. The
Bank offers true community banking services, focusing on providing
the highest quality service and financial products to commercial
and retail customers. There are 19 branches, including 14 in the
Portland-Vancouver area and three lending centers. For the past 4
years, Riverview has been named Best Bank by the readers of The
Vancouver Business Journal, The Columbian and The Gresham
Outlook.
“Safe Harbor” statement under the Private
Securities Litigation Reform Act of 1995: This press release
contains forward-looking statements that are subject to risks and
uncertainties, including, but not limited to: expected cost
savings, synergies and other financial benefits from our pending
purchase of certain assets and assumption of certain liabilities of
MBank and Merchants Bancorp pursuant to the Purchase and Assumption
Agreement (the "Agreement") with Merchants Bancorp and its wholly
owned subsidiary MBank (the "transaction") might not be realized
within the expected time frames or at all, and costs or
difficulties relating to integration matters might be greater than
expected; the requisite approval of Merchants Bancorp’s
shareholders and regulatory approvals for the transaction might not
be obtained; the Company’s ability to raise common capital; the
credit risks of lending activities, including changes in the level
and trend of loan delinquencies and write-offs and changes in the
Company’s allowance for loan losses and provision for loan losses
that may be impacted by deterioration in the housing and commercial
real estate markets; changes in general economic conditions, either
nationally or in the Company’s market areas; changes in the levels
of general interest rates, and the relative differences between
short and long term interest rates, deposit interest rates, the
Company’s net interest margin and funding sources; fluctuations in
the demand for loans, the number of unsold homes, land and other
properties and fluctuations in real estate values in the Company’s
market areas; secondary market conditions for loans and the
Company’s ability to sell loans in the secondary market; results of
examinations of us by the Office of Comptroller of the Currency or
other regulatory authorities, including the possibility that any
such regulatory authority may, among other things, require us to
increase the Company’s reserve for loan losses, write-down assets,
change Riverview Community Bank’s regulatory capital position or
affect the Company’s ability to borrow funds or maintain or
increase deposits, which could adversely affect its liquidity and
earnings; legislative or regulatory changes that adversely affect
the Company’s business including changes in regulatory policies and
principles, or the interpretation of regulatory capital or other
rules; the Company’s ability to attract and retain deposits;
further increases in premiums for deposit insurance; the Company’s
ability to control operating costs and expenses; the use of
estimates in determining fair value of certain of the Company’s
assets, which estimates may prove to be incorrect and result in
significant declines in valuation; difficulties in reducing risks
associated with the loans on the Company’s balance sheet; staffing
fluctuations in response to product demand or the implementation of
corporate strategies that affect the Company’s workforce and
potential associated charges; computer systems on which the Company
depends could fail or experience a security breach; the Company’s
ability to retain key members of its senior management team; costs
and effects of litigation, including settlements and judgments; the
Company’s ability to successfully integrate any assets,
liabilities, customers, systems, and management personnel it may in
the future acquire into its operations and the Company’s ability to
realize related revenue synergies and cost savings within expected
time frames and any goodwill charges related thereto; increased
competitive pressures among financial services companies; changes
in consumer spending, borrowing and savings habits; the
availability of resources to address changes in laws, rules, or
regulations or to respond to regulatory actions; the Company’s
ability to pay dividends on its common stock; and interest or
principal payments on its junior subordinated debentures; adverse
changes in the securities markets; inability of key third-party
providers to perform their obligations to us; changes in accounting
policies and practices, as may be adopted by the financial
institution regulatory agencies or the Financial Accounting
Standards Board, including additional guidance and interpretation
on accounting issues and details of the implementation of new
accounting methods; other economic, competitive, governmental,
regulatory, and technological factors affecting the Company’s
operations, pricing, products and services and the other risks
described from time to time in our filings with the SEC.
Such forward-looking statements may include
projections. Any such projections were not prepared in accordance
with published guidelines of the American Institute of Certified
Public Accountants or the Securities Exchange Commission regarding
projections and forecasts nor have such projections been audited,
examined or otherwise reviewed by independent auditors of the
Company. In addition, such projections are based upon many
estimates and inherently subject to significant economic and
competitive uncertainties and contingencies, many of which are
beyond the control of management of the Company. Accordingly,
actual results may be materially higher or lower than those
projected. The inclusion of such projections herein should not be
regarded as a representation by the Company that the projections
will prove to be correct.
The Company cautions readers not to place undue
reliance on any forward-looking statements. Moreover, you should
treat these statements as speaking only as of the date they are
made and based only on information then actually known to the
Company. The Company does not undertake and specifically disclaims
any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements. These risks could
cause our actual results for fiscal 2018 and beyond to differ
materially from those expressed in any forward-looking statements
by, or on behalf of, us, and could negatively affect the Company’s
operating and stock price performance.
|
RIVERVIEW
BANCORP, INC. AND SUBSIDIARY |
|
Consolidated
Balance Sheets |
|
|
|
|
|
|
|
(In thousands, except share
data)
(Unaudited) |
September 30, 2017 |
|
June 30, 2017 |
|
September 30, 2016 |
|
March 31, 2017 |
ASSETS |
|
|
|
Cash
(including interest-earning accounts of $59,315, $14,919, |
$ |
76,245 |
|
|
$ |
34,108 |
|
|
$ |
93,007 |
|
|
$ |
64,613 |
|
$77,509
and $46,245) |
|
|
|
|
|
|
|
Certificate of deposits held for investment |
|
9,797 |
|
|
|
11,042 |
|
|
|
15,275 |
|
|
|
11,042 |
|
Loans
held for sale |
|
347 |
|
|
|
768 |
|
|
|
991 |
|
|
|
478 |
|
Investment securities: |
|
|
|
|
|
|
|
Available
for sale, at estimated fair value |
|
200,584 |
|
|
|
205,012 |
|
|
|
152,251 |
|
|
|
200,214 |
|
Held to
maturity, at amortized cost |
|
46 |
|
|
|
54 |
|
|
|
69 |
|
|
|
64 |
|
Loans
receivable (net of allowance for loan losses of $10,617, |
|
|
|
|
|
|
|
$10,597,
$10,063, and $10,528) |
|
773,087 |
|
|
|
786,913 |
|
|
|
640,873 |
|
|
|
768,904 |
|
Real
estate owned |
|
298 |
|
|
|
298 |
|
|
|
539 |
|
|
|
298 |
|
Prepaid
expenses and other assets |
|
4,227 |
|
|
|
3,901 |
|
|
|
4,334 |
|
|
|
3,815 |
|
Accrued
interest receivable |
|
3,111 |
|
|
|
3,086 |
|
|
|
2,421 |
|
|
|
2,941 |
|
Federal
Home Loan Bank stock, at cost |
|
1,181 |
|
|
|
1,181 |
|
|
|
1,060 |
|
|
|
1,181 |
|
Premises
and equipment, net |
|
15,740 |
|
|
|
16,041 |
|
|
|
14,206 |
|
|
|
16,232 |
|
Deferred
income taxes, net |
|
6,167 |
|
|
|
6,051 |
|
|
|
7,816 |
|
|
|
7,610 |
|
Mortgage
servicing rights, net |
|
406 |
|
|
|
408 |
|
|
|
385 |
|
|
|
398 |
|
Goodwill |
|
27,076 |
|
|
|
27,076 |
|
|
|
25,572 |
|
|
|
27,076 |
|
Core
deposit intangible, net |
|
1,219 |
|
|
|
1,277 |
|
|
|
- |
|
|
|
1,335 |
|
Bank
owned life insurance |
|
28,149 |
|
|
|
27,945 |
|
|
|
25,246 |
|
|
|
27,738 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,147,680 |
|
|
$ |
1,125,161 |
|
|
$ |
984,045 |
|
|
$ |
1,133,939 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
Deposits |
$ |
990,299 |
|
|
$ |
973,483 |
|
|
$ |
838,902 |
|
|
$ |
980,058 |
|
Accrued
expenses and other liabilities |
|
10,838 |
|
|
|
8,302 |
|
|
|
8,175 |
|
|
|
13,080 |
|
Advance
payments by borrowers for taxes and insurance |
|
920 |
|
|
|
596 |
|
|
|
837 |
|
|
|
693 |
|
Junior
subordinated debentures |
|
26,438 |
|
|
|
26,414 |
|
|
|
22,681 |
|
|
|
26,390 |
|
Capital
lease obligation |
|
2,443 |
|
|
|
2,449 |
|
|
|
2,464 |
|
|
|
2,454 |
|
Total
liabilities |
|
1,030,938 |
|
|
|
1,011,244 |
|
|
|
873,059 |
|
|
|
1,022,675 |
|
|
|
|
|
|
|
|
|
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, 2017 - 22,533,912 issued and outstanding; |
|
|
|
|
|
|
|
June 30, 2017 – 22,527,401 issued and outstanding; |
|
225 |
|
|
|
225 |
|
|
|
225 |
|
|
|
225 |
|
September 30, 2016 - 22,507,890 issued and outstanding; |
|
|
|
|
|
|
|
March 31, 2017 – 22,510,890 issued and outstanding; |
|
|
|
|
|
|
|
Additional paid-in capital |
|
64,612 |
|
|
|
64,556 |
|
|
|
64,425 |
|
|
|
64,468 |
|
Retained
earnings |
|
53,034 |
|
|
|
50,482 |
|
|
|
45,207 |
|
|
|
48,335 |
|
Unearned
shares issued to employee stock ownership plan |
|
(26 |
) |
|
|
(52 |
) |
|
|
(129 |
) |
|
|
(77 |
) |
Accumulated other comprehensive income (loss) |
|
(1,103 |
) |
|
|
(1,294 |
) |
|
|
1,258 |
|
|
|
(1,687 |
) |
Total
shareholders’ equity |
|
116,742 |
|
|
|
113,917 |
|
|
|
110,986 |
|
|
|
111,264 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
1,147,680 |
|
|
$ |
1,125,161 |
|
|
$ |
984,045 |
|
|
$ |
1,133,939 |
|
|
RIVERVIEW
BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
Consolidated
Statements of Income |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
(In thousands, except share
data)
(Unaudited) |
Sept. 30, 2017 |
June 30, 2017 |
Sept. 30, 2016 |
|
Sept. 30, 2017 |
Sept. 30, 2016 |
|
INTEREST INCOME: |
|
|
|
Interest
and fees on loans receivable |
$ |
9,994 |
|
$ |
9,789 |
|
$ |
7,631 |
|
$ |
19,783 |
|
$ |
15,071 |
|
Interest
on investment securities - taxable |
|
1,079 |
|
|
1,133 |
|
|
769 |
|
|
2,212 |
|
|
1,489 |
|
Interest
on investment securities - nontaxable |
|
14 |
|
|
14 |
|
|
- |
|
|
28 |
|
|
- |
|
Other
interest and dividends |
|
228 |
|
|
87 |
|
|
130 |
|
|
315 |
|
|
232 |
|
Total
interest and dividend income |
|
11,315 |
|
|
11,023 |
|
|
8,530 |
|
|
22,338 |
|
|
16,792 |
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
Interest
on deposits |
|
313 |
|
|
322 |
|
|
279 |
|
|
635 |
|
|
560 |
|
Interest
on borrowings |
|
277 |
|
|
268 |
|
|
163 |
|
|
545 |
|
|
321 |
|
Total
interest expense |
|
590 |
|
|
590 |
|
|
442 |
|
|
1,180 |
|
|
881 |
|
Net interest
income |
|
10,725 |
|
|
10,433 |
|
|
8,088 |
|
|
21,158 |
|
|
15,911 |
|
Provision for loan
losses |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
Net interest income
after provision for loan losses |
|
10,725 |
|
|
10,433 |
|
|
8,088 |
|
|
21,158 |
|
|
15,911 |
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
Fees and
service charges |
|
1,490 |
|
|
1,407 |
|
|
1,188 |
|
|
2,897 |
|
|
2,511 |
|
Asset
management fees |
|
818 |
|
|
853 |
|
|
727 |
|
|
1,671 |
|
|
1,549 |
|
Net gain
on sale of loans held for sale |
|
157 |
|
|
225 |
|
|
163 |
|
|
382 |
|
|
302 |
|
Bank
owned life insurance income |
|
204 |
|
|
207 |
|
|
190 |
|
|
411 |
|
|
381 |
|
Other,
net |
|
44 |
|
|
46 |
|
|
313 |
|
|
90 |
|
|
352 |
|
Total
non-interest income |
|
2,713 |
|
|
2,738 |
|
|
2,581 |
|
|
5,451 |
|
|
5,095 |
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
5,251 |
|
|
5,422 |
|
|
4,531 |
|
|
10,673 |
|
|
9,171 |
|
Occupancy
and depreciation |
|
1,412 |
|
|
1,346 |
|
|
1,225 |
|
|
2,758 |
|
|
2,362 |
|
Data
processing |
|
580 |
|
|
616 |
|
|
476 |
|
|
1,196 |
|
|
971 |
|
Amortization of core deposit intangible |
|
58 |
|
|
58 |
|
|
- |
|
|
116 |
|
|
- |
|
Advertising and marketing expense |
|
256 |
|
|
234 |
|
|
252 |
|
|
490 |
|
|
445 |
|
FDIC
insurance premium |
|
136 |
|
|
145 |
|
|
74 |
|
|
281 |
|
|
196 |
|
State and
local taxes |
|
177 |
|
|
154 |
|
|
146 |
|
|
331 |
|
|
285 |
|
Telecommunications |
|
103 |
|
|
104 |
|
|
76 |
|
|
207 |
|
|
149 |
|
Professional fees |
|
261 |
|
|
415 |
|
|
453 |
|
|
676 |
|
|
711 |
|
Real
estate owned expenses |
|
3 |
|
|
2 |
|
|
35 |
|
|
5 |
|
|
50 |
|
Other |
|
522 |
|
|
678 |
|
|
1,129 |
|
|
1,200 |
|
|
1,872 |
|
Total
non-interest expense |
|
8,759 |
|
|
9,174 |
|
|
8,397 |
|
|
17,933 |
|
|
16,212 |
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
|
4,679 |
|
|
3,997 |
|
|
2,272 |
|
|
8,676 |
|
|
4,794 |
|
PROVISION FOR INCOME
TAXES |
|
1,620 |
|
|
1,343 |
|
|
592 |
|
|
2,963 |
|
|
1,417 |
|
NET INCOME |
$ |
3,059 |
|
$ |
2,654 |
|
$ |
1,680 |
|
$ |
5,713 |
|
$ |
3,377 |
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.14 |
|
$ |
0.12 |
|
$ |
0.07 |
|
$ |
0.25 |
|
$ |
0.15 |
|
Diluted |
$ |
0.14 |
|
$ |
0.12 |
|
$ |
0.07 |
|
$ |
0.25 |
|
$ |
0.15 |
|
Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
22,518,941 |
|
|
22,504,852 |
|
|
22,474,019 |
|
|
22,511,935 |
|
|
22,470,957 |
|
Diluted |
|
22,609,480 |
|
|
22,589,440 |
|
|
22,530,331 |
|
|
22,599,851 |
|
|
22,522,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands) |
|
At or for the three months ended |
|
At or for the six months ended |
|
|
|
Sept. 30, 2017 |
|
June 30, 2017 |
|
Sept. 30, 2016 |
|
Sept. 30, 2017 |
|
Sept. 30, 2016 |
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
Average
interest–earning assets |
|
$ |
1,056,818 |
|
|
$ |
1,023,196 |
|
|
$ |
867,797 |
|
|
$ |
1,040,098 |
|
$ |
853,691 |
|
Average
interest-bearing liabilities |
|
|
749,172 |
|
|
|
745,172 |
|
|
|
632,445 |
|
|
|
747,183 |
|
|
629,053 |
|
Net average earning
assets |
|
|
307,646 |
|
|
|
278,024 |
|
|
|
235,352 |
|
|
|
292,915 |
|
|
224,638 |
|
Average loans |
|
|
783,213 |
|
|
|
786,317 |
|
|
|
645,479 |
|
|
|
784,756 |
|
|
639,258 |
|
Average deposits |
|
|
992,111 |
|
|
|
961,421 |
|
|
|
809,384 |
|
|
|
976,850 |
|
|
796,178 |
|
Average equity |
|
|
116,675 |
|
|
|
113,661 |
|
|
|
111,516 |
|
|
|
115,176 |
|
|
110,667 |
|
Average tangible equity
(non-GAAP) |
|
|
88,351 |
|
|
|
85,278 |
|
|
|
85,944 |
|
|
|
86,822 |
|
|
85,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
Sept. 30, 2017 |
|
June 30, 2017 |
|
Sept. 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Non-performing
loans |
|
$ |
2,745 |
|
|
$ |
2,792 |
|
|
$ |
2,360 |
|
|
|
|
|
|
Non-performing loans to
total loans |
|
|
0.35 |
% |
|
|
0.35 |
% |
|
|
0.36 |
% |
|
|
|
|
|
Real estate/repossessed
assets owned |
|
$ |
298 |
|
|
$ |
298 |
|
|
$ |
539 |
|
|
|
|
|
|
Non-performing
assets |
|
$ |
3,043 |
|
|
$ |
3,090 |
|
|
$ |
2,899 |
|
|
|
|
|
|
Non-performing assets
to total assets |
|
|
0.27 |
% |
|
|
0.27 |
% |
|
|
0.29 |
% |
|
|
|
|
|
Net loan recoveries in
the quarter |
|
$ |
(20 |
) |
|
$ |
(69 |
) |
|
$ |
(103 |
) |
|
|
|
|
|
Net recoveries in the
quarter/average net loans |
|
|
(0.01 |
)% |
|
|
(0.04 |
)% |
|
|
(0.06 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
$ |
10,617 |
|
|
$ |
10,597 |
|
|
$ |
10,063 |
|
|
|
|
|
|
Average
interest-earning assets to average |
|
|
|
|
|
|
|
|
|
|
|
interest-bearing
liabilities |
|
|
141.06 |
% |
|
|
137.31 |
% |
|
|
137.21 |
% |
|
|
|
|
|
Allowance for loan
losses to |
|
|
|
|
|
|
|
|
|
|
|
non-performing
loans |
|
|
386.78 |
% |
|
|
379.55 |
% |
|
|
426.40 |
% |
|
|
|
|
|
Allowance for loan
losses to total loans |
|
|
1.35 |
% |
|
|
1.33 |
% |
|
|
1.55 |
% |
|
|
|
|
|
Shareholders’ equity to
assets |
|
|
10.17 |
% |
|
|
10.12 |
% |
|
|
11.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk
weighted assets) |
|
|
15.06 |
% |
|
|
14.41 |
% |
|
|
16.05 |
% |
|
|
|
|
|
Tier 1 capital (to risk
weighted assets) |
|
|
13.80 |
% |
|
|
13.16 |
% |
|
|
14.80 |
% |
|
|
|
|
|
Common equity tier 1
(to risk weighted assets) |
|
|
13.80 |
% |
|
|
13.16 |
% |
|
|
14.80 |
% |
|
|
|
|
|
Tier 1 capital (to
average tangible assets) |
|
|
9.70 |
% |
|
|
9.79 |
% |
|
|
10.95 |
% |
|
|
|
|
|
Tangible common equity
(to average tangible assets) |
|
|
7.90 |
% |
|
|
7.80 |
% |
|
|
8.91 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
MIX |
|
Sept. 30, 2017 |
|
June 30, 2017 |
|
Sept. 30, 2016 |
|
March 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
|
$ |
175,127 |
|
|
$ |
171,360 |
|
|
$ |
148,201 |
|
|
$ |
171,152 |
|
|
|
Regular savings |
|
|
134,116 |
|
|
|
126,704 |
|
|
|
104,241 |
|
|
|
126,370 |
|
Money market deposit
accounts |
|
|
274,409 |
|
|
|
274,537 |
|
|
|
249,381 |
|
|
|
289,998 |
|
|
|
Non-interest
checking |
|
|
270,678 |
|
|
|
258,223 |
|
|
|
222,218 |
|
|
|
242,738 |
|
|
|
Certificates of
deposit |
|
|
135,969 |
|
|
|
142,659 |
|
|
|
114,861 |
|
|
|
149,800 |
|
|
|
Total deposits |
|
$ |
990,299 |
|
|
$ |
973,483 |
|
|
$ |
838,902 |
|
|
$ |
980,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND
CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
|
Commercial |
|
Real Estate |
|
Real Estate |
|
& Construction |
|
|
|
Business |
|
Mortgage |
|
Construction |
|
Total |
|
September 30, 2017 |
|
(Dollars in thousands) |
|
Commercial
business |
|
$ |
118,444 |
|
$ |
- |
|
$ |
- |
|
$ |
118,444 |
|
Commercial
construction |
|
|
- |
|
|
- |
|
|
35,923 |
|
|
35,923 |
|
Office buildings |
|
|
- |
|
|
122,826 |
|
|
- |
|
|
122,826 |
|
Warehouse/industrial |
|
|
- |
|
|
77,026 |
|
|
- |
|
|
77,026 |
|
Retail/shopping
centers/strip malls |
|
|
- |
|
|
69,512 |
|
|
- |
|
|
69,512 |
|
Assisted living
facilities |
|
|
- |
|
|
3,026 |
|
|
- |
|
|
3,026 |
|
Single purpose
facilities |
|
|
- |
|
|
168,165 |
|
|
- |
|
|
168,165 |
|
Land |
|
|
- |
|
|
13,745 |
|
|
- |
|
|
13,745 |
|
Multi-family |
|
|
- |
|
|
46,082 |
|
|
- |
|
|
46,082 |
|
One-to-four family
construction |
|
|
- |
|
|
- |
|
|
17,955 |
|
|
17,955 |
|
Total |
|
$ |
118,444 |
|
$ |
500,382 |
|
$ |
53,878 |
|
$ |
672,704 |
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017 |
|
|
|
|
|
|
|
|
|
Commercial
business |
|
$ |
107,371 |
|
$ |
- |
|
$ |
- |
|
$ |
107,371 |
|
Commercial
construction |
|
|
- |
|
|
- |
|
|
27,050 |
|
|
27,050 |
|
Office buildings |
|
|
- |
|
|
121,983 |
|
|
- |
|
|
121,983 |
|
Warehouse/industrial |
|
|
- |
|
|
74,671 |
|
|
- |
|
|
74,671 |
|
Retail/shopping
centers/strip malls |
|
|
- |
|
|
78,757 |
|
|
- |
|
|
78,757 |
|
Assisted living
facilities |
|
|
- |
|
|
3,686 |
|
|
- |
|
|
3,686 |
|
Single purpose
facilities |
|
|
- |
|
|
167,974 |
|
|
- |
|
|
167,974 |
|
Land |
|
|
- |
|
|
15,875 |
|
|
- |
|
|
15,875 |
|
Multi-family |
|
|
- |
|
|
43,715 |
|
|
- |
|
|
43,715 |
|
One-to-four family
construction |
|
|
- |
|
|
- |
|
|
19,107 |
|
|
19,107 |
|
Total |
|
$ |
107,371 |
|
$ |
506,661 |
|
$ |
46,157 |
|
$ |
660,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN
MIX |
|
Sept. 30, 2017 |
|
June 30, 2017 |
|
Sept. 30, 2016 |
|
March 31, 2017 |
|
Commercial and
construction |
|
|
|
|
|
|
|
|
|
Commercial
business |
|
$ |
118,444 |
|
$ |
125,732 |
|
$ |
64,176 |
|
$ |
107,371 |
|
Other real
estate mortgage |
|
|
500,382 |
|
|
513,360 |
|
|
423,729 |
|
|
506,661 |
|
Real estate
construction |
|
|
53,878 |
|
|
43,186 |
|
|
45,059 |
|
|
46,157 |
|
Total
commercial and construction |
|
|
672,704 |
|
|
682,278 |
|
|
532,964 |
|
|
660,189 |
|
Consumer |
|
|
|
|
|
|
|
|
|
Real estate
one-to-four family |
|
|
90,764 |
|
|
91,898 |
|
|
86,321 |
|
|
92,865 |
|
Other
installment |
|
|
20,236 |
|
|
23,334 |
|
|
31,651 |
|
|
26,378 |
|
Total
consumer |
|
|
111,000 |
|
|
115,232 |
|
|
117,972 |
|
|
119,243 |
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
783,704 |
|
|
797,510 |
|
|
650,936 |
|
|
779,432 |
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
Allowance for
loan losses |
|
|
10,617 |
|
|
10,597 |
|
|
10,063 |
|
|
10,528 |
|
Loans
receivable, net |
|
$ |
773,087 |
|
$ |
786,913 |
|
$ |
640,873 |
|
$ |
768,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
Southwest |
|
Other |
|
|
|
|
|
|
|
|
|
Oregon |
|
Washington |
|
Washington |
|
Other |
|
Total |
|
September 30, 2017 |
|
(dollars in thousands) |
|
Non-performing assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
business |
|
$ |
- |
|
$ |
290 |
|
$ |
- |
|
$ |
- |
|
$ |
290 |
|
|
Commercial
real estate |
|
|
1,095 |
|
|
209 |
|
|
- |
|
|
- |
|
|
1,304 |
|
|
Land |
|
|
780 |
|
|
- |
|
|
- |
|
|
- |
|
|
780 |
|
|
Consumer |
|
|
- |
|
|
300 |
|
|
- |
|
|
71 |
|
|
371 |
|
|
Total
non-performing loans |
|
|
1,875 |
|
|
799 |
|
|
- |
|
|
71 |
|
|
2,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REO |
|
|
- |
|
|
- |
|
|
298 |
|
|
- |
|
|
298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
|
$ |
1,875 |
|
$ |
799 |
|
$ |
298 |
|
$ |
71 |
|
$ |
3,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Total |
|
September 30, 2017 |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
development |
|
$ |
490 |
|
$ |
911 |
|
$ |
12,344 |
|
$ |
13,745 |
|
|
Speculative
construction |
|
|
376 |
|
|
401 |
|
|
14,573 |
|
|
15,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total land
development and speculative construction |
|
$ |
866 |
|
$ |
1,312 |
|
$ |
26,917 |
|
$ |
29,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three
months ended |
|
At or for the six months ended |
|
SELECTED OPERATING
DATA |
Sept. 30, 2017 |
|
June 30, 2017 |
|
Sept. 30, 2016 |
|
Sept. 30, 2017 |
|
Sept. 30, 2016 |
|
|
|
|
|
|
|
|
|
Efficiency ratio
(4) |
|
65.18 |
% |
|
|
69.65 |
% |
|
|
78.70 |
% |
|
|
67.39 |
% |
|
|
77.18 |
% |
|
Coverage ratio (6) |
|
122.45 |
% |
|
|
113.72 |
% |
|
|
96.32 |
% |
|
|
117.98 |
% |
|
|
98.14 |
% |
|
Return on average
assets (1) |
|
1.06 |
% |
|
|
0.96 |
% |
|
|
0.70 |
% |
|
|
1.01 |
% |
|
|
0.72 |
% |
|
Return on average
equity (1) |
|
10.40 |
% |
|
|
9.37 |
% |
|
|
5.98 |
% |
|
|
9.89 |
% |
|
|
6.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
SPREAD |
|
|
|
|
|
|
|
|
|
|
Yield on loans |
|
5.06 |
% |
|
|
4.99 |
% |
|
|
4.69 |
% |
|
|
5.03 |
% |
|
|
4.70 |
% |
|
Yield on investment
securities |
|
2.14 |
% |
|
|
2.21 |
% |
|
|
1.96 |
% |
|
|
2.18 |
% |
|
|
1.91 |
% |
|
Total yield on
interest-earning assets |
|
4.25 |
% |
|
|
4.32 |
% |
|
|
3.90 |
% |
|
|
4.29 |
% |
|
|
3.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
interest-bearing deposits |
|
0.17 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
|
|
0.18 |
% |
|
Cost of FHLB advances
and other borrowings |
|
3.81 |
% |
|
|
3.69 |
% |
|
|
2.55 |
% |
|
|
3.75 |
% |
|
|
2.54 |
% |
|
Total cost of
interest-bearing liabilities |
|
0.31 |
% |
|
|
0.32 |
% |
|
|
0.28 |
% |
|
|
0.31 |
% |
|
|
0.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Spread (7) |
|
3.94 |
% |
|
|
4.00 |
% |
|
|
3.62 |
% |
|
|
3.98 |
% |
|
|
3.64 |
% |
|
Net interest
margin |
|
4.03 |
% |
|
|
4.09 |
% |
|
|
3.70 |
% |
|
|
4.06 |
% |
|
|
3.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
Basic earnings per
share (2) |
$ |
0.14 |
|
|
$ |
0.12 |
|
|
$ |
0.07 |
|
|
$ |
0.25 |
|
|
$ |
0.15 |
|
|
Diluted earnings per
share (3) |
|
0.14 |
|
|
|
0.12 |
|
|
|
0.07 |
|
|
|
0.25 |
|
|
|
0.15 |
|
|
Book value per share
(5) |
|
5.18 |
|
|
|
5.06 |
|
|
|
4.93 |
|
|
|
5.18 |
|
|
|
4.93 |
|
|
Tangible book value per
share (5) (non-GAAP) |
|
3.93 |
|
|
|
3.80 |
|
|
|
3.79 |
|
|
|
3.93 |
|
|
|
3.79 |
|
|
Market price per
share: |
|
|
|
|
|
|
|
|
|
|
High for the
period |
$ |
8.48 |
|
|
$ |
7.47 |
|
|
$ |
5.41 |
|
|
$ |
8.48 |
|
|
$ |
5.41 |
|
|
Low for the
period |
|
6.64 |
|
|
|
6.51 |
|
|
|
4.69 |
|
|
|
6.51 |
|
|
|
4.30 |
|
|
Close for period
end |
|
8.40 |
|
|
|
6.64 |
|
|
|
5.38 |
|
|
|
8.40 |
|
|
|
5.38 |
|
|
Cash dividends declared
per share |
|
0.0225 |
|
|
|
0.0225 |
|
|
|
0.0200 |
|
|
|
0.0450 |
|
|
|
0.0400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic (2) |
|
22,518,941 |
|
|
|
22,504,852 |
|
|
|
22,474,019 |
|
|
|
22,511,935 |
|
|
|
22,470,957 |
|
|
Diluted (3) |
|
22,609,480 |
|
|
|
22,589,440 |
|
|
|
22,530,331 |
|
|
|
22,599,851 |
|
|
|
22,522,544 |
|
|
|
|
|
|
|
|
|
|
|
- Amounts for the quarterly periods are annualized.
- Amounts exclude ESOP shares not committed to be released.
- Amounts exclude ESOP shares not committed to be released and
include common stock equivalents.
- Non-interest expense divided by net interest income and
non-interest income.
- Amounts calculated based on shareholders’ equity and include
ESOP shares not committed to be released.
- Net interest income divided by non-interest expense.
- Yield on interest-earning assets less cost of funds on
interest-bearing liabilities.
Contacts: Pat Sheaffer or Kevin Lycklama
Riverview Bancorp, Inc. 360-693-6650
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