Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the
“Company”) today reported earnings increased to $2.0 million, or
$0.09 per diluted share, in the fourth fiscal quarter ended March
31, 2017, compared to $1.4 million, or $0.06 per diluted share, in
the fourth fiscal quarter one year ago. In fiscal 2017, net income
increased to $7.4 million, or $0.33 per diluted share, compared to
$6.4 million, or $0.28 per diluted share, in fiscal 2016.
Fourth Quarter Highlights (at or for the
period ended March 31, 2017)
- On February 17, 2017, completed the purchase and assumption
transaction with MBank.
- Net income increased 44.8% to $2.0 million, or $0.09 per
diluted share, compared to the same period in 2016.
- Net interest margin grew by 30 basis points to 3.97%.
- Total loans increased to $779.4 million at March 31, 2017.
- New loan originations were $67.5 million during the fourth
fiscal quarter.
- Non-performing assets were 0.27% of total assets.
- Total deposits increased to $980.1 million at March 31,
2017.
- Total risk-based capital ratio was 14.06% and Tier 1 leverage
ratio was 10.21%.
“We finished our fiscal year with solid revenue
generation, an expanding net interest margin and steady loan
growth,” stated Pat Sheaffer, chairman and chief executive officer.
“The highlight of the quarter was the closing of our purchase and
assumption agreement with MBank. This transaction provides a unique
opportunity to expand our market presence in Oregon and broaden our
branch network to better serve our new and existing customers. The
integration of the two companies is going smoothly, and we
anticipate substantial EPS accretion in the first full year.”
Due to the timing of the transaction closing,
there was only a partial period of operating results included in
the current quarter. Transaction-related expenses totaled $452,000,
or $0.01 per diluted share after taxes, during the quarter ended
March 31, 2017.
“We expect to see continued improvements in our
operating ratios, including EPS and efficiency, as we realize the
expected cost savings, efficiencies and revenue growth from this
transaction,” continued Sheaffer.
Income
Statement
Net interest income increased $1.9 million to
$9.3 million for the quarter ended March 31, 2017 compared to $7.4
million in the fourth fiscal quarter a year ago. Net interest
income increased $4.6 million to $33.8 million for fiscal year 2017
compared to $29.2 million in fiscal year 2016. The growth in net
interest income was due to the increase in the Company’s
interest-earning assets and the purchase of MBank assets.
Riverview’s net interest margin increased 30
basis points to 3.97% for the quarter ended March 31, 2017 compared
to 3.67% in the same period in 2016 and increased 22 basis points
compared to 3.75% in the linked-quarter ended December 31, 2016.
The increase in the net interest margin was partially due to the
accretion of loan fair value marks from the MBank purchased loans.
During the March 31, 2017 quarter, accretion income totaled
$250,000 and added 11 basis points to the net interest margin.
Accretion income was higher than expected this quarter due to
several large payoffs of MBank purchased loans subsequent to
closing.
“Our net interest margin before the accretion
income also increased 11 basis points compared to the preceding
quarter and expanded 19 basis points compared to a year ago,” said
Kevin Lycklama, executive vice president and chief financial
officer. “The increase in our core net interest margin was
primarily due to the growth in our loan and investment portfolios
along with the addition of the MBank assets.”
Non-interest income increased to $2.6 million in
the fourth fiscal quarter compared to $2.3 million in the preceding
quarter and to $2.2 million in the fourth quarter a year ago.
Asset management fees were $730,000 during the
fourth fiscal quarter compared to $709,000 in the preceding quarter
and $757,000 in the same quarter a year ago. Riverview Trust
Company’s (“RTC”) assets under management increased to $425.9
million at March 31, 2017 compared to $389.1 million a year
earlier. During the March quarter, RTC opened a second office in
the Portland suburb of Lake Oswego. This new location will allow
RTC to expand its footprint and product offerings in the Portland
market.
Non-interest expense increased to $8.9 million
during the fourth fiscal quarter compared to $7.9 million in the
preceding quarter. The increase in non-interest expenses was
primarily due to the addition of the operating expenses of MBank as
well as the transaction-related expenses. The Company expects the
remaining merger related expenses to be recognized by the end of
the first fiscal quarter of 2018. For the full year, non-interest
expense increased to $33.0 million compared to $29.9 million in
fiscal 2016.
Balance Sheet Review
“The loan portfolio benefitted from both the new
loans acquired from MBank, as well as solid organic loan growth
during the quarter,” said Ron Wysaske, president and chief
operating officer. “Loan growth remains steady, with originations
totaling $67.5 million during the quarter.”
Total loans increased $115.1 million during the
quarter to $779.4 million at March 31, 2017 compared to $664.3
million at December 31, 2016 due primarily to the MBank purchase.
Excluding the loans acquired from MBank, total loans increased
$11.1 million, or 6.8% annualized, during the quarter ended March
31, 2017. Total loans have grown $154.6 million, or 24.7%, during
the past fiscal year.
The commercial loan pipeline totaled $52.5
million at the end of the quarter. Undisbursed construction loans
totaled $47.3 million at March 31, 2017, with the majority of the
undisbursed construction loans expected to fund during the next few
quarters.
Total deposits increased $139.7 million during
the quarter to $980.1 million at March 31, 2017 due primarily to
the MBank purchase. Excluding the deposits assumed from MBank,
total deposits increased $6.1 million, or 2.9% annualized, during
the quarter ended March 31, 2017. Total deposits have increased
$200.3 million, or 25.7%, during fiscal year 2017. Checking account
balances represented 42.2% of total deposits compared to 41.5% a
year ago.
Shareholders’ equity was $111.3 million at March
31, 2017 compared to $109.4 million three months earlier and $108.3
million a year ago. Tangible book value per share was $3.68 at
March 31, 2017 compared to $3.72 at December 31, 2016 and $3.67 at
March 31, 2016. A quarterly cash dividend of $0.02 per share was
paid on April 25, 2017.
Credit Quality
“The credit quality of our loan portfolio
remains strong,” added Lycklama. “Following the addition of the
MBank loan portfolio, classified assets totaled $10.3 million
compared to $4.3 million at December 31, 2016. At March 31, 2017,
the classified asset to total capital ratio was 9.1% compared to
3.8% three months earlier.”
Non-performing loans were $2.7 million, or 0.35%
of total loans, at March 31, 2017 compared to $2.8 million, or
0.42% of total loans, three months earlier. REO balances were
$298,000 at March 31, 2017, which were unchanged compared to the
preceding quarter. There were no additions to REO during the
quarter.
The allowance for loan losses at March 31, 2017
totaled $10.5 million, representing 1.35% of total loans, compared
to 1.55% of total loans at December 31, 2016. The decrease in the
allowance to total loans was a result of recording the MBank
purchased loans at their fair value, which includes all the credit
risk adjustments. Management considers the allowance for loan
losses to be adequate at March 31, 2017 to cover probable losses
inherent in the loan portfolio. Net loan recoveries were $239,000
during the fourth fiscal quarter of 2017 compared to $226,000 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 14.06%,
Tier 1 leverage ratio of 10.21% and tangible common equity to
tangible assets ratio of 7.49% at March 31, 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. Riverview
believes that certain non-GAAP financial measures provide investors
with information useful in understanding the Company’s financial
performance; however, readers of this report are urged to review
these non-GAAP financial measures in conjunction with GAAP results
as reported.
Financial measures that exclude intangible
assets are non-GAAP measures. To provide investors with a broader
understanding of capital adequacy, Riverview provides non-GAAP
financial measures for tangible common equity, along with the GAAP
measure. Tangible common equity is calculated as shareholders’
equity less goodwill and other intangible assets. In addition,
tangible assets are total assets less goodwill and other intangible
assets.
The following table provides a reconciliation of
ending shareholders’ equity (GAAP) to ending tangible shareholders’
equity (non-GAAP), and ending total assets (GAAP) to ending
tangible assets (non-GAAP).
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
|
|
|
|
|
|
Shareholders'
equity |
|
$ |
111,264 |
|
$ |
109,400 |
|
$ |
108,273 |
Goodwill |
|
|
27,076 |
|
|
25,572 |
|
|
25,572 |
Core deposit
intangible, net |
|
|
1,335 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity |
|
$ |
82,853 |
|
$ |
83,828 |
|
$ |
82,701 |
|
|
|
|
|
|
|
Total assets |
|
$ |
1,133,939 |
|
$ |
985,669 |
|
$ |
921,229 |
Goodwill |
|
|
27,076 |
|
|
25,572 |
|
|
25,572 |
Core deposit
intangible, net |
|
|
1,335 |
|
|
- |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Tangible
assets |
|
$ |
1,105,528 |
|
$ |
960,097 |
|
$ |
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 $1.13 billion at March
31, 2017, 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 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) |
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
ASSETS |
|
|
|
Cash
(including interest-earning accounts of $46,245, $14,302 |
$ |
64,613 |
|
|
$ |
28,262 |
|
|
$ |
55,400 |
|
and
$40,317) |
|
|
|
|
|
Certificate of deposits held for investment |
|
11,042 |
|
|
|
11,291 |
|
|
|
16,769 |
|
Loans
held for sale |
|
478 |
|
|
|
1,679 |
|
|
|
503 |
|
Investment securities: |
|
|
|
|
|
Available
for sale, at estimated fair value |
|
200,214 |
|
|
|
207,271 |
|
|
|
150,690 |
|
Held to
maturity, at amortized cost |
|
64 |
|
|
|
67 |
|
|
|
75 |
|
Loans
receivable (net of allowance for loan losses of $10,528, $10,289
|
|
|
|
|
|
and
$9,885) |
|
768,904 |
|
|
|
654,053 |
|
|
|
614,934 |
|
Real
estate owned |
|
298 |
|
|
|
298 |
|
|
|
595 |
|
Prepaid
expenses and other assets |
|
3,815 |
|
|
|
4,832 |
|
|
|
3,405 |
|
Accrued
interest receivable |
|
2,941 |
|
|
|
2,846 |
|
|
|
2,384 |
|
Federal
Home Loan Bank stock, at cost |
|
1,181 |
|
|
|
1,060 |
|
|
|
1,060 |
|
Premises
and equipment, net |
|
16,232 |
|
|
|
13,953 |
|
|
|
14,595 |
|
Deferred
income taxes, net |
|
7,610 |
|
|
|
8,665 |
|
|
|
9,189 |
|
Mortgage
servicing rights, net |
|
398 |
|
|
|
390 |
|
|
|
380 |
|
Goodwill |
|
27,076 |
|
|
|
25,572 |
|
|
|
25,572 |
|
Core
deposit intangible, net |
|
1,335 |
|
|
|
- |
|
|
|
- |
|
Bank
owned life insurance |
|
27,738 |
|
|
|
25,430 |
|
|
|
25,678 |
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,133,939 |
|
|
$ |
985,669 |
|
|
$ |
921,229 |
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits |
$ |
980,058 |
|
|
$ |
840,391 |
|
|
$ |
779,803 |
|
Accrued
expenses and other liabilities |
|
13,080 |
|
|
|
10,450 |
|
|
|
7,388 |
|
Advance
payments by borrowers for taxes and insurance |
|
693 |
|
|
|
288 |
|
|
|
609 |
|
Junior
subordinated debentures |
|
26,390 |
|
|
|
22,681 |
|
|
|
22,681 |
|
Capital
lease obligations |
|
2,454 |
|
|
|
2,459 |
|
|
|
2,475 |
|
Total
liabilities |
|
1,022,675 |
|
|
|
876,269 |
|
|
|
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, |
|
|
|
|
|
March 31,
2017 – 22,510,890 issued and outstanding; |
|
225 |
|
|
|
225 |
|
|
|
225 |
|
December
31, 2016 - 22,510,890 issued and outstanding; |
|
|
|
|
|
March 31,
2016 – 22,507,890 issued and outstanding; |
|
|
|
|
|
Additional paid-in capital |
|
64,468 |
|
|
|
64,448 |
|
|
|
64,418 |
|
Retained
earnings |
|
48,335 |
|
|
|
46,750 |
|
|
|
42,728 |
|
Unearned
shares issued to employee stock ownership plan |
|
(77 |
) |
|
|
(103 |
) |
|
|
(181 |
) |
Accumulated other comprehensive income (loss) |
|
(1,687 |
) |
|
|
(1,920 |
) |
|
|
1,083 |
|
Total
shareholders’ equity |
|
111,264 |
|
|
|
109,400 |
|
|
|
108,273 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY |
$ |
1,133,939 |
|
|
$ |
985,669 |
|
|
$ |
921,229 |
|
|
|
|
|
|
|
|
|
|
RIVERVIEW
BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
Consolidated
Statements of Income |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
(In thousands, except share
data)
(Unaudited) |
March 31, 2017 |
Dec. 31, 2016 |
March 31, 2016 |
|
March 31, 2017 |
March 31, 2016 |
|
INTEREST INCOME: |
|
|
|
Interest
and fees on loans receivable |
$ |
8,655 |
$ |
7,883 |
|
$ |
7,037 |
|
|
$ |
31,609 |
$ |
27,795 |
|
|
Interest
on investment securities - taxable |
|
1,115 |
|
946 |
|
|
723 |
|
|
|
3,550 |
|
2,709 |
|
|
Interest
on investment securities - nontaxable |
|
14 |
|
11 |
|
|
- |
|
|
|
25 |
|
- |
|
|
Other
interest and dividends |
|
99 |
|
112 |
|
|
104 |
|
|
|
443 |
|
444 |
|
|
Total
interest and dividend income |
|
9,883 |
|
8,952 |
|
|
7,864 |
|
|
|
35,627 |
|
30,948 |
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
Interest
on deposits |
|
314 |
|
277 |
|
|
280 |
|
|
|
1,151 |
|
1,173 |
|
|
Interest
on borrowings |
|
224 |
|
173 |
|
|
152 |
|
|
|
718 |
|
569 |
|
|
Total
interest expense |
|
538 |
|
450 |
|
|
432 |
|
|
|
1,869 |
|
1,742 |
|
|
Net interest
income |
|
9,345 |
|
8,502 |
|
|
7,432 |
|
|
|
33,758 |
|
29,206 |
|
|
Recapture of loan
losses |
|
- |
|
- |
|
|
(350 |
) |
|
|
- |
|
(1,150 |
) |
|
|
|
|
|
|
|
|
|
Net interest income
after recapture of loan losses |
|
9,345 |
|
8,502 |
|
|
7,782 |
|
|
|
33,758 |
|
30,356 |
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
Fees and
service charges |
|
1,362 |
|
1,304 |
|
|
1,106 |
|
|
|
5,177 |
|
4,846 |
|
|
Asset
management fees |
|
730 |
|
709 |
|
|
757 |
|
|
|
2,988 |
|
3,212 |
|
|
Net gain
on sale of loans held for sale |
|
163 |
|
191 |
|
|
100 |
|
|
|
656 |
|
525 |
|
|
Bank
owned life insurance income |
|
194 |
|
185 |
|
|
190 |
|
|
|
760 |
|
770 |
|
|
Other,
net |
|
137 |
|
(56 |
) |
|
40 |
|
|
|
433 |
|
22 |
|
|
Total
non-interest income |
|
2,586 |
|
2,333 |
|
|
2,193 |
|
|
|
10,014 |
|
9,375 |
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
5,335 |
|
4,850 |
|
|
4,592 |
|
|
|
19,356 |
|
17,694 |
|
|
Occupancy
and depreciation |
|
1,299 |
|
1,158 |
|
|
1,204 |
|
|
|
4,819 |
|
4,727 |
|
|
Data
processing |
|
578 |
|
562 |
|
|
430 |
|
|
|
2,111 |
|
1,775 |
|
|
Amortization of core deposit intangible |
|
27 |
|
- |
|
|
- |
|
|
|
27 |
|
2 |
|
|
Advertising and marketing expense |
|
146 |
|
163 |
|
|
136 |
|
|
|
754 |
|
669 |
|
|
FDIC
insurance premium |
|
83 |
|
77 |
|
|
125 |
|
|
|
356 |
|
500 |
|
|
State and
local taxes |
|
154 |
|
170 |
|
|
148 |
|
|
|
609 |
|
510 |
|
|
Telecommunications |
|
93 |
|
75 |
|
|
74 |
|
|
|
317 |
|
292 |
|
|
Professional fees |
|
562 |
|
355 |
|
|
231 |
|
|
|
1,628 |
|
904 |
|
|
Real
estate owned expenses |
|
2 |
|
2 |
|
|
56 |
|
|
|
54 |
|
567 |
|
|
Other |
|
639 |
|
439 |
|
|
571 |
|
|
|
2,950 |
|
2,307 |
|
|
Total
non-interest expense |
|
8,918 |
|
7,851 |
|
|
7,569 |
|
|
|
32,981 |
|
29,947 |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
|
3,013 |
|
2,984 |
|
|
2,406 |
|
|
|
10,791 |
|
9,784 |
|
|
PROVISION FOR INCOME
TAXES |
|
979 |
|
991 |
|
|
1,001 |
|
|
|
3,387 |
|
3,426 |
|
|
NET INCOME |
$ |
2,034 |
$ |
1,993 |
|
$ |
1,405 |
|
|
$ |
7,404 |
$ |
6,358 |
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.09 |
$ |
0.09 |
|
$ |
0.06 |
|
|
$ |
0.33 |
$ |
0.28 |
|
|
Diluted |
$ |
0.09 |
$ |
0.09 |
|
$ |
0.06 |
|
|
$ |
0.33 |
$ |
0.28 |
|
|
Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
22,489,336 |
|
22,490,433 |
|
|
22,461,703 |
|
|
|
22,478,306 |
|
22,450,252 |
|
|
Diluted |
|
22,585,976 |
|
22,563,712 |
|
|
22,502,111 |
|
|
|
22,548,340 |
|
22,494,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands) |
|
At or for the three months ended |
|
At or for the twelve months ended |
|
|
|
March 31, 2017 |
|
Dec. 31, 2016 |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2016 |
|
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
Average
interest–earning assets |
|
$ |
955,957 |
|
|
$ |
900,542 |
|
|
$ |
815,431 |
|
|
$ |
890,716 |
|
$ |
795,875 |
|
Average
interest-bearing liabilities |
|
|
710,266 |
|
|
|
652,195 |
|
|
|
610,568 |
|
|
|
654,911 |
|
|
598,007 |
|
Net average earning
assets |
|
|
245,691 |
|
|
|
248,347 |
|
|
|
204,863 |
|
|
|
235,805 |
|
|
197,868 |
|
Average loans |
|
|
716,452 |
|
|
|
658,212 |
|
|
|
616,015 |
|
|
|
663,069 |
|
|
593,415 |
|
Average deposits |
|
|
894,284 |
|
|
|
839,588 |
|
|
|
759,836 |
|
|
|
831,310 |
|
|
743,558 |
|
Average equity |
|
|
111,054 |
|
|
|
112,444 |
|
|
|
108,023 |
|
|
|
111,210 |
|
|
107,133 |
|
Average tangible
equity |
|
|
85,450 |
|
|
|
86,872 |
|
|
|
82,066 |
|
|
|
85,630 |
|
|
81,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
March 31, 2017 |
|
Dec. 31, 2016 |
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Non-performing
loans |
|
$ |
2,749 |
|
|
$ |
2,787 |
|
|
$ |
2,714 |
|
|
|
|
|
|
Non-performing loans to
total loans |
|
|
0.35 |
% |
|
|
0.42 |
% |
|
|
0.43 |
% |
|
|
|
|
|
Real estate/repossessed
assets owned |
|
$ |
298 |
|
|
$ |
298 |
|
|
$ |
595 |
|
|
|
|
|
|
Non-performing
assets |
|
$ |
3,047 |
|
|
$ |
3,085 |
|
|
$ |
3,309 |
|
|
|
|
|
|
Non-performing assets
to total assets |
|
|
0.27 |
% |
|
|
0.31 |
% |
|
|
0.36 |
% |
|
|
|
|
|
Net loan charge-offs in
the quarter |
|
$ |
(239 |
) |
|
$ |
(266 |
) |
|
$ |
(62 |
) |
|
|
|
|
|
Net charge-offs in the
quarter/average net loans |
|
|
(0.14 |
)% |
|
|
(0.14 |
)% |
|
|
(0.04 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses |
|
$ |
10,528 |
|
|
$ |
10,289 |
|
|
$ |
9,885 |
|
|
|
|
|
|
Average
interest-earning assets to average |
|
|
|
|
|
|
|
|
|
|
|
interest-bearing
liabilities |
|
|
134.59 |
% |
|
|
138.08 |
% |
|
|
133.55 |
% |
|
|
|
|
|
Allowance for loan
losses to |
|
|
|
|
|
|
|
|
|
|
|
non-performing
loans |
|
|
382.98 |
% |
|
|
369.18 |
% |
|
|
364.22 |
% |
|
|
|
|
|
Allowance for loan
losses to total loans |
|
|
1.35 |
% |
|
|
1.55 |
% |
|
|
1.58 |
% |
|
|
|
|
|
Shareholders’ equity to
assets |
|
|
9.81 |
% |
|
|
11.10 |
% |
|
|
11.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk
weighted assets) |
|
|
14.06 |
% |
|
|
15.93 |
% |
|
|
16.07 |
% |
|
|
|
|
|
Tier 1 capital (to risk
weighted assets) |
|
|
12.81 |
% |
|
|
14.68 |
% |
|
|
14.81 |
% |
|
|
|
|
|
Common equity tier 1
(to risk weighted assets) |
|
|
12.81 |
% |
|
|
14.68 |
% |
|
|
14.81 |
% |
|
|
|
|
|
Tier 1 capital (to
leverage assets) |
|
|
10.21 |
% |
|
|
10.81 |
% |
|
|
11.18 |
% |
|
|
|
|
|
Tangible common equity
(to tangible assets) |
|
|
7.49 |
% |
|
|
8.73 |
% |
|
|
9.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
MIX |
|
March 31, 2017 |
|
Dec. 31, 2016 |
|
March 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
|
$ |
171,152 |
|
|
$ |
167,522 |
|
|
$ |
144,740 |
|
|
|
|
|
|
Regular savings |
|
|
126,370 |
|
|
|
109,629 |
|
|
|
96,994 |
|
|
|
|
Money market deposit
accounts |
|
|
289,998 |
|
|
|
250,900 |
|
|
|
239,544 |
|
|
|
|
|
|
Non-interest
checking |
|
|
242,738 |
|
|
|
202,080 |
|
|
|
179,143 |
|
|
|
|
|
|
Certificates of
deposit |
|
|
149,800 |
|
|
|
110,260 |
|
|
|
119,382 |
|
|
|
|
|
|
Total deposits |
|
$ |
980,058 |
|
|
$ |
840,391 |
|
|
$ |
779,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND
CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
|
|
|
Real Estate |
|
Real Estate |
|
& Construction |
|
|
|
Commercial |
|
Mortgage |
|
Construction |
|
Total |
|
March 31, 2017 |
|
(Dollars in thousands) |
|
Commercial |
|
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
March 31, 2017 |
|
Dec. 31, 2016 |
|
March 31, 2016 |
|
|
|
|
|
(Dollars in Thousands) |
|
|
|
Commercial and
construction |
|
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
107,371 |
|
$ |
64,401 |
|
$ |
69,397 |
|
|
|
Other
real estate mortgage |
|
|
506,661 |
|
|
432,782 |
|
|
399,527 |
|
|
|
Real
estate construction |
|
|
46,157 |
|
|
52,707 |
|
|
26,731 |
|
|
|
Total
commercial and construction |
|
|
660,189 |
|
|
549,890 |
|
|
495,655 |
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
Real
estate one-to-four family |
|
|
92,865 |
|
|
85,956 |
|
|
88,780 |
|
|
|
Other
installment |
|
|
26,378 |
|
|
28,496 |
|
|
40,384 |
|
|
|
Total
consumer |
|
|
119,243 |
|
|
114,452 |
|
|
129,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
779,432 |
|
|
664,342 |
|
|
624,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
|
10,528 |
|
|
10,289 |
|
|
9,885 |
|
|
|
Loans
receivable, net |
|
$ |
768,904 |
|
$ |
654,053 |
|
$ |
614,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
Southwest |
|
Other |
|
|
|
|
|
|
|
Oregon |
|
Washington |
|
Washington |
|
Other |
|
Total |
|
March 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
business |
|
$ |
- |
|
$ |
294 |
|
$ |
- |
|
$ |
- |
|
$ |
294 |
|
|
Commercial
real estate |
|
|
1,128 |
|
|
214 |
|
|
- |
|
|
- |
|
|
1,342 |
|
|
Land |
|
|
801 |
|
|
- |
|
|
- |
|
|
- |
|
|
801 |
|
|
Consumer |
|
|
- |
|
|
170 |
|
|
- |
|
|
142 |
|
|
312 |
|
|
Total
non-performing loans |
|
|
1,929 |
|
|
678 |
|
|
- |
|
|
142 |
|
|
2,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REO |
|
|
- |
|
|
- |
|
|
298 |
|
|
- |
|
|
298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
|
$ |
1,929 |
|
$ |
678 |
|
$ |
298 |
|
$ |
142 |
|
$ |
3,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Total |
|
March 31, 2017 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
development |
|
$ |
223 |
|
$ |
2,523 |
|
$ |
13,129 |
|
$ |
15,875 |
|
|
Speculative
construction |
|
|
945 |
|
|
3 |
|
|
14,492 |
|
|
15,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total land
development and speculative construction |
|
$ |
1,168 |
|
$ |
2,526 |
|
$ |
27,621 |
|
$ |
31,315 |
|
|
|
|
|
|
|
|
|
|
|
At or for the three months ended |
|
At or for the twelve months ended |
|
SELECTED OPERATING
DATA |
March 31, 2017 |
Dec. 31, 2016 |
March 31, 2016 |
|
March 31, 2017 |
March 31, 2016 |
|
|
|
|
|
|
|
Efficiency ratio
(4) |
|
74.75 |
% |
|
72.46 |
% |
|
78.64 |
% |
|
|
75.35 |
% |
|
77.62 |
% |
|
Coverage ratio (6) |
|
104.79 |
% |
|
108.29 |
% |
|
98.19 |
% |
|
|
102.36 |
% |
|
97.53 |
% |
|
Return on average
assets (1) |
|
0.79 |
% |
|
0.80 |
% |
|
0.63 |
% |
|
|
0.76 |
% |
|
0.72 |
% |
|
Return on average
equity (1) |
|
7.43 |
% |
|
7.03 |
% |
|
5.23 |
% |
|
|
6.66 |
% |
|
5.93 |
% |
|
|
|
|
|
|
|
|
|
NET INTEREST
SPREAD |
|
|
|
|
|
|
|
Yield on loans |
|
4.90 |
% |
|
4.75 |
% |
|
4.59 |
% |
|
|
4.77 |
% |
|
4.68 |
% |
|
Yield on investment
securities |
|
2.23 |
% |
|
2.06 |
% |
|
1.91 |
% |
|
|
2.04 |
% |
|
2.01 |
% |
|
Total
yield on interest earning assets |
|
4.20 |
% |
|
3.95 |
% |
|
3.88 |
% |
|
|
4.00 |
% |
|
3.89 |
% |
|
|
|
|
|
|
|
|
|
Cost of interest
bearing deposits |
|
0.19 |
% |
|
0.18 |
% |
|
0.19 |
% |
|
|
0.18 |
% |
|
0.20 |
% |
|
Cost of FHLB advances
and other borrowings |
|
3.19 |
% |
|
2.73 |
% |
|
2.43 |
% |
|
|
2.76 |
% |
|
2.27 |
% |
|
Total
cost of interest bearing liabilities |
|
0.31 |
% |
|
0.27 |
% |
|
0.28 |
% |
|
|
0.28 |
% |
|
0.29 |
% |
|
|
|
|
|
|
|
|
|
Spread (7) |
|
3.89 |
% |
|
3.68 |
% |
|
3.60 |
% |
|
|
3.72 |
% |
|
3.60 |
% |
|
Net interest
margin |
|
3.97 |
% |
|
3.75 |
% |
|
3.67 |
% |
|
|
3.79 |
% |
|
3.67 |
% |
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
Basic earnings per
share (2) |
$ |
0.09 |
|
$ |
0.09 |
|
$ |
0.06 |
|
|
$ |
0.33 |
|
$ |
0.28 |
|
|
Diluted earnings per
share (3) |
|
0.09 |
|
|
0.09 |
|
|
0.06 |
|
|
|
0.33 |
|
|
0.28 |
|
|
Book value per share
(5) |
|
4.94 |
|
|
4.86 |
|
|
4.81 |
|
|
|
4.94 |
|
|
4.81 |
|
|
Tangible book value per
share (5) |
|
3.68 |
|
|
3.72 |
|
|
3.67 |
|
|
|
3.68 |
|
|
3.67 |
|
|
Market price per
share: |
|
|
|
|
|
|
|
High for
the period |
$ |
7.90 |
|
$ |
7.61 |
|
$ |
4.76 |
|
|
$ |
7.90 |
|
$ |
5.11 |
|
|
Low for
the period |
|
6.87 |
|
|
5.23 |
|
|
4.20 |
|
|
|
4.30 |
|
|
4.08 |
|
|
Close for
period end |
|
7.15 |
|
|
7.00 |
|
|
4.20 |
|
|
|
7.15 |
|
|
4.20 |
|
|
Cash dividends declared
per share |
|
0.02000 |
|
|
0.02000 |
|
|
0.02000 |
|
|
|
0.08000 |
|
|
0.06500 |
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding: |
|
|
|
|
|
|
|
Basic
(2) |
|
22,489,336 |
|
|
22,490,433 |
|
|
22,461,703 |
|
|
|
22,478,306 |
|
|
22,450,252 |
|
|
Diluted
(3) |
|
22,585,976 |
|
|
22,563,712 |
|
|
22,502,111 |
|
|
|
22,548,340 |
|
|
22,494,151 |
|
|
(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)
Historical Stock Chart
From Mar 2024 to Apr 2024
Riverview Bancorp (NASDAQ:RVSB)
Historical Stock Chart
From Apr 2023 to Apr 2024