Press Release

Riverview Bancorp Earnings Increase to $3.1 Million in Second Fiscal Quarter 2018; Results Highlighted by Strong Net Interest Income and Improved Operating Efficiencies

Company Release - 10/26/2017 4:00 PM ET

VANCOUVER, Wash., Oct. 26, 2017 (GLOBE NEWSWIRE) -- 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 DATASept. 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  
         

 

  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 or Kevin Lycklama                                                                         
                    Riverview Bancorp, Inc. 360-693-6650 

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Source: Riverview Bancorp Inc