Press Release

Riverview Bancorp Reports Earnings for Third Fiscal Quarter 2018 Pre-Tax Income increases 72% Year-Over-Year

Company Release - 1/25/2018 4:00 PM ET

VANCOUVER, Wash., Jan. 25, 2018 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the “Company”) today reported net income of $1.5 million, or $0.07 per diluted share, in its third fiscal quarter ended December 31, 2017. This compares to net income of $3.1 million, or $0.14 per diluted share, in the preceding quarter and net income of $2.0 million, or $0.09 per diluted share, in the third fiscal quarter a year ago. Net income was impacted during the current quarter due to a valuation adjustment of the Company’s net deferred tax asset along with the use of a lower blended tax rate, which resulted in an additional net income tax expense of $1.8 million, or $0.08 per diluted share. Pre-tax income for the third fiscal quarter of 2018 was $5.1 million, which was a $449,000, or 9.6%, increase compared to the preceding quarter and a $2.1 million, or 71.8%, increase from the year ago quarter.

In the first nine months of fiscal year 2018, Riverview’s net income increased to $7.2 million, or $0.32 per diluted share, compared to $5.4 million, or $0.24 per diluted share, in the first nine months of fiscal year 2017.

“Riverview had another successful quarter with strong net interest income generation, an expanding net interest margin and continued operating efficiencies,” stated Pat Sheaffer, chairman, chief executive officer and president. “With the successful integration of the MBank transaction behind us, our focus remains on expanding our franchise. We will continue to look for growth opportunities in the Portland area and its surrounding markets.”

As a result of the Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017, Riverview revalued its deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of the Tax Act. Based on its preliminary analysis, Riverview recorded a one-time net tax charge of $1.8 million related to the lower corporate tax rate adopted in the Tax Act. This increase in income tax expense was reflected in Riverview’s operating results for the third fiscal quarter of 2018 and was in addition to the normal provision for income tax related to pre-tax net operating income.

“We recorded an additional net income tax expense of $1.8 million, or $0.08 per diluted share, due to the passage of the Tax Cuts and Jobs Act in the third fiscal quarter of 2018,” said Kevin Lycklama, executive vice president and chief operating officer. “Going forward, we expect to fully recoup this additional expense within the next fiscal year, due to the lower corporate tax rate. The effective tax rate for our fourth fiscal quarter of 2018 is expected to be approximately 31.5% due to our use of a blended tax rate for the remainder of this fiscal year. We expect our effective tax rate will decline to approximately 22.5% beginning on April 1, 2018 at the start of our new fiscal year.”

Third Quarter Highlights (at or for the period ended December 31, 2017)

  • Net interest margin (NIM) expanded by three basis points to 4.06% compared to the preceding quarter and expanded 31 basis points compared to the third quarter a year ago.
  • Total loans increased $13.6 million during the quarter to $797.3 million.
  • Non-performing assets were 0.26% of total assets.
  • Efficiency ratio improved to 62.5%.
  • Tangible book value per share was $3.93.
  • Total risk-based capital ratio was 15.07% and Tier 1 leverage ratio was 9.82%.
  • Declared quarterly cash dividend of $0.03 per share, generating a current dividend yield of 1.28% based on the market price on January 23, 2018.

Income Statement

Riverview’s net interest income was $10.8 million in the third fiscal quarter of 2018, a $71,000 increase compared to $10.7 million in the preceding quarter and a $2.3 million increase compared to $8.5 million in the third fiscal quarter a year ago. In the first nine months of fiscal 2018, net interest income increased $7.5 million to $32.0 million compared to $24.4 million in the first nine months of fiscal 2017.

“Our net interest margin expanded three basis points in the third quarter of fiscal 2018 compared to the prior linked quarter reflecting a lower balance of cash and liquid assets earning a nominal yield,” said Lycklama. The interest accretion on purchased loans totaled $175,000 and resulted in a six basis point increase in the NIM during the third fiscal quarter. Fiscal year-to-date, the NIM increased 33 basis points to 4.06% compared to 3.73% in the first nine months of fiscal 2017.

Non-interest income was $2.9 million in the third fiscal quarter, a $177,000 increase compared to $2.7 million the prior quarter and a $557,000 increase compared to $2.3 million in the same quarter a year ago. In the first nine months of fiscal 2018, non-interest income increased to $8.3 million compared to $7.4 million in the first nine months of fiscal 2017. The nine month year over year increase was primarily due to an increase in fees and service charges and asset management fees.

Asset management fees were $911,000 in the third fiscal quarter of 2018 compared to $818,000 in the preceding quarter and $709,000 in the third fiscal quarter a year ago. Riverview Trust Company’s (“RTC”) assets under management increased to $490.1 million at December 31, 2017 compared to $461.2 million three months earlier and $403.3 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 $201,000 to $8.6 million during the third fiscal quarter of 2018 compared to $8.8 million in the preceding quarter and increased $707,000 from $7.9 million for the same prior year period mainly due to the MBank transaction. There were no transaction related costs from the MBank transaction in the current quarter compared to $177,000 in transaction related costs during the preceding quarter. The efficiency ratio improved to 62.5% for the quarter ended December 31, 2017, compared to 65.2% in the preceding quarter and 72.5% in the third fiscal quarter a year ago. “With all MBank transaction costs behind us, we expect to continue to capitalize on the cost savings and operating efficiencies associated with a larger organization,” said Lycklama. “We will continue to look for other opportunities to improve profitability and increase shareholder value.”

Balance Sheet Review

Total loans increased $13.6 million during the quarter to $797.3 million at December 31, 2017 compared to $783.7 million at September 30, 2017, and increased $133.0 million compared to $664.3 million a year ago. The growth in the loan portfolio was primarily concentrated in commercial business, multi-family and warehouse/industrial loans. Undisbursed construction loans totaled $61.8 million at December 31, 2017, with the majority of the undisbursed construction loans expected to fund over the next several quarters. The commercial loan pipeline totaled $61.6 million at the end of the quarter.

Total deposits increased $131.8 million to $972.2 million at December 31, 2017 compared to $840.4 million a year ago but decreased compared to $990.3 million at September 30, 2017. The decrease compared to the prior quarter end was primarily due to the timing of deposit transactions. Core deposits represent 98.0% of total deposits at December 31, 2017.

Shareholders’ equity was $116.8 million at December 31, 2017 compared to $116.7 million three months earlier and $109.4 million a year earlier. Tangible book value per share was $3.93 at both December 31, 2017 and September 30, 2017 and an increase compared to $3.72 at December 31, 2016. A quarterly cash dividend of $0.03 per share was paid on January 23, 2018.

Credit Quality

Classified assets totaled $6.9 million at December 31, 2017 compared to $7.1 million at September 30, 2017 and the classified asset to total capital ratio was 5.7% compared to 6.0%, respectively.

Riverview’s non-performing loans were $2.7 million, or 0.33% of total loans, at December 31, 2017 compared to $2.8 million, or 0.35% of total loans, three months earlier. Real estate owned balances of $298,000 at December 31, 2017 were unchanged compared to the preceding quarter end.

The allowance for loan losses totaled $10.9 million, representing 1.36% of total loans at December 31, 2017 compared to $10.6 million and 1.35% of total loans at September 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 $2.4 million at December 31, 2017 compared to $2.6 million at the end of the prior quarter. Net loan recoveries were $250,000 during the third fiscal quarter of 2018 compared to $20,000 in the preceding quarter.

Riverview recorded no provision for loan losses during the third fiscal quarter of 2018 or in the preceding quarter, primarily as a result of the lower levels of delinquent, nonperforming and classified loans, elevated levels of net recoveries, as well as stabilizing values in our market areas which mitigated the required allowance for loan losses due to our loan growth.

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% and a Tier 1 leverage ratio of 9.82% at December 31, 2017. In addition at that date the Company’s  tangible common equity to tangible assets ratio was 8.05%.

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. We calculate tangible book value per share by dividing tangible common equity by the number of common shares outstanding.  This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied and is not audited. Further, the non-GAAP financial measure should not be considered in isolation or as a substitute for book value per share or total stockholders' equity determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

(Dollars in thousands) December 31, 2017 September 30, 2017 December 31, 2016 March 31, 2017
         
Shareholders' equity $  116,803 $  116,742 $  109,400 $  111,264
Goodwill    27,076    27,076    25,572    27,076
Core deposit intangible, net    1,161    1,219    -    1,335
             
Tangible shareholders' equity $  88,566 $  88,447 $  83,828 $  82,853
         
Total assets $  1,128,342 $  1,147,680 $  985,669 $  1,133,939
Goodwill    27,076    27,076    25,572    27,076
Core deposit intangible, net    1,161    1,219    -    1,335
             
Tangible assets $  1,100,105 $  1,119,385 $  960,097 $  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 $1.13 billion at December 31, 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 recent 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 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)December 31, 2017 September 30, 2017 December 31, 2016 March 31, 2017 
ASSETS 
  
Cash (including interest-earning accounts of $3,739, $59,315, $14,302$  23,105  $  76,245  $  28,262  $  64,613  
and $46,245)        
Certificate of deposits held for investment   6,963     9,797     11,291     11,042  
Loans held for sale   351     347     1,679     478  
Investment securities:        
Available for sale, at estimated fair value   224,931     200,584     207,271     200,214  
Held to maturity, at amortized cost   44     46     67     64  
Loans receivable (net of allowance for loan losses of $10,867, $10,617         
$10,289, and $10,528)   786,460     773,087     654,053     768,904  
Real estate owned   298     298     298     298  
Prepaid expenses and other assets   4,843     4,227     4,832     3,815  
Accrued interest receivable   3,464     3,111     2,846     2,941  
Federal Home Loan Bank stock, at cost   1,223     1,181     1,060     1,181  
Premises and equipment, net   15,680     15,740     13,953     16,232  
Deferred income taxes, net   3,988     6,167     8,665     7,610  
Mortgage servicing rights, net   399     406     390     398  
Goodwill   27,076     27,076     25,572     27,076  
Core deposit intangible, net   1,161     1,219     -     1,335  
Bank owned life insurance   28,356     28,149     25,430     27,738  
         
TOTAL ASSETS$  1,128,342  $  1,147,680  $  985,669  $  1,133,939  
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
         
LIABILITIES:        
Deposits$  972,214  $  990,299  $  840,391  $  980,058  
Accrued expenses and other liabilities   9,117     10,838     10,450     13,080  
Advance payments by borrowers for taxes and insurance   260     920     288     693  
Federal Home Loan Bank advances   1,050     -     -     -  
Junior subordinated debentures   26,461     26,438     22,681     26,390  
Capital lease obligations   2,437     2,443     2,459     2,454  
Total liabilities 1,011,539   1,030,938   876,269   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,        
December 31, 2017 - 22,551,912 issued and outstanding;        
September 30, 2017 - 22,533,912 issued and outstanding;   226     225     225     225  
December 31, 2016 - 22,510,890 issued and outstanding;        
March 31, 2017 – 22,510,890 issued and outstanding;        
Additional paid-in capital   64,703     64,612     64,448     64,468  
Retained earnings   53,878     53,034     46,750     48,335  
Unearned shares issued to employee stock ownership plan   -     (26)    (103)    (77) 
Accumulated other comprehensive loss   (2,004)    (1,103)    (1,920)    (1,687) 
Total shareholders’ equity   116,803     116,742     109,400     111,264  
         
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$1,128,342  $1,147,680  $985,669  $1,133,939  
 

 

RIVERVIEW BANCORP, INC. AND SUBSIDIARY 
Consolidated Statements of Income 
 Three Months Ended Nine Months Ended 
(In thousands, except share data)  (Unaudited)Dec. 31, 2017Sept. 30, 2017Dec. 31, 2016 Dec. 31, 2017Dec. 31, 2016 
INTEREST INCOME:   
Interest and fees on loans receivable$  9,978$  9,994$  7,883  $  29,761$  22,954 
Interest on investment securities - taxable   1,201   1,079   946     3,413   2,435 
Interest on investment securities - nontaxable   31   14   11     59   11 
Other interest and dividends   168   228   112     483   344 
Total interest and dividend income   11,378   11,315   8,952     33,716   25,744 
        
INTEREST EXPENSE:       
Interest on deposits   298   313   277     933   837 
Interest on borrowings   284   277   173     829   494 
Total interest expense   582   590   450     1,762   1,331 
Net interest income   10,796   10,725   8,502     31,954   24,413 
Provision for loan losses   -   -   -     -   - 
        
Net interest income after provision for loan losses   10,796   10,725   8,502     31,954   24,413 
        
NON-INTEREST INCOME:       
Fees and service charges   1,451   1,490   1,304     4,348   3,815 
Asset management fees   911   818   709     2,582   2,258 
Net gain on sale of loans held for sale   140   157   191     522   493 
Bank owned life insurance   206   204   185     617   566 
Other, net   182   44   (56)    272   296 
Total non-interest income   2,890   2,713   2,333     8,341   7,428 
        
NON-INTEREST EXPENSE:       
Salaries and employee benefits   5,383   5,251   4,850     16,056   14,021 
Occupancy and depreciation   1,347   1,412   1,158     4,105   3,520 
Data processing   534   580   562     1,730   1,533 
Amortization of core deposit intangible   58   58   -     174   - 
Advertising and marketing expense   137   256   163     627   608 
FDIC insurance premium   108   136   77     389   273 
State and local taxes   96   177   170     427   455 
Telecommunications   102   103   75     309   224 
Professional fees   250   261   355     926   1,066 
Real estate owned expenses   3   3   2     8   52 
Other   540   522   439     1,740   2,311 
Total non-interest expense   8,558   8,759   7,851     26,491   24,063 
        
INCOME BEFORE INCOME TAXES   5,128   4,679   2,984     13,804   7,778 
PROVISION FOR INCOME TAXES   3,608   1,620   991     6,571   2,408 
NET INCOME$  1,520$  3,059$  1,993  $  7,233$  5,370 
        
Earnings per common share:       
Basic$  0.07$  0.14$  0.09  $  0.32$  0.24 
Diluted$  0.07$  0.14$  0.09  $  0.32$  0.24 
Weighted average number of common shares outstanding:       
Basic 22,537,092 22,518,941 22,490,433   22,520,352 22,477,473 
Diluted 22,622,129 22,609,480 22,563,712   22,608,603 22,537,663 
       

 

(Dollars in thousands) At or for the three months ended At or for the nine months ended 
  Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2016 
AVERAGE BALANCES          
Average interest–earning assets $1,055,600  $1,056,818  $900,542  $  1,045,283 $  869,364 
Average interest-bearing liabilities  744,431   749,172   652,195   746,262  636,795 
Net average earning assets  311,169   307,646   248,347   299,021  232,569 
Average loans  785,264   783,213   658,212   784,926  645,598 
Average deposits  988,558   992,111   839,588   980,766  810,700 
Average equity  118,831   116,675   112,444   116,399  111,261 
Average tangible equity (non-GAAP)  90,562   88,351   86,872   88,074  85,689 
            
           
ASSET QUALITY Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016     
Non-performing loans $  2,656  $  2,745  $  2,787      
Non-performing loans to total loans  0.33%  0.35%  0.42%     
Real estate/repossessed assets owned $  298  $  298  $  298      
Non-performing assets $  2,954  $  3,043  $  3,085      
Non-performing assets to total assets  0.26%  0.27%  0.31%     
Net recoveries in the quarter $  (250) $  (20) $  (266)     
Net recoveries in the quarter/average net loans  (0.13)%  (0.01)%  (0.14)%     
            
Allowance for loan losses $  10,867  $  10,617  $  10,289      
Average interest-earning assets to average            
  interest-bearing liabilities  141.80%  141.06%  138.08%     
Allowance for loan losses to            
  non-performing loans  409.15%  386.78%  369.18%     
Allowance for loan losses to total loans  1.36%  1.35%  1.55%     
Shareholders’ equity to assets  10.35%  10.17%  11.10%     
            
            
CAPITAL RATIOS           
Total capital (to risk weighted assets)  14.94%  15.07%  15.93%     
Tier 1 capital (to risk weighted assets)  13.68%  13.82%  14.68%     
Common equity tier 1 (to risk weighted assets)  13.68%  13.82%  14.68%     
Tier 1 capital (to average tangible assets)  9.84%  9.75%  10.81%     
Tangible common equity (to average tangible assets)  8.05%  7.90%  8.73%     
            
            
DEPOSIT MIX Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016 March 31, 2017   
            
Interest checking $170,151  $175,127  $167,522  $  171,152   
Regular savings  136,249   134,116   109,629     126,370 
Money market deposit accounts  270,193   274,409   250,900     289,998   
Non-interest checking   264,728   270,678   202,080     242,738   
Certificates of deposit    130,893     135,969   110,260     149,800   
Total deposits $  972,214  $  990,299  $840,391  $  980,058   
            

 

 
COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS 
          
    Other   Commercial  
  Commercial Real Estate Real Estate & Construction 
  Business Mortgage Construction Total 
December 31, 2017 (Dollars in thousands) 
Commercial business $  130,960 $  - $  - $  130,960 
Commercial construction    -    -    25,384    25,384 
Office buildings    -    122,281    -    122,281 
Warehouse/industrial    -    83,829    -    83,829 
Retail/shopping centers/strip malls    -    67,751    -    67,751 
Assisted living facilities    -    2,982    -    2,982 
Single purpose facilities    -    165,060    -    165,060 
Land    -    12,469    -    12,469 
Multi-family    -    61,851    -    61,851 
One-to-four family construction    -    -    15,359    15,359 
  Total $  130,960 $  516,223 $  40,743 $  687,926 
          
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 Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016 March 31, 2017 
  (Dollars in thousands) 
Commercial and construction         
  Commercial business $  130,960 $  118,444 $  64,401 $  107,371 
  Other real estate mortgage    516,223    500,382    432,782    506,661 
  Real estate construction    40,743    53,878    52,707    46,157 
  Total commercial and construction    687,926    672,704    549,890    660,189 
Consumer         
  Real estate one-to-four family    91,752    90,764    85,956    92,865 
  Other installment    17,649    20,236    28,496    26,378 
  Total consumer    109,401    111,000    114,452    119,243 
          
Total loans     797,327    783,704    664,342    779,432 
          
Less:         
  Allowance for loan losses    10,867    10,617    10,289    10,528 
  Loans receivable, net $  786,460 $  773,087 $  654,053 $  768,904 

 

DETAIL OF NON-PERFORMING ASSETS 
           
    Other  Southwest Other     
  Oregon Washington Washington Other Total 
December 31, 2017           
              
 Commercial business $  - $  289 $  - $  - $  289 
 Commercial real estate    1,084    207    -    -    1,291 
 Land    770    -    -    -    770 
 Consumer    -    207    -    99    306 
 Total non-performing loans    1,854    703    -    99    2,656 
              
 REO    -    -    298    -    298 
              
Total non-performing assets $  1,854 $  703 $  298 $  99 $  2,954 
              
              
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS   
              
    Northwest Other  Southwest     
  Oregon Oregon Washington Total  
December 31, 2017 (dollars in thousands) 
             
 Land development $  486 $  896 $  11,087 $  12,469  
 Speculative construction    -    371    12,335    12,706  
             
Total land development and speculative  construction$  486 $  1,267 $  23,422 $  25,175  

 

   At or for the three months ended At or for the nine months ended 
SELECTED OPERATING DATADec. 31, 2017Sept. 30, 2017Dec. 31, 2016 Dec. 31, 2017Dec. 31, 2016 
      
Efficiency ratio (4) 62.53% 65.18% 72.46%  65.74% 75.57% 
Coverage ratio (6) 126.15% 122.45% 108.29%  120.62% 101.45% 
Return on average assets (1) 0.53% 1.06% 0.80%  0.85% 0.75% 
Return on average equity (1) 5.07% 10.40% 7.03%  8.25% 6.41% 
        
NET INTEREST SPREAD       
Yield on loans 5.04% 5.06% 4.75%  5.03% 4.72% 
Yield on investment securities 2.24% 2.14% 2.06%  2.20% 1.96% 
  Total yield on interest-earning assets 4.28% 4.25% 3.95%  4.29% 3.93% 
        
Cost of interest-bearing deposits 0.17% 0.17% 0.18%  0.17% 0.18% 
Cost of FHLB advances and other borrowings 3.89% 3.81% 2.73%  3.80% 2.61% 
  Total cost of interest-bearing liabilities 0.31% 0.31% 0.27%  0.31% 0.28% 
        
Spread (7) 3.97% 3.94% 3.68%  3.98% 3.65% 
Net interest margin 4.06% 4.03% 3.75%  4.06% 3.73% 
        
PER SHARE DATA     
Basic earnings per share (2)$  0.07 $  0.14 $  0.09  $  0.32 $  0.24  
Diluted earnings per share (3)   0.07    0.14    0.09     0.32    0.24  
Book value per share (5)   5.18    5.18    4.86     5.18    4.86  
Tangible book value per share (5) (non-GAAP)   3.93    3.93    3.72     3.93    3.72  
Market price per share:       
  High for the period$  9.45 $  8.48 $  7.61  $  9.45 $  7.61  
  Low for the period   8.44    6.64    5.23     6.51    4.30  
  Close for period end   8.67    8.40    7.00     8.67    7.00  
Cash dividends declared per share   0.0300    0.0225    0.0200     0.0750    0.0600  
        
Average number of shares outstanding:       
  Basic (2) 22,537,092  22,518,941  22,490,433   22,520,352  22,477,473  
  Diluted (3) 22,622,129  22,609,480  22,563,712   22,608,603  22,537,663  
       


  
(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 

Primary Logo

Source: Riverview Bancorp Inc