Press Release

Riverview Bancorp Reports Fourth Quarter Earnings; Fiscal Year 2018 Earnings Increase 38% Year-Over-Year

Company Release - 4/26/2018 4:00 PM ET

VANCOUVER, Wash., April 26, 2018 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM:RVSB) (“Riverview” or the “Company”) today reported net income increased to $3.0 million, or $0.13 per diluted share, in its fourth fiscal quarter ended March 31, 2018, compared to $2.0 million, or $0.09 per diluted share, in the fourth fiscal quarter a year ago. In the preceding quarter net income was $1.5 million, or $0.07 per diluted share. The preceding quarter’s net income was impacted 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 tax expense of $1.8 million, or $0.08 per diluted share.

For fiscal year 2018, Riverview’s net income increased to $10.2 million, or $0.45 per diluted share, compared to $7.4 million, or $0.33 per diluted share, in fiscal year 2017.

“We are pleased with our financial performance for the fiscal year,” said Kevin Lycklama, president and chief executive officer. “Fiscal 2018 was one of our most profitable years, supported by strong balance sheet growth, the expansion of our net interest margin and improving operating efficiencies. Our focus in the coming fiscal year remains on growing the franchise in our local markets and continuing to improve our profitability.”

Fourth Quarter Highlights (at or for the period ended March 31, 2018)

  • Net income of $3.0 million, or $0.13 per diluted share.
  • Net interest margin (NIM) expanded by eight basis points to 4.14% compared to the preceding quarter and expanded 17 basis points compared to the fourth quarter a year ago.
  • Total loans increased $14.0 million during the quarter to $811.4 million.
  • Non-performing assets improved to 0.24% of total assets.
  • Tangible book value per share was $3.93.
  • Total risk-based capital ratio was 15.41% and Tier 1 leverage ratio was 10.26%.
  • Declared a quarterly cash dividend of $0.03 per share, generating a current dividend yield of 1.28% based on the market price on April 25, 2018.

Income Statement

In the fourth fiscal quarter of 2018, Riverview generated a return on average assets of 1.08% and a return on average equity of 10.39%, compared to 0.79% and 7.43%, respectively in the fourth fiscal quarter of 2017.

Net interest income was $10.7 million in the fourth fiscal quarter of 2018, a slight decrease compared to $10.8 million in the preceding quarter and a $1.3 million increase compared to $9.3 million in the fourth fiscal quarter a year ago. The decrease in net interest income compared to the preceding quarter is primarily due to the fewer number of days in the current quarter. In fiscal 2018, net interest income increased $8.9 million to $42.6 million compared to $33.8 million in fiscal 2017.

Riverview’s fourth fiscal quarter net interest margin expanded eight basis points to 4.14% compared to the preceding quarter and increased 17 basis points when compared to the fourth fiscal quarter a year ago. “We have been successful managing our net interest margin in this interest rate environment,” said Lycklama. “The increase in net interest margin was driven by the continued growth in our loan portfolio, higher rates on new loan originations and a decrease in our excess cash balances.” The interest accretion on purchased loans totaled $199,000 and resulted in an eight basis point increase in the NIM during the fourth fiscal quarter compared to $175,000 and a six basis point increase in the NIM in the preceding quarter. In fiscal year 2018, the NIM increased 29 basis points to 4.08% compared to 3.79% in fiscal 2017.

The weighted average note rate on new loans originated during the quarter ended March 31, 2018 increased to 5.17% compared to 4.75% for the quarter ended December 31, 2017 and 4.66% for the quarter ended March 31, 2017.

Non-interest income was $2.7 million in the fourth fiscal quarter compared to $2.9 million the prior quarter and a modest increase compared to $2.6 million in the same quarter a year ago. The decrease in the current quarter was partially due to a lower gain on sale of loans compared to the preceding quarter as a result of a decline in mortgage related activity. The December 2017 quarter also included an $81,000 gain on the sale of REO property. For fiscal year 2018, non-interest income increased to $11.0 million compared to $10.0 million for fiscal 2017.

Asset management fees were $866,000 in the fourth fiscal quarter of 2018 compared to $911,000 in the preceding quarter and $730,000 in the fourth fiscal quarter a year ago. For fiscal 2018, asset management fees grew 15.4% to $3.4 million compared to $3.0 million a year ago. Riverview Trust Company’s assets under management were $484.3 million at March 31, 2018 compared to $490.1 million three months earlier and $425.9 million a year earlier.

Non-interest expense increased $569,000 to $9.1 million during the fourth fiscal quarter of 2018 compared to $8.6 million in the preceding quarter and increased $209,000 from $8.9 million for the same prior year period. “The increase in operating expenses during the quarter was primarily due to an increase in salary related expenses as we built out our lending teams with additional staff to support loan growth,” said Lycklama. The efficiency ratio was 68.5% for the quarter ended March 31, 2018 compared to 62.5% in the preceding quarter and 74.8% in the fourth fiscal quarter a year ago.

The effective tax rate for our fourth fiscal quarter of 2018 was 28.2%. As a result of the passage of the Tax Cuts and Jobs Act, the Company expects the tax rate to decrease to approximately 23.5% beginning April 1, 2018. “While we anticipate a majority of the savings to flow through to our bottom line, we also plan to reinvest a portion of these savings into projects designed to drive continued growth for the Bank including staffing, technology enhancements and infrastructure improvements,” stated Lycklama.

Balance Sheet Review

Total loans increased $14.0 million during the quarter to $811.4 million at March 31, 2018 compared to $797.3 million at December 31, 2017, and increased $31.9 million compared to $779.4 million a year ago, with a large portion of the increases concentrated in commercial business and warehouse/industrial loans. Undisbursed construction loans totaled $74.8 million at March 31, 2018, compared to $62.0 million three months earlier. The increase is primarily due to the origination of $20.1 million in new commercial construction loans during the current quarter. The majority of the undisbursed construction loans are expected to fund over the next several quarters.

“While loan originations remain strong, total loan balances continue to be impacted by paydowns on existing loans,” said Lycklama. The loan pipeline totaled $74.1 million at the end of the quarter.

Total deposits increased $23.5 million to $995.7 million at March 31, 2018 compared to $972.2 million at December 31, 2017, and increased $15.6 million compared to $980.1 million a year ago. Checking account balances increased $37.1 million during the quarter and currently account for 47.4% of total deposits.

Shareholders’ equity was $116.9 million at March 31, 2018 compared to $116.8 million three months earlier and $111.3 million a year earlier. Tangible book value per share (non-GAAP) was $3.93 at both March 31, 2018 and December 31, 2017 compared to $3.68 at March 31, 2017. A quarterly cash dividend of $0.03 per share was paid on April 24, 2018.

Credit Quality

Riverview recorded no provision for loan losses during the fourth fiscal quarter of 2018 or in the preceding quarter, primarily as a result of the continued low level of delinquent, nonperforming and classified loans, as well as the changes in the volume and mix of loans, which mitigated the required allowance for loan losses due to loan growth.

Non-performing loans were $2.4 million, or 0.30% of total loans, at March 31, 2018 compared to $2.7 million, or 0.33% of total loans, three months earlier. Real estate owned balances of $298,000 at March 31, 2018 were unchanged compared to the preceding quarter end.

Classified assets totaled $7.7 million at March 31, 2018 compared to $6.9 million at December 31, 2017 and $10.3 million at March 31, 2017. The classified asset to total capital ratio was 6.2% at March 31, 2018 compared to 5.7% three months earlier and 9.1% a year earlier.

The allowance for loan losses totaled $10.8 million, representing 1.33% of total loans at March 31, 2018 compared to $10.9 million and 1.36% of total loans at December 31, 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 $2.2 million at March 31, 2018 compared to $2.4 million at the end of the prior quarter.

Net loan charge-offs were $101,000 during the fourth fiscal quarter of 2018 compared to net loan recoveries of $250,000 in the preceding quarter. Net charge-offs increased during the quarter primarily as a result of a decrease in total loan recoveries due to the Company completing the multi-year collection of a large prior charge-off during 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 15.41% and a Tier 1 leverage ratio of 10.26% at March 31, 2018. In addition, at that date the Company’s tangible common equity to tangible assets ratio (non-GAAP) was 7.90%.

Management Succession

Effective April 2, 2018, Kevin Lycklama was promoted to president and chief executive officer of the Company and the Bank, following Patrick Sheaffer’s retirement. Mr. Sheaffer continues to serve as chairman of the board of both the Company and the Bank. Additionally, Steven Plambeck was promoted to executive vice president and chief lending officer following the retirement of Dick Michalek.

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 shareholders’ 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 shareholders’ 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 shareholders' 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) March 31, 2018 December 31, 2017March 31, 2017
       
Shareholders' equity $  116,901 $  116,803 $  111,264
Goodwill    27,076    27,076    27,076
Core deposit intangible, net    1,103    1,161    1,335
Tangible shareholders' equity $  88,722 $  88,566 $  82,853
       
Total assets $  1,151,535 $  1,128,342 $  1,133,939
Goodwill    27,076    27,076    27,076
Core deposit intangible, net    1,103    1,161    1,335
Tangible assets $  1,123,356 $  1,100,105 $  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 March 31, 2018, 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: 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 2019 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.

Contact: Kevin Lycklama 
 Riverview Bancorp, Inc.
360-693-6650


      
RIVERVIEW BANCORP, INC. AND SUBSIDIARY     
Consolidated Balance Sheets     
(In thousands, except share data)  (Unaudited)March 31, 2018 December 31, 2017 March 31, 2017
ASSETS     
      
Cash (including interest-earning accounts of $30,052, $3,739 and $46,245)$  44,767  $  23,105  $  64,613 
Certificate of deposits held for investment   5,967     6,963     11,042 
Loans held for sale   210     351     478 
Investment securities:     
Available for sale, at estimated fair value   213,221     224,931     200,214 
Held to maturity, at amortized cost   42     44     64 
Loans receivable (net of allowance for loan losses of $10,766, $10,867     
and $10,528)   800,610     786,460     768,904 
Real estate owned   298     298     298 
Prepaid expenses and other assets   3,870     4,843     3,815 
Accrued interest receivable   3,477     3,464     2,941 
Federal Home Loan Bank stock, at cost   1,353     1,223     1,181 
Premises and equipment, net   15,783     15,680     16,232 
Deferred income taxes, net   4,813     3,988     7,610 
Mortgage servicing rights, net   388     399     398 
Goodwill   27,076     27,076     27,076 
Core deposit intangible, net   1,103     1,161     1,335 
Bank owned life insurance   28,557     28,356     27,738 
      
TOTAL ASSETS$  1,151,535  $  1,128,342  $  1,133,939 
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
LIABILITIES:     
Deposits$  995,691  $  972,214  $  980,058 
Accrued expenses and other liabilities   9,391     9,117     13,080 
Advance payments by borrowers for taxes and insurance   637     260     693 
Federal Home Loan Bank advances   -     1,050     - 
Junior subordinated debentures   26,484     26,461     26,390 
Capital lease obligation   2,431     2,437     2,454 
Total liabilities   1,034,634     1,011,539     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,     
  March 31, 2018 – 22,570,179 issued and outstanding;   226     226     225 
  December 31, 2017 - 22,551,912 issued and outstanding;     
  March 31, 2017 – 22,510,890 issued and outstanding;     
Additional paid-in capital   64,871     64,703     64,468 
Retained earnings   56,552     53,878     48,335 
Unearned shares issued to employee stock ownership plan   -     -     (77)
Accumulated other comprehensive loss   (4,748)    (2,004)    (1,687)
Total shareholders’ equity   116,901     116,803     111,264 
      
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$  1,151,535  $  1,128,342  $  1,133,939 
            


       
RIVERVIEW BANCORP, INC. AND SUBSIDIARY      
Consolidated Statements of Income      
 Three Months Ended Twelve Months Ended
(In thousands, except share data)  (Unaudited)March 31, 2018Dec. 31, 2017March 31, 2017 March 31, 2018March 31, 2017
INTEREST INCOME:      
Interest and fees on loans receivable$  9,898$  9,978$  8,655 $  39,659$  31,609
Interest on investment securities - taxable   1,235   1,201   1,115    4,648   3,550
Interest on investment securities - nontaxable   36   31   14    95   25
Other interest and dividends   75   168   99    558   443
Total interest and dividend income   11,244   11,378   9,883    44,960   35,627
       
INTEREST EXPENSE:      
Interest on deposits   275   298   314    1,208   1,151
Interest on borrowings   312   284   224    1,141   718
Total interest expense   587   582   538    2,349   1,869
Net interest income   10,657   10,796   9,345    42,611   33,758
Provision for loan losses   -   -   -    -   -
       
Net interest income after provision for loan losses   10,657   10,796   9,345    42,611   33,758
       
NON-INTEREST INCOME:      
Fees and service charges   1,431   1,451   1,362    5,779   5,177
Asset management fees   866   911   730    3,448   2,988
Net gains on sales of loans held for sale   119   140   163    641   656
Bank owned life insurance   201   207   194    819   760
Other, net   46   181   137    317   433
Total non-interest income, net   2,663   2,890   2,586    11,004   10,014
       
NON-INTEREST EXPENSE:      
Salaries and employee benefits   5,687   5,383   5,335    21,743   19,356
Occupancy and depreciation   1,349   1,347   1,299    5,454   4,819
Data processing   583   534   578    2,313   2,111
Amortization of core deposit intangible   58   58   27    232   27
Advertising and marketing   120   137   146    747   754
FDIC insurance premium   87   108   83    476   356
State and local taxes   178   96   154    605   609
Telecommunications   108   102   93    417   317
Professional fees   255   250   562    1,181   1,628
Real estate owned   4   3   2    12   54
Other   698   540   639    2,438   2,950
Total non-interest expense   9,127   8,558   8,918    35,618   32,981
       
INCOME BEFORE INCOME TAXES   4,193   5,128   3,013    17,997   10,791
PROVISION FOR INCOME TAXES   1,184   3,608   979    7,755   3,387
NET INCOME$  3,009$  1,520$  2,034 $  10,242$  7,404
       
Earnings per common share:      
Basic$  0.13$  0.07$  0.09 $  0.45$  0.33
Diluted$  0.13$  0.07$  0.09 $  0.45$  0.33
Weighted average number of common shares outstanding:      
Basic 22,565,483 22,537,092 22,489,336  22,531,480 22,478,306
Diluted 22,639,908 22,622,129 22,585,976  22,618,330 22,548,340
            


           
           
(Dollars in thousands) At or for the three months ended At or for the twelve months ended
  March 31, 2018 Dec. 31, 2017 March 31, 2017 March 31, 2018 March 31, 2017
AVERAGE BALANCES          
           
Average interest–earning assets $  1,043,755  $  1,055,600  $  955,957  $  1,044,907 $  890,716
Average interest-bearing liabilities  735,592   744,431   710,266   743,630  654,911
Net average earning assets  308,163   311,169   245,691   301,277  235,805
Average loans  802,275   785,264   716,452   789,204  663,069
Average deposits  969,916   988,558   894,284   978,090  831,310
Average equity  117,495   118,831   111,054   116,669  111,210
Average tangible equity (non-GAAP)  89,282   90,562   85,450   88,371  85,630
           
           
ASSET QUALITY March 31, 2018 Dec. 31, 2017 March 31, 2017    
           
Non-performing loans $  2,418  $  2,656  $  2,749     
Non-performing loans to total loans  0.30%  0.33%  0.35%    
Real estate/repossessed assets owned $  298  $  298  $  298     
Non-performing assets $  2,716  $  2,954  $  3,047     
Non-performing assets to total assets  0.24%  0.26%  0.27%    
Net charge-offs (recoveries) in the quarter $  101  $  (250) $  (239)    
Net charge-offs (recoveries) in the quarter/average net loans  0.05%  (0.13)%  (0.14)%    
           
Allowance for loan losses $  10,766  $  10,867  $  10,528     
Average interest-earning assets to average          
  interest-bearing liabilities  141.89%  141.80%  134.59%    
Allowance for loan losses to          
  non-performing loans  445.24%  409.15%  382.98%    
Allowance for loan losses to total loans  1.33%  1.36%  1.35%    
Shareholders’ equity to assets  10.15%  10.35%  9.81%    
           
           
CAPITAL RATIOS          
Total capital (to risk weighted assets)  15.41%  15.07%  14.06%    
Tier 1 capital (to risk weighted assets)  14.16%  13.82%  12.81%    
Common equity tier 1 (to risk weighted assets)  14.16%  13.82%  12.81%    
Tier 1 capital (to average tangible assets)  10.26%  9.82%  10.21%    
Tangible common equity (to average tangible assets)  7.90%  8.05%  7.49%    
           
           
DEPOSIT MIX March 31, 2018 Dec. 31, 2017 March 31, 2017    
           
Interest checking $  192,989  $  170,151  $  171,152     
Regular savings    134,931     136,249     126,370     
Money market deposit accounts    265,661     270,193     289,998     
Non-interest checking    278,966     264,728     242,738     
Certificates of deposit    123,144     130,893     149,800     
Total deposits $  995,691  $  972,214  $  980,058     
                 


         
COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS    
         
    Other   Commercial
  Commercial Real Estate Real Estate & Construction
  Business Mortgage Construction Total
March 31, 2018 (Dollars in thousands)
Commercial business $  137,672 $  - $  - $  137,672
Commercial construction    -    -    23,158    23,158
Office buildings    -    124,000    -    124,000
Warehouse/industrial    -    89,442    -    89,442
Retail/shopping centers/strip malls    -    68,932    -    68,932
Assisted living facilities    -    2,934    -    2,934
Single purpose facilities    -    165,289    -    165,289
Land    -    15,337    -    15,337
Multi-family    -    63,080    -    63,080
One-to-four family construction    -    -    16,426    16,426
  Total $  137,672 $  529,014 $  39,584 $  706,270
         
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 March 31, 2018 Dec. 31, 2017 March 31, 2017  
  (Dollars in Thousands)  
Commercial and construction        
  Commercial business $  137,672 $  130,960 $  107,371  
  Other real estate mortgage    529,014    516,223    506,661  
  Real estate construction    39,584    40,743    46,157  
  Total commercial and construction    706,270    687,926    660,189  
Consumer        
  Real estate one-to-four family    90,109    91,752    92,865  
  Other installment    14,997    17,649    26,378  
  Total consumer    105,106    109,401    119,243  
         
Total loans    811,376    797,327    779,432  
         
Less:        
  Allowance for loan losses    10,766    10,867    10,528  
  Loans receivable, net $  800,610 $  786,460 $  768,904  
            


           
DETAIL OF NON-PERFORMING ASSETS          
             
    Other Southwest Other    
    Oregon Washington Washington Other Total
March 31, 2018 (Dollars in thousands)
             
 Commercial business $  - $  178 $  - $  - $  178
 Commercial real estate    997    203    -    -    1,200
 Land    763    -    -    -    763
 Consumer    -    206    -    71    277
 Total non-performing loans    1,760    587    -    71    2,418
             
 REO    -    -    298    -    298
             
 Total non-performing assets $  1,760 $  587 $  298 $  71 $  2,716
             
             
             
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS    
             
    Northwest Other Southwest    
    Oregon Oregon Washington Total  
March 31, 2018 (Dollars in thousands)  
             
 Land development $  482 $  881 $  13,974 $  15,337  
 Speculative construction    400    421    12,596    13,417  
             
 Total land development and speculative construction $  882 $  1,302 $  26,570 $  28,754  
             


       
 At or for the three months ended At or for the twelve months ended
SELECTED OPERATING DATAMarch 31, 2018Dec. 31, 2017March 31, 2017 March 31, 2018March 31, 2017
       
Efficiency ratio (4) 68.52% 62.53% 74.75%  66.43% 75.35%
Coverage ratio (6) 116.76% 126.15% 104.79%  119.63% 102.36%
Return on average assets (1) 1.08% 0.53% 0.79%  0.90% 0.76%
Return on average equity (1) 10.39% 5.07% 7.43%  8.78% 6.66%
       
NET INTEREST SPREAD      
Yield on loans 5.00% 5.04% 4.90%  5.03% 4.77%
Yield on investment securities 2.32% 2.24% 2.23%  2.23% 2.04%
  Total yield on interest-earning assets 4.37% 4.28% 4.20%  4.31% 4.00%
       
Cost of interest-bearing deposits 0.16% 0.17% 0.19%  0.17% 0.18%
Cost of FHLB advances and other borrowings 3.99% 3.89% 3.19%  3.85% 2.76%
  Total cost of interest-bearing liabilities 0.32% 0.31% 0.31%  0.32% 0.28%
       
Spread (7) 4.05% 3.97% 3.89%  3.99% 3.72%
Net interest margin 4.14% 4.06% 3.97%  4.08% 3.79%
       
PER SHARE DATA      
Basic earnings per share (2)$  0.13 $  0.07 $  0.09  $  0.45 $  0.33 
Diluted earnings per share (3)   0.13    0.07    0.09     0.45    0.33 
Book value per share (5)   5.18    5.18    4.94     5.18    4.94 
Tangible book value per share (5) (non-GAAP)   3.93    3.93    3.68     3.93     3.68 
Market price per share:      
  High for the period$  9.68 $  9.45 $  7.90  $  9.68 $  7.90 
  Low for the period   8.45    8.44    6.87     6.51    4.30 
  Close for period end   9.34    8.67    7.15     9.34    7.15 
Cash dividends declared per share   0.03000    0.03000    0.02000     0.10500    0.08000 
       
Average number of shares outstanding:      
  Basic (2) 22,565,483  22,537,092  22,489,336   22,531,480  22,478,306 
  Diluted (3) 22,639,908  22,622,129  22,585,976   22,618,330  22,548,340 
       
  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.

Note: Transmitted on Globe Newswire on April 26, 2018, at 1:00 p.m. PDT.

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Source: Riverview Bancorp Inc