News Details

Riverview Bancorp Reports Positive Earnings in First Fiscal Quarter; Net Interest Margin Expands, Remains 'Well-Capitalized'

July 14, 2009

VANCOUVER, Wash., July 14, 2009 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB) today reported that an expanding net interest margin contributed to net income of $343,000, or $0.03 per diluted share, for the first quarter ended June 30, 2009. This compares to a net loss of $720,000, or $0.07 per diluted share, in the previous quarter and net income of $793,000, or $0.07 per diluted share, in the first quarter a year ago. First quarter fiscal 2010 results include a provision for loan loss of $2.4 million, compared to $5.0 million in the preceding quarter and $2.8 million in the first quarter of fiscal 2009.

"We generated a solid quarterly profit primarily due to an improved net interest margin and our strong core business model," said Pat Sheaffer, Chairman and CEO. "We have been able to make steady progress in strengthening Riverview, with pre-tax, pre-provision earnings of $2.8 million for the quarter. We also continue to make progress on our strategic goal of increasing total capital by further adding to our already 'well-capitalized' position and focusing on increasing our core deposit base. These notable results were generated in spite of an ongoing national recession and regional economic uncertainties."

First Quarter Fiscal 2010 Highlights (at or for the period ended June 30, 2009)

 * Increased total risk-based capital ratio 45 basis points to 11.91%,
   remains strongly capitalized.
 * Net income was $343,000, or $0.03 per diluted share.
 * Added $2.4 million to the loan loss provision.
 * Allowance for loan losses increased to 2.28% of total loans.
 * Contributed $420,000 in FDIC special assessment charges.
 * Net interest margin improved to 4.25% for the quarter.
 * Reduced residential construction loans by 22% during the first
   quarter.
 * Reduced brokered deposits $20 million during the first quarter.
   Riverview currently has no wholesale-brokered deposits.

Capital and Liquidity

"Growing our capital and liquidity positions remains a top priority for management," said Sheaffer. "We continued to strengthen our capital levels, increasing total risk-based capital and Tier 1 leverage capital ratios to 11.91% and 9.50%, respectively, compared to 11.46% and 9.50% at March 31, 2009." The progress made at increasing our capital ratios was accomplished primarily through the planned strategic balance sheet restructuring, including the reduction in loan balances, specifically focusing on the residential construction portfolio, along with growth in our residential one-to-four family loans, and modifications made to the Company's BOLI policies. "We diligently monitor our liquidity position, considering our present and anticipated liquidity needs and available sources of liquidity. In addition to our solid customer deposit base, we have significant liquidity available to us, including over $220 million of borrowing capacity from the Federal Home Loan Bank and the Federal Reserve Bank, $61 million of cash and short-term investments, borrowing lines at correspondent banks and wholesale markets, including brokered deposits," added Sheaffer.

Riverview's actual and required minimum capital amounts and ratios are presented in the following table:

                                          Adequately         Well
 June 30, 2009             Actual         Capitalized     Capitalized
 --------------------  ---------------  --------------  ---------------
                        Amount  Ratio   Amount   Ratio   Amount  Ratio
 Total Capital (To
  Risk-Weighted
  Assets)              $94,860  11.91%  $63,699  8.00%  $79,624  10.00%
 Tier 1 Capital (To
  Risk-Weighted
  Assets)               84,874  10.66    31,850  4.00    47,774   6.00
 Tier 1 Capital (To
  Adjusted Tangible
  Assets)               84,874   9.50    35,750  4.00    44,687   5.00

Credit Quality

"As the housing market in Southwest Washington and Portland remains challenged, we continue to build our allowance for loan losses, with a provision expense of $2.4 million during the first quarter, compared to net charge-offs of $1.5 million," said Dave Dahlstrom, EVP and Chief Credit Officer. Charge-offs during the first quarter were comprised primarily of three residential construction and land development loans totaling $1.1 million. Net charge-offs were $4.3 million in the previous quarter and $330,000 in the first quarter a year ago.

Non-performing loans (NPLs) increased during the quarter to $41.1 million, representing 5.28% of total loans at June 30, 2009, compared to 3.44% three months earlier. The increase in NPLs was largely attributable to the addition of $15.6 million in residential construction and land development loans to two builders. One of these lending relationships totaling $8.6 million consisted of $2.6 million in residential construction loans and $6.0 million in land development loans. The other lending relationship was a single condominium construction loan totaling $7.0 million. Land acquisition and development loans and speculative construction loans, represent $30.8 million, or 75%, of the total non-performing loan balance at June 30, 2009. All of the loans are to borrowers located in Oregon and Washington, with the exception of one land acquisition and development loan totaling $1.4 million to a long-time Washington-based customer who has property located in Southern California.

The following table shows nonperforming loans in each category:

                                          June 30,  March 31, June 30,
 Non-performing Loans (in thousands)        2009      2009      2008
 Commercial                               $  8,337  $  6,018  $  1,175
 Commercial real estate                         --        --       861
 Land                                       11,975     5,815    16,446
 Multi-family                                  275     1,501     1,521
 Commercial construction                        31        75        --
 One-to-four family construction            19,431    12,832     2,337
 Real estate one-to-four family              1,008     1,329       520
 Consumer                                       --        --        97
                                          --------  --------  --------
 Total non-performing loans               $ 41,057  $ 27,570  $ 22,957
                                          ========  ========  ========

"We continue to devote a considerable amount of resources to monitoring credit quality," added Dahlstrom. "We have remained persistent in actively managing and acknowledging deterioration in our loan portfolio on a timely basis, and then assisting our customers in navigating through this challenging economy." At June 30, 2009, the Company performed specific valuation analysis on $37.6 million, or 91%, of its non-performing loans resulting in a specific valuation allowance totaling $4.1 million, or 11% of the non-performing loan balance. As a result of these specific valuation allowances, the allowance for loan losses to non-performing loans decreased to 43.30% at June 30, 2009 compared to 61.57% at March 31, 2009. The low amount of specific allowance required for non-performing loans reflects the Bank's conservative philosophy and underwriting standards. Most of the Company's non-performing assets are secured by real estate. Based on the most current information available to management, including updated appraisals where appropriate, the Company believes the value of the underlying real estate collateral is adequate to minimize significant charge-offs or loss to the Company.

During the first quarter, the Company sold 10 REO properties totaling $2.2 million, and transferred $4.4 million to REO, resulting in total REO of $16.0 million. In addition, the Company has 5 additional properties totaling $2.2 million under contract which are expected to close in the second fiscal quarter. "We have had good success the past quarter selling single-family homes once they have transferred into our REO portfolio," said Dahlstrom. Included in REO are thirty-six properties limited to twenty lending relationships. These properties consist of seven single-family homes totaling $1.7 million, twenty-two residential building lots totaling $3.0 million, three finished subdivision properties totaling $4.3 million, one land development property totaling $5.0 million and three multi-family property totaling $1.9 million. All properties are located in Oregon and Washington.

Nonperforming assets were 6.20% of total assets at June 30, 2009, compared to 4.57% at the end of the preceding quarter and 2.67% a year ago. The total allowance for loan losses, including a $276,000 allowance for off-balance sheet loan commitments, was $18.1 million at June 30, 2009, equal to 2.32% of total loans compared to 2.15% at March 31, 2009, and 1.73% at June 30, 2008. Loans delinquent 31-89 days totaled $11.9 million, or 1.53% of total loans at June 30, 2009, compared to $15.5 million, or 1.94% of total loans at the end of March 2009, and $4.0 million, or 0.52% of total loans at June 30, 2008.

Balance Sheet Review

Net loans totaled $760 million at June 30, 2009, compared to $784 million at the end of the preceding quarter and $764 million a year ago. The Company continues its strategy of controlling balance sheet growth in order to preserve capital, as well as the targeted reduction of residential construction related sectors within the loan portfolio. As of June 30, 2009, commercial and commercial real estate loans account for 73% of the total loan portfolio and construction loans account for less than 16% of the total loan portfolio.

The Company has remained proactive in reducing its exposure to residential construction loans. Speculative construction loans represent $47.0 million of the residential construction portfolio at June 30, 2009. These loans balances are down 42% from a year ago and 19% from the previous linked quarter. Overall, our total residential construction loans decreased 22% from the prior quarter and 32% from a year ago.

Riverview's commercial real estate portfolio continues to perform extremely well. As of June 30, 2009, there was only 1 loan in this portfolio that was more than 30 days past due, totaling $253,000. In addition, the Company has had no charge-offs in this portfolio in the last two years.

Riverview does not have sub-prime residential real estate loans in its loan portfolio and does not believe that it has any direct exposure to sub-prime lending in its Mortgage Backed Securities portfolio, nor any exposure to Government Sponsored Enterprise (GSE) securities in its investment portfolio.

Total deposits were $649 million at June 30, 2009, compared to $670 million three months earlier, and $629 million at June 30, 2008. The decrease in total deposits from the previous quarter was the result of the $20 million reduction of wholesale-brokered deposits. As of June 30, 2009, the Company had no wholesale-brokered deposits in its deposit mix.

"We are seeing solid growth in a new customer base as customers shift their deposits away from some of the larger institutions in our markets," said Ron Wysaske, President and COO. "As a result, core deposits (comprised of checking, savings and money market accounts) currently accounts for 60.9% of total deposits, up from 58.6% at March 31, 2009 and retail certificates of deposits represent 39.1% of total deposits." At June 30, 2009, customer relationships accounted for 100% of Riverview's deposits.

Operating Results

For the first quarter of fiscal 2010, net interest income increased 3.7% to $8.7 million compared to $8.4 million in the first quarter a year ago. The net interest margin improved to 4.25% compared to 3.98% in the preceding linked quarter and 4.20% in the first quarter a year ago. "A decrease in both the yields on deposits and borrowing costs contributed to our net interest margin expanding 27 basis points compared to the previous quarter and five basis points from the first quarter a year ago," said Kevin Lycklama, SVP and CFO. "This was despite the reversal of interest on loans placed on non-accrual status during the quarter, which accounted for a 15 basis point decrease in the quarterly net interest margin."

Non-interest income decreased to $2.1 million for the quarter, compared to $2.2 million in the first fiscal quarter a year ago. The decrease in first quarter non-interest income was largely due to a $258,000 other than temporary impairment charge (OTTI) of an investment security. The investment is a trust preferred pooled security that was previously written down in fiscal year 2009, the amortized cost of the security was $3.7 million at June 30, 2009. This charge was offset by the $401,000 gain on sale of loans held for sale. Fee income from Riverview Asset Management Corp. totaled $509,000 an increase of $71,000 over the prior linked quarter. Mortgage broker loan fees were $322,000 in the first quarter, an increase of $71,000 over the prior linked quarter and $32,000 from the first quarter a year ago.

During the first quarter of fiscal 2010 non-interest expense increased to $8.0 million, compared to $6.7 million in the first quarter of fiscal 2009. FDIC insurance premiums increased $581,000 over the same period in prior year, reflecting the FDIC's higher assessment rates for 2009 and a $420,000 special assessment charge. The increase was also a result of $609,000 in REO expense as well an increase in professional fees primarily associated with non-performing loans.

Riverview's efficiency ratio, excluding the effects of the non-cash impairment charge, was 72.35% compared to 63.20% for the same period in prior year. The Company expects its efficiency ratio to remain at higher than normal levels during fiscal year 2010 as a result of the increase in FDIC insurance premiums and REO related expenses. However, management remains focused on managing controllable costs.

Shareholders' Equity

At June 30, 2009, shareholders' equity was $89.1 million, compared to $88.7 million three months earlier and $92.0 million a year ago. Book value per share was $8.16 at June 30, 2009, compared to $8.12 in the prior linked quarter and tangible book value per share was $5.73 at quarter-end, compared to $5.69 at March 31, 2009. Tangible shareholder equity was unchanged at 7.0% of tangible assets at June 30, 2009 compared the prior quarter.

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 $920 million, it is the parent company of the 86 year-old Riverview Community Bank, as well as Riverview Mortgage and Riverview Asset Management Corp. There are 18 branches, including ten in Clark County, three in Multnomah County and four lending centers. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers.

Financial measures that exclude OTTI charges, taxes and loan loss provisions are non-GAAP measures. To provide investors with a broader understanding of earnings, the Company provided non-GAAP financial measures for total income, non-interest income and the efficiency ratio, along with the GAAP measure of net income (loss), non-interest income and the efficiency ratio, in an effort to isolate the Company's core business operations and in particular because OTTI charges are not likely to occur in normal operations. Management believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and competitor's results and assist in forecasting performance for future periods because they exclude items we believe to be outside the normal operating results.

Statements concerning future performance, developments or events, concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements, which are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated objectives. These factors include but are not limited to: RVSB's ability to acquire shares according to internal repurchase guidelines, regional economic conditions and the company's ability to efficiently manage expenses. Additional factors that could cause actual results to differ materially are disclosed in Riverview Bancorp's recent filings with the SEC, including but not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

 RIVERVIEW BANCORP, INC. AND SUBSIDIARY
 Consolidated Balance Sheets
 (In thousands, except share data)        June 30,  March 31, June 30,
 (Unaudited)                                2009      2009      2008
 ---------------------------------------------------------------------
 ASSETS

  Cash (including interest-earning
   accounts of $25,275, $6,405 and
   $9,429)                                $ 43,868  $ 19,199  $ 28,271
  Loans held for sale                          180     1,332        --
  Investment securities held to maturity,
   at amortized cost                           523       529       536
  Investment securities available for
   sale, at fair value                      13,349     8,490     6,876
  Mortgage-backed securities held to
   maturity, at amortized cost                 479       570       762
  Mortgage-backed securities available
   for sale, at fair value                   3,701     4,066     4,915
  Loans receivable (net of allowance for
   loan losses of $17,776, $16,974 and
   $13,107)                                760,283   784,117   763,631
  Real estate and other pers. property
   owned                                    16,012    14,171       639
  Prepaid expenses and other assets          2,964     2,518     2,473
  Accrued interest receivable                2,966     3,054     3,080
  Federal Home Loan Bank stock, at cost      7,350     7,350     7,350
  Premises and equipment, net               19,187    19,514    20,698
  Deferred income taxes, net                 8,116     8,209     4,799
  Mortgage servicing rights, net               545       468       282
  Goodwill                                  25,572    25,572    25,572
  Core deposit intangible, net                 395       425       521
  Bank owned life insurance                 14,900    14,749    14,322
                                          --------  --------  --------

 TOTAL ASSETS                             $920,390  $914,333  $884,727
                                          ========  ========  ========

 LIABILITIES AND EQUITY

 LIABILITIES:
  Deposit accounts                        $649,068  $670,066  $629,407
  Accrued expenses and other liabilities     6,315     6,700     7,717
  Advance payments by borrowers for taxes
   and insurance                               190       360       128
  Federal Home Loan Bank advances            5,000    37,850   129,760
  Federal Reserve Bank advances            145,000    85,000        --
  Junior subordinated debentures            22,681    22,681    22,681
  Capital lease obligation                   2,640     2,649     2,677
                                          --------  --------  --------
   Total liabilities                       830,894   825,306   792,370

 EQUITY:
  Shareholders' equity
   Serial preferred stock, $.01 par value;
    250,000 authorized, issued and
    outstanding, none                           --        --        --
   Common stock, $.01 par value;
    50,000,000 authorized, June 30, 2009 -
    10,923,773 issued and outstanding;
    March 31, 2009 - 10,923,773 issued and
    outstanding; June 30, 2008 -
    10,923,773 issued and outstanding;         109       109       109
   Additional paid-in capital               46,872    46,866    46,826
   Retained earnings                        44,665    44,322    46,703
   Unearned shares issued to employee
    stock ownership trust                     (876)     (902)     (980)
   Accumulated other comprehensive loss     (1,656)   (1,732)     (618)
                                          --------  --------  --------
  Total shareholders' equity                89,114    88,663    92,040

  Noncontrolling interest                      382       364       317
                                          --------  --------  --------
   Total equity                             89,496    89,027    92,357
                                          --------  --------  --------

 TOTAL LIABILITIES AND EQUITY             $920,390  $914,333  $884,727
                                          ========  ========  ========


 RIVERVIEW BANCORP, INC. AND SUBSIDIARY
 Consolidated Statements of Operations
 (In thousands, except share data)   (Unaudited)

                                            Three Months Ended
                                     June 30,    March 31,   June 30,
                                       2009        2009        2008
 ---------------------------------------------------------------------
 INTEREST INCOME:
  Interest and fees on loans
   receivable                       $   11,710  $   12,195  $   13,324
  Interest on investment
   securities-taxable                       98         100          56
  Interest on investment
   securities-non taxable                   32          32          32
  Interest on mortgage-backed
   securities                               40          44          61
  Other interest and dividends              14          12          93
                                    ----------------------------------
   Total interest income                11,894      12,383      13,566

 INTEREST EXPENSE:
  Interest on deposits                   2,694       3,431       4,106
  Interest on borrowings                   520         665       1,093
                                    ----------------------------------
   Total interest expense                3,214       4,096       5,199
                                    ----------------------------------
 Net interest income                     8,680       8,287       8,367
 Less provision for loan losses          2,350       5,000       2,750
                                    ----------------------------------

 Net interest income after provision
  for loan losses                        6,330       3,287       5,617

 NON-INTEREST INCOME:
  Total other-than-temporary
   impairment losses                      (279)         --          --
  Portion of losses recognized in
   other comprehensive loss                 21          --          --
                                    ----------------------------------
  Net impairment losses recognized
   in earnings                            (258)         --          --

  Fees and service charges               1,244       1,136       1,210
  Asset management fees                    509         438         624
  Gain on sale of loans held for
   sale                                    401         493          52
  Bank owned life insurance income         151         134         146
  Other                                     56         558         150
                                    ----------------------------------
   Total non-interest income             2,103       2,759       2,182

 NON-INTEREST EXPENSE:
  Salaries and employee benefits         3,875       3,468       3,884
  Occupancy and depreciation             1,233       1,339       1,233
  Data processing                          240         219         199
  Amortization of core deposit
   intangible                               30          32          35
  Advertising and marketing expense        159         117         181
  FDIC insurance premium                   695         359         114
  State and local taxes                    149         160         175
  Telecommunications                       116         115         124
  Professional fees                        304         380         202
  Other                                  1,187         788         520
                                    ----------------------------------
   Total non-interest expense            7,988       6,977       6,667
                                    ----------------------------------

 INCOME (LOSS) BEFORE INCOME TAXES         445        (931)      1,132
 PROVISION (CREDIT) FOR INCOME TAXES       102        (211)        339
                                    ----------------------------------
 NET INCOME (LOSS)                  $      343  $     (720) $      793
                                    ==================================

 Earnings (loss) per common share:
 Basic                              $     0.03  $    (0.07) $     0.07
 Diluted                            $     0.03  $    (0.07) $     0.07
 Weighted average number of shares
  outstanding:
 Basic                              10,711,313  10,705,155  10,677,999
 Diluted                            10,711,313  10,705,155  10,698,292


 (Dollars in thousands)                        At or for the three
                                                  months ended
                                          June 30,  March 31, June 30,
                                            2009      2009      2008
                                          --------  --------  --------
 AVERAGE BALANCES
 ----------------
 Average interest-earning assets          $821,429  $846,670  $800,295
 Average interest-bearing liabilities      726,740   741,882   698,571
 Net average earning assets                 94,689   104,788   101,724
 Average loans                             791,548   816,355   767,040
 Average deposits                          645,942   678,989   641,670
 Average shareholders' equity               90,481    91,691    95,014
 Average tangible shareholders' equity      63,994    65,336    68,606


                                          June 30,  March 31, June 30,
 ASSET QUALITY                              2009      2009      2008
 -------------                            --------  --------  --------

 Non-performing loans                       41,057    27,570    22,957
 Non-performing loans to total loans          5.28%     3.44%     2.96%
 Real estate/repossessed assets owned       16,012    14,171       639
 Non-performing assets                      57,069    41,741    23,596
 Non-performing assets to total assets        6.20%     4.57%     2.67%
 Net loan charge-offs in the quarter         1,548     4,262       330
 Net charge-offs in the quarter/average
  net loans                                   0.78%     2.12%     0.17%

 Allowance for loan losses                  17,776    16,974    13,107
 Allowance for loan losses and unfunded
  loan commitments                          18,052    17,270    13,406
 Average interest-earning assets to
  average interest-bearing liabilities      113.03%   114.85%   114.56%
 Allowance for loan losses to
   non-performing loans                      43.30%    61.57%    57.09%
 Allowance for loan losses to total loans     2.28%     2.12%     1.69%
 Allowance for loan losses and unfunded
  loan commitments to total loans             2.32%     2.15%     1.73%
 Shareholders' equity to assets               9.68%     9.70%    10.40%


                                          June 30,  March 31, June 30,
 LOAN MIX                                   2009      2009      2008
 --------                                 --------  --------  --------
 Commercial and construction
  Commercial                              $127,366  $127,150  $110,620
  Other real estate mortgage               437,590   447,652   438,910
  Real estate construction                 123,505   139,476   142,206
                                          ----------------------------
   Total commercial and construction       688,461   714,278   691,736
 Consumer
  Real estate one-to-four family            86,686    83,762    81,625
  Other installment                          2,912     3,051     3,377
                                          ----------------------------
   Total consumer                           89,598    86,813    85,002

                                          ----------------------------
 Total loans                               778,059   801,091   776,738

 Less:
  Allowance for loan losses                 17,776    16,974    13,107
                                          ----------------------------
  Loans receivable, net                   $760,283  $784,117  $763,631
                                          ============================


    COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOAN TYPES BASED ON
                             LOAN PURPOSE
    --------------------------------------------------------------

                                Other                     Commercial
                             Real Estate  Real Estate   & Construction
                 Commercial   Mortgage    Construction      Total
                 ----------   --------    ------------      -----
  June 30, 2009               (Dollars in thousands)
  -------------
 Commercial       $ 127,366   $      --    $      --      $ 127,366
 Commercial
  construction           --          --       66,088         66,088
 Office buildings        --      88,290           --         88,290
 Warehouse/
  industrial             --      39,966           --         39,966
 Retail/shopping
  centers/strip
  malls                  --      80,652           --         80,652
 Assisted living
  facilities             --      26,658           --         26,658
 Single purpose
  facilities             --      88,326           --         88,326
 Land                    --      87,808           --         87,808
 Multi-family            --      25,890           --         25,890
 One-to-four
  family                 --          --       57,417         57,417
                 -----------------------------------------------------
  Total           $ 127,366   $ 437,590    $ 123,505      $ 688,461
                 =====================================================

  March 31, 2009              (Dollars in thousands)
  --------------
 Commercial       $ 127,150   $      --    $      --      $ 127,150
 Commercial
  construction           --          --       65,459         65,459
 Office buildings        --      90,621           --         90,621
 Warehouse/
  industrial             --      40,214           --         40,214
 Retail/shopping
  centers/strip
  malls                  --      81,233           --         81,233
 Assisted living
  facilities             --      26,743           --         26,743
 Single purpose
  facilities             --      88,574           --         88,574
 Land                    --      91,873           --         91,873
 Multi-family            --      28,394           --         28,394
 One-to-four
  family                 --          --       74,017         74,017
                 -----------------------------------------------------
  Total           $ 127,150   $ 447,652    $ 139,476      $ 714,278
                 =====================================================


 (Dollars in thousands)                 June 30,  March 31,   June 30,
 DEPOSIT MIX                              2009      2009        2008
 -----------                           ---------  ---------  ---------

 Interest checking                     $  91,097  $  96,629   $ 94,536
 Regular savings                          28,660     28,753     26,822
 Money market deposit accounts           190,289    178,479    175,364
 Non-interest checking                    85,261     88,528     77,721
 Certificates of deposit                 253,761    277,677    254,964
                                       -------------------------------
 Total deposits                        $ 649,068  $ 670,066  $ 629,407
                                       ===============================


 DETAIL OF NON-PERFORMING ASSETS
 -------------------------------

              Northwest  Other   Southwest     Other
                Oregon   Oregon  Washington  Washington  Other  Total
              --------- -------- ----------  ---------- ------ --------
 June 30, 2009                 (dollars in thousands)
 -------------
 Non-performing
  assets

  Commercial   $    50  $  3,808  $  4,479   $      --  $   -- $  8,337
  Commercial
   real estate      --        --        --          --      --      --
  Land              --       524     9,946         115   1,390   11,975
  Multi-family      --        --       275          --      --      275
  Commercial
   construction     --        --        --          31      --       31
  One-to-four
   family
   construction  6,983    10,429     1,749         270      --   19,431
  Real estate
   one-to-four
   family           --       150       787          71      --    1,008
  Consumer          --        --        --          --      --       --
              --------- -------- ----------  ---------- ------ --------
  Total non-
   performing
   loans         7,033    14,911    17,236         487   1,390   41,057

    REO          1,885     2,115     6,850       5,162      --   16,012
              --------- -------- ----------  ---------- ------ --------

  Total non-
   performing
   assets      $ 8,918  $ 17,026  $ 24,086   $   5,649  $1,390 $ 57,069
              ========= ======== ==========  =========  ====== ========


 DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS
 -------------------------------------------------------------

              Northwest  Other   Southwest     Other
                Oregon   Oregon  Washington  Washington  Other  Total
              --------- -------- ----------  ---------- ------ --------
 June 30, 2009                 (dollars in thousands)
 -------------
 Land and
  speculative
  construction
  loans

  Land
   development
   loans       $ 6,683  $  6,875  $ 64,590   $   3,048  $6,612 $ 87,808
  Speculative
   construction
   loans        13,612    14,085    17,293       2,057      --   47,047
              --------- -------- ----------  ---------- ------ --------

 Total land and
  speculative
  construction
  loans        $20,295  $ 20,960  $ 81,883   $   5,105  $6,612 $134,855
              ========= ======== ==========  =========  ====== ========


                                     At or for the three months ended
                                     June 30,    March 31,   June 30,
 SELECTED OPERATING DATA               2009        2009        2008
 -----------------------            ----------  ----------  ----------
                                       (Dollars in thousands, except
                                                share data)
 Efficiency ratio(4)                     74.08%      63.16%      63.20%
 Coverage ratio(6)                      108.66%     118.78%     125.50%
 Return on average assets(1)              0.15%      -0.32%       0.36%
 Return on average shareholders'
  equity(1)                               1.52%      -3.18%       3.35%
 Average rate earned on
  interest-earned assets                  5.82%       5.94%       6.81%
 Average rate paid on
  interest-bearing liabilities            1.77%       2.24%       2.99%
 Spread(7)                                4.05%       3.70%       3.82%
 Net interest margin                      4.25%       3.98%       4.20%

 PER SHARE DATA
 --------------
 Basic earnings per share(2)        $     0.03  $    (0.07) $     0.07
 Diluted earnings per share(3)            0.03       (0.07)       0.07
 Book value per share(5)                  8.16        8.12        8.43
 Tangible book value per share(5)         5.73        5.69        6.01
 Market price per share:
  High for the period               $     3.90  $     4.35  $     9.79
  Low for the period                      2.63        1.60        7.42
  Close for period end                    3.02        3.87        7.42
 Cash dividends declared per share          --          --        0.09

 Average number of shares
  outstanding:
  Basic(2)                          10,711,313  10,705,155  10,677,999
  Diluted(3)                        10,711,313  10,705,155  10,698,292

 (1) Amounts are annualized.
 (2) Amounts calculated exclude ESOP shares not committed to be
     released.
 (3) Amounts calculated 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.
CONTACT:  Riverview Bancorp, Inc.
          Pat Sheaffer
          Ron Wysaske
          360-693-6650