VANCOUVER, Wash.--(BUSINESS WIRE)--
Riverview Bancorp, Inc. (NASDAQ:RVSB) (“Riverview” or the “Company”),
the parent company of Riverview Community Bank (the “Bank”) today
announced that it expects to record a provision for loan losses of
between $14.0 million and $15.0 million (pre-tax) during the fourth
fiscal quarter-ended March 31, 2012 compared to an $8.1 million
provision for loan loss for the quarter ended December 31, 2011. As a
result, the allowance for loan loss balance will range between $18.0
million and $19.0 million as of March 31, 2012. The anticipated increase
in the provision for loan losses was primarily the result of updated
appraisals received on several properties as well as the Bank’s ongoing
internal loan review. As a result of the increase in the provision for
loan losses, the allowance for loan losses will be between 2.65% and
2.75% of total loans and 40% to 45% of nonperforming loans at March 31,
2012.
The increase in the fourth quarter provision for loan losses is expected
to result in a net loss for the quarter-ended March 31, 2012 ranging
from approximately $0.55 to $0.60 per share. Based on these estimates,
the Bank will continue to be “well-capitalized” per regulatory
guidelines.
About the Company
Riverview Bancorp, Inc. (www.riverviewbank.com)
is headquartered in Vancouver, Washington – just north of Portland,
Oregon on the I-5 corridor. With assets of $862 million, it is the
parent company of the 88 year-old Riverview Community Bank, as well as
Riverview Asset Management Corp. There are 17 branches, including twelve
in the Portland-Vancouver area and three lending centers. The Bank
offers true community banking services, focusing on providing the
highest quality service and financial products to commercial and retail
customers.
“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
amount of capital it intends to raise and its intended use of that
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 (OCC) 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; the Company’s compliance with
regulatory enforcement actions; we have entered into with the OCC as
successor to the Office of Thrift Supervision and the possibility that
our noncompliance could result in the imposition of additional
enforcement actions and additional requirements or restrictions on our
operations; 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 Securities and Exchange Commission.
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 2012 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.
Pat Sheaffer or Ron Wysaske, 360-693-6650
Source: Riverview Bancorp, Inc.