Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today reported earnings of $2.5 million, or $0.11 per
diluted share for the second fiscal quarter ended September 30,
2020, compared to $480,000, or $0.02 per diluted share, in the
preceding quarter, and $4.5 million, or $0.20 per diluted share, in
the second fiscal quarter a year ago. In the first six months of
fiscal 2021, net income was $3.0 million, or $0.14 per diluted
share, compared to $8.7 million, or $0.38 per diluted share, in the
first six months of fiscal 2020.
“Riverview’s second quarter financial results
continue to demonstrate the strength and resilience of our
franchise,” stated Kevin Lycklama, president and chief executive
officer. “We have remained focused on credit quality, maintaining
our strong capital position and our continuous pursuit of improving
operating efficiencies. I am extremely proud of the outstanding job
by our entire team, who have shown tremendous resiliency during the
ongoing pandemic and continue to provide the personal attention
that our local business partners have come to expect from
Riverview.”
Second Quarter
Highlights (at or for the period ended
September 30, 2020)
- Net income was $2.5 million, or
$0.11 per diluted share.
- Pre-tax, pre-provision for loan
losses income (non-GAAP) was $5.0 million for the quarter compared
to $5.1 million in the previous quarter and $5.9 million for the
quarter ended September 30, 2019.
- Net interest margin (NIM) was
3.33%.
- Provision for loan losses was $1.8
million, reflecting improved economic conditions and specific
industry exposure in the loan portfolio.
- Total loans were $975.2 million at
September 30, 2020. SBA PPP loans totaled $110.8 million.
- Total deposits increased $41.2
million, or 14.1% annualized, during the quarter to $1.20
billion.
- Non-performing assets decreased to
0.09% of total assets.
- Total risk-based capital ratio was
17.53% and Tier 1 leverage ratio was 9.82%.
- Paid a quarterly cash dividend of
$0.05 per share.
“We are encouraged by the positive improvements
noted during the quarter. Deposit activity has remained strong with
annualized growth of nearly 15%. Loan accommodations decreased
significantly during the quarter as our clients have experienced
steady recoveries as local markets reopen. The improvement in
regional business activity also had a positive impact on our
non-interest income during the quarter and we effectively executed
on our ongoing expense control measures,” Lycklama added.
COVID-19 Operational
Update:
-
Industry Exposure: Both Washington and Oregon have
modified phased reopening plans in place for businesses. While the
economic impact is widespread, some industries are more acutely
affected by the current business decline. Riverview’s loan
portfolio exposure to industries most affected by the COVID-19
pandemic include:
-
Hotel/Motel ($108.2 million, 11.0% of total loans)
-
Retail Strip Centers ($79.6 million, 8.1% of total loans)
-
Restaurants/Fast Food ($14.9 million, 1.5% of total loans)
Loans to these clients are generally secured by
real estate and had strong financial performance heading into the
current pandemic. The weighted average loan-to-value and debt
service coverage ratio for these portfolios were as follows:
Hotel/Motel (51% and 1.90x), Retail Strip Centers (53% and 1.56x),
and Restaurants/Fast Food (57% and 1.58x).
The Company continues to diligently monitor the
effects of the pandemic on our customers. We have allocated
additional staffing resources to conduct enhanced monitoring of our
loan portfolio and identify at-risk borrowers. We remain in close
contact and continue to work with these borrowers to develop longer
term strategies to mitigate potential credit losses.
- Loan
Accommodations:
- Commercial Loans.
Loan modifications decreased 87% during the quarter. As of
September 30, 2020, Riverview had 13 commercial loan accommodations
totaling $49.7 million, a decrease from 98 loans totaling $161.6
million at June 30, 2020. Of these 13 loans, two were new loan
accommodations approved during the quarter totaling $2.1 million.
In October, Riverview received three new loan accommodation
requests totaling $1.1 million to two different
borrowers.
- Consumer Loans. As
of September 30, 2020, there were four consumer loan accommodations
in our portfolio totaling $471,000, a decrease from 43 loans
totaling $10.1 million at June 30, 2020.
- Since all these loans were
performing and current on payments prior to COVID-19, these loan
modifications are not considered to be troubled debt restructurings
pursuant to provisions contained within the Coronavirus Aid,
Relief, and Economic Security Act (“CARES Act”).
-
Loan Loss Reserve: Riverview recorded a $1.8
million provision for loan losses for the quarter ended September
30, 2020, bringing the allowance for loan losses to $18.9 million,
or 1.93% of total loans, at September 30, 2020 compared to $17.1
million, or 1.70% of total loans, at June 30, 2020. “Our provision
for loan losses decreased during the quarter and reflects the
improvement in asset quality metrics in our portfolio and positive
economic trends in our local markets. We believe we are adequately
reserved for the current environment and are well-positioned to
support our long-term growth initiatives,” said David Lam,
executive vice president and chief financial officer.
-
Paycheck Protection Program
(“PPP”)
Loans: At September 30, 2020, Riverview had
originated 790 loans totaling approximately $116.4 million with an
average loan size of $147,000. Riverview did not originate any new
PPP loans during the second fiscal quarter of 2021. The following
table presents the breakdown of PPP loans as of September 30, 2020
(in thousands):
|
Range |
Number of loans |
|
|
Total |
|
|
Under $50,000 |
365 |
|
$ |
8,671 |
|
|
$50,001 to $150,000 |
251 |
|
|
21,633 |
|
|
$150,001 to $350,000 |
107 |
|
|
23,996 |
|
|
$350,001 to $2,000,000 |
59 |
|
|
40,191 |
|
|
Over $2,000,000 |
8 |
|
|
21,937 |
|
|
Total |
790 |
|
$ |
116,428 |
|
PPP loan fees totaled $4.1 million of which $2.8 million remains
unamortized as of September 30, 2020. These fees are deferred and
are realized over the life of the loan or will be recognized in
proportion to the amount of the loan when forgiven by the SBA. “We
are now starting to process applications for PPP loan forgiveness
for customers. We expect the timing of the loan forgiveness to have
a meaningful benefit to operating results beginning in the fourth
quarter of fiscal year 2021,” said Lycklama.
Income Statement
Return on average assets was 0.71% in the second
quarter of fiscal 2021 compared to 0.15% in the preceding quarter.
Return on average equity and return on average tangible equity
(non-GAAP) was 6.71% and 8.23%, respectively, compared to 1.28% and
1.57% for the prior quarter.
Riverview’s net interest income for the quarter
was $11.1 million, flat compared to the preceding quarter and
slightly lower than the $11.7 million reported in the second
quarter of the prior year. In the first six months of fiscal 2021,
net interest income was $22.2 million compared to $23.2 million in
the first six months of fiscal 2020.
The Company’s NIM continues to be impacted by
the increased level of excess liquidity. Second fiscal quarter NIM
(GAAP) was 3.33% compared to 3.65% in the prior quarter and 4.36%
in the second quarter of fiscal 2020. The decrease in NIM was
primarily due to the increase in liquidity and the decrease in the
yield on interest earning assets, which were partially offset by
decreases in the cost of interest-bearing liabilities. In the first
six months of fiscal 2021, the net interest margin was 3.48%
compared to 4.35% in the same period a year earlier.
The average balance of our overnight cash
balances increased $109.8 million sequentially and $194.0 million
compared to the prior year as a result of the increase in deposit
balances. The increase in overnight cash balances resulted in a 27
basis point decrease in the NIM compared to the prior quarter and a
55 basis point decrease compared to the same quarter a year
ago.
The accretion on purchased loans totaled
$123,000 compared to $137,000 during the preceding quarter and
$78,000 in the same period a year ago, resulting in a four basis
point increase in the NIM for the current period compared to a five
basis point increase for the preceding quarter and a two basis
point increase for the same period a year ago. Net fees on loan
prepayments, which included purchased SBA loan premiums, decreased
interest income by $77,000 which negatively affected the NIM by two
basis points during the second fiscal quarter of 2021. This
compares to $100,000 in net fees on loan prepayments decreasing the
NIM by four basis points for the first fiscal quarter of 2021 and
$112,000 in net fees on loan prepayments adding four basis points
to the NIM for the second fiscal quarter a year ago. SBA PPP loans
and related income and fees decreased the NIM by six basis points
during the quarter, and by four basis points during the preceding
quarter. This resulted in a core-NIM (non-GAAP) of 3.37% in the
current quarter compared to 3.68% in the preceding quarter and
4.30% in the second fiscal quarter a year ago.
Loan yield decreased 11 basis points during the
quarter to 4.58% compared to 4.69% in the preceding quarter
primarily as a result of the impact from the lower yielding SBA PPP
loans and the decline in market interest rates. Loan yield
excluding SBA PPP loans was 4.81% for the second quarter compared
to 4.83% in the preceding quarter.
The cost of deposits decreased to 0.22% during
the second quarter compared to 0.31% in the preceding quarter and
0.27% during the second quarter of fiscal 2020. The sequential
decrease in deposit costs during the September 30, 2020 quarter
reflects the impact from the recent cuts in the federal funds
target rate by the Federal Reserve in response to the COVID-19
pandemic. Deposit costs are expected to further decrease as a
result of the continued low interest rate environment and as
certificates of deposit reach maturity. There are $83.6 million in
CD balances that mature within one year of September 30, 2020, with
a weighted average rate of 1.35%.
Non-interest income increased $196,000 during
the quarter to $2.8 million compared to $2.6 million in the
preceding quarter and was lower when compared to $3.2 million in
the second fiscal quarter of 2020. Fees and service charges
increased compared to the prior quarter as economic activity and
consumer spending improved in Riverview’s local markets; however,
these amounts remain lower than prior year due to the overall
impact of the COVID pandemic. In the first six months of fiscal
2021, non-interest income was $5.4 million compared to $6.3 million
in the same period a year ago.
Asset management fees decreased to $883,000
during the second fiscal quarter compared to $974,000 in the
preceding quarter and $1.1 million in the prior year. The year over
year decrease was primarily due to the impact from the decline in
interest rates on fee generating products. Riverview Trust
Company’s assets under management was $1.3 billion at September 30,
2020, unchanged from three months earlier. Assets under management
were $690.5 million a year earlier.
Non-interest expense was $8.8 million compared
to $8.7 million in the preceding quarter and $9.0 million in the
second fiscal quarter a year ago. Salaries and employee benefits
was $5.4 million compared to $5.2 million in the preceding quarter
and $5.7 million in the second fiscal quarter a year ago. Salaries
and employee benefits during the prior quarter included the
deferral of compensation related to origination costs of SBA PPP
loans of $553,000. Occupancy and depreciation expense remained
comparable to the preceding quarter but was higher than a year ago,
as Riverview continues to invest in its technology infrastructure.
FDIC insurance premiums increased compared to the preceding quarter
to $84,000 due to the Company utilizing its remaining FDIC
assessment credits. Year-to-date, non-interest expense was $17.5
million compared to $18.2 million in the first six months of fiscal
2020.
The efficiency ratio was 63.7% for the second
fiscal quarter compared to 63.2% in the preceding quarter and 60.5%
in the second fiscal quarter a year ago.
Riverview’s effective tax rate for the second
quarter of fiscal year 2021 was 21.7% compared to 23.0% for the
second quarter a year ago.
Balance Sheet Review
Riverview’s total loans decreased $27.5 million
during the quarter to $975.2 million compared to $1.00 billion in
the preceding quarter and increased $93.9 million compared to
$881.3 million a year ago. Loan growth for the quarter was impacted
by continued payoffs and paydowns. The year over year increase was
primarily driven by SBA PPP loans originated during the prior
quarter. SBA PPP loans balances totaled $110.8 million at September
30, 2020. The decrease in real estate one-to-four family loans was
due to the strategic decision to broker all new loan originations
to third-party mortgage companies. The Company’s loan pipeline
increased to $74.6 million at September 30, 2020 compared to $27.9
million at the end of the prior quarter, as increased economic
activity in our markets helped stabilize and improve lending
activity.
Undisbursed construction loans totaled $12.0
million at September 30, 2020 compared to $18.1 million in the
preceding quarter, with the majority of the undisbursed
construction loans expected to fund over the next several quarters.
Revolving commercial business loan commitments totaled $73.9
million at September 30, 2020. Utilization on these loans totaled
8.7% at September 30, 2020 compared to 16.0% at June 30, 2020. The
weighted average rate on loan originations during the quarter was
4.12% at September 30, 2020 compared to 3.36% at June 30, 2020.
Deposits increased $41.2 million during the
quarter to $1.20 billion at September 30, 2020 compared to $1.16
billion in the preceding quarter and increased $217.7 million
compared to $982.3 million a year earlier. The increase in deposits
during the quarter was primarily concentrated in checking accounts,
which increased $23.9 million. Checking accounts as a percentage of
total deposits increased to 51.4% at September 30, 2020 from 48.7%
at September 30, 2019.
Shareholders’ equity was $149.0 million at
September 30, 2020 compared to $147.5 million three months earlier
and $143.1 million a year earlier. Tangible book value per share
(non-GAAP) increased to $5.43 at September 30, 2020 compared to
$5.38 at June 30, 2020 and $5.06 at September 30, 2019. Riverview
paid a quarterly cash dividend of $0.05 per share on October 20,
2020, consistent with the prior quarter.
Credit Quality
Non-performing loans totaled $1.3 million, or
0.13% of total loans, at September 30, 2020, flat compared to three
months earlier. Non-performing loans were $1.5 million, or 0.17% of
total loans, at September 30, 2019. Net loan charge-offs were
$10,000 during the second fiscal quarter of 2021 compared to
$48,000 in the preceding quarter and $6,000 in the second fiscal
quarter a year ago.
Classified assets totaled $4.8 million at
September 30, 2020 compared to $5.0 million at June 30, 2020 and
$4.3 million at September 30, 2019. The classified asset to total
capital ratio was 3.2% at September 30, 2020 compared to 3.3% three
months earlier and 3.0% a year earlier.
At September 30, 2020, the allowance for loan
losses increased to $18.9 million compared to $17.1 million in the
preceding quarter and $11.4 million one year earlier. The allowance
for loan losses represented 1.93% of total loans at September 30,
2020 compared to 1.70% in the preceding quarter and 1.30% a year
earlier. The allowance for loan losses to loans, net of SBA
guaranteed loans (including SBA PPP loans) (non-GAAP), was 2.35% at
September 30, 2020, and 2.08% at June 30, 2020. 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 $871,000 at September 30, 2020 compared to
$994,000 three months earlier.
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 17.53%
and a Tier 1 leverage ratio of 9.82% at September 30, 2020.
Tangible common equity to average tangible assets ratio (non-GAAP)
was 8.68% at September 30, 2020.
Branch
Consolidation
Riverview continues to actively review its
branch network for efficiencies due to customers’ increased usage
of online and mobile banking technologies. On September 28, 2020,
Riverview consolidated two of its branches in Clark County,
Washington and simultaneously opened a new branch in the Cascade
Park neighborhood of Vancouver. The Company also announced the
consolidation of one additional branch scheduled for January 2021.
Riverview plans to open a new location in Ridgefield, Washington
which is expected to open during the summer of 2021.
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. Management
has presented these non-GAAP financial measures in this earnings
release because it believes that they provide useful and
comparative information to assess trends in Riverview's core
operations reflected in the current quarter's results and
facilitate the comparison of our performance with the performance
of our peers. However, these non-GAAP financial measures are
supplemental and are not a substitute for any analysis based on
GAAP. Where applicable, comparable earnings information using GAAP
financial measures is also presented. Because not all companies use
the same calculations, our presentation may not be comparable to
other similarly titled measures as calculated by other companies.
For a reconciliation of these non-GAAP financial measures, see the
tables below.
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity to tangible assets and tangible book value per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP) |
|
$ |
149,046 |
|
|
$ |
147,478 |
|
|
$ |
143,119 |
|
|
$ |
148,843 |
|
|
|
|
Exclude: Goodwill |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
Exclude: Core deposit intangible, net |
|
|
(689 |
) |
|
|
(724 |
) |
|
|
(839 |
) |
|
|
(759 |
) |
|
|
|
Tangible shareholders' equity
(non-GAAP) |
|
$ |
121,281 |
|
|
$ |
119,678 |
|
|
$ |
115,204 |
|
|
$ |
121,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
|
$ |
1,425,171 |
|
|
$ |
1,377,374 |
|
|
$ |
1,173,019 |
|
|
$ |
1,180,808 |
|
|
|
|
Exclude: Goodwill |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
Exclude: Core deposit intangible, net |
|
|
(689 |
) |
|
|
(724 |
) |
|
|
(839 |
) |
|
|
(759 |
) |
|
|
|
Tangible assets
(non-GAAP) |
|
$ |
1,397,406 |
|
|
$ |
1,349,574 |
|
|
$ |
1,145,104 |
|
|
$ |
1,152,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity to total
assets (GAAP) |
|
|
10.46 |
% |
|
|
10.71 |
% |
|
|
12.20 |
% |
|
|
12.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets (non-GAAP) |
|
|
8.68 |
% |
|
|
8.87 |
% |
|
|
10.06 |
% |
|
|
10.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
22,336,235 |
|
|
|
22,245,472 |
|
|
|
22,748,385 |
|
|
|
22,544,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share
(GAAP) |
|
|
6.67 |
|
|
|
6.63 |
|
|
|
6.29 |
|
|
|
6.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share
(non-GAAP) |
|
|
5.43 |
|
|
|
5.38 |
|
|
|
5.06 |
|
|
|
5.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
(Dollars in thousands) |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
2,543 |
|
|
$ |
480 |
|
|
$ |
4,534 |
|
|
$ |
3,023 |
|
|
$ |
8,726 |
|
|
Include: Provision for income taxes |
|
|
704 |
|
|
|
86 |
|
|
|
1,351 |
|
|
|
790 |
|
|
|
2,571 |
|
|
Include: Provision for loan losses |
|
|
1,800 |
|
|
|
4,500 |
|
|
|
- |
|
|
|
6,300 |
|
|
|
- |
|
|
Pre-tax, pre-provision income
(non-GAAP) |
|
$ |
5,047 |
|
|
$ |
5,066 |
|
|
$ |
5,885 |
|
|
$ |
10,113 |
|
|
$ |
11,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin reconciliation to core net interest
margin |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
(Dollars in thousands) |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
$ |
11,064 |
|
|
$ |
11,128 |
|
|
$ |
11,719 |
|
|
$ |
22,192 |
|
|
$ |
23,189 |
|
|
Tax equivalent adjustment |
|
|
5 |
|
|
|
6 |
|
|
|
11 |
|
|
|
11 |
|
|
|
23 |
|
|
Net fees on loan prepayments |
|
|
77 |
|
|
|
100 |
|
|
|
(112 |
) |
|
|
177 |
|
|
|
(144 |
) |
|
Accretion on purchased MBank loans |
|
|
(123 |
) |
|
|
(137 |
) |
|
|
(78 |
) |
|
|
(260 |
) |
|
|
(186 |
) |
|
SBA PPP loans interest income and fees |
|
|
(760 |
) |
|
|
(666 |
) |
|
|
- |
|
|
|
(1,426 |
) |
|
|
- |
|
|
Adjusted net interest income
(non-GAAP) |
|
$ |
10,263 |
|
|
$ |
10,431 |
|
|
$ |
11,540 |
|
|
$ |
20,694 |
|
|
$ |
22,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
(Dollars in thousands) |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance of
interest-earning assets (GAAP) |
|
$ |
1,318,803 |
|
|
$ |
1,222,686 |
|
|
$ |
1,069,209 |
|
|
$ |
1,271,007 |
|
|
$ |
1,067,737 |
|
|
SBA PPP loans (average) |
|
|
(110,573 |
) |
|
|
(84,809 |
) |
|
|
- |
|
|
|
(97,762 |
) |
|
|
- |
|
|
Average balance of
interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
excluding SBA PPP loans (non-GAAP) |
|
$ |
1,208,230 |
|
|
$ |
1,137,877 |
|
|
$ |
1,069,209 |
|
|
$ |
1,173,245 |
|
|
$ |
1,067,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(GAAP) |
|
|
3.33 |
|
% |
|
3.65 |
|
% |
|
4.36 |
|
% |
|
3.48 |
|
% |
|
4.35 |
|
% |
Net fees on loan prepayments |
|
|
0.02 |
|
|
|
0.04 |
|
|
|
(0.04 |
) |
|
|
0.03 |
|
|
|
(0.03 |
) |
|
Accretion on purchased MBank loans |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.04 |
) |
|
SBA PPP loans |
|
|
0.06 |
|
|
|
0.04 |
|
|
|
0.00 |
|
|
|
0.05 |
|
|
|
0.00 |
|
|
Core net interest margin
(non-GAAP) |
|
|
3.37 |
|
% |
|
3.68 |
|
% |
|
4.30 |
|
% |
|
3.52 |
|
% |
|
4.28 |
|
% |
|
|
|
|
|
|
|
|
|
Allowance for
loan losses reconciliation, excluding SBA purchased and PPP
loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
18,866 |
|
|
$ |
17,076 |
|
|
$ |
11,436 |
|
|
$ |
12,624 |
|
|
|
|
|
|
|
|
|
|
Loans receivable (GAAP) |
|
$ |
975,174 |
|
|
$ |
1,002,720 |
|
|
$ |
881,316 |
|
|
$ |
911,509 |
|
Exclude: SBA purchased loans |
|
|
(61,990 |
) |
|
|
(70,853 |
) |
|
|
(68,932 |
) |
|
|
(74,797 |
) |
Exclude: SBA PPP loans |
|
|
(110,794 |
) |
|
|
(110,341 |
) |
|
|
- |
|
|
|
- |
|
Loans receivable excluding SBA
purchased and PPP loans (non-GAAP) |
|
$ |
802,390 |
|
|
$ |
821,526 |
|
|
$ |
812,384 |
|
|
$ |
836,712 |
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
loans receivable (GAAP) |
|
|
1.93 |
% |
|
|
1.70 |
% |
|
|
1.30 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
loans receivable excluding SBA purchased and PPP loans
(non-GAAP) |
|
|
2.35 |
% |
|
|
2.08 |
% |
|
|
1.41 |
% |
|
|
1.51 |
% |
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 $1.43 billion at
September 30, 2020, it is the parent company of the 97-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 clients through 18 branches, including 14 in the
Portland-Vancouver area, and 3 lending centers. For the past 7
years, Riverview has been named Best Bank by the readers of The
Vancouver Business Journal and The Columbian.
“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 effect of the
COVID-19 pandemic, including on our credit quality and business
operations, as well as the impact on general economic and financial
conditions and other uncertainties resulting from the COVID-19
pandemic, such as the extent and duration of the impact on public
health, the U.S. and global economies, and consumer and corporate
customers, including economic activity, employment levels and
market liquidity; 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 future goodwill impairment due to changes in the
Company’s business, changes in market conditions, including as a
result of the COVID-19 pandemic and other factors 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 2021 and beyond to differ
materially from those expressed in any forward-looking statements
by, or on behalf of, us, and could negatively affect the Company’s
operating and stock price performance.
RIVERVIEW BANCORP,
INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
Consolidated Balance
Sheets |
|
|
|
|
|
|
|
(In thousands, except share data) (Unaudited) |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
March 31, 2020 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (including interest-earning accounts of $226,583,
$143,017, |
$ |
238,016 |
|
$ |
157,835 |
|
$ |
48,888 |
|
$ |
41,968 |
$32,632 and $27,866) |
|
|
|
|
|
|
|
Certificate of deposits held for investment |
|
249 |
|
|
249 |
|
|
249 |
|
|
249 |
Loans held for sale |
|
- |
|
|
- |
|
|
310 |
|
|
275 |
Investment securities: |
|
|
|
|
|
|
|
Available for sale, at estimated fair value |
|
126,273 |
|
|
137,749 |
|
|
163,682 |
|
|
148,291 |
Held to maturity, at amortized cost |
|
24 |
|
|
26 |
|
|
31 |
|
|
28 |
Loans receivable (net of allowance for loan losses of $18,866, |
|
|
|
|
|
|
|
$17,076, $11,436, and $12,624) |
|
956,308 |
|
|
985,644 |
|
|
869,880 |
|
|
898,885 |
Prepaid expenses and other assets |
|
16,018 |
|
|
9,062 |
|
|
8,136 |
|
|
7,452 |
Accrued interest receivable |
|
5,341 |
|
|
5,202 |
|
|
3,827 |
|
|
3,704 |
Federal Home Loan Bank stock, at cost |
|
2,620 |
|
|
2,620 |
|
|
1,380 |
|
|
1,420 |
Premises and equipment, net |
|
17,296 |
|
|
16,124 |
|
|
13,943 |
|
|
15,570 |
Financing lease right-of-use assets |
|
1,470 |
|
|
1,489 |
|
|
1,547 |
|
|
1,508 |
Deferred income taxes, net |
|
3,076 |
|
|
3,067 |
|
|
3,296 |
|
|
3,277 |
Mortgage servicing rights, net |
|
128 |
|
|
162 |
|
|
247 |
|
|
191 |
Goodwill |
|
27,076 |
|
|
27,076 |
|
|
27,076 |
|
|
27,076 |
Core deposit intangible, net |
|
689 |
|
|
724 |
|
|
839 |
|
|
759 |
Bank owned life insurance |
|
30,587 |
|
|
30,345 |
|
|
29,688 |
|
|
30,155 |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,425,171 |
|
$ |
1,377,374 |
|
$ |
1,173,019 |
|
$ |
1,180,808 |
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
Deposits |
$ |
1,199,972 |
|
$ |
1,158,749 |
|
$ |
982,275 |
|
$ |
990,448 |
Accrued expenses and other liabilities |
|
16,087 |
|
|
11,472 |
|
|
17,502 |
|
|
11,783 |
Advance payments by borrowers for taxes and insurance |
|
1,011 |
|
|
632 |
|
|
1,117 |
|
|
703 |
Federal Home Loan Bank advances |
|
30,000 |
|
|
30,000 |
|
|
- |
|
|
- |
Junior subordinated debentures |
|
26,705 |
|
|
26,684 |
|
|
26,619 |
|
|
26,662 |
Capital lease obligations |
|
2,350 |
|
|
2,359 |
|
|
2,387 |
|
|
2,369 |
Total liabilities |
|
1,276,125 |
|
|
1,229,896 |
|
|
1,029,900 |
|
|
1,031,965 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
Serial preferred stock, $.01 par value; 250,000 authorized, |
|
|
|
|
|
|
|
issued and outstanding, none |
|
- |
|
|
- |
|
|
- |
|
|
- |
Common stock, $.01 par value; 50,000,000 authorized, |
|
|
|
|
|
|
|
September 30, 2020 - 22,336,235 issued and outstanding; |
|
|
|
|
|
|
|
June 30, 2020 – 22,245,472 issued and outstanding; |
|
222 |
|
|
222 |
|
|
227 |
|
|
225 |
September 30, 2019 - 22,748,385 issued and outstanding; |
|
|
|
|
|
|
|
March 31, 2020 – 22,748,385 issued and 22,544,285 outstanding; |
|
|
|
|
|
|
|
Additional paid-in capital |
|
63,420 |
|
|
63,254 |
|
|
65,559 |
|
|
64,649 |
Retained earnings |
|
82,666 |
|
|
81,240 |
|
|
77,112 |
|
|
81,870 |
Accumulated other comprehensive income |
|
2,738 |
|
|
2,762 |
|
|
221 |
|
|
2,099 |
Total shareholders’ equity |
|
149,046 |
|
|
147,478 |
|
|
143,119 |
|
|
148,843 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
1,425,171 |
|
$ |
1,377,374 |
|
$ |
1,173,019 |
|
$ |
1,180,808 |
RIVERVIEW BANCORP,
INC. AND SUBSIDIARY |
|
|
|
|
|
|
Consolidated
Statements of Income |
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(In thousands, except share data) (Unaudited) |
Sept. 30, 2020 |
June 30, 2020 |
Sept. 30, 2019 |
|
Sept. 30, 2020 |
Sept. 30, 2019 |
INTEREST INCOME: |
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
11,346 |
$ |
11,528 |
$ |
11,893 |
|
$ |
22,874 |
$ |
23,447 |
Interest on investment securities - taxable |
|
505 |
|
655 |
|
860 |
|
|
1,160 |
|
1,738 |
Interest on investment securities - nontaxable |
|
17 |
|
18 |
|
36 |
|
|
35 |
|
73 |
Other interest and dividends |
|
81 |
|
37 |
|
93 |
|
|
118 |
|
180 |
Total interest and dividend income |
|
11,949 |
|
12,238 |
|
12,882 |
|
|
24,187 |
|
25,438 |
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
Interest on deposits |
|
657 |
|
858 |
|
660 |
|
|
1,515 |
|
1,011 |
Interest on borrowings |
|
228 |
|
252 |
|
503 |
|
|
480 |
|
1,238 |
Total interest expense |
|
885 |
|
1,110 |
|
1,163 |
|
|
1,995 |
|
2,249 |
Net interest income |
|
11,064 |
|
11,128 |
|
11,719 |
|
|
22,192 |
|
23,189 |
Provision for loan losses |
|
1,800 |
|
4,500 |
|
- |
|
|
6,300 |
|
- |
|
|
|
|
|
|
|
Net interest income after
provision for loan losses |
|
9,264 |
|
6,628 |
|
11,719 |
|
|
15,892 |
|
23,189 |
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
Fees and service charges |
|
1,663 |
|
1,398 |
|
1,752 |
|
|
3,061 |
|
3,389 |
Asset management fees |
|
883 |
|
974 |
|
1,090 |
|
|
1,857 |
|
2,233 |
Net gain on sale of loans held for sale |
|
- |
|
28 |
|
46 |
|
|
28 |
|
142 |
Bank owned life insurance |
|
242 |
|
190 |
|
204 |
|
|
432 |
|
397 |
Other, net |
|
31 |
|
33 |
|
77 |
|
|
64 |
|
144 |
Total non-interest income, net |
|
2,819 |
|
2,623 |
|
3,169 |
|
|
5,442 |
|
6,305 |
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
Salaries and employee benefits |
|
5,379 |
|
5,192 |
|
5,697 |
|
|
10,571 |
|
11,412 |
Occupancy and depreciation |
|
1,457 |
|
1,450 |
|
1,277 |
|
|
2,907 |
|
2,597 |
Data processing |
|
697 |
|
661 |
|
669 |
|
|
1,358 |
|
1,349 |
Amortization of core deposit intangible |
|
35 |
|
35 |
|
41 |
|
|
70 |
|
81 |
Advertising and marketing |
|
110 |
|
129 |
|
298 |
|
|
239 |
|
508 |
FDIC insurance premium |
|
84 |
|
48 |
|
- |
|
|
132 |
|
80 |
State and local taxes |
|
204 |
|
204 |
|
174 |
|
|
408 |
|
369 |
Telecommunications |
|
85 |
|
86 |
|
76 |
|
|
171 |
|
162 |
Professional fees |
|
321 |
|
320 |
|
263 |
|
|
641 |
|
588 |
Other |
|
464 |
|
560 |
|
508 |
|
|
1,024 |
|
1,051 |
Total non-interest expense |
|
8,836 |
|
8,685 |
|
9,003 |
|
|
17,521 |
|
18,197 |
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
|
3,247 |
|
566 |
|
5,885 |
|
|
3,813 |
|
11,297 |
PROVISION FOR INCOME
TAXES |
|
704 |
|
86 |
|
1,351 |
|
|
790 |
|
2,571 |
NET INCOME |
$ |
2,543 |
$ |
480 |
$ |
4,534 |
|
$ |
3,023 |
$ |
8,726 |
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
Basic |
$ |
0.11 |
$ |
0.02 |
$ |
0.20 |
|
$ |
0.14 |
$ |
0.39 |
Diluted |
$ |
0.11 |
$ |
0.02 |
$ |
0.20 |
|
$ |
0.14 |
$ |
0.38 |
Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
Basic |
|
22,261,709 |
|
22,178,427 |
|
22,643,103 |
|
|
22,259,201 |
|
22,631,406 |
Diluted |
|
22,276,312 |
|
22,198,065 |
|
22,702,696 |
|
|
22,276,308 |
|
22,694,067 |
(Dollars in thousands) |
At or for the three months ended |
|
At or for the six months ended |
|
Sept. 30, 2020 |
|
June 30, 2020 |
|
Sept. 30, 2019 |
|
Sept. 30, 2020 |
|
Sept. 30, 2019 |
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
Average interest–earning assets |
$ |
1,318,803 |
|
|
$ |
1,222,686 |
|
|
$ |
1,069,209 |
|
|
$ |
1,271,007 |
|
$ |
1,067,737 |
Average interest-bearing
liabilities |
|
854,303 |
|
|
|
808,715 |
|
|
|
708,846 |
|
|
|
831,634 |
|
|
718,856 |
Net average earning assets |
|
464,500 |
|
|
|
413,971 |
|
|
|
360,363 |
|
|
|
439,373 |
|
|
348,881 |
Average loans |
|
983,737 |
|
|
|
986,816 |
|
|
|
889,208 |
|
|
|
985,268 |
|
|
883,350 |
Average deposits |
|
1,190,551 |
|
|
|
1,105,540 |
|
|
|
952,283 |
|
|
|
1,148,277 |
|
|
936,507 |
Average equity |
|
150,401 |
|
|
|
150,707 |
|
|
|
142,195 |
|
|
|
150,553 |
|
|
139,409 |
Average tangible equity
(non-GAAP) |
|
122,615 |
|
|
|
122,885 |
|
|
|
114,256 |
|
|
|
122,749 |
|
|
111,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
Sept. 30, 2020 |
|
June 30, 2020 |
|
Sept. 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
$ |
1,275 |
|
|
$ |
1,288 |
|
|
$ |
1,485 |
|
|
|
|
|
Non-performing loans to total
loans |
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.17 |
% |
|
|
|
|
Real estate/repossessed assets
owned |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
Non-performing assets |
$ |
1,275 |
|
|
$ |
1,288 |
|
|
$ |
1,485 |
|
|
|
|
|
Non-performing assets to total
assets |
|
0.09 |
% |
|
|
0.09 |
% |
|
|
0.13 |
% |
|
|
|
|
Net loan charge-offs in the
quarter |
$ |
10 |
|
|
$ |
48 |
|
|
$ |
6 |
|
|
|
|
|
Net charge-offs in the
quarter/average net loans |
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
18,866 |
|
|
$ |
17,076 |
|
|
$ |
11,436 |
|
|
|
|
|
Average interest-earning assets
to average |
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
154.37 |
% |
|
|
151.19 |
% |
|
|
150.84 |
% |
|
|
|
|
Allowance for loan losses to |
|
|
|
|
|
|
|
|
|
non-performing loans |
|
1479.69 |
% |
|
|
1325.78 |
% |
|
|
770.10 |
% |
|
|
|
|
Allowance for loan losses to
total loans |
|
1.93 |
% |
|
|
1.70 |
% |
|
|
1.30 |
% |
|
|
|
|
Shareholders’ equity to
assets |
|
10.46 |
% |
|
|
10.71 |
% |
|
|
12.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
Total capital (to risk weighted
assets) |
|
17.53 |
% |
|
|
17.40 |
% |
|
|
17.27 |
% |
|
|
|
|
Tier 1 capital (to risk weighted
assets) |
|
16.26 |
% |
|
|
16.14 |
% |
|
|
16.02 |
% |
|
|
|
|
Common equity tier 1 (to risk
weighted assets) |
|
16.26 |
% |
|
|
16.14 |
% |
|
|
16.02 |
% |
|
|
|
|
Tier 1 capital (to average
tangible assets) |
|
9.82 |
% |
|
|
10.55 |
% |
|
|
11.79 |
% |
|
|
|
|
Tangible common equity (to
average tangible assets) (non-GAAP) |
|
8.68 |
% |
|
|
8.87 |
% |
|
|
10.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
MIX |
Sept. 30, 2020 |
|
June 30, 2020 |
|
Sept. 30, 2019 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
$ |
229,879 |
|
|
$ |
216,041 |
|
|
$ |
178,854 |
|
|
$ |
187,798 |
|
|
Regular savings |
|
251,547 |
|
|
|
247,966 |
|
|
|
196,340 |
|
|
|
226,880 |
|
|
Money market deposit
accounts |
|
200,829 |
|
|
|
182,328 |
|
|
|
186,842 |
|
|
|
169,798 |
|
|
Non-interest checking |
|
386,408 |
|
|
|
376,372 |
|
|
|
299,062 |
|
|
|
271,031 |
|
|
Certificates of deposit |
|
131,309 |
|
|
|
136,042 |
|
|
|
121,177 |
|
|
|
134,941 |
|
|
Total deposits |
$ |
1,199,972 |
|
|
$ |
1,158,749 |
|
|
$ |
982,275 |
|
|
$ |
990,448 |
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
Commercial |
|
Real Estate |
|
Real Estate |
|
& Construction |
|
|
Business |
|
Mortgage |
|
Construction |
|
Total |
|
|
|
|
|
|
|
|
|
September 30, 2020 |
|
(Dollars in thousands) |
Commercial business |
|
$ |
170,876 |
|
$ |
- |
|
$ |
- |
|
$ |
170,876 |
SBA PPP |
|
|
110,794 |
|
|
- |
|
|
- |
|
|
110,794 |
Commercial construction |
|
|
- |
|
|
- |
|
|
20,260 |
|
|
20,260 |
Office buildings |
|
|
- |
|
|
129,865 |
|
|
- |
|
|
129,865 |
Warehouse/industrial |
|
|
- |
|
|
75,160 |
|
|
- |
|
|
75,160 |
Retail/shopping centers/strip
malls |
|
|
- |
|
|
79,155 |
|
|
- |
|
|
79,155 |
Assisted living facilities |
|
|
- |
|
|
837 |
|
|
- |
|
|
837 |
Single purpose facilities |
|
|
- |
|
|
240,960 |
|
|
- |
|
|
240,960 |
Land |
|
|
- |
|
|
14,531 |
|
|
- |
|
|
14,531 |
Multi-family |
|
|
- |
|
|
49,878 |
|
|
- |
|
|
49,878 |
One-to-four family
construction |
|
|
- |
|
|
- |
|
|
8,048 |
|
|
8,048 |
Total |
|
$ |
281,670 |
|
$ |
590,386 |
|
$ |
28,308 |
|
$ |
900,364 |
|
|
|
|
|
|
|
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
179,029 |
|
$ |
- |
|
$ |
- |
|
$ |
179,029 |
Commercial construction |
|
|
- |
|
|
- |
|
|
52,608 |
|
|
52,608 |
Office buildings |
|
|
- |
|
|
113,433 |
|
|
- |
|
|
113,433 |
Warehouse/industrial |
|
|
- |
|
|
91,764 |
|
|
- |
|
|
91,764 |
Retail/shopping centers/strip
malls |
|
|
- |
|
|
76,802 |
|
|
- |
|
|
76,802 |
Assisted living facilities |
|
|
- |
|
|
1,033 |
|
|
- |
|
|
1,033 |
Single purpose facilities |
|
|
- |
|
|
224,839 |
|
|
- |
|
|
224,839 |
Land |
|
|
- |
|
|
14,026 |
|
|
- |
|
|
14,026 |
Multi-family |
|
|
- |
|
|
58,374 |
|
|
- |
|
|
58,374 |
One-to-four family
construction |
|
|
- |
|
|
- |
|
|
12,235 |
|
|
12,235 |
Total |
|
$ |
179,029 |
|
$ |
580,271 |
|
$ |
64,843 |
|
$ |
824,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN MIX |
|
Sept. 30, 2020 |
|
June 30, 2020 |
|
Sept. 30, 2019 |
|
March 31, 2020 |
Commercial and construction |
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
281,670 |
|
$ |
281,832 |
|
$ |
167,782 |
|
$ |
179,029 |
Other real estate mortgage |
|
|
590,386 |
|
|
600,093 |
|
|
541,715 |
|
|
580,271 |
Real estate construction |
|
|
28,308 |
|
|
37,824 |
|
|
83,174 |
|
|
64,843 |
Total commercial and construction |
|
|
900,364 |
|
|
919,749 |
|
|
792,671 |
|
|
824,143 |
Consumer |
|
|
|
|
|
|
|
|
Real estate one-to-four family |
|
|
71,940 |
|
|
79,582 |
|
|
82,578 |
|
|
83,150 |
Other installment |
|
|
2,870 |
|
|
3,389 |
|
|
6,067 |
|
|
4,216 |
Total consumer |
|
|
74,810 |
|
|
82,971 |
|
|
88,645 |
|
|
87,366 |
|
|
|
|
|
|
|
|
|
Total loans |
|
|
975,174 |
|
|
1,002,720 |
|
|
881,316 |
|
|
911,509 |
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
18,866 |
|
|
17,076 |
|
|
11,436 |
|
|
12,624 |
Loans receivable, net |
|
$ |
956,308 |
|
$ |
985,644 |
|
$ |
869,880 |
|
$ |
898,885 |
DETAIL OF
NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
Southwest |
|
|
|
|
|
|
|
|
|
|
Oregon |
|
Washington |
|
Other |
|
Total |
|
|
September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
business |
|
$ |
- |
|
$ |
191 |
|
|
$ |
- |
|
$ |
191 |
|
|
Commercial real
estate |
|
|
851 |
|
|
154 |
|
|
|
- |
|
|
1,005 |
|
|
Consumer |
|
|
- |
|
|
58 |
|
|
|
21 |
|
|
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
|
$ |
851 |
|
$ |
403 |
|
|
$ |
21 |
|
$ |
1,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF
LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
|
|
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Total |
|
|
September 30, 2020 |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
development |
|
$ |
2,125 |
|
$ |
1,803 |
|
|
$ |
10,603 |
|
$ |
14,531 |
|
|
Speculative
construction |
|
|
- |
|
|
- |
|
|
|
6,377 |
|
|
6,377 |
|
|
|
Total land
development |
|
|
|
|
|
|
|
|
|
|
|
|
and speculative construction |
|
$ |
2,125 |
|
$ |
1,803 |
|
|
$ |
16,980 |
|
$ |
20,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF
LOAN MODIFICATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
Number of Loan Deferrals |
|
|
|
|
6/30/2020 |
|
Ended |
|
New |
|
9/30/2020 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel / Motel |
|
|
25 |
|
|
(19 |
) |
|
|
2 |
|
|
8 |
|
(68.0)% |
|
Retail strip
centers |
|
|
15 |
|
|
(12 |
) |
|
|
- |
|
|
3 |
|
(80.0)% |
|
Restaurants |
|
|
10 |
|
|
(10 |
) |
|
|
- |
|
|
- |
|
(100.0)% |
|
Gas Station / Auto
Repair |
|
|
12 |
|
|
(12 |
) |
|
|
- |
|
|
- |
|
(100.0)% |
|
Other -
Commercial |
|
|
36 |
|
|
(34 |
) |
|
|
- |
|
|
2 |
|
(94.4)% |
|
|
Total
Commercial |
|
|
98 |
|
|
(87 |
) |
|
|
2 |
|
|
13 |
|
(86.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
43 |
|
|
(36 |
) |
|
|
- |
|
|
4 |
|
(90.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
141 |
|
|
(123 |
) |
|
|
2 |
|
|
17 |
|
(87.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Deferrals |
|
|
|
|
6/30/2020 |
|
Ended |
|
New |
|
9/30/2020 |
|
Change |
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel / Motel |
|
$ |
78,397 |
|
$ |
(45,417 |
) |
|
$ |
2,079 |
|
$ |
35,059 |
|
(55.3)% |
|
Retail strip
centers |
|
|
21,544 |
|
|
(14,751 |
) |
|
|
- |
|
|
6,793 |
|
(68.5)% |
|
Restaurants |
|
|
7,179 |
|
|
(7,179 |
) |
|
|
- |
|
|
- |
|
(100.0)% |
|
Gas Station / Auto
Repair |
|
|
16,599 |
|
|
(16,599 |
) |
|
|
- |
|
|
- |
|
(100.0)% |
|
Other -
Commercial |
|
|
37,881 |
|
|
(30,049 |
) |
|
|
- |
|
|
7,832 |
|
(79.3)% |
|
|
Total
Commercial |
|
|
161,600 |
|
|
(113,995 |
) |
|
|
2,079 |
|
|
49,684 |
|
(69.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
10,100 |
|
|
(9,629 |
) |
|
|
- |
|
|
471 |
|
(95.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
171,700 |
|
$ |
(123,624 |
) |
|
$ |
2,079 |
|
$ |
50,155 |
|
(70.8)% |
|
|
At or for the three months ended |
|
At or for the six months ended |
SELECTED OPERATING DATA |
Sept. 30, 2020 |
|
June 30, 2020 |
|
Sept. 30, 2019 |
|
Sept. 30, 2020 |
|
Sept. 30, 2019 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
63.65 |
% |
|
|
63.16 |
% |
|
|
60.47 |
% |
|
|
63.40 |
% |
|
|
61.70 |
% |
Coverage ratio (6) |
|
125.22 |
% |
|
|
128.13 |
% |
|
|
130.17 |
% |
|
|
126.66 |
% |
|
|
127.43 |
% |
Return on average assets
(1) |
|
0.71 |
% |
|
|
0.15 |
% |
|
|
1.55 |
% |
|
|
0.44 |
% |
|
|
1.51 |
% |
Return on average equity
(1) |
|
6.71 |
% |
|
|
1.28 |
% |
|
|
12.68 |
% |
|
|
4.00 |
% |
|
|
12.52 |
% |
Return on average tangible
equity (1) (non-GAAP) |
|
8.23 |
% |
|
|
1.57 |
% |
|
|
15.79 |
% |
|
|
4.91 |
% |
|
|
15.66 |
% |
|
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
|
|
|
|
|
|
|
Yield on loans |
|
4.58 |
% |
|
|
4.69 |
% |
|
|
5.32 |
% |
|
|
4.63 |
% |
|
|
5.31 |
% |
Yield on investment
securities |
|
1.62 |
% |
|
|
1.95 |
% |
|
|
2.15 |
% |
|
|
1.79 |
% |
|
|
2.12 |
% |
Total yield on interest-earning assets |
|
3.60 |
% |
|
|
4.02 |
% |
|
|
4.80 |
% |
|
|
3.80 |
% |
|
|
4.77 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of interest-bearing
deposits |
|
0.33 |
% |
|
|
0.45 |
% |
|
|
0.40 |
% |
|
|
0.39 |
% |
|
|
0.31 |
% |
Cost of FHLB advances and
other borrowings |
|
1.53 |
% |
|
|
2.02 |
% |
|
|
3.72 |
% |
|
|
1.75 |
% |
|
|
3.53 |
% |
Total cost of interest-bearing liabilities |
|
0.41 |
% |
|
|
0.55 |
% |
|
|
0.65 |
% |
|
|
0.48 |
% |
|
|
0.63 |
% |
|
|
|
|
|
|
|
|
|
|
Spread (7) |
|
3.19 |
% |
|
|
3.47 |
% |
|
|
4.15 |
% |
|
|
3.32 |
% |
|
|
4.14 |
% |
Net interest margin |
|
3.33 |
% |
|
|
3.65 |
% |
|
|
4.36 |
% |
|
|
3.48 |
% |
|
|
4.35 |
% |
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
Basic earnings per share
(2) |
$ |
0.11 |
|
|
$ |
0.02 |
|
|
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
0.39 |
|
Diluted earnings per share
(3) |
|
0.11 |
|
|
|
0.02 |
|
|
|
0.20 |
|
|
|
0.14 |
|
|
|
0.38 |
|
Book value per share (5) |
|
6.67 |
|
|
|
6.63 |
|
|
|
6.29 |
|
|
|
6.67 |
|
|
|
6.29 |
|
Tangible book value per share
(5) (non-GAAP) |
|
5.43 |
|
|
|
5.38 |
|
|
|
5.06 |
|
|
|
5.43 |
|
|
|
5.06 |
|
Market price per share: |
|
|
|
|
|
|
|
|
|
High for the period |
$ |
5.31 |
|
|
$ |
6.12 |
|
|
$ |
8.55 |
|
|
$ |
6.12 |
|
|
$ |
8.55 |
|
Low for the period |
|
3.82 |
|
|
|
4.20 |
|
|
|
6.87 |
|
|
|
3.82 |
|
|
|
6.87 |
|
Close for period end |
|
4.15 |
|
|
|
5.65 |
|
|
|
7.38 |
|
|
|
4.15 |
|
|
|
7.38 |
|
Cash dividends declared per
share |
|
0.0500 |
|
|
|
0.0500 |
|
|
|
0.0450 |
|
|
|
0.1000 |
|
|
|
0.0900 |
|
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic (2) |
|
22,261,709 |
|
|
|
22,178,427 |
|
|
|
22,643,103 |
|
|
|
22,259,201 |
|
|
|
22,631,406 |
|
Diluted (3) |
|
22,276,312 |
|
|
|
22,198,065 |
|
|
|
22,702,696 |
|
|
|
22,276,308 |
|
|
|
22,694,067 |
|
(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.
Contact: |
Kevin Lycklama
or David Lam |
|
Riverview Bancorp, Inc. 360-693-6650 |
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