Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today reported net income increased 38% to $4.2 million,
or $0.19 per diluted share, in its second fiscal quarter ended
September 30, 2018, compared to $3.1 million, or $0.14 per diluted
share, in the second fiscal quarter a year ago. In the preceding
quarter net income was $4.4 million, or $0.20 per diluted share.
“During the second quarter, we continued to
improve our operating performance, with strong loan origination,
solid net interest income and a healthy net interest margin,” said
Kevin Lycklama, president and chief executive officer. “Our
continued financial success reflects the hard work and commitment
of our team in serving our customers and expanding our franchise.
As we look to the future, we are in pursuit of growth
opportunities, both organically and through strategic partnerships,
while remaining focused on profitability and increasing shareholder
value.”
Second Quarter Highlights (at or for the
period ended September 30, 2018)
- Net income of $4.2 million, or
$0.19 per diluted share.
- Net interest margin (NIM) expanded
by 30 basis points to 4.33% compared to the second quarter a year
ago.
- Return on average assets increased
to 1.46%. compared to the second quarter a year ago.
- Return on average equity improved
to 13.68% compared to the second quarter a year ago.
- Total loans increased $23.3 million
during the quarter to $849.8 million at September 30, 2018.
- Non-performing assets improved to
0.20% of total assets.
- Tangible book value per share was
$4.17.
- Total risk-based capital ratio was
15.82% and Tier 1 leverage ratio was 10.72%.
- Riverview Trust Company’s assets
under management increased $38.8 million, or 6.7%, to $614.0
million.
- Declared a quarterly cash dividend
of $0.035 per share, generating a current dividend yield of 1.70%
based on the October 12, 2018 share price.
Income
Statement
Riverview’s second fiscal quarter net interest
margin increased 30 basis points to 4.33% compared to the second
fiscal quarter a year ago. The collection of $98,000 of non-accrual
interest from a prior charged-off loan added four basis points to
the NIM and the interest accretion on purchased loans totaled
$152,000 resulting in a seven basis point increase in the NIM. In
the preceding quarter, Riverview’s NIM was 4.40%, which was driven
by both the collection of approximately $585,000 of non-accrual
interest from prior charged-off loans, adding 23 basis points to
the NIM, and the interest accretion on purchased loans which was
$122,000 and added five basis points to the NIM. In the first six
months of fiscal 2019, Riverview’s NIM increased 30 basis points to
4.36%, compared to the same period a year earlier.
The weighted average rate on loans originated
during the quarter ended September 30, 2018, increased to 5.63%
compared to 5.37% for the quarter ended June 30, 2018, and 4.85%
for the quarter ended September 30, 2017.
Net interest income was $11.6 million, a modest
increase compared to $11.5 million in the preceding quarter, and an
$877,000 increase compared to $10.7 million in the second fiscal
quarter a year ago. The increase was primarily driven by the
expansion of our loan portfolio as well as the rise in loan yields.
In the first six months of fiscal 2019, net interest income was
$23.1 million, compared to $21.2 million in the first six months of
fiscal 2018.
Non-interest income was $3.0 million compared to
$3.1 million in the preceding quarter and $2.7 million in the same
quarter a year ago. Year to date non-interest income was $6.1
million compared to $5.5 million in the same period in the prior
year. The non-interest income growth was fueled by rising
interchange income and loan prepayment fees collected. Other
non-interest income included a net gain of approximately $70,000 on
the sale of deposit accounts associated with the Company’s
Longview, WA branch which was closed as of September 28, 2018.
Asset management fees increased to $943,000 in
the second fiscal quarter of 2019 compared to $926,000 in the
preceding quarter and $818,000 in the second fiscal quarter a year
ago. Riverview Trust Company’s assets under management increased to
$614.0 million at September 30, 2018, compared to $575.2 million
three months earlier and $461.2 million one year earlier.
The efficiency ratio improved to 61.0% for the
second fiscal quarter compared to 62.0% in the preceding quarter
and 65.2% in the second fiscal quarter a year ago. Non-interest
expense decreased to $8.9 million during the second fiscal quarter
of 2019 compared to $9.0 million in the preceding quarter,
reflecting a reduction in personnel expenses. In the first six
months of fiscal 2019, non-interest expense was $17.9 million,
which was unchanged compared to the same period a year earlier. The
Company continues to focus on controlling operating expenses and
focusing its expenditures on programs aimed towards driving growth
and improved profitability.
Riverview’s effective tax rate for its second
fiscal quarter of 2019 was 22.4% as a result of the passage of the
Tax Cuts and Jobs Act compared to 34.6% in the second fiscal
quarter a year ago.
Balance Sheet Review
Riverview’s total loans increased $23.3 million
during the quarter to $849.8 million at September 30, 2018, an
annualized growth rate of 11.1%. The increase was primarily
concentrated in commercial business and commercial construction
loans. Undisbursed construction loans totaled $82.0 million at
September 30, 2018, compared to $75.5 million three months earlier.
The majority of the undisbursed construction loans are expected to
fund over the next several quarters. The loan pipeline increased to
$91.9 million at September 30, 2018 compared to $75.5 million at
the end of the prior quarter.
“Loan demand has remained strong as our team of
bankers continue to expand our lending relationships,” said
Lycklama. “During the quarter, we added two new experienced bankers
to our commercial lending team. We are excited by the energy
and commitment to our community that these new lenders have added
to our existing team.”
Total deposits remained flat at $982.3 million
at September 30, 2018, compared to three months earlier and
decreased slightly compared to $990.3 million a year ago.
Non-interest checking balances increased $11.8 million during the
current quarter, which was offset by a decrease in certificates of
deposits and money market accounts. As a result, the cost of
deposits decreased to 0.10% compared to 0.11% three months
earlier.
Shareholders’ equity improved to $122.4 million
at September 30, 2018, compared to $119.8 million three months
earlier and $116.7 million a year earlier. Tangible book value per
share (non-GAAP) increased to $4.17 at September 30, 2018, compared
to $4.06 at June 30, 2018 and $3.93 at September 30, 2017. A
quarterly cash dividend of $0.035 per share was paid on October 23,
2018.
Credit Quality
Riverview recorded a $250,000 provision for loan
losses during the second fiscal quarter of 2019. This
compares to a $200,000 recapture for loan losses in the preceding
quarter and no provision for loan losses for the second fiscal
quarter a year ago. “We increased our provision for loan losses
primarily due to the robust growth in the loan portfolio during the
quarter,” said Lycklama.
Non-performing loans were $2.3 million, or 0.27%
of total loans, at September 30, 2018 compared to $2.3 million, or
0.28% of total loans, three months earlier and $2.7 million, or
0.35% of total loans at September 30, 2017. Riverview had no real
estate owned balances at September 30, 2018, or at June 30, 2018.
Riverview had $298,000 in real estate owned balances as of
September 30, 2017.
Net loan charge offs were $86,000 during the
second fiscal quarter of 2019 compared to net loan recoveries of
$783,000 during the first fiscal quarter of 2019. The large
increase in recoveries during the preceding quarter was primarily
due to the collection of a prior charge-off on a single loan.
Classified assets totaled $6.2 million at
September 30, 2018, compared to $7.2 million at June 30, 2018 and
$7.1 million at September 30, 2017. The classified asset to total
capital ratio was 4.7% at September 30, 2018, compared to 5.6%
three months earlier and 6.0% a year earlier.
The allowance for loan losses totaled $11.5
million, representing 1.35% of total loans at September 30, 2018,
compared to $11.3 million and 1.37% of total loans at June 30,
2018. 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 $1.9 million at September
30, 2018, compared to $2.1 million at the end of the prior
quarter.
Capital
Riverview continues to maintain capital levels
well in excess of the regulatory requirements to be categorized as
“well capitalized” with a total risk-based capital ratio of 15.82%
and a Tier 1 leverage ratio of 10.72% at September 30, 2018. In
addition, at that date the Company’s tangible common equity to
average tangible assets ratio (non-GAAP) was 8.42%.
Non-GAAP Financial
Measures
In addition to results presented in accordance
with generally accepted accounting principles (“GAAP”), this press
release contains certain non-GAAP financial measures. We believe
that certain non-GAAP financial measures provide investors with
information useful in understanding the Company’s financial
performance; however, readers of this report are urged to review
these non-GAAP financial measures in conjunction with GAAP results
as reported.
Financial measures that exclude intangible
assets are non-GAAP measures. To provide investors with a broader
understanding of capital adequacy, Riverview provides non-GAAP
financial measures for tangible common equity, along with the GAAP
measure. Tangible shareholders’ equity is calculated as
shareholders’ equity less goodwill and other intangible assets. In
addition, tangible assets are total assets less goodwill and other
intangible assets. We calculate tangible book value per share by
dividing tangible shareholders’ equity by the number of common
shares outstanding. This non-GAAP financial measure has inherent
limitations, is not required to be uniformly applied and is not
audited. Further, the non-GAAP financial measure should not be
considered in isolation or as a substitute for book value per share
or total shareholders' equity determined in accordance with GAAP
and may not be comparable to similarly titled measures reported by
other companies. Reconciliations of the GAAP and non-GAAP financial
measures are presented below.
(Dollars in thousands) |
September 30,
2018 |
|
June 30, 2018 |
|
September 30,
2017 |
|
March 31,
1208 |
|
Shareholders' equity |
$ |
122,410 |
|
$ |
119,828 |
|
$ |
116,742 |
|
$ |
116,901 |
Goodwill |
|
|
27,076 |
|
|
27,076 |
|
|
27,076 |
|
|
27,076 |
Core
deposit intangible, net |
|
1,011 |
|
|
1,057 |
|
|
1,219 |
|
|
1,103 |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
shareholders' equity |
$ |
94,323 |
|
$ |
91,695 |
|
$ |
88,447 |
|
$ |
88,722 |
|
Total
assets |
$ |
1,148,447 |
|
$ |
1,140,268 |
|
$ |
1,147,680 |
|
$ |
1,151,535 |
Goodwill |
|
|
27,076 |
|
|
27,076 |
|
|
27,076 |
|
|
27,076 |
Core
deposit intangible, net |
|
1,011 |
|
|
1,057 |
|
|
1,219 |
|
|
1,103 |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
assets |
$ |
1,120,360 |
|
$ |
1,112,135 |
|
$ |
1,119,385 |
|
$ |
1,123,356 |
About Riverview
Riverview Bancorp, Inc. (www.riverviewbank.com)
is headquartered in Vancouver, Washington – just north of Portland,
Oregon on the I-5 corridor. With assets of $1.15 billion at
September 30, 2018, it is the parent company of the 95-year-old
Riverview Community Bank, as well as Riverview Trust Company. The
Bank offers true community banking services, focusing on providing
the highest quality service and financial products to commercial
and retail customers. There are 18 branches, including 14 in the
Portland-Vancouver area and three lending centers. For the past 5
years, Riverview has been named Best Bank by the readers of The
Vancouver Business Journal, The Columbian and The Gresham
Outlook.
“Safe Harbor” statement under the Private
Securities Litigation Reform Act of 1995: This press release
contains forward-looking statements that are subject to risks and
uncertainties, including, but not limited to: the Company’s ability
to raise common capital; the credit risks of lending activities,
including changes in the level and trend of loan delinquencies and
write-offs and changes in the Company’s allowance for loan losses
and provision for loan losses that may be impacted by deterioration
in the housing and commercial real estate markets; changes in
general economic conditions, either nationally or in the Company’s
market areas; changes in the levels of general interest rates, and
the relative differences between short and long term interest
rates, deposit interest rates, the Company’s net interest margin
and funding sources; fluctuations in the demand for loans, the
number of unsold homes, land and other properties and fluctuations
in real estate values in the Company’s market areas; secondary
market conditions for loans and the Company’s ability to sell loans
in the secondary market; results of examinations of us by the
Office of Comptroller of the Currency or other regulatory
authorities, including the possibility that any such regulatory
authority may, among other things, require us to increase the
Company’s reserve for loan losses, write-down assets, change
Riverview Community Bank’s regulatory capital position or affect
the Company’s ability to borrow funds or maintain or increase
deposits, which could adversely affect its liquidity and earnings;
legislative or regulatory changes that adversely affect the
Company’s business including changes in regulatory policies and
principles, or the interpretation of regulatory capital or other
rules; the Company’s ability to attract and retain deposits;
further increases in premiums for deposit insurance; the Company’s
ability to control operating costs and expenses; the use of
estimates in determining fair value of certain of the Company’s
assets, which estimates may prove to be incorrect and result in
significant declines in valuation; difficulties in reducing risks
associated with the loans on the Company’s balance sheet; staffing
fluctuations in response to product demand or the implementation of
corporate strategies that affect the Company’s workforce and
potential associated charges; computer systems on which the Company
depends could fail or experience a security breach; the Company’s
ability to retain key members of its senior management team; costs
and effects of litigation, including settlements and judgments; the
Company’s ability to successfully integrate any assets,
liabilities, customers, systems, and management personnel it may in
the future acquire into its operations and the Company’s ability to
realize related revenue synergies and cost savings within expected
time frames and any goodwill charges related thereto; increased
competitive pressures among financial services companies; changes
in consumer spending, borrowing and savings habits; the
availability of resources to address changes in laws, rules, or
regulations or to respond to regulatory actions; the Company’s
ability to pay dividends on its common stock; and interest or
principal payments on its junior subordinated debentures; adverse
changes in the securities markets; inability of key third-party
providers to perform their obligations to us; changes in accounting
policies and practices, as may be adopted by the financial
institution regulatory agencies or the Financial Accounting
Standards Board, including additional guidance and interpretation
on accounting issues and details of the implementation of new
accounting methods; other economic, competitive, governmental,
regulatory, and technological factors affecting the Company’s
operations, pricing, products and services and the other risks
described from time to time in our filings with the SEC.
Such forward-looking statements may include
projections. Any such projections were not prepared in accordance
with published guidelines of the American Institute of Certified
Public Accountants or the Securities Exchange Commission regarding
projections and forecasts nor have such projections been audited,
examined or otherwise reviewed by independent auditors of the
Company. In addition, such projections are based upon many
estimates and inherently subject to significant economic and
competitive uncertainties and contingencies, many of which are
beyond the control of management of the Company. Accordingly,
actual results may be materially higher or lower than those
projected. The inclusion of such projections herein should not be
regarded as a representation by the Company that the projections
will prove to be correct.
The Company cautions readers not to place undue
reliance on any forward-looking statements. Moreover, you should
treat these statements as speaking only as of the date they are
made and based only on information then actually known to the
Company. The Company does not undertake and specifically disclaims
any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements. These risks could
cause our actual results for fiscal 2019 and beyond to differ
materially from those expressed in any forward-looking statements
by, or on behalf of, us, and could negatively affect the Company’s
operating and stock price performance.
RIVERVIEW BANCORP, INC. AND
SUBSIDIARY |
Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
(In thousands, except share data)
(Unaudited) |
September 30, 2018 |
|
June 30, 2018 |
|
September 30, 2017 |
|
March 31, 2018 |
ASSETS |
|
|
Cash
(including interest-earning accounts of $12,537, $15,791, |
$ |
27,080 |
|
$ |
33,268 |
|
$ |
76,245 |
|
$ |
44,767 |
$59,315 and $30,052) |
|
Certificate of deposits held for investment |
|
3,984 |
|
|
4,971 |
|
|
9,797 |
|
|
5,967 |
Loans
held for sale |
|
- |
|
|
- |
|
|
347 |
|
|
210 |
Investment securities: |
|
Available
for sale, at estimated fair value |
|
190,792 |
|
|
200,100 |
|
|
200,584 |
|
|
213,221 |
Held to
maturity, at amortized cost |
|
38 |
|
|
40 |
|
|
46 |
|
|
42 |
Loans receivable (net of allowance for loan losses of
$11,513, |
|
$11,349,
$10,617, and $10,766) |
|
838,329 |
|
|
815,237 |
|
|
773,087 |
|
|
800,610 |
Real
estate owned |
|
- |
|
|
- |
|
|
298 |
|
|
298 |
Prepaid
expenses and other assets |
|
5,104 |
|
|
3,759 |
|
|
4,227 |
|
|
3,870 |
Accrued
interest receivable |
|
3,671 |
|
|
3,578 |
|
|
3,111 |
|
|
3,477 |
Federal
Home Loan Bank stock, at cost |
|
1,353 |
|
|
1,353 |
|
|
1,181 |
|
|
1,353 |
Premises
and equipment, net |
|
15,403 |
|
|
15,674 |
|
|
15,740 |
|
|
15,783 |
Deferred
income taxes, net |
|
5,352 |
|
|
5,039 |
|
|
6,167 |
|
|
4,813 |
Mortgage
servicing rights, net |
|
344 |
|
|
380 |
|
|
406 |
|
|
388 |
Goodwill |
|
27,076 |
|
|
27,076 |
|
|
27,076 |
|
|
27,076 |
Core
deposit intangible, net |
|
1,011 |
|
|
1,057 |
|
|
1,219 |
|
|
1,103 |
Bank
owned life insurance |
|
28,910 |
|
|
28,736 |
|
|
28,149 |
|
|
28,557 |
|
TOTAL ASSETS |
$ |
1,148,447 |
|
$ |
1,140,268 |
|
$ |
1,147,680 |
|
$ |
1,151,535 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
LIABILITIES: |
|
Deposits |
$ |
982,272 |
|
$ |
982,350 |
|
$ |
990,299 |
|
$ |
995,691 |
Accrued
expenses and other liabilities |
|
13,767 |
|
|
8,579 |
|
|
10,838 |
|
|
9,391 |
Advance
payments by borrowers for taxes and insurance |
|
1,050 |
|
|
580 |
|
|
920 |
|
|
637 |
Junior
subordinated debentures |
|
26,530 |
|
|
26,507 |
|
|
26,438 |
|
|
26,484 |
Capital
lease obligation |
|
2,418 |
|
|
2,424 |
|
|
2,443 |
|
|
2,431 |
Total
liabilities |
|
1,026,037 |
|
|
1,020,440 |
|
|
1,030,938 |
|
|
1,034,634 |
|
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, 2018 - 22,598,712 issued and outstanding; |
June 30,
2018 – 22,570,179 issued and outstanding; |
|
226 |
|
|
226 |
|
|
225 |
|
|
226 |
September 30, 2017 - 22,533,912 issued and outstanding; |
March 31, 2018 – 22,570,179 issued and outstanding; |
Additional paid-in capital |
|
65,044 |
|
|
64,882 |
|
|
64,612 |
|
|
64,871 |
Retained
earnings |
|
63,642 |
|
|
60,204 |
|
|
53,034 |
|
|
56,552 |
Unearned
shares issued to employee stock ownership plan |
|
- |
|
|
- |
|
|
(26) |
|
|
- |
Accumulated other comprehensive loss |
|
(6,502) |
|
|
(5,484) |
|
|
(1,103) |
|
|
(4,748) |
Total
shareholders’ equity |
|
122,410 |
|
|
119,828 |
|
|
116,742 |
|
|
116,901 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
1,148,447 |
|
$ |
1,140,268 |
|
$ |
1,147,680 |
|
$ |
1,151,535 |
RIVERVIEW BANCORP, INC. AND
SUBSIDIARY |
Consolidated Statements of
Income |
|
Three Months Ended |
|
Six Months Ended |
(In thousands, except share data)
(Unaudited) |
Sept. 30, 2018 |
June 30, 2018 |
Sept. 30, 2017 |
|
Sept. 30, 2018 |
Sept. 30, 2017 |
INTEREST
INCOME: |
Interest
and fees on loans receivable |
$ |
10,943 |
$ |
10,777 |
$ |
9,994 |
|
$ |
21,720 |
$ |
19,783 |
Interest
on investment securities - taxable |
|
1,116 |
|
1,198 |
|
1,079 |
|
|
2,314 |
|
2,212 |
Interest
on investment securities - nontaxable |
|
36 |
|
37 |
|
14 |
|
|
73 |
|
28 |
Other
interest and dividends |
|
118 |
|
93 |
|
228 |
|
|
211 |
|
315 |
Total
interest and dividend income |
|
12,213 |
|
12,105 |
|
11,315 |
|
|
24,318 |
|
22,338 |
|
INTEREST EXPENSE: |
|
Interest
on deposits |
|
259 |
|
260 |
|
313 |
|
|
519 |
|
635 |
Interest
on borrowings |
|
352 |
|
358 |
|
277 |
|
|
710 |
|
545 |
Total
interest expense |
|
611 |
|
618 |
|
590 |
|
|
1,229 |
|
1,180 |
Net interest
income |
|
11,602 |
|
11,487 |
|
10,725 |
|
|
23,089 |
|
21,158 |
Provision for
(recapture of) loan losses |
|
250 |
|
(200) |
|
- |
|
|
50 |
|
- |
|
Net interest income
after provision for, recapture of, loan losses |
|
11,352 |
|
11,687 |
|
10,725 |
|
|
23,039 |
|
21,158 |
|
NON-INTEREST
INCOME: |
|
Fees and
service charges |
|
1,690 |
|
1,755 |
|
1,490 |
|
|
3,445 |
|
2,897 |
Asset
management fees |
|
943 |
|
926 |
|
818 |
|
|
1,869 |
|
1,671 |
Net gain
on sale of loans held for sale |
|
44 |
|
152 |
|
157 |
|
|
196 |
|
382 |
Bank
owned life insurance |
|
174 |
|
179 |
|
204 |
|
|
353 |
|
411 |
Other,
net |
|
167 |
|
40 |
|
44 |
|
|
207 |
|
90 |
Total
non-interest income, net |
|
3,018 |
|
3,052 |
|
2,713 |
|
|
6,070 |
|
5,451 |
|
NON-INTEREST
EXPENSE: |
|
Salaries
and employee benefits |
|
5,283 |
|
5,578 |
|
5,251 |
|
|
10,861 |
|
10,673 |
Occupancy
and depreciation |
|
1,351 |
|
1,359 |
|
1,412 |
|
|
2,710 |
|
2,758 |
Data
processing |
|
622 |
|
631 |
|
580 |
|
|
1,253 |
|
1,196 |
Amortization of core deposit intangible |
|
46 |
|
46 |
|
58 |
|
|
92 |
|
116 |
Advertising and marketing |
|
266 |
|
192 |
|
256 |
|
|
458 |
|
490 |
FDIC
insurance premium |
|
85 |
|
76 |
|
136 |
|
|
161 |
|
281 |
State and
local taxes |
|
182 |
|
168 |
|
177 |
|
|
350 |
|
331 |
Telecommunications |
|
88 |
|
93 |
|
103 |
|
|
181 |
|
207 |
Professional fees |
|
387 |
|
284 |
|
261 |
|
|
671 |
|
676 |
Other |
|
605 |
|
592 |
|
525 |
|
|
1,197 |
|
1,205 |
Total
non-interest expense |
|
8,915 |
|
9,019 |
|
8,759 |
|
|
17,934 |
|
17,933 |
|
INCOME BEFORE INCOME
TAXES |
|
5,455 |
|
5,720 |
|
4,679 |
|
|
11,175 |
|
8,676 |
PROVISION FOR INCOME
TAXES |
|
1,224 |
|
1,278 |
|
1,620 |
|
|
2,502 |
|
2,963 |
NET INCOME |
$ |
4,231 |
$ |
4,442 |
$ |
3,059 |
|
$ |
8,673 |
$ |
5,713 |
|
Earnings per common
share: |
|
Basic |
$ |
0.19 |
$ |
0.20 |
$ |
0.14 |
|
$ |
0.38 |
$ |
0.25 |
Diluted |
$ |
0.19 |
$ |
0.20 |
$ |
0.14 |
|
$ |
0.38 |
$ |
0.25 |
Weighted average number
of common shares outstanding: |
|
Basic |
|
22,579,839 |
|
22,570,179 |
|
22,518,941 |
|
|
22,575,009 |
|
22,511,935 |
Diluted |
|
22,658,737 |
|
22,651,732 |
|
22,609,480 |
|
|
22,655,297 |
|
22,599,851 |
|
ASSET
QUALITY |
|
Sept. 30, 2018 |
|
June 30, 1208 |
|
Sept. 30, 2017 |
|
|
Non-performing loans |
$ |
2,283 |
|
$ |
2,344 |
|
$ |
2,745 |
|
Non-performing loans to total loans |
|
0.27% |
|
|
0.28% |
|
|
0.35% |
|
Real
estate/repossessed assets owned |
$ |
- |
|
$ |
- |
|
$ |
298 |
|
Non-performing assets |
$ |
2,283 |
|
$ |
2,344 |
|
$ |
3,043 |
|
Non-performing assets to total assets |
|
0.20% |
|
|
0.21% |
|
|
0.27% |
|
Net loan
charge-offs (recoveries) in the quarter |
$ |
86 |
|
$ |
(783) |
|
$ |
(20) |
|
Net
charge-offs (recoveries) in the quarter/average net loans |
|
0.04% |
|
|
(0.39)% |
|
|
(0.01)% |
|
|
Allowance
for loan losses |
$ |
11,513 |
|
$ |
11,349 |
|
$ |
10,617 |
|
Average
interest-earning assets to average |
|
interest-bearing liabilities |
|
148.43% |
|
|
144.42% |
|
|
141.06% |
|
Allowance
for loan losses to |
|
non-performing loans |
|
504.29% |
|
|
484.17% |
|
|
386.78% |
|
Allowance
for loan losses to total loans |
|
1.35% |
|
|
1.37% |
|
|
1.35% |
|
Shareholders’ equity to assets |
|
10.66% |
|
|
10.51% |
|
|
10.17% |
|
|
CAPITAL
RATIOS |
|
Total
capital (to risk weighted assets) |
|
15.82% |
|
|
15.59% |
|
|
15.07% |
|
Tier 1
capital (to risk weighted assets) |
|
14.54% |
|
|
14.33% |
|
|
13.82% |
|
Common
equity tier 1 (to risk weighted assets) |
|
14.54% |
|
|
14.33% |
|
|
13.82% |
|
Tier 1
capital (to average tangible assets) |
|
10.72% |
|
|
10.46% |
|
|
9.75% |
|
Tangible
common equity (to average tangible assets) (non-GAAP) |
|
8.42% |
|
|
8.24% |
|
|
7.90% |
|
|
DEPOSIT
MIX |
|
Sept. 30, 2018 |
|
June 30, 2018 |
|
Sept. 30, 2017 |
|
March 31, 2018 |
|
Interest checking |
|
$ |
182,947 |
|
$ |
184,286 |
|
$ |
175,127 |
|
$ |
192,989 |
Regular savings |
|
|
138,082 |
|
|
136,368 |
|
|
134,116 |
|
|
134,931 |
Money
market deposit accounts |
|
252,738 |
|
|
259,340 |
|
|
274,409 |
|
|
265,661 |
Non-interest checking |
|
300,659 |
|
|
288,890 |
|
|
270,678 |
|
|
278,966 |
Certificates of deposit |
|
107,846 |
|
|
113,466 |
|
|
135,969 |
|
|
123,144 |
Total deposits |
|
$ |
982,272 |
|
$ |
982,350 |
|
$ |
990,299 |
|
$ |
995,691 |
COMPOSITION OF COMMERCIAL AND
CONSTRUCTION LOANS |
|
|
Other |
|
Commercial |
|
Commercial |
|
Real Estate |
|
Real Estate |
|
& Construction |
|
Business |
|
Mortgage |
|
Construction |
|
Total |
September 30, 2018 |
|
(Dollars in thousands) |
Commercial
business |
$ |
155,487 |
|
$ |
- |
|
$ |
- |
|
$ |
155,487 |
Commercial
construction |
|
- |
|
|
- |
|
|
45,330 |
|
|
45,330 |
Office buildings |
|
|
- |
|
|
122,465 |
|
|
- |
|
|
122,465 |
Warehouse/industrial |
|
- |
|
|
87,630 |
|
|
- |
|
|
87,630 |
Retail/shopping centers/strip malls |
|
- |
|
|
66,458 |
|
|
- |
|
|
66,458 |
Assisted
living facilities |
|
- |
|
|
2,840 |
|
|
- |
|
|
2,840 |
Single
purpose facilities |
|
- |
|
|
182,984 |
|
|
- |
|
|
182,984 |
Land |
|
|
- |
|
|
15,939 |
|
|
- |
|
|
15,939 |
Multi-family |
|
|
- |
|
|
54,942 |
|
|
- |
|
|
54,942 |
One-to-four
family construction |
|
- |
|
|
- |
|
|
17,465 |
|
|
17,465 |
Total |
|
$ |
155,487 |
|
$ |
533,258 |
|
$ |
62,795 |
|
$ |
751,540 |
|
March 31, 2018 |
|
Commercial
business |
$ |
137,672 |
|
$ |
- |
|
$ |
- |
|
$ |
137,672 |
Commercial
construction |
|
- |
|
|
- |
|
|
23,158 |
|
|
23,158 |
Office buildings |
|
|
- |
|
|
124,000 |
|
|
- |
|
|
124,000 |
Warehouse/industrial |
|
- |
|
|
89,442 |
|
|
- |
|
|
89,442 |
Retail/shopping centers/strip malls |
|
- |
|
|
68,932 |
|
|
- |
|
|
68,932 |
Assisted
living facilities |
|
- |
|
|
2,934 |
|
|
- |
|
|
2,934 |
Single
purpose facilities |
|
- |
|
|
165,289 |
|
|
- |
|
|
165,289 |
Land |
|
|
- |
|
|
15,337 |
|
|
- |
|
|
15,337 |
Multi-family |
|
|
- |
|
|
63,080 |
|
|
- |
|
|
63,080 |
One-to-four
family construction |
|
- |
|
|
- |
|
|
16,426 |
|
|
16,426 |
Total |
|
$ |
137,672 |
|
$ |
529,014 |
|
$ |
39,584 |
|
$ |
706,270 |
|
LOAN
MIX |
|
Sept. 30, 2018 |
|
June 30, 2018 |
|
Sept. 30, 2017 |
|
March 31, 2018 |
Commercial
and construction |
|
Commercial business |
$ |
155,487 |
|
$ |
148,257 |
|
$ |
118,444 |
|
$ |
137,672 |
Other real estate mortgage |
|
533,258 |
|
|
524,117 |
|
|
500,382 |
|
|
529,014 |
Real estate construction |
|
62,795 |
|
|
53,156 |
|
|
53,878 |
|
|
39,584 |
Total commercial and construction |
|
751,540 |
|
|
725,530 |
|
|
672,704 |
|
|
706,270 |
Consumer |
|
Real estate one-to-four family |
|
86,950 |
|
|
88,212 |
|
|
90,764 |
|
|
90,109 |
Other
installment |
|
|
11,352 |
|
|
12,844 |
|
|
20,236 |
|
|
14,997 |
Total
consumer |
|
|
98,302 |
|
|
101,056 |
|
|
111,000 |
|
|
105,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
849,842 |
|
|
826,586 |
|
|
783,704 |
|
|
811,376 |
|
Less: |
|
Allowance for loan losses |
|
11,513 |
|
|
11,349 |
|
|
10,617 |
|
|
10,766 |
Loans receivable, net |
$ |
838,329 |
|
$ |
815,237 |
|
$ |
773,087 |
|
$ |
800,610 |
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
Southwest |
|
|
|
|
|
|
|
|
|
Oregon |
|
Washington |
|
Other |
|
Total |
|
September 30, 2018 |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
business |
|
$ |
- |
|
$ |
168 |
|
$ |
- |
|
$ |
168 |
|
Commercial
real estate |
|
|
942 |
|
|
193 |
|
|
- |
|
|
1,135 |
|
Land |
|
|
740 |
|
|
- |
|
|
- |
|
|
740 |
|
Consumer |
|
|
- |
|
|
173 |
|
|
67 |
|
|
240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
|
$ |
1,682 |
|
$ |
534 |
|
$ |
67 |
|
$ |
2,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Total |
|
September 30, 2018 |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
development |
|
$ |
199 |
|
$ |
1,950 |
|
$ |
13,790 |
|
$ |
15,939 |
|
Speculative
construction |
|
|
571 |
|
|
4 |
|
|
14,054 |
|
|
14,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total land
development and speculative construction |
|
$ |
770 |
|
$ |
1,954 |
|
$ |
27,844 |
|
$ |
30,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three months ended |
|
At or for the six months
ended |
|
SELECTED OPERATING
DATA |
Sept. 30, 2018 |
|
June 30, 2018 |
|
Sept. 30, 2017 |
|
Sept. 30, 2018 |
|
Sept. 30, 2017 |
|
|
|
|
|
|
|
|
|
Efficiency ratio
(4) |
|
60.99 |
% |
|
|
62.03 |
% |
|
|
65.18 |
% |
|
|
61.51 |
% |
|
|
67.39 |
% |
|
Coverage ratio (6) |
|
130.14 |
% |
|
|
127.36 |
% |
|
|
122.45 |
% |
|
|
128.74 |
% |
|
|
117.98 |
% |
|
Return on average
assets (1) |
|
1.46 |
% |
|
|
1.57 |
% |
|
|
1.06 |
% |
|
|
1.52 |
% |
|
|
1.01 |
% |
|
Return on average
equity (1) |
|
13.68 |
% |
|
|
14.98 |
% |
|
|
10.40 |
% |
|
|
14.32 |
% |
|
|
9.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
SPREAD |
|
|
|
|
|
|
|
|
|
|
Yield on loans |
|
5.17 |
% |
|
|
5.32 |
% |
|
|
5.06 |
% |
|
|
5.24 |
% |
|
|
5.03 |
% |
|
Yield on investment
securities |
|
2.27 |
% |
|
|
2.31 |
% |
|
|
2.14 |
% |
|
|
2.29 |
% |
|
|
2.18 |
% |
|
Total
yield on interest-earning assets |
|
4.56 |
% |
|
|
4.63 |
% |
|
|
4.25 |
% |
|
|
4.59 |
% |
|
|
4.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
interest-bearing deposits |
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.17 |
% |
|
|
0.15 |
% |
|
|
0.18 |
% |
|
Cost of FHLB advances
and other borrowings |
|
4.82 |
% |
|
|
4.37 |
% |
|
|
3.81 |
% |
|
|
4.58 |
% |
|
|
3.75 |
% |
|
Total
cost of interest-bearing liabilities |
|
0.34 |
% |
|
|
0.34 |
% |
|
|
0.31 |
% |
|
|
0.34 |
% |
|
|
0.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Spread (7) |
|
4.22 |
% |
|
|
4.29 |
% |
|
|
3.94 |
% |
|
|
4.25 |
% |
|
|
3.98 |
% |
|
Net interest
margin |
|
4.33 |
% |
|
|
4.40 |
% |
|
|
4.03 |
% |
|
|
4.36 |
% |
|
|
4.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
Basic earnings per
share (2) |
$ |
0.19 |
|
|
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
0.38 |
|
|
$ |
0.25 |
|
|
Diluted earnings per
share (3) |
|
0.19 |
|
|
|
0.12 |
|
|
|
0.07 |
|
|
|
0.38 |
|
|
|
0.25 |
|
|
Book value per share
(5) |
|
5.42 |
|
|
|
5.31 |
|
|
|
5.18 |
|
|
|
5.42 |
|
|
|
5.18 |
|
|
Tangible book value per
share (5) (non-GAAP) |
|
4.17 |
|
|
|
4.06 |
|
|
|
3.93 |
|
|
|
4.17 |
|
|
|
3.93 |
|
|
Market price per
share: |
|
|
|
|
|
|
|
|
|
|
High for
the period |
$ |
9.91 |
|
|
$ |
9.52 |
|
|
$ |
8.48 |
|
|
$ |
9.91 |
|
|
$ |
8.48 |
|
|
Low for
the period |
|
8.47 |
|
|
|
8.39 |
|
|
|
6.64 |
|
|
|
8.39 |
|
|
|
6.51 |
|
|
Close for
period end |
|
8.84 |
|
|
|
8.44 |
|
|
|
8.40 |
|
|
|
8.84 |
|
|
|
8.40 |
|
|
Cash dividends declared
per share |
|
0.3500 |
|
|
|
0.0350 |
|
|
|
0.0225 |
|
|
|
0.0700 |
|
|
|
0.0450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic
(2) |
|
22,579,839 |
|
|
|
22,570,179 |
|
|
|
22,518,941 |
|
|
|
22,575,009 |
|
|
|
22,511,935 |
|
|
Diluted
(3) |
|
22,658,737 |
|
|
|
22,651,732 |
|
|
|
22,609,480 |
|
|
|
22,655,297 |
|
|
|
22,599,851 |
|
|
|
|
|
|
|
|
|
|
|
- Amounts for the quarterly periods are annualized.
- Amounts exclude ESOP shares not committed to be released.
- Amounts exclude ESOP shares not committed to be released and
include common stock equivalents.
- Non-interest expense divided by net interest income and
non-interest income.
- Amounts calculated based on shareholders’ equity and include
ESOP shares not committed to be released.
- Net interest income divided by non-interest expense.
- Yield on interest-earning assets less cost of funds on
interest-bearing liabilities.
Contact:Kevin Lycklama, President &
CEORiverview Bancorp, Inc. 360-693-6650
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