RVSB Riverview Bancorp Inc

Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today announced earnings for the fourth quarter and full year ended March 31, 2019. For the fourth quarter, the Company reported net income of $4.2 million, or $0.19 per diluted share.  This is compared to net income of $4.4 million, or $0.19 per diluted share, in the preceding quarter and $3.0 million, or $0.13 per diluted share, in the fourth fiscal quarter a year ago. For the full fiscal year, Riverview reported net income of $17.3 million, or $0.76 per diluted share, a 69% increase over the prior year.

“The fourth quarter was a healthy finish to a successful year for Riverview”, said Kevin Lycklama, president and chief executive officer. “Our team finished the year strong achieving record earnings driven by high-quality loan growth, solid revenue generation, expense management and a focus on continuous improvement. As we head into the next fiscal year, we have positive momentum, a strong team of seasoned bankers and are well-positioned to generate solid operating results.”   

Fourth Quarter Highlights (at or for the period ended March 31, 2019)

• Net income of $4.2 million, or $0.19 per diluted share.
• Net interest margin (NIM) was 4.39% for the quarter.
• Return on average assets of 1.49% for the fourth quarter.
• Return on average equity of 12.98% for the fourth quarter.
• Total loans were $876.1 million at March 31, 2019, an 8.0% increase compared to $811.4 million a year ago.
• Cost of deposits remained low at 0.10% for the quarter, the same as the preceding quarter.
• Non-performing assets improved to 0.13% of total assets.
• Total risk-based capital ratio was 16.88% and Tier 1 leverage ratio was 11.56%.
• Paid a quarterly cash dividend of $0.04 per share, generating a current dividend yield of 2.17% based on the April 29, 2019 share price.

Income Statement

In the fourth fiscal quarter of 2019, the return on average assets increased to 1.49% compared to 1.08% in the fourth fiscal quarter of 2018. The return on average equity and average tangible equity (non-GAAP) increased to 12.98% and 16.50%, respectively, compared to 10.39% and 13.67% for the fourth fiscal quarter a year ago.

Total revenue increased $80,000 during the quarter to $14.5 million and increased $1.2 million compared to the same quarter a year ago. The increase in total revenue was driven by an increase in both interest income and noninterest income. 

Net interest income for the quarter was $11.5 million compared to $11.7 million in the preceding quarter and $10.7 million in the fourth fiscal quarter a year ago. The decline in net interest income compared to the preceding quarter was attributable to higher funding costs as well as two fewer days in the quarter. In fiscal 2019, net interest income increased $3.7 million, or 8.7%, to $46.3 million compared to $42.6 million in fiscal 2018.

“Our net interest margin increased from a year ago and remained stable compared to the immediate prior quarter, reflecting the overall increase in interest-earning assets in addition to higher yields on these assets,” said David Lam, executive vice president and chief financial officer. “However, increased competition for loans and deposits and a flattening yield curve remains a challenge.”

Riverview’s fourth fiscal quarter net interest margin was 4.39%, which was unchanged from the third fiscal quarter, and a 25-basis point increase when compared to 4.14% in the fourth fiscal quarter a year ago. The accretion on purchased loans totaled $198,000 during the current quarter compared to $172,000 during the preceding quarter resulting in a seven-basis point increase in the NIM for both the current period and the preceding linked quarter. In fiscal year 2019, Riverview’s NIM increased 30 basis points to 4.38% compared to 4.08% in fiscal 2018.

The weighted average rate on loans originated during the quarter ended March 31, 2019 was 5.81% compared to 6.04% for the quarter ended December 31, 2018 and 5.17% for the quarter ended March 31, 2018.

Non-interest income increased to $3.0 million in the fourth fiscal quarter compared to $2.8 million in the preceding quarter and $2.7 million in the same quarter a year ago. For fiscal year 2019, non-interest income increased 7.8% to $11.9 million compared to $11.0 million for fiscal 2018. The increase in non-interest income was primarily driven by an increase in fees and service charges and asset management fees. Loan prepayment fees increased $285,000 during the fourth fiscal quarter compared to the preceding quarter and increased $397,000 year over year. Other gains for the year included growth in debit card interchange revenue and an expansion in our merchant bankcard program. These increases were offset by a decrease in the net gain on sales from loans held for sale due to a decrease in mortgage banking activity.

Asset management fees increased to $987,000 in the fourth fiscal quarter of 2019 compared to $935,000 in the preceding quarter and $866,000 in the fourth fiscal quarter a year ago. For fiscal year 2019, asset management fees increased $343,000 to $3.8 million. Riverview Trust Company’s assets under management grew to $646.0 million at March 31, 2019 compared to $570.4 million three months earlier and $484.3 million one year earlier.

Non-interest expense was $9.0 million during the fourth fiscal quarter of 2019 compared to $8.8 million in the preceding quarter. The increase was primarily related to a $355,000 gain on sale of building related to the Longview branch closing in September 2018, which was recorded in other non-interest expense during the preceding quarter. The efficiency ratio was 61.63% for the fourth fiscal quarter compared to 60.87% in the preceding quarter and 68.52% in the fourth fiscal quarter a year ago. For all of fiscal 2019, non-interest expense was $35.7 million compared to $35.6 million in fiscal 2018. While the Company continues to focus on controlling its expenses; however, we are moving forward with enhancements to our infrastructure for information technology, cybersecurity and our digital delivery channels.

Riverview’s effective tax rate for fiscal year 2019 was 23.0% compared to 43.1% for fiscal year 2018. The decrease was a result of the passage of the Tax Cuts and Jobs Act in December 2017 and the related deferred tax asset valuation adjustment during fiscal year 2018.

Balance Sheet Review

Riverview’s total loans increased $7.5 million during the quarter, a 3.5% annualized increase, to $876.1 million and increased $64.7 million, or 8.0%, when compared to $811.4 million a year ago. The growth during the quarter was mostly concentrated in commercial loans and commercial construction loans with an offsetting decrease in multi-family and single purpose commercial real estate loans. The decrease in single purpose loans was primarily concentrated in hotel loans and auto repair/gas station loans. While loan demand has remained solid, loan balances have continued to be impacted by pay downs on existing loans.

The loan pipeline totaled $38.2 million at March 31, 2019 compared to $33.6 million at the end of the prior quarter. Undisbursed construction loans totaled $63.0 million at March 31, 2019 compared to $79.0 million three months earlier. The majority of the undisbursed construction loans are expected to fund over the next several quarters.

Total deposits were $925.1 million at March 31, 2019 compared to $943.6 million three months earlier and $995.7 million a year ago. Money market and certificates of deposit accounts continue to bear the greatest pressure, due to an increase in competition and pricing pressures in our market area.

Shareholders’ equity improved to $133.1 million at March 31, 2019 compared to $128.1 million three months earlier and $116.9 million a year earlier. Tangible book value per share (non-GAAP) increased to $4.65 at March 31, 2019 compared to $4.43 at December 31, 2018 and $3.93 at March 31, 2018. A quarterly cash dividend of $0.04 per share was paid on April 23, 2019.

Credit Quality

Asset quality continues to improve and remained strong throughout the quarter. As a result of this improvement in asset quality, along with the steady low level of net charge-offs, Riverview recorded no provision for loan losses during the fourth fiscal quarter of 2019, the preceding linked quarter or the fourth fiscal quarter of 2018. For fiscal year 2019, Riverview recorded a $50,000 provision for loan losses.

Non-performing loans improved to $1.5 million, or 0.17% of total loans, at March 31, 2019 compared to $1.6 million, or 0.19% of total loans, three months earlier and $2.4 million, or 0.30% of total loans, at March 31, 2018. Riverview had no real estate owned balances at March 31, 2019 and December 31, 2018 compared to $298,000 at March 31, 2018.

Net loan charge offs were $45,000 during the fourth fiscal quarter of 2019 compared to net loan charge offs of $11,000 during the third fiscal quarter of 2019 and $101,000 during the fourth fiscal quarter a year ago.  For fiscal 2019, Riverview recorded loan recoveries of $641,000 which was primarily driven by $783,000 in net recoveries during the first quarter of fiscal 2019 from the collection of a prior charge off on a single loan.

Classified assets totaled $6.3 million at March 31, 2019 compared to $6.0 million at December 31, 2018 and $7.7 million at March 31, 2018. The classified asset to total capital ratio was 4.5% at March 31, 2019 compared to 4.4% three months earlier and 6.2% a year earlier.

The allowance for loan losses totaled $11.5 million, which was unchanged compared to the preceding quarter end. The allowance for loan losses represented 1.31% of total loans at March 31, 2019 compared to 1.32% of total loans at December 31, 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 $1.5 million at March 31, 2019 compared to $1.7 million at the end of the prior quarter and $2.2 million at March 31, 2018.

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 16.88% and a Tier 1 leverage ratio of 11.56% at March 31, 2019. The Company’s tangible common equity to average tangible assets ratio (non-GAAP) was 9.31% at March 31, 2019.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. We believe that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Riverview provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible shareholders’ equity is calculated as shareholders’ equity less goodwill and other intangible assets. In addition, tangible assets are total assets less goodwill and other intangible assets. We calculate tangible book value per share by dividing tangible shareholders’ equity by the number of common shares outstanding. This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied and is not audited. Further, the non-GAAP financial measure should not be considered in isolation or as a substitute for book value per share or total shareholders' equity determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

(Dollars in thousands)		March 31, 2019			December 31, 2018			March 31, 2018
Shareholders' equity		$	133,122		$	128,094		$	116,901
Goodwill			27,076			27,076			27,076
Core deposit intangible, net			920			966			1,103
Tangible shareholders' equity		$	105,126		$	100,052		$	88,722
Total assets		$	1,156,921		$	1,151,225		$	1,151,535
Goodwill			27,076			27,076			27,076
Core deposit intangible, net			920			966			1,103
Tangible assets		$	1,128,925		$	1,123,183		$	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 $1.16 billion at March 31, 2019, 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 clients. 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 2020 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating and stock price performance.

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

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(In thousands, except share data)  (Unaudited)	March 31, 2019				December 31, 2018				March 31, 2018
ASSETS
Cash (including interest-earning accounts of $5,844, $4,641	$	22,950			$	23,394			$	44,767
and $30,052)
Certificate of deposits held for investment		747				747				5,967
Loans held for sale		909				-				210
Investment securities:
Available for sale, at estimated fair value		178,226				182,280				213,221
Held to maturity, at amortized cost		35				36				42
Loans receivable (net of allowance for loan losses of $11,457, $11,502
and $10,766)		864,659				857,134				800,610
Real estate owned		-				-				298
Prepaid expenses and other assets		4,596				4,021				3,870
Accrued interest receivable		3,919				3,789				3,477
Federal Home Loan Bank stock, at cost		3,644				2,735				1,353
Premises and equipment, net		15,458				14,940				15,783
Deferred income taxes, net		4,195				4,680				4,813
Mortgage servicing rights, net		296				325				388
Goodwill		27,076				27,076				27,076
Core deposit intangible, net		920				966				1,103
Bank owned life insurance		29,291				29,102				28,557
TOTAL ASSETS	$	1,156,921			$	1,151,225			$	1,151,535
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits	$	925,068			$	943,578			$	995,691
Accrued expenses and other liabilities		12,536				15,855				9,391
Advance payments by borrowers for taxes and insurance		631				192				637
Federal Home Loan Bank advances		56,586				34,543				-
Junior subordinated debentures		26,575				26,553				26,484
Capital lease obligations		2,403				2,410				2,431
Total liabilities		1,023,799				1,023,131				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,
March 31, 2019 – 22,607,712 issued and outstanding;
December 31, 2018 - 22,598,712 issued and outstanding;		226				226				226
March 31, 2018 – 22,570,179 issued and outstanding;
Additional paid-in capital		65,094				65,056				64,871
Retained earnings		70,428				67,126				56,552
Accumulated other comprehensive loss		(2,626	)			(4,314	)			(4,748	)
Total shareholders’ equity		133,122				128,094				116,901
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,156,921			$	1,151,225			$	1,151,535

 

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
	Three Months Ended							Twelve Months Ended
(In thousands, except share data)  (Unaudited)	March 31, 2019		Dec. 31, 2018		March 31, 2018			March 31, 2019		March 31, 2018
INTEREST INCOME:
Interest and fees on loans receivable	$	11,338	$	11,129	$	9,898		$	44,187	$	39,659
Interest on investment securities - taxable		1,032		1,110		1,235			4,456		4,648
Interest on investment securities - nontaxable		36		37		36			146		95
Other interest and dividends		58		60		75			329		558
Total interest and dividend income		12,464		12,336		11,244			49,118		44,960
INTEREST EXPENSE:
Interest on deposits		237		240		275			996		1,208
Interest on borrowings		693		416		312			1,819		1,141
Total interest expense		930		656		587			2,815		2,349
Net interest income		11,534		11,680		10,657			46,303		42,611
Provision for loan losses		-		-		-			50		-
Net interest income after provision for loan losses		11,534		11,680		10,657			46,253		42,611
NON-INTEREST INCOME:
Fees and service charges		1,743		1,511		1,431			6,699		5,779
Asset management fees		987		935		866			3,791		3,448
Net gain on sale of loans held for sale		39		82		119			317		641
Bank owned life insurance		189		192		201			734		819
Other, net		50		62		46			317		317
Total non-interest income, net		3,008		2,782		2,663			11,858		11,004
NON-INTEREST EXPENSE:
Salaries and employee benefits		5,665		5,794		5,687			22,320		21,743
Occupancy and depreciation		1,318		1,306		1,349			5,334		5,454
Data processing		593		621		583			2,467		2,313
Amortization of core deposit intangible		46		45		58			183		232
Advertising and marketing		160		151		120			769		747
FDIC insurance premium		80		85		87			326		476
State and local taxes		176		125		178			651		605
Telecommunications		87		85		108			353		417
Professional fees		306		449		255			1,426		1,181
Other		531		142		702			1,870		2,450
Total non-interest expense		8,962		8,803		9,127			35,699		35,618
INCOME BEFORE INCOME TAXES		5,580		5,659		4,193			22,412		17,997
PROVISION FOR INCOME TAXES		1,373		1,271		1,184			5,146		7,755
NET INCOME	$	4,207	$	4,388	$	3,009		$	17,266	$	10,242
Earnings per common share:
Basic	$	0.19	$	0.19	$	0.13		$	0.76	$	0.45
Diluted	$	0.19	$	0.19	$	0.13		$	0.76	$	0.45
Weighted average number of common shares outstanding:
Basic		22,605,012		22,598,712		22,565,483			22,588,395		22,531,480
Diluted		22,663,997		22,663,919		22,651,026			22,659,594		22,623,455

(Dollars in thousands)		At or for the three months ended												At or for the twelve months ended
		March 31, 2019				Dec. 31, 2018				March 31, 2018				March 31, 2019			March 31, 2018
AVERAGE BALANCES
Average interest–earning assets		$	1,066,133			$	1,057,199			$	1,043,755			$	1,059,063		$	1,044,907
Average interest-bearing liabilities			723,805				707,618				735,592				718,595			743,630
Net average earning assets			342,328				349,581				308,163				340,468			301,277
Average loans			869,950				854,368				802,275				844,142			789,204
Average deposits			929,219				967,246				969,916				963,934			978,090
Average equity			131,400				125,252				117,495				124,542			116,669
Average tangible equity (non-GAAP)			103,378				97,182				89,282				96,449			88,371
ASSET QUALITY		March 31, 2019				Dec. 31, 2018				March 31, 2018
Non-performing loans		$	1,519			$	1,612			$	2,418
Non-performing loans to total loans			0.17	%			0.19	%			0.30	%
Real estate/repossessed assets owned		$	-			$	-			$	298
Non-performing assets		$	1,519			$	1,612			$	2,716
Non-performing assets to total assets			0.13	%			0.14	%			0.24	%
Net loan charge-offs in the quarter		$	45			$	11			$	101
Net charge-offs in the quarter/average net loans			0.02	%			0.01	%			0.05	%
Allowance for loan losses		$	11,457			$	11,502			$	10,766
Average interest-earning assets to average
interest-bearing liabilities			147.30	%			149.40	%			141.89	%
Allowance for loan losses to
non-performing loans			754.25	%			713.52	%			445.24	%
Allowance for loan losses to total loans			1.31	%			1.32	%			1.33	%
Shareholders’ equity to assets			11.51	%			11.13	%			10.15	%
CAPITAL RATIOS
Total capital (to risk weighted assets)			16.88	%			16.35	%			15.41	%
Tier 1 capital (to risk weighted assets)			15.63	%			15.10	%			14.16	%
Common equity tier 1 (to risk weighted assets)			15.63	%			15.10	%			14.16	%
Tier 1 capital (to average tangible assets)			11.56	%			11.22	%			10.26	%
Tangible common equity (to average tangible assets) (non-GAAP)			9.31	%			8.91	%			7.90	%
DEPOSIT MIX		March 31, 2019				Dec. 31, 2018				March 31, 2018
Interest checking		$	183,388			$	183,426			$	192,989
Regular savings			137,503				137,323				134,931
Money market deposit accounts			233,317				242,081				265,661
Non-interest checking			284,854				284,939				278,966
Certificates of deposit			86,006				95,809				123,144
Total deposits		$	925,068			$	943,578			$	995,691

 

COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS
					Other						Commercial
		Commercial			Real Estate			Real Estate			& Construction
		Business			Mortgage			Construction			Total
March 31, 2019		(Dollars in thousands)
Commercial business		$	162,796		$	-		$	-		$	162,796
Commercial construction			-			-			70,533			70,533
Office buildings			-			118,722			-			118,722
Warehouse/industrial			-			91,787			-			91,787
Retail/shopping centers/strip malls			-			64,934			-			64,934
Assisted living facilities			-			2,740			-			2,740
Single purpose facilities			-			183,249			-			183,249
Land			-			17,027			-			17,027
Multi-family			-			51,570			-			51,570
One-to-four family construction			-			-			20,349			20,349
Total		$	162,796		$	530,029		$	90,882		$	783,707
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		March 31, 2019			Dec. 31, 2018			March 31, 2018
		(Dollars in thousands)
Commercial and construction
Commercial business		$	162,796		$	154,360		$	137,672
Other real estate mortgage			530,029			541,797			529,014
Real estate construction			90,882			76,518			39,584
Total commercial and construction			783,707			772,675			706,270
Consumer
Real estate one-to-four family			84,053			86,240			90,109
Other installment			8,356			9,721			14,997
Total consumer			92,409			95,961			105,106
Total loans			876,116			868,636			811,376
Less:
Allowance for loan losses			11,457			11,502			10,766
Loans receivable, net		$	864,659		$	857,134		$	800,610

 

DETAIL OF NON-PERFORMING ASSETS
				Northwest			Other			Southwest
				Oregon			Oregon			Washington			Other			Total
March 31, 2019				(dollars in thousands)
Commercial business				$	65		$	-		$	160		$	-		$	225
Commercial real estate					-			896			185			-			1,081
Consumer					-			-			169			44			213
	Total non-performing loans			$	65		$	896		$	514		$	44		$	1,519
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS
				Northwest			Other			Southwest
				Oregon			Oregon			Washington			Total
March 31, 2019				(dollars in thousands)
Land development				$	2,184		$	1,908		$	12,935		$	17,027
Speculative construction					1,680			104			15,284			17,068
	Total land development and speculative construction			$	3,864		$	2,012		$	28,219		$	34,095

	At or for the three months ended										At or for the tweleve months ended
SELECTED OPERATING DATA	March 31, 2019			Dec. 31, 2018			March 31, 2018				March 31, 2019			March 31, 2018
Efficiency ratio (4)		61.63	%		60.87	%		68.52	%			61.38	%		66.43	%
Coverage ratio (6)		128.70	%		132.68	%		116.76	%			129.70	%		119.63	%
Return on average assets (1)		1.49	%		1.53	%		1.08	%			1.51	%		0.90	%
Return on average equity (1)		12.98	%		13.90	%		10.39	%			13.86	%		8.78	%
Return on average tangible equity (1) (non-GAAP)		16.50	%		17.91	%		13.67	%			17.90	%		11.59	%
NET INTEREST SPREAD
Yield on loans		5.29	%		5.17	%		5.00	%			5.23	%		5.03	%
Yield on investment securities		2.37	%		2.38	%		2.32	%			2.33	%		2.23	%
Total yield on interest-earning assets		4.75	%		4.63	%		4.37	%			4.64	%		4.31	%
Cost of interest-bearing deposits		0.15	%		0.14	%		0.16	%			0.15	%		0.17	%
Cost of FHLB advances and other borrowings		3.60	%		4.35	%		3.99	%			4.10	%		3.85	%
Total cost of interest-bearing liabilities		0.52	%		0.37	%		0.32	%			0.39	%		0.32	%
Spread (7)		4.23	%		4.26	%		4.05	%			4.25	%		3.99	%
Net interest margin		4.39	%		4.39	%		4.14	%			4.38	%		4.08	%
PER SHARE DATA
Basic earnings per share (2)	$	0.19		$	0.19		$	0.13			$	0.76		$	0.45
Diluted earnings per share (3)		0.19			0.19			0.13				0.76			0.45
Book value per share (5)		5.89			5.67			5.18				5.89			5.18
Tangible book value per share (5) (non-GAAP)		4.65			4.43			3.93				4.65			3.93
Market price per share:
High for the period	$	8.04		$	8.75		$	9.68			$	9.91		$	9.68
Low for the period		7.14			7.03			8.45				7.03			6.51
Close for period end		7.31			7.28			9.34				7.31			9.34
Cash dividends declared per share		0.0400			0.0400			0.0300				0.1500			0.10500
Average number of shares outstanding:
Basic (2)		22,605,012			22,598,712			22,565,483				22,588,395			22,531,480
Diluted (3)		22,663,997			22,663,919			22,651,026				22,659,594			22,623,455

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.