Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today reported earnings of $4.1 million, or $0.18 per
diluted share for the third fiscal quarter ended December 31, 2019,
compared to $4.5 million, or $0.20 per diluted share, in the
preceding quarter, and $4.4 million, or $0.19 per diluted share, in
the third fiscal quarter a year ago. For the first nine months of
fiscal 2020, earnings were $12.9 million, or $0.57 per diluted
share, compared to $13.1 million, or $0.58 per diluted share, in
the first nine months of fiscal 2019.
“We continue to build our momentum, delivering
strong financial results for the quarter,” said Kevin Lycklama,
president and chief executive officer. “Our reputation for
excellent customer service, established by our team of dedicated
bankers, continues to drive growth and our ability to attract new
clients. We recently announced plans for three new locations in
Clark County, Washington, which will be a terrific complement to
our existing branch network. In addition to the fall opening of our
new location in Ridgefield, we have two new branches opening
this summer in downtown Camas and in the Cascade Park neighborhood
of Vancouver.”
Third Quarter Highlights (at or for the
period ended December 31, 2019)
- Net income was $4.1 million, or
$0.18 per diluted share.
- Net interest margin (NIM) remained
healthy at 4.23% for the quarter.
- Return on average assets was 1.40%
and return on average equity was 11.24% for the third quarter.
- Total deposits increased $8.2
million during the quarter to $990.5 million.
- Total loans increased $5.2 million
during the quarter to $886.5 million.
- Asset quality remains strong, with
non-performing assets at 0.13% of total assets.
- Total risk-based capital ratio was
17.66% and Tier 1 leverage ratio was 12.05%.
- Increased its quarterly cash
dividend to $0.05 per share, generating a current dividend yield of
2.66% based on the share price at close of market on January 14,
2020.
Income
Statement
“We continue to strengthen our franchise, while
remaining focused on containing operating expenses and maintaining
high credit quality standards,” said Lycklama. Riverview’s return
on average assets remained strong at 1.40% in the third quarter of
fiscal year 2020 compared to 1.53% in the third quarter of fiscal
2019. Return on average equity and average tangible equity
(non-GAAP) remained healthy at 11.24% and 13.89%, respectively,
compared to 13.90% and 17.91% for the third fiscal quarter a year
ago.
Total net revenues were $14.7 million during the
quarter compared to $14.9 million in the prior quarter and $14.5
million in the year ago quarter. Year-to-date, total net revenues
increased to $44.1 million from $43.6 million in the same period a
year ago.
Net interest income for the quarter was $11.5
million compared to $11.7 million in both the preceding quarter and
the third fiscal quarter a year ago. In the first nine months of
fiscal 2020, net interest income was $34.7 million compared to
$35.2 million in the first nine months of fiscal 2019. The decrease
in net interest income for the nine months ended December 31, 2019
was primarily attributable to an increase in funding costs compared
to the same prior year period in addition to $585,000 of
non-accrual interest from a prior charged off loan that was
collected during the nine months ended December 31, 2018.
Riverview’s third fiscal quarter NIM was 4.23%
compared to 4.36% in the prior quarter and 4.41% in the third
fiscal quarter a year ago. The accretion on purchased loans totaled
$219,000 during the current quarter compared to $78,000 during the
preceding quarter and $172,000 in the same period a year ago,
resulting in an eight basis point increase in the NIM for the
current period compared to a two basis point increase for the
preceding quarter and a seven basis point increase for the same
period a year ago. Net fees on loan prepayments were $211,000 for
the third fiscal quarter of 2020, which added eight basis points to
the NIM compared to $112,000 adding four basis point to the NIM in
the preceding quarter, and $15,000 adding one basis point to the
NIM in the third fiscal quarter a year ago. In the first nine
months of fiscal 2020, Riverview’s NIM was 4.31% compared to 4.42%
in the same period a year earlier. Net fees on loan prepayments
were $355,000 for the nine-month period ended December 31, 2019,
which added four basis points to the NIM compared to $297,000
adding three basis points to the NIM in the same nine-month period
a year ago.
“Net interest margin remains healthy despite
funding costs increasing by ten basis points during the quarter as
a result of increased rates on certain deposit products to remain
competitive in our market,” said David Lam, executive vice
president and chief financial officer. “We anticipate that the
three recent decreases in the fed funds rate along with the
heightened competition in our market will continue to put pressure
on our loan and deposit pricing, as well as the rest of the banking
industry.”
Non-interest income was $3.2 million in the both
the third and second fiscal quarters compared to $2.7 million in
the third fiscal quarter a year ago. In the first nine months of
fiscal 2020, non-interest income increased 12.2% to $9.5 million
compared to $8.4 million in the same period a year ago. The
improvement in non-interest income was primarily driven by service
charges and asset management fees.
Asset management fees increased 21.5% compared
to the same quarter a year ago. Asset management fees were $1.1
million during the third fiscal quarter compared to $935,000 in the
third fiscal quarter a year ago. In the first nine months of fiscal
2020, asset management fees increased 20.1% to $3.4 million
compared to $2.8 million in the first nine months of fiscal 2019.
Riverview Trust Company’s assets under management increased
substantially to $1.2 billion at December 31, 2019 compared to
$690.5 million three months earlier, due primarily to a single
large client added during the quarter.
In the third quarter of fiscal 2020,
non-interest expense increased to $9.2 million compared to $9.0
million in the preceding quarter. Year-to-date, non-interest
expense was $27.4 million compared to $26.7 million in the first
nine months of fiscal 2019. The increase is attributable to
strategic growth initiatives that included investments in our
digital product offerings, as well as the addition of several key
hires during the current fiscal year. Additionally, the preceding
quarter included an $81,000 gain on the disposal of an asset that
was recorded in other non-interest expense and decreased overall
expense in the second quarter of fiscal 2020. The efficiency ratio
was 63.10% for the third fiscal quarter compared to 60.47% in the
preceding quarter and 60.87% in the third fiscal quarter a year
ago.
For the third fiscal quarter of 2020, income tax
expense totaled $1.3 million, for an effective tax rate of 23.7%
compared to 23.0% in the second fiscal quarter of 2020 and 22.5% in
the third fiscal quarter of 2019.
Balance Sheet Review
Total deposits increased $8.2 million during the
quarter to $990.5 million compared to $982.3 million three months
earlier, and increased $46.9 million compared to $943.6 million a
year earlier. Deposit costs increased to 0.38% during the third
quarter compared to 0.28% in the preceding quarter, reflecting
Riverview’s efforts to remain competitive in its Northwest markets
by increasing selective deposit rates.
“Deposit growth was strong compared to a year
ago, which helped keep our FHLB borrowings at zero throughout the
quarter,” said Lam. “As a result, our loan to deposit ratio is at
89.5% at December 31, 2019 compared to 92.1% a year ago.” A year
ago outstanding FHLB advances were $34.5 million.
Riverview’s total loans increased $5.2 million
during the quarter to $886.5 million compared to $881.3 million
three months earlier and increased $17.9 million compared to $868.6
million a year ago. Total loans continue to be impacted by an
elevated level of paydowns on existing loans, however, the loan
pipeline remained healthy at $64.5 million at December 31, 2019
compared to $43.8 million at the end of the prior quarter.
Undisbursed construction loans totaled $36.0 million at December
31, 2019 compared to $53.3 million three months earlier, with the
majority of the undisbursed construction loans expected to fund
over the next several quarters.
Shareholders’ equity increased to $145.8 million
at December 31, 2019 compared to $143.1 million three months
earlier and $128.1 million a year earlier. Tangible book value per
share (non-GAAP) increased to $5.18 at December 31, 2019 compared
to $5.06 at September 30, 2019 and $4.43 at December 31, 2018.
Riverview paid a quarterly cash dividend of $0.05 per share on
January 21, 2020 to shareholders of record on January 9, 2020.
Credit Quality
“Our asset quality remains excellent, with
non-performing loans, non-performing assets and classified assets
continuing to decrease compared to a year ago,” said Lycklama.
“Additionally, we continue to have no real estate owned and minimal
charge-offs.” As a result of the continued improvement in asset
quality, Riverview recorded no provision for loan losses during the
past five quarters. Non-performing loans totaled $1.5 million, or
0.17% of total loans, at December 31, 2019, which was unchanged
compared to September 30, 2019. Non-performing loans totaled $1.6
million, or 0.19% of total loans at December 31, 2018.
Net loan charge offs were $3,000 during the
third fiscal quarter of 2020 compared to $6,000 in the preceding
quarter and $11,000 in the third fiscal quarter a year ago.
Classified assets decreased to $3.1 million at
December 31, 2019 compared to $4.3 million at September 30, 2019
and $6.0 million at December 31, 2018. The classified asset to
total capital ratio was 2.1% at December 31, 2019 compared to 3.0%
three months earlier and 4.4% a year earlier.
At December 31, 2019, the allowance for loan
losses totaled $11.4 million, which was unchanged compared to three
months earlier. The allowance for loan losses represented 1.29% of
total loans at December 31, 2019 compared to 1.30% three months
earlier. 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 $1.1 million at December
31, 2019 compared to $1.3 million at September 30, 2019 and $1.7
million at December 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 17.66%
and a Tier 1 leverage ratio of 12.05% at December 31, 2019.
Tangible common equity to average tangible assets ratio (non-GAAP)
increased to 10.20% at December 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) |
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
March 31, 2019 |
|
|
|
|
|
|
|
|
Shareholders' equity |
$ |
145,806 |
|
$ |
143,119 |
|
$ |
128,094 |
|
$ |
133,122 |
Goodwill |
27,076 |
|
27,076 |
|
27,076 |
|
27,076 |
Core deposit intangible, net |
799 |
|
839 |
|
966 |
|
920 |
|
|
|
|
|
|
|
|
Tangible shareholders'
equity |
$ |
117,931 |
|
$ |
115,204 |
|
$ |
100,052 |
|
$ |
105,126 |
|
|
|
|
|
|
|
|
Total assets |
$ |
1,184,100 |
|
$ |
1,173,019 |
|
$ |
1,151,225 |
|
$ |
1,156,921 |
Goodwill |
27,076 |
|
27,076 |
|
27,076 |
|
27,076 |
Core deposit intangible, net |
799 |
|
839 |
|
966 |
|
920 |
|
|
|
|
|
|
|
|
Tangible assets |
$ |
1,156,225 |
|
$ |
1,145,104 |
|
$ |
1,123,183 |
|
$ |
1,128,925 |
|
|
|
|
|
|
|
|
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 $1.18 billion at
December 31, 2019, it is the parent company of the 96-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 6
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 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.
|
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|
|
|
|
RIVERVIEW BANCORP,
INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
|
|
|
Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data)
(Unaudited) |
December 31, 2019 |
|
|
September 30, 2019 |
|
December 31, 2018 |
|
|
March 31, 2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (including interest-earning accounts of $48,781, $32,632, |
$ |
62,123 |
|
|
$ |
48,888 |
|
$ |
23,394 |
|
|
$ |
22,950 |
|
$4,641 and $5,844) |
|
|
|
|
|
|
|
|
|
|
Certificate of deposits held for investment |
249 |
|
|
249 |
|
747 |
|
|
747 |
|
Loans held for sale |
- |
|
|
310 |
|
- |
|
|
909 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
Available for sale, at estimated fair value |
155,757 |
|
|
163,682 |
|
182,280 |
|
|
178,226 |
|
Held to maturity, at amortized cost |
29 |
|
|
31 |
|
36 |
|
|
35 |
|
Loans receivable (net of allowance for loan losses of $11,433, |
|
|
|
|
|
|
|
|
|
|
$11,436, $11,502, and $11,457) |
875,100 |
|
|
869,880 |
|
857,134 |
|
|
864,659 |
|
Prepaid expenses and other assets |
8,330 |
|
|
8,136 |
|
4,021 |
|
|
4,596 |
|
Accrued interest receivable |
3,729 |
|
|
3,827 |
|
3,789 |
|
|
3,919 |
|
Federal Home Loan Bank stock, at cost |
1,380 |
|
|
1,380 |
|
2,735 |
|
|
3,644 |
|
Premises and equipment, net |
16,021 |
|
|
15,490 |
|
14,940 |
|
|
15,458 |
|
Deferred income taxes, net |
3,416 |
|
|
3,296 |
|
4,680 |
|
|
4,195 |
|
Mortgage servicing rights, net |
215 |
|
|
247 |
|
325 |
|
|
296 |
|
Goodwill |
27,076 |
|
|
27,076 |
|
27,076 |
|
|
27,076 |
|
Core deposit intangible, net |
799 |
|
|
839 |
|
966 |
|
|
920 |
|
Bank owned life insurance |
29,876 |
|
|
29,688 |
|
29,102 |
|
|
29,291 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,184,100 |
|
|
$ |
1,173,019 |
|
$ |
1,151,225 |
|
|
$ |
1,156,921 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
990,464 |
|
|
$ |
982,275 |
|
$ |
943,578 |
|
|
$ |
925,068 |
|
Accrued expenses and other liabilities |
18,483 |
|
|
17,502 |
|
15,855 |
|
|
12,536 |
|
Advance payments by borrowers for taxes and insurance |
329 |
|
|
1,117 |
|
192 |
|
|
631 |
|
Federal Home Loan Bank advances |
- |
|
|
- |
|
34,543 |
|
|
56,586 |
|
Junior subordinated debentures |
26,640 |
|
|
26,619 |
|
26,553 |
|
|
26,575 |
|
Capital lease obligations |
2,378 |
|
|
2,387 |
|
2,410 |
|
|
2,403 |
|
Total liabilities |
1,038,294 |
|
|
1,029,900 |
|
1,023,131 |
|
|
1,023,799 |
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
|
|
|
Serial preferred stock, $.01 par value; 250,000 authorized, issued
and outstanding, none |
- |
|
|
- |
|
- |
|
|
- |
|
Common stock, $.01 par value; 50,000,000 authorized, |
|
|
|
|
|
|
|
|
|
|
December 31, 2019 - 22,748,385 issued and outstanding; |
|
|
|
|
|
|
|
|
|
|
September 30, 2019 - 22,748,385 issued and outstanding; |
227 |
|
|
227 |
|
226 |
|
|
226 |
|
December 31, 2018 - 22,598,712 issued and outstanding; |
|
|
|
|
|
|
|
|
|
|
March 31, 2019 – 22,607,712 issued and outstanding; |
|
|
|
|
|
|
|
|
|
|
Additional paid-in capital |
65,637 |
|
|
65,559 |
|
65,056 |
|
|
65,094 |
|
Retained earnings |
80,103 |
|
|
77,112 |
|
67,126 |
|
|
70,428 |
|
Accumulated other comprehensive income (loss) |
(161 |
) |
|
221 |
|
(4,314 |
) |
|
(2,626 |
) |
Total shareholders’ equity |
145,806 |
|
|
143,119 |
|
128,094 |
|
|
133,122 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
1,184,100 |
|
|
$ |
1,173,019 |
|
$ |
1,151,225 |
|
|
$ |
1,156,921 |
|
|
|
|
|
|
|
|
|
|
|
|
RIVERVIEW
BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
(In thousands, except share data)
(Unaudited) |
Dec. 31, 2019 |
Sept. 30, 2019 |
Dec. 31, 2018 |
|
Dec. 31, 2019 |
Dec. 31, 2018 |
INTEREST INCOME: |
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
11,699 |
$ |
11,893 |
$ |
11,182 |
|
$ |
35,146 |
$ |
33,261 |
Interest on investment securities - taxable |
851 |
860 |
1,110 |
|
2,589 |
3,424 |
Interest on investment securities - nontaxable |
27 |
36 |
37 |
|
100 |
110 |
Other interest and dividends |
189 |
93 |
60 |
|
369 |
271 |
Total interest and dividend income |
12,766 |
12,882 |
12,389 |
|
38,204 |
37,066 |
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
Interest on deposits |
942 |
660 |
240 |
|
1,953 |
759 |
Interest on borrowings |
332 |
503 |
416 |
|
1,570 |
1,126 |
Total interest expense |
1,274 |
1,163 |
656 |
|
3,523 |
1,885 |
Net interest income |
11,492 |
11,719 |
11,733 |
|
34,681 |
35,181 |
Provision for loan losses |
- |
- |
- |
|
- |
50 |
|
|
|
|
|
|
|
Net interest income after
provision for, recapture of, loan losses |
11,492 |
11,719 |
11,733 |
|
34,681 |
35,131 |
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
Fees and service charges |
1,661 |
1,752 |
1,458 |
|
5,050 |
4,544 |
Asset management fees |
1,136 |
1,090 |
935 |
|
3,369 |
2,804 |
Net gain on sale of loans held for sale |
68 |
46 |
82 |
|
210 |
278 |
Bank owned life insurance |
188 |
204 |
192 |
|
585 |
545 |
Other, net |
110 |
77 |
62 |
|
254 |
267 |
Total non-interest income, net |
3,163 |
3,169 |
2,729 |
|
9,468 |
8,438 |
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
Salaries and employee benefits |
5,941 |
5,697 |
5,794 |
|
17,353 |
16,655 |
Occupancy and depreciation |
1,461 |
1,277 |
1,306 |
|
4,058 |
4,016 |
Data processing |
637 |
669 |
621 |
|
1,986 |
1,874 |
Amortization of core deposit intangible |
40 |
41 |
45 |
|
121 |
137 |
Advertising and marketing |
181 |
298 |
151 |
|
689 |
609 |
FDIC insurance premium |
- |
- |
85 |
|
81 |
246 |
State and local taxes |
126 |
174 |
125 |
|
495 |
475 |
Telecommunications |
84 |
76 |
85 |
|
246 |
266 |
Professional fees |
267 |
263 |
449 |
|
855 |
1,120 |
Other |
511 |
508 |
142 |
|
1,561 |
1,339 |
Total non-interest expense |
9,248 |
9,003 |
8,803 |
|
27,445 |
26,737 |
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
5,407 |
5,885 |
5,659 |
|
16,704 |
16,832 |
PROVISION FOR INCOME
TAXES |
1,279 |
1,351 |
1,271 |
|
3,850 |
3,773 |
NET INCOME |
$ |
4,128 |
$ |
4,534 |
$ |
4,388 |
|
$ |
12,854 |
$ |
13,059 |
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
Basic |
$ |
0.18 |
$ |
0.20 |
$ |
0.19 |
|
$ |
0.57 |
$ |
0.58 |
Diluted |
$ |
0.18 |
$ |
0.20 |
$ |
0.19 |
|
$ |
0.57 |
$ |
0.58 |
Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
Basic |
22,665,712 |
22,643,103 |
22,598,712 |
|
22,642,883 |
22,582,956 |
Diluted |
22,718,255 |
22,702,696 |
22,663,919 |
|
22,701,415 |
22,658,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
At or for the three months ended |
|
At or for the nine months ended |
|
Dec. 31, 2019 |
|
Sept. 30, 2019 |
|
Dec. 31, 2018 |
|
Dec. 31, 2019 |
|
Dec. 31, 2018 |
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
Average interest–earning assets |
$ |
1,082,229 |
|
$ |
1,069,209 |
|
$ |
1,057,199 |
|
$ |
1,072,584 |
|
$ |
1,056,750 |
Average interest-bearing
liabilities |
726,294 |
|
708,846 |
|
707,618 |
|
721,345 |
|
716,890 |
Net average earning assets |
355,935 |
|
360,363 |
|
349,581 |
|
351,239 |
|
339,860 |
Average loans |
878,656 |
|
889,208 |
|
854,368 |
|
881,779 |
|
835,697 |
Average deposits |
987,056 |
|
952,283 |
|
967,246 |
|
953,418 |
|
975,295 |
Average equity |
146,090 |
|
142,195 |
|
125,252 |
|
141,644 |
|
122,298 |
Average tangible equity
(non-GAAP) |
118,192 |
|
114,256 |
|
97,182 |
|
113,706 |
|
94,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
Dec. 31, 2019 |
|
Sept. 30, 2019 |
|
Dec. 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
$ |
1,517 |
|
$ |
1,485 |
|
$ |
1,612 |
|
|
|
|
Non-performing loans to total
loans |
0.17% |
|
0.17% |
|
0.19% |
|
|
|
|
Real estate/repossessed assets
owned |
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
|
|
Non-performing assets |
$ |
1,517 |
|
$ |
1,485 |
|
$ |
1,612 |
|
|
|
|
Non-performing assets to total
assets |
0.13% |
|
0.13% |
|
0.14% |
|
|
|
|
Net loan charge-offs in the
quarter |
$ |
3 |
|
$ |
6 |
|
$ |
11 |
|
|
|
|
Net charge-offs in the
quarter/average net loans |
0.00% |
|
0.00% |
|
0.01% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
11,433 |
|
$ |
11,436 |
|
$ |
11,502 |
|
|
|
|
Average interest-earning assets
to average |
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
149.01% |
|
150.84% |
|
149.40% |
|
|
|
|
Allowance for loan losses to |
|
|
|
|
|
|
|
|
|
non-performing loans |
753.66% |
|
770.10% |
|
713.52% |
|
|
|
|
Allowance for loan losses to
total loans |
1.29% |
|
1.30% |
|
1.32% |
|
|
|
|
Shareholders’ equity to
assets |
12.31% |
|
12.20% |
|
11.13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
Total capital (to risk weighted
assets) |
17.66% |
|
17.27% |
|
16.35% |
|
|
|
|
Tier 1 capital (to risk weighted
assets) |
16.41% |
|
16.02% |
|
15.10% |
|
|
|
|
Common equity tier 1 (to risk
weighted assets) |
16.41% |
|
16.02% |
|
15.10% |
|
|
|
|
Tier 1 capital (to average
tangible assets) |
12.05% |
|
11.79% |
|
11.22% |
|
|
|
|
Tangible common equity (to
average tangible assets) (non-GAAP) |
10.20% |
|
10.06% |
|
8.91% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
MIX |
Dec. 31, 2019 |
|
Sept. 30, 2019 |
|
Dec. 31, 2018 |
|
March 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
$ |
179,447 |
|
$ |
178,854 |
|
$ |
183,426 |
|
$ |
183,388 |
|
|
Regular savings |
217,004 |
|
196,340 |
|
137,323 |
|
137,503 |
|
|
Money market deposit
accounts |
183,076 |
|
186,842 |
|
242,081 |
|
233,317 |
|
|
Non-interest checking |
279,564 |
|
299,062 |
|
284,939 |
|
284,854 |
|
|
Certificates of deposit |
131,373 |
|
121,177 |
|
95,809 |
|
86,006 |
|
|
Total deposits |
$ |
990,464 |
|
$ |
982,275 |
|
$ |
943,578 |
|
$ |
925,068 |
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
Commercial |
|
Real Estate |
|
Real Estate |
|
& Construction |
|
Business |
|
Mortgage |
|
Construction |
|
Total |
|
|
December 31, 2019 |
(Dollars in thousands) |
Commercial business |
$ |
165,526 |
|
$ |
- |
|
$ |
- |
|
$ |
165,526 |
Commercial construction |
- |
|
- |
|
79,034 |
|
79,034 |
Office buildings |
- |
|
109,517 |
|
- |
|
109,517 |
Warehouse/industrial |
- |
|
99,167 |
|
- |
|
99,167 |
Retail/shopping centers/strip
malls |
- |
|
67,874 |
|
- |
|
67,874 |
Assisted living facilities |
- |
|
1,075 |
|
- |
|
1,075 |
Single purpose facilities |
- |
|
192,530 |
|
- |
|
192,530 |
Land |
- |
|
15,163 |
|
- |
|
15,163 |
Multi-family |
- |
|
57,792 |
|
- |
|
57,792 |
One-to-four family
construction |
- |
|
- |
|
9,838 |
|
9,838 |
Total |
$ |
165,526 |
|
$ |
543,118 |
|
$ |
88,872 |
|
$ |
797,516 |
|
|
|
|
|
|
|
|
March 31, 2019 |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN MIX |
Dec. 31, 2019 |
|
Sept. 30, 2019 |
|
Dec. 31, 2018 |
|
March 31, 2019 |
Commercial and construction |
|
|
|
|
|
|
|
Commercial business |
$ |
165,526 |
|
$ |
167,782 |
|
$ |
154,360 |
|
$ |
162,796 |
Other real estate mortgage |
543,118 |
|
541,715 |
|
541,797 |
|
530,029 |
Real estate construction |
88,872 |
|
83,174 |
|
76,518 |
|
90,882 |
Total commercial and construction |
797,516 |
|
792,671 |
|
772,675 |
|
783,707 |
Consumer |
|
|
|
|
|
|
|
Real estate one-to-four family |
83,978 |
|
82,578 |
|
86,240 |
|
84,053 |
Other installment |
5,039 |
|
6,067 |
|
9,721 |
|
8,356 |
Total consumer |
89,017 |
|
88,645 |
|
95,961 |
|
92,409 |
|
|
|
|
|
|
|
|
Total loans |
886,533 |
|
881,316 |
|
868,636 |
|
876,116 |
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
Allowance for loan losses |
11,433 |
|
11,436 |
|
11,502 |
|
11,457 |
Loans receivable, net |
$ |
875,100 |
|
$ |
869,880 |
|
$ |
857,134 |
|
$ |
864,659 |
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
Other |
|
Southwest |
|
|
|
|
|
Oregon |
|
Washington |
|
Other |
|
Total |
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
$ |
- |
|
$ |
299 |
|
$ |
- |
|
$ |
299 |
Commercial real estate |
851 |
|
168 |
|
- |
|
1,019 |
Consumer |
- |
|
179 |
|
20 |
|
199 |
|
|
|
|
|
|
|
|
Total non-performing
assets |
$ |
851 |
|
$ |
646 |
|
$ |
20 |
|
$ |
1,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF
LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS |
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Total |
|
|
December 31, 2019 |
(dollars in thousands) |
|
|
|
|
|
|
|
|
Land development |
$ |
2,175 |
|
$ |
1,852 |
|
$ |
11,136 |
|
$ |
15,163 |
Speculative construction |
278 |
|
- |
|
9,496 |
|
9,774 |
|
|
|
|
|
|
|
|
Total land development and
speculative construction |
$ |
2,453 |
|
$ |
1,852 |
|
$ |
20,632 |
|
$ |
24,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three months ended |
|
At or for the nine months ended |
SELECTED OPERATING DATA |
Dec. 31, 2019 |
|
Sept. 30, 2019 |
|
Dec. 31, 2018 |
|
Dec. 31, 2019 |
|
Dec. 31, 2018 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
63.10% |
|
60.47% |
|
60.87% |
|
62.16% |
|
61.30% |
Coverage ratio (6) |
124.26% |
|
130.17% |
|
133.28% |
|
126.37% |
|
131.58% |
Return on average assets
(1) |
1.40% |
|
1.55% |
|
1.53% |
|
1.47% |
|
1.52% |
Return on average equity
(1) |
11.24% |
|
12.68% |
|
13.90% |
|
12.08% |
|
14.17% |
Return on average tangible
equity (1) (non-GAAP) |
13.89% |
|
15.79% |
|
17.91% |
|
15.05% |
|
18.40% |
|
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
|
|
|
|
|
|
|
Yield on loans |
5.30% |
|
5.32% |
|
5.19% |
|
5.30% |
|
5.28% |
Yield on investment
securities |
2.21% |
|
2.15% |
|
2.38% |
|
2.15% |
|
2.32% |
Total yield on interest-earning assets |
4.70% |
|
4.80% |
|
4.65% |
|
4.74% |
|
4.66% |
|
|
|
|
|
|
|
|
|
|
Cost of interest-bearing
deposits |
0.54% |
|
0.40% |
|
0.14% |
|
0.39% |
|
0.15% |
Cost of FHLB advances and
other borrowings |
4.55% |
|
3.72% |
|
4.35% |
|
3.71% |
|
4.49% |
Total cost of interest-bearing liabilities |
0.70% |
|
0.65% |
|
0.37% |
|
0.65% |
|
0.35% |
|
|
|
|
|
|
|
|
|
|
Spread (7) |
4.00% |
|
4.15% |
|
4.28% |
|
4.09% |
|
4.31% |
Net interest margin |
4.23% |
|
4.36% |
|
4.41% |
|
4.31% |
|
4.42% |
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
Basic earnings per share (2) |
$ |
0.18 |
|
$ |
0.20 |
|
$ |
0.19 |
|
$ |
0.57 |
|
$ |
0.58 |
Diluted earnings per share
(3) |
0.18 |
|
0.20 |
|
0.19 |
|
0.57 |
|
0.58 |
Book value per share (5) |
6.41 |
|
6.29 |
|
5.67 |
|
6.41 |
|
5.67 |
Tangible book value per share
(5) (non-GAAP) |
5.18 |
|
5.06 |
|
4.43 |
|
5.18 |
|
4.43 |
Market price per share: |
|
|
|
|
|
|
|
|
|
High for the period |
$ |
8.45 |
|
$ |
8.55 |
|
$ |
8.75 |
|
$ |
8.55 |
|
$ |
9.91 |
Low for the period |
6.94 |
|
6.87 |
|
7.03 |
|
6.87 |
|
7.03 |
Close for period end |
8.21 |
|
7.38 |
|
7.28 |
|
8.21 |
|
7.28 |
Cash dividends declared per
share |
0.0500 |
|
0.0450 |
|
0.0400 |
|
0.1400 |
|
0.1100 |
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic (2) |
22,665,712 |
|
22,643,103 |
|
22,598,712 |
|
22,642,883 |
|
22,582,956 |
Diluted (3) |
22,718,255 |
|
22,702,696 |
|
22,663,919 |
|
22,701,415 |
|
22,658,153 |
|
|
|
|
|
|
|
|
|
|
(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 LamRiverview Bancorp, Inc.
360-693-6650
Riverview Bancorp (NASDAQ:RVSB)
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Riverview Bancorp (NASDAQ:RVSB)
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