RVSB Riverview Bancorp Inc

Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the “Company”) today reported net income increased to $3.1 million, or $0.14 per diluted share, in the second fiscal quarter ended September 30, 2017, compared to $2.7 million, or $0.12 per diluted share, in the preceding quarter and $1.7 million, or $0.07 per diluted share, in the second fiscal quarter ended September 30, 2016. 

In the first six months of fiscal year 2018, Riverview’s earnings increased to $5.7 million, or $0.25 per diluted share, compared to $3.4 million, or $0.15 per diluted share, in the first six months of fiscal year 2017.

“Solid revenue growth combined with improving operating efficiencies contributed to a profitable second quarter,” stated Pat Sheaffer, chairman and chief executive officer. “We are proud of our entire team for their hard work and dedication to growing the Company. Without their efforts none of this would be possible. This positions us well for continued growth in the Portland-Vancouver market over the next fiscal year.”

Second Quarter Highlights (at or for the period ended September 30, 2017)

• Net income grew to $3.1 million, or $0.14 per diluted share.
• Net interest margin (NIM) expanded by 33 basis points to 4.03% compared to the second quarter a year ago.
• Total loans were $783.7 million at September 30, 2017.
• Non-performing assets were 0.27% of total assets.
• Tangible book value per share improved to $3.93.
• Total risk-based capital ratio was 15.07% and Tier 1 leverage ratio was 9.75%.
• Efficiency ratio improved to 65.2%.
• Declared quarterly cash dividend of $0.0225 per share, generating a current dividend yield of 1.07%.

Income Statement

Riverview’s net interest income increased $2.6 million, or 33%, to $10.7 million for the second fiscal quarter of 2018 compared to $8.1 million in the second fiscal quarter a year ago, and increased $292,000, or 3%, compared to $10.4 million in the preceding quarter. The increase in net interest income was primarily due to a rise in interest and fees on loans as a result of the average balance growth of our outstanding loans and an increase in our loan yield. In the first six months of fiscal 2018, net interest income increased $5.3 million to $21.2 million compared to $15.9 million in the first six months of fiscal 2017.

“Our net interest margin compressed six basis points in the second quarter of fiscal 2018 compared to the prior linked quarter, reflecting our higher balance of cash and liquid assets,” said Kevin Lycklama, executive vice president and chief operating officer. “The prior linked quarter also included the collection of $104,000 of nonaccrual interest income which contributed four basis points to our prior quarter’s NIM.” The interest accretion on purchased loans totaled $273,000 and resulted in an 10 basis point increase in our NIM during the second fiscal quarter. Year-to-date, the NIM increased 34 basis points to 4.06% compared to 3.72% in the first six months of fiscal 2017.

Non-interest income was $2.7 million in the second fiscal quarter, which was the same as in the preceding quarter. Non-interest income increased $132,000 compared to $2.6 million in the second quarter a year ago. In the first six months of fiscal 2018, non-interest income increased to $5.5 million compared to $5.1 million in the first six months of fiscal 2017. The year over year increase was primarily due to continued organic growth as well as an increase in fees and service charges and asset management fees. The increase in fees and service charges was primarily due to the collection of $113,000 in loan prepayment penalties and an increase of $128,000 in debit interchange income. Other non-interest income decreased during the three and six months ended September 30, 2017 compared to the same prior year period due to $407,000 of income from a BOLI claim which was offset by a $132,000 impairment charge on an investment security during the prior year period.

Asset management fees were $818,000 in the second fiscal quarter of 2018 compared to $853,000 in the preceding quarter and $727,000 in the same quarter a year ago. Riverview Trust Company’s (“RTC”) assets under management increased to $461.2 million at September 30, 2017 compared to $440.5 million three months earlier and $401.2 million a year earlier. During the fourth quarter of fiscal 2017, RTC opened a second office in the Portland suburb of Lake Oswego, expanding its footprint and product offerings in the Portland market.  

Non-interest expense decreased $415,000 to $8.8 million during the second fiscal quarter of 2018 compared to $9.2 million in the preceding quarter and increased $362,000 from $8.4 million for the same prior year period. The efficiency ratio improved to 65.2% for the quarter ended September 30, 2017 compared to 69.7% in the preceding quarter. Second quarter fiscal 2018 operating expenses included $177,000 in transaction-related expenses in connection with the MBank purchase compared to $429,000 in the preceding quarter. “We have continued to see improvements in our profitability and performance ratios as we realize the expected cost savings and operating efficiencies from this transaction,” said Lycklama.

Balance Sheet Review

With several large loan payoffs during the quarter, total loans decreased $13.8 million during the quarter to $783.7 million at September 30, 2017 compared to $797.5 million at June 30, 2017. Undisbursed construction loans totaled $64.1 million at September 30, 2017, with the majority of the undisbursed construction loans expected to fund over the next several quarters. The commercial loan pipeline totaled $47.7 million at the end of the quarter.

Total deposits increased $16.8 million to $990.3 million at September 30, 2017 compared to $973.5 million at June 30, 2017. Checking account balances accounted for $16.2 million of the gain and grew to 45.0% of total deposits compared to 44.2% a year ago.

Shareholders’ equity was $116.7 million at September 30, 2017 compared to $113.9 million three months earlier and $111.0 million a year earlier. Tangible book value per share was $3.93 at September 30, 2017 compared to $3.80 at June 30, 2017, and $3.79 at September 30, 2016. A quarterly cash dividend of $0.0225 per share was paid on October 24, 2017.

Credit Quality

Riverview’s classified assets totaled $7.1 million at September 30, 2017 compared to $8.8 million three months earlier. At September 30, 2017, the classified asset to total capital ratio was 6.0% compared to 7.5% three months earlier.

Non-performing loans were $2.7 million, or 0.35% of total loans, at September 30, 2017 compared to $2.8 million, or 0.35% of total loans, three months earlier. REO balances were $298,000 at September 30, 2017 unchanged compared to the preceding quarter.

The allowance for loan losses totaled $10.6 million, representing 1.35% of total loans at September 30, 2017 compared to 1.33% of total loans at June 30, 2017. 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 $2.6 million at September 30, 2017 compared to $2.8 million in the prior quarter. Net loan recoveries were $20,000 during the second fiscal quarter of 2018 compared to $69,000 in the preceding 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 15.07%, Tier 1 leverage ratio of 9.75% and tangible common equity to tangible assets ratio of 7.90% at September 30, 2017.

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 common 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.

The following table provides a reconciliation of ending shareholders’ equity (GAAP) to ending tangible shareholders’ equity (non-GAAP), and ending total assets (GAAP) to ending tangible assets (non-GAAP).

(Dollars in thousands)		September 30,2017			June 30, 2017			September 30,2016			March 31, 2017
Shareholders' equity		$	116,742		$	113,917		$	110,986		$	111,264
Goodwill			27,076			27,076			25,572			27,076
Core deposit intangible, net			1,219			1,277			-			1,335
Tangible shareholders' equity		$	88,447		$	85,564		$	85,414		$	82,853
Total assets		$	1,147,680		$	1,125,161		$	984,045		$	1,133,939
Goodwill			27,076			27,076			25,572			27,076
Core deposit intangible, net			1,219			1,277			-			1,335
Tangible assets		$	1,119,385		$	1,096,808		$	958,473		$	1,105,528

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, 2017, it is the parent company of the 94-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 19 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 4 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: expected cost savings, synergies and other financial benefits from our pending purchase of certain assets and assumption of certain liabilities of MBank and Merchants Bancorp pursuant to the Purchase and Assumption Agreement (the "Agreement") with Merchants Bancorp and its wholly owned subsidiary MBank (the "transaction") might not be realized within the expected time frames or at all, and costs or difficulties relating to integration matters might be greater than expected; the requisite approval of Merchants Bancorp’s shareholders and regulatory approvals for the transaction might not be obtained; 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 2018 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, 2017				June 30, 2017				September 30, 2016				March 31, 2017
ASSETS
Cash (including interest-earning accounts of $59,315, $14,919,	$	76,245			$	34,108			$	93,007			$	64,613
$77,509 and $46,245)
Certificate of deposits held for investment		9,797				11,042				15,275				11,042
Loans held for sale		347				768				991				478
Investment securities:
Available for sale, at estimated fair value		200,584				205,012				152,251				200,214
Held to maturity, at amortized cost		46				54				69				64
Loans receivable (net of allowance for loan losses of $10,617,
$10,597, $10,063, and $10,528)		773,087				786,913				640,873				768,904
Real estate owned		298				298				539				298
Prepaid expenses and other assets		4,227				3,901				4,334				3,815
Accrued interest receivable		3,111				3,086				2,421				2,941
Federal Home Loan Bank stock, at cost		1,181				1,181				1,060				1,181
Premises and equipment, net		15,740				16,041				14,206				16,232
Deferred income taxes, net		6,167				6,051				7,816				7,610
Mortgage servicing rights, net		406				408				385				398
Goodwill		27,076				27,076				25,572				27,076
Core deposit intangible, net		1,219				1,277				-				1,335
Bank owned life insurance		28,149				27,945				25,246				27,738
TOTAL ASSETS	$	1,147,680			$	1,125,161			$	984,045			$	1,133,939
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits	$	990,299			$	973,483			$	838,902			$	980,058
Accrued expenses and other liabilities		10,838				8,302				8,175				13,080
Advance payments by borrowers for taxes and insurance		920				596				837				693
Junior subordinated debentures		26,438				26,414				22,681				26,390
Capital lease obligation		2,443				2,449				2,464				2,454
Total liabilities		1,030,938				1,011,244				873,059				1,022,675
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, 2017 - 22,533,912 issued and outstanding;
June 30, 2017 – 22,527,401 issued and outstanding;		225				225				225				225
September 30, 2016 - 22,507,890 issued and outstanding;
March 31, 2017 – 22,510,890 issued and outstanding;
Additional paid-in capital		64,612				64,556				64,425				64,468
Retained earnings		53,034				50,482				45,207				48,335
Unearned shares issued to employee stock ownership plan		(26	)			(52	)			(129	)			(77	)
Accumulated other comprehensive income (loss)		(1,103	)			(1,294	)			1,258				(1,687	)
Total shareholders’ equity		116,742				113,917				110,986				111,264
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,147,680			$	1,125,161			$	984,045			$	1,133,939

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
	Three Months Ended									Six Months Ended
(In thousands, except share data)  (Unaudited)	Sept. 30, 2017		June 30, 2017			Sept. 30, 2016				Sept. 30, 2017		Sept. 30, 2016
INTEREST INCOME:
Interest and fees on loans receivable	$	9,994		$	9,789		$	7,631		$	19,783		$	15,071
Interest on investment securities - taxable		1,079			1,133			769			2,212			1,489
Interest on investment securities - nontaxable		14			14			-			28			-
Other interest and dividends		228			87			130			315			232
Total interest and dividend income		11,315			11,023			8,530			22,338			16,792
INTEREST EXPENSE:
Interest on deposits		313			322			279			635			560
Interest on borrowings		277			268			163			545			321
Total interest expense		590			590			442			1,180			881
Net interest income		10,725			10,433			8,088			21,158			15,911
Provision for loan losses		-			-			-			-			-
Net interest income after provision for loan losses		10,725			10,433			8,088			21,158			15,911
NON-INTEREST INCOME:
Fees and service charges		1,490			1,407			1,188			2,897			2,511
Asset management fees		818			853			727			1,671			1,549
Net gain on sale of loans held for sale		157			225			163			382			302
Bank owned life insurance income		204			207			190			411			381
Other, net		44			46			313			90			352
Total non-interest income		2,713			2,738			2,581			5,451			5,095
NON-INTEREST EXPENSE:
Salaries and employee benefits		5,251			5,422			4,531			10,673			9,171
Occupancy and depreciation		1,412			1,346			1,225			2,758			2,362
Data processing		580			616			476			1,196			971
Amortization of core deposit intangible		58			58			-			116			-
Advertising and marketing expense		256			234			252			490			445
FDIC insurance premium		136			145			74			281			196
State and local taxes		177			154			146			331			285
Telecommunications		103			104			76			207			149
Professional fees		261			415			453			676			711
Real estate owned expenses		3			2			35			5			50
Other		522			678			1,129			1,200			1,872
Total non-interest expense		8,759			9,174			8,397			17,933			16,212
INCOME BEFORE INCOME TAXES		4,679			3,997			2,272			8,676			4,794
PROVISION FOR INCOME TAXES		1,620			1,343			592			2,963			1,417
NET INCOME	$	3,059		$	2,654		$	1,680		$	5,713		$	3,377
Earnings per common share:
Basic	$	0.14		$	0.12		$	0.07		$	0.25		$	0.15
Diluted	$	0.14		$	0.12		$	0.07		$	0.25		$	0.15
Weighted average number of common shares outstanding:
Basic		22,518,941			22,504,852			22,474,019			22,511,935			22,470,957
Diluted		22,609,480			22,589,440			22,530,331			22,599,851			22,522,544

(Dollars in thousands)		At or for the three months ended												At or for the six months ended
		Sept. 30, 2017				June 30, 2017				Sept. 30, 2016				Sept. 30, 2017			Sept. 30, 2016
AVERAGE BALANCES
Average interest–earning assets		$	1,056,818			$	1,023,196			$	867,797			$	1,040,098		$	853,691
Average interest-bearing liabilities			749,172				745,172				632,445				747,183			629,053
Net average earning assets			307,646				278,024				235,352				292,915			224,638
Average loans			783,213				786,317				645,479				784,756			639,258
Average deposits			992,111				961,421				809,384				976,850			796,178
Average equity			116,675				113,661				111,516				115,176			110,667
Average tangible equity (non-GAAP)			88,351				85,278				85,944				86,822			85,095
ASSET QUALITY		Sept. 30, 2017				June 30, 2017				Sept. 30, 2016
Non-performing loans		$	2,745			$	2,792			$	2,360
Non-performing loans to total loans			0.35	%			0.35	%			0.36	%
Real estate/repossessed assets owned		$	298			$	298			$	539
Non-performing assets		$	3,043			$	3,090			$	2,899
Non-performing assets to total assets			0.27	%			0.27	%			0.29	%
Net loan recoveries in the quarter		$	(20	)		$	(69	)		$	(103	)
Net recoveries in the quarter/average net loans			(0.01	)%			(0.04	)%			(0.06	)%
Allowance for loan losses		$	10,617			$	10,597			$	10,063
Average interest-earning assets to average
interest-bearing liabilities			141.06	%			137.31	%			137.21	%
Allowance for loan losses to
non-performing loans			386.78	%			379.55	%			426.40	%
Allowance for loan losses to total loans			1.35	%			1.33	%			1.55	%
Shareholders’ equity to assets			10.17	%			10.12	%			11.28	%
CAPITAL RATIOS
Total capital (to risk weighted assets)			15.06	%			14.41	%			16.05	%
Tier 1 capital (to risk weighted assets)			13.80	%			13.16	%			14.80	%
Common equity tier 1 (to risk weighted assets)			13.80	%			13.16	%			14.80	%
Tier 1 capital (to average tangible assets)			9.70	%			9.79	%			10.95	%
Tangible common equity (to average tangible assets)			7.90	%			7.80	%			8.91	%
DEPOSIT MIX		Sept. 30, 2017				June 30, 2017				Sept. 30, 2016				March 31, 2017
Interest checking		$	175,127			$	171,360			$	148,201			$	171,152
Regular savings			134,116				126,704				104,241				126,370
Money market deposit accounts			274,409				274,537				249,381				289,998
Non-interest checking			270,678				258,223				222,218				242,738
Certificates of deposit			135,969				142,659				114,861				149,800
Total deposits		$	990,299			$	973,483			$	838,902			$	980,058

 

COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS
					Other						Commercial
		Commercial			Real Estate			Real Estate			& Construction
		Business			Mortgage			Construction			Total
September 30, 2017		(Dollars in thousands)
Commercial business		$	118,444		$	-		$	-		$	118,444
Commercial construction			-			-			35,923			35,923
Office buildings			-			122,826			-			122,826
Warehouse/industrial			-			77,026			-			77,026
Retail/shopping centers/strip malls			-			69,512			-			69,512
Assisted living facilities			-			3,026			-			3,026
Single purpose facilities			-			168,165			-			168,165
Land			-			13,745			-			13,745
Multi-family			-			46,082			-			46,082
One-to-four family construction			-			-			17,955			17,955
Total		$	118,444		$	500,382		$	53,878		$	672,704
March 31, 2017
Commercial business		$	107,371		$	-		$	-		$	107,371
Commercial construction			-			-			27,050			27,050
Office buildings			-			121,983			-			121,983
Warehouse/industrial			-			74,671			-			74,671
Retail/shopping centers/strip malls			-			78,757			-			78,757
Assisted living facilities			-			3,686			-			3,686
Single purpose facilities			-			167,974			-			167,974
Land			-			15,875			-			15,875
Multi-family			-			43,715			-			43,715
One-to-four family construction			-			-			19,107			19,107
Total		$	107,371		$	506,661		$	46,157		$	660,189
LOAN MIX		Sept. 30, 2017			June 30, 2017			Sept. 30, 2016			March 31, 2017
Commercial and construction
Commercial business		$	118,444		$	125,732		$	64,176		$	107,371
Other real estate mortgage			500,382			513,360			423,729			506,661
Real estate construction			53,878			43,186			45,059			46,157
Total commercial and construction			672,704			682,278			532,964			660,189
Consumer
Real estate one-to-four family			90,764			91,898			86,321			92,865
Other installment			20,236			23,334			31,651			26,378
Total consumer			111,000			115,232			117,972			119,243
Total loans			783,704			797,510			650,936			779,432
Less:
Allowance for loan losses			10,617			10,597			10,063			10,528
Loans receivable, net		$	773,087		$	786,913		$	640,873		$	768,904

 

DETAIL OF NON-PERFORMING ASSETS
				Other			Southwest			Other
				Oregon			Washington			Washington			Other			Total
September 30, 2017				(dollars in thousands)
Non-performing assets
	Commercial business			$	-		$	290		$	-		$	-		$	290
	Commercial real estate				1,095			209			-			-			1,304
	Land				780			-			-			-			780
	Consumer				-			300			-			71			371
	Total non-performing loans				1,875			799			-			71			2,745
	REO				-			-			298			-			298
Total non-performing assets				$	1,875		$	799		$	298		$	71		$	3,043
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS
				Northwest			Other			Southwest
				Oregon			Oregon			Washington			Total
September 30, 2017				(dollars in thousands)
	Land development			$	490		$	911		$	12,344		$	13,745
	Speculative construction				376			401			14,573			15,350
Total land development and speculative construction				$	866		$	1,312		$	26,917		$	29,095

 

	At or for the three months ended												At or for the six months ended
SELECTED OPERATING DATA	Sept. 30, 2017				June 30, 2017				Sept. 30, 2016				Sept. 30, 2017				Sept. 30, 2016
Efficiency ratio (4)		65.18	%			69.65	%			78.70	%			67.39	%			77.18	%
Coverage ratio (6)		122.45	%			113.72	%			96.32	%			117.98	%			98.14	%
Return on average assets (1)		1.06	%			0.96	%			0.70	%			1.01	%			0.72	%
Return on average equity (1)		10.40	%			9.37	%			5.98	%			9.89	%			6.09	%
NET INTEREST SPREAD
Yield on loans		5.06	%			4.99	%			4.69	%			5.03	%			4.70	%
Yield on investment securities		2.14	%			2.21	%			1.96	%			2.18	%			1.91	%
Total yield on interest-earning assets		4.25	%			4.32	%			3.90	%			4.29	%			3.92	%
Cost of interest-bearing deposits		0.17	%			0.18	%			0.18	%			0.18	%			0.18	%
Cost of FHLB advances and other borrowings		3.81	%			3.69	%			2.55	%			3.75	%			2.54	%
Total cost of interest-bearing liabilities		0.31	%			0.32	%			0.28	%			0.31	%			0.28	%
Spread (7)		3.94	%			4.00	%			3.62	%			3.98	%			3.64	%
Net interest margin		4.03	%			4.09	%			3.70	%			4.06	%			3.72	%
PER SHARE DATA
Basic earnings per share (2)	$	0.14			$	0.12			$	0.07			$	0.25			$	0.15
Diluted earnings per share (3)		0.14				0.12				0.07				0.25				0.15
Book value per share (5)		5.18				5.06				4.93				5.18				4.93
Tangible book value per share (5) (non-GAAP)		3.93				3.80				3.79				3.93				3.79
Market price per share:
High for the period	$	8.48			$	7.47			$	5.41			$	8.48			$	5.41
Low for the period		6.64				6.51				4.69				6.51				4.30
Close for period end		8.40				6.64				5.38				8.40				5.38
Cash dividends declared per share		0.0225				0.0225				0.0200				0.0450				0.0400
Average number of shares outstanding:
Basic (2)		22,518,941				22,504,852				22,474,019				22,511,935				22,470,957
Diluted (3)		22,609,480				22,589,440				22,530,331				22,599,851				22,522,544

 

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.

Contacts:     Pat Sheaffer or Kevin Lycklama                                                                                              Riverview Bancorp, Inc. 360-693-6650