Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the
“Company”) today reported net income increased to $4.4 million, or
$0.20 per diluted share, in its first fiscal quarter ended June 30,
2018, compared to $2.7 million, or $0.12 per diluted share, in the
first fiscal quarter a year ago. In the preceding quarter net
income was $3.0 million, or $0.13 per diluted share.
“We started fiscal year 2019 with a record first
quarter and our momentum continues to build,” said Kevin Lycklama,
president and chief executive officer. “Our financial performance
was fueled by strong revenue generation and solid loan growth. As
we look to the rest of the fiscal year, we will continue to focus
on improving profitability while looking for growth opportunities
in and around our surrounding markets that benefit both our
customers and shareholders.”
First Quarter Highlights (at or for the
period ended June 30, 2018)
- Net income of $4.4 million, or
$0.20 per diluted share.
- Net interest margin (NIM) expanded
by 26 basis points to 4.40% compared to the preceding quarter and
expanded 31 basis points compared to the first quarter a year
ago.
- Total loans increased $15.2 million
during the quarter to $826.6 million.
- Non-performing assets improved to
0.21% of total assets.
- Tangible book value per share was
$4.06.
- Total risk-based capital ratio was
15.59% and Tier 1 leverage ratio was 10.46%.
- Riverview Trust Company’s assets
under management increased $90.9 million, or 18.8%, to $575.2
million.
- Declared a quarterly cash dividend
of $0.035 per share, an increase compared to $0.03 in the preceding
quarter, generating a current dividend yield of 1.62% based on the
July 23, 2018 share price.
Income
Statement
In the first fiscal quarter of 2019, Riverview
generated a return on average assets of 1.57% and a return on
average equity of 14.98%, compared to 0.96% and 9.37%, respectively
in the first fiscal quarter of 2018.
Riverview’s first fiscal quarter net interest
margin expanded 26 basis points to 4.40% compared to the preceding
quarter and increased 31 basis points when compared to the first
fiscal quarter a year ago. “Our net interest margin has remained
healthy over the last several quarters, and we had a meaningful
increase during the current quarter driven by the collection of
approximately $585,000 of non-accrual interest from prior
charged-off loans, which added 23 basis points to the net interest
margin,” said Lycklama. In addition, the interest accretion on
purchased loans totaled $122,000 resulting in a five basis point
increase in the NIM during the first fiscal quarter compared to
$199,000 and an eight basis point increase in the NIM in the
preceding quarter.
The weighted average note rate on loans
originated during the quarter ended June 30, 2018, increased to
5.37% compared to 5.17% for the quarter ended March 31, 2018 and
4.73% for the quarter ended June 30, 2017.
Net interest income was $11.5 million in the
first fiscal quarter of 2019, an $830,000 increase compared to
$10.7 million in the preceding quarter, and a $1.1 million increase
compared to $10.4 million in the first fiscal quarter a year ago.
The increase from the preceding quarter was driven by an increase
in the balance of loans receivable as well as the collection of
$585,000 of non-accrual interest from prior charged-off loans.
Non-interest income increased to $3.1 million in
the first fiscal quarter compared to $2.7 million in both the
preceding quarter and in the same quarter a year ago. The increase
in current quarter was primarily due to the increase in fees and
service charges.
Asset management fees increased to $926,000 in
the first fiscal quarter of 2019 compared to $866,000 in the
preceding quarter and $853,000 in the first fiscal quarter a year
ago. Riverview Trust Company’s assets under management increased to
$575.2 million at June 30, 2018, compared to $484.3 million three
months earlier and $440.5 million one year earlier.
Non-interest expense decreased to $9.0 million
during the first fiscal quarter of 2019 compared to $9.1 million in
the preceding quarter and $9.2 million in the first fiscal quarter
a year ago. The decrease for the quarter was primarily related to a
reduction in salary expenses, while the reduction in professional
fees primarily accounted for the decline from the year ago quarter.
The efficiency ratio was 62.0% for the quarter ended June 30, 2018
compared to 68.5% in the preceding quarter and 69.7% in the first
fiscal quarter a year ago.
The effective tax rate for Riverview’s first
fiscal quarter of 2019 decreased to 22.3% as a result of the
passage of the Tax Cuts and Jobs Act. “While a majority of the
savings are expected to flow through to our bottom line we also
plan to reinvest a portion of these savings into projects designed
to drive continued growth for the Bank including staffing,
technology enhancements and infrastructure improvements,” said
Lycklama.
Balance Sheet Review
Total loans increased $15.2 million during the
quarter to $826.6 million at June 30, 2018, an annualized growth
rate of 7.5%. Undisbursed construction loans totaled $75.5 million
at June 30, 2018, compared to $74.8 million three months earlier.
The majority of the undisbursed construction loans are expected to
fund over the next several quarters. The loan pipeline totaled
$75.5 million at June 30, 2018, compared to $74.1 million at the
end of the prior quarter.
Riverview’s total deposits increased $8.9
million to $982.4 million at June 30, 2018, compared to $973.5
million a year ago, but decreased $13.3 million compared to $995.7
million three months earlier. “The decrease compared to the
preceding quarter end was primarily driven by a $13.3 million
decrease from a temporary deposit to a single customer at March 31,
2018,” noted Lycklama.
Shareholders’ equity was $119.8 million at June
30, 2018, compared to $116.9 million three months earlier and
$113.9 million a year earlier. Tangible book value per share
(non-GAAP) improved to $4.06 at June 30, 2018, compared to $3.93 at
March 31, 2018, and $3.80 at June 30, 2017. A quarterly cash
dividend of $0.035 per share was paid on July 24, 2018.
Credit Quality
Riverview recorded a $200,000 recapture for loan
losses during the first fiscal quarter of 2019. This compares
to no provision for loan losses during the preceding quarter or the
first fiscal quarter a year ago. “We had net loan recoveries
of $783,000 during the quarter, and nonperforming loan balances
continue to decline, resulting in a negative provision for loan
losses during the quarter,” said Lycklama.
Non-performing loans were $2.3 million, or 0.28%
of total loans, at June 30, 2018 compared to $2.4 million, or 0.30%
of total loans, three months earlier. Riverview had no real estate
owned balances at June 30, 2018, as the company sold its final REO
property during the first quarter, compared to $298,000 at March
31, 2018 and June 30, 2017.
Net loan recoveries were $783,000 during the
first fiscal quarter of 2019 compared to net loan charge-offs of
$101,000 in the preceding quarter. The large increase in recoveries
during the current quarter was the primarily driven by the
collection of a prior charge-off on a single loan.
Classified assets totaled $7.2 million at June
30, 2018, compared to $7.7 million at March 31, 2018, and $8.8
million at June 30, 2017. The classified asset to total capital
ratio was 5.6% at June 30, 2018, compared to 6.2% three months
earlier and 7.5% a year earlier.
The allowance for loan losses totaled $11.3
million, representing 1.37% of total loans at June 30, 2018,
compared to $10.8 million and 1.33% of total loans at March 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 $2.1 million at June 30,
2018, compared to $2.2 million at the end of the prior quarter.
Capital
Riverview continues to maintain capital levels
well in excess of the regulatory requirements to be categorized as
“well capitalized” with a total risk-based capital ratio of 15.59%
and a Tier 1 leverage ratio of 10.46% at June 30, 2018. In
addition, at that date the Company’s tangible common equity to
average tangible assets ratio (non-GAAP) was 8.24%.
Management Succession
Effective April 2, 2018, Kevin Lycklama was
promoted to president and chief executive officer of the Company
and the Bank, following Patrick Sheaffer’s retirement. Mr. Sheaffer
continues to serve as chairman of the board of both the Company and
the Bank.
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) |
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
|
|
|
|
|
|
Shareholders'
equity |
|
$ |
119,828 |
|
$ |
116,901 |
|
$ |
113,917 |
Goodwill |
|
27,076 |
|
27,076 |
|
27,076 |
Core deposit
intangible, net |
|
1,057 |
|
1,103 |
|
1,277 |
Tangible
shareholders' equity |
|
$ |
91,695 |
|
$ |
88,722 |
|
$ |
85,564 |
|
|
|
|
|
|
|
Total assets |
|
$ |
1,140,268 |
|
$ |
1,151,535 |
|
$ |
1,125,161 |
Goodwill |
|
27,076 |
|
27,076 |
|
27,076 |
Core deposit
intangible, net |
|
1,057 |
|
1,103 |
|
1,277 |
Tangible
assets |
|
$ |
1,112,135 |
|
$ |
1,123,356 |
|
$ |
1,096,808 |
|
|
|
|
|
|
|
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 $1.14 billion at June
30, 2018, it is the parent company of the 95-year-old Riverview
Community Bank, as well as Riverview Trust Company. The Bank offers
true community banking services, focusing on providing the highest
quality service and financial products to commercial and retail
customers. There are 19 branches, including 14 in the
Portland-Vancouver area and three lending centers. For the past 5
years, Riverview has been named Best Bank by the readers of The
Vancouver Business Journal, The Columbian and The Gresham
Outlook.
“Safe Harbor” statement under the Private
Securities Litigation Reform Act of 1995: This press release
contains forward-looking statements that are subject to risks and
uncertainties, including, but not limited to: the Company’s ability
to raise common capital; the credit risks of lending activities,
including changes in the level and trend of loan delinquencies and
write-offs and changes in the Company’s allowance for loan losses
and provision for loan losses that may be impacted by deterioration
in the housing and commercial real estate markets; changes in
general economic conditions, either nationally or in the Company’s
market areas; changes in the levels of general interest rates, and
the relative differences between short and long term interest
rates, deposit interest rates, the Company’s net interest margin
and funding sources; fluctuations in the demand for loans, the
number of unsold homes, land and other properties and fluctuations
in real estate values in the Company’s market areas; secondary
market conditions for loans and the Company’s ability to sell loans
in the secondary market; results of examinations of us by the
Office of Comptroller of the Currency or other regulatory
authorities, including the possibility that any such regulatory
authority may, among other things, require us to increase the
Company’s reserve for loan losses, write-down assets, change
Riverview Community Bank’s regulatory capital position or affect
the Company’s ability to borrow funds or maintain or increase
deposits, which could adversely affect its liquidity and earnings;
legislative or regulatory changes that adversely affect the
Company’s business including changes in regulatory policies and
principles, or the interpretation of regulatory capital or other
rules; the Company’s ability to attract and retain deposits;
further increases in premiums for deposit insurance; the Company’s
ability to control operating costs and expenses; the use of
estimates in determining fair value of certain of the Company’s
assets, which estimates may prove to be incorrect and result in
significant declines in valuation; difficulties in reducing risks
associated with the loans on the Company’s balance sheet; staffing
fluctuations in response to product demand or the implementation of
corporate strategies that affect the Company’s workforce and
potential associated charges; computer systems on which the Company
depends could fail or experience a security breach; the Company’s
ability to retain key members of its senior management team; costs
and effects of litigation, including settlements and judgments; the
Company’s ability to successfully integrate any assets,
liabilities, customers, systems, and management personnel it may in
the future acquire into its operations and the Company’s ability to
realize related revenue synergies and cost savings within expected
time frames and any goodwill charges related thereto; increased
competitive pressures among financial services companies; changes
in consumer spending, borrowing and savings habits; the
availability of resources to address changes in laws, rules, or
regulations or to respond to regulatory actions; the Company’s
ability to pay dividends on its common stock; and interest or
principal payments on its junior subordinated debentures; adverse
changes in the securities markets; inability of key third-party
providers to perform their obligations to us; changes in accounting
policies and practices, as may be adopted by the financial
institution regulatory agencies or the Financial Accounting
Standards Board, including additional guidance and interpretation
on accounting issues and details of the implementation of new
accounting methods; other economic, competitive, governmental,
regulatory, and technological factors affecting the Company’s
operations, pricing, products and services and the other risks
described from time to time in our filings with the SEC.
Such forward-looking statements may include
projections. Any such projections were not prepared in accordance
with published guidelines of the American Institute of Certified
Public Accountants or the Securities Exchange Commission regarding
projections and forecasts nor have such projections been audited,
examined or otherwise reviewed by independent auditors of the
Company. In addition, such projections are based upon many
estimates and inherently subject to significant economic and
competitive uncertainties and contingencies, many of which are
beyond the control of management of the Company. Accordingly,
actual results may be materially higher or lower than those
projected. The inclusion of such projections herein should not be
regarded as a representation by the Company that the projections
will prove to be correct.
The Company cautions readers not to place undue
reliance on any forward-looking statements. Moreover, you should
treat these statements as speaking only as of the date they are
made and based only on information then actually known to the
Company. The Company does not undertake and specifically disclaims
any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements. These risks could
cause our actual results for fiscal 2019 and beyond to differ
materially from those expressed in any forward-looking statements
by, or on behalf of, us, and could negatively affect the Company’s
operating and stock price performance.
RIVERVIEW BANCORP,
INC. AND SUBSIDIARY |
|
|
|
|
|
Consolidated Balance
Sheets |
|
|
|
|
|
(In
thousands, except share data) (Unaudited) |
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash
(including interest-earning accounts of $15,791, $30,052 and
$14,919) |
$ |
33,268 |
|
$ |
44,767 |
|
$ |
34,108 |
Certificate of deposits held for investment |
4,971 |
|
5,967 |
|
11,042 |
Loans
held for sale |
- |
|
210 |
|
768 |
Investment securities: |
|
|
|
|
|
Available
for sale, at estimated fair value |
200,100 |
|
213,221 |
|
205,012 |
Held to
maturity, at amortized cost |
40 |
|
42 |
|
54 |
Loans
receivable (net of allowance for loan losses of $11,349,
$10,766 and $10,597) |
815,237 |
|
800,610 |
|
786,913 |
Real
estate owned |
- |
|
298 |
|
298 |
Prepaid
expenses and other assets |
3,759 |
|
3,870 |
|
3,901 |
Accrued
interest receivable |
3,578 |
|
3,477 |
|
3,086 |
Federal
Home Loan Bank stock, at cost |
1,353 |
|
1,353 |
|
1,181 |
Premises
and equipment, net |
15,674 |
|
15,783 |
|
16,041 |
Deferred
income taxes, net |
5,039 |
|
4,813 |
|
6,051 |
Mortgage
servicing rights, net |
380 |
|
388 |
|
408 |
Goodwill |
27,076 |
|
27,076 |
|
27,076 |
Core
deposit intangible, net |
1,057 |
|
1,103 |
|
1,277 |
Bank
owned life insurance |
28,736 |
|
28,557 |
|
27,945 |
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,140,268 |
|
$ |
1,151,535 |
|
$ |
1,125,161 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits |
$ |
982,350 |
|
$ |
995,691 |
|
$ |
973,483 |
Accrued
expenses and other liabilities |
8,579 |
|
9,391 |
|
8,302 |
Advance
payments by borrowers for taxes and insurance |
580 |
|
637 |
|
596 |
Junior
subordinated debentures |
26,507 |
|
26,484 |
|
26,414 |
Capital
lease obligation |
2,424 |
|
2,431 |
|
2,449 |
Total
liabilities |
1,020,440 |
|
1,034,634 |
|
1,011,244 |
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY: |
|
|
|
|
|
Serial
preferred stock, $.01 par value; 250,000 authorized, issued
and outstanding, none |
- |
|
- |
|
- |
Common
stock, $.01 par value; 50,000,000 authorized, |
|
|
|
|
|
June 30,
2018 – 22,570,179 issued and outstanding; |
226 |
|
226 |
|
225 |
March 31,
2018 – 22,570,179 issued and outstanding; |
|
|
|
|
|
June 30,
2017 – 22,527,401 issued and outstanding; |
|
|
|
|
|
Additional paid-in capital |
64,882 |
|
64,871 |
|
64,556 |
Retained
earnings |
60,204 |
|
56,552 |
|
50,482 |
Unearned
shares issued to employee stock ownership plan |
- |
|
- |
|
(52) |
Accumulated other comprehensive loss |
(5,484) |
|
(4,748) |
|
(1,294) |
Total
shareholders’ equity |
119,828 |
|
116,901 |
|
113,917 |
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
1,140,268 |
|
$ |
1,151,535 |
|
$ |
1,125,161 |
|
|
|
|
|
|
RIVERVIEW BANCORP, INC. AND SUBSIDIARY |
|
Consolidated
Statements of Income |
|
|
|
|
Three Months Ended |
(In
thousands, except share data) (Unaudited) |
June 30, 2018 |
March 31, 2018 |
June 30, 2017 |
INTEREST INCOME: |
|
|
|
Interest
and fees on loans receivable |
$ |
10,777 |
$ |
9,898 |
$ |
9,789 |
Interest
on investment securities - taxable |
1,198 |
1,235 |
1,133 |
Interest
on investment securities - nontaxable |
37 |
36 |
14 |
Other
interest and dividends |
93 |
75 |
87 |
Total
interest and dividend income |
12,105 |
11,244 |
11,023 |
|
|
|
|
INTEREST EXPENSE: |
|
|
|
Interest
on deposits |
260 |
275 |
322 |
Interest
on borrowings |
358 |
312 |
268 |
Total
interest expense |
618 |
587 |
590 |
Net interest
income |
11,487 |
10,657 |
10,433 |
Recapture of loan
losses |
(200) |
- |
- |
|
|
|
|
Net interest income
after recapture of loan losses |
11,687 |
10,657 |
10,433 |
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
Fees and
service charges |
1,755 |
1,431 |
1,407 |
Asset
management fees |
926 |
866 |
853 |
Net gain
on sale of loans held for sale |
152 |
119 |
225 |
Bank
owned life insurance |
179 |
201 |
207 |
Other,
net |
40 |
46 |
46 |
Total
non-interest income, net |
3,052 |
2,663 |
2,738 |
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
Salaries
and employee benefits |
5,578 |
5,687 |
5,422 |
Occupancy
and depreciation |
1,359 |
1,349 |
1,346 |
Data
processing |
631 |
583 |
616 |
Amortization of core deposit intangible |
46 |
58 |
58 |
Advertising and marketing |
192 |
120 |
234 |
FDIC
insurance premium |
76 |
87 |
145 |
State and
local taxes |
168 |
178 |
154 |
Telecommunications |
93 |
108 |
104 |
Professional fees |
284 |
255 |
415 |
Other |
592 |
702 |
680 |
Total
non-interest expense |
9,019 |
9,127 |
9,174 |
|
|
|
|
INCOME BEFORE INCOME
TAXES |
5,720 |
4,193 |
3,997 |
PROVISION FOR INCOME
TAXES |
1,278 |
1,184 |
1,343 |
NET INCOME |
$ |
4,442 |
$ |
3,009 |
$ |
2,654 |
|
|
|
|
Earnings per common
share: |
|
|
|
Basic |
$ |
0.20 |
$ |
0.13 |
$ |
0.12 |
Diluted |
$ |
0.20 |
$ |
0.13 |
$ |
0.12 |
Weighted average number
of common shares outstanding: |
|
|
|
Basic |
22,570,179 |
22,565,483 |
22,504,852 |
Diluted |
22,651,732 |
22,639,908 |
22,589,440 |
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands) |
|
At or for the three months ended |
|
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
interest–earning assets |
|
$ |
1,048,573 |
|
$ |
1,043,755 |
|
$ |
1,023,196 |
Average
interest-bearing liabilities |
|
726,065 |
|
735,592 |
|
745,172 |
Net average earning
assets |
|
322,508 |
|
308,163 |
|
278,024 |
Average loans |
|
812,977 |
|
802,275 |
|
786,317 |
Average deposits |
|
971,652 |
|
969,916 |
|
961,421 |
Average equity |
|
118,976 |
|
117,495 |
|
113,661 |
Average tangible equity
(non-GAAP) |
|
90,814 |
|
89,282 |
|
85,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
|
|
|
|
|
|
Non-performing
loans |
|
$ |
2,344 |
|
$ |
2,418 |
|
$ |
2,792 |
Non-performing loans to
total loans |
|
0.28% |
|
0.30% |
|
0.35% |
Real estate/repossessed
assets owned |
|
$ |
- |
|
$ |
298 |
|
$ |
298 |
Non-performing
assets |
|
$ |
2,344 |
|
$ |
2,716 |
|
$ |
3,090 |
Non-performing assets
to total assets |
|
0.21% |
|
0.24% |
|
0.27% |
Net loan charge-offs
(recoveries) in the quarter |
|
$ |
(783) |
|
$ |
101 |
|
$ |
(69) |
Net charge-offs
(recoveries) in the quarter/average net loans |
|
(0.39)% |
|
0.05% |
|
(0.04)% |
|
|
|
|
|
|
|
Allowance for loan
losses |
|
$ |
11,349 |
|
$ |
10,766 |
|
$ |
10,597 |
Average
interest-earning assets to average interest-bearing
liabilities |
|
144.42% |
|
141.89% |
|
137.31% |
Allowance for
loan losses to non-performing loans |
|
484.17% |
|
445.24% |
|
379.55% |
Allowance for loan
losses to total loans |
|
1.37% |
|
1.33% |
|
1.33% |
Shareholders’ equity to
assets |
|
10.51% |
|
10.15% |
|
10.12% |
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
Total capital (to risk
weighted assets) |
|
15.59% |
|
15.41% |
|
14.41% |
Tier 1 capital (to risk
weighted assets) |
|
14.33% |
|
14.16% |
|
13.16% |
Common equity tier 1
(to risk weighted assets) |
|
14.33% |
|
14.16% |
|
13.16% |
Tier 1 capital (to
average tangible assets) |
|
10.46% |
|
10.26% |
|
9.79% |
Tangible common equity
(to average tangible assets) (non-GAAP) |
|
8.24% |
|
7.90% |
|
7.80% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX |
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
|
|
|
|
|
|
Interest checking |
|
$ |
184,286 |
|
$ |
192,989 |
|
$ |
171,360 |
Regular savings |
|
136,368 |
|
134,931 |
|
126,704 |
Money market deposit
accounts |
|
259,340 |
|
265,661 |
|
274,537 |
Non-interest
checking |
|
288,890 |
|
278,966 |
|
258,223 |
Certificates of
deposit |
|
113,466 |
|
123,144 |
|
142,659 |
Total deposits |
|
$ |
982,350 |
|
$ |
995,691 |
|
$ |
973,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
Commercial |
|
Real Estate |
|
Real Estate |
|
& Construction |
|
|
Business |
|
Mortgage |
|
Construction |
|
Total |
June 30, 2018 |
|
(Dollars in thousands) |
Commercial
business |
|
$ |
148,257 |
|
$ |
- |
|
$ |
- |
|
$ |
148,257 |
Commercial
construction |
|
- |
|
- |
|
37,365 |
|
37,365 |
Office buildings |
|
- |
|
121,758 |
|
- |
|
121,758 |
Warehouse/industrial |
|
- |
|
88,488 |
|
- |
|
88,488 |
Retail/shopping
centers/strip malls |
|
- |
|
67,972 |
|
- |
|
67,972 |
Assisted living
facilities |
|
- |
|
2,887 |
|
- |
|
2,887 |
Single purpose
facilities |
|
- |
|
166,914 |
|
- |
|
166,914 |
Land |
|
- |
|
17,304 |
|
- |
|
17,304 |
Multi-family |
|
- |
|
58,794 |
|
- |
|
58,794 |
One-to-four family
construction |
|
- |
|
- |
|
15,791 |
|
15,791 |
Total |
|
$ |
148,257 |
|
$ |
524,117 |
|
$ |
53,156 |
|
$ |
725,530 |
|
|
|
|
|
|
|
|
|
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 |
|
June 30, 2018 |
|
March 31, 2018 |
|
June 30, 2017 |
|
|
|
|
(Dollars in Thousands) |
|
|
Commercial and
construction |
|
|
|
|
|
|
|
|
Commercial
business |
|
$ |
148,257 |
|
$ |
137,672 |
|
$ |
125,732 |
|
|
Other real
estate mortgage |
|
524,117 |
|
529,014 |
|
513,360 |
|
|
Real estate
construction |
|
53,156 |
|
39,584 |
|
43,186 |
|
|
Total commercial and construction |
|
725,530 |
|
706,270 |
|
682,278 |
|
|
Consumer |
|
|
|
|
|
|
|
|
Real estate
one-to-four family |
|
88,212 |
|
90,109 |
|
91,898 |
|
|
Other
installment |
|
12,844 |
|
14,997 |
|
23,334 |
|
|
Total
consumer |
|
101,056 |
|
105,106 |
|
115,232 |
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
826,586 |
|
811,376 |
|
797,510 |
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
Allowance for
loan losses |
|
11,349 |
|
10,766 |
|
10,597 |
|
|
Loans
receivable, net |
|
$ |
815,237 |
|
$ |
800,610 |
|
$ |
786,913 |
|
|
|
|
|
|
|
|
|
|
|
DETAIL
OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
Southwest |
|
|
|
|
|
|
|
|
Oregon |
|
Washington |
|
Other |
|
Total |
June 30, 2018 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
business |
|
$ |
- |
|
$ |
173 |
|
$ |
- |
|
$ 173 |
|
Commercial
real estate |
|
970 |
|
197 |
|
- |
|
1,167 |
|
Land |
|
751 |
|
- |
|
- |
|
751 |
|
Consumer |
|
- |
|
175 |
|
78 |
|
253 |
|
Total
non-performing loans |
|
1,721 |
|
545 |
|
78 |
|
2,344 |
|
|
|
|
|
|
|
|
|
|
|
|
REO |
|
- |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing assets |
|
$ |
1,721 |
|
$ |
545 |
|
$ |
78 |
|
$ |
2,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL
OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Total |
June 30, 2018 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Land
development |
|
$ |
203 |
|
$ |
861 |
|
$ |
16,240 |
|
$ |
17,304 |
|
Speculative
construction |
|
873 |
|
- |
|
12,526 |
|
13,399 |
|
|
|
|
|
|
|
|
|
|
|
|
Total land
development and speculative construction |
|
$ |
1,076 |
|
$ |
861 |
|
$ |
28,766 |
|
$ |
30,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three months ended |
SELECTED OPERATING
DATA |
June 30, 2018 |
March 31, 2018 |
June 30, 2017 |
|
|
|
|
Efficiency ratio
(4) |
62.03% |
68.52% |
69.65% |
Coverage ratio (6) |
127.36% |
116.76% |
113.72% |
Return on average
assets (1) |
1.57% |
1.08% |
0.96% |
Return on average
equity (1) |
14.98% |
10.39% |
9.37% |
|
|
|
|
NET INTEREST
SPREAD |
|
|
|
Yield on loans |
5.32% |
5.00% |
4.99% |
Yield on investment
securities |
2.31% |
2.32% |
2.21% |
Total yield on
interest-earning assets |
4.63% |
4.37% |
4.32% |
|
|
|
|
Cost of
interest-bearing deposits |
0.15% |
0.16% |
0.18% |
Cost of FHLB advances
and other borrowings |
4.37% |
3.99% |
3.69% |
Total cost of
interest-bearing liabilities |
0.34% |
0.32% |
0.32% |
|
|
|
|
Spread (7) |
4.29% |
4.05% |
4.00% |
Net interest
margin |
4.40% |
4.14% |
4.09% |
|
|
|
|
PER SHARE DATA |
|
|
|
Basic earnings per
share (2) |
$ |
0.20 |
$ |
0.13 |
$ |
0.12 |
Diluted earnings per
share (3) |
0.20 |
0.13 |
0.12 |
Book value per share
(5) |
5.31 |
5.18 |
5.06 |
Tangible book value per
share (5) (non-GAAP) |
4.06 |
3.93 |
3.80 |
Market price per
share: |
|
|
|
High for the
period |
$ |
9.52 |
$ |
9.68 |
$ |
7.47 |
Low for the
period |
8.39 |
8.45 |
6.51 |
Close for period
end |
8.44 |
9.34 |
6.64 |
Cash dividends declared
per share |
0.0350 |
0.0300 |
0.0225 |
|
|
|
|
Average number of
shares outstanding: |
|
|
|
Basic (2) |
22,570,179 |
22,565,483 |
22,504,852 |
Diluted (3) |
22,651,732 |
22,639,908 |
22,589,440 |
|
|
|
|
|
|
|
|
(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
Riverview Bancorp, Inc. 360-693-6650
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