Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today reported earnings of $1.5 million, or $0.07 per
diluted share, in the third fiscal quarter ended December 31, 2023,
compared to $2.5 million, or $0.12 per diluted share, in the second
fiscal quarter ended September 30, 2023, and $5.2 million, or $0.24
per diluted share, in the third fiscal quarter a year ago.
In the first nine months of fiscal 2024, net
income was $6.8 million, or $0.32 per diluted share, compared to
$15.1 million, or $0.69 per diluted share, in the first nine months
of fiscal 2023.
“We finished the third fiscal quarter of 2024 on
solid footing, although the challenging interest rate environment
continues to impact net interest income growth with higher interest
expense on deposits and borrowings, which affected our operating
performance,” stated Dan Cox, Chief Operating Officer, Acting
President and Chief Executive Officer. “Quarterly loan growth has
moderated, as we remain selective with the loans we are putting on
the balance sheet. Additionally, credit quality metrics remain very
stable. We are going into the last quarter of our fiscal year with
an abundance of caution, as we remain committed to protecting our
liquidity and capital position.”
Third Quarter Highlights (at or for the
period ended December 31, 2023)
- Net income was $1.5 million, or
$0.07 per diluted share.
- Net interest income was $9.3
million for the quarter, compared to $9.9 million in the preceding
quarter and $13.7 million in the third fiscal quarter a year
ago.
- Net interest margin (“NIM”) was 2.49% for the quarter, compared
to 2.63% in the preceding quarter and 3.48% for the year ago
quarter.
- Return on average assets was 0.37% and return on average equity
was 3.75%.
- Asset quality remained strong, with
non-performing assets at $186,000, or 0.01% of total assets at
December 31, 2023.
- Riverview recorded no provision for
credit losses during the current quarter, the preceding quarter, or
during the year ago quarter.
- The allowance for credit losses was
$15.4 million, or 1.51% of total loans.
- Total loans were $1.02 billion at
December 31, 2023, September 30, 2023, and at December 31,
2022.
- Total deposits were $1.22 billion,
compared to $1.24 billion three months earlier and $1.37 billion a
year earlier.
- Riverview has approximately $263.0
million in available liquidity at December 31, 2023, including
$137.8 million of borrowing capacity from Federal Home Loan Bank of
Des Moines (“FHLB”) and $125.2 million from the Federal Reserve
Bank of San Francisco (“FRB”). Riverview has access to but has yet
to utilize the Federal Reserve Bank’s Bank Term Funding Program
("BTFP"). At December 31, 2023, the Bank had $157.1 million in
outstanding FHLB borrowings.
- The uninsured deposit ratio was
28.4% at December 31, 2023.
- Total risk-based capital ratio was
16.67% and Tier 1 leverage ratio was 10.53%.
- Paid a quarterly cash dividend
during the quarter of $0.06 per share.
Income Statement Review
Riverview’s net interest income was $9.3 million
in the current quarter, compared to $9.9 million in the preceding
quarter, and $13.7 million in the third fiscal quarter a year ago.
The decrease in net interest income compared to the prior quarter
was driven primarily by an increase in interest expense on deposits
and borrowings due to higher interest rates. In the first nine
months of fiscal 2024, net interest income was $29.5 million,
compared to $39.8 million in the first nine months of fiscal
2023.
Riverview’s NIM was 2.49% for the third quarter
of fiscal 2024, a 14 basis-point decrease compared to 2.63% in the
preceding quarter and a 99 basis-point decrease compared to 3.48%
in the third quarter of fiscal 2023. “We experienced NIM
contraction again during the current quarter, compared to the prior
quarter and year ago quarter, as a result of increased interest
expense due to higher rates on our deposit products and the
interest expense related to our borrowings,” said David Lam, EVP
and Chief Financial Officer. In the first nine months of fiscal
2024, the net interest margin was 2.64% compared to 3.30% in the
same period a year earlier.
Investment securities totaled $429.1 million at
December 31, 2023, compared to $430.0 million at September 30,
2023, and $458.9 million at December 31, 2022. The average
securities balances for the quarters ended December 31, 2023,
September 30, 2023, and December 31, 2022, were $458.0 million,
$466.0 million, and $491.2 million, respectively. The weighted
average yields on securities balances for those same periods were
2.01%, 2.00%, and 2.01%, respectively. The duration of the
investment portfolio at December 31, 2023 was approximately 4.8
years. The anticipated investment cashflows over the next twelve
months is approximately $50.5 million.
Riverview’s yield on loans improved to 4.56%
during the third fiscal quarter, compared to 4.51% in the preceding
quarter, and 4.50% in the third fiscal quarter a year ago. While
loan yields improved during the current quarter, they remain under
pressure due to the concentration of fixed-rate loans in the
Company’s portfolio. Deposit costs increased to 0.68% during the
third fiscal quarter compared to 0.59% in the preceding quarter,
and 0.08% in the third fiscal quarter a year ago.
Non-interest income decreased to $3.1 million
during the third fiscal quarter compared to $3.4 million in the
preceding quarter and increased when compared to $3.0 million in
the third fiscal quarter of 2023. The decrease during the current
quarter, compared to the immediate prior quarter, was due to lower
fees and service charges from a decrease in fintech referral
partnership income. In the first nine months of fiscal 2024,
non-interest income increased 5.7% to $9.7 million compared to $9.2
million in the same period a year ago.
Asset management fees were $1.3 million during
the third fiscal quarter, which were unchanged compared to the
preceding quarter, and an increase compared to $1.1 million in the
third fiscal quarter a year ago. Riverview Trust Company’s assets
under management were $942.4 million at December 31, 2023, compared
to $875.7 million at September 30, 2023 and $855.9 million at
December 31, 2022.
Non-interest expense was $10.6 million during
the third quarter, compared to $10.1 million in the preceding
quarter and $9.8 million in the third fiscal quarter a year ago.
Salary and employee benefits were up during the current quarter
compared to the preceding quarter, when salary and employee
benefits were lower as a result of a one-time reversal of certain
equity incentives. Occupancy and depreciation costs increased
during the quarter due to updates and modernization of Riverview’s
facilities. The efficiency ratio was 85.2% for the third fiscal
quarter compared to 76.1% in the preceding quarter and 59.1% in the
third fiscal quarter a year ago. Year-to-date, non-interest expense
was $30.6 million compared to $29.4 million in the first nine
months of fiscal 2023.
Return on average assets was 0.37% in the third
quarter of fiscal 2024 compared to 0.62% in the preceding quarter.
Return on average equity and return on average tangible equity
(non-GAAP) were 3.75% and 4.57%, respectively, compared to 6.33%
and 7.68%, respectively, for the prior quarter.
Riverview’s effective tax rate for the third
quarter of fiscal 2024 was 20.6%, compared to 22.0% for the
preceding quarter and 23.1% for the year ago quarter.
Balance Sheet Review
Total loans remained flat at $1.02 billion at
December 31, 2023, compared to three months earlier and a year
earlier. Riverview’s loan pipeline was $29.3 million at December
31, 2023, compared to $62.7 million at the end of the prior
quarter. New loan originations during the quarter totaled $51.3
million, compared to $39.5 million in the preceding quarter and
$28.9 million in the third quarter a year ago.
Undisbursed construction loans totaled $63.1
million at December 31, 2023, compared to $49.9 million at
September 30, 2023, with the majority of the undisbursed
construction loans expected to fund over the next several quarters.
Undisbursed homeowner association loans for the purpose of common
area maintenance and repairs totaled $20.7 million at
December 31, 2023, compared to $16.9 million at September 30,
2023. Revolving commercial business loan commitments totaled $50.4
million at December 31, 2023, compared to $62.2 million three
months earlier. Utilization on these loans totaled 11.3% at
December 31, 2023, compared to 23.4% at September 30, 2023. The
weighted average rate on loan originations during the quarter was
7.14% compared to 7.06% in the preceding quarter.
The office building loan portfolio totaled
$115.6 million at December 31, 2023 compared to $117.0 million at
September 30, 2023. The average loan balance of this loan portfolio
was $1.5 million and had an average loan-to-value ratio of 55.4%
and an average debt service coverage ratio of 2.0x.
Total deposits decreased to $1.22 billion at
December 31, 2023, compared to $1.24 billion at September 30, 2023,
and $1.37 billion a year ago. The decrease during the current
quarter was attributed to year end distributions, as well as
customers using up deposit balances instead of borrowing due to the
rate environment. Non-interest checking and interest checking
accounts, as a percentage of total deposits, totaled 51.1% at
December 31, 2023, compared to 49.5% at September 30, 2023 and
54.8% at December 31, 2022.
FHLB advances were $157.1 million at December
31, 2023 and were comprised of overnight advances and a short-term
borrowing. This compared to $143.2 million at September 30, 2023
and $32.3 million a year earlier. These FHLB advances were utilized
to partially offset the decrease in deposit balances and to fund
the increase in loans receivable. The BTFP was created by the
Federal Reserve to support and make additional funding available to
eligible depository institutions to help banks meet the needs of
their depositors. Riverview has registered and is eligible to
utilize the BTFP. Riverview does not intend to utilize the BTFP,
but could do so should the need arise.
Shareholders’ equity was $158.5 million at
December 31, 2023, compared to $152.0 million three months earlier
and one year earlier. Tangible book value per share (non-GAAP) was
$6.21 at December 31, 2023, compared to $5.90 at September 30,
2023, and $5.79 at December 31, 2022. Riverview paid a quarterly
cash dividend of $0.06 per share on January 16, 2024, to
shareholders of record on January 5, 2024.
Credit Quality
In accordance with changes in generally accepted
accounting principles, Riverview adopted the new credit loss
accounting standard known as Current Expected Credit Loss (“CECL”)
on April 1, 2023. Under CECL, the ACL is based on expected credit
losses rather than on incurred losses. Adoption of CECL, which
includes the ACL and allowance for unfunded loan commitments,
resulted in a cumulative effect after-tax adjustment to
stockholders’ equity as of April 1, 2023, of $53,000, which had no
impact on earnings.
Asset quality remained stable, with
non-performing loans, excluding SBA and USDA government guaranteed
loans (“government guaranteed loans”) (non-GAAP), at $186,000 or
0.02% of total loans as of December 31, 2023, compared to $198,000,
or 0.02% of total loans at September 30, 2023, and $236,000, or
0.02% of total loans at December 31, 2022. There were no
non-performing government guaranteed loans at December 31, 2023 or
at September 30, 2023. At December 31, 2022, including government
guaranteed loans, non-performing assets were $12.6 million, or
0.79% of total assets. Previously, there were non-performing
government guaranteed loans where payments had been delayed due to
the servicing transfer of these loans between two third-party
servicers and the service transfer has been completed.
Riverview recorded net loan recoveries of
$15,000 during the third fiscal quarter. This compared to net loan
recoveries of $3,000 for the preceding quarter. Riverview recorded
no provision for credit losses for the third fiscal quarter, or for
the preceding quarter.
Classified assets decreased to $215,000 at
December 31, 2023, compared to $1.1 million at September 30, 2023
and $6.2 million at December 31, 2022. The classified asset to
total capital ratio was 0.1% at December 31, 2023, compared to 0.6%
at September 30, 2023 and 3.5% a year earlier. Criticized assets
increased to $37.2 million at December 31, 2023, compared to $35.1
million at September 30, 2023 and $3.5 million at December 31,
2022. The increase in criticized assets during the current quarter
was mainly due to one relationship downgrade that had plans in
place to payoff outstanding loans or meet certain loan covenants,
which was partially offset by some existing criticized loan
payoffs. The Company does not believe this is a systemic credit
issue.
The allowance for credit losses was $15.4
million at December 31, 2023, compared to $15.3 million at
September 30, 2023, and $14.6 million one year earlier. The
allowance for credit losses represented 1.51% of total loans at
December 31, 2023 and at September 30, 2023, compared to 1.43%
a year earlier. The allowance for credit losses to loans, net of
government guaranteed loans (non-GAAP), was 1.59% at December 31,
2023, compared to 1.60% at September 30, 2023, and 1.52% a year
earlier.
Capital
Riverview continues to maintain capital levels
well in excess of the regulatory requirements to be categorized as
“well capitalized” with a total risk-based capital ratio of 16.67%
and a Tier 1 leverage ratio of 10.53% at December 31, 2023.
Tangible common equity to average tangible assets ratio (non-GAAP)
was 8.39% at December 31, 2023.
Stock Repurchase Program
In November 2022, Riverview announced that its
Board of Directors authorized the repurchase of up to $2.5 million
of the Company’s outstanding shares in the open market, based on
prevailing market prices, or in privately negotiated transactions,
over a period beginning on November 28, 2022, and continuing until
the earlier of the completion of the repurchase or May 28, 2023,
depending upon market conditions. During the first fiscal quarter
of fiscal year 2024, the Company repurchased 109,162 shares at an
average price of $5.29 per share. As of May 5, 2023, Riverview had
completed the full $2.5 million authorized, repurchasing 394,334
shares at an average price of $6.34 per share.
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. Management
has presented these non-GAAP financial measures in this earnings
release because it believes that they provide useful and
comparative information to assess trends in Riverview's core
operations reflected in the current quarter's results and
facilitate the comparison of our performance with the performance
of our peers. However, these non-GAAP financial measures are
supplemental and are not a substitute for any analysis based on
GAAP. Where applicable, comparable earnings information using GAAP
financial measures is also presented. Because not all companies use
the same calculations, our presentation may not be comparable to
other similarly titled measures as calculated by other companies.
For a reconciliation of these non-GAAP financial measures, see the
tables below.
| |
|
|
|
|
|
|
|
|
|
|
| Tangible
shareholders' equity to tangible assets and tangible book value per
share: |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (Dollars in thousands) |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
March 31, 2023 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Shareholders' equity
(GAAP) |
|
$ |
158,472 |
|
|
$ |
152,039 |
|
|
$ |
152,025 |
|
|
$ |
155,239 |
|
|
|
|
Exclude: Goodwill |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
Exclude: Core deposit intangible, net |
|
|
(298 |
) |
|
|
(325 |
) |
|
|
(408 |
) |
|
|
(379 |
) |
|
|
|
Tangible shareholders' equity (non-GAAP) |
|
$ |
131,098 |
|
|
$ |
124,638 |
|
|
$ |
124,541 |
|
|
$ |
127,784 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Total assets (GAAP) |
|
$ |
1,590,623 |
|
|
$ |
1,583,733 |
|
|
$ |
1,598,734 |
|
|
$ |
1,589,712 |
|
|
|
|
Exclude: Goodwill |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
Exclude: Core deposit intangible, net |
|
|
(298 |
) |
|
|
(325 |
) |
|
|
(408 |
) |
|
|
(379 |
) |
|
|
| Tangible assets
(non-GAAP) |
|
$ |
1,563,249 |
|
|
$ |
1,556,332 |
|
|
$ |
1,571,250 |
|
|
$ |
1,562,257 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Shareholders' equity to total
assets (GAAP) |
|
|
9.96 |
% |
|
|
9.60 |
% |
|
|
9.51 |
% |
|
|
9.77 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Tangible common equity to
tangible assets (non-GAAP) |
|
|
8.39 |
% |
|
|
8.01 |
% |
|
|
7.93 |
% |
|
|
8.18 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Shares outstanding |
|
|
21,111,043 |
|
|
|
21,125,889 |
|
|
|
21,496,335 |
|
|
|
22,221,960 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Book value per share
(GAAP) |
|
$ |
7.51 |
|
|
$ |
7.20 |
|
|
$ |
7.07 |
|
|
$ |
7.32 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Tangible book value per share
(non-GAAP) |
|
$ |
6.21 |
|
|
$ |
5.90 |
|
|
$ |
5.79 |
|
|
$ |
6.02 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Pre-tax, pre-provision
income |
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Nine Months Ended |
| (Dollars in thousands) |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
| |
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
1,452 |
|
|
$ |
2,472 |
|
|
$ |
5,240 |
|
|
$ |
6,767 |
|
|
$ |
15,086 |
|
|
Include: Provision for income taxes |
|
|
377 |
|
|
|
697 |
|
|
|
1,575 |
|
|
|
1,897 |
|
|
|
4,508 |
|
|
Include: Provision for credit losses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Pre-tax, pre-provision income (non-GAAP) |
|
$ |
1,829 |
|
|
$ |
3,169 |
|
|
$ |
6,815 |
|
|
$ |
8,664 |
|
|
$ |
19,594 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance
for credit losses reconciliation, excluding Government Guaranteed
loans |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (Dollars in thousands) |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
March 31, 2023 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for credit
losses |
|
$ |
15,361 |
|
|
$ |
15,346 |
|
|
$ |
14,558 |
|
|
$ |
15,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans receivable (GAAP) |
|
$ |
1,018,199 |
|
|
$ |
1,015,625 |
|
|
$ |
1,016,513 |
|
|
$ |
1,008,856 |
|
|
|
|
Exclude: Government Guaranteed loans |
|
|
(51,809 |
) |
|
|
(53,572 |
) |
|
|
(57,102 |
) |
|
|
(55,488 |
) |
|
|
| Loans receivable excluding
Government Guaranteed loans (non-GAAP) |
|
$ |
966,390 |
|
|
$ |
962,053 |
|
|
$ |
959,411 |
|
|
$ |
953,368 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses to
loans receivable (GAAP) |
|
|
1.51 |
% |
|
|
1.51 |
% |
|
|
1.43 |
% |
|
|
1.52 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses to
loans receivable excluding Government Guaranteed loans
(non-GAAP) |
|
|
1.59 |
% |
|
|
1.60 |
% |
|
|
1.52 |
% |
|
|
1.61 |
% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans reconciliation, excluding Government
Guaranteed Loans |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
|
|
| (Dollars in thousands) |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-performing loans
(GAAP) |
|
$ |
186 |
|
|
$ |
198 |
|
|
$ |
12,613 |
|
|
|
|
|
| Less: Non-performing
Government Guaranteed loans |
|
|
- |
|
|
|
- |
|
|
|
(12,377 |
) |
|
|
|
|
|
Adjusted non-performing loans excluding Government Guaranteed loans
(non-GAAP) |
|
$ |
186 |
|
|
$ |
198 |
|
|
$ |
236 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-performing loans to total
loans (GAAP) |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
1.24 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-performing loans,
excluding Government Guaranteed loans to total loans
(non-GAAP) |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-performing loans to total
assets (GAAP) |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.79 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-performing loans,
excluding Government Guaranteed loans to total assets
(non-GAAP) |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
|
|
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 $1.59 billion at
December 31, 2023, it is the parent company of the 100-year-old
Riverview 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 17 branches, including 13 in the Portland-Vancouver
area, and 3 lending centers. For the past 10 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 which include statements with
respect to our beliefs, plans, objectives, goals, expectations,
assumptions, future economic performance and projections of
financial items. These forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that could
cause actual results to differ materially from the results
anticipated or implied by our forward-looking statements,
including, but not limited to: potential adverse impacts to
economic conditions in our local market areas, other markets where
the Company has lending relationships, or other aspects of the
Company's business operations or financial markets, including,
without limitation, as a result of employment levels, labor
shortages and the effects of inflation, a potential recession, the
failure of the U.S. Congress to increase the debt ceiling, or
slowed economic growth caused by increasing political instability
from acts of war including Russia’s invasion of Ukraine, as well as
supply chain disruptions, recent bank failures and any governmental
or societal responses thereto; 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 credit losses and provision for credit losses that may be
impacted by deterioration in the housing and commercial real estate
markets; 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; the transition away from London Interbank Offered
Rate toward new interest rate benchmarks; 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 originate loans for sale and sell loans in the
secondary market; results of examinations of the Bank by the
Federal Deposit Insurance Corporation and the Washington State
Department of Financial Institutions, Division of Banks, and of the
Company by the Board of Governors of the Federal Reserve System, or
other regulatory authorities, including the possibility that any
such regulatory authority may, among other things, require the
Company to increase its allowance for credit losses, write-down
assets, reclassify its assets, change the 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
banking, securities and tax law, and in regulatory policies and
principles, or the interpretation of regulatory capital or other
rules; the Company’s ability to attract and retain deposits; the
unexpected outflow of uninsured deposits that may require us to
sell investment securities at a loss; 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 consolidated 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; disruptions, security
breaches or other adverse events, failures or interruptions in or
attacks on our information technology systems or on the third-party
vendors who perform several of our critical processing functions;
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 implement its
business strategies; the Company's ability to successfully
integrate any assets, liabilities, customers, systems, and
management personnel it may acquire into its operations and the
Company's ability to realize related revenue synergies and cost
savings within expected time frames; future goodwill impairment due
to changes in Riverview’s business, changes in market conditions,
or other factors; 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; the
quality and composition of our securities portfolio and the impact
of and adverse changes in the securities markets, including market
liquidity; 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 standards; the effects of climate
change, severe weather events, natural disasters, pandemics,
epidemics and other public health crises, acts of war or terrorism,
and other external events on our business; and 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 reports
filed with and furnished to the U.S. Securities and Exchange
Commission.
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 included in
this report or the reasons why actual results could differ from
those contained in such statements, whether as a result of new
information or 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
2024 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 consolidated financial condition
and consolidated results of operations as well as its stock price
performance.
| |
| RIVERVIEW BANCORP,
INC. AND SUBSIDIARY |
|
| Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
(In thousands, except share
data)
(Unaudited) |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
March 31, 2023 |
| ASSETS |
|
| |
|
|
Cash (including interest-earning accounts of $23,717, $18,147, |
$ |
37,553 |
|
|
$ |
30,853 |
|
|
$ |
24,337 |
|
|
$ |
22,044 |
|
|
$8,897 and $10,397) |
|
|
|
|
|
|
|
|
Certificate of deposits held for investment |
|
- |
|
|
|
- |
|
|
|
249 |
|
|
|
249 |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
Available for sale, at estimated fair value |
|
196,461 |
|
|
|
193,984 |
|
|
|
211,706 |
|
|
|
211,499 |
|
|
Held to maturity, at amortized cost |
|
232,659 |
|
|
|
236,018 |
|
|
|
247,147 |
|
|
|
243,843 |
|
|
Loans receivable (net of allowance for credit losses of
$15,361, |
|
|
|
|
|
|
|
|
$15,346, $14,558, and $15,309) |
|
1,002,838 |
|
|
|
1,000,279 |
|
|
|
1,001,955 |
|
|
|
993,547 |
|
|
Prepaid expenses and other assets |
|
14,486 |
|
|
|
14,481 |
|
|
|
12,546 |
|
|
|
15,950 |
|
|
Accrued interest receivable |
|
5,248 |
|
|
|
4,882 |
|
|
|
5,727 |
|
|
|
4,790 |
|
|
Federal Home Loan Bank stock, at cost |
|
8,026 |
|
|
|
7,643 |
|
|
|
3,309 |
|
|
|
6,867 |
|
|
Premises and equipment, net |
|
22,270 |
|
|
|
22,707 |
|
|
|
20,220 |
|
|
|
20,119 |
|
|
Financing lease right-of-use assets |
|
1,221 |
|
|
|
1,240 |
|
|
|
1,298 |
|
|
|
1,278 |
|
|
Deferred income taxes, net |
|
10,033 |
|
|
|
12,002 |
|
|
|
11,166 |
|
|
|
10,286 |
|
|
Goodwill |
|
27,076 |
|
|
|
27,076 |
|
|
|
27,076 |
|
|
|
27,076 |
|
|
Core deposit intangible, net |
|
298 |
|
|
|
325 |
|
|
|
408 |
|
|
|
379 |
|
|
Bank owned life insurance |
|
32,454 |
|
|
|
32,243 |
|
|
|
31,590 |
|
|
|
31,785 |
|
| |
|
|
|
|
|
|
|
| TOTAL ASSETS |
$ |
1,590,623 |
|
|
$ |
1,583,733 |
|
|
$ |
1,598,734 |
|
|
$ |
1,589,712 |
|
| |
|
|
|
|
|
|
|
| LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
Deposits |
$ |
1,218,892 |
|
|
$ |
1,239,766 |
|
|
$ |
1,365,997 |
|
|
$ |
1,265,217 |
|
|
Accrued expenses and other liabilities |
|
26,740 |
|
|
|
18,735 |
|
|
|
18,966 |
|
|
|
15,730 |
|
|
Advance payments by borrowers for taxes and insurance |
|
299 |
|
|
|
878 |
|
|
|
343 |
|
|
|
625 |
|
|
Junior subordinated debentures |
|
26,982 |
|
|
|
26,961 |
|
|
|
26,896 |
|
|
|
26,918 |
|
|
Federal Home Loan Bank advances |
|
157,054 |
|
|
|
143,154 |
|
|
|
32,264 |
|
|
|
123,754 |
|
|
Finance lease liability |
|
2,184 |
|
|
|
2,200 |
|
|
|
2,243 |
|
|
|
2,229 |
|
|
Total liabilities |
|
1,432,151 |
|
|
|
1,431,694 |
|
|
|
1,446,709 |
|
|
|
1,434,473 |
|
| |
|
|
|
|
|
|
|
| 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, 2023 – 21,111,043 issued and outstanding; |
|
|
|
|
|
|
|
|
September 30, 2023 – 21,125,889 issued and outstanding; |
|
211 |
|
|
|
211 |
|
|
|
214 |
|
|
|
212 |
|
|
December 31, 2022 – 21,496,335 issued and outstanding; |
|
|
|
|
|
|
|
|
March 31, 2023 – 21,221,960 issued and outstanding; |
|
|
|
|
|
|
|
|
Additional paid-in capital |
|
54,982 |
|
|
|
54,963 |
|
|
|
57,252 |
|
|
|
55,511 |
|
|
Retained earnings |
|
120,734 |
|
|
|
120,556 |
|
|
|
116,117 |
|
|
|
117,826 |
|
|
Accumulated other comprehensive loss |
|
(17,455 |
) |
|
|
(23,691 |
) |
|
|
(21,558 |
) |
|
|
(18,310 |
) |
|
Total shareholders’ equity |
|
158,472 |
|
|
|
152,039 |
|
|
|
152,025 |
|
|
|
155,239 |
|
| |
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
1,590,623 |
|
|
$ |
1,583,733 |
|
|
$ |
1,598,734 |
|
|
$ |
1,589,712 |
|
| |
| RIVERVIEW BANCORP,
INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
| Consolidated
Statements of Income |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
(In thousands, except share
data)
(Unaudited) |
Dec. 31, 2023 |
Sept. 30, 2023 |
Dec. 31, 2022 |
|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
| INTEREST INCOME: |
|
|
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
11,645 |
$ |
11,433 |
$ |
11,531 |
|
$ |
34,288 |
$ |
33,496 |
|
|
Interest on investment securities - taxable |
|
2,231 |
|
2,261 |
|
2,397 |
|
|
6,826 |
|
6,403 |
|
|
Interest on investment securities - nontaxable |
|
65 |
|
65 |
|
66 |
|
|
196 |
|
197 |
|
|
Other interest and dividends |
|
331 |
|
276 |
|
449 |
|
|
954 |
|
1,629 |
|
|
Total interest and dividend income |
|
14,272 |
|
14,035 |
|
14,443 |
|
|
42,264 |
|
41,725 |
|
| |
|
|
|
|
|
|
|
| INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
Interest on deposits |
|
2,059 |
|
1,832 |
|
289 |
|
|
5,264 |
|
897 |
|
|
Interest on borrowings |
|
2,889 |
|
2,352 |
|
454 |
|
|
7,466 |
|
1,036 |
|
|
Total interest expense |
|
4,948 |
|
4,184 |
|
743 |
|
|
12,730 |
|
1,933 |
|
| Net interest income |
|
9,324 |
|
9,851 |
|
13,700 |
|
|
29,534 |
|
39,792 |
|
| Provision for credit
losses |
|
- |
|
- |
|
- |
|
|
- |
|
- |
|
| |
|
|
|
|
|
|
|
| Net interest income after
provision for credit losses |
|
9,324 |
|
9,851 |
|
13,700 |
|
|
29,534 |
|
39,792 |
|
| |
|
|
|
|
|
|
|
| NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
Fees and service charges |
|
1,533 |
|
1,738 |
|
1,502 |
|
|
4,871 |
|
4,903 |
|
|
Asset management fees |
|
1,266 |
|
1,273 |
|
1,137 |
|
|
3,920 |
|
3,459 |
|
|
Bank owned life insurance ("BOLI") |
|
211 |
|
258 |
|
194 |
|
|
669 |
|
626 |
|
|
Other, net |
|
46 |
|
138 |
|
130 |
|
|
288 |
|
235 |
|
|
Total non-interest income, net |
|
3,056 |
|
3,407 |
|
2,963 |
|
|
9,748 |
|
9,223 |
|
| |
|
|
|
|
|
|
|
| NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
6,091 |
|
5,845 |
|
5,982 |
|
|
17,979 |
|
17,819 |
|
|
Occupancy and depreciation |
|
1,698 |
|
1,649 |
|
1,536 |
|
|
4,930 |
|
4,600 |
|
|
Data processing |
|
712 |
|
710 |
|
705 |
|
|
2,096 |
|
2,184 |
|
|
Amortization of core deposit intangible |
|
27 |
|
27 |
|
29 |
|
|
81 |
|
87 |
|
|
Advertising and marketing |
|
282 |
|
355 |
|
202 |
|
|
950 |
|
694 |
|
|
FDIC insurance premium |
|
178 |
|
175 |
|
116 |
|
|
530 |
|
351 |
|
|
State and local taxes |
|
355 |
|
233 |
|
225 |
|
|
814 |
|
634 |
|
|
Telecommunications |
|
56 |
|
52 |
|
48 |
|
|
161 |
|
153 |
|
|
Professional fees |
|
353 |
|
265 |
|
343 |
|
|
961 |
|
924 |
|
|
Other |
|
799 |
|
778 |
|
662 |
|
|
2,116 |
|
1,975 |
|
|
Total non-interest expense |
|
10,551 |
|
10,089 |
|
9,848 |
|
|
30,618 |
|
29,421 |
|
|
|
|
|
|
|
|
|
|
| INCOME BEFORE INCOME
TAXES |
|
1,829 |
|
3,169 |
|
6,815 |
|
|
8,664 |
|
19,594 |
|
| PROVISION FOR INCOME
TAXES |
|
377 |
|
697 |
|
1,575 |
|
|
1,897 |
|
4,508 |
|
| NET INCOME |
$ |
1,452 |
$ |
2,472 |
$ |
5,240 |
|
$ |
6,767 |
$ |
15,086 |
|
| |
|
|
|
|
|
|
|
| Earnings per common
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.07 |
$ |
0.12 |
$ |
0.24 |
|
$ |
0.32 |
$ |
0.69 |
|
|
Diluted |
$ |
0.07 |
$ |
0.12 |
$ |
0.24 |
|
$ |
0.32 |
$ |
0.69 |
|
| Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
21,113,464 |
|
21,190,987 |
|
21,504,903 |
|
|
21,146,888 |
|
21,717,959 |
|
|
Diluted |
|
21,113,464 |
|
21,191,309 |
|
21,513,617 |
|
|
21,148,679 |
|
21,726,552 |
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
At or for the three months ended |
|
At or for the nine months ended |
|
|
|
|
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2022 |
|
Dec. 31, 2023 |
|
Dec. 31, 2022 |
|
| AVERAGE
BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest–earning assets |
|
$ |
1,494,341 |
|
|
$ |
1,492,805 |
|
|
$ |
1,564,143 |
|
|
$ |
1,494,443 |
|
$ |
1,605,166 |
|
| Average interest-bearing
liabilities |
|
|
1,028,817 |
|
|
|
1,022,044 |
|
|
|
986,198 |
|
|
|
1,021,532 |
|
|
1,023,944 |
|
| Net average earning
assets |
|
|
465,524 |
|
|
|
470,761 |
|
|
|
577,945 |
|
|
|
472,911 |
|
|
581,222 |
|
| Average loans |
|
|
1,015,741 |
|
|
|
1,008,363 |
|
|
|
1,017,214 |
|
|
|
1,008,429 |
|
|
1,005,104 |
|
| Average deposits |
|
|
1,209,524 |
|
|
|
1,245,382 |
|
|
|
1,445,049 |
|
|
|
1,235,032 |
|
|
1,488,404 |
|
| Average equity |
|
|
153,901 |
|
|
|
155,443 |
|
|
|
150,106 |
|
|
|
155,264 |
|
|
153,945 |
|
| Average tangible equity
(non-GAAP) |
|
|
126,511 |
|
|
|
128,026 |
|
|
|
122,606 |
|
|
|
127,847 |
|
|
126,417 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ASSET
QUALITY |
|
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2022 |
|
|
|
|
|
| |
|
|
|
|
|
| Non-performing loans |
|
$ |
186 |
|
|
$ |
198 |
|
|
$ |
12,613 |
|
|
|
|
|
|
| Non-performing loans excluding
SBA Government Guarantee (non-GAAP) |
|
|
186 |
|
|
|
198 |
|
|
|
236 |
|
|
|
|
|
|
| Non-performing loans to total
loans |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
1.24 |
% |
|
|
|
|
|
| Non-performing loans to total
loans excluding SBA Government Guarantee (non-GAAP) |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
|
|
|
| Real estate/repossessed assets
owned |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
| Non-performing assets |
|
$ |
186 |
|
|
$ |
198 |
|
|
$ |
12,613 |
|
|
|
|
|
|
| Non-performing assets
excluding SBA Government Guarantee (non-GAAP) |
|
|
186 |
|
|
|
198 |
|
|
|
236 |
|
|
|
|
|
|
| Non-performing assets to total
assets |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.79 |
% |
|
|
|
|
|
| Non-performing assets to total
assets excluding SBA Government Guarantee (non-GAAP) |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
|
|
|
| Net loan charge-offs
(recoveries) in the quarter |
|
$ |
(15 |
) |
|
$ |
(3 |
) |
|
$ |
(6 |
) |
|
|
|
|
|
| Net charge-offs (recoveries)
in the quarter/average net loans |
|
|
(0.01 |
)% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit
losses |
|
$ |
15,361 |
|
|
$ |
15,346 |
|
|
$ |
14,558 |
|
|
|
|
|
|
| Average interest-earning
assets to average |
|
|
|
|
|
|
|
|
|
|
|
| interest-bearing
liabilities |
|
|
145.25 |
% |
|
|
146.06 |
% |
|
|
158.60 |
% |
|
|
|
|
|
| Allowance for credit losses
to |
|
|
|
|
|
|
|
|
|
|
|
| non-performing loans |
|
|
8258.60 |
% |
|
|
7750.51 |
% |
|
|
115.42 |
% |
|
|
|
|
|
| Allowance for credit losses to
total loans |
|
|
1.51 |
% |
|
|
1.51 |
% |
|
|
1.43 |
% |
|
|
|
|
|
| Shareholders’ equity to
assets |
|
|
9.96 |
% |
|
|
9.60 |
% |
|
|
9.51 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
| Total capital (to risk
weighted assets) |
|
|
16.67 |
% |
|
|
16.91 |
% |
|
|
16.71 |
% |
|
|
|
|
|
| Tier 1 capital (to risk
weighted assets) |
|
|
15.42 |
% |
|
|
15.66 |
% |
|
|
15.46 |
% |
|
|
|
|
|
| Common equity tier 1 (to risk
weighted assets) |
|
|
15.42 |
% |
|
|
15.66 |
% |
|
|
15.46 |
% |
|
|
|
|
|
| Tier 1 capital (to average
tangible assets) |
|
|
10.53 |
% |
|
|
10.74 |
% |
|
|
10.10 |
% |
|
|
|
|
|
| Tangible common equity (to
average tangible assets) (non-GAAP) |
|
|
8.39 |
% |
|
|
8.01 |
% |
|
|
7.93 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| DEPOSIT
MIX |
|
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2022 |
|
March 31, 2023 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest checking |
|
$ |
272,019 |
|
|
$ |
237,789 |
|
|
$ |
277,101 |
|
|
$ |
254,522 |
|
|
|
| Regular savings |
|
|
199,911 |
|
|
|
222,578 |
|
|
|
290,137 |
|
|
|
255,147 |
|
| Money market deposit
accounts |
|
|
225,727 |
|
|
|
249,580 |
|
|
|
240,849 |
|
|
|
221,778 |
|
|
|
| Non-interest checking |
|
|
350,744 |
|
|
|
375,780 |
|
|
|
471,776 |
|
|
|
404,937 |
|
|
|
| Certificates of deposit |
|
|
170,491 |
|
|
|
154,039 |
|
|
|
86,134 |
|
|
|
128,833 |
|
|
|
|
Total deposits |
|
$ |
1,218,892 |
|
|
$ |
1,239,766 |
|
|
$ |
1,365,997 |
|
|
$ |
1,265,217 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND
CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
|
|
Commercial |
|
Real Estate |
|
Real Estate |
|
& Construction |
|
|
|
|
Business |
|
Mortgage |
|
Construction |
|
Total |
|
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
Commercial business |
|
$ |
229,249 |
|
$ |
- |
|
$ |
- |
|
$ |
229,249 |
|
| Commercial construction |
|
|
- |
|
|
- |
|
|
26,396 |
|
|
26,396 |
|
| Office buildings |
|
|
- |
|
|
115,645 |
|
|
- |
|
|
115,645 |
|
| Warehouse/industrial |
|
|
- |
|
|
107,966 |
|
|
- |
|
|
107,966 |
|
| Retail/shopping centers/strip
malls |
|
|
- |
|
|
90,389 |
|
|
- |
|
|
90,389 |
|
| Assisted living
facilities |
|
|
- |
|
|
382 |
|
|
- |
|
|
382 |
|
| Single purpose facilities |
|
|
- |
|
|
258,693 |
|
|
- |
|
|
258,693 |
|
| Land |
|
|
- |
|
|
8,690 |
|
|
- |
|
|
8,690 |
|
| Multi-family |
|
|
- |
|
|
67,017 |
|
|
- |
|
|
67,017 |
|
| One-to-four family
construction |
|
|
- |
|
|
- |
|
|
15,771 |
|
|
15,771 |
|
| Total |
|
$ |
229,249 |
|
$ |
648,782 |
|
$ |
42,167 |
|
$ |
920,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
| Commercial business |
|
$ |
232,868 |
|
$ |
- |
|
$ |
- |
|
$ |
232,868 |
|
| Commercial construction |
|
|
- |
|
|
- |
|
|
29,565 |
|
|
29,565 |
|
| Office buildings |
|
|
- |
|
|
117,045 |
|
|
- |
|
|
117,045 |
|
| Warehouse/industrial |
|
|
- |
|
|
106,693 |
|
|
- |
|
|
106,693 |
|
| Retail/shopping centers/strip
malls |
|
|
- |
|
|
82,700 |
|
|
- |
|
|
82,700 |
|
| Assisted living
facilities |
|
|
- |
|
|
396 |
|
|
- |
|
|
396 |
|
| Single purpose facilities |
|
|
- |
|
|
257,662 |
|
|
- |
|
|
257,662 |
|
| Land |
|
|
- |
|
|
6,437 |
|
|
- |
|
|
6,437 |
|
| Multi-family |
|
|
- |
|
|
55,836 |
|
|
- |
|
|
55,836 |
|
| One-to-four family
construction |
|
|
- |
|
|
- |
|
|
18,197 |
|
|
18,197 |
|
| Total |
|
$ |
232,868 |
|
$ |
626,769 |
|
$ |
47,762 |
|
$ |
907,399 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| LOAN MIX |
|
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2022 |
|
March 31, 2023 |
|
| Commercial and
construction |
|
(Dollars in thousands) |
|
| Commercial business |
|
$ |
229,249 |
|
$ |
242,041 |
|
$ |
238,740 |
|
$ |
232,868 |
|
| Other real estate
mortgage |
|
|
648,782 |
|
|
624,606 |
|
|
623,818 |
|
|
626,769 |
|
| Real estate construction |
|
|
42,167 |
|
|
50,785 |
|
|
51,153 |
|
|
47,762 |
|
| Total commercial and
construction |
|
|
920,198 |
|
|
917,432 |
|
|
913,711 |
|
|
907,399 |
|
| Consumer |
|
|
|
|
|
|
|
|
|
| Real estate one-to-four
family |
|
|
96,266 |
|
|
96,351 |
|
|
101,122 |
|
|
99,673 |
|
| Other installment |
|
|
1,735 |
|
|
1,842 |
|
|
1,680 |
|
|
1,784 |
|
| Total consumer |
|
|
98,001 |
|
|
98,193 |
|
|
102,802 |
|
|
101,457 |
|
| |
|
|
|
|
|
|
|
|
|
| Total loans |
|
|
1,018,199 |
|
|
1,015,625 |
|
|
1,016,513 |
|
|
1,008,856 |
|
| |
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
| Allowance for credit
losses |
|
|
15,361 |
|
|
15,346 |
|
|
14,558 |
|
|
15,309 |
|
| Loans receivable, net |
|
$ |
1,002,838 |
|
$ |
1,000,279 |
|
$ |
1,001,955 |
|
$ |
993,547 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| DETAIL OF
NON-PERFORMING ASSETS |
|
|
|
|
| |
|
Southwest |
|
|
|
|
|
|
|
| |
Washington |
|
Total |
|
|
|
|
|
|
December 31, 2023 |
|
(Dollars in thousands) |
|
|
|
|
|
| Commercial business |
|
$ |
63 |
|
$ |
63 |
|
|
|
|
|
| Commercial real estate |
|
|
85 |
|
|
85 |
|
|
|
|
| Consumer |
|
|
38 |
|
|
38 |
|
|
|
|
| Total non-performing
assets |
|
$ |
186 |
|
$ |
186 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
At or for the three months ended |
|
At or for the nine months ended |
|
| SELECTED OPERATING DATA |
Dec. 31, 2023 |
|
Sept. 30, 2023 |
|
Dec. 31, 2022 |
|
Dec. 31, 2023 |
|
Dec. 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
85.23 |
% |
|
|
76.10 |
% |
|
|
59.10 |
% |
|
|
77.94 |
% |
|
|
60.02 |
% |
|
| Coverage ratio (6) |
|
88.37 |
% |
|
|
97.64 |
% |
|
|
139.11 |
% |
|
|
96.46 |
% |
|
|
135.25 |
% |
|
| Return on average assets
(1) |
|
0.37 |
% |
|
|
0.62 |
% |
|
|
1.27 |
% |
|
|
0.57 |
% |
|
|
1.19 |
% |
|
| Return on average equity
(1) |
|
3.75 |
% |
|
|
6.33 |
% |
|
|
13.85 |
% |
|
|
5.80 |
% |
|
|
13.01 |
% |
|
| Return on average tangible
equity (1) (non-GAAP) |
|
4.57 |
% |
|
|
7.68 |
% |
|
|
16.96 |
% |
|
|
7.04 |
% |
|
|
15.84 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| NET INTEREST SPREAD |
|
|
|
|
|
|
|
|
|
|
| Yield on loans |
|
4.56 |
% |
|
|
4.51 |
% |
|
|
4.50 |
% |
|
|
4.53 |
% |
|
|
4.42 |
% |
|
| Yield on investment
securities |
|
2.01 |
% |
|
|
2.00 |
% |
|
|
2.01 |
% |
|
|
2.02 |
% |
|
|
1.89 |
% |
|
| Total yield on
interest-earning assets |
|
3.81 |
% |
|
|
3.75 |
% |
|
|
3.67 |
% |
|
|
3.77 |
% |
|
|
3.46 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| Cost of interest-bearing
deposits |
|
0.98 |
% |
|
|
0.85 |
% |
|
|
0.12 |
% |
|
|
0.82 |
% |
|
|
0.12 |
% |
|
| Cost of FHLB advances and
other borrowings |
|
5.83 |
% |
|
|
5.84 |
% |
|
|
5.88 |
% |
|
|
5.77 |
% |
|
|
4.64 |
% |
|
| Total cost of interest-bearing
liabilities |
|
1.91 |
% |
|
|
1.63 |
% |
|
|
0.30 |
% |
|
|
1.66 |
% |
|
|
0.25 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| Spread (7) |
|
1.90 |
% |
|
|
2.12 |
% |
|
|
3.37 |
% |
|
|
2.11 |
% |
|
|
3.21 |
% |
|
| Net interest margin |
|
2.49 |
% |
|
|
2.63 |
% |
|
|
3.48 |
% |
|
|
2.64 |
% |
|
|
3.30 |
% |
|
| |
|
|
|
|
|
|
|
|
|
|
| PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share
(2) |
$ |
0.07 |
|
|
$ |
0.12 |
|
|
$ |
0.24 |
|
|
$ |
0.32 |
|
|
$ |
0.69 |
|
|
| Diluted earnings per share
(3) |
|
0.07 |
|
|
|
0.12 |
|
|
|
0.24 |
|
|
|
0.32 |
|
|
|
0.69 |
|
|
| Book value per share (5) |
|
7.51 |
|
|
|
7.20 |
|
|
|
7.07 |
|
|
|
7.51 |
|
|
|
7.07 |
|
|
| Tangible book value per share
(5) (non-GAAP) |
|
6.21 |
|
|
|
5.90 |
|
|
|
5.79 |
|
|
|
6.21 |
|
|
|
5.79 |
|
|
| Market price per share: |
|
|
|
|
|
|
|
|
|
|
| High for the period |
$ |
6.48 |
|
|
$ |
5.97 |
|
|
$ |
7.96 |
|
|
$ |
6.48 |
|
|
$ |
7.96 |
|
|
| Low for the period |
|
5.35 |
|
|
|
5.04 |
|
|
|
6.25 |
|
|
|
4.17 |
|
|
|
6.09 |
|
|
| Close for period end |
|
6.40 |
|
|
|
5.56 |
|
|
|
7.68 |
|
|
|
6.40 |
|
|
|
7.68 |
|
|
| Cash dividends declared per
share |
|
0.0600 |
|
|
|
0.0600 |
|
|
|
0.0600 |
|
|
|
0.1800 |
|
|
|
0.1800 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Average number of shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
| Basic (2) |
|
21,113,464 |
|
|
|
21,190,987 |
|
|
|
21,504,903 |
|
|
|
21,146,888 |
|
|
|
21,717,959 |
|
|
| Diluted (3) |
|
21,113,464 |
|
|
|
21,191,309 |
|
|
|
21,513,617 |
|
|
|
21,148,679 |
|
|
|
21,726,552 |
|
|
| |
|
|
|
|
|
|
|
|
(1) Amounts for the periods
shown 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: |
Dan Cox or David Lam |
|
|
Riverview Bancorp, Inc. 360-693-6650 |
Riverview Bancorp (NASDAQ:RVSB)
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