Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today announced earnings for the first fiscal quarter
ended June 30, 2019. For the first quarter, net income was $4.2
million, or $0.18 per diluted share, which was in line with the
operating results reported for the preceding quarter. Net income
was $4.4 million, or $0.20 per diluted share, in the first fiscal
quarter a year ago.
“We are pleased to report strong earnings for
the first quarter,” said Kevin Lycklama, president and chief
executive officer. “Our team executed well in the first quarter
generating great momentum in our core business lines. With our
healthy loan pipelines and sound financial condition, we are
confident that our solid operating results will continue in future
periods, and that we are well positioned to take advantage of
growth opportunities in our market in the upcoming year.”
First Quarter Highlights (at or for the
period ended June 30, 2019)
- Net income of $4.2 million, or
$0.18 per diluted share.
- Net interest margin (NIM) was 4.32%
for the quarter.
- Return on average assets of 1.46%
for the first quarter.
- Return on average equity of 12.34%
for the first quarter.
- Total loans were $888.0 million at
June 30, 2019, a 7.4% increase over $826.6 million a year ago.
- Cost of deposits remained low at
0.15% for the quarter compared to 0.10% for the preceding
quarter.
- Non-performing assets were 0.13% of
total assets.
- Total risk-based capital ratio was
17.18% and Tier 1 leverage ratio was 11.94%.
- Increased quarterly cash dividend
by 12.5% to $0.045 per share, generating a current dividend yield
of 2.16% based on the share price at close of market on July 12,
2019.
Income
Statement
Return on average assets was 1.46% in the first
quarter of fiscal year 2020 compared to 1.57% in the first fiscal
quarter of 2019. The return on average equity and average tangible
equity (non-GAAP) remained healthy at 12.34% and 15.52%,
respectively, compared to 14.98% and 19.62% for the first fiscal
quarter a year ago.
“Riverview continued to perform well, generating
another quarter of strong core earnings, solid loan growth,
excellent asset quality and strong capital levels,” stated
Lycklama.
Total revenues increased during the quarter to
$14.6 million compared to $14.5 million in both the prior quarter
and the year ago quarter. The increase was primarily driven by an
increase in total loans and an increase in our non-interest
income.
Net interest income for the quarter was $11.4
million compared to $11.5 million in both the preceding quarter and
in the first fiscal quarter a year ago. The decline in net interest
income compared to the preceding quarter was attributable to
increased funding costs.
Riverview’s first fiscal quarter net interest
margin was 4.32% compared to 4.39% in the prior quarter and 4.40%
in the first fiscal quarter a year ago. The quarter ended June 30,
2018 included 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 for that period. The
accretion on purchased loans totaled $108,000 during the current
quarter compared to $198,000 during the preceding quarter,
resulting in a four-basis point increase in the NIM for the current
period compared to a seven basis-point increase for the preceding
quarter.
“Higher deposit costs and a flatter yield curve
contributed to decrease in the net interest margin during the
quarter,” said David Lam, executive vice president and chief
financial officer. “While our loan yield remained relatively flat
compared to the prior quarter, we experienced an increase in our
funding costs due to higher interest rates as a result of the prior
Fed rate hikes.”
The weighted average rate on loans originated
during the quarter ended June 30, 2019 was 5.73% compared to 5.81%
for the quarter ended March 31, 2019 and 5.37% for the quarter
ended June 30, 2018.
Non-interest income increased to $3.2 million in
the first fiscal quarter compared to $3.0 million in the preceding
quarter. The improvement in non-interest income was primarily
driven by an increase in asset management fees. This increase was
offset by a decrease in fees and service charges which was a result
of a decrease in loan prepayment fees of $299,000 during the first
fiscal quarter compared to the preceding quarter. Net gains on sale
from loans held for sale also increased during the quarter, as a
result of a rise in mortgage originations sold in the secondary
market.
Asset management fees increased 23.4% compared
to the same quarter a year ago. During the first fiscal quarter,
asset management fees were $1.1 million compared to $987,000 in the
preceding quarter and $926,000 in the first fiscal quarter a year
ago. Riverview Trust Company’s assets under management increased
$119.6 million, or 20.8%, over the last twelve months. Assets under
management were $694.8 million at June 30, 2019 compared to $646.0
million three months earlier and $575.2 million one year
earlier.
Non-interest expense was $9.2 million during the
first fiscal quarter of 2020 compared to $9.0 million in the
preceding quarter. The increase in expenses were primarily centered
around a number of strategic initiatives to drive further growth,
expand customer relationships and improve profitability. The
addition of several new seasoned bankers to our lending teams drove
the increase in salaries and employee benefits. Additionally,
Riverview launched its new online mortgage origination platform
during the quarter and continued to expand its digital product
offerings which contributed to an increase in technology related
expenses during the current quarter. The Company will continue to
prudently manage its operating expenses in the current fiscal
year.
The efficiency ratio was 62.95% for the first
fiscal quarter compared to 61.63% in the preceding quarter and
62.03% in the first fiscal quarter a year ago.
For the first fiscal quarter of 2020, income tax
expense totaled $1.2 million, for an effective tax rate of 22.5%,
compared to 22.3% in the first fiscal quarter of 2019.
Balance Sheet Review
Riverview’s total loans increased $11.9 million
during the quarter, a 5.6% annualized increase, to $888.0 million
and increased $61.4 million, or 7.4%, when compared to $826.6
million a year ago. The growth during the quarter was mostly
concentrated in commercial business loans, commercial real estate
and commercial construction loans with a decrease in consumer
loans. While loan demand has remained strong, loan balances have
continued to be impacted by pay downs on existing loans.
The loan pipeline increased to $47.7 million at
June 30, 2019 compared to $38.2 million at the end of the prior
quarter. Undisbursed construction loans totaled $69.0 million at
June 30, 2019 compared to $63.0 million three months earlier. The
majority of the undisbursed construction loans are expected to fund
over the next several quarters.
“We experienced strong loan growth in our
commercial real estate portfolio during the first quarter,” noted
Lycklama. “Our strong loan pipelines reflect the strength of our
local markets and the opportunities for continued loan growth.
Total period-end loan balances exceeded our fourth quarter total
average loans by $10.6 million, providing solid momentum heading
into the second quarter.”
Total deposits were $922.3 million at June 30,
2019 compared to $925.1 million three months earlier. Deposit costs
increased five basis-points during the quarter to 0.15% due to
deposit pricing pressure and continued competition.
Shareholders’ equity improved to $138.7 million
at June 30, 2019 compared to $133.1 million three months earlier
and $119.8 million a year earlier. Tangible book value per share
(non-GAAP) increased to $4.88 at June 30, 2019 compared to $4.65 at
March 31, 2019 and $4.06 at June 30, 2018. Riverview increased its
quarterly cash dividend to $0.045 per share. The dividend was paid
on July 23, 2019 to shareholders of record on July 12, 2019.
Credit Quality
Riverview’s asset quality continues to improve,
with non-performing loans, non-performing assets and classified
assets all decreasing compared to a year ago. Riverview recorded no
provision for loan losses during the first fiscal quarter of 2020,
or in the linked quarter. In the first fiscal quarter a year ago,
Riverview recorded a recapture for loan losses of $200,000.
Non-performing loans decreased to $1.5 million,
or 0.16% of total loans, at June 30, 2019 compared to $2.3 million,
or 0.28% of total loans, at June 30, 2018. Riverview had no real
estate owned balances at June 30, 2019.
Net loan charge offs were $15,000 during the
first fiscal quarter of 2020 compared to $45,000 in the preceding
quarter. In the first fiscal quarter a year ago, Riverview had net
loan recoveries of $783,000 which was primarily due to the
collection of a prior charge off on a single loan.
Classified assets decreased to $6.0 million at
June 30, 2019 compared to $6.3 million at March 31, 2019 and $7.2
million at June 30, 2018. The classified asset to total capital
ratio was 4.1% at June 30, 2019 compared to 4.5% three months
earlier and 5.6% a year earlier.
At June 30, 2019, the allowance for loan losses
totaled $11.4 million compared to $11.5 million at March 31, 2019.
The allowance for loan losses represented 1.29% of total loans at
June 30, 2019 compared to 1.31% of total loans at the end of the
prior quarter. Included in the carrying value of loans are net
discounts on the MBank purchased loans which may reduce the need
for an allowance for loan losses on these loans because they are
carried at an amount below the outstanding principal balance. The
remaining net discount on these purchased loans was $1.4 million at
June 30, 2019 compared to $1.5 million at the end of the prior
quarter and $2.1 million at June 30, 2018.
Capital
Riverview continues to maintain capital levels
well in excess of the regulatory requirements to be categorized as
“well capitalized” with a total risk-based capital ratio of 17.18%
and a Tier 1 leverage ratio of 11.94% at June 30, 2019. The
Company’s tangible common equity to average tangible assets ratio
(non-GAAP) increased to 9.73% at June 30, 2019.
Non-GAAP Financial
Measures
In addition to results presented in accordance
with generally accepted accounting principles (“GAAP”), this press
release contains certain non-GAAP financial measures. We believe
that certain non-GAAP financial measures provide investors with
information useful in understanding the Company’s financial
performance; however, readers of this report are urged to review
these non-GAAP financial measures in conjunction with GAAP results
as reported.
Financial measures that exclude intangible
assets are non-GAAP measures. To provide investors with a broader
understanding of capital adequacy, Riverview provides non-GAAP
financial measures for tangible common equity, along with the GAAP
measure. Tangible shareholders’ equity is calculated as
shareholders’ equity less goodwill and other intangible assets. In
addition, tangible assets are total assets less goodwill and other
intangible assets. We calculate tangible book value per share by
dividing tangible shareholders’ equity by the number of common
shares outstanding. This non-GAAP financial measure has inherent
limitations, is not required to be uniformly applied and is not
audited. Further, the non-GAAP financial measure should not be
considered in isolation or as a substitute for book value per share
or total shareholders' equity determined in accordance with GAAP
and may not be comparable to similarly titled measures reported by
other companies. Reconciliations of the GAAP and non-GAAP financial
measures are presented below.
|
|
|
|
|
|
|
(Dollars in thousands) |
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
|
|
|
|
|
|
|
Shareholders' equity |
|
$ |
138,663 |
|
$ |
133,122 |
|
$ |
119,828 |
Goodwill |
|
|
27,076 |
|
|
27,076 |
|
|
27,076 |
Core deposit intangible, net |
|
|
880 |
|
|
920 |
|
|
1,057 |
|
|
|
|
|
|
|
|
|
|
Tangible shareholders' equity |
|
$ |
110,707 |
|
$ |
105,126 |
|
$ |
91,695 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,165,234 |
|
$ |
1,156,921 |
|
$ |
1,140,268 |
Goodwill |
|
|
27,076 |
|
|
27,076 |
|
|
27,076 |
Core deposit intangible, net |
|
|
880 |
|
|
920 |
|
|
1,057 |
Tangible assets |
|
$ |
1,137,278 |
|
$ |
1,128,925 |
|
$ |
1,112,135 |
|
|
|
|
|
|
|
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 $1.17 billion at June
30, 2019, it is the parent company of the 96-year-old Riverview
Community Bank, as well as Riverview Trust Company. The Bank offers
true community banking services, focusing on providing the highest
quality service and financial products to commercial and retail
clients. There are 18 branches, including 14 in the
Portland-Vancouver area and three lending centers. For the past 6
years, Riverview has been named Best Bank by the readers of The
Vancouver Business Journal, The Columbian and The Gresham
Outlook.
“Safe Harbor” statement under the Private
Securities Litigation Reform Act of 1995: This press release
contains forward-looking statements that are subject to risks and
uncertainties, including, but not limited to: the Company’s ability
to raise common capital; the credit risks of lending activities,
including changes in the level and trend of loan delinquencies and
write-offs and changes in the Company’s allowance for loan losses
and provision for loan losses that may be impacted by deterioration
in the housing and commercial real estate markets; changes in
general economic conditions, either nationally or in the Company’s
market areas; changes in the levels of general interest rates, and
the relative differences between short and long term interest
rates, deposit interest rates, the Company’s net interest margin
and funding sources; fluctuations in the demand for loans, the
number of unsold homes, land and other properties and fluctuations
in real estate values in the Company’s market areas; secondary
market conditions for loans and the Company’s ability to sell loans
in the secondary market; results of examinations of us by the
Office of Comptroller of the Currency or other regulatory
authorities, including the possibility that any such regulatory
authority may, among other things, require us to increase the
Company’s reserve for loan losses, write-down assets, change
Riverview Community Bank’s regulatory capital position or affect
the Company’s ability to borrow funds or maintain or increase
deposits, which could adversely affect its liquidity and earnings;
legislative or regulatory changes that adversely affect the
Company’s business including changes in regulatory policies and
principles, or the interpretation of regulatory capital or other
rules; the Company’s ability to attract and retain deposits;
further increases in premiums for deposit insurance; the Company’s
ability to control operating costs and expenses; the use of
estimates in determining fair value of certain of the Company’s
assets, which estimates may prove to be incorrect and result in
significant declines in valuation; difficulties in reducing risks
associated with the loans on the Company’s balance sheet; staffing
fluctuations in response to product demand or the implementation of
corporate strategies that affect the Company’s workforce and
potential associated charges; computer systems on which the Company
depends could fail or experience a security breach; the Company’s
ability to retain key members of its senior management team; costs
and effects of litigation, including settlements and judgments; the
Company’s ability to successfully integrate any assets,
liabilities, customers, systems, and management personnel it may in
the future acquire into its operations and the Company’s ability to
realize related revenue synergies and cost savings within expected
time frames and any goodwill charges related thereto; increased
competitive pressures among financial services companies; changes
in consumer spending, borrowing and savings habits; the
availability of resources to address changes in laws, rules, or
regulations or to respond to regulatory actions; the Company’s
ability to pay dividends on its common stock; and interest or
principal payments on its junior subordinated debentures; adverse
changes in the securities markets; inability of key third-party
providers to perform their obligations to us; changes in accounting
policies and practices, as may be adopted by the financial
institution regulatory agencies or the Financial Accounting
Standards Board, including additional guidance and interpretation
on accounting issues and details of the implementation of new
accounting methods; other economic, competitive, governmental,
regulatory, and technological factors affecting the Company’s
operations, pricing, products and services and the other risks
described from time to time in our filings with the SEC.
Such forward-looking statements may include
projections. Any such projections were not prepared in accordance
with published guidelines of the American Institute of Certified
Public Accountants or the Securities Exchange Commission regarding
projections and forecasts nor have such projections been audited,
examined or otherwise reviewed by independent auditors of the
Company. In addition, such projections are based upon many
estimates and inherently subject to significant economic and
competitive uncertainties and contingencies, many of which are
beyond the control of management of the Company. Accordingly,
actual results may be materially higher or lower than those
projected. The inclusion of such projections herein should not be
regarded as a representation by the Company that the projections
will prove to be correct.
The Company cautions readers not to place undue
reliance on any forward-looking statements. Moreover, you should
treat these statements as speaking only as of the date they are
made and based only on information then actually known to the
Company. The Company does not undertake and specifically disclaims
any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or
circumstances after the date of such statements. These risks could
cause our actual results for fiscal 2020 and beyond to differ
materially from those expressed in any forward-looking statements
by, or on behalf of, us, and could negatively affect the Company’s
operating and stock price performance.
|
RIVERVIEW BANCORP,
INC. AND SUBSIDIARY |
|
Consolidated Balance
Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share
data)
(Unaudited) |
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
ASSETS |
|
|
|
Cash (including interest-earning accounts of $6,852, $5,844 |
$ |
24,112 |
|
|
$ |
22,950 |
|
|
$ |
33,268 |
|
and $15,791) |
|
|
|
|
|
Certificate of deposits held for investment |
|
747 |
|
|
|
747 |
|
|
|
4,971 |
|
Loans held for sale |
|
- |
|
|
|
909 |
|
|
|
- |
|
Investment securities: |
|
|
|
|
|
Available for sale, at estimated fair value |
|
170,762 |
|
|
|
178,226 |
|
|
|
200,100 |
|
Held to maturity, at amortized cost |
|
33 |
|
|
|
35 |
|
|
|
40 |
|
Loans receivable (net of allowance for loan losses of $11,442,
$11,457 |
|
|
|
|
|
and $11,349) |
|
876,535 |
|
|
|
864,659 |
|
|
|
815,237 |
|
Prepaid expenses and other assets |
|
8,705 |
|
|
|
4,596 |
|
|
|
3,759 |
|
Accrued interest receivable |
|
3,989 |
|
|
|
3,919 |
|
|
|
3,578 |
|
Federal Home Loan Bank stock, at cost |
|
3,658 |
|
|
|
3,644 |
|
|
|
1,353 |
|
Premises and equipment, net |
|
15,453 |
|
|
|
15,458 |
|
|
|
15,674 |
|
Deferred income taxes, net |
|
3,520 |
|
|
|
4,195 |
|
|
|
5,039 |
|
Mortgage servicing rights, net |
|
280 |
|
|
|
296 |
|
|
|
380 |
|
Goodwill |
|
27,076 |
|
|
|
27,076 |
|
|
|
27,076 |
|
Core deposit intangible, net |
|
880 |
|
|
|
920 |
|
|
|
1,057 |
|
Bank owned life insurance |
|
29,484 |
|
|
|
29,291 |
|
|
|
28,736 |
|
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,165,234 |
|
|
$ |
1,156,921 |
|
|
$ |
1,140,268 |
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits |
$ |
922,274 |
|
|
$ |
925,068 |
|
|
$ |
982,350 |
|
Accrued expenses and other liabilities |
|
17,675 |
|
|
|
12,536 |
|
|
|
8,579 |
|
Advance payments by borrowers for taxes and insurance |
|
689 |
|
|
|
631 |
|
|
|
580 |
|
Federal Home Loan Bank advances |
|
56,941 |
|
|
|
56,586 |
|
|
|
- |
|
Junior subordinated debentures |
|
26,597 |
|
|
|
26,575 |
|
|
|
26,507 |
|
Capital lease obligations |
|
2,395 |
|
|
|
2,403 |
|
|
|
2,424 |
|
Total liabilities |
|
1,026,571 |
|
|
|
1,023,799 |
|
|
|
1,020,440 |
|
|
|
|
|
|
|
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, 2019 – 22,705,385 issued and outstanding; |
|
|
|
|
|
March 31, 2019 – 22,607,712 issued and outstanding; |
|
226 |
|
|
|
226 |
|
|
|
226 |
|
June 30, 2018 – 22,570,179 issued and outstanding; |
|
|
|
|
|
Additional paid-in capital |
|
65,326 |
|
|
|
65,094 |
|
|
|
64,882 |
|
Retained earnings |
|
73,602 |
|
|
|
70,428 |
|
|
|
60,204 |
|
Accumulated other comprehensive loss |
|
(491 |
) |
|
|
(2,626 |
) |
|
|
(5,484 |
) |
Total shareholders’ equity |
|
138,663 |
|
|
|
133,122 |
|
|
|
119,828 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
$ |
1,165,234 |
|
|
$ |
1,156,921 |
|
|
$ |
1,140,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RIVERVIEW BANCORP,
INC. AND SUBSIDIARY |
|
|
|
Consolidated
Statements of Income |
|
|
|
|
Three Months Ended |
(In thousands, except share
data)
(Unaudited) |
June 30, 2019 |
March 31, 2019 |
June 30, 2018 |
INTEREST INCOME: |
|
Interest and fees on loans receivable |
$ |
11,514 |
$ |
11,338 |
$ |
10,777 |
|
Interest on investment securities - taxable |
|
878 |
|
1,032 |
|
1,198 |
|
Interest on investment securities - nontaxable |
|
37 |
|
36 |
|
37 |
|
Other interest and dividends |
|
87 |
|
58 |
|
93 |
|
Total interest and dividend income |
|
12,516 |
|
12,464 |
|
12,105 |
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
Interest on deposits |
|
351 |
|
237 |
|
260 |
|
Interest on borrowings |
|
735 |
|
693 |
|
358 |
|
Total interest expense |
|
1,086 |
|
930 |
|
618 |
|
Net interest income |
|
11,430 |
|
11,534 |
|
11,487 |
|
Provision for loan losses |
|
- |
|
- |
|
(200 |
) |
|
|
|
|
Net interest income after
provision for loan losses |
|
11,430 |
|
11,534 |
|
11,687 |
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
Fees and service charges |
|
1,677 |
|
1,743 |
|
1,755 |
|
Asset management fees |
|
1,143 |
|
987 |
|
926 |
|
Net gain on sale of loans held for sale |
|
96 |
|
39 |
|
152 |
|
Bank owned life insurance |
|
193 |
|
189 |
|
179 |
|
Other, net |
|
67 |
|
50 |
|
40 |
|
Total non-interest income, net |
|
3,176 |
|
3,008 |
|
3,052 |
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
Salaries and employee benefits |
|
5,715 |
|
5,665 |
|
5,578 |
|
Occupancy and depreciation |
|
1,320 |
|
1,318 |
|
1,359 |
|
Data processing |
|
680 |
|
593 |
|
631 |
|
Amortization of core deposit intangible |
|
40 |
|
46 |
|
46 |
|
Advertising and marketing |
|
210 |
|
160 |
|
192 |
|
FDIC insurance premium |
|
80 |
|
80 |
|
76 |
|
State and local taxes |
|
195 |
|
176 |
|
168 |
|
Telecommunications |
|
86 |
|
87 |
|
93 |
|
Professional fees |
|
325 |
|
306 |
|
284 |
|
Other |
|
543 |
|
531 |
|
592 |
|
Total non-interest expense |
|
9,194 |
|
8,962 |
|
9,019 |
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
|
5,412 |
|
5,580 |
|
5,720 |
|
PROVISION FOR INCOME
TAXES |
|
1,220 |
|
1,373 |
|
1,278 |
|
NET INCOME |
$ |
4,192 |
$ |
4,207 |
$ |
4,442 |
|
|
|
|
|
Earnings per common
share: |
|
|
|
Basic |
$ |
0.19 |
$ |
0.19 |
$ |
0.20 |
|
Diluted |
$ |
0.18 |
$ |
0.19 |
$ |
0.20 |
|
Weighted average number of
common shares outstanding: |
|
|
|
Basic |
|
22,619,580 |
|
22,605,012 |
|
22,570,179 |
|
Diluted |
|
22,685,343 |
|
22,663,997 |
|
22,651,732 |
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
At or for the three months ended |
|
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
AVERAGE
BALANCES |
|
|
|
|
|
|
Average interest–earning assets |
|
$ |
1,066,247 |
|
|
$ |
1,066,133 |
|
|
$ |
1,048,573 |
|
Average interest-bearing
liabilities |
|
|
728,976 |
|
|
|
723,805 |
|
|
|
726,065 |
|
Net average earning assets |
|
|
337,271 |
|
|
|
342,328 |
|
|
|
322,508 |
|
Average loans |
|
|
877,427 |
|
|
|
869,950 |
|
|
|
812,977 |
|
Average deposits |
|
|
920,558 |
|
|
|
929,219 |
|
|
|
971,652 |
|
Average equity |
|
|
136,592 |
|
|
|
131,400 |
|
|
|
118,976 |
|
Average tangible equity
(non-GAAP) |
|
|
108,614 |
|
|
|
103,378 |
|
|
|
90,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
1,457 |
|
|
$ |
1,519 |
|
|
$ |
2,344 |
|
Non-performing loans to total
loans |
|
|
0.16 |
% |
|
|
0.17 |
% |
|
|
0.28 |
% |
Real estate/repossessed assets
owned |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Non-performing assets |
|
$ |
1,457 |
|
|
$ |
1,519 |
|
|
$ |
2,344 |
|
Non-performing assets to total
assets |
|
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.21 |
% |
Net loan charge-offs (recoveries)
in the quarter |
|
$ |
15 |
|
|
$ |
45 |
|
|
$ |
(783 |
) |
Net charge-offs (recoveries) in
the quarter/average net loans |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
(0.39 |
)% |
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
11,442 |
|
|
$ |
11,457 |
|
|
$ |
11,349 |
|
Average interest-earning assets
to average |
|
|
|
|
|
|
interest-bearing liabilities |
|
|
146.27 |
% |
|
|
147.30 |
% |
|
|
144.42 |
% |
Allowance for loan losses to |
|
|
|
|
|
|
non-performing loans |
|
|
785.31 |
% |
|
|
754.25 |
% |
|
|
484.17 |
% |
Allowance for loan losses to
total loans |
|
|
1.29 |
% |
|
|
1.31 |
% |
|
|
1.37 |
% |
Shareholders’ equity to
assets |
|
|
11.90 |
% |
|
|
11.51 |
% |
|
|
10.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS |
|
|
|
|
|
|
Total capital (to risk weighted
assets) |
|
|
17.18 |
% |
|
|
16.88 |
% |
|
|
15.59 |
% |
Tier 1 capital (to risk weighted
assets) |
|
|
15.93 |
% |
|
|
15.63 |
% |
|
|
14.33 |
% |
Common equity tier 1 (to risk
weighted assets) |
|
|
15.93 |
% |
|
|
15.63 |
% |
|
|
14.33 |
% |
Tier 1 capital (to average
tangible assets) |
|
|
11.94 |
% |
|
|
11.56 |
% |
|
|
10.46 |
% |
Tangible common equity (to
average tangible assets) (non-GAAP) |
|
|
9.73 |
% |
|
|
9.31 |
% |
|
|
8.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
MIX |
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
|
|
|
|
|
|
|
Interest checking |
|
$ |
184,658 |
|
|
$ |
183,388 |
|
|
$ |
184,286 |
|
Regular savings |
|
|
160,937 |
|
|
|
137,503 |
|
|
|
136,368 |
|
Money market deposit
accounts |
|
|
205,881 |
|
|
|
233,317 |
|
|
|
259,340 |
|
Non-interest checking |
|
|
280,336 |
|
|
|
284,854 |
|
|
|
288,890 |
|
Certificates of deposit |
|
|
90,462 |
|
|
|
86,006 |
|
|
|
113,466 |
|
Total deposits |
|
$ |
922,274 |
|
|
$ |
925,068 |
|
|
$ |
982,350 |
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND
CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
Commercial |
|
Real Estate |
|
Real Estate |
|
& Construction |
|
|
Business |
|
Mortgage |
|
Construction |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 |
|
(Dollars in thousands) |
Commercial business |
|
$ |
164,400 |
|
$ |
- |
|
$ |
- |
|
$ |
164,400 |
Commercial construction |
|
|
- |
|
|
- |
|
|
73,252 |
|
|
73,252 |
Office buildings |
|
|
- |
|
|
115,279 |
|
|
- |
|
|
115,279 |
Warehouse/industrial |
|
|
- |
|
|
103,864 |
|
|
- |
|
|
103,864 |
Retail/shopping centers/strip
malls |
|
|
- |
|
|
64,989 |
|
|
- |
|
|
64,989 |
Assisted living facilities |
|
|
- |
|
|
1,159 |
|
|
- |
|
|
1,159 |
Single purpose facilities |
|
|
- |
|
|
187,082 |
|
|
- |
|
|
187,082 |
Land |
|
|
- |
|
|
16,362 |
|
|
- |
|
|
16,362 |
Multi-family |
|
|
- |
|
|
50,674 |
|
|
- |
|
|
50,674 |
One-to-four family
construction |
|
|
- |
|
|
- |
|
|
20,464 |
|
|
20,464 |
Total |
|
$ |
164,400 |
|
$ |
539,409 |
|
$ |
93,716 |
|
$ |
797,525 |
|
|
|
|
|
|
|
|
|
March 31, 2019 |
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
162,796 |
|
$ |
- |
|
$ |
- |
|
$ |
162,796 |
Commercial construction |
|
|
- |
|
|
- |
|
|
70,533 |
|
|
70,533 |
Office buildings |
|
|
- |
|
|
118,722 |
|
|
- |
|
|
118,722 |
Warehouse/industrial |
|
|
- |
|
|
91,787 |
|
|
- |
|
|
91,787 |
Retail/shopping centers/strip
malls |
|
|
- |
|
|
64,934 |
|
|
- |
|
|
64,934 |
Assisted living facilities |
|
|
- |
|
|
2,740 |
|
|
- |
|
|
2,740 |
Single purpose facilities |
|
|
- |
|
|
183,249 |
|
|
- |
|
|
183,249 |
Land |
|
|
- |
|
|
17,027 |
|
|
- |
|
|
17,027 |
Multi-family |
|
|
- |
|
|
51,570 |
|
|
- |
|
|
51,570 |
One-to-four family
construction |
|
|
- |
|
|
- |
|
|
20,349 |
|
|
20,349 |
Total |
|
$ |
162,796 |
|
$ |
530,029 |
|
$ |
90,882 |
|
$ |
783,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN MIX |
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
Commercial and construction |
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
164,400 |
|
$ |
162,796 |
|
$ |
148,257 |
|
|
Other real estate mortgage |
|
|
539,409 |
|
|
530,029 |
|
|
524,117 |
|
|
Real estate construction |
|
|
93,716 |
|
|
90,882 |
|
|
53,156 |
|
|
Total commercial and construction |
|
|
797,525 |
|
|
783,707 |
|
|
725,530 |
|
|
Consumer |
|
|
|
|
|
|
|
|
Real estate one-to-four family |
|
|
83,256 |
|
|
84,053 |
|
|
88,212 |
|
|
Other installment |
|
|
7,196 |
|
|
8,356 |
|
|
12,844 |
|
|
Total consumer |
|
|
90,452 |
|
|
92,409 |
|
|
101,056 |
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
887,977 |
|
|
876,116 |
|
|
826,586 |
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
11,442 |
|
|
11,457 |
|
|
11,349 |
|
|
Loans receivable, net |
|
$ |
876,535 |
|
$ |
864,659 |
|
$ |
815,237 |
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF
NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
|
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Other |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
52 |
|
$ |
- |
|
$ |
248 |
|
$ |
- |
|
$ |
300 |
|
Commercial real estate |
|
|
- |
|
|
869 |
|
|
180 |
|
|
- |
|
|
1,049 |
|
Consumer |
|
|
- |
|
|
- |
|
|
88 |
|
|
20 |
|
|
108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing assets |
|
$ |
52 |
|
$ |
869 |
|
$ |
516 |
|
$ |
20 |
|
$ |
1,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF
LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
|
Other |
|
Southwest |
|
|
|
|
|
|
|
Oregon |
|
Oregon |
|
Washington |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019 |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land development |
|
$ |
2,181 |
|
$ |
1,890 |
|
$ |
12,291 |
|
$ |
16,362 |
|
|
|
|
Speculative construction |
|
|
2,035 |
|
|
118 |
|
|
15,353 |
|
|
17,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total land development and speculative construction |
|
$ |
4,216 |
|
$ |
2,008 |
|
$ |
27,644 |
|
$ |
33,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three months
ended |
SELECTED OPERATING DATA |
June 30, 2019 |
March 31, 2019 |
June 30, 2018 |
|
|
|
|
Efficiency ratio (4) |
|
62.95 |
% |
|
61.63 |
% |
|
62.03 |
% |
Coverage ratio (6) |
|
124.32 |
% |
|
128.70 |
% |
|
127.36 |
% |
Return on average assets
(1) |
|
1.46 |
% |
|
1.49 |
% |
|
1.57 |
% |
Return on average equity
(1) |
|
12.34 |
% |
|
12.98 |
% |
|
14.98 |
% |
Return on average tangible
equity (1) (non-GAAP) |
|
15.52 |
% |
|
16.50 |
% |
|
19.62 |
% |
|
|
|
|
NET INTEREST SPREAD |
|
|
|
Yield on loans |
|
5.28 |
% |
|
5.29 |
% |
|
5.32 |
% |
Yield on investment
securities |
|
2.10 |
% |
|
2.37 |
% |
|
2.31 |
% |
Total yield on interest-earning assets |
|
4.73 |
% |
|
4.75 |
% |
|
4.63 |
% |
|
|
|
|
Cost of interest-bearing
deposits |
|
0.22 |
% |
|
0.15 |
% |
|
0.15 |
% |
Cost of FHLB advances and
other borrowings |
|
3.42 |
% |
|
3.60 |
% |
|
4.37 |
% |
Total cost of interest-bearing liabilities |
|
0.60 |
% |
|
0.52 |
% |
|
0.34 |
% |
|
|
|
|
Spread (7) |
|
4.13 |
% |
|
4.23 |
% |
|
4.29 |
% |
Net interest margin |
|
4.32 |
% |
|
4.39 |
% |
|
4.40 |
% |
|
|
|
|
PER SHARE DATA |
|
|
|
Basic earnings per share
(2) |
$ |
0.19 |
|
$ |
0.19 |
|
$ |
0.20 |
|
Diluted earnings per share
(3) |
|
0.18 |
|
|
0.19 |
|
|
0.20 |
|
Book value per share (5) |
|
6.11 |
|
|
5.89 |
|
|
5.31 |
|
Tangible book value per share
(5) (non-GAAP) |
|
4.88 |
|
|
4.65 |
|
|
4.06 |
|
Market price per share: |
|
|
|
High for the period |
$ |
8.54 |
|
$ |
8.04 |
|
$ |
9.52 |
|
Low for the period |
|
7.07 |
|
|
7.14 |
|
|
8.39 |
|
Close for period end |
|
8.54 |
|
|
7.31 |
|
|
8.44 |
|
Cash dividends declared per
share |
|
0.0450 |
|
|
0.0400 |
|
|
0.0350 |
|
|
|
|
|
Average number of shares
outstanding: |
|
|
|
Basic (2) |
|
22,619,580 |
|
|
22,605,012 |
|
|
22,570,179 |
|
Diluted (3) |
|
22,685,343 |
|
|
22,663,997 |
|
|
22,651,732 |
|
|
|
|
|
(1) Amounts for the quarterly periods are annualized.
(2) Amounts exclude ESOP shares not committed to be
released.
(3) Amounts exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income and
non-interest income.
(5) Amounts calculated based on shareholders’ equity and include
ESOP shares not committed to be released.
(6) Net interest income divided by non-interest expense.
(7) Yield on interest-earning assets less cost of funds on
interest-bearing liabilities.
Contact: Kevin Lycklama or David
Lam
Riverview Bancorp, Inc. 360-693-6650
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