Market Overview

Riverview Bancorp Reports Earnings of $4.1 Million in Third Quarter of Fiscal Year 2020, Highlighted by Strong Deposit Growth and Excellent Asset Quality

Share:

VANCOUVER, Wash., Jan. 23, 2020 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) ("Riverview" or the "Company") today reported earnings of $4.1 million, or $0.18 per diluted share for the third fiscal quarter ended December 31, 2019, compared to $4.5 million, or $0.20 per diluted share, in the preceding quarter, and $4.4 million, or $0.19 per diluted share, in the third fiscal quarter a year ago. For the first nine months of fiscal 2020, earnings were $12.9 million, or $0.57 per diluted share, compared to $13.1 million, or $0.58 per diluted share, in the first nine months of fiscal 2019.

"We continue to build our momentum, delivering strong financial results for the quarter," said Kevin Lycklama, president and chief executive officer. "Our reputation for excellent customer service, established by our team of dedicated bankers, continues to drive growth and our ability to attract new clients. We recently announced plans for three new locations in Clark County, Washington, which will be a terrific complement to our existing branch network. In addition to the fall opening of our new location in Ridgefield, we have two new branches  opening this summer in downtown Camas and in the Cascade Park neighborhood of Vancouver."

Third Quarter Highlights (at or for the period ended December 31, 2019)

  • Net income was $4.1 million, or $0.18 per diluted share.
  • Net interest margin (NIM) remained healthy at 4.23% for the quarter.
  • Return on average assets was 1.40% and return on average equity was 11.24% for the third quarter.
  • Total deposits increased $8.2 million during the quarter to $990.5 million.
  • Total loans increased $5.2 million during the quarter to $886.5 million.
  • Asset quality remains strong, with non-performing assets at 0.13% of total assets.
  • Total risk-based capital ratio was 17.66% and Tier 1 leverage ratio was 12.05%.
  • Increased its quarterly cash dividend to $0.05 per share, generating a current dividend yield of 2.66% based on the share price at close of market on January 14, 2020.

Income Statement

"We continue to strengthen our franchise, while remaining focused on containing operating expenses and maintaining high credit quality standards," said Lycklama. Riverview's return on average assets remained strong at 1.40% in the third quarter of fiscal year 2020 compared to 1.53% in the third quarter of fiscal 2019. Return on average equity and average tangible equity (non-GAAP) remained healthy at 11.24% and 13.89%, respectively, compared to 13.90% and 17.91% for the third fiscal quarter a year ago.

Total net revenues were $14.7 million during the quarter compared to $14.9 million in the prior quarter and $14.5 million in the year ago quarter. Year-to-date, total net revenues increased to $44.1 million from $43.6 million in the same period a year ago.

Net interest income for the quarter was $11.5 million compared to $11.7 million in both the preceding quarter and the third fiscal quarter a year ago. In the first nine months of fiscal 2020, net interest income was $34.7 million compared to $35.2 million in the first nine months of fiscal 2019. The decrease in net interest income for the nine months ended December 31, 2019 was primarily attributable to an increase in funding costs compared to the same prior year period in addition to $585,000 of non-accrual interest from a prior charged off loan that was collected during the nine months ended December 31, 2018.

Riverview's third fiscal quarter NIM was 4.23% compared to 4.36% in the prior quarter and 4.41% in the third fiscal quarter a year ago. The accretion on purchased loans totaled $219,000 during the current quarter compared to $78,000 during the preceding quarter and $172,000 in the same period a year ago, resulting in an eight basis point increase in the NIM for the current period compared to a two basis point increase for the preceding quarter and a seven basis point increase for the same period a year ago. Net fees on loan prepayments were $211,000 for the third fiscal quarter of 2020, which added eight basis points to the NIM compared to $112,000 adding four basis point to the NIM in the preceding quarter, and $15,000 adding one basis point to the NIM in the third fiscal quarter a year ago. In the first nine months of fiscal 2020, Riverview's NIM was 4.31% compared to 4.42% in the same period a year earlier. Net fees on loan prepayments were $355,000 for the nine-month period ended December 31, 2019, which added four basis points to the NIM compared to $297,000 adding three basis points to the NIM in the same nine-month period a year ago.

"Net interest margin remains healthy despite funding costs increasing by ten basis points during the quarter as a result of increased rates on certain deposit products to remain competitive in our market," said David Lam, executive vice president and chief financial officer. "We anticipate that the three recent decreases in the fed funds rate along with the heightened competition in our market will continue to put pressure on our loan and deposit pricing, as well as the rest of the banking industry."

Non-interest income was $3.2 million in the both the third and second fiscal quarters compared to $2.7 million in the third fiscal quarter a year ago. In the first nine months of fiscal 2020, non-interest income increased 12.2% to $9.5 million compared to $8.4 million in the same period a year ago. The improvement in non-interest income was primarily driven by service charges and asset management fees.

Asset management fees increased 21.5% compared to the same quarter a year ago. Asset management fees were $1.1 million during the third fiscal quarter compared to $935,000 in the third fiscal quarter a year ago. In the first nine months of fiscal 2020, asset management fees increased 20.1% to $3.4 million compared to $2.8 million in the first nine months of fiscal 2019. Riverview Trust Company's assets under management increased substantially to $1.2 billion at December 31, 2019 compared to $690.5 million three months earlier, due primarily to a single large client added during the quarter.

In the third quarter of fiscal 2020, non-interest expense increased to $9.2 million compared to $9.0 million in the preceding quarter. Year-to-date, non-interest expense was $27.4 million compared to $26.7 million in the first nine months of fiscal 2019. The increase is attributable to strategic growth initiatives that included investments in our digital product offerings, as well as the addition of several key hires during the current fiscal year. Additionally, the preceding quarter included an $81,000 gain on the disposal of an asset that was recorded in other non-interest expense and decreased overall expense in the second quarter of fiscal 2020. The efficiency ratio was 63.10% for the third fiscal quarter compared to 60.47% in the preceding quarter and 60.87% in the third fiscal quarter a year ago.

For the third fiscal quarter of 2020, income tax expense totaled $1.3 million, for an effective tax rate of 23.7% compared to 23.0% in the second fiscal quarter of 2020 and 22.5% in the third fiscal quarter of 2019.

Balance Sheet Review

Total deposits increased $8.2 million during the quarter to $990.5 million compared to $982.3 million three months earlier, and increased $46.9 million compared to $943.6 million a year earlier. Deposit costs increased to 0.38% during the third quarter compared to 0.28% in the preceding quarter, reflecting Riverview's efforts to remain competitive in its Northwest markets by increasing selective deposit rates.

"Deposit growth was strong compared to a year ago, which helped keep our FHLB borrowings at zero throughout the quarter," said Lam. "As a result, our loan to deposit ratio is at 89.5% at December 31, 2019 compared to 92.1% a year ago." A year ago outstanding FHLB advances were $34.5 million.

Riverview's total loans increased $5.2 million during the quarter to $886.5 million compared to $881.3 million three months earlier and increased $17.9 million compared to $868.6 million a year ago. Total loans continue to be impacted by an elevated level of paydowns on existing loans, however, the loan pipeline remained healthy at $64.5 million at December 31, 2019 compared to $43.8 million at the end of the prior quarter. Undisbursed construction loans totaled $36.0 million at December 31, 2019 compared to $53.3 million three months earlier, with the majority of the undisbursed construction loans expected to fund over the next several quarters.

Shareholders' equity increased to $145.8 million at December 31, 2019 compared to $143.1 million three months earlier and $128.1 million a year earlier. Tangible book value per share (non-GAAP) increased to $5.18 at December 31, 2019 compared to $5.06 at September 30, 2019 and $4.43 at December 31, 2018. Riverview paid a quarterly cash dividend of $0.05 per share on January 21, 2020 to shareholders of record on January 9, 2020.

Credit Quality

"Our asset quality remains excellent, with non-performing loans, non-performing assets and classified assets continuing to decrease compared to a year ago," said Lycklama. "Additionally, we continue to have no real estate owned and minimal charge-offs." As a result of the continued improvement in asset quality, Riverview recorded no provision for loan losses during the past five quarters. Non-performing loans totaled $1.5 million, or 0.17% of total loans, at December 31, 2019, which was unchanged compared to September 30, 2019. Non-performing loans totaled $1.6 million, or 0.19% of total loans at December 31, 2018.

Net loan charge offs were $3,000 during the third fiscal quarter of 2020 compared to $6,000 in the preceding quarter and $11,000 in the third fiscal quarter a year ago.

Classified assets decreased to $3.1 million at December 31, 2019 compared to $4.3 million at September 30, 2019 and $6.0 million at December 31, 2018. The classified asset to total capital ratio was 2.1% at December 31, 2019 compared to 3.0% three months earlier and 4.4% a year earlier.

At December 31, 2019, the allowance for loan losses totaled $11.4 million, which was unchanged compared to three months earlier. The allowance for loan losses represented 1.29% of total loans at December 31, 2019 compared to 1.30% three months earlier. Included in the carrying value of loans are net discounts on the MBank purchased loans, which may reduce the need for an allowance for loan losses on these loans because they are carried at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $1.1 million at December 31, 2019 compared to $1.3 million at September 30, 2019 and $1.7 million at December 31, 2018.

Capital

Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as "well capitalized" with a total risk-based capital ratio of 17.66% and a Tier 1 leverage ratio of 12.05% at December 31, 2019. Tangible common equity to average tangible assets ratio (non-GAAP) increased to 10.20% at December 31, 2019.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures. We believe that certain non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Riverview provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible shareholders' equity is calculated as shareholders' equity less goodwill and other intangible assets. In addition, tangible assets are total assets less goodwill and other intangible assets. We calculate tangible book value per share by dividing tangible shareholders' equity by the number of common shares outstanding. This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied and is not audited. Further, the non-GAAP financial measure should not be considered in isolation or as a substitute for book value per share or total shareholders' equity determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

               
(Dollars in thousands) December 31, 2019   September 30, 2019   December 31, 2018   March 31, 2019
               
Shareholders' equity $ 145,806   $ 143,119   $ 128,094   $ 133,122
Goodwill 27,076   27,076   27,076   27,076
Core deposit intangible, net 799   839   966   920
               
Tangible shareholders' equity $ 117,931   $ 115,204   $ 100,052   $ 105,126
               
Total assets $ 1,184,100   $ 1,173,019   $ 1,151,225   $ 1,156,921
Goodwill 27,076   27,076   27,076   27,076
Core deposit intangible, net 799   839   966   920
               
Tangible assets $ 1,156,225   $ 1,145,104   $ 1,123,183   $ 1,128,925
               

About Riverview

Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon, on the I-5 corridor. With assets of $1.18 billion at December 31, 2019, it is the parent company of the 96-year-old Riverview Community Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail clients through 18 branches, including 14 in the Portland-Vancouver area, and 3 lending centers. For the past 6 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, and The Columbian.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to: the Company's ability to raise common capital; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company's allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in general economic conditions, either nationally or in the Company's market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, the Company's net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company's market areas; secondary market conditions for loans and the Company's ability to sell loans in the secondary market; results of examinations of us by the Office of Comptroller of the Currency or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase the Company's reserve for loan losses, write-down assets, change Riverview Community Bank's regulatory capital position or affect the Company's ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; legislative or regulatory changes that adversely affect the Company's business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company's ability to attract and retain deposits; further increases in premiums for deposit insurance; the Company's ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company's assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company's balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company's workforce and potential associated charges; computer systems on which the Company depends could fail or experience a security breach; the Company's ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company's ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may in the future acquire into its operations and the Company's ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company's ability to pay dividends on its common stock; and interest or principal payments on its junior subordinated debentures; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; other economic, competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products and services and the other risks described from time to time in our filings with the SEC.

Such forward-looking statements may include projections. Any such projections were not prepared in accordance with published guidelines of the American Institute of Certified Public Accountants or the Securities Exchange Commission regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2020 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's operating and stock price performance.

                     
RIVERVIEW BANCORP, INC. AND SUBSIDIARY                    
Consolidated Balance Sheets                    
(In thousands, except share data)  (Unaudited) December 31, 2019     September 30, 2019   December 31, 2018     March 31, 2019  
ASSETS                    
                     
Cash (including interest-earning accounts of $48,781, $32,632, $ 62,123     $ 48,888   $ 23,394     $ 22,950  
$4,641 and $5,844)                    
Certificate of deposits held for investment 249     249   747     747  
Loans held for sale -     310   -     909  
Investment securities:                    
Available for sale, at estimated fair value 155,757     163,682   182,280     178,226  
Held to maturity, at amortized cost 29     31   36     35  
Loans receivable (net of allowance for loan losses of $11,433,                    
$11,436, $11,502, and $11,457) 875,100     869,880   857,134     864,659  
Prepaid expenses and other assets 8,330     8,136   4,021     4,596  
Accrued interest receivable 3,729     3,827   3,789     3,919  
Federal Home Loan Bank stock, at cost 1,380     1,380   2,735     3,644  
Premises and equipment, net 16,021     15,490   14,940     15,458  
Deferred income taxes, net 3,416     3,296   4,680     4,195  
Mortgage servicing rights, net 215     247   325     296  
Goodwill 27,076     27,076   27,076     27,076  
Core deposit intangible, net 799     839   966     920  
Bank owned life insurance 29,876     29,688   29,102     29,291  
                     
TOTAL ASSETS $ 1,184,100     $ 1,173,019   $ 1,151,225     $ 1,156,921  
                     
LIABILITIES AND SHAREHOLDERS' EQUITY                    
                     
LIABILITIES:                    
Deposits $ 990,464     $ 982,275   $ 943,578     $ 925,068  
Accrued expenses and other liabilities 18,483     17,502   15,855     12,536  
Advance payments by borrowers for taxes and insurance 329     1,117   192     631  
Federal Home Loan Bank advances -     -   34,543     56,586  
Junior subordinated debentures 26,640     26,619   26,553     26,575  
Capital lease obligations 2,378     2,387   2,410     2,403  
Total liabilities 1,038,294     1,029,900   1,023,131     1,023,799  
                     
SHAREHOLDERS' EQUITY:                    
Serial preferred stock, $.01 par value; 250,000 authorized, issued and outstanding, none -     -   -     -  
Common stock, $.01 par value; 50,000,000 authorized,                    
December 31, 2019 - 22,748,385 issued and outstanding;                    
September 30, 2019 - 22,748,385 issued and outstanding; 227     227   226     226  
December 31, 2018 - 22,598,712 issued and outstanding;                    
March 31, 2019 – 22,607,712 issued and outstanding;                    
Additional paid-in capital 65,637     65,559   65,056     65,094  
Retained earnings 80,103     77,112   67,126     70,428  
Accumulated other comprehensive income (loss) (161 )   221   (4,314 )   (2,626 )
Total shareholders' equity 145,806     143,119   128,094     133,122  
                     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,184,100     $ 1,173,019   $ 1,151,225     $ 1,156,921  
                     


RIVERVIEW BANCORP, INC. AND SUBSIDIARY           
Consolidated Statements of Income           
  Three Months Ended   Nine Months Ended
(In thousands, except share data)  (Unaudited) Dec. 31, 2019 Sept. 30, 2019 Dec. 31, 2018   Dec. 31, 2019 Dec. 31, 2018
INTEREST INCOME:            
Interest and fees on loans receivable $ 11,699 $ 11,893 $ 11,182   $ 35,146 $ 33,261
Interest on investment securities - taxable 851 860 1,110   2,589 3,424
Interest on investment securities - nontaxable 27 36 37   100 110
Other interest and dividends 189 93 60   369 271
Total interest and dividend income 12,766 12,882 12,389   38,204 37,066
             
INTEREST EXPENSE:            
Interest on deposits 942 660 240   1,953 759
Interest on borrowings 332 503 416   1,570 1,126
Total interest expense 1,274 1,163 656   3,523 1,885
Net interest income 11,492 11,719 11,733   34,681 35,181
Provision for loan losses - - -   - 50
             
Net interest income after provision for, recapture of, loan losses 11,492 11,719 11,733   34,681 35,131
             
NON-INTEREST INCOME:            
Fees and service charges 1,661 1,752 1,458   5,050 4,544
Asset management fees 1,136 1,090 935   3,369 2,804
Net gain on sale of loans held for sale 68 46 82   210 278
Bank owned life insurance 188 204 192   585 545
Other, net 110 77 62   254 267
Total non-interest income, net 3,163 3,169 2,729   9,468 8,438
             
NON-INTEREST EXPENSE:            
Salaries and employee benefits 5,941 5,697 5,794   17,353 16,655
Occupancy and depreciation 1,461 1,277 1,306   4,058 4,016
Data processing 637 669 621   1,986 1,874
Amortization of core deposit intangible 40 41 45   121 137
Advertising and marketing 181 298 151   689 609
FDIC insurance premium - - 85   81 246
State and local taxes 126 174 125   495 475
Telecommunications 84 76 85   246 266
Professional fees 267 263 449   855 1,120
Other 511 508 142   1,561 1,339
Total non-interest expense 9,248 9,003 8,803   27,445 26,737
             
INCOME BEFORE INCOME TAXES 5,407 5,885 5,659   16,704 16,832
PROVISION FOR INCOME TAXES 1,279 1,351 1,271   3,850 3,773
NET INCOME $ 4,128 $ 4,534 $ 4,388   $ 12,854 $ 13,059
             
Earnings per common share:            
Basic $ 0.18 $ 0.20 $ 0.19   $ 0.57 $ 0.58
Diluted $ 0.18 $ 0.20 $ 0.19   $ 0.57 $ 0.58
Weighted average number of common shares outstanding:            
Basic 22,665,712 22,643,103 22,598,712   22,642,883 22,582,956
Diluted 22,718,255 22,702,696 22,663,919   22,701,415 22,658,153
             



                   
(Dollars in thousands) At or for the three months ended
  At or for the nine months ended
  Dec. 31, 2019   Sept. 30, 2019   Dec. 31, 2018   Dec. 31, 2019   Dec. 31, 2018
AVERAGE BALANCES                  
Average interest–earning assets $ 1,082,229   $ 1,069,209   $ 1,057,199   $ 1,072,584   $ 1,056,750
Average interest-bearing liabilities 726,294   708,846   707,618   721,345   716,890
Net average earning assets 355,935   360,363   349,581   351,239   339,860
Average loans 878,656   889,208   854,368   881,779   835,697
Average deposits 987,056   952,283   967,246   953,418   975,295
Average equity 146,090   142,195   125,252   141,644   122,298
Average tangible equity (non-GAAP) 118,192   114,256   97,182   113,706   94,182
                   
                   
ASSET QUALITY Dec. 31, 2019   Sept. 30, 2019   Dec. 31, 2018        
                   
Non-performing loans $ 1,517   $ 1,485   $ 1,612        
Non-performing loans to total loans 0.17%   0.17%   0.19%        
Real estate/repossessed assets owned $ -   $ -   $ -        
Non-performing assets $ 1,517   $ 1,485   $ 1,612        
Non-performing assets to total assets 0.13%   0.13%   0.14%        
Net loan charge-offs in the quarter $ 3   $ 6   $ 11        
Net charge-offs in the quarter/average net loans 0.00%   0.00%   0.01%        
                   
Allowance for loan losses $ 11,433   $ 11,436   $ 11,502        
Average interest-earning assets to average                  
interest-bearing liabilities 149.01%   150.84%   149.40%        
Allowance for loan losses to                  
non-performing loans 753.66%   770.10%   713.52%        
Allowance for loan losses to total loans 1.29%   1.30%   1.32%        
Shareholders' equity to assets 12.31%   12.20%   11.13%        
                   
                   
CAPITAL RATIOS                  
Total capital (to risk weighted assets) 17.66%   17.27%   16.35%        
Tier 1 capital (to risk weighted assets) 16.41%   16.02%   15.10%        
Common equity tier 1 (to risk weighted assets) 16.41%   16.02%   15.10%        
Tier 1 capital (to average tangible assets) 12.05%   11.79%   11.22%        
Tangible common equity (to average tangible assets) (non-GAAP) 10.20%   10.06%   8.91%        
                   
                   
DEPOSIT MIX Dec. 31, 2019   Sept. 30, 2019   Dec. 31, 2018   March 31, 2019    
                   
Interest checking $ 179,447   $ 178,854   $ 183,426   $ 183,388    
Regular savings 217,004   196,340   137,323   137,503    
Money market deposit accounts 183,076   186,842   242,081   233,317    
Non-interest checking 279,564   299,062   284,939   284,854    
Certificates of deposit 131,373   121,177   95,809   86,006    
Total deposits $ 990,464   $ 982,275   $ 943,578   $ 925,068    
                   


COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS        
               
      Other       Commercial
  Commercial   Real Estate   Real Estate   & Construction
  Business   Mortgage   Construction   Total
   
December 31, 2019 (Dollars in thousands)
Commercial business $ 165,526   $ -   $ -   $ 165,526
Commercial construction -   -   79,034   79,034
Office buildings -   109,517   -   109,517
Warehouse/industrial -   99,167   -   99,167
Retail/shopping centers/strip malls -   67,874   -   67,874
Assisted living facilities -   1,075   -   1,075
Single purpose facilities -   192,530   -   192,530
Land -   15,163   -   15,163
Multi-family -   57,792   -   57,792
One-to-four family construction -   -   9,838   9,838
Total $ 165,526   $ 543,118   $ 88,872   $ 797,516
               
March 31, 2019              
Commercial business $ 162,796   $ -   $ -   $ 162,796
Commercial construction -   -   70,533   70,533
Office buildings -   118,722   -   118,722
Warehouse/industrial -   91,787   -   91,787
Retail/shopping centers/strip malls -   64,934   -   64,934
Assisted living facilities -   2,740   -   2,740
Single purpose facilities -   183,249   -   183,249
Land -   17,027   -   17,027
Multi-family -   51,570   -   51,570
One-to-four family construction -   -   20,349   20,349
Total $ 162,796   $ 530,029   $ 90,882   $ 783,707
               
               
               
               
LOAN MIX Dec. 31, 2019   Sept. 30, 2019   Dec. 31, 2018   March 31, 2019
Commercial and construction              
Commercial business $ 165,526   $ 167,782   $ 154,360   $ 162,796
Other real estate mortgage 543,118   541,715   541,797   530,029
Real estate construction 88,872   83,174   76,518   90,882
Total commercial and construction 797,516   792,671   772,675   783,707
Consumer              
Real estate one-to-four family 83,978   82,578   86,240   84,053
Other installment 5,039   6,067   9,721   8,356
Total consumer 89,017   88,645   95,961   92,409
               
Total loans 886,533   881,316   868,636   876,116
               
Less:              
Allowance for loan losses 11,433   11,436   11,502   11,457
Loans receivable, net $ 875,100   $ 869,880   $ 857,134   $ 864,659
               


DETAIL OF NON-PERFORMING ASSETS
               
  Other   Southwest        
  Oregon   Washington   Other   Total
December 31, 2019              
               
Commercial business $ -   $ 299   $ -   $ 299
Commercial real estate 851   168   -   1,019
Consumer -   179   20   199
               
Total non-performing assets $ 851   $ 646   $ 20   $ 1,517
               
               
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS
               
  Northwest   Other   Southwest    
  Oregon   Oregon   Washington   Total
   
December 31, 2019 (dollars in thousands)
               
Land development $ 2,175   $ 1,852   $ 11,136   $ 15,163
Speculative construction 278   -   9,496   9,774
               
Total land development and speculative construction $ 2,453   $ 1,852   $ 20,632   $ 24,937
               


                   
    At or for the three months ended   At or for the nine months ended
SELECTED OPERATING DATA Dec. 31, 2019   Sept. 30, 2019   Dec. 31, 2018   Dec. 31, 2019   Dec. 31, 2018
                   
Efficiency ratio (4) 63.10%   60.47%   60.87%   62.16%   61.30%
Coverage ratio (6) 124.26%   130.17%   133.28%   126.37%   131.58%
Return on average assets (1) 1.40%   1.55%   1.53%   1.47%   1.52%
Return on average equity (1) 11.24%   12.68%   13.90%   12.08%   14.17%
Return on average tangible equity (1) (non-GAAP) 13.89%   15.79%   17.91%   15.05%   18.40%
                   
NET INTEREST SPREAD                  
Yield on loans 5.30%   5.32%   5.19%   5.30%   5.28%
Yield on investment securities 2.21%   2.15%   2.38%   2.15%   2.32%
Total yield on interest-earning assets 4.70%   4.80%   4.65%   4.74%   4.66%
                   
Cost of interest-bearing deposits 0.54%   0.40%   0.14%   0.39%   0.15%
Cost of FHLB advances and other borrowings 4.55%   3.72%   4.35%   3.71%   4.49%
Total cost of interest-bearing liabilities 0.70%   0.65%   0.37%   0.65%   0.35%
                   
Spread (7) 4.00%   4.15%   4.28%   4.09%   4.31%
Net interest margin 4.23%   4.36%   4.41%   4.31%   4.42%
                   
PER SHARE DATA                  
Basic earnings per share (2) $ 0.18   $ 0.20   $ 0.19   $ 0.57   $ 0.58
Diluted earnings per share (3) 0.18   0.20   0.19   0.57   0.58
Book value per share (5) 6.41   6.29   5.67   6.41   5.67
Tangible book value per share (5) (non-GAAP) 5.18   5.06   4.43   5.18   4.43
Market price per share:                  
High for the period $ 8.45   $ 8.55   $ 8.75   $ 8.55   $ 9.91
Low for the period 6.94   6.87   7.03   6.87   7.03
Close for period end 8.21   7.38   7.28   8.21   7.28
Cash dividends declared per share 0.0500   0.0450   0.0400   0.1400   0.1100
                   
Average number of shares outstanding:                  
Basic (2) 22,665,712   22,643,103   22,598,712   22,642,883   22,582,956
Diluted (3) 22,718,255   22,702,696   22,663,919   22,701,415   22,658,153
                   


(1) Amounts for the quarterly periods are annualized.
(2) Amounts exclude ESOP shares not committed to be released.
(3) Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
(4) Non-interest expense divided by net interest income and non-interest income.
(5) Amounts calculated based on shareholders' equity and include ESOP shares not committed to be released.
(6) Net interest income divided by non-interest expense.
(7) Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

Contact:
Kevin Lycklama or David Lam
Riverview Bancorp, Inc. 360-693-6650

 

Primary Logo

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com