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CST: 14/12/2019 02:05:24   

Riverview Bancorp Earns $4.2 Million in First Quarter of Fiscal Year 2020; Highlighted by Strong Loan Growth and Solid Revenue Generation

143 Days ago

VANCOUVER, Wash., July 23, 2019 (GLOBE NEWSWIRE) -- 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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