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CST: 12/12/2019 00:31:37   

Riverview Bancorp Earns $4.4 Million in Third Fiscal Quarter 2019 Highlighted by Strong Loan Growth and Expanding Net Interest Margin

321 Days ago

VANCOUVER, Wash., Jan. 24, 2019 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported net income increased to $4.4 million, or $0.19 per diluted share, in its third fiscal quarter ended December 31, 2018, compared to $4.2 million, or $0.19 per diluted share, in the preceding quarter and $1.5 million, or $0.07 per diluted share, in the third fiscal quarter a year ago.

“We reported strong third quarter operating results, delivering steady loan growth and solid revenue while expanding our net interest margin,” said Kevin Lycklama, president and chief executive officer. “Overall, these factors contributed to a return on average assets of 1.53% and a return on average equity of 13.90% for the quarter. The economic fundamentals in our market are strong and we remain optimistic about the upcoming fiscal year.”

Third Quarter Highlights (at or for the period ended December 31, 2018)

  • Net income grew to $4.4 million, or $0.19 per diluted share.
  • Net interest margin (NIM) expanded by six basis points to 4.39% compared to the preceding quarter.
  • Return on average assets increased to 1.53% compared to 1.46% in the preceding quarter.
  • Return on average equity improved to 13.90% compared to 13.68% in the preceding quarter.
  • Total loans increased $18.8 million during the quarter to $868.6 million at December 31, 2018.
  • Cost of deposits remained low at 0.10% for the quarter, the same as the preceding quarter.
  • Non-performing assets improved to 0.14% of total assets.
  • Tangible book value per share (non-GAAP) was $4.43.
  • Total risk-based capital ratio was 16.35% and Tier 1 leverage ratio was 11.22%.
  • Increased its quarterly cash dividend to $0.04 per share, generating a current dividend yield of 2.13% based on the January 18, 2019 share price.

Income Statement

Third quarter net interest income was $11.7 million, a modest increase compared to $11.6 million in the preceding quarter, and an $884,000 increase compared to $10.8 million in the third fiscal quarter a year ago. The increase in net interest income was due to higher rates on earning assets and an increase in outstanding loans. In the first nine months of fiscal 2019, net interest income increased 8.8% to $34.8 million, compared to $32.0 million in the first nine months of fiscal 2018.

“Our robust loan growth, coupled with our low cost of deposits, contributed to the net interest margin expansion during the quarter,” said David Lam, executive vice president and chief financial officer. “However, increased competition for loans and deposits and a flattening yield curve remains a challenge.”

Riverview’s third fiscal quarter net interest margin increased six basis points to 4.39% compared to 4.33% in the second fiscal quarter and increased 33 basis points when compared to 4.06% in the third fiscal quarter a year ago. In the preceding quarter, the collection of $98,000 of non-accrual interest from a prior charged-off loan added four basis points to the NIM. The accretion on purchased loans totaled $172,000 during the current quarter and $152,000 during the linked quarter resulting in a seven basis point increase in the NIM for both periods. In the first nine months of fiscal 2019, Riverview’s NIM increased 31 basis points to 4.37%, compared to the same period a year earlier.

The weighted average rate on loans originated during the quarter ended December 31, 2018, increased to 6.04% compared to 5.63% for the quarter ended September 30, 2018, and 4.75% for the quarter ended December 31, 2017.

Non-interest income was $2.8 million in the third fiscal quarter compared to $3.0 million in the preceding quarter and $2.9 million in the same quarter a year ago. Year to date, non-interest income was $8.9 million compared to $8.3 million in the same period in the prior year. During the preceding quarter, other non-interest income included a net gain of approximately $70,000 on the sale of deposit accounts associated with the closing of the Company’s Longview, WA branch. Additionally, prepayment fees decreased $122,000 to $54,000 for the third fiscal quarter compared to $176,000 in the preceding quarter.

Asset management fees were $935,000 in the third fiscal quarter of 2019 compared to $943,000 in the preceding quarter and $911,000 in the third fiscal quarter a year ago. Riverview Trust Company’s assets under management decreased to $570.4 million at December 31, 2018, compared to $614.0 million three months earlier but increased compared to $490.1 million one year earlier. The current quarter decrease was primarily due to the recent stock market volatility.

The efficiency ratio improved to 60.9% for the third fiscal quarter compared to 61.0% in the preceding quarter and 62.5% in the third fiscal quarter a year ago. Non-interest expense decreased to $8.8 million during the third fiscal quarter of 2019 compared to $8.9 million in the preceding quarter, primarily related to a $355,000 gain on sale of the building related to the Longview branch closing. Offsetting this decrease was an increase in salaries and employee benefits and professional fees as the Company continues to invest in employees and technology infrastructure. In the first nine months of fiscal 2019, non-interest expense was $26.7 million compared to $26.5 million in the same period a year earlier.

Riverview’s effective tax rate for the first nine months of fiscal year 2019 was 22.4% compared to 47.6% for the same prior year period. The decrease was a result of the passage of the Tax Cuts and Jobs Act in December 2017.

Balance Sheet Review

Riverview’s total loans increased $18.8 million during the quarter to $868.6 million at December 31, 2018, an annualized growth rate of 8.8%. The increase was primarily concentrated in commercial construction loans and single purpose commercial real estate facilities. Total loan balances also continue to be impacted by elevated pay downs on existing loans.

The loan pipeline totaled $33.6 million at December 31, 2018 compared to $91.9 million at the end of the prior quarter. Undisbursed construction loans totaled $79.0 million at December 31, 2018 compared to $82.0 million three months earlier. The majority of the undisbursed construction loans are expected to fund over the next several quarters.

“Loan demand remains robust in our market area, and our lending teams are doing an outstanding job of capitalizing on opportunities,” said Lycklama. “While we did experience a decrease in our loan pipeline, this was mostly expected due to seasonal conditions as well as the strong loan originations during the quarter.”

Total deposits decreased to $943.6 million at December 31, 2018 compared to $982.3 million three months earlier and $972.2 million a year ago. Money market, certificates of deposit and other interest-rate sensitive accounts continue to experience the greatest pressure due to an increase in competition and pricing pressures in our market area.

Shareholders’ equity improved to $128.1 million at December 31, 2018, compared to $122.4 million three months earlier and $116.8 million a year earlier. Tangible book value per share (non-GAAP) increased to $4.43 at December 31, 2018, compared to $4.17 at September 30, 2018 and $3.93 at December 31, 2017. A quarterly cash dividend of $0.04 per share was paid on January 22, 2019.

Credit Quality

As a result of improving asset quality and a low level of net charge-offs, Riverview recorded no provision for loan losses during the third fiscal quarter of 2019. This compares to a $250,000 recapture for loan losses in the preceding quarter and no provision for loan losses for the third fiscal quarter a year ago.

Non-performing loans improved to $1.6 million, or 0.19% of total loans, at December 31, 2018, compared to $2.3 million, or 0.27% of total loans, three months earlier and $2.7 million, or 0.33% of total loans at December 31, 2017. Riverview had no real estate owned balances at December 31, 2018 and September 30, 2018. Riverview had $298,000 in real estate owned balances as of December 31, 2017.

Net loan charge offs were $11,000 during the third fiscal quarter of 2019 compared to net loan charge offs of $86,000 during the second fiscal quarter of 2019 and net loan recoveries of $250,000 during the third fiscal quarter a year ago.

Classified assets totaled $6.0 million at December 31, 2018, compared to $6.2 million at September 30, 2018, and $6.9 million at December 31, 2017. The classified asset to total capital ratio was 4.4% at December 31, 2018, compared to 4.7% three months earlier and 5.7% a year earlier.

The allowance for loan losses totaled $11.5 million, which was unchanged compared to the preceding quarter end. The allowance for loan losses represented 1.32% of total loans at December 31, 2018, compared to 1.35% of total loans at September 30, 2018. Included in the carrying value of loans are net discounts on the MBank purchased loans which may reduce the need for an allowance for loan losses on these loans because they are carried at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $1.7 million at December 31, 2018, compared to $1.9 million at the end of the prior quarter.

Capital

Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 16.35% and a Tier 1 leverage ratio of 11.22% at December 31, 2018. In addition, at that date the Company’s tangible common equity to average tangible assets ratio (non-GAAP) was 8.91%.

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, 2018   September 30, 2018   December 31, 2017   March 31, 2018
                 
Shareholders' equity   $ 128,094   $ 122,410   $ 116,803   $ 116,901
Goodwill     27,076     27,076     27,076     27,076
Core deposit intangible, net     966     1,011     1,161     1,103
Tangible shareholders' equity   $ 100,052   $ 94,323   $ 88,566   $ 88,722
                 
Total assets   $ 1,151,225   $ 1,148,447   $ 1,128,342   $ 1,151,535
Goodwill     27,076     27,076     27,076     27,076
Core deposit intangible, net     966     1,011     1,161     1,103
Tangible assets   $ 1,123,183   $ 1,120,360   $ 1,100,105   $ 1,123,356
                 

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 $1.15 billion at December 31, 2018, it is the parent company of the 95-year-old Riverview Community Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers. There are 17 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 5 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, The Columbian and The Gresham Outlook.

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

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

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2019 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating and stock price performance.

RIVERVIEW BANCORP, INC. AND SUBSIDIARY              
Consolidated Balance Sheets              
(In thousands, except share data)  (Unaudited) December 31, 2018   September 30, 2018   December 31, 2017   March 31, 2018
ASSETS              
               
Cash (including interest-earning accounts of $4,641, $12,537 $3,739 $ 23,394     $ 27,080     $ 23,105     $ 44,767  
and $30,052)              
Certificate of deposits held for investment   747       3,984       6,963       5,967  
Loans held for sale   -       -       351       210  
Investment securities:              
Available for sale, at estimated fair value   182,280       190,792       224,931       213,221  
Held to maturity, at amortized cost   36       38       44       42  
Loans receivable (net of allowance for loan losses of $11,502, $11,513              
$10,867, and $10,766)   857,134       838,329       786,460       800,610  
Real estate owned   -       -       298       298  
Prepaid expenses and other assets   4,021       5,104       4,843       3,870  
Accrued interest receivable   3,789       3,671       3,464       3,477  
Federal Home Loan Bank stock, at cost   2,735       1,353       1,223       1,353  
Premises and equipment, net   14,940       15,403       15,680       15,783  
Deferred income taxes, net   4,680       5,352       3,988       4,813  
Mortgage servicing rights, net   325       344       399       388  
Goodwill   27,076       27,076       27,076       27,076  
Core deposit intangible, net   966       1,011       1,161       1,103  
Bank owned life insurance   29,102       28,910       28,356       28,557  
               
TOTAL ASSETS $ 1,151,225     $ 1,148,447     $ 1,128,342     $ 1,151,535  
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
LIABILITIES:              
Deposits $ 943,578     $ 982,272     $ 972,214     $ 995,691  
Accrued expenses and other liabilities   15,855       13,767       9,117       9,391  
Advance payments by borrowers for taxes and insurance   192       1,050       260       637  
Federal Home Loan Bank advances   34,543       -       1,050       -  
Junior subordinated debentures   26,553       26,530       26,461       26,484  
Capital lease obligations   2,410       2,418       2,437       2,431  
Total liabilities   1,023,131       1,026,037       1,011,539       1,034,634  
               
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, 2018 - 22,598,712 issued and outstanding;              
September 30, 2018 - 22,598,712 issued and outstanding;   226       226       226       226  
December 31, 2017 - 22,551,912 issued and outstanding;              
March 31, 2018 – 22,570,179 issued and outstanding;              
Additional paid-in capital   65,056       65,044       64,703       64,871  
Retained earnings   67,126       63,642       53,878       56,552  
Accumulated other comprehensive loss   (4,314 )     (6,502 )     (2,004 )     (4,748 )
Total shareholders’ equity   128,094       122,410       116,803       116,901  
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,151,225     $ 1,148,447     $ 1,128,342     $ 1,151,535  
               


RIVERVIEW BANCORP, INC. AND SUBSIDIARY            
Consolidated Statements of Income            
  Three Months Ended   Nine Months Ended
(In thousands, except share data)  (Unaudited) Dec. 31, 2018 Sept. 30, 2018 Dec. 31, 2017   Dec. 31, 2018 Dec. 31, 2017
INTEREST INCOME:            
Interest and fees on loans receivable $ 11,129 $ 10,943 $ 9,978   $ 32,849 $ 29,761
Interest on investment securities - taxable   1,110   1,116   1,201     3,424   3,413
Interest on investment securities - nontaxable   37   36   31     110   59
Other interest and dividends   60   118   168     271   483
Total interest and dividend income   12,336   12,213   11,378     36,654   33,716
             
INTEREST EXPENSE:            
Interest on deposits   240   259   298     759   933
Interest on borrowings   416   352   284     1,126   829
Total interest expense   656   611   582     1,885   1,762
Net interest income   11,680   11,602   10,796     34,769   31,954
Provision for loan losses   -   250   -     50   -
             
Net interest income after provision for loan losses   11,680   11,352   10,796     34,719   31,954
             
NON-INTEREST INCOME:            
Fees and service charges   1,511   1,690   1,451     4,956   4,348
Asset management fees   935   943   911     2,804   2,582
Net gain on sale of loans held for sale   82   44   140     278   522
Bank owned life insurance   192   174   207     545   618
Other, net   62   165   181     267   271
Total non-interest income, net   2,782   3,016   2,890     8,850   8,341
             
NON-INTEREST EXPENSE:            
Salaries and employee benefits   5,794   5,283   5,383     16,655   16,056
Occupancy and depreciation   1,306   1,351   1,347     4,016   4,105
Data processing   621   622   534     1,874   1,730
Amortization of core deposit intangible   45   46   58     137   174
Advertising and marketing   151   266   137     609   627
FDIC insurance premium   85   85   108     246   389
State and local taxes   125   182   96     475   427
Telecommunications   85   88   102     266   309
Professional fees   449   387   250     1,120   926
Other   142   605   543     1,339   1,748
Total non-interest expense   8,803   8,915   8,558     26,737   26,491
             
INCOME BEFORE INCOME TAXES   5,659   5,453   5,128     16,832   13,804
PROVISION FOR INCOME TAXES   1,271   1,224   3,608     3,773   6,571
NET INCOME $ 4,388 $ 4,229 $ 1,520   $ 13,059 $ 7,233
             
Earnings per common share:            
Basic $ 0.19 $ 0.19 $ 0.07   $ 0.58 $ 0.32
Diluted $ 0.19 $ 0.19 $ 0.07   $ 0.58 $ 0.32
Weighted average number of common shares outstanding:            
Basic   22,598,712   22,579,839   22,537,092     22,582,956   22,520,352
Diluted   22,663,919   22,658,737   22,622,129     22,658,153   22,608,603
             


                     
(Dollars in thousands)   At or for the three months ended   At or for the nine months ended
    Dec. 31, 2018   Sept. 30, 2018   Dec. 31, 2017   Dec. 31, 2018   Dec. 31, 2017
AVERAGE BALANCES                    
Average interest–earning assets   $   1,057,199     $   1,064,386     $   1,055,600     $   1,056,750   $   1,045,283
Average interest-bearing liabilities     707,618       717,085       744,431       716,890     746,262
Net average earning assets     349,581       347,301       311,169       339,860     299,021
Average loans     854,368       839,497       785,264       835,697     784,926
Average deposits     967,246       986,948       988,558       975,295     980,766
Average equity     125,252       122,630       118,831       122,298     116,399
Average tangible equity (non-GAAP)     97,182       94,515       90,562       94,182     88,074
                     
                     
ASSET QUALITY   Dec. 31, 2018   Sept. 30, 2018   Dec. 31, 2017        
                     
Non-performing loans   $   1,612     $   2,283     $   2,656          
Non-performing loans to total loans     0.19%       0.27%       0.33%          
Real estate/repossessed assets owned   $   -     $   -     $    298          
Non-performing assets   $   1,612     $   2,283     $   2,954          
Non-performing assets to total assets     0.14%       0.20%       0.26%          
Net loan charge-offs (recoveries) in the quarter   $   11     $    86     $   (250)          
Net charge-offs (recoveries) in the quarter/average net loans     0.01%       0.04%       (0.13)%          
                     
Allowance for loan losses   $   11,502     $   11,513     $   10,867          
Average interest-earning assets to average                    
  interest-bearing liabilities     149.40%       148.43%       141.80%          
Allowance for loan losses to                    
  non-performing loans     713.52%       504.29%       409.15%          
Allowance for loan losses to total loans     1.32%       1.35%       1.36%          
Shareholders’ equity to assets     11.13%       10.66%       10.35%          
                     
                     
CAPITAL RATIOS                    
Total capital (to risk weighted assets)     16.35%       15.82%       15.07%          
Tier 1 capital (to risk weighted assets)     15.10%       14.54%       13.82%          
Common equity tier 1 (to risk weighted assets)     15.10%       14.54%       13.82%          
Tier 1 capital (to average tangible assets)     11.22%       10.72%       9.82%          
Tangible common equity (to average tangible assets) (non-GAAP)     8.91%       8.42%       8.05%          
                     
                     
DEPOSIT MIX   Dec. 31, 2018   Sept. 30, 2018   Dec. 31, 2017   March 31, 2018    
                     
Interest checking   $   183,426     $   182,947     $   170,151     $   192,989    
Regular savings       137,323         138,082         136,249         134,931    
Money market deposit accounts       242,081         252,738         270,193         265,661    
Non-interest checking       284,939         300,659         264,728         278,966    
Certificates of deposit       95,809         107,846         130,893         123,144    
Total deposits   $   943,578     $   982,272     $   972,214     $   995,691    
                     


COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS        
                 
        Other       Commercial
    Commercial   Real Estate   Real Estate   & Construction
    Business   Mortgage   Construction   Total
     
December 31, 2018   (Dollars in thousands)
Commercial business   $ 154,360   $ -   $ -   $ 154,360
Commercial construction     -     -     58,197     58,197
Office buildings     -     119,850     -     119,850
Warehouse/industrial     -     90,167     -     90,167
Retail/shopping centers/strip malls     -     64,317     -     64,317
Assisted living facilities     -     2,790     -     2,790
Single purpose facilities     -     191,237     -     191,237
Land     -     18,506     -     18,506
Multi-family     -     54,930     -     54,930
One-to-four family construction     -     -     18,321     18,321
Total   $ 154,360   $ 541,797   $ 76,518   $ 772,675
                 
March 31, 2018                
Commercial business   $ 137,672   $ -   $ -   $ 137,672
Commercial construction     -     -     23,158     23,158
Office buildings     -     124,000     -     124,000
Warehouse/industrial     -     89,442     -     89,442
Retail/shopping centers/strip malls     -     68,932     -     68,932
Assisted living facilities     -     2,934     -     2,934
Single purpose facilities     -     165,289     -     165,289
Land     -     15,337     -     15,337
Multi-family     -     63,080     -     63,080
One-to-four family construction     -     -     16,426     16,426
Total   $ 137,672   $ 529,014   $ 39,584   $ 706,270
                 
                 
                 
                 
LOAN MIX   Dec. 31, 2018   Sept. 30, 2018   Dec. 31, 2017   March 31, 2018
     
    (Dollars in thousands)
Commercial and construction                
Commercial business   $ 154,360   $ 155,487   $ 130,960   $ 137,672
Other real estate mortgage     541,797     533,258     516,223     529,014
Real estate construction     76,518     62,795     40,743     39,584
Total commercial and construction     772,675     751,540     687,926     706,270
Consumer                
Real estate one-to-four family     86,240     86,950     91,752     90,109
Other installment     9,721     11,352     17,649     14,997
Total consumer     95,961     98,302     109,401     105,106
                 
Total loans     868,636     849,842     797,327     811,376
                 
Less:                
Allowance for loan losses     11,502     11,513     10,867     10,766
Loans receivable, net   $ 857,134   $ 838,329   $ 786,460   $ 800,610
                 


DETAIL OF NON-PERFORMING ASSETS                
                     
        Other   Southwest        
        Oregon   Washington   Other   Total
     
December 31, 2018   (dollars in thousands)
                     
Commercial business   $ -   $ 163   $ 105   $ 268
Commercial real estate     924     188     -     1,112
Consumer     -     173     59     232
                     
  Total non-performing loans   $ 924   $ 524   $ 164   $ 1,612
                     
                     
                     
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS    
                     
        Northwest   Other   Southwest    
        Oregon   Oregon   Washington   Total
     
December 31, 2018   (dollars in thousands)
                     
Land development   $ 2,187   $ 1,927   $ 14,392   $ 18,506
Speculative construction     1,098     81     14,226     15,405
                     
  Total land development and speculative  construction   $ 3,285   $ 2,008   $ 28,618   $ 33,911
                     


    At or for the three months ended   At or for the nine months ended
SELECTED OPERATING DATA Dec. 31, 2018 Sept. 30, 2018 Dec. 31, 2017   Dec. 31, 2018 Dec. 31, 2017
             
Efficiency ratio (4)   60.87 %   60.99 %   62.53 %     61.30 %   65.74 %
Coverage ratio (6)   132.68 %   130.14 %   126.15 %     130.04 %   120.62 %
Return on average assets (1)   1.53 %   1.46 %   0.53 %     1.52 %   0.85 %
Return on average equity (1)   13.90 %   13.68 %   5.07 %     14.17 %   8.25 %
             
NET INTEREST SPREAD            
Yield on loans   5.17 %   5.17 %   5.04 %     5.22 %   5.03 %
Yield on investment securities   2.38 %   2.27 %   2.24 %     2.32 %   2.20 %
Total yield on interest-earning assets   4.63 %   4.56 %   4.28 %     4.61 %   4.29 %
             
Cost of interest-bearing deposits   0.14 %   0.15 %   0.17 %     0.15 %   0.17 %
Cost of FHLB advances and other borrowings   4.35 %   4.82 %   3.89 %     4.49 %   3.80 %
Total cost of interest-bearing liabilities   0.37 %   0.34 %   0.31 %     0.35 %   0.31 %
             
Spread (7)   4.26 %   4.22 %   3.97 %     4.26 %   3.98 %
Net interest margin   4.39 %   4.33 %   4.06 %     4.37 %   4.06 %
             
PER SHARE DATA            
Basic earnings per share (2) $ 0.19   $ 0.19   $ 0.07     $ 0.58   $ 0.32  
Diluted earnings per share (3)   0.19     0.19     0.07       0.58     0.32  
Book value per share (5)   5.67     5.42     5.18       5.67     5.18  
Tangible book value per share (5) (non-GAAP)   4.43     4.17     3.93       4.43     3.93  
Market price per share:            
High for the period $ 8.75   $ 9.91   $ 9.45     $ 9.91   $ 9.45  
Low for the period   7.03     8.47     8.44       7.03     6.51  
Close for period end   7.28     8.84     8.67       7.28     8.67  
Cash dividends declared per share   0.0400     0.0350     0.0300       0.1100     0.0750  
             
Average number of shares outstanding:            
Basic (2)   22,598,712     22,579,839     22,537,092       22,582,956     22,520,352  
Diluted (3)   22,663,919     22,658,737     22,622,129       22,658,153     22,608,603  
             

(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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