Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today reported earnings of $5.2 million, or $0.24 per
diluted share, in the second fiscal quarter ended September 30,
2022, compared to $4.7 million, or $0.21 per diluted share, in the
preceding quarter and $6.4 million, or $0.29 per diluted share, in
the second fiscal quarter a year ago.
In the first six months of fiscal 2023, net
income was $9.8 million, or $0.45 per diluted share, compared to
$12.2 million, or $0.55 per diluted share, in the first six months
of fiscal 2022. Year-to-date fiscal 2023 results included no
provision for loan losses, compared to a $2.7 million recapture of
a provision for loan losses in the same period a year earlier.
“We are pleased to deliver strong second quarter
earnings which is a direct result of our efforts to increase
profitability while managing our operating expenses,” stated Kevin
Lycklama, president and chief executive officer. “Growth in our net
interest income reflects the continued expansion of the net
interest margin by 19 basis points in the second fiscal quarter,
compared to the preceding quarter. We remain well positioned for
any additional Fed rate increases later in the year with our asset
sensitive position, which should further expand our net interest
margin in future quarters.”
Second Quarter Highlights (at or for the
period ended September 30, 2022)
- Net income was $5.2 million, or
$0.24 per diluted share.
- Pre-tax, pre-provision for loan
losses income (non-GAAP) was $6.8 million for the quarter compared
to $6.0 million in the preceding quarter and $7.3 million for the
year ago quarter.
- Net interest income increased to
$13.4 million for the quarter compared to $12.7 million in the
preceding quarter and $12.4 million in the second fiscal quarter a
year ago.
- Net interest margin (“NIM”) expanded to 3.30% for the quarter,
compared to 3.11% in the preceding quarter and 3.12% for the year
ago quarter.
- Return on average assets was 1.21% and return on average equity
was 13.28%.
- Riverview recorded no provision for
loan losses during the current quarter or the prior quarter, and
recorded a $1.1 million recapture of a provision for loan losses in
the second fiscal quarter a year ago.
- The allowance for loan losses was
$14.6 million, or 1.44% of total loans.
- Total loans were $1.01 billion for
both the current and prior quarter end and increased $96.5 million
compared to a year ago. Included in total loans were $8.7 million
of purchased commercial loans during the quarter.
- Asset quality remained strong, with
non-performing loans excluding SBA and USDA government guaranteed
loans (non-GAAP) at $248,000, or 0.01% of total assets at September
30, 2022.
- Total deposits decreased $6.3
million to $1.49 billion compared to three months earlier with a
majority of the decrease due to the decline in CD account
balances.
- Total risk-based capital ratio was
16.48% and Tier 1 leverage ratio was 9.57%.
- Paid a quarterly cash dividend
during the quarter of $0.06 per share.
Income Statement Review
Riverview’s net interest income increased to
$13.4 million in the current quarter, compared to $12.7 million in
the preceding quarter, and $12.4 million in the second fiscal
quarter a year ago. The increase in net interest income compared to
the prior quarter was driven primarily by an increase in investment
income and interest earned on our Federal Reserve account from the
recent interest rate hikes as well as higher yields on new loan
originations in our loan portfolio. Prior year net interest income
included interest and fee income earned on PPP loans and net fees
on loan prepayments. The adjusted net interest income (non-GAAP)
increased to $12.6 million in the current quarter compared to $12.0
million in the preceding quarter and $10.8 million in the second
fiscal quarter a year ago. In the first six months of fiscal 2023,
net interest income increased to $26.1 million compared to $23.7
million in the first six months of fiscal 2022.
During the second quarter of fiscal 2023, there
was an insignificant amount of interest and net fee income earned
through PPP loan forgiveness and normal amortization. This compared
to $101,000 of interest and net fee income on PPP loans during the
preceding quarter and $928,000 in the second quarter of the prior
year.
Riverview’s NIM was 3.30% for the second quarter
of fiscal 2023, a 19 basis-point increase compared to 3.11% in the
preceding quarter and an 18 basis-point increase compared to 3.12%
in the second quarter of fiscal 2022. “The increase in investment
yields due to the recent Fed rate increases contributed to NIM
expansion during the quarter,” said David Lam, executive vice
president and chief financial officer. In the first six months of
fiscal 2023, the net interest margin was 3.21% compared to 3.09% in
the same period a year earlier.
During the second quarter of fiscal 2023, net
fees on loan prepayments, which included purchased SBA loan
premiums, increased net interest income by $137,000 and increased
the NIM by three basis points. This compared to $168,000 in net
fees on loan prepayments adding four basis points to NIM in the
preceding quarter. The interest accretion on purchased loans
totaled $49,000 and resulted in a one-basis point increase in the
NIM during the second quarter, compared to $37,000 and a one-basis
point increase in the NIM during the preceding quarter. SBA PPP
loan interest and fees did not contribute to NIM for the current
quarter, compared to two basis points increase for the preceding
quarter. The average overnight cash balances were $137.6 million
during the quarter ended September 30, 2022, compared to $194.3
million in the preceding quarter and $345.8 million for the second
fiscal quarter a year ago. Without the elevated level in overnight
cash balances, NIM would have been 11 basis points higher in the
current quarter, 31 basis points higher in the prior quarter and 79
basis points higher in the second fiscal quarter a year ago. These
items resulted in a core-NIM (non-GAAP) of 3.37% in the current
quarter, 3.35% in the preceding quarter and 3.60% in the second
fiscal quarter a year ago. The following table represents the
components of (non-GAAP) Core NIM:
|
Three Months Ended |
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Net interest margin
(GAAP) |
3.30 |
% |
|
3.11 |
% |
|
3.12 |
% |
Net fees on loan prepayments |
(0.03 |
) |
|
(0.04 |
) |
|
(0.13 |
) |
Accretion on purchased MBank loans |
(0.01 |
) |
|
(0.01 |
) |
|
(0.03 |
) |
SBA PPP loans |
0.00 |
|
|
(0.02 |
) |
|
(0.15 |
) |
Excess FRB liquidity |
0.11 |
|
|
0.31 |
|
|
0.79 |
|
Core net interest margin
(non-GAAP) |
3.37 |
% |
|
3.35 |
% |
|
3.60 |
% |
During the second fiscal quarter of 2023,
Riverview continued to deploy excess cash into its investment
portfolio. Investment securities totaled $464.7 million at
September 30, 2022, compared to $437.7 million at June 30, 2022.
During the current quarter, the Company purchased $46.9 million in
new securities with a weighted average yield of 3.68%. Investment
purchases were comprised primarily of agency securities and MBS
backed by government agencies.
Average securities balances for the quarters
ended September 30, 2022, June 30, 2022, and September 30, 2021,
were $473.4 million, $441.6 million and $326.1 million,
respectively. The weighted average yields on securities balances
for those same periods were 1.89%, 1.74% and 1.47%,
respectively.
Riverview’s loan yields remained relatively
unchanged during the quarter at 4.38% compared to 4.39% in the
preceding quarter and decreased when compared to 5.11% in the
second fiscal quarter a year ago. The cost of deposits were 0.09%
during the second fiscal quarter compared to 0.07% in the preceding
quarter, and 0.11% in the second fiscal quarter a year ago.
Non-interest income was $3.1 million during the
second fiscal quarter, which was unchanged compared to both the
preceding quarter and the second fiscal quarter of 2022.
Interchange income remained strong. However, brokered loan fees
have slowed due to the decrease in mortgage activity and rising
interest rates. In the first six months of fiscal 2023,
non-interest income was $6.3 million compared to $6.7 million in
the same period a year ago which included a one-time BOLI death
benefit of $500,000.
Asset management fees were $1.2 million during
the second fiscal quarter and in the preceding quarter, and
$928,000 in the second fiscal quarter a year ago. Riverview Trust
Company’s assets under management were $752.4 million at September
30, 2022, compared to $1.2 billion at June 30, 2022 and $1.3
billion at September 30, 2021. The decrease compared to the prior
quarter was a result of a single large client’s planned conclusion
of trust services along with decreases in stock market-based assets
due to the downturn in the financial markets.
Non-interest expense was $9.8 million during the
current quarter and in the preceding quarter and totaled $8.2
million in the second fiscal quarter a year ago. Year-to-date,
non-interest expense was $19.6 million compared to $17.3 million in
the first six months of fiscal 2022. The prior year three and
six-month period included a $1.0 million gain on sale of a
building. Salary and employee benefits decreased slightly compared
to the prior quarter. However, wage pressures and the competitive
landscape for attracting and retaining employees, continues to put
pressure on salary and employee benefits. The efficiency ratio was
59.2% for the second fiscal quarter compared to 61.9% in the
preceding quarter and 53.0% in the second fiscal quarter a year
ago. Occupancy and depreciation expense increased due to the
Company’s rebranding effort in addition to updates and
modernization initiatives completed at our facilities.
Return on average assets was 1.21% in the second
quarter of fiscal 2023 compared to 1.08% in the preceding quarter.
Return on average equity and return on average tangible equity
(non-GAAP) were 13.28% and 16.15%, respectively, compared to 11.91%
and 14.46%, respectively, for the prior quarter.
Riverview’s effective tax rate for the second
quarter of fiscal 2023 was 23.2%, compared to 22.7% for the
preceding quarter, and 23.1% for the year ago quarter.
Balance Sheet Review
Total loans were $1.01 billion at September 30,
2022, unchanged compared to three months earlier. Total loans
increased from $914.5 million a year ago. During the quarter,
Riverview completed the purchase of $8.7 million in commercial
loans, that was primarily offset by a $7.7 million decline in
existing loans. Riverview’s loan pipeline increased compared to the
prior quarter and totaled $73.3 million at September 30, 2022,
compared to $66.8 million at the end of the prior quarter. New loan
originations during the quarter totaling $48.7 million compared to
$90.7 million in the preceding quarter and $110.5 million in the
second quarter a year ago.
Undisbursed construction loans totaled $53.9
million at September 30, 2022, compared to $47.7 million at June
30, 2022, with the majority of the undisbursed construction loans
expected to fund over the next several quarters. Undisbursed
homeowner association loans for the purpose of common area
maintenance and repairs totaled $26.4 million at September 30,
2022, compared to $34.1 million at June 30, 2022. Revolving
commercial business loan commitments totaled $59.3 million at
September 30, 2022, compared to $57.3 million three months earlier.
Utilization on these loans totaled 20.3% at September 30, 2022,
compared to 22.3% at June 30, 2022. The weighted average rate on
loan originations during the quarter improved to 5.77% compared to
4.71% in the preceding quarter.
Total deposits were $1.49 billion at September
30, 2022, compared to $1.50 billion at June 30, 2022, representing
a decrease of $6.3 million. Total deposits decreased $17.3 million,
or 1.2%, compared to a year earlier. The decrease can be attributed
to deposit pricing pressures and customers seeking out higher
yielding investment alternatives. Checking accounts, as a
percentage of total deposits, totaled 53.3% at September 30,
2022.
Shareholders’ equity was $147.2 million at
September 30, 2022, compared to $154.4 million three months earlier
and $159.8 million a year earlier. Tangible book value per share
(non-GAAP) was $5.56 at September 30, 2022, compared to $5.78 at
June 30, 2022, and $5.96 at September 30, 2021. The decrease
in shareholders’ equity and tangible book value per share during
the current quarter was primarily due to a $7.6 million increase in
accumulated other comprehensive loss related to an increase in the
unrealized loss on available for sale securities, reflecting the
increase in interest rates during the current quarter. Riverview
paid a quarterly cash dividend to $0.06 per share on October 24,
2022, to shareholders of record on October 13, 2022.
Credit Quality
Asset quality remained strong, with
non-performing loans excluding SBA and USDA government guaranteed
loans (“government guaranteed loans”) (non-GAAP) at $248,000, or
0.01% of total assets as of September 30, 2022, compared to
$262,000, or 0.02% of total assets at June 30, 2022. Including
government guaranteed loans, non-performing assets were $21.0
million, or 1.25% of total assets, at September 30, 2022, compared
to $27.5 million, or 1.62% of total assets, three months earlier
and $490,000, or 0.03% of total assets, at September 30, 2021. The
$21.0 million includes non-performing government guaranteed loans
where payments have been delayed due to the servicing transfer of
these loans between two third-party servicers. Once the servicing
transfer is complete, Riverview expects to receive the delayed
payments and expects non-performing assets to decrease
significantly. During the quarter, these balances were reduced by
$6.5 million as we continue to work through the reconciliation of
these loans with the third-party servicer.
Additional details on government guaranteed
loans.
The Bank holds approximately $19.8 million of
the government guaranteed loans originated by other banks that,
when purchased, were placed into a Direct Registration Certificate
(“DRC”) program by the SBA’s former fiscal transfer agent, Colson
Inc. (“Colson”). Under the DRC program, Colson was required to
remit monthly payments to the investor holding the guaranteed
balance, whether or not a payment had actually been received from
the borrower. In 2020, Colson did not successfully retain its
existing contract as the SBA’s fiscal transfer agent and began
transitioning servicing over to a new company, Guidehouse. In late
2021, Guidehouse, under their contract with the SBA, declined to
continue the DRC program. After declining to continue the DRC
program, all payments under the DRC program began to be held by
Guidehouse or Colson until the DRC program could be unwound and the
DRC holdings converted into normal pass through certificates. As
part of unwinding the DRC program, Colson has requested investors
who had received payments in advance of the borrower actually
remitting payment return advanced funds before they will process
the conversion of certificates. The Bank continues to work with
Colson on the reconciliation and transfer of these loans. The Bank
expects the reconciliation and unwinding process to continue and
until the reconciliation and unwinding process is completed, these
loans will be reflected as past due. The Bank is fully guaranteed
to be paid all principal and interest on these loans.
Non-performing
loans reconciliation, excluding Government Guaranteed
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
(Dollars in thousands) |
September 30, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Non-performing loans (GAAP) |
$ |
20,979 |
|
|
$ |
27,534 |
|
|
$ |
490 |
|
Less: Non-performing Government Guaranteed loans |
(20,731 |
) |
|
(27,272 |
) |
|
(94 |
) |
Adjusted non-performing loans excluding Government Guaranteed loans
(non-GAAP) |
$ |
248 |
|
|
$ |
262 |
|
|
$ |
396 |
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total
loans (GAAP) |
2.08 |
% |
|
2.72 |
% |
|
0.05 |
% |
|
|
|
|
|
|
|
|
|
Non-performing loans,
excluding Government Guaranteed loans to total loans
(non-GAAP) |
0.02 |
% |
|
0.03 |
% |
|
0.04 |
% |
|
|
|
|
|
|
|
|
|
Non-performing loans to total
assets (GAAP) |
1.25 |
% |
|
1.62 |
% |
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
Non-performing loans,
excluding Government Guaranteed loans to total assets
(non-GAAP) |
0.01 |
% |
|
0.02 |
% |
|
0.02 |
% |
Riverview recorded net loan charge-offs of
$7,000 during the second fiscal quarter. This compared to net loan
recoveries of $36,000 for the preceding quarter and net loan
recoveries of $10,000 in the second fiscal quarter a year ago.
Riverview recorded no provision for loan losses during the second
fiscal quarter, or the first fiscal quarter. This compared to a
recapture of a provision for loan losses of $1.1 million in the
second fiscal quarter a year ago.
Classified assets were $6.6 million at September
30, 2022, compared to $6.4 million at June 30, 2022, and $10.3
million at September 30, 2021. The classified asset to total
capital ratio was 3.8% at September 30, 2022, compared to 3.7%
three months earlier and 6.2% a year earlier. Criticized assets
decreased to $980,000 at September 30, 2022, compared to $1.3
million at June 30, 2022 and $31.3 million at September 30,
2021.
The allowance for loan losses was $14.6 million
at September 30, 2022, which was unchanged from June 30, 2022. This
compared to $16.5 million one year earlier. The allowance for loan
losses represented 1.44% of total loans at September 30, 2022
and June 30, 2022, compared to 1.80% a year earlier. The allowance
for loan losses to loans, net of SBA guaranteed loans (including
SBA purchased and PPP loans) (non-GAAP), was 1.53% at September 30,
2022, and June 30, 2022, compared to 1.97% a year 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 $285,000 at
September 30, 2022, compared to $334,000 three months
earlier.
PPP Loans
During Round 1, Riverview originated 790 PPP
loans totaling approximately $112.9 million, net of deferred fees,
and in PPP Round 2, Riverview originated 414 PPP loans totaling
approximately $54.1 million, net of deferred fees. At September 30,
2022, there was $11,000 in total outstanding PPP loans from Round 1
and Round 2.
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 16.48%
and a Tier 1 leverage ratio of 9.57% at September 30, 2022.
Tangible common equity to average tangible assets ratio (non-GAAP)
was 7.22% at September 30, 2022.
Stock Repurchase Program
On March 9, 2022, Riverview announced that its
Board of Directors authorized the repurchase of up to $5.0 million
of the Company’s outstanding shares in the open market, based on
prevailing market prices, or in privately negotiated transactions,
over a period beginning on March 21, 2022, and continuing until the
earlier of the completion of the repurchase or September 9, 2022,
depending upon market conditions. As of September 9, 2022,
Riverview had completed the full $5.0 million authorized,
repurchasing 718,734 shares at an average price of $6.96 per
share.
Non-GAAP Financial Measures
In addition to results presented in accordance
with generally accepted accounting principles (“GAAP”), this press
release contains certain non-GAAP financial measures. Management
has presented these non-GAAP financial measures in this earnings
release because it believes that they provide useful and
comparative information to assess trends in Riverview's core
operations reflected in the current quarter's results and
facilitate the comparison of our performance with the performance
of our peers. However, these non-GAAP financial measures are
supplemental and are not a substitute for any analysis based on
GAAP. Where applicable, comparable earnings information using GAAP
financial measures is also presented. Because not all companies use
the same calculations, our presentation may not be comparable to
other similarly titled measures as calculated by other companies.
For a reconciliation of these non-GAAP financial measures, see the
tables below.
Tangible
shareholders' equity to tangible assets and tangible book value per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
September 30, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2021 |
|
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (GAAP) |
$ |
147,162 |
|
|
$ |
154,433 |
|
|
$ |
159,760 |
|
|
$ |
157,249 |
|
Exclude: Goodwill |
(27,076 |
) |
|
(27,076 |
) |
|
(27,076 |
) |
|
(27,076 |
) |
Exclude: Core deposit intangible, net |
(437 |
) |
|
(466 |
) |
|
(557 |
) |
|
(495 |
) |
Tangible shareholders' equity (non-GAAP) |
$ |
119,649 |
|
|
$ |
126,891 |
|
|
$ |
132,127 |
|
|
$ |
129,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
$ |
1,684,898 |
|
|
$ |
1,697,711 |
|
|
$ |
1,716,352 |
|
|
$ |
1,740,096 |
|
Exclude: Goodwill |
(27,076 |
) |
|
(27,076 |
) |
|
(27,076 |
) |
|
(27,076 |
) |
Exclude: Core deposit intangible, net |
(437 |
) |
|
(466 |
) |
|
(557 |
) |
|
(495 |
) |
Tangible assets
(non-GAAP) |
$ |
1,657,385 |
|
|
$ |
1,670,169 |
|
|
$ |
1,688,719 |
|
|
$ |
1,712,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity to total
assets (GAAP) |
8.73 |
% |
|
9.10 |
% |
|
9.31 |
% |
|
9.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to
tangible assets (non-GAAP) |
7.22 |
% |
|
7.60 |
% |
|
7.82 |
% |
|
7.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
21,507,132 |
|
|
21,943,160 |
|
|
22,164,707 |
|
|
22,127,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share
(GAAP) |
6.84 |
|
|
7.04 |
|
|
7.21 |
|
|
7.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share
(non-GAAP) |
5.56 |
|
|
5.78 |
|
|
5.96 |
|
|
5.86 |
|
Pre-tax, pre-provision
income |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(Dollars in thousands) |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|
|
September 30, 2022 |
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
5,194 |
|
$ |
4,652 |
|
$ |
6,430 |
|
|
$ |
9,846 |
|
$ |
12,185 |
|
Include: Provision for income taxes |
1,567 |
|
1,366 |
|
1,933 |
|
|
2,933 |
|
3,513 |
|
Include: Provision for (recapture of) loan losses |
- |
|
- |
|
(1,100 |
) |
|
- |
|
(2,700 |
) |
Pre-tax, pre-provision income (non-GAAP) |
$ |
6,761 |
|
$ |
6,018 |
|
$ |
7,263 |
|
|
$ |
12,779 |
|
$ |
12,998 |
|
Net interest margin reconciliation to core net interest
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(Dollars in thousands) |
September 30, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
$ |
13,431 |
|
|
$ |
12,661 |
|
|
$ |
12,376 |
|
|
$ |
26,092 |
|
|
$ |
23,660 |
|
Tax equivalent adjustment |
21 |
|
|
21 |
|
|
17 |
|
|
42 |
|
|
33 |
|
Net fees on loan prepayments |
(137 |
) |
|
(168 |
) |
|
(485 |
) |
|
(305 |
) |
|
(528 |
) |
Accretion on purchased MBank loans |
(49 |
) |
|
(37 |
) |
|
(89 |
) |
|
(86 |
) |
|
(160 |
) |
SBA PPP loans interest income and net fees |
- |
|
|
(101 |
) |
|
(928 |
) |
|
(101 |
) |
|
(1,820 |
) |
Income on excess FRB liquidity |
(716 |
) |
|
(366 |
) |
|
(129 |
) |
|
(1,082 |
) |
|
(206 |
) |
Adjusted net interest income
(non-GAAP) |
$ |
12,550 |
|
|
$ |
12,010 |
|
|
$ |
10,762 |
|
|
$ |
24,560 |
|
|
$ |
20,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(Dollars in thousands) |
September 30, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average balance of
interest-earning assets (GAAP) |
$ |
1,616,711 |
|
|
$ |
1,635,048 |
|
|
$ |
1,577,652 |
|
|
$ |
1,625,791 |
|
|
$ |
1,528,454 |
|
SBA PPP loans (average) |
- |
|
|
(1,546 |
) |
|
(46,169 |
) |
|
(774 |
) |
|
(63,140 |
) |
Excess FRB liquidity (average) |
(137,644 |
) |
|
(194,307 |
) |
|
(345,806 |
) |
|
(165,821 |
) |
|
(309,269 |
) |
Average balance of
interest-earning assets excluding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBA PPP loans and excess FRB liquidity (non-GAAP) |
$ |
1,479,067 |
|
|
$ |
1,439,195 |
|
|
$ |
1,185,677 |
|
|
$ |
1,459,196 |
|
|
$ |
1,156,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(GAAP) |
3.30 |
% |
|
3.11 |
% |
|
3.12 |
% |
|
3.21 |
% |
|
3.09 |
% |
Net fees on loan prepayments |
(0.03 |
) |
|
(0.04 |
) |
|
(0.13 |
) |
|
(0.04 |
) |
|
(0.07 |
) |
Accretion on purchased MBank loans |
(0.01 |
) |
|
(0.01 |
) |
|
(0.03 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
SBA PPP loans |
0.00 |
|
|
(0.02 |
) |
|
(0.15 |
) |
|
(0.01 |
) |
|
(0.11 |
) |
Excess FRB liquidity |
0.11 |
|
|
0.31 |
|
|
0.79 |
|
|
0.21 |
|
|
0.73 |
|
Core net interest margin
(non-GAAP) |
3.37 |
% |
|
3.35 |
% |
|
3.60 |
% |
|
3.36 |
% |
|
3.62 |
% |
Allowance for
loan losses reconciliation, excluding SBA purchased and PPP
loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
September 30, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2021 |
|
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
14,552 |
|
|
$ |
14,559 |
|
|
$ |
16,500 |
|
|
$ |
14,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable (GAAP) |
$ |
1,011,008 |
|
|
$ |
1,012,465 |
|
|
$ |
914,532 |
|
|
$ |
990,408 |
|
Exclude: Government Guaranteed loans |
(59,009 |
) |
|
(59,943 |
) |
|
(43,709 |
) |
|
(59,420 |
) |
Exclude: SBA PPP loans |
(11 |
) |
|
(11 |
) |
|
(32,666 |
) |
|
(3,085 |
) |
Loans receivable excluding
Government Guaranteed and SBA PPP loans (non-GAAP) |
$ |
951,988 |
|
|
$ |
952,511 |
|
|
$ |
838,157 |
|
|
$ |
927,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
loans receivable (GAAP) |
1.44 |
% |
|
1.44 |
% |
|
1.80 |
% |
|
1.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
loans receivable excluding Government Guaranteed and SBA PPP loans
(non-GAAP) |
1.53 |
% |
|
1.53 |
% |
|
1.97 |
% |
|
1.57 |
% |
Non-performing
loans reconciliation, excluding Government Guaranteed
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
(Dollars in thousands) |
September 30, 2022 |
|
|
June 30, 2022 |
|
|
September 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Non-performing loans (GAAP) |
$ |
20,979 |
|
|
$ |
27,534 |
|
|
$ |
490 |
|
Less: Non-performing Government Guaranteed loans |
(20,731 |
) |
|
(27,272 |
) |
|
(94 |
) |
Adjusted non-performing loans excluding Government Guaranteed loans
(non-GAAP) |
$ |
248 |
|
|
$ |
262 |
|
|
$ |
396 |
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total
loans (GAAP) |
2.08 |
% |
|
2.72 |
% |
|
0.05 |
% |
|
|
|
|
|
|
|
|
|
Non-performing loans,
excluding Government Guaranteed loans to total loans
(non-GAAP) |
0.02 |
% |
|
0.03 |
% |
|
0.04 |
% |
|
|
|
|
|
|
|
|
|
Non-performing loans to total
assets (GAAP) |
1.25 |
% |
|
1.62 |
% |
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
Non-performing loans,
excluding Government Guaranteed loans to total assets
(non-GAAP) |
0.01 |
% |
|
0.02 |
% |
|
0.02 |
% |
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 $1.68 billion at
September 30, 2022, it is the parent company of the 99-year-old
Riverview Bank, as well as Riverview Trust Company. The Bank offers
true community banking services, focusing on providing the highest
quality service and financial products to commercial and retail
clients through 17 branches, including 13 in the Portland-Vancouver
area, and 3 lending centers. For the past 9 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 effect of the
COVID-19 pandemic, including on our credit quality and business
operations, as well as the impact on general economic and financial
conditions and other uncertainties resulting from the COVID-19
pandemic, such as the extent and duration of the impact on public
health, the U.S. and global economies, and consumer and corporate
customers, including economic activity, employment levels and
market liquidity; 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 Federal Reserve and
our bank subsidiary by the Federal Deposit Insurance Corporation,
the Washington State Department of Financial Institutions, Division
of Banks 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 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 future goodwill impairment due to changes in
the Company’s business, changes in market conditions, including as
a result of the COVID-19 pandemic and other factors 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 2023 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) |
September 30, 2022 |
|
June 30, 2022 |
|
September 30, 2021 |
|
March 31, 2022 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (including interest-earning accounts of $89,957,
$127,859, |
$ |
114,183 |
|
|
$ |
141,836 |
|
|
$ |
368,122 |
|
|
$ |
241,424 |
|
$352,187 and $224,589) |
|
|
|
|
|
|
|
Certificate of deposits held for investment |
|
249 |
|
|
|
249 |
|
|
|
249 |
|
|
|
249 |
|
Investment securities: |
|
|
|
|
|
|
|
Available for sale, at estimated fair value |
|
213,708 |
|
|
|
181,697 |
|
|
|
278,224 |
|
|
|
165,782 |
|
Held to maturity, at amortized cost |
|
251,016 |
|
|
|
256,002 |
|
|
|
72,109 |
|
|
|
253,100 |
|
Loans receivable (net of allowance for loan losses of $14,552, |
|
|
|
|
|
|
|
$14,559, $16,500, and $14,523) |
|
996,456 |
|
|
|
997,906 |
|
|
|
898,032 |
|
|
|
975,885 |
|
Prepaid expenses and other assets |
|
12,868 |
|
|
|
26,897 |
|
|
|
11,681 |
|
|
|
12,396 |
|
Accrued interest receivable |
|
5,207 |
|
|
|
5,012 |
|
|
|
4,772 |
|
|
|
4,650 |
|
Federal Home Loan Bank stock, at cost |
|
2,019 |
|
|
|
2,019 |
|
|
|
1,722 |
|
|
|
2,019 |
|
Premises and equipment, net |
|
17,494 |
|
|
|
16,973 |
|
|
|
16,307 |
|
|
|
17,166 |
|
Financing lease right-of-use assets |
|
1,317 |
|
|
|
1,336 |
|
|
|
1,393 |
|
|
|
1,355 |
|
Deferred income taxes, net |
|
11,448 |
|
|
|
9,060 |
|
|
|
5,467 |
|
|
|
7,501 |
|
Mortgage servicing rights, net |
|
24 |
|
|
|
28 |
|
|
|
52 |
|
|
|
34 |
|
Goodwill |
|
27,076 |
|
|
|
27,076 |
|
|
|
27,076 |
|
|
|
27,076 |
|
Core deposit intangible, net |
|
437 |
|
|
|
466 |
|
|
|
557 |
|
|
|
495 |
|
Bank owned life insurance |
|
31,396 |
|
|
|
31,154 |
|
|
|
30,589 |
|
|
|
30,964 |
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
$ |
1,684,898 |
|
|
$ |
1,697,711 |
|
|
$ |
1,716,352 |
|
|
$ |
1,740,096 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
Deposits |
$ |
1,489,352 |
|
|
$ |
1,495,605 |
|
|
$ |
1,506,679 |
|
|
$ |
1,533,878 |
|
Accrued expenses and other liabilities |
|
18,327 |
|
|
|
18,026 |
|
|
|
20,165 |
|
|
|
19,298 |
|
Advance payments by borrowers for taxes and insurance |
|
925 |
|
|
|
523 |
|
|
|
650 |
|
|
|
555 |
|
Junior subordinated debentures |
|
26,875 |
|
|
|
26,854 |
|
|
|
26,791 |
|
|
|
26,833 |
|
Finance lease liability |
|
2,257 |
|
|
|
2,270 |
|
|
|
2,307 |
|
|
|
2,283 |
|
Total liabilities |
|
1,537,736 |
|
|
|
1,543,278 |
|
|
|
1,556,592 |
|
|
|
1,582,847 |
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY: |
|
|
|
|
|
|
|
Serial preferred stock, $.01 par value; 250,000 authorized, |
|
|
|
|
|
|
|
issued and outstanding, none |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common stock, $.01 par value; 50,000,000 authorized, |
|
|
|
|
|
|
|
September 30, 2022 – 21,507,132 issued and outstanding; |
|
|
|
|
|
|
|
June 30, 2022 – 21,154,170 issued and 21,943,160 outstanding; |
|
214 |
|
|
|
219 |
|
|
|
221 |
|
|
|
221 |
|
September 30, 2021 – 22,414,615 issued and 22,164,707
outstanding; |
|
|
|
|
|
|
March 31, 2022 – 22,155,636 issued and 22,127,396 outstanding; |
|
|
|
|
|
|
|
Additional paid-in capital |
|
57,233 |
|
|
|
60,838 |
|
|
|
62,122 |
|
|
|
62,048 |
|
Retained earnings |
|
112,167 |
|
|
|
108,266 |
|
|
|
97,727 |
|
|
|
104,931 |
|
Accumulated other comprehensive loss |
|
(22,452 |
) |
|
|
(14,890 |
) |
|
|
(310 |
) |
|
|
(9,951 |
) |
Total shareholders’ equity |
|
147,162 |
|
|
|
154,433 |
|
|
|
159,760 |
|
|
|
157,249 |
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,684,898 |
|
|
$ |
1,697,711 |
|
|
$ |
1,716,352 |
|
|
$ |
1,740,096 |
|
|
|
|
|
|
|
|
|
RIVERVIEW BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
(In thousands, except share data) (Unaudited) |
Sept. 30, 2022 |
June 30, 2022 |
Sept. 30, 2021 |
|
Sept. 30, 2022 |
Sept. 30, 2021 |
INTEREST
INCOME: |
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
11,068 |
$ |
10,897 |
$ |
11,626 |
|
|
$ |
21,965 |
$ |
22,402 |
|
Interest on investment securities - taxable |
|
2,172 |
|
1,834 |
|
1,136 |
|
|
|
4,006 |
|
2,135 |
|
Interest on investment securities - nontaxable |
|
65 |
|
66 |
|
55 |
|
|
|
131 |
|
105 |
|
Other interest and dividends |
|
783 |
|
397 |
|
148 |
|
|
|
1,180 |
|
243 |
|
Total interest and dividend income |
|
14,088 |
|
13,194 |
|
12,965 |
|
|
|
27,282 |
|
24,885 |
|
|
|
|
|
|
|
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
Interest on deposits |
|
327 |
|
281 |
|
399 |
|
|
|
608 |
|
841 |
|
Interest on borrowings |
|
330 |
|
252 |
|
190 |
|
|
|
582 |
|
384 |
|
Total interest expense |
|
657 |
|
533 |
|
589 |
|
|
|
1,190 |
|
1,225 |
|
Net interest
income |
|
13,431 |
|
12,661 |
|
12,376 |
|
|
|
26,092 |
|
23,660 |
|
Provision
for (recapture of) loan losses |
|
- |
|
- |
|
(1,100 |
) |
|
|
- |
|
(2,700 |
) |
|
|
|
|
|
|
|
Net interest
income after provision for (recapture of) loan losses |
|
13,431 |
|
12,661 |
|
13,476 |
|
|
|
26,092 |
|
26,360 |
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
Fees and service charges |
|
1,680 |
|
1,721 |
|
1,814 |
|
|
|
3,401 |
|
3,669 |
|
Asset management fees |
|
1,162 |
|
1,160 |
|
928 |
|
|
|
2,322 |
|
1,904 |
|
Bank owned life insurance ("BOLI") |
|
242 |
|
190 |
|
234 |
|
|
|
432 |
|
424 |
|
BOLI death benefit in excess of cash surrender value |
|
- |
|
- |
|
21 |
|
|
|
- |
|
500 |
|
Other, net |
|
50 |
|
55 |
|
77 |
|
|
|
105 |
|
165 |
|
Total non-interest income, net |
|
3,134 |
|
3,126 |
|
3,074 |
|
|
|
6,260 |
|
6,662 |
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
Salaries and employee benefits |
|
5,885 |
|
5,952 |
|
5,635 |
|
|
|
11,837 |
|
11,389 |
|
Occupancy and depreciation |
|
1,550 |
|
1,514 |
|
1,309 |
|
|
|
3,064 |
|
2,718 |
|
Data processing |
|
701 |
|
778 |
|
724 |
|
|
|
1,479 |
|
1,489 |
|
Amortization of core deposit intangible |
|
29 |
|
29 |
|
31 |
|
|
|
58 |
|
62 |
|
Advertising and marketing |
|
295 |
|
197 |
|
180 |
|
|
|
492 |
|
332 |
|
FDIC insurance premium |
|
119 |
|
116 |
|
113 |
|
|
|
235 |
|
208 |
|
State and local taxes |
|
218 |
|
191 |
|
221 |
|
|
|
409 |
|
419 |
|
Telecommunications |
|
55 |
|
50 |
|
55 |
|
|
|
105 |
|
101 |
|
Professional fees |
|
280 |
|
301 |
|
343 |
|
|
|
581 |
|
660 |
|
Gain on sale of premises and equipment, net |
|
- |
|
- |
|
(1,001 |
) |
|
|
- |
|
(993 |
) |
Other |
|
672 |
|
641 |
|
577 |
|
|
|
1,313 |
|
939 |
|
Total non-interest expense |
|
9,804 |
|
9,769 |
|
8,187 |
|
|
|
19,573 |
|
17,324 |
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES |
|
6,761 |
|
6,018 |
|
8,363 |
|
|
|
12,779 |
|
15,698 |
|
PROVISION
FOR INCOME TAXES |
|
1,567 |
|
1,366 |
|
1,933 |
|
|
|
2,933 |
|
3,513 |
|
NET
INCOME |
$ |
5,194 |
$ |
4,652 |
$ |
6,430 |
|
|
$ |
9,846 |
$ |
12,185 |
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
Basic |
$ |
0.24 |
$ |
0.21 |
$ |
0.29 |
|
|
$ |
0.45 |
$ |
0.55 |
|
Diluted |
$ |
0.24 |
$ |
0.21 |
$ |
0.29 |
|
|
$ |
0.45 |
$ |
0.55 |
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
Basic |
|
21,624,469 |
|
22,027,874 |
|
22,179,829 |
|
|
|
21,825,070 |
|
22,261,856 |
|
Diluted |
|
21,633,886 |
|
22,037,320 |
|
22,191,487 |
|
|
|
21,834,501 |
|
22,274,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
At or for
the three months ended |
|
At or for
the six months ended |
|
Sept. 30, 2022 |
|
June 30, 2022 |
|
Sept. 30, 2021 |
|
Sept. 30, 2022 |
|
Sept. 30, 2021 |
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
Average interest–earning assets |
$ |
1,616,711 |
|
|
$ |
1,635,048 |
|
|
$ |
1,577,652 |
|
|
$ |
1,625,791 |
|
$ |
1,528,454 |
Average
interest-bearing liabilities |
|
1,029,183 |
|
|
|
1,056,807 |
|
|
|
1,023,389 |
|
|
|
1,042,919 |
|
|
991,386 |
Net average
earning assets |
|
587,528 |
|
|
|
578,241 |
|
|
|
554,263 |
|
|
|
582,872 |
|
|
537,068 |
Average
loans |
|
1,002,925 |
|
|
|
995,066 |
|
|
|
902,971 |
|
|
|
999,017 |
|
|
914,006 |
Average
deposits |
|
1,501,534 |
|
|
|
1,518,961 |
|
|
|
1,469,311 |
|
|
|
1,510,199 |
|
|
1,421,462 |
Average
equity |
|
155,123 |
|
|
|
156,636 |
|
|
|
159,794 |
|
|
|
155,876 |
|
|
157,400 |
Average
tangible equity (non-GAAP) |
|
127,597 |
|
|
|
129,080 |
|
|
|
132,142 |
|
|
|
128,335 |
|
|
129,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
Sept. 30, 2022 |
|
June 30, 2022 |
|
Sept. 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
$ |
20,979 |
|
|
$ |
27,534 |
|
|
$ |
490 |
|
|
|
|
|
Non-performing loans excluding SBA Government Guarantee
(non-GAAP) |
|
248 |
|
|
|
262 |
|
|
|
396 |
|
|
|
|
|
Non-performing loans to total loans |
|
2.08 |
% |
|
|
2.72 |
% |
|
|
0.05 |
% |
|
|
|
|
Non-performing loans to total loans excluding SBA Government
Guarantee (non-GAAP) |
|
0.02 |
% |
|
|
0.03 |
% |
|
|
0.04 |
% |
|
|
|
|
Real
estate/repossessed assets owned |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
Non-performing assets |
$ |
20,979 |
|
|
$ |
27,534 |
|
|
$ |
490 |
|
|
|
|
|
Non-performing assets excluding SBA Government Guarantee
(non-GAAP) |
|
248 |
|
|
|
262 |
|
|
|
396 |
|
|
|
|
|
Non-performing assets to total assets |
|
1.25 |
% |
|
|
1.62 |
% |
|
|
0.03 |
% |
|
|
|
|
Non-performing assets to total assets excluding SBA Government
Guarantee (non-GAAP) |
|
0.01 |
% |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
|
|
Net loan
charge-offs (recoveries) in the quarter |
$ |
7 |
|
|
$ |
(36 |
) |
|
$ |
(10 |
) |
|
|
|
|
Net
charge-offs (recoveries) in the quarter/average net loans |
|
0.00 |
% |
|
|
(0.01 |
)% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
$ |
14,552 |
|
|
$ |
14,559 |
|
|
$ |
16,500 |
|
|
|
|
|
Average
interest-earning assets to average |
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
157.09 |
% |
|
|
154.72 |
% |
|
|
154.16 |
% |
|
|
|
|
Allowance
for loan losses to |
|
|
|
|
|
|
|
|
|
non-performing loans |
|
69.36 |
% |
|
|
52.88 |
% |
|
|
3367.35 |
% |
|
|
|
|
Allowance
for loan losses to total loans |
|
1.44 |
% |
|
|
1.44 |
% |
|
|
1.80 |
% |
|
|
|
|
Shareholders’ equity to assets |
|
8.73 |
% |
|
|
9.10 |
% |
|
|
9.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
Total
capital (to risk weighted assets) |
|
16.48 |
% |
|
|
16.31 |
% |
|
|
17.42 |
% |
|
|
|
|
Tier 1
capital (to risk weighted assets) |
|
15.23 |
% |
|
|
15.06 |
% |
|
|
16.16 |
% |
|
|
|
|
Common
equity tier 1 (to risk weighted assets) |
|
15.23 |
% |
|
|
15.06 |
% |
|
|
16.16 |
% |
|
|
|
|
Tier 1
capital (to average tangible assets) |
|
9.57 |
% |
|
|
9.29 |
% |
|
|
9.08 |
% |
|
|
|
|
Tangible
common equity (to average tangible assets) (non-GAAP) |
|
7.22 |
% |
|
|
7.60 |
% |
|
|
7.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX |
Sept. 30, 2022 |
|
June 30, 2022 |
|
Sept. 30, 2021 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
checking |
$ |
291,758 |
|
|
$ |
301,047 |
|
|
$ |
288,242 |
|
|
$ |
287,861 |
|
|
Regular
savings |
|
318,573 |
|
|
|
326,337 |
|
|
|
329,462 |
|
|
|
340,076 |
|
|
Money market
deposit accounts |
|
279,403 |
|
|
|
281,300 |
|
|
|
277,321 |
|
|
|
299,738 |
|
|
Non-interest
checking |
|
502,767 |
|
|
|
476,618 |
|
|
|
491,313 |
|
|
|
494,831 |
|
|
Certificates
of deposit |
|
96,851 |
|
|
|
110,303 |
|
|
|
120,341 |
|
|
|
111,372 |
|
|
Total deposits |
$ |
1,489,352 |
|
|
$ |
1,495,605 |
|
|
$ |
1,506,679 |
|
|
$ |
1,533,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
Commercial |
|
Real Estate |
|
Real Estate |
|
&
Construction |
|
Business |
|
Mortgage |
|
Construction |
|
Total |
September 30, 2022 |
(Dollars in
thousands) |
Commercial business |
$ |
236,306 |
|
$ |
- |
|
$ |
- |
|
$ |
236,306 |
SBA PPP |
|
11 |
|
|
- |
|
|
- |
|
|
11 |
Commercial
construction |
|
- |
|
|
- |
|
|
17,910 |
|
|
17,910 |
Office
buildings |
|
- |
|
|
117,303 |
|
|
- |
|
|
117,303 |
Warehouse/industrial |
|
- |
|
|
96,058 |
|
|
- |
|
|
96,058 |
Retail/shopping centers/strip malls |
|
- |
|
|
85,157 |
|
|
- |
|
|
85,157 |
Assisted
living facilities |
|
- |
|
|
562 |
|
|
- |
|
|
562 |
Single
purpose facilities |
|
- |
|
|
265,501 |
|
|
- |
|
|
265,501 |
Land |
|
- |
|
|
8,208 |
|
|
- |
|
|
8,208 |
Multi-family |
|
- |
|
|
58,367 |
|
|
- |
|
|
58,367 |
One-to-four
family construction |
|
- |
|
|
- |
|
|
19,848 |
|
|
19,848 |
Total |
$ |
236,317 |
|
$ |
631,156 |
|
$ |
37,758 |
|
$ |
905,231 |
|
|
|
|
|
|
|
|
March 31, 2022 |
|
|
|
|
|
|
|
Commercial
business |
$ |
225,006 |
|
$ |
- |
|
$ |
- |
|
$ |
225,006 |
SBA PPP |
|
3,085 |
|
|
- |
|
|
- |
|
|
3,085 |
Commercial
construction |
|
- |
|
|
- |
|
|
12,741 |
|
|
12,741 |
Office
buildings |
|
- |
|
|
124,690 |
|
|
- |
|
|
124,690 |
Warehouse/industrial |
|
- |
|
|
100,184 |
|
|
- |
|
|
100,184 |
Retail/shopping centers/strip malls |
|
- |
|
|
97,192 |
|
|
- |
|
|
97,192 |
Assisted
living facilities |
|
- |
|
|
663 |
|
|
- |
|
|
663 |
Single
purpose facilities |
|
- |
|
|
260,108 |
|
|
- |
|
|
260,108 |
Land |
|
- |
|
|
11,556 |
|
|
- |
|
|
11,556 |
Multi-family |
|
- |
|
|
60,211 |
|
|
- |
|
|
60,211 |
One-to-four
family construction |
|
- |
|
|
- |
|
|
11,419 |
|
|
11,419 |
Total |
$ |
228,091 |
|
$ |
654,604 |
|
$ |
24,160 |
|
$ |
906,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN
MIX |
Sept. 30, 2022 |
|
June 30, 2022 |
|
Sept. 30, 2021 |
|
March 31, 2022 |
Commercial
and construction |
|
|
|
|
|
|
|
Commercial business |
$ |
236,317 |
|
$ |
227,023 |
|
$ |
206,709 |
|
$ |
228,091 |
Other real estate mortgage |
|
631,156 |
|
|
647,363 |
|
|
623,423 |
|
|
654,604 |
Real estate construction |
|
37,758 |
|
|
30,754 |
|
|
13,621 |
|
|
24,160 |
Total commercial and construction |
|
905,231 |
|
|
905,140 |
|
|
843,753 |
|
|
906,855 |
Consumer |
|
|
|
|
|
|
|
Real estate one-to-four family |
|
104,163 |
|
|
105,775 |
|
|
69,079 |
|
|
82,006 |
Other installment |
|
1,614 |
|
|
1,550 |
|
|
1,700 |
|
|
1,547 |
Total consumer |
|
105,777 |
|
|
107,325 |
|
|
70,779 |
|
|
83,553 |
|
|
|
|
|
|
|
|
Total
loans |
|
1,011,008 |
|
|
1,012,465 |
|
|
914,532 |
|
|
990,408 |
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
Allowance for loan losses |
|
14,552 |
|
|
14,559 |
|
|
16,500 |
|
|
14,523 |
Loans receivable, net |
$ |
996,456 |
|
$ |
997,906 |
|
$ |
898,032 |
|
$ |
975,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
Southwest |
|
|
|
|
|
|
|
Washington |
|
Other |
|
Total |
|
|
September 30, 2022 |
(Dollars in
thousands) |
|
|
Commercial
business |
$ |
90 |
|
$ |
- |
|
$ |
90 |
|
|
Commercial
real estate |
|
111 |
|
|
- |
|
|
111 |
|
|
Consumer |
|
47 |
|
|
- |
|
|
47 |
|
|
Subtotal |
|
248 |
|
|
- |
|
|
248 |
|
|
|
|
|
|
|
|
|
|
Government
Guaranteed loans |
|
- |
|
|
20,731 |
|
|
20,731 |
|
|
Total
non-performing assets |
$ |
248 |
|
$ |
20,731 |
|
$ |
20,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
or for the three months ended |
|
At or for
the six months ended |
SELECTED
OPERATING DATA |
Sept. 30, 2022 |
|
June 30, 2022 |
|
Sept. 30, 2021 |
|
Sept. 30, 2022 |
|
Sept. 30, 2021 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
59.19 |
% |
|
|
61.88 |
% |
|
|
52.99 |
% |
|
|
60.50 |
% |
|
|
57.13 |
% |
Coverage
ratio (6) |
|
137.00 |
% |
|
|
129.60 |
% |
|
|
151.17 |
% |
|
|
133.31 |
% |
|
|
136.57 |
% |
Return on
average assets (1) |
|
1.21 |
% |
|
|
1.08 |
% |
|
|
1.52 |
% |
|
|
1.15 |
% |
|
|
1.49 |
% |
Return on
average equity (1) |
|
13.28 |
% |
|
|
11.91 |
% |
|
|
15.96 |
% |
|
|
12.60 |
% |
|
|
15.44 |
% |
Return on
average tangible equity (1) (non-GAAP) |
|
16.15 |
% |
|
|
14.46 |
% |
|
|
19.31 |
% |
|
|
15.30 |
% |
|
|
18.73 |
% |
|
|
|
|
|
|
|
|
|
|
NET INTEREST
SPREAD |
|
|
|
|
|
|
|
|
|
Yield on
loans |
|
4.38 |
% |
|
|
4.39 |
% |
|
|
5.11 |
% |
|
|
4.39 |
% |
|
|
4.89 |
% |
Yield on
investment securities |
|
1.89 |
% |
|
|
1.74 |
% |
|
|
1.47 |
% |
|
|
1.82 |
% |
|
|
1.50 |
% |
Total yield on interest-earning assets |
|
3.46 |
% |
|
|
3.24 |
% |
|
|
3.26 |
% |
|
|
3.35 |
% |
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of
interest-bearing deposits |
|
0.13 |
% |
|
|
0.11 |
% |
|
|
0.16 |
% |
|
|
0.12 |
% |
|
|
0.17 |
% |
Cost of FHLB
advances and other borrowings |
|
4.49 |
% |
|
|
3.47 |
% |
|
|
2.59 |
% |
|
|
3.99 |
% |
|
|
2.63 |
% |
Total cost of interest-bearing liabilities |
|
0.25 |
% |
|
|
0.20 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
Spread
(7) |
|
3.21 |
% |
|
|
3.04 |
% |
|
|
3.03 |
% |
|
|
3.12 |
% |
|
|
3.00 |
% |
Net interest
margin |
|
3.30 |
% |
|
|
3.11 |
% |
|
|
3.12 |
% |
|
|
3.21 |
% |
|
|
3.09 |
% |
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
Basic
earnings per share (2) |
$ |
0.24 |
|
|
$ |
0.21 |
|
|
$ |
0.29 |
|
|
$ |
0.45 |
|
|
$ |
0.55 |
|
Diluted
earnings per share (3) |
|
0.24 |
|
|
|
0.21 |
|
|
|
0.29 |
|
|
|
0.45 |
|
|
|
0.55 |
|
Book value
per share (5) |
|
6.84 |
|
|
|
7.04 |
|
|
|
7.21 |
|
|
|
6.84 |
|
|
|
7.21 |
|
Tangible
book value per share (5) (non-GAAP) |
|
5.56 |
|
|
|
5.78 |
|
|
|
5.96 |
|
|
|
5.56 |
|
|
|
5.96 |
|
Market price
per share: |
|
|
|
|
|
|
|
|
|
High for the period |
$ |
7.67 |
|
|
$ |
7.56 |
|
|
$ |
7.60 |
|
|
$ |
7.67 |
|
|
$ |
7.60 |
|
Low for the period |
|
6.18 |
|
|
|
6.09 |
|
|
|
6.76 |
|
|
|
6.09 |
|
|
|
6.47 |
|
Close for period end |
|
6.35 |
|
|
|
6.58 |
|
|
|
7.27 |
|
|
|
6.35 |
|
|
|
7.27 |
|
Cash
dividends declared per share |
|
0.0600 |
|
|
|
0.0600 |
|
|
|
0.0550 |
|
|
|
0.1200 |
|
|
|
0.1050 |
|
|
|
|
|
|
|
|
|
|
|
Average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic (2) |
|
21,624,469 |
|
|
|
22,027,874 |
|
|
|
22,179,829 |
|
|
|
21,825,070 |
|
|
|
22,261,856 |
|
Diluted (3) |
|
21,633,886 |
|
|
|
22,037,320 |
|
|
|
22,191,487 |
|
|
|
21,834,501 |
|
|
|
22,274,668 |
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts for the periods shown are annualized.(2)
Amounts exclude ESOP shares not committed to be released.(3)
Amounts exclude ESOP shares not committed to be released and
include common stock equivalents.(4) Non-interest expense
divided by net interest income and non-interest income.(5)
Amounts calculated based on shareholders’ equity and include ESOP
shares not committed to be released.(6) Net interest income
divided by non-interest expense.(7) Yield on interest-earning
assets less cost of funds on interest-bearing liabilities.
Note: Transmitted on Globe Newswire on October
27, 2022, at 1:00 p.m. PDT.
Contact: Kevin
Lycklama or David Lam Riverview Bancorp, Inc.
360-693-6650
Riverview Bancorp (NASDAQ:RVSB)
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