Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today reported earnings of $3.0 million, or $0.14 per
diluted share, in the fourth fiscal quarter ended March 31, 2023,
compared to $5.2 million, or $0.24 per diluted share, in the third
fiscal quarter ended December 31, 2022, and $4.1 million, or $0.19
per diluted share, in the fourth fiscal quarter a year ago. The
fourth fiscal quarter of 2023 included a $750,000 provision for
loan losses. This compared to no provision for loan losses in the
preceding quarter, and a $650,000 recapture of a provision for loan
losses in the fourth fiscal quarter a year ago.
For fiscal 2023, net income was $18.1 million,
or $0.83 per diluted share, compared to $21.8 million, or $0.98 per
diluted share, in fiscal 2022. Fiscal 2023 results included a
$750,000 provision for loan losses, compared to a $4.6 million
recapture of a provision for loan losses in fiscal 2022.
“We closed out our fiscal fourth quarter and
fiscal year end with strong results despite the challenges across
the entire banking industry,” stated Kevin Lycklama, president and
chief executive officer. “We have served our communities for the
past 100 years through a conservative operating methodology while
managing our risk profile to ensure a safe and sound approach to
banking. The continued rise in interest rates, coupled with a
slowing economic outlook, has had an impact on our banking
operations. Our capital levels and excess liquidity positions
remain strong, and together with revenue generation and stable
credit quality, we have a solid foundation upon which to continue
to grow in fiscal 2024.”
Fourth Quarter Highlights (at or for the
period ended March 31, 2023)
- Net income was $3.0 million, or
$0.14 per diluted share.
- Pre-tax, pre-provision for loan
losses income (non-GAAP) was $4.8 million for the quarter, compared
to $6.8 million for the preceding quarter, and unchanged compared
to the year ago quarter.
- Net interest income was $11.8
million for the quarter, compared to $13.7 million in the preceding
quarter and $11.9 million in the fourth fiscal quarter a year
ago.
- Net interest margin (“NIM”) was 3.16% for the quarter, compared
to 3.48% in the preceding quarter and 2.98% for the year ago
quarter.
- Return on average assets was 0.76% and return on average equity
was 7.80%.
- Riverview recorded a $750,000
provision for loan losses during the current quarter, compared to
no provision for loan losses during the preceding quarter, and a
$650,000 recapture of a provision for loan losses in the fourth
fiscal quarter a year ago.
- The allowance for loan losses was
$15.3 million, or 1.52% of total loans.
- Total loans were $1.01 billion at
March 31, 2023, compared to $1.02 billion three months earlier and
$990.4 million a year ago.
- Asset quality remained strong, with
non-performing loans excluding SBA and USDA government guaranteed
loans (non-GAAP) at $265,000, or 0.02% of total assets at March 31,
2023.
- Total deposits decreased to $1.27
billion compared to $1.37 billion three months earlier.
- Riverview has approximately $249.0
million in available liquidity at March 31, 2023, including $191.6
million of borrowing capacity from Federal Home Loan Bank of Des
Moines (“FHLB”) and $57.4 million from the Federal Reserve Bank of
San Francisco (“FRB”). Riverview has access but has yet to utilize
the Federal Reserve Bank’s Bank Term Funding Program. At March 31,
2023, the Bank had $123.8 million in outstanding FHLB
borrowings.
- The uninsured deposit ratio was
18.0% at March 31, 2023.
- Total risk-based capital ratio was
16.94% and Tier 1 leverage ratio was 10.47%.
- Paid a quarterly cash dividend
during the quarter of $0.06 per share.
Income Statement Review
Riverview’s net interest income was $11.8
million in the current quarter, compared to $13.7 million in the
preceding quarter, and $11.9 million in the fourth fiscal quarter a
year ago. The decrease in net interest income compared to the prior
quarter was driven primarily by an increase in interest expense on
deposits and borrowings. Prior year net interest income also
included interest and fee income earned on PPP loans and net fees
on loan prepayments. The adjusted net interest income (non-GAAP)
was $11.6 million in the current quarter compared to $13.3 million
in the preceding quarter and $11.1 million in the fourth fiscal
quarter a year ago. In fiscal 2023, net interest income increased
to $51.6 million compared to $47.6 million in fiscal 2022.
During the fourth quarter and the third 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 $440,000 of interest and net fee
income on PPP loans during the fourth quarter of the prior
year.
Riverview’s NIM was 3.16% for the fourth quarter
of fiscal 2023, a 32 basis-point contraction compared to 3.48% in
the preceding quarter and an 18 basis-point increase compared to
2.98% in the fourth quarter of fiscal 2022. “We experienced NIM
contraction during the current quarter, compared to the prior
quarter, as the rising cost of funds outpaced earning asset
yields,” said David Lam, executive vice president and chief
financial officer. In fiscal 2023, NIM expanded 23 basis points to
3.26% compared to 3.03% in fiscal 2022.
Investment securities totaled $455.3 million at
March 31, 2023, compared to $458.9 million at December 31, 2022.
The average securities balances for the quarters ended March 31,
2023, December 31, 2022, and March 31, 2022, were $483.3 million,
$491.2 million, and $410.4 million, respectively. The weighted
average yields on securities balances for those same periods were
2.07%, 2.01%, and 1.63%, respectively. The duration of the
investment portfolio at March 31, 2023 was approximately 5.2 years.
The anticipated investment cashflows over the next twelve months is
approximately $40.8 million.
Riverview’s yield on loans were 4.50% during
both the fourth fiscal quarter, and the preceding quarter, compared
to 4.43% in the fourth fiscal quarter a year ago. Deposit costs
increased to 0.19% during the fourth fiscal quarter compared to
0.08% in the preceding quarter, and in the fourth fiscal quarter a
year ago.
Non-interest income was unchanged at $3.0
million during the fourth fiscal quarter compared to both the
preceding quarter and the fourth fiscal quarter of 2022. Brokered
loan fees have slowed due to the decrease in mortgage activity and
rising interest rates. In fiscal 2023, non-interest income was
$12.2 million compared to $12.7 million in fiscal 2022, which
included a one-time BOLI payout of $500,000.
Asset management fees increased to $1.3 million
during the fourth fiscal quarter compared to $1.1 million in the
preceding quarter, and in the fourth fiscal quarter a year ago.
Riverview Trust Company’s assets under management were $890.6
million at March 31, 2023, compared to $855.9 million at December
31, 2022 and $1.3 billion at March 31, 2022. The decrease
compared to a year ago was the result of a single large client’s
planned conclusion of trust services.
Non-interest expense was $10.0 million during
the fourth quarter, compared to $9.8 million in the preceding
quarter and $10.1 million in the fourth fiscal quarter a year ago.
In fiscal 2023, non-interest expense was $39.4 million compared to
$36.7 million in fiscal 2022. The prior year period included a $1.0
million gain on sale of a building. Salary and employee benefits
increased modestly during the quarter and for the year due to wage
pressures and the competitive landscape for attracting and
retaining employees. Occupancy and depreciation expense increased
due to the Company’s rebranding effort in addition to updates and
modernization initiatives completed at our facilities. The increase
in the FDIC insurance premiums was the result of an increase in the
FDIC deposit insurance assessment rate effective January 1, 2023.
Advertising and marketing expenses were higher as Riverview
expanded its efforts in promoting customer acquisition and branding
in the community. The efficiency ratio was 67.3% for the fourth
fiscal quarter compared to 59.1% in the preceding quarter and 68.0%
in the fourth fiscal quarter a year ago.
Return on average assets was 0.76% in the fourth
quarter of fiscal 2023 compared to 1.27% in the preceding quarter.
Return on average equity and return on average tangible equity
(non-GAAP) were 7.80% and 9.48%, respectively, compared to 13.85%
and 16.96%, respectively, for the prior quarter.
Riverview’s effective tax rate for the fourth
quarter of fiscal 2023 was 27.0%, compared to 23.1% for the
preceding quarter and 23.7% for the year ago quarter. The effective
tax rate for fiscal 2023 was 23.7% compared to 22.8% for fiscal
2022. The effective tax rate for both the fourth quarter of fiscal
2023 as well as for fiscal 2023 was affected by the apportioned
income for state and local jurisdictions where we do business.
Balance Sheet Review
Total loans were $1.01 billion at March 31,
2023, compared to $1.02 billion three months earlier and $990.4
million a year ago. The decrease compared to the prior quarter was
mainly due to normal amortization and loan payoffs. Riverview’s
loan pipeline totaled $54.5 million at March 31, 2023, compared to
$27.3 million at the end of the prior quarter. New loan
originations during the quarter totaled $20.8 million compared to
$28.9 million in the preceding quarter and $92.9 million in the
fourth quarter a year ago.
Undisbursed construction loans totaled $36.8
million at March 31, 2023, compared to $44.0 million at December
31, 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 $23.2 million at March 31,
2023, compared to $25.0 million at December 31, 2022. Revolving
commercial business loan commitments totaled $62.5 million at March
31, 2023, compared to $63.5 million three months earlier.
Utilization on these loans totaled 20.3% at March 31, 2023,
compared to 19.3% at December 31, 2022. The weighted average rate
on loan originations during the quarter was 6.80% compared to 5.75%
in the preceding quarter.
The office building loan portfolio totaled
$117.0 million at March 31, 2023 compared to $124.7 million a year
ago. The average loan balance of this loan portfolio was $1.4
million and had an average loan-to-value ratio of 56.6% and an
average debt service coverage ratio of 1.96%.
Total deposits were $1.27 billion at March 31,
2023, compared to $1.37 billion at December 31, 2022 and $1.53
billion a year ago. The decrease was attributed to deposit pricing
pressures and customers seeking out higher yielding investment
alternatives, including Riverview Trust Company’s money market
accounts. Non-interest checking and interest checking accounts, as
a percentage of total deposits, totaled 52.1% at March 31,
2023.
FHLB advances were $123.8 million at March 31,
2023 and were comprised of overnight advances and a short-term
borrowing. This compared to $32.3 million at December 31, 2022 and
no outstanding FHLB advances a year earlier. These FHLB advances
were utilized to partially offset the decrease in deposit balances.
The Bank Term Funding Program (BTFP) was created by the Federal
Reserve to support and make additional funding available to
eligible depository institutions to help banks meet the needs of
their depositors. Riverview has registered and is eligible to
utilize the BTFP. Riverview does not intend to utilize the BTFP,
but could do so should the need arise.
Shareholders’ equity was $155.2 million at March
31, 2023, compared to $152.0 million three months earlier and
$157.2 million a year earlier. The decrease in shareholders’ equity
at March 31, 2023, compared to a year ago was primarily due to a
$8.4 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 over the last
few quarters offset by net income of $18.1 million. Tangible book
value per share (non-GAAP) was $6.02 at March 31, 2023, compared to
$5.79 at December 31, 2022, and $5.86 at March 31, 2022.
Riverview paid a quarterly cash dividend to $0.06 per share on
April 20, 2023, to shareholders of record on April 10,
2023.
Credit Quality
Asset quality remained strong, with
non-performing loans, excluding SBA and USDA government guaranteed
loans (“government guaranteed loans”) (non-GAAP), at $265,000, or
0.03% of total loans as of March 31, 2023, compared to $236,000, or
0.02% of total loans at December 31, 2022, and $273,000, or 0.03%
of total loans at March 31, 2022. Including government guaranteed
loans, non-performing assets were $1.9 million, or 0.12% of total
assets, at March 31, 2023, compared to $12.6 million, or 0.79% of
total assets, three months earlier and $22.1 million, or 1.27% of
total assets, at March 31, 2022. The $1.9 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. During the quarter, these
non-performing government guaranteed loan balances were reduced
significantly by $10.8 million. The Company continues to work
through the reconciliation of the remaining two government
guaranteed loans with the third-party servicer.
Riverview recorded net loan recoveries of $1,000
during the fourth fiscal quarter. This compared to net loan
recoveries of $6,000 for the preceding quarter. Riverview recorded
a provision for loan losses of $750,000 for the fourth fiscal
quarter as a result of a downgrade in a mixed use office building
located in downtown Portland. This loan remains well secured with a
loan-to-value of approximately 36%. The Company does not expect to
recognize any loss on this loan. Although commercial real estate
has come under additional scrutiny and focus, Riverview has taken
additional steps in reviewing its office building loan portfolio
and is comfortable with the current credit quality and performance.
Although Riverview recorded a provision for loan losses, credit
quality remains strong and supported by conservative underwriting
standards. This compared to no provision for loan losses for the
third fiscal quarter, and a $650,000 recapture of a provision for
loan losses in the fourth fiscal quarter a year ago.
Classified assets were $2.6 million at March 31,
2023, compared to $6.2 million at December 31, 2022, and $6.4
million at March 31, 2022. The classified asset to total capital
ratio was 1.5% at March 31, 2023, compared to 3.5% three months
earlier and 3.8% a year earlier. Criticized assets were $19.1
million at March 31, 2023, compared to $3.5 million at December 31,
2022 and $7.8 million at March 31, 2022. The increase in criticized
assets during the current quarter was due to the above mentioned
single lending relationship downgrade on a Downtown Portland mixed
use office building with a very low loan-to-value. Riverview
believes the property downgrade is isolated and not a systemic
credit issue.
The allowance for loan losses was $15.3 million
at March 31, 2023, compared to $14.6 million at December 31, 2022,
and $14.5 million one year earlier. The allowance for loan losses
represented 1.52% of total loans at March 31, 2023, compared
to 1.43% at December 31, 2022, and 1.47% a year earlier. The
allowance for loan losses to loans, net of SBA guaranteed loans
(including SBA purchased and PPP loans) (non-GAAP), was 1.61% at
March 31, 2023, compared to 1.52% at December 31, 2022, and
1.57% 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 $228,000 at
March 31, 2023, compared to $255,000 three months
earlier.
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 16.94%
and a Tier 1 leverage ratio of 10.47% at March 31, 2023. Tangible
common equity to average tangible assets ratio (non-GAAP) was 8.18%
at March 31, 2023.
Stock Repurchase Program
During the fourth fiscal quarter of 2023, the
Company repurchased 274,375 shares at an average price of $6.71 per
share. Approximately $577,000 remains available to repurchase
common stock under the current repurchase plan, which expires on
May 28, 2023.
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) |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (GAAP) |
$ |
155,239 |
|
|
$ |
152,025 |
|
|
$ |
157,249 |
|
|
|
|
|
|
Exclude: Goodwill |
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
|
|
Exclude: Core deposit intangible, net |
|
(379 |
) |
|
|
(408 |
) |
|
|
(495 |
) |
|
|
|
|
|
Tangible
shareholders' equity (non-GAAP) |
$ |
127,784 |
|
|
$ |
124,541 |
|
|
$ |
129,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
(GAAP) |
$ |
1,589,712 |
|
|
$ |
1,598,734 |
|
|
$ |
1,740,096 |
|
|
|
|
|
|
Exclude: Goodwill |
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
|
|
Exclude: Core deposit intangible, net |
|
(379 |
) |
|
|
(408 |
) |
|
|
(495 |
) |
|
|
|
|
|
Tangible
assets (non-GAAP) |
$ |
1,562,257 |
|
|
$ |
1,571,250 |
|
|
$ |
1,712,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity to total assets (GAAP) |
|
9.77 |
% |
|
|
9.51 |
% |
|
|
9.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity to tangible assets (non-GAAP) |
|
8.18 |
% |
|
|
7.93 |
% |
|
|
7.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding |
|
21,221,960 |
|
|
|
21,496,335 |
|
|
|
22,127,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per share (GAAP) |
|
7.32 |
|
|
|
7.07 |
|
|
|
7.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
book value per share (non-GAAP) |
|
6.02 |
|
|
|
5.79 |
|
|
|
5.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision income |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
(Dollars in
thousands) |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
$ |
2,983 |
|
|
$ |
5,240 |
|
|
$ |
4,125 |
|
|
$ |
18,069 |
|
|
$ |
21,820 |
|
|
Include: Provision for income taxes |
|
1,102 |
|
|
|
1,575 |
|
|
|
1,282 |
|
|
|
5,610 |
|
|
|
6,456 |
|
|
Include: Provision for (recapture of) loan losses |
|
750 |
|
|
|
- |
|
|
|
(650 |
) |
|
|
750 |
|
|
|
(4,625 |
) |
|
Pre-tax,
pre-provision income (non-GAAP) |
$ |
4,835 |
|
|
$ |
6,815 |
|
|
$ |
4,757 |
|
|
$ |
24,429 |
|
|
$ |
23,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin reconciliation to core net interest
margin |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
(Dollars in
thousands) |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (GAAP) |
$ |
11,814 |
|
|
$ |
13,700 |
|
|
$ |
11,906 |
|
|
$ |
51,606 |
|
|
$ |
47,625 |
|
|
Tax equivalent adjustment |
|
21 |
|
|
|
21 |
|
|
|
21 |
|
|
|
83 |
|
|
|
75 |
|
|
Net fees on loan prepayments |
|
(89 |
) |
|
|
(111 |
) |
|
|
(144 |
) |
|
|
(504 |
) |
|
|
(922 |
) |
|
Accretion on purchased MBank loans |
|
(27 |
) |
|
|
(30 |
) |
|
|
(127 |
) |
|
|
(143 |
) |
|
|
(351 |
) |
|
SBA PPP loans interest income and net fees |
|
- |
|
|
|
- |
|
|
|
(440 |
) |
|
|
(102 |
) |
|
|
(3,041 |
) |
|
Income on excess FRB liquidity |
|
(125 |
) |
|
|
(330 |
) |
|
|
(109 |
) |
|
|
(1,536 |
) |
|
|
(429 |
) |
|
Adjusted net
interest income (non-GAAP) |
$ |
11,594 |
|
|
$ |
13,250 |
|
|
$ |
11,107 |
|
|
$ |
49,404 |
|
|
$ |
42,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
(Dollars in
thousands) |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance of interest-earning assets (GAAP) |
$ |
1,518,641 |
|
|
$ |
1,564,143 |
|
|
$ |
1,623,660 |
|
|
$ |
1,583,831 |
|
|
$ |
1,575,068 |
|
|
SBA PPP loans (average) |
|
(9 |
) |
|
|
(10 |
) |
|
|
(6,794 |
) |
|
|
(393 |
) |
|
|
(39,326 |
) |
|
Excess FRB liquidity (average) |
|
(15,951 |
) |
|
|
(50,881 |
) |
|
|
(236,572 |
) |
|
|
(99,895 |
) |
|
|
(290,882 |
) |
|
Average
balance of interest-earning assets excluding |
|
|
|
|
|
|
|
|
|
|
SBA PPP loans and excess FRB liquidity (non-GAAP) |
$ |
1,502,681 |
|
|
$ |
1,513,252 |
|
|
$ |
1,380,294 |
|
|
$ |
1,483,543 |
|
|
$ |
1,244,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (GAAP) |
|
3.16 |
|
% |
|
3.48 |
|
% |
|
2.98 |
|
% |
|
3.26 |
|
% |
|
3.03 |
|
% |
Net fees on loan prepayments |
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
|
|
(0.03 |
) |
|
|
(0.06 |
) |
|
Accretion on purchased MBank loans |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
SBA PPP loans |
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.09 |
) |
|
|
0.00 |
|
|
|
(0.12 |
) |
|
Excess FRB liquidity |
|
0.00 |
|
|
|
0.03 |
|
|
|
0.44 |
|
|
|
0.11 |
|
|
|
0.62 |
|
|
Core net
interest margin (non-GAAP) |
|
3.13 |
|
% |
|
3.47 |
|
% |
|
3.26 |
|
% |
|
3.33 |
|
% |
|
3.45 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses reconciliation, excluding SBA
purchased and PPP loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
$ |
15,309 |
|
|
$ |
14,558 |
|
|
$ |
14,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable (GAAP) |
$ |
1,008,856 |
|
|
$ |
1,016,513 |
|
|
$ |
990,408 |
|
|
|
|
|
|
Exclude: Government Guaranteed loans |
|
(55,488 |
) |
|
|
(57,102 |
) |
|
|
(59,420 |
) |
|
|
|
|
|
Exclude: SBA PPP loans |
|
(9 |
) |
|
|
(10 |
) |
|
|
(3,085 |
) |
|
|
|
|
|
Loans
receivable excluding Government Guaranteed and SBA PPP loans
(non-GAAP) |
$ |
953,359 |
|
|
$ |
959,401 |
|
|
$ |
927,903 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to loans receivable (GAAP) |
|
1.52 |
% |
|
|
1.43 |
% |
|
|
1.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to loans receivable excluding Government Guaranteed
and SBA PPP loans (non-GAAP) |
|
1.61 |
% |
|
|
1.52 |
% |
|
|
1.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans reconciliation, excluding Government
Guaranteed Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
(Dollars in
thousands) |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans (GAAP) |
$ |
1,852 |
|
|
$ |
12,613 |
|
|
$ |
22,099 |
|
|
|
|
|
|
Less: Non-performing Government Guaranteed loans |
|
(1,587 |
) |
|
|
(12,377 |
) |
|
|
(21,826 |
) |
|
|
|
|
|
Adjusted
non-performing loans excluding Government Guaranteed loans
(non-GAAP) |
$ |
265 |
|
|
$ |
236 |
|
|
$ |
273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans (GAAP) |
|
0.18 |
% |
|
|
1.24 |
% |
|
|
2.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans, excluding Government Guaranteed loans to
total loans (non-GAAP) |
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total assets (GAAP) |
|
0.12 |
% |
|
|
0.79 |
% |
|
|
1.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans, excluding Government Guaranteed loans to
total assets (non-GAAP) |
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
|
|
|
About Riverview
RiverviewBancorp, Inc. (www.riverviewbank.com)
is headquartered in Vancouver, Washington – just north of Portland,
Oregon, on the I-5 corridor. With assets of $1.59 billion at March
31, 2023, 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) |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash (including interest-earning accounts of $10,397, $8,897, |
$ |
22,044 |
|
|
$ |
24,337 |
|
|
$ |
241,424 |
|
and $224,589) |
|
|
|
|
|
Certificate of deposits held for investment |
|
249 |
|
|
|
249 |
|
|
|
249 |
|
Investment securities: |
|
|
|
|
|
Available for sale, at estimated fair value |
|
211,499 |
|
|
|
211,706 |
|
|
|
165,782 |
|
Held to maturity, at amortized cost |
|
243,843 |
|
|
|
247,147 |
|
|
|
253,100 |
|
Loans receivable (net of allowance for loan losses of $15,309, |
|
|
|
|
|
$14,558 and $14,523) |
|
993,547 |
|
|
|
1,001,955 |
|
|
|
975,885 |
|
Prepaid expenses and other assets |
|
15,950 |
|
|
|
12,533 |
|
|
|
12,396 |
|
Accrued interest receivable |
|
4,790 |
|
|
|
5,727 |
|
|
|
4,650 |
|
Federal Home Loan Bank stock, at cost |
|
6,867 |
|
|
|
3,309 |
|
|
|
2,019 |
|
Premises and equipment, net |
|
20,119 |
|
|
|
20,220 |
|
|
|
17,166 |
|
Financing lease right-of-use assets |
|
1,278 |
|
|
|
1,298 |
|
|
|
1,355 |
|
Deferred income taxes, net |
|
10,286 |
|
|
|
11,166 |
|
|
|
7,501 |
|
Mortgage servicing rights, net |
|
- |
|
|
|
13 |
|
|
|
34 |
|
Goodwill |
|
27,076 |
|
|
|
27,076 |
|
|
|
27,076 |
|
Core deposit intangible, net |
|
379 |
|
|
|
408 |
|
|
|
495 |
|
Bank owned life insurance |
|
31,785 |
|
|
|
31,590 |
|
|
|
30,964 |
|
|
|
|
|
|
|
TOTAL
ASSETS |
$ |
1,589,712 |
|
|
$ |
1,598,734 |
|
|
$ |
1,740,096 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits |
$ |
1,265,217 |
|
|
$ |
1,365,997 |
|
|
$ |
1,533,878 |
|
Accrued expenses and other liabilities |
|
15,730 |
|
|
|
18,966 |
|
|
|
19,298 |
|
Advance payments by borrowers for taxes and insurance |
|
625 |
|
|
|
343 |
|
|
|
555 |
|
Junior subordinated debentures |
|
26,918 |
|
|
|
26,896 |
|
|
|
26,833 |
|
Federal Home Loan Bank advances |
|
123,754 |
|
|
|
32,264 |
|
|
|
- |
|
Finance lease liability |
|
2,229 |
|
|
|
2,243 |
|
|
|
2,283 |
|
Total liabilities |
|
1,434,473 |
|
|
|
1,446,709 |
|
|
|
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, |
|
|
|
|
|
March 31, 2023 – 21,221,960 issued and outstanding; |
|
|
|
|
|
December 31, 2022 – 21,496,335 issued and outstanding; |
|
212 |
|
|
|
214 |
|
|
|
221 |
|
March 31, 2022 – 22,155,636 issued and 22,127,396 outstanding; |
|
|
|
|
|
Additional paid-in capital |
|
55,511 |
|
|
|
57,252 |
|
|
|
62,048 |
|
Retained earnings |
|
117,826 |
|
|
|
116,117 |
|
|
|
104,931 |
|
Accumulated other comprehensive loss |
|
(18,310 |
) |
|
|
(21,558 |
) |
|
|
(9,951 |
) |
Total shareholders’ equity |
|
155,239 |
|
|
|
152,025 |
|
|
|
157,249 |
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,589,712 |
|
|
$ |
1,598,734 |
|
|
$ |
1,740,096 |
|
RIVERVIEW BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve
Months Ended |
(In thousands, except share data) (Unaudited) |
March 31, 2023 |
Dec. 31, 2022 |
March 31, 2022 |
|
March 31, 2023 |
March 31, 2022 |
INTEREST
INCOME: |
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
11,248 |
$ |
11,531 |
$ |
10,631 |
|
|
$ |
44,744 |
$ |
44,079 |
|
Interest on investment securities - taxable |
|
2,381 |
|
2,397 |
|
1,563 |
|
|
|
8,784 |
|
5,001 |
|
Interest on investment securities - nontaxable |
|
65 |
|
66 |
|
66 |
|
|
|
262 |
|
237 |
|
Other interest and dividends |
|
247 |
|
449 |
|
129 |
|
|
|
1,876 |
|
508 |
|
Total interest and dividend income |
|
13,941 |
|
14,443 |
|
12,389 |
|
|
|
55,666 |
|
49,825 |
|
|
|
|
|
|
|
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
Interest on deposits |
|
605 |
|
289 |
|
283 |
|
|
|
1,502 |
|
1,424 |
|
Interest on borrowings |
|
1,522 |
|
454 |
|
200 |
|
|
|
2,558 |
|
776 |
|
Total interest expense |
|
2,127 |
|
743 |
|
483 |
|
|
|
4,060 |
|
2,200 |
|
Net interest
income |
|
11,814 |
|
13,700 |
|
11,906 |
|
|
|
51,606 |
|
47,625 |
|
Provision
for (recapture of) loan losses |
|
750 |
|
- |
|
(650 |
) |
|
|
750 |
|
(4,625 |
) |
|
|
|
|
|
|
|
Net interest
income after provision for (recapture of) loan losses |
|
11,064 |
|
13,700 |
|
12,556 |
|
|
|
50,856 |
|
52,250 |
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
Fees and service charges |
|
1,459 |
|
1,502 |
|
1,681 |
|
|
|
6,362 |
|
7,109 |
|
Asset management fees |
|
1,275 |
|
1,137 |
|
1,067 |
|
|
|
4,734 |
|
4,107 |
|
Bank owned life insurance ("BOLI") |
|
195 |
|
194 |
|
187 |
|
|
|
821 |
|
800 |
|
BOLI death benefit in excess of cash surrender value |
|
- |
|
- |
|
- |
|
|
|
- |
|
500 |
|
Other, net |
|
42 |
|
130 |
|
31 |
|
|
|
277 |
|
228 |
|
Total non-interest income, net |
|
2,971 |
|
2,963 |
|
2,966 |
|
|
|
12,194 |
|
12,744 |
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
Salaries and employee benefits |
|
6,163 |
|
5,982 |
|
6,366 |
|
|
|
23,982 |
|
23,635 |
|
Occupancy and depreciation |
|
1,571 |
|
1,536 |
|
1,539 |
|
|
|
6,171 |
|
5,624 |
|
Data processing |
|
538 |
|
705 |
|
753 |
|
|
|
2,722 |
|
2,940 |
|
Amortization of core deposit intangible |
|
29 |
|
29 |
|
31 |
|
|
|
116 |
|
124 |
|
Advertising and marketing |
|
229 |
|
202 |
|
127 |
|
|
|
923 |
|
614 |
|
FDIC insurance premium |
|
183 |
|
116 |
|
118 |
|
|
|
534 |
|
439 |
|
State and local taxes |
|
263 |
|
225 |
|
198 |
|
|
|
896 |
|
812 |
|
Telecommunications |
|
51 |
|
48 |
|
45 |
|
|
|
204 |
|
197 |
|
Professional fees |
|
277 |
|
343 |
|
290 |
|
|
|
1,201 |
|
1,235 |
|
Gain on sale of premises and equipment, net |
|
- |
|
- |
|
- |
|
|
|
- |
|
(993 |
) |
Other |
|
646 |
|
662 |
|
648 |
|
|
|
2,622 |
|
2,091 |
|
Total non-interest expense |
|
9,950 |
|
9,848 |
|
10,115 |
|
|
|
39,371 |
|
36,718 |
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAXES |
|
4,085 |
|
6,815 |
|
5,407 |
|
|
|
23,679 |
|
28,276 |
|
PROVISION
FOR INCOME TAXES |
|
1,102 |
|
1,575 |
|
1,282 |
|
|
|
5,610 |
|
6,456 |
|
NET
INCOME |
$ |
2,983 |
$ |
5,240 |
$ |
4,125 |
|
|
$ |
18,069 |
$ |
21,820 |
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
Basic |
$ |
0.14 |
$ |
0.24 |
$ |
0.19 |
|
|
$ |
0.84 |
$ |
0.98 |
|
Diluted |
$ |
0.14 |
$ |
0.24 |
$ |
0.19 |
|
|
$ |
0.83 |
$ |
0.98 |
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
Basic |
|
21,391,759 |
|
21,504,903 |
|
22,161,686 |
|
|
|
21,637,526 |
|
22,213,029 |
|
Diluted |
|
21,400,278 |
|
21,513,617 |
|
22,172,735 |
|
|
|
21,646,101 |
|
22,224,947 |
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
At or for
the three months ended |
|
At or for
the twelve months ended |
|
March 31, 2023 |
|
Dec. 31, 2022 |
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2022 |
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
Average interest–earning assets |
$ |
1,518,641 |
|
|
$ |
1,564,143 |
|
|
$ |
1,623,660 |
|
|
$ |
1,583,831 |
|
$ |
1,575,068 |
Average
interest-bearing liabilities |
|
991,470 |
|
|
|
986,198 |
|
|
|
1,052,004 |
|
|
|
1,015,936 |
|
|
1,016,592 |
Net average
earning assets |
|
527,171 |
|
|
|
577,945 |
|
|
|
571,656 |
|
|
|
567,895 |
|
|
558,476 |
Average
loans |
|
1,012,975 |
|
|
|
1,017,214 |
|
|
|
973,461 |
|
|
|
1,007,045 |
|
|
934,742 |
Average
deposits |
|
1,315,519 |
|
|
|
1,445,049 |
|
|
|
1,508,632 |
|
|
|
1,445,775 |
|
|
1,463,693 |
Average
equity |
|
155,146 |
|
|
|
150,106 |
|
|
|
163,581 |
|
|
|
154,241 |
|
|
160,155 |
Average
tangible equity (non-GAAP) |
|
127,673 |
|
|
|
122,606 |
|
|
|
135,993 |
|
|
|
126,727 |
|
|
132,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
March 31, 2023 |
|
Dec. 31, 2022 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
$ |
1,852 |
|
|
$ |
12,613 |
|
|
$ |
22,099 |
|
|
|
|
|
Non-performing loans excluding SBA Government Guarantee
(non-GAAP) |
|
265 |
|
|
|
236 |
|
|
|
273 |
|
|
|
|
|
Non-performing loans to total loans |
|
0.18 |
% |
|
|
1.24 |
% |
|
|
2.23 |
% |
|
|
|
|
Non-performing loans to total loans excluding SBA Government
Guarantee (non-GAAP) |
|
0.03 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
|
|
Real
estate/repossessed assets owned |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
Non-performing assets |
$ |
1,852 |
|
|
$ |
12,613 |
|
|
$ |
22,099 |
|
|
|
|
|
Non-performing assets excluding SBA Government Guarantee
(non-GAAP) |
|
265 |
|
|
|
236 |
|
|
|
273 |
|
|
|
|
|
Non-performing assets to total assets |
|
0.12 |
% |
|
|
0.79 |
% |
|
|
1.27 |
% |
|
|
|
|
Non-performing assets to total assets excluding SBA Government
Guarantee (non-GAAP) |
|
0.02 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
|
|
Net loan
charge-offs (recoveries) in the quarter |
$ |
(1 |
) |
|
$ |
(6 |
) |
|
$ |
- |
|
|
|
|
|
Net
charge-offs (recoveries) in the quarter/average net loans |
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
$ |
15,309 |
|
|
$ |
14,558 |
|
|
$ |
14,523 |
|
|
|
|
|
Average
interest-earning assets to average |
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
153.17 |
% |
|
|
158.60 |
% |
|
|
154.34 |
% |
|
|
|
|
Allowance
for loan losses to |
|
|
|
|
|
|
|
|
|
non-performing loans |
|
826.62 |
% |
|
|
115.42 |
% |
|
|
65.72 |
% |
|
|
|
|
Allowance
for loan losses to total loans |
|
1.52 |
% |
|
|
1.43 |
% |
|
|
1.47 |
% |
|
|
|
|
Shareholders’ equity to assets |
|
9.77 |
% |
|
|
9.51 |
% |
|
|
9.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
Total
capital (to risk weighted assets) |
|
16.94 |
% |
|
|
16.71 |
% |
|
|
16.38 |
% |
|
|
|
|
Tier 1
capital (to risk weighted assets) |
|
15.69 |
% |
|
|
15.46 |
% |
|
|
15.12 |
% |
|
|
|
|
Common
equity tier 1 (to risk weighted assets) |
|
15.69 |
% |
|
|
15.46 |
% |
|
|
15.12 |
% |
|
|
|
|
Tier 1
capital (to average tangible assets) |
|
10.47 |
% |
|
|
10.10 |
% |
|
|
9.19 |
% |
|
|
|
|
Tangible
common equity (to average tangible assets) (non-GAAP) |
|
8.18 |
% |
|
|
7.93 |
% |
|
|
7.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX |
March 31, 2023 |
|
Dec. 31, 2022 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
checking |
$ |
254,522 |
|
|
$ |
277,101 |
|
|
$ |
287,861 |
|
|
|
|
|
Regular
savings |
|
255,147 |
|
|
|
290,137 |
|
|
|
340,076 |
|
|
|
|
|
Money market
deposit accounts |
|
221,778 |
|
|
|
240,849 |
|
|
|
299,738 |
|
|
|
|
|
Non-interest
checking |
|
404,937 |
|
|
|
471,776 |
|
|
|
494,831 |
|
|
|
|
|
Certificates
of deposit |
|
128,833 |
|
|
|
86,134 |
|
|
|
111,372 |
|
|
|
|
|
Total deposits |
$ |
1,265,217 |
|
|
$ |
1,365,997 |
|
|
$ |
1,533,878 |
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
Commercial |
|
Real Estate |
|
Real Estate |
|
&
Construction |
|
Business |
|
Mortgage |
|
Construction |
|
Total |
March 31, 2023 |
(Dollars in
thousands) |
Commercial business |
$ |
232,859 |
|
$ |
- |
|
$ |
- |
|
$ |
232,859 |
SBA PPP |
|
9 |
|
|
- |
|
|
- |
|
|
9 |
Commercial
construction |
|
- |
|
|
- |
|
|
29,565 |
|
|
29,565 |
Office
buildings |
|
- |
|
|
117,045 |
|
|
- |
|
|
117,045 |
Warehouse/industrial |
|
- |
|
|
106,693 |
|
|
- |
|
|
106,693 |
Retail/shopping centers/strip malls |
|
- |
|
|
82,700 |
|
|
- |
|
|
82,700 |
Assisted
living facilities |
|
- |
|
|
396 |
|
|
- |
|
|
396 |
Single
purpose facilities |
|
- |
|
|
257,662 |
|
|
- |
|
|
257,662 |
Land |
|
- |
|
|
6,437 |
|
|
- |
|
|
6,437 |
Multi-family |
|
- |
|
|
55,836 |
|
|
- |
|
|
55,836 |
One-to-four
family construction |
|
- |
|
|
- |
|
|
18,197 |
|
|
18,197 |
Total |
$ |
232,868 |
|
$ |
626,769 |
|
$ |
47,762 |
|
$ |
907,399 |
|
|
|
|
|
|
|
|
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 |
March 31, 2023 |
|
Dec. 31, 2022 |
|
March 31, 2022 |
|
|
Commercial
and construction |
(Dollars in
thousands) |
|
Commercial business |
$ |
232,868 |
|
$ |
238,740 |
|
$ |
228,091 |
|
|
Other real estate mortgage |
|
626,769 |
|
|
623,818 |
|
|
654,604 |
|
|
Real estate construction |
|
47,762 |
|
|
51,153 |
|
|
24,160 |
|
|
Total commercial and construction |
|
907,399 |
|
|
913,711 |
|
|
906,855 |
|
|
Consumer |
|
|
|
|
|
|
|
Real estate one-to-four family |
|
99,673 |
|
|
101,122 |
|
|
82,006 |
|
|
Other installment |
|
1,784 |
|
|
1,680 |
|
|
1,547 |
|
|
Total consumer |
|
101,457 |
|
|
102,802 |
|
|
83,553 |
|
|
|
|
|
|
|
|
|
|
Total
loans |
|
1,008,856 |
|
|
1,016,513 |
|
|
990,408 |
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
Allowance for loan losses |
|
15,309 |
|
|
14,558 |
|
|
14,523 |
|
|
Loans receivable, net |
$ |
993,547 |
|
$ |
1,001,955 |
|
$ |
975,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
Southwest |
|
|
|
|
|
|
|
Washington |
|
Other |
|
Total |
|
|
March 31, 2023 |
(Dollars in
thousands) |
|
|
Commercial
business |
$ |
79 |
|
$ |
- |
|
$ |
79 |
|
|
Commercial
real estate |
|
100 |
|
|
- |
|
|
100 |
|
|
Consumer |
|
86 |
|
|
- |
|
|
86 |
|
|
Subtotal |
|
265 |
|
|
- |
|
|
265 |
|
|
|
|
|
|
|
|
|
|
Government
Guaranteed loans |
|
- |
|
|
1,587 |
|
|
1,587 |
|
|
Total
non-performing assets |
$ |
265 |
|
$ |
1,587 |
|
$ |
1,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for
the three months ended |
|
At or for
the twelve months ended |
SELECTED
OPERATING DATA |
March 31, 2023 |
|
Dec. 31, 2022 |
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2022 |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
67.30 |
% |
|
|
59.10 |
% |
|
|
68.01 |
% |
|
|
61.71 |
% |
|
|
60.82 |
% |
Coverage
ratio (6) |
|
118.73 |
% |
|
|
139.11 |
% |
|
|
117.71 |
% |
|
|
131.08 |
% |
|
|
129.70 |
% |
Return on
average assets (1) |
|
0.76 |
% |
|
|
1.27 |
% |
|
|
0.97 |
% |
|
|
1.08 |
% |
|
|
1.31 |
% |
Return on
average equity (1) |
|
7.80 |
% |
|
|
13.85 |
% |
|
|
10.23 |
% |
|
|
11.71 |
% |
|
|
13.62 |
% |
Return on
average tangible equity (1) (non-GAAP) |
|
9.48 |
% |
|
|
16.96 |
% |
|
|
12.30 |
% |
|
|
14.26 |
% |
|
|
16.47 |
% |
|
|
|
|
|
|
|
|
|
|
NET INTEREST
SPREAD |
|
|
|
|
|
|
|
|
|
Yield on
loans |
|
4.50 |
% |
|
|
4.50 |
% |
|
|
4.43 |
% |
|
|
4.44 |
% |
|
|
4.72 |
% |
Yield on
investment securities |
|
2.07 |
% |
|
|
2.01 |
% |
|
|
1.63 |
% |
|
|
1.93 |
% |
|
|
1.54 |
% |
Total yield on interest-earning assets |
|
3.73 |
% |
|
|
3.67 |
% |
|
|
3.10 |
% |
|
|
3.52 |
% |
|
|
3.17 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of
interest-bearing deposits |
|
0.28 |
% |
|
|
0.12 |
% |
|
|
0.11 |
% |
|
|
0.16 |
% |
|
|
0.14 |
% |
Cost of FHLB
advances and other borrowings |
|
5.46 |
% |
|
|
5.88 |
% |
|
|
2.79 |
% |
|
|
5.10 |
% |
|
|
2.67 |
% |
Total cost of interest-bearing liabilities |
|
0.87 |
% |
|
|
0.30 |
% |
|
|
0.19 |
% |
|
|
0.40 |
% |
|
|
0.22 |
% |
|
|
|
|
|
|
|
|
|
|
Spread
(7) |
|
2.86 |
% |
|
|
3.37 |
% |
|
|
2.91 |
% |
|
|
3.12 |
% |
|
|
2.95 |
% |
Net interest
margin |
|
3.16 |
% |
|
|
3.48 |
% |
|
|
2.98 |
% |
|
|
3.26 |
% |
|
|
3.03 |
% |
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
Basic
earnings per share (2) |
$ |
0.14 |
|
|
$ |
0.24 |
|
|
$ |
0.19 |
|
|
$ |
0.84 |
|
|
$ |
0.98 |
|
Diluted
earnings per share (3) |
|
0.14 |
|
|
|
0.24 |
|
|
|
0.19 |
|
|
|
0.83 |
|
|
|
0.98 |
|
Book value
per share (5) |
|
7.32 |
|
|
|
7.07 |
|
|
|
7.11 |
|
|
|
7.32 |
|
|
|
7.11 |
|
Tangible
book value per share (5) (non-GAAP) |
|
6.02 |
|
|
|
5.79 |
|
|
|
5.86 |
|
|
|
6.02 |
|
|
|
5.86 |
|
Market price
per share: |
|
|
|
|
|
|
|
|
|
High for the period |
$ |
7.90 |
|
|
$ |
7.96 |
|
|
$ |
8.00 |
|
|
$ |
7.96 |
|
|
$ |
8.07 |
|
Low for the period |
|
5.25 |
|
|
|
6.25 |
|
|
|
7.30 |
|
|
|
5.25 |
|
|
|
6.47 |
|
Close for period end |
|
5.34 |
|
|
|
7.68 |
|
|
|
7.55 |
|
|
|
5.34 |
|
|
|
7.55 |
|
Cash
dividends declared per share |
|
0.0600 |
|
|
|
0.0600 |
|
|
|
0.0550 |
|
|
|
0.2400 |
|
|
|
0.2150 |
|
|
|
|
|
|
|
|
|
|
|
Average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic (2) |
|
21,391,759 |
|
|
|
21,504,903 |
|
|
|
22,161,686 |
|
|
|
21,637,526 |
|
|
|
22,213,029 |
|
Diluted (3) |
|
21,400,278 |
|
|
|
21,513,617 |
|
|
|
22,172,735 |
|
|
|
21,646,101 |
|
|
|
22,224,947 |
|
(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. |
Contact: |
Kevin Lycklama
or David Lam |
|
Riverview Bancorp, Inc. 360-693-6650 |
Riverview Bancorp (NASDAQ:RVSB)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Riverview Bancorp (NASDAQ:RVSB)
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