Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today announced that late in the fourth fiscal quarter
of 2024 it strategically restructured a portion of its balance
sheet by selling approximately $46.2 million of its investment
securities portfolio and utilizing the proceeds totaling $43.5
million from the sale of these lower-yielding investment securities
to repay higher-cost Federal Home Loan Bank of Des Moines (“FHLB”)
advances. The total pre-tax loss of this transaction was $2.7
million, with a tax benefit of $655,000, resulting in an after-tax
impact of $2.1 million, or $0.10 per diluted share impact to
diluted earnings per share.
“Given the challenging interest rate
environment, we believed it was prudent to take this opportunity to
restructure the balance sheet as we look toward the future.
Together these transactions will improve our future profitability
by decreasing both our high-cost debt and our low-yielding assets,”
stated Dan Cox, Chief Operating Officer, Acting President and Chief
Executive Officer. “In addition to lowering our cost of funds, we
anticipate future benefits will include an expanded net interest
margin, an improved interest rate risk position, stronger
performance metrics, and ultimately increased profitability and
enhanced shareholder value. With this step, we have eliminated a
drag on earnings that has obscured the true value and performance
of our Company.”
Riverview determined that as of the
quarter-ended March 31, 2024, there was potential liability
resulting from pending litigation involving a former Riverview
business client related to their real estate investments offered by
a business owned by that client. Given the recent development of a
proposed global settlement of the litigation, the Company recorded
a $2.3 million expense that is recorded in other non-interest
expense for the fourth fiscal quarter of 2024. This expense
reflects Riverview’s estimate of litigation costs that exceeds the
Company’s insurance coverage. The settlement of the litigation
remains subject to approval by the court.
“While Riverview has defended itself vigorously
and continues to believe there was no wrongdoing on the part of the
Company, we feel that establishing a reserve is the best course of
action given the uncertainties inherent in such complex
litigation,” said Cox.
Including the effects of the investment
portfolio restructuring and litigation charge, Riverview reported a
net loss of $3.0 million, or $0.14 per diluted share, in the fourth
fiscal quarter ended March 31, 2024. This compared to net income of
$1.5 million, or $0.07 per diluted share, in the third fiscal
quarter ended December 31, 2023, and $3.0 million, or $0.14 per
diluted share, in the fourth fiscal quarter a year ago. For fiscal
2024, net income was $3.8 million, or $0.18 per diluted share,
compared to $18.1 million, or $0.83 per diluted share in fiscal
2023.
Fourth Quarter Highlights (at or for the
period ended March 31, 2024)
- Completed balance sheet
restructuring transactions.
- Net interest income was $8.6
million for the quarter, compared to $9.3 million in the preceding
quarter and $11.8 million in the fourth fiscal quarter a year
ago.
- Net interest margin (“NIM”) was 2.32% for the quarter, compared
to 2.49% in the preceding quarter and 3.16% for the year ago
quarter.
- Asset quality remained pristine,
with non-performing assets at $178,000, or 0.01% of total assets at
March 31, 2024.
- Riverview recorded no provision for
credit losses during the current quarter, or the preceding quarter,
and recorded a $750 provision for credit losses in the year ago
quarter.
- The allowance for credit losses was
$15.4 million, or 1.50% of total loans.
- Total loans were $1.02 billion at
March 31, 2024, and December 31, 2023, and $1.01 billion at March
31, 2023.
- Total deposits were $1.23 billion,
compared to $1.22 billion three months earlier and $1.27 billion a
year earlier.
- Riverview bolstered its liquidity
position and has approximately $495.7 million in available
liquidity at March 31, 2024, including $211.2 million of borrowing
capacity from the FHLB and $284.5 million from the Federal Reserve
Bank of San Francisco (“FRB”). At March 31, 2024, the Bank had
$88.3 million in outstanding FHLB borrowings.
- The uninsured deposit ratio was
24.1% at March 31, 2024.
- Total risk-based capital ratio was
16.32% and Tier 1 leverage ratio was 10.29%.
- Paid a quarterly cash dividend
during the quarter of $0.06 per share.
- The Company has contracted with an
executive search firm specializing in community banks to conduct a
nationwide search to assist in selecting a permanent President/CEO.
It is anticipated a permanent President/CEO will be identified over
the course of the next three to six months.
Income Statement Review
Riverview’s net interest income was $8.6 million
in the current quarter, compared to $9.3 million in the preceding
quarter, and $11.8 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 due to higher interest rates. In fiscal 2024, net
interest income was $38.1 million compared to $51.6 million in
fiscal 2023.
Riverview’s NIM was 2.32% for the fourth quarter
of fiscal 2024, a 17 basis-point decrease compared to 2.49% in the
preceding quarter and an 84 basis-point decrease compared to 3.16%
in the fourth quarter of fiscal 2023. “The ‘higher for longer’
interest rate environment continued to have an impact on our NIM
during the current quarter, compared to the prior quarter and year
ago quarter, as a result of increased interest expense, due to
higher rates on our deposit products, and the interest expense
related to our borrowings,” said David Lam, EVP and Chief Financial
Officer. In fiscal 2024, NIM was 2.56% compared to 3.26% in fiscal
2023.
Investment securities decreased $56.4 million
during the quarter to $372.7 million at March 31, 2024, compared to
$429.1 million at December 31, 2023, and decreased $82.6 million
compared to $455.3 million at March 31, 2023. The average
securities balances for the quarters ended March 31, 2024, December
31, 2023, and March 31, 2023, were $444.1 million, $458.0 million,
and $483.3 million, respectively. The weighted average yields on
securities balances for those same periods were 2.02%, 2.01%, and
2.07%, respectively. Going forward, following the investment sale,
the weighted average yield on the securities balance is
approximately 1.95%. The duration of the investment portfolio at
March 31, 2024, was approximately 5.2 years. The anticipated
investment cashflows over the next twelve months is approximately
$55.4 million.
Riverview’s yield on loans improved to 4.63%
during the fourth fiscal quarter, compared to 4.56% in the
preceding quarter, and 4.50% in the fourth fiscal quarter a year
ago. While loan yields improved during the current quarter, they
remain under pressure due to the concentration of fixed-rate loans
in the Company’s portfolio. Deposit costs increased to 1.00% during
the fourth fiscal quarter compared to 0.68% in the preceding
quarter, and 0.19% in the fourth fiscal quarter a year ago.
Non-interest income decreased to $494,000 during
the fourth fiscal quarter compared to $3.1 million in the preceding
quarter and $3.0 million in the fourth fiscal quarter of 2023. The
decrease during the fourth fiscal quarter was primarily due to the
$2.7 million loss on sale of investment securities resulting from
the previously mentioned balance sheet restructuring. Excluding the
securities loss, non-interest income for the fourth fiscal quarter
of 2024 would have been $3.2 million. Lower fees and service
charges from a decrease in fintech referral partnership income was
more than offset by higher asset management fees during the current
quarter. In fiscal 2024, non-interest income was $10.2 million
compared to $12.2 million in fiscal 2023.
Asset management fees were $1.4 million during
the fourth fiscal quarter, compared to $1.3 million in both the
preceding quarter, and in the fourth fiscal quarter a year ago. In
fiscal 2024, asset management fees increased 12.5% to $5.3 million,
compared to $4.7 million in fiscal 2023. Riverview Trust Company’s
assets under management were $961.8 million at March 31, 2024,
compared to $942.4 million at December 31, 2023, and $890.6 million
at March 31, 2023.
Non-interest expense was $13.1 million during
the fourth quarter, compared to $10.6 million in the preceding
quarter and $10.0 million in the fourth fiscal quarter a year ago.
Other expenses included the previously mentioned $2.3 million
litigation expense incurred during the current quarter. Salary and
employee benefits were up during the current quarter compared to
the preceding quarter, as a result of the full quarterly impact of
salary increases, higher health insurance costs and higher payroll
taxes. Occupancy and depreciation costs increased during the
quarter due to updates and modernization of Riverview’s facilities.
The efficiency ratio was 144.9% for the fourth fiscal quarter, and
91.8% excluding the securities loss and litigation. This compared
to 85.2% in the preceding quarter and 67.3% in the fourth fiscal
quarter a year ago. In fiscal 2024, non-interest expense was $43.7
million compared to $39.4 million in fiscal 2023.
Riverview’s effective tax rate for the fourth
quarter of fiscal 2024 was (27.0)%, compared to 20.6% for the
preceding quarter and 27.0% for the year ago quarter.
Balance Sheet Review
“Quarterly loan growth has moderated, as we
remain selective with the loans we are putting on the balance sheet
while placing an emphasis on credit quality,” said Lam. Total loans
increased $5.8 million during the quarter to $1.02 billion at March
31, 2024, compared to three months earlier and increased $15.2
million compared to $1.01 billion a year earlier. Riverview’s loan
pipeline was $18.4 million at March 31, 2024, compared to
$29.3 million at the end of the prior quarter. New loan
originations during the quarter totaled $12.7 million, compared to
$51.3 million in the preceding quarter and $20.8 million in the
fourth quarter a year ago.
Undisbursed construction loans totaled $58.3
million at March 31, 2024, compared to $63.1 million at December
31, 2023, 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 $16.4 million at March 31, 2024,
compared to $20.7 million at December 31, 2023. Revolving
commercial business loan commitments totaled $50.4 million at March
31, 2024 and December 31, 2023. Utilization on these loans totaled
14.61% at March 31, 2024, compared to 11.27% at December 31, 2023.
The weighted average rate on loan originations during the quarter
was 8.41% compared to 7.14% in the preceding quarter.
The office building loan portfolio totaled
$114.7 million at March 31, 2024, compared to $115.6 million at
December 31, 2023. The average loan balance of the office building
loan portfolio was $1.5 million with an average loan-to-value ratio
of 55.0% and an average debt service coverage ratio of 1.95%.
Total deposits increased $12.8 million during
the quarter to $1.23 billion at March 31, 2024, compared to $1.22
billion at December 31, 2023, and decreased $33.5 million compared
to $1.27 billion a year ago. The increase during the current
quarter was in large part due to moving some trust company deposits
back to the bank. Excluding this, deposit balances were essentially
flat during the quarter, as customers continue to use up deposit
balances instead of borrowing due to the higher interest rate
environment.
Non-interest checking and interest checking
accounts, as a percentage of total deposits, totaled 51.9% at March
31, 2024, compared to 51.1% at December 31, 2023 and 52.1% at March
31, 2023.
FHLB advances decreased $68.8 million during the
quarter to $88.3 million at March 31, 2024, as proceeds from the
securities sale were used to pay down borrowings. FHLB advances
were $157.1 million at December 31, 2023, and $123.8 million a year
earlier. These FHLB advances were utilized to partially offset the
decrease in deposit balances and to fund the increase in loans
receivable.
Shareholders’ equity was $155.6 million at March
31, 2024, compared to $158.5 million three months earlier and
$155.2 million one year earlier. Tangible book value per share
(non-GAAP) was $6.07 at March 31, 2024, compared to $6.21 at
December 31, 2023, and $6.02 at March 31, 2023. Riverview paid
a quarterly cash dividend of $0.06 per share on April 22, 2024, to
shareholders of record on April 11, 2024.
Credit Quality
In accordance with changes in generally accepted
accounting principles, Riverview adopted the new credit loss
accounting standard known as Current Expected Credit Loss (“CECL”)
on April 1, 2023. Under CECL, the ACL is based on expected credit
losses rather than on incurred losses. Adoption of CECL, which
includes the ACL and allowance for unfunded loan commitments,
resulted in a cumulative effect after-tax adjustment to
stockholders’ equity as of April 1, 2023, of $53,000, which had no
impact on earnings.
Asset quality remained strong, with
non-performing loans, excluding SBA and USDA government guaranteed
loans (“government guaranteed loans”) (non-GAAP), at $173,000 or
0.02% of total loans as of March 31, 2024, compared to $186,000, or
0.02% of total loans at December 31, 2023, and $265,000, or 0.03%
of total loans at March 31, 2023. There was one non-performing
government guaranteed loan totaling $5,000 at March 31, 2024 and no
non-performing government guaranteed loans at December 31, 2023. At
March 31, 2023, including government guaranteed loans,
non-performing assets were $1.9 million, or 0.12% of total assets.
Previously, there were non-performing government guaranteed loans
where payments had been delayed due to the servicing transfer of
these loans between two third-party servicers and the service
transfer has been completed.
Riverview recorded net loan recoveries of $3,000
during the fourth fiscal quarter. This compared to net loan
recoveries of $15,000 for the preceding quarter. Riverview recorded
no provision for credit losses for the fourth fiscal quarter, or
for the preceding quarter.
Classified assets were $723,000 at March 31,
2024, compared to $215,000 at December 31, 2023, and $2.6 million
at March 31, 2023. The classified asset to total capital ratio
was 0.1% at March 31, 2024, and at December 31, 2023, compared to
1.5% a year earlier. Criticized assets were $36.7 million at March
31, 2024, compared to $37.2 million at December 31, 2023, and $19.1
million at March 31, 2023. The increase in criticized assets
compared to a year ago was mainly due to one relationship downgrade
in the preceding quarter which has plans in place to pay off
outstanding loans or meet certain loan covenants. The Company does
not believe this is a systemic credit issue.
The allowance for credit losses was $15.4
million at March 31, 2024, which was unchanged compared to December
31, 2023, and an increase compared to $15.3 million one year
earlier. The allowance for credit losses represented 1.50% of total
loans at March 31, 2024, compared to 1.51% at December 31, 2023,
and 1.52% a year earlier. The allowance for credit losses to loans,
net of government guaranteed loans (non-GAAP), was 1.58% at March
31, 2024, compared to 1.59% at December 31, 2023, and 1.61% a year
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 16.32%
and a Tier 1 leverage ratio of 10.29% at March 31, 2024. Tangible
common equity to average tangible assets ratio (non-GAAP) was 8.58%
at March 31, 2024.
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, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (GAAP) |
|
$ |
155,588 |
|
|
$ |
158,472 |
|
|
$ |
155,239 |
|
|
|
|
|
Exclude: Goodwill |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
|
Exclude: Core deposit intangible, net |
|
|
(271 |
) |
|
|
(298 |
) |
|
|
(379 |
) |
|
|
|
|
Tangible
shareholders' equity (non-GAAP) |
|
$ |
128,241 |
|
|
$ |
131,098 |
|
|
$ |
127,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
(GAAP) |
|
$ |
1,521,529 |
|
|
$ |
1,590,623 |
|
|
$ |
1,589,712 |
|
|
|
|
|
Exclude: Goodwill |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
|
Exclude: Core deposit intangible, net |
|
|
(271 |
) |
|
|
(298 |
) |
|
|
(379 |
) |
|
|
|
|
Tangible
assets (non-GAAP) |
|
$ |
1,494,182 |
|
|
$ |
1,563,249 |
|
|
$ |
1,562,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity to total assets (GAAP) |
|
|
10.23 |
% |
|
|
9.96 |
% |
|
|
9.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
common equity to tangible assets (non-GAAP) |
|
|
8.58 |
% |
|
|
8.39 |
% |
|
|
8.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding |
|
|
21,111,043 |
|
|
|
21,111,043 |
|
|
|
21,221,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per share (GAAP) |
|
|
7.37 |
|
|
|
7.51 |
|
|
|
7.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
book value per share (non-GAAP) |
|
|
6.07 |
|
|
|
6.21 |
|
|
|
6.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision income |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Dollars in
thousands) |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) (GAAP) |
|
$ |
(2,968 |
) |
|
$ |
1,452 |
|
|
$ |
2,983 |
|
|
$ |
3,799 |
|
$ |
18,069 |
Include: Provision (credit) for income taxes |
|
|
(1,095 |
) |
|
|
377 |
|
|
|
1,102 |
|
|
|
802 |
|
|
5,610 |
Include: Provision for credit losses |
|
|
- |
|
|
|
- |
|
|
|
750 |
|
|
|
- |
|
|
750 |
Pre-tax,
pre-provision income (loss) (non-GAAP) |
|
$ |
(4,063 |
) |
|
$ |
1,829 |
|
|
$ |
4,835 |
|
|
$ |
4,601 |
|
$ |
24,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) and earnings (loss) per share excluding
securities restructure and litigation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
(Dollars in
thousands) |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) (GAAP) |
|
$ |
(2,968 |
) |
|
$ |
1,452 |
|
|
$ |
2,983 |
|
|
$ |
3,799 |
|
$ |
18,069 |
Exclude impact of securities loss restructure, net of tax |
|
|
2,074 |
|
|
|
- |
|
|
|
- |
|
|
|
2,074 |
|
|
- |
Exclude impact of litigation expense, net of tax |
|
|
1,748 |
|
|
|
- |
|
|
|
- |
|
|
|
1,748 |
|
|
- |
Net income
excluding securities restructure and litigation expense
(non-GAAP) |
|
$ |
854 |
|
|
$ |
1,452 |
|
|
$ |
2,983 |
|
|
$ |
7,621 |
|
$ |
18,069 |
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share (GAAP) |
|
$ |
(0.14 |
) |
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.18 |
|
$ |
0.84 |
Exclude impact of securities loss restructure, net of tax |
|
|
0.10 |
|
|
|
- |
|
|
|
- |
|
|
|
0.10 |
|
|
- |
Exclude impact of litigation expense, net of tax |
|
|
0.08 |
|
|
|
- |
|
|
|
- |
|
|
|
0.08 |
|
|
- |
Basic
earnings per share excluding securities restructure and litigation
expense (GAAP) |
|
$ |
0.04 |
|
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.36 |
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share (GAAP) |
|
$ |
(0.14 |
) |
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.18 |
|
$ |
0.83 |
Exclude impact of securities loss restructure, net of tax |
|
|
0.10 |
|
|
|
- |
|
|
|
- |
|
|
|
0.10 |
|
|
- |
Exclude impact of litigation expense, net of tax |
|
|
0.08 |
|
|
|
- |
|
|
|
- |
|
|
|
0.08 |
|
|
- |
Diluted
earnings per share excluding securities restructure and litigation
expense (GAAP) |
|
$ |
0.04 |
|
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.36 |
|
$ |
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses reconciliation, excluding
Government Guaranteed loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses |
|
$ |
15,364 |
|
|
$ |
15,361 |
|
|
$ |
15,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable (GAAP) |
|
$ |
1,024,013 |
|
|
$ |
1,018,199 |
|
|
$ |
1,008,856 |
|
|
|
|
|
Exclude: Government Guaranteed loans |
|
|
(51,013 |
) |
|
|
(51,809 |
) |
|
|
(55,488 |
) |
|
|
|
|
Loans
receivable excluding Government Guaranteed loans (non-GAAP) |
|
$ |
973,000 |
|
|
$ |
966,390 |
|
|
$ |
953,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses to loans receivable (GAAP) |
|
|
1.50 |
% |
|
|
1.51 |
% |
|
|
1.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses to loans receivable excluding Government
Guaranteed loans (non-GAAP) |
|
|
1.58 |
% |
|
|
1.59 |
% |
|
|
1.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans reconciliation, excluding Government
Guaranteed Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
(Dollars in
thousands) |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans (GAAP) |
|
$ |
178 |
|
|
$ |
186 |
|
|
$ |
1,852 |
|
|
|
|
|
Less: Non-performing Government Guaranteed loans |
|
|
(5 |
) |
|
|
- |
|
|
|
(1,587 |
) |
|
|
|
|
Adjusted
non-performing loans excluding Government Guaranteed loans
(non-GAAP) |
|
$ |
173 |
|
|
$ |
186 |
|
|
$ |
265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans (GAAP) |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans, excluding Government Guaranteed loans to
total loans (non-GAAP) |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total assets (GAAP) |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans, excluding Government Guaranteed loans to
total assets (non-GAAP) |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
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 $1.52 billion at March
31, 2024, it is the parent company of the 100-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 10 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 which include statements with
respect to our beliefs, plans, objectives, goals, expectations,
assumptions, future economic performance and projections of
financial items. These forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that could
cause actual results to differ materially from the results
anticipated or implied by our forward-looking statements,
including, but not limited to: potential adverse impacts to
economic conditions in our local market areas, other markets where
the Company has lending relationships, or other aspects of the
Company's business operations or financial markets, including,
without limitation, as a result of employment levels, labor
shortages and the effects of inflation, a potential recession, the
failure of the U.S. Congress to increase the debt ceiling, or
slowed economic growth caused by increasing political instability
from acts of war including Russia’s invasion of Ukraine, as well as
supply chain disruptions, recent bank failures and any governmental
or societal responses thereto; 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 credit losses and provision for credit losses that may be
impacted by deterioration in the housing and commercial real estate
markets; 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; the transition away from London Interbank Offered
Rate toward new interest rate benchmarks; 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 originate loans for sale and sell loans in the
secondary market; results of examinations of the Bank by the
Federal Deposit Insurance Corporation and the Washington State
Department of Financial Institutions, Division of Banks, and of the
Company by the Board of Governors of the Federal Reserve System, or
other regulatory authorities, including the possibility that any
such regulatory authority may, among other things, require the
Company to increase its allowance for credit losses, write-down
assets, reclassify its assets, change the 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
banking, securities and tax law, and in regulatory policies and
principles, or the interpretation of regulatory capital or other
rules; the Company’s ability to attract and retain deposits; the
unexpected outflow of uninsured deposits that may require us to
sell investment securities at a loss; 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 consolidated 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; disruptions, security
breaches or other adverse events, failures or interruptions in or
attacks on our information technology systems or on the third-party
vendors who perform several of our critical processing functions;
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 implement its
business strategies; the Company's ability to successfully
integrate any assets, liabilities, customers, systems, and
management personnel it may acquire into its operations and the
Company's ability to realize related revenue synergies and cost
savings within expected time frames; future goodwill impairment due
to changes in Riverview’s business, changes in market conditions,
or other factors; 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; the
quality and composition of our securities portfolio and the impact
of and adverse changes in the securities markets, including market
liquidity; 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 standards; the effects of climate
change, severe weather events, natural disasters, pandemics,
epidemics and other public health crises, acts of war or terrorism,
and other external events on our business; and 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 reports
filed with and furnished to the U.S. Securities and Exchange
Commission.
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 included in
this report or the reasons why actual results could differ from
those contained in such statements, whether as a result of new
information or 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
2024 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 consolidated financial condition
and consolidated results of operations as well as its stock price
performance.
RIVERVIEW BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
Consolidated Balance Sheets |
|
|
|
|
|
|
(In thousands, except share data) (Unaudited) |
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (including interest-earning accounts of $12,164, $23,717, |
$ |
23,642 |
|
|
$ |
37,553 |
|
|
$ |
22,044 |
|
|
and $10,397) |
|
|
|
|
|
|
Certificate of deposits held for investment |
|
- |
|
|
|
- |
|
|
|
249 |
|
|
Investment securities: |
|
|
|
|
|
|
Available for sale, at estimated fair value |
|
143,196 |
|
|
|
196,461 |
|
|
|
211,499 |
|
|
Held to maturity, at amortized cost |
|
229,510 |
|
|
|
232,659 |
|
|
|
243,843 |
|
|
Loans receivable (net of allowance for credit losses of
$15,364, |
|
|
|
|
|
|
$15,361 and $15,309) |
|
1,008,649 |
|
|
|
1,002,838 |
|
|
|
993,547 |
|
|
Prepaid expenses and other assets |
|
14,469 |
|
|
|
14,486 |
|
|
|
15,950 |
|
|
Accrued interest receivable |
|
4,415 |
|
|
|
5,248 |
|
|
|
4,790 |
|
|
Federal Home Loan Bank stock, at cost |
|
4,927 |
|
|
|
8,026 |
|
|
|
6,867 |
|
|
Premises and equipment, net |
|
21,718 |
|
|
|
22,270 |
|
|
|
20,119 |
|
|
Financing lease right-of-use assets |
|
1,202 |
|
|
|
1,221 |
|
|
|
1,278 |
|
|
Deferred income taxes, net |
|
9,778 |
|
|
|
10,033 |
|
|
|
10,286 |
|
|
Goodwill |
|
27,076 |
|
|
|
27,076 |
|
|
|
27,076 |
|
|
Core deposit intangible, net |
|
271 |
|
|
|
298 |
|
|
|
379 |
|
|
Bank owned life insurance |
|
32,676 |
|
|
|
32,454 |
|
|
|
31,785 |
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
$ |
1,521,529 |
|
|
$ |
1,590,623 |
|
|
$ |
1,589,712 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
Deposits |
$ |
1,231,679 |
|
|
$ |
1,218,892 |
|
|
$ |
1,265,217 |
|
|
Accrued expenses and other liabilities |
|
16,205 |
|
|
|
26,740 |
|
|
|
15,730 |
|
|
Advance payments by borrowers for taxes and insurance |
|
581 |
|
|
|
299 |
|
|
|
625 |
|
|
Junior subordinated debentures |
|
27,004 |
|
|
|
26,982 |
|
|
|
26,918 |
|
|
Federal Home Loan Bank advances |
|
88,304 |
|
|
|
157,054 |
|
|
|
123,754 |
|
|
Finance lease liability |
|
2,168 |
|
|
|
2,184 |
|
|
|
2,229 |
|
|
Total liabilities |
|
1,365,941 |
|
|
|
1,432,151 |
|
|
|
1,434,473 |
|
|
|
|
|
|
|
|
|
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, 2024 – 21,111,043 issued and outstanding; |
|
|
|
|
|
|
December 31, 2023 – 21,111,043 issued and outstanding; |
|
211 |
|
|
|
211 |
|
|
|
212 |
|
|
March 31, 2023 – 21,221,960 issued and outstanding; |
|
|
|
|
|
|
Additional paid-in capital |
|
55,005 |
|
|
|
54,982 |
|
|
|
55,511 |
|
|
Retained earnings |
|
116,499 |
|
|
|
120,734 |
|
|
|
117,826 |
|
|
Accumulated other comprehensive loss |
|
(16,127 |
) |
|
|
(17,455 |
) |
|
|
(18,310 |
) |
|
Total shareholders’ equity |
|
155,588 |
|
|
|
158,472 |
|
|
|
155,239 |
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,521,529 |
|
|
$ |
1,590,623 |
|
|
$ |
1,589,712 |
|
|
|
|
|
|
|
|
|
RIVERVIEW BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Twelve
Months Ended |
|
(In thousands, except share data) (Unaudited) |
March 31, 2024 |
Dec. 31, 2023 |
March 31, 2023 |
|
March 31, 2024 |
March 31, 2023 |
|
INTEREST
INCOME: |
|
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
11,743 |
|
$ |
11,645 |
$ |
11,248 |
|
$ |
46,031 |
|
$ |
44,744 |
|
Interest on investment securities - taxable |
|
2,145 |
|
|
2,231 |
|
2,381 |
|
|
8,971 |
|
|
8,784 |
|
Interest on investment securities - nontaxable |
|
65 |
|
|
65 |
|
65 |
|
|
261 |
|
|
262 |
|
Other interest and dividends |
|
338 |
|
|
331 |
|
247 |
|
|
1,292 |
|
|
1,876 |
|
Total interest and dividend income |
|
14,291 |
|
|
14,272 |
|
13,941 |
|
|
56,555 |
|
|
55,666 |
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
Interest on deposits |
|
3,021 |
|
|
2,059 |
|
605 |
|
|
8,285 |
|
|
1,502 |
|
Interest on borrowings |
|
2,718 |
|
|
2,889 |
|
1,522 |
|
|
10,184 |
|
|
2,558 |
|
Total interest expense |
|
5,739 |
|
|
4,948 |
|
2,127 |
|
|
18,469 |
|
|
4,060 |
|
Net interest
income |
|
8,552 |
|
|
9,324 |
|
11,814 |
|
|
38,086 |
|
|
51,606 |
|
Provision
for credit losses |
|
- |
|
|
- |
|
750 |
|
|
- |
|
|
750 |
|
|
|
|
|
|
|
|
|
Net interest
income after provision for credit losses |
|
8,552 |
|
|
9,324 |
|
11,064 |
|
|
38,086 |
|
|
50,856 |
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
Fees and service charges |
|
1,398 |
|
|
1,533 |
|
1,459 |
|
|
6,269 |
|
|
6,362 |
|
Asset management fees |
|
1,408 |
|
|
1,266 |
|
1,275 |
|
|
5,328 |
|
|
4,734 |
|
Bank owned life insurance ("BOLI") |
|
222 |
|
|
211 |
|
195 |
|
|
891 |
|
|
821 |
|
Loss on sale of investment securities |
|
(2,729 |
) |
|
- |
|
- |
|
|
(2,729 |
) |
|
- |
|
Other, net |
|
195 |
|
|
46 |
|
42 |
|
|
483 |
|
|
277 |
|
Total non-interest income, net |
|
494 |
|
|
3,056 |
|
2,971 |
|
|
10,242 |
|
|
12,194 |
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
6,225 |
|
|
6,091 |
|
6,163 |
|
|
24,204 |
|
|
23,982 |
|
Occupancy and depreciation |
|
1,942 |
|
|
1,698 |
|
1,571 |
|
|
6,872 |
|
|
6,171 |
|
Data processing |
|
686 |
|
|
712 |
|
538 |
|
|
2,782 |
|
|
2,722 |
|
Amortization of core deposit intangible |
|
27 |
|
|
27 |
|
29 |
|
|
108 |
|
|
116 |
|
Advertising and marketing |
|
326 |
|
|
282 |
|
229 |
|
|
1,276 |
|
|
923 |
|
FDIC insurance premium |
|
178 |
|
|
178 |
|
183 |
|
|
708 |
|
|
534 |
|
State and local taxes |
|
196 |
|
|
355 |
|
263 |
|
|
1,010 |
|
|
896 |
|
Telecommunications |
|
50 |
|
|
56 |
|
51 |
|
|
211 |
|
|
204 |
|
Professional fees |
|
414 |
|
|
353 |
|
277 |
|
|
1,375 |
|
|
1,201 |
|
Other |
|
3,065 |
|
|
799 |
|
646 |
|
|
5,181 |
|
|
2,622 |
|
Total non-interest expense |
|
13,109 |
|
|
10,551 |
|
9,950 |
|
|
43,727 |
|
|
39,371 |
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) BEFORE INCOME TAXES |
|
(4,063 |
) |
|
1,829 |
|
4,085 |
|
|
4,601 |
|
|
23,679 |
|
PROVISION
(CREDIT) FOR INCOME TAXES |
|
(1,095 |
) |
|
377 |
|
1,102 |
|
|
802 |
|
|
5,610 |
|
NET INCOME
(LOSS) |
$ |
(2,968 |
) |
$ |
1,452 |
$ |
2,983 |
|
$ |
3,799 |
|
$ |
18,069 |
|
|
|
|
|
|
|
|
|
Earnings
(loss) per common share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.14 |
) |
$ |
0.07 |
$ |
0.14 |
|
$ |
0.18 |
|
$ |
0.84 |
|
Diluted |
$ |
(0.14 |
) |
$ |
0.07 |
$ |
0.14 |
|
$ |
0.18 |
|
$ |
0.83 |
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
21,111,043 |
|
|
21,113,464 |
|
21,391,759 |
|
|
21,137,976 |
|
|
21,637,526 |
|
Diluted |
|
21,111,043 |
|
|
21,113,464 |
|
21,400,278 |
|
|
21,139,322 |
|
|
21,646,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
At or for
the three months ended |
|
At or for
the twelve months ended |
|
|
|
March 31, 2024 |
|
Dec. 31, 2023 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
Average interest–earning assets |
|
$ |
1,484,628 |
|
|
$ |
1,494,341 |
|
|
$ |
1,518,641 |
|
|
$ |
1,492,002 |
|
$ |
1,583,831 |
|
Average
interest-bearing liabilities |
|
|
1,047,712 |
|
|
|
1,028,817 |
|
|
|
991,470 |
|
|
|
1,028,042 |
|
|
1,015,936 |
|
Net average
earning assets |
|
|
436,916 |
|
|
|
465,524 |
|
|
|
527,171 |
|
|
|
463,960 |
|
|
567,895 |
|
Average
loans |
|
|
1,020,457 |
|
|
|
1,015,741 |
|
|
|
1,012,975 |
|
|
|
1,011,420 |
|
|
1,007,045 |
|
Average
deposits |
|
|
1,210,818 |
|
|
|
1,209,524 |
|
|
|
1,315,519 |
|
|
|
1,229,011 |
|
|
1,445,775 |
|
Average
equity |
|
|
158,776 |
|
|
|
153,901 |
|
|
|
155,146 |
|
|
|
156,137 |
|
|
154,241 |
|
Average
tangible equity (non-GAAP) |
|
|
131,413 |
|
|
|
126,511 |
|
|
|
127,673 |
|
|
|
128,733 |
|
|
126,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
March 31, 2024 |
|
Dec. 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
178 |
|
|
$ |
186 |
|
|
$ |
1,852 |
|
|
|
|
|
|
Non-performing loans excluding SBA Government Guarantee
(non-GAAP) |
|
|
173 |
|
|
|
186 |
|
|
|
265 |
|
|
|
|
|
|
Non-performing loans to total loans |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.18 |
% |
|
|
|
|
|
Non-performing loans to total loans excluding SBA Government
Guarantee (non-GAAP) |
|
|
0.02 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
|
|
|
Real
estate/repossessed assets owned |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
Non-performing assets |
|
$ |
178 |
|
|
$ |
186 |
|
|
$ |
1,852 |
|
|
|
|
|
|
Non-performing assets excluding SBA Government Guarantee
(non-GAAP) |
|
|
173 |
|
|
|
186 |
|
|
|
265 |
|
|
|
|
|
|
Non-performing assets to total assets |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.12 |
% |
|
|
|
|
|
Non-performing assets to total assets excluding SBA Government
Guarantee (non-GAAP) |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.02 |
% |
|
|
|
|
|
Net loan
charge-offs (recoveries) in the quarter |
|
$ |
(3 |
) |
|
$ |
(15 |
) |
|
$ |
(1 |
) |
|
|
|
|
|
Net
charge-offs (recoveries) in the quarter/average net loans |
|
|
0.00 |
% |
|
|
(0.01 |
)% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses |
|
$ |
15,364 |
|
|
$ |
15,361 |
|
|
$ |
15,309 |
|
|
|
|
|
|
Average
interest-earning assets to average |
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
|
141.70 |
% |
|
|
145.25 |
% |
|
|
153.17 |
% |
|
|
|
|
|
Allowance
for credit losses to |
|
|
|
|
|
|
|
|
|
|
|
non-performing loans |
|
|
8631.46 |
% |
|
|
8258.60 |
% |
|
|
826.62 |
% |
|
|
|
|
|
Allowance
for credit losses to total loans |
|
|
1.50 |
% |
|
|
1.51 |
% |
|
|
1.52 |
% |
|
|
|
|
|
Shareholders’ equity to assets |
|
|
10.23 |
% |
|
|
9.96 |
% |
|
|
9.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Total
capital (to risk weighted assets) |
|
|
16.32 |
% |
|
|
16.67 |
% |
|
|
16.94 |
% |
|
|
|
|
|
Tier 1
capital (to risk weighted assets) |
|
|
15.06 |
% |
|
|
15.42 |
% |
|
|
15.69 |
% |
|
|
|
|
|
Common
equity tier 1 (to risk weighted assets) |
|
|
15.06 |
% |
|
|
15.42 |
% |
|
|
15.69 |
% |
|
|
|
|
|
Tier 1
capital (to average tangible assets) |
|
|
10.29 |
% |
|
|
10.53 |
% |
|
|
10.47 |
% |
|
|
|
|
|
Tangible
common equity (to average tangible assets) (non-GAAP) |
|
|
8.58 |
% |
|
|
8.39 |
% |
|
|
8.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX |
|
March 31, 2024 |
|
Dec. 31, 2023 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
checking |
|
$ |
289,824 |
|
|
$ |
272,019 |
|
|
$ |
254,522 |
|
|
|
|
|
|
Regular
savings |
|
|
192,638 |
|
|
|
199,911 |
|
|
|
255,147 |
|
|
|
|
|
|
Money market
deposit accounts |
|
|
209,164 |
|
|
|
225,727 |
|
|
|
221,778 |
|
|
|
|
|
|
Non-interest
checking |
|
|
349,081 |
|
|
|
350,744 |
|
|
|
404,937 |
|
|
|
|
|
|
Certificates
of deposit |
|
|
190,972 |
|
|
|
170,491 |
|
|
|
128,833 |
|
|
|
|
|
|
Total deposits |
|
$ |
1,231,679 |
|
|
$ |
1,218,892 |
|
|
$ |
1,265,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
|
Commercial |
|
Real Estate |
|
Real Estate |
|
&
Construction |
|
|
|
Business |
|
Mortgage |
|
Construction |
|
Total |
|
March 31, 2024 |
|
(Dollars in
thousands) |
|
Commercial business |
|
$ |
229,404 |
|
$ |
- |
|
$ |
- |
|
$ |
229,404 |
|
Commercial
construction |
|
|
- |
|
|
- |
|
|
20,388 |
|
|
20,388 |
|
Office
buildings |
|
|
- |
|
|
114,714 |
|
|
- |
|
|
114,714 |
|
Warehouse/industrial |
|
|
- |
|
|
106,649 |
|
|
- |
|
|
106,649 |
|
Retail/shopping centers/strip malls |
|
|
- |
|
|
89,448 |
|
|
- |
|
|
89,448 |
|
Assisted
living facilities |
|
|
- |
|
|
378 |
|
|
- |
|
|
378 |
|
Single
purpose facilities |
|
|
- |
|
|
272,313 |
|
|
- |
|
|
272,313 |
|
Land |
|
|
- |
|
|
5,692 |
|
|
- |
|
|
5,692 |
|
Multi-family |
|
|
- |
|
|
70,771 |
|
|
- |
|
|
70,771 |
|
One-to-four
family construction |
|
|
- |
|
|
- |
|
|
16,150 |
|
|
16,150 |
|
Total |
|
$ |
229,404 |
|
$ |
659,965 |
|
$ |
36,538 |
|
$ |
925,907 |
|
|
|
|
|
|
|
|
|
|
|
March 31, 2023 |
|
(Dollars in
thousands) |
|
Commercial
business |
|
$ |
232,868 |
|
$ |
- |
|
$ |
- |
|
$ |
232,868 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN
MIX |
|
March 31, 2024 |
|
Dec. 31, 2023 |
|
March 31, 2023 |
|
|
|
Commercial
and construction |
|
(Dollars in
thousands) |
|
|
Commercial business |
|
$ |
229,404 |
|
$ |
229,249 |
|
$ |
232,868 |
|
|
|
Other real estate mortgage |
|
|
659,965 |
|
|
648,782 |
|
|
626,769 |
|
|
|
Real estate construction |
|
|
36,538 |
|
|
42,167 |
|
|
47,762 |
|
|
|
Total commercial and construction |
|
|
925,907 |
|
|
920,198 |
|
|
907,399 |
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
Real estate one-to-four family |
|
|
96,366 |
|
|
96,266 |
|
|
99,673 |
|
|
|
Other installment |
|
|
1,740 |
|
|
1,735 |
|
|
1,784 |
|
|
|
Total consumer |
|
|
98,106 |
|
|
98,001 |
|
|
101,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loans |
|
|
1,024,013 |
|
|
1,018,199 |
|
|
1,008,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
15,364 |
|
|
15,361 |
|
|
15,309 |
|
|
|
Loans receivable, net |
|
$ |
1,008,649 |
|
$ |
1,002,838 |
|
$ |
993,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
Southwest |
|
|
|
|
|
|
|
|
|
Washington |
|
Other |
|
Total |
|
|
|
March 31, 2024 |
|
(Dollars in
thousands) |
|
|
|
Commercial
business |
|
$ |
58 |
|
$ |
- |
|
$ |
58 |
|
|
|
Commercial
real estate |
|
|
79 |
|
|
- |
|
|
79 |
|
|
|
Consumer |
|
|
36 |
|
|
- |
|
|
36 |
|
|
|
Government
Guaranteed Loans |
|
|
- |
|
|
5 |
|
|
5 |
|
|
|
Total
non-performing assets |
|
$ |
173 |
|
$ |
5 |
|
$ |
178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
or for the three months ended |
|
At or for
the twelve months ended |
|
SELECTED
OPERATING DATA |
March 31, 2024 |
|
Dec. 31, 2023 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
144.91 |
% |
|
|
85.23 |
% |
|
|
67.30 |
% |
|
|
90.48 |
% |
|
|
61.71 |
% |
|
Coverage
ratio (6) |
|
65.24 |
% |
|
|
88.37 |
% |
|
|
118.73 |
% |
|
|
87.10 |
% |
|
|
131.08 |
% |
|
Return on
average assets (1) |
|
(0.76 |
)% |
|
|
0.37 |
% |
|
|
0.76 |
% |
|
|
0.24 |
% |
|
|
1.08 |
% |
|
Return on
average equity (1) |
|
(7.52 |
)% |
|
|
3.75 |
% |
|
|
7.80 |
% |
|
|
2.43 |
% |
|
|
11.71 |
% |
|
Return on
average tangible equity (1) (non-GAAP) |
|
(9.08 |
)% |
|
|
4.57 |
% |
|
|
9.48 |
% |
|
|
2.95 |
% |
|
|
14.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
SPREAD |
|
|
|
|
|
|
|
|
|
|
Yield on
loans |
|
4.63 |
% |
|
|
4.56 |
% |
|
|
4.50 |
% |
|
|
4.55 |
% |
|
|
4.44 |
% |
|
Yield on
investment securities |
|
2.02 |
% |
|
|
2.01 |
% |
|
|
2.07 |
% |
|
|
2.02 |
% |
|
|
1.93 |
% |
|
Total yield on interest-earning assets |
|
3.88 |
% |
|
|
3.81 |
% |
|
|
3.73 |
% |
|
|
3.80 |
% |
|
|
3.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
interest-bearing deposits |
|
1.41 |
% |
|
|
0.98 |
% |
|
|
0.28 |
% |
|
|
0.97 |
% |
|
|
0.16 |
% |
|
Cost of FHLB
advances and other borrowings |
|
5.87 |
% |
|
|
5.83 |
% |
|
|
5.46 |
% |
|
|
5.80 |
% |
|
|
5.10 |
% |
|
Total cost of interest-bearing
liabilities |
|
2.20 |
% |
|
|
1.91 |
% |
|
|
0.87 |
% |
|
|
1.80 |
% |
|
|
0.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Spread
(7) |
|
1.68 |
% |
|
|
1.90 |
% |
|
|
2.86 |
% |
|
|
2.00 |
% |
|
|
3.12 |
% |
|
Net interest
margin |
|
2.32 |
% |
|
|
2.49 |
% |
|
|
3.16 |
% |
|
|
2.56 |
% |
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share (2) |
$ |
(0.14 |
) |
|
$ |
0.07 |
|
|
$ |
0.14 |
|
|
$ |
0.18 |
|
|
$ |
0.84 |
|
|
Diluted
earnings (loss) per share (3) |
|
(0.14 |
) |
|
|
0.07 |
|
|
|
0.14 |
|
|
|
0.18 |
|
|
|
0.83 |
|
|
Book value
per share (5) |
|
7.37 |
|
|
|
7.51 |
|
|
|
7.32 |
|
|
|
7.37 |
|
|
|
7.32 |
|
|
Tangible
book value per share (5) (non-GAAP) |
|
6.07 |
|
|
|
6.21 |
|
|
|
6.02 |
|
|
|
6.07 |
|
|
|
6.02 |
|
|
Market price
per share: |
|
|
|
|
|
|
|
|
|
|
High for the period |
$ |
6.40 |
|
|
$ |
6.48 |
|
|
$ |
7.90 |
|
|
$ |
6.48 |
|
|
$ |
7.96 |
|
|
Low for the period |
|
4.53 |
|
|
|
5.35 |
|
|
|
5.25 |
|
|
|
4.17 |
|
|
|
5.25 |
|
|
Close for period end |
|
4.72 |
|
|
|
6.40 |
|
|
|
5.34 |
|
|
|
4.72 |
|
|
|
5.34 |
|
|
Cash
dividends declared per share |
|
0.0600 |
|
|
|
0.0600 |
|
|
|
0.0600 |
|
|
|
0.2400 |
|
|
|
0.2400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic (2) |
|
21,111,043 |
|
|
|
21,113,464 |
|
|
|
21,391,759 |
|
|
|
21,137,976 |
|
|
|
21,637,526 |
|
|
Diluted (3) |
|
21,111,043 |
|
|
|
21,113,464 |
|
|
|
21,400,278 |
|
|
|
21,139,322 |
|
|
|
21,646,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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: |
|
Dan Cox or
David Lam |
|
|
Riverview Bancorp, Inc. 360-693-6650 |
Riverview Bancorp (NASDAQ:RVSB)
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