Riverview Bancorp Reports Second Quarter Profits; Net Interest Margin and Capital Ratios Improve
- Press Release
- Source: Riverview Bancorp, Inc.
- On 4:00 pm EDT, Tuesday October 20, 2009
Second Quarter Fiscal 2010 Highlights (at or for the period ended September 30, 2009)
Related Quotes
| Symbol | Price | Change |
|---|---|---|
| RVSB | 2.87 | -0.02 |
* Capital levels remain very strong - total risk-based capital ratio at 12.42%. * Net interest margin improved 10 basis points to 4.35% compared to the preceding quarter. * Reduced non-performing loans to $36.1 million, compared to $41.1 million at the end of June. * Allowance for loan losses increased to 2.41% of total loans and 50% of non-performing loans. * Reduced residential construction loans by 50% compared to prior year and 26% from the prior linked quarter. * Customer branch deposits increased $20.3 million during the quarter, a 13.2% annualized growth rate. * Reduced borrowings by $70 million during the quarter.
VANCOUVER, Wash. Oct. 20, 2009 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB - News) today reported it earned $202,000, or $0.02 per diluted share, for its second fiscal quarter ended September 30, 2009. This compares to net income of $343,000, or $0.03 per diluted share, in the preceding quarter and a net loss of $4.2 million, or $0.39 per diluted share, in the second fiscal quarter a year ago. Second quarter 2010 earnings reflect continued improvement in our core business fundamentals, including an improvement in our net interest margin and branch deposit growth.
For the first six months of fiscal 2010, Riverview earned $545,000, or $0.05 per diluted share, compared to a net loss of $3.4 million, or $0.32 per diluted share, in the first six months of fiscal 2009.
"Our second quarter operating performance was very sound," said Pat Sheaffer, Chairman and CEO. "We have continued our commitment to sound business fundamentals and relationship-based banking. Our capital position remains strong as we increased our total risk-based capital ratio 51 basis points to 12.42%. We have continued to grow customer deposits, with branch deposits increasing $20.3 million during the quarter. Our net interest margin expanded 10 basis points to 4.35%. We have also made steady progress in strengthening Riverview's operations, with pre-tax, pre-provision earnings increasing to $3.4 million for the quarter."
Capital and Liquidity
"Increasing our capital and liquidity position continues to remain a top priority for management during fiscal 2010," said Sheaffer. "We continue to make progress on our strategic goal of strengthening our capital levels, increasing our total risk-based capital and Tier 1 leverage capital ratios to 12.42% and 10.20%, respectively, compared to 11.91% and 9.50% at June 30, 2009. The progress made in increasing our capital ratios was accomplished primarily through the planned strategic balance sheet restructuring that we implemented during the fourth quarter of fiscal 2009. We have continued to reduce loan balances, specifically focusing on the residential construction portfolio, coupled with growth in our residential one-to-four family mortgage portfolio."
"We diligently monitor our liquidity position and our anticipated liquidity needs," added Sheaffer. "As we have mentioned before, we have significant liquidity available to us, including over $288 million of borrowing capacity from the Federal Home Loan Bank and the Federal Reserve Bank, and an additional $58 million in liquidity from our cash and short-term investments, borrowing lines at correspondent banks and available wholesale markets, including brokered deposits. These liquidity sources are in addition to our solid customer deposit base."
Riverview's actual and required minimum capital amounts and ratios are presented in the following table:
September 30, Adequately Well
2009 Actual Capitalized Capitalized
--------------- ---------------- ---------------- ----------------
Amount Ratio Amount Ratio Amount Ratio
Total Capital
(To Risk-
Weighted
Assets) $ 94,984 12.42% $ 61,163 8.00% $ 76,454 10.00%
Tier 1 Capital
(To Risk-
Weighted
Assets) 85,389 11.17 30,582 4.00 45,872 6.00
Tier 1 Capital
(To Adjusted
Tangible Assets) 85,389 10.20 33,473 4.00 41,841 5.00
Credit Quality
"Our loan portfolio remains diversified by both type and size and our asset quality metrics are holding steady; however, the housing market in Southwest Washington and Portland remains under stress, causing us to continue to build our allowance for loan losses," said Dave Dahlstrom, EVP and Chief Credit Officer. "During the second fiscal quarter we reported a provision expense of $3.2 million, compared to net charge-offs of $2.9 million, and we expect to continue reporting higher than historical provision expenses throughout the remainder of the year." The provision expense compares to $2.4 million in the preceding quarter and $7.2 million in the second fiscal quarter a year ago. The higher than normal provision expense was due to the continuing effect of the current economic conditions, the softening real estate market plus a higher level of net loans charge-offs. Charge-offs during the second quarter were comprised primarily of a condominium construction loan and two commercial loans totaling $1.9 million.
Non-performing loans (NPLs) improved during the quarter to $36.1 million, representing 4.82% of total loans at September 30, 2009, compared to $41.1 million, or 5.28% of total loans three months earlier. The $5.0 million decrease in NPLs from the previous quarter was primarily due to the transfer of a condominium construction loan into real estate owned (REO) totaling $5.7 million. Land acquisition and development loans and speculative construction loans, represent $25.9 million, or 71.8%, of the total non-performing loan balance at September 30, 2009. All of the loans are to borrowers located in Oregon and Washington, with the exception of one land acquisition and development loan totaling $1.4 million to a long-time Washington-based customer whose property is located in Southern California.
Non-performing assets remained stable at $56.6 million, or 6.55% of total assets, as of September 30, 2009 compared to $57.1 million, or 6.20% of total assets three months earlier. The allowance for loan losses was $18.1 million at quarter-end, equal to 2.41% of total loans, compared to 2.28% at June 30, 2009, and 2.05% a year ago. The increase in the allowance for loan losses as a percentage of loans is indicative of the continued economic uncertainty. Loans delinquent 31-89 days totaled $14.7 million, or 1.97% of total loans at September 30, 2009, compared to $11.9 million, or 1.53% of total loans at the end of June 2009, and $15.5 million, or 1.94% of total loans at the end of March 2009.
The Company has placed much emphasis on its commercial real estate portfolio, where we continue to monitor and stress test this portfolio. Based on results of the most recent stress test performed, we believe that any potential problems within this portfolio will result from individual loans and not from the portfolio as a whole. The total commercial real estate loan portfolio was $335.9 million as of September 30, 2009, compared to $327.4 million as of March 31, 2009. Of this total, 29% are owner occupied, and 71% are non-owner occupied as of September 30, 2009. Of the total commercial real estate portfolio, only two loans totaling $775,000, or 0.23% of the portfolio, were past due 30-89 days as of September 30, 2009. There were no loans in this portfolio more than 90 days past due. Management believes that its conservative underwriting standards for this portfolio, including a minimum debt service coverage ratio of 1.20 and a maximum loan-to-value of 75%, will help to protect the Company from future potential losses.
The allowance for loan losses to non-performing loans was 50.08% at September 30, 2009 compared to 43.30% at June 30, 2009. At September 30, 2009, $33.3 million, or 92% of the Company's non-performing loans, were reserved for or written down to their net realizable value. The total specific allowance for these non-performing loans was $4.4 million, or 13.2% of the outstanding loan balance. Management believes the low amount of specific allowance required for these non-performing loans reflects Riverview's conservative philosophy and underwriting standards. Most of the Company's non-performing assets are secured by real estate.
During the quarter, Riverview sold eight properties totaling $3.2 million, and transferred a condominium construction project totaling $5.7 million into REO, resulting in REO of $20.5 million at September 30, 2009. Included in REO are 38 properties limited to 24 lending relationships. These properties consist of ten single-family homes totaling $2.8 million, 23 residential building lots totaling $2.7 million, three finished subdivision properties totaling $4.3 million, one land development property totaling $5.0 million and one condo project totaling $5.7 million. All REO is located in Oregon and Washington.
Balance Sheet Review
The Company originated $46.6 million in new loans during the quarter, however, net loans decreased to $730.2 million at September 30, 2009 due primarily to Riverview's planned balance sheet restructuring strategy, which includes reducing the loan portfolio to preserve capital. Riverview continued to target reductions in residential construction related sectors within its loan portfolio, with an added focus on growing commercial and commercial real estate loans. At September 30, 2009, commercial and commercial real estate loans account for 75% of the total loan portfolio, compared to 73% of the loan portfolio three months earlier, while construction loans account for less than 13% of the loan portfolio, compared to 16% three months earlier. Total loan originations during the first six months of fiscal 2010 were $105.2 million.
Total construction loans as of September 30, 2009 decreased 24% from June 30, 2009. Within the construction loan portfolio, the residential construction portfolio is $42.3 million, or 5.7% of the total loan portfolio. "We have remained proactive in reducing our exposure to residential construction loans with speculative construction loans representing just $35.5 million of the residential construction portfolio at quarter-end, compared to $47.0 million three months earlier and $66.6 million a year ago," said Sheaffer. "The total land and speculative construction loan portfolio was also reduced to $120.2 million, compared to $134.9 million at the end of the previous quarter and $166.3 million a year ago."
During the quarter the Company continued to expand upon the strong customer deposit growth it experienced during the first quarter of fiscal 2010. Total deposits increased to $662.5 million at September 30, 2009, compared to $649.1 million three months earlier, and $637.5 million at September 30, 2008. "We continue to take advantage of new deposit opportunities in our marketplace as customers are shifting away from some of the larger institutions in our markets," said Ron Wysaske, President and COO. "As a result, we have been successful at attracting a new customer base to Riverview, which is evident by our customer branch deposit growth." Customer branch deposits increased $20.3 million during the quarter to $629.8 million at September 30, 2009. Core deposits, comprised of checking, savings and money market accounts, currently represent 57% of total deposits and certificates of deposits represent 43% of total deposits.
During the quarter, the Company used its excess cash reserves and increased deposit base to pay down its Federal Reserve Bank advances by $70 million. At September 30, 2009, total borrowings were $80.0 million compared to $150.0 million at June 30, 2009 and $122.9 million at March 31, 2009. Riverview continues to have no wholesale-brokered deposits in its deposit mix, instead choosing to focus on deposit growth within its retail branch network.
Operating Results
Net interest income for the second quarter of fiscal 2010 increased 3.1% to $8.9 million compared to $8.6 million in the second quarter a year ago. For the first six months of fiscal 2010, net interest income increased 3.4% to $17.6 million compared to $17.0 million in the same period in fiscal 2009. For the second quarter of fiscal 2010 the net interest margin improved to 4.35% compared to 4.25% in the previous linked quarter and 4.18% in the second quarter a year ago. "Again this quarter we experienced a decrease in the cost of deposits as well as an increase in the yield on loans, which contributed to our expanding net interest margin for the quarter and for the year-to-date period," said Kevin Lycklama, EVP and CFO. "This was despite the reversal of interest on loans placed on non-accrual status during the quarter, which accounted for a 6 basis point decrease in the quarterly net interest margin."
Non-interest income was $1.8 million for the second quarter of fiscal 2010, compared to $2.1 million in the previous quarter. During the quarter, the Company took a $201,000 other than temporary impairment (OTTI) charge on an investment in a trust preferred pooled security. The amortized cost of the security was $3.5 million at September 30, 2009. Fee income from Riverview Asset Management Corp. totaled $465,000 during the second quarter, compared to $509,000 for the previous quarter and $547,000 in the second quarter a year ago. Gains on sale of loans held for sale were $159,000 in the second quarter compared to $401,000 in the previous quarter and $81,000 in the second quarter a year ago. The decrease from the prior linked quarter was due to the significant increase in refinancing activity during the first quarter of fiscal 2010 as a result of a decrease in mortgage interest rates.
During the second quarter of fiscal 2010, non-interest expense was $7.3 million compared to $8.0 million in the preceding quarter and $6.7 million in the second quarter a year ago. Included in non-interest expense are several categories that are outside of the control of the Company, including FDIC insurance assessments and REO related expenses. FDIC insurance premiums increased $288,000 during the quarter compared to the second quarter of fiscal 2009, reflecting the industry-wide increase in assessments from the FDIC. REO related expenses and professional fees primarily associated with non-performing loans were $468,000 during the quarter.
In its continuing effort to reduce controllable costs, the Company made the decision to close its downtown Portland branch as of September 30, 2009. This branch was acquired as part of the Company's acquisition of American Pacific Bank in 2005. The decision to close this branch was primarily due to the expiration of the lease along with the low transaction volume at this location. Due to the Company's proactive efforts in working with its deposit customers, along with current bank products including remote deposit capture and Internet Banking, the Company anticipates that substantially all of these deposit accounts will be absorbed within the Company's existing branch network. In addition, the Company made the decision to close its loan production office in Clackamas, Oregon. All employees at both of these locations were transferred to other positions within the Company. "We are pleased that despite these closures, we were able to find new positions for all of our employees," stated Wysaske. The closure of these locations is expected to save approximately $350,000 per year from the reduction of rent and related expenses.
The efficiency ratio improved to 67.87% during the quarter, compared to 74.08% during the preceding quarter and 91.53% during the second quarter a year ago. Year-to-date, the efficiency ratio was 70.98% compared to 74.81% for the same period a year ago. Although management remains focused on managing controllable costs, it expects its efficiency ratio to remain at higher than normal levels during fiscal year 2010 as a result of the increase in FDIC insurance premiums and REO related expenses.
Shareholders' Equity
Shareholders' equity improved to $89.6 million at September 30, 2009, compared to $89.1 million three months earlier and $88.1 million a year ago. Book value per share improved to $8.20 at quarter-end, compared to $8.16 at June 30, 2009 and $8.06 a year ago and tangible book value per share improved to $5.78 at quarter-end, compared to $5.73 at June 30, 2009 and $5.65 a year earlier. Tangible shareholder equity increased to 7.5% of tangible assets at September 30, 2009 compared the 7.0% at June 30, 2009 and 7.1% at September 30, 2008.
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 $864 million, it is the parent company of the 86 year-old Riverview Community Bank, as well as Riverview Mortgage and Riverview Asset Management Corp. There are 17 branches, including ten in Clark County, two in Multnomah County and three lending centers. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers.
Financial measures that exclude taxes and loan loss provisions, and intangible assets are non-GAAP measures. To provide investors with a broader understanding of earnings, the Company provided non-GAAP financial measures for total income and tangible common equity, along with the GAAP measure of total income, in an effort to isolate the Company's core business operations and capital adequacy. Management believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and competitor's results and assist in forecasting performance for future periods because they exclude items we believe to be outside the normal operating results.
Statements concerning future performance, developments or events, concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements, which are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated objectives. These factors include but are not limited to: RVSB's ability to acquire shares according to internal repurchase guidelines, regional economic conditions and the company's ability to efficiently manage expenses. Additional factors that could cause actual results to differ materially are disclosed in Riverview Bancorp's recent filings with the SEC, including but not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
RIVERVIEW BANCORP, INC.
AND SUBSIDIARY
Consolidated Balance
Sheets
(In thousands, except Sept. 30, June 30, Sept. 30, Mar. 31,
share data) (Unaudited) 2009 2009 2008 2009
--------------------------------------------------------------------
ASSETS
Cash (including
interest-earning
accounts of $4,862,
$25,275, $11,786 and
$6,405) $ 18,513 $ 43,868 $ 26,214 $ 19,199
Loans held for sale 180 180 773 1,332
Investment securities
held to maturity, at
amortized cost 523 523 536 529
Investment securities
available for sale, at
fair value 8,451 13,349 9,473 8,490
Mortgage-backed
securities held to
maturity, at amortized 406 479 698 570
Mortgage-backed
securities available
for sale, at fair value 3,397 3,701 4,567 4,066
Loans receivable (net
of allowance for loan
losses of $18,071,
$17,776, $16,124 and
$16,974) 730,227 760,283 770,391 784,117
Real estate and other
pers. property owned 20,482 16,012 699 14,171
Prepaid expenses and
other assets 2,953 2,964 6,102 2,518
Accrued interest
receivable 2,891 2,966 3,280 3,054
Federal Home Loan Bank
stock, at cost 7,350 7,350 7,350 7,350
Premises and equipment,
net 18,770 19,187 20,281 19,514
Deferred income taxes,
net 8,008 8,116 4,442 8,209
Mortgage servicing
rights, net 528 545 271 468
Goodwill 25,572 25,572 25,572 25,572
Core deposit intangible,
net 368 395 488 425
Bank owned life
insurance 15,051 14,900 14,470 14,749
--------- --------- --------- ---------
TOTAL ASSETS $ 863,670 $ 920,390 $ 895,607 $ 914,333
========= ========= ========= =========
LIABILITIES AND EQUITY
LIABILITIES:
Deposit accounts $ 662,494 $ 649,068 $ 637,490 $ 670,066
Accrued expenses and
other liabilities 5,468 6,315 7,340 6,700
Advance payments by
borrowers for taxes and
insurance 435 190 375 360
Federal Home Loan Bank
advances 5,000 5,000 136,660 37,850
Federal Reserve Bank
advances 75,000 145,000 -- 85,000
Junior subordinated
debentures 22,681 22,681 22,681 22,681
Capital lease obligation 2,630 2,640 2,668 2,649
--------- --------- --------- ---------
Total liabilities 773,708 830,894 807,214 825,306
EQUITY:
Shareholders' equity
Serial preferred stock,
$.01 par value; 250,000
authorized, issued and
outstanding, none -- -- -- --
Common stock, $.01 par
value; 50,000,000
authorized, September
30, 2009 - 10,923,773
issued and outstanding;
June 30, 2009 -
10,923,773 issued and
outstanding; September
30, 2008 - 10,923,773
issued and outstanding;
March 31, 2009 -
10,923,773 issued and
outstanding; 109 109 109 109
Additional paid-in
capital 46,889 46,872 46,846 46,866
Retained earnings 44,867 44,665 42,024 44,322
Unearned shares issued
to employee stock
ownership trust (851) (876) (954) (902)
Accumulated other
comprehensive income
(loss) (1,447) (1,656) 33 (1,732)
--------- --------- --------- ---------
Total shareholders'
equity 89,567 89,114 88,058 88,663
Noncontrolling interest 395 382 335 364
--------- --------- --------- ---------
Total equity 89,962 89,496 88,393 89,027
--------- --------- --------- ---------
TOTAL LIABILITIES AND
EQUITY $ 863,670 $ 920,390 $ 895,607 $ 914,333
========= ========= ========= =========
RIVERVIEW BANCORP, INC.
AND SUBSIDIARY
Consolidated Statements of Operations
Three Months Ended
(In thousands, except share data) Sept. 30, June 30, Sept. 30,
(Unaudited) 2009 2009 2008
---------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans
receivable $ 11,639 $ 11,710 $ 13,425
Interest on investment
securities-taxable 66 98 121
Interest on investment
securities-non taxable 31 32 37
Interest on mortgage-backed
securities 35 40 55
Other interest and dividends 26 14 91
-----------------------------------
Total interest income 11,797 11,894 13,729
INTEREST EXPENSE:
Interest on deposits 2,448 2,694 3,800
Interest on borrowings 436 520 1,287
-----------------------------------
Total interest expense 2,884 3,214 5,087
-----------------------------------
Net interest income 8,913 8,680 8,642
Less provision for loan losses 3,200 2,350 7,200
-----------------------------------
Net interest income after
provision for loan losses 5,713 6,330 1,442
NON-INTEREST INCOME:
Total other-than-
temporary impairment
losses (114) (279) --
Portion of losses
recognized in other
comprehensive loss (87) 21 --
-----------------------------------
Net impairment losses
recognized in earnings (201) (258) --
Fees and service charges 1,151 1,244 1,219
Asset management fees 465 509 547
Gain on sale of loans
held for sale 159 401 81
Impairment of investment
security -- -- (3,414)
Bank owned life
insurance income 151 151 148
Other 70 56 106
-----------------------------------
Total non-interest income 1,795 2,103 (1,313)
NON-INTEREST EXPENSE:
Salaries and employee benefits 3,689 3,875 3,740
Occupancy and depreciation 1,217 1,233 1,251
Data processing 237 240 208
Amortization of core deposit
intangible 28 30 33
Advertising and marketing expense 151 159 255
FDIC insurance premium 445 695 157
State and local taxes 151 149 169
Telecommunications 113 116 114
Professional fees 330 304 248
Other 906 1,187 533
-----------------------------------
Total non-interest expense 7,267 7,988 6,708
-----------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 241 445 (6,579)
PROVISION (BENEFIT) FOR INCOME
TAXES 39 102 (2,381)
-----------------------------------
NET INCOME (LOSS) $ 202 $ 343 $ (4,198)
===================================
Earnings (loss) per common share:
Basic $ 0.02 $ 0.03 $ (0.39)
Diluted $ 0.02 $ 0.03 $ (0.39)
Weighted average number of
shares outstanding:
Basic 10,717,471 10,711,313 10,692,838
Diluted 10,717,471 10,711,313 10,692,838
Six Months Ended
(In thousands, except share data) Sept. 30, Sept. 30,
(Unaudited) 2009 2008
---------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 23,349 $ 26,749
Interest on investment securities-taxable 164 177
Interest on investment securities-non
taxable 63 69
Interest on mortgage-backed securities 75 116
Other interest and dividends 40 184
-------------------------
Total interest income 23,691 27,295
INTEREST EXPENSE:
Interest on deposits 5,142 7,906
Interest on borrowings 956 2,380
-------------------------
Total interest expense 6,098 10,286
-------------------------
Net interest income 17,593 17,009
Less provision for loan losses 5,550 9,950
-------------------------
Net interest income after provision for
loan losses 12,043 7,059
NON-INTEREST INCOME:
Total other-than-temporary impairment
losses (393) --
Portion of losses recognized in other
comprehensive loss (66) --
-------------------------
Net impairment losses recognized in
earnings (459) --
Fees and service charges 2,395 2,429
Asset management fees 974 1,171
Gain on sale of loans held for sale 560 133
Impairment of investment security -- (3,414)
Bank owned life insurance income 302 294
Other 126 256
-------------------------
Total non-interest income 3,898 869
NON-INTEREST EXPENSE:
Salaries and employee benefits 7,564 7,624
Occupancy and depreciation 2,450 2,484
Data processing 477 407
Amortization of core deposit intangible 58 68
Advertising and marketing expense 310 436
FDIC insurance premium 1,140 271
State and local taxes 300 344
Telecommunications 229 238
Professional fees 634 450
Other 2,093 1,053
-------------------------
Total non-interest expense 15,255 13,375
-------------------------
INCOME (LOSS) BEFORE INCOME TAXES 686 (5,447)
PROVISION (BENEFIT) FOR INCOME TAXES 141 (2,042)
-------------------------
NET INCOME (LOSS) $ 545 $ (3,405)
=========================
Earnings (loss) per common share:
Basic $ 0.05 $ (0.32)
Diluted $ 0.05 $ (0.32)
Weighted average number of shares
outstanding:
Basic 10,714,409 10,685,459
Diluted 10,714,409 10,685,459
(Dollars in At or for the At or for the
thousands) three months ended six months ended
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2009 2009 2008 2009 2008
--------- --------- --------- --------- ---------
AVERAGE BALANCES
----------------
Average interest-
earning assets $ 813,673 $ 821,429 $ 822,468 $ 817,531 $ 811,443
Average interest-
bearing
liabilities 707,876 726,740 711,641 717,257 705,142
Net average
earning assets 105,797 94,689 110,827 100,274 106,301
Average loans 765,470 791,548 784,227 778,438 775,681
Average deposits 655,388 645,942 631,353 650,691 636,483
Average equity 91,303 90,481 94,303 90,894 94,656
Average tangible
equity 64,803 63,994 67,940 64,400 68,271
Sept. 30, June 30, Sept. 30,
ASSET QUALITY 2009 2009 2008
------------- --------- --------- ---------
Non-performing
loans 36,085 41,057 22,071
Non-performing
loans to total
loans 4.82% 5.28% 2.80%
Real estate/
repossessed
assets owned 20,482 16,012 699
Non-performing
assets 56,567 57,069 22,770
Non-performing
assets to total
assets 6.55% 6.20% 2.54%
Net loan charge-
offs in the
quarter 2,905 1,548 4,183
Net charge-offs
in the quarter/
average net loans 1.51% 0.78% 2.12%
Allowance for
loan losses 18,071 17,776 16,124
Allowance for
loan losses and
unfunded loan
commitments 18,355 18,052 16,410
Average interest-
earning assets
to average
interest-bearing
liabilities 114.95% 113.03% 115.57%
Allowance for
loan losses to
non-performing
loans 50.08% 43.30% 73.06%
Allowance for
loan losses to
total loans 2.41% 2.28% 2.05%
Allowance for
loan losses and
unfunded loan
commitments to
total loans 2.45% 2.32% 2.08%
Shareholders'
equity to assets 10.37% 9.68% 9.83%
Sept. 30, June 30, Sept. 30, March 31,
LOAN MIX 2009 2009 2008 2009
-------- --------- --------- --------- ---------
Commercial and
construction
Commercial $ 112,578 $ 127,366 $ 123,569 $ 127,150
Other real estate
mortgage 449,405 437,590 442,482 447,652
Real estate construction 94,319 123,505 134,930 139,476
--------- --------- --------- ---------
Total commercial and
construction 656,302 688,461 700,981 714,278
Consumer
Real estate one-to-four
family 88,862 86,686 82,062 83,762
Other installment 3,134 2,912 3,472 3,051
--------- --------- --------- ---------
Total consumer 91,996 89,598 85,534 86,813
--------- --------- --------- ---------
Total loans 748,298 778,059 786,515 801,091
Less:
Allowance for loan
losses 18,071 17,776 16,124 16,974
--------- --------- --------- ---------
Loans receivable, net $ 730,227 $ 760,283 $ 770,391 $ 784,117
========= ========= ========= =========
COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOAN TYPES BASED ON LOAN
PURPOSE
-------------------------------------------------------------------
Commercial
Commercial Real &
Real Estate Construc-
Estate Construc- tion
Commercial Mortgage tion Total
---------- --------- --------- -----
September 30, 2009 (Dollars in thousands)
------------------
Commercial $ 112,578 $ -- $ -- $ 112,578
Commercial construction -- -- 51,980 51,980
Office buildings -- 89,801 -- 89,801
Warehouse/industrial -- 39,714 -- 39,714
Retail/shopping centers/
strip malls -- 79,932 -- 79,932
Assisted living facilities -- 35,156 -- 35,156
Single purpose facilities -- 91,322 -- 91,322
Land -- 84,681 -- 84,681
Multi-family -- 28,799 -- 28,799
One-to-four family -- -- 42,339 42,339
------------------------------------------
Total $ 112,578 $ 449,405 $ 94,319 $ 656,302
==========================================
March 31, 2009 (Dollars in thousands)
--------------
Commercial $ 127,150 $ -- $ -- $ 127,150
Commercial construction -- -- 65,459 65,459
Office buildings -- 90,621 -- 90,621
Warehouse/industrial -- 40,214 -- 40,214
Retail/shopping centers/
strip malls -- 81,233 -- 81,233
Assisted living facilities -- 26,743 -- 26,743
Single purpose facilities -- 88,574 -- 88,574
Land -- 91,873 -- 91,873
Multi-family -- 28,394 -- 28,394
One-to-four family -- -- 74,017 74,017
------------------------------------------
Total $ 127,150 $ 447,652 $ 139,476 $ 714,278
==========================================
(Dollars in thousands)
Sept. 30, June 30, Sept. 30, March 31,
DEPOSIT MIX 2009 2009 2008 2009
----------- --------- --------- --------- ---------
Interest checking $ 69,507 $ 91,097 $ 80,266 $ 96,629
Regular savings 28,858 28,660 27,528 28,753
Money market deposit
accounts 189,150 190,289 166,834 178,479
Non-interest checking 87,495 85,261 83,555 88,528
Certificates of deposit 287,484 253,761 279,307 277,677
--------- --------- --------- ---------
Total deposits $ 662,494 $ 649,068 $ 637,490 $ 670,066
========= ========= ========= =========
DETAIL OF NON-PERFORMING ASSETS
--------------------------------
North- Southwest Other
west Other Washing- Washing-
Oregon Oregon ton ton Other Total
-------- -------- -------- -------- -------- --------
September 30,
2009 (dollars in thousands)
------------
Non-performing
assets
Commercial $ 50 $ 3,187 $ 4,887 $ -- $ -- $ 8,124
Commercial
real estate -- -- -- -- -- --
Land -- 2,640 10,429 67 1,380 14,516
Multi-family -- -- -- 169 -- 169
Commercial
construction -- -- -- 31 -- 31
One-to-four
family
construction 5,917 3,322 2,141 -- -- 11,380
Real estate
one-to-four
family 472 -- 1,324 69 -- 1,865
Consumer -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total non-
performing
loans 6,439 9,149 18,781 336 1,380 36,085
REO 449 7,454 7,197 5,382 -- 20,482
-------- -------- -------- -------- -------- --------
Total non-
performing
assets $ 6,888 $ 16,603 $ 25,978 $ 5,718 $ 1,380 $ 56,567
======== ======== ======== ======== ======== ========
DETAIL OF SPEC CONSTRUCTION AND LAND DEVELOPMENT LOANS
------------------------------------------------------
North- Southwest Other
west Other Washing- Washing-
Oregon Oregon ton ton Other Total
-------- -------- -------- -------- -------- --------
September 30,
2009 (dollars in thousands)
-------------
Land and Spec
Construction
Loans
Land
Development
Loans $ 6,711 $ 6,835 $ 61,575 $ 2,299 $ 7,261 $ 84,681
Spec
Construction
Loans 12,783 6,857 14,143 1,696 -- 35,479
-------- -------- -------- -------- -------- --------
Total Land
and Spec
Construction $ 19,494 $ 13,692 $ 75,718 $ 3,995 $ 7,261 $120,160
======== ======== ======== ======== ======== ========
At or for the three months ended
Sept. 30, June 30, Sept. 30,
SELECTED OPERATING DATA 2009 2009 2008
----------------------- ----------- ----------- -----------
Efficiency ratio (4) 67.87% 74.08% 91.53%
Coverage ratio (6) 122.65% 108.66% 128.83%
Return on average assets (1) 0.09% 0.15% -1.86%
Return on average equity (1) 0.88% 1.52% -17.66%
Average rate earned on
interest-earned assets 5.76% 5.82% 6.63%
Average rate paid oninterest-
bearing liabilities 1.62% 1.77% 2.84%
Spread (7) 4.14% 4.05% 3.79%
Net interest margin 4.35% 4.25% 4.18%
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.02 $ 0.03 $ (0.39)
Diluted earnings per share (3) 0.02 0.03 (0.39)
Book value per share (5) 8.20 8.16 8.06
Tangible book value per
share (5) 5.78 5.73 5.65
Market price per share:
High for the period $ 4.32 $ 3.90 $ 7.38
Low for the period 2.95 2.63 4.52
Close for period end 3.70 3.02 5.96
Cash dividends declared per
share -- -- 0.045
Average number of shares
outstanding:
Basic (2) 10,717,471 10,711,313 10,692,838
Diluted (3) 10,717,471 10,711,313 10,692,838
At or for the six
months ended
Sept. 30, Sept. 30,
SELECTED OPERATING DATA 2009 2008
----------------------- ----------- -----------
Efficiency ratio (4) 70.98% 74.81%
Coverage ratio (6) 115.33% 127.17%
Return on average assets (1) 0.12% -0.77%
Return on average equity (1) 1.20% -7.17%
Average rate earned on interest-earned
assets 5.79% 6.72%
Average rate paid on interest-bearing
liabilities 1.70% 2.91%
Spread (7) 4.09% 3.81%
Net interest margin 4.30% 4.19%
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.05 $ (0.32)
Diluted earnings per share (3) 0.05 (0.32)
Book value per share (5) 8.20 8.06
Tangible book value per share (5) 5.78 5.65
Market price per share:
High for the period $ 4.32 $ 9.79
Low for the period 2.63 4.52
Close for period end 3.70 5.96
Cash dividends declared per share -- 0.135
Average number of shares outstanding:
Basic (2) 10,714,409 10,685,459
Diluted (3) 10,714,409 10,685,459
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be
released.
(3) Amounts calculated 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:
Riverview Bancorp, Inc.
Pat Sheaffer
Ron Wysaske
360-693-6650
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