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Riverview Bancorp Earns $4.2 Million in First Quarter of Fiscal Year 2020; Highlighted by Strong Loan Growth and Solid Revenue Generation

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VANCOUVER, Wash., July 23, 2019 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today announced earnings for the first fiscal quarter ended June 30, 2019. For the first quarter, net income was $4.2 million, or $0.18 per diluted share, which was in line with the operating results reported for the preceding quarter. Net income was $4.4 million, or $0.20 per diluted share, in the first fiscal quarter a year ago.

“We are pleased to report strong earnings for the first quarter,” said Kevin Lycklama, president and chief executive officer. “Our team executed well in the first quarter generating great momentum in our core business lines. With our healthy loan pipelines and sound financial condition, we are confident that our solid operating results will continue in future periods, and that we are well positioned to take advantage of growth opportunities in our market in the upcoming year.”

First Quarter Highlights (at or for the period ended June 30, 2019)

  • Net income of $4.2 million, or $0.18 per diluted share.

  • Net interest margin (NIM) was 4.32% for the quarter.

  • Return on average assets of 1.46% for the first quarter.

  • Return on average equity of 12.34% for the first quarter.

  • Total loans were $888.0 million at June 30, 2019, a 7.4% increase over $826.6 million a year ago.

  • Cost of deposits remained low at 0.15% for the quarter compared to 0.10% for the preceding quarter.

  • Non-performing assets were 0.13% of total assets.

  • Total risk-based capital ratio was 17.18% and Tier 1 leverage ratio was 11.94%.

  • Increased quarterly cash dividend by 12.5% to $0.045 per share, generating a current dividend yield of 2.16% based on the share price at close of market on July 12, 2019.

Income Statement

Return on average assets was 1.46% in the first quarter of fiscal year 2020 compared to 1.57% in the first fiscal quarter of 2019. The return on average equity and average tangible equity (non-GAAP) remained healthy at 12.34% and 15.52%, respectively, compared to 14.98% and 19.62% for the first fiscal quarter a year ago.

“Riverview continued to perform well, generating another quarter of strong core earnings, solid loan growth, excellent asset quality and strong capital levels,” stated Lycklama.

Total revenues increased during the quarter to $14.6 million compared to $14.5 million in both the prior quarter and the year ago quarter. The increase was primarily driven by an increase in total loans and an increase in our non-interest income.

Net interest income for the quarter was $11.4 million compared to $11.5 million in both the preceding quarter and in the first fiscal quarter a year ago. The decline in net interest income compared to the preceding quarter was attributable to increased funding costs.

Riverview’s first fiscal quarter net interest margin was 4.32% compared to 4.39% in the prior quarter and 4.40% in the first fiscal quarter a year ago. The quarter ended June 30, 2018 included the collection of approximately $585,000 of non-accrual interest from prior charged-off loans which added 23 basis points to the net interest margin for that period. The accretion on purchased loans totaled $108,000 during the current quarter compared to $198,000 during the preceding quarter, resulting in a four-basis point increase in the NIM for the current period compared to a seven basis-point increase for the preceding quarter.

“Higher deposit costs and a flatter yield curve contributed to decrease in the net interest margin during the quarter,” said David Lam, executive vice president and chief financial officer. “While our loan yield remained relatively flat compared to the prior quarter, we experienced an increase in our funding costs due to higher interest rates as a result of the prior Fed rate hikes.”

The weighted average rate on loans originated during the quarter ended June 30, 2019 was 5.73% compared to 5.81% for the quarter ended March 31, 2019 and 5.37% for the quarter ended June 30, 2018.

Non-interest income increased to $3.2 million in the first fiscal quarter compared to $3.0 million in the preceding quarter. The improvement in non-interest income was primarily driven by an increase in asset management fees. This increase was offset by a decrease in fees and service charges which was a result of a decrease in loan prepayment fees of $299,000 during the first fiscal quarter compared to the preceding quarter. Net gains on sale from loans held for sale also increased during the quarter, as a result of a rise in mortgage originations sold in the secondary market.

Asset management fees increased 23.4% compared to the same quarter a year ago. During the first fiscal quarter, asset management fees were $1.1 million compared to $987,000 in the preceding quarter and $926,000 in the first fiscal quarter a year ago. Riverview Trust Company’s assets under management increased $119.6 million, or 20.8%, over the last twelve months. Assets under management were $694.8 million at June 30, 2019 compared to $646.0 million three months earlier and $575.2 million one year earlier.

Non-interest expense was $9.2 million during the first fiscal quarter of 2020 compared to $9.0 million in the preceding quarter. The increase in expenses were primarily centered around a number of strategic initiatives to drive further growth, expand customer relationships and improve profitability. The addition of several new seasoned bankers to our lending teams drove the increase in salaries and employee benefits. Additionally, Riverview launched its new online mortgage origination platform during the quarter and continued to expand its digital product offerings which contributed to an increase in technology related expenses during the current quarter. The Company will continue to prudently manage its operating expenses in the current fiscal year.

The efficiency ratio was 62.95% for the first fiscal quarter compared to 61.63% in the preceding quarter and 62.03% in the first fiscal quarter a year ago.

For the first fiscal quarter of 2020, income tax expense totaled $1.2 million, for an effective tax rate of 22.5%, compared to 22.3% in the first fiscal quarter of 2019.

Balance Sheet Review

Riverview’s total loans increased $11.9 million during the quarter, a 5.6% annualized increase, to $888.0 million and increased $61.4 million, or 7.4%, when compared to $826.6 million a year ago. The growth during the quarter was mostly concentrated in commercial business loans, commercial real estate and commercial construction loans with a decrease in consumer loans. While loan demand has remained strong, loan balances have continued to be impacted by pay downs on existing loans.

The loan pipeline increased to $47.7 million at June 30, 2019 compared to $38.2 million at the end of the prior quarter. Undisbursed construction loans totaled $69.0 million at June 30, 2019 compared to $63.0 million three months earlier. The majority of the undisbursed construction loans are expected to fund over the next several quarters.

“We experienced strong loan growth in our commercial real estate portfolio during the first quarter,” noted Lycklama. “Our strong loan pipelines reflect the strength of our local markets and the opportunities for continued loan growth. Total period-end loan balances exceeded our fourth quarter total average loans by $10.6 million, providing solid momentum heading into the second quarter.”

Total deposits were $922.3 million at June 30, 2019 compared to $925.1 million three months earlier. Deposit costs increased five basis-points during the quarter to 0.15% due to deposit pricing pressure and continued competition.

Shareholders’ equity improved to $138.7 million at June 30, 2019 compared to $133.1 million three months earlier and $119.8 million a year earlier. Tangible book value per share (non-GAAP) increased to $4.88 at June 30, 2019 compared to $4.65 at March 31, 2019 and $4.06 at June 30, 2018. Riverview increased its quarterly cash dividend to $0.045 per share. The dividend was paid on July 23, 2019 to shareholders of record on July 12, 2019.

Credit Quality

Riverview’s asset quality continues to improve, with non-performing loans, non-performing assets and classified assets all decreasing compared to a year ago. Riverview recorded no provision for loan losses during the first fiscal quarter of 2020, or in the linked quarter. In the first fiscal quarter a year ago, Riverview recorded a recapture for loan losses of $200,000.

Non-performing loans decreased to $1.5 million, or 0.16% of total loans, at June 30, 2019 compared to $2.3 million, or 0.28% of total loans, at June 30, 2018. Riverview had no real estate owned balances at June 30, 2019.

Net loan charge offs were $15,000 during the first fiscal quarter of 2020 compared to $45,000 in the preceding quarter. In the first fiscal quarter a year ago, Riverview had net loan recoveries of $783,000 which was primarily due to the collection of a prior charge off on a single loan.

Classified assets decreased to $6.0 million at June 30, 2019 compared to $6.3 million at March 31, 2019 and $7.2 million at June 30, 2018. The classified asset to total capital ratio was 4.1% at June 30, 2019 compared to 4.5% three months earlier and 5.6% a year earlier.

At June 30, 2019, the allowance for loan losses totaled $11.4 million compared to $11.5 million at March 31, 2019. The allowance for loan losses represented 1.29% of total loans at June 30, 2019 compared to 1.31% of total loans at the end of the prior quarter. Included in the carrying value of loans are net discounts on the MBank purchased loans which may reduce the need for an allowance for loan losses on these loans because they are carried at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $1.4 million at June 30, 2019 compared to $1.5 million at the end of the prior quarter and $2.1 million at June 30, 2018.

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 17.18% and a Tier 1 leverage ratio of 11.94% at June 30, 2019. The Company’s tangible common equity to average tangible assets ratio (non-GAAP) increased to 9.73% at June 30, 2019.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. We believe that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Riverview provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible shareholders’ equity is calculated as shareholders’ equity less goodwill and other intangible assets. In addition, tangible assets are total assets less goodwill and other intangible assets. We calculate tangible book value per share by dividing tangible shareholders’ equity by the number of common shares outstanding. This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied and is not audited. Further, the non-GAAP financial measure should not be considered in isolation or as a substitute for book value per share or total shareholders' equity determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

(Dollars in thousands)

June 30, 2019

March 31, 2019

June 30, 2018

Shareholders' equity

$

138,663

$

133,122

$

119,828

Goodwill

27,076

27,076

27,076

Core deposit intangible, net

880

920

1,057

Tangible shareholders' equity

$

110,707

$

105,126

$

91,695

Total assets

$

1,165,234

$

1,156,921

$

1,140,268

Goodwill

27,076

27,076

27,076

Core deposit intangible, net

880

920

1,057

Tangible assets

$

1,137,278

$

1,128,925

$

1,112,135

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 $1.17 billion at June 30, 2019, it is the parent company of the 96-year-old Riverview Community Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail clients. There are 18 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 6 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, The Columbian and The Gresham Outlook.

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

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

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2020 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)

June 30, 2019

March 31, 2019

June 30, 2018

ASSETS

Cash (including interest-earning accounts of $6,852, $5,844

$

24,112

$

22,950

$

33,268

and $15,791)

Certificate of deposits held for investment

747

747

4,971

Loans held for sale

-

909

-

Investment securities:

Available for sale, at estimated fair value

170,762

178,226

200,100

Held to maturity, at amortized cost

33

35

40

Loans receivable (net of allowance for loan losses of $11,442, $11,457

and $11,349)

876,535

864,659

815,237

Prepaid expenses and other assets

8,705

4,596

3,759

Accrued interest receivable

3,989

3,919

3,578

Federal Home Loan Bank stock, at cost

3,658

3,644

1,353

Premises and equipment, net

15,453

15,458

15,674

Deferred income taxes, net

3,520

4,195

5,039

Mortgage servicing rights, net

280

296

380

Goodwill

27,076

27,076

27,076

Core deposit intangible, net

880

920

1,057

Bank owned life insurance

29,484

29,291

28,736

TOTAL ASSETS

$

1,165,234

$

1,156,921

$

1,140,268

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:

Deposits

$

922,274

$

925,068

$

982,350

Accrued expenses and other liabilities

17,675

12,536

8,579

Advance payments by borrowers for taxes and insurance

689

631

580

Federal Home Loan Bank advances

56,941

56,586

-

Junior subordinated debentures

26,597

26,575

26,507

Capital lease obligations

2,395

2,403

2,424

Total liabilities

1,026,571

1,023,799

1,020,440

SHAREHOLDERS' EQUITY:

Serial preferred stock, $.01 par value; 250,000 authorized,

issued and outstanding, none

-

-

-

Common stock, $.01 par value; 50,000,000 authorized,

June 30, 2019 – 22,705,385 issued and outstanding;

March 31, 2019 – 22,607,712 issued and outstanding;

226

226

226

June 30, 2018 – 22,570,179 issued and outstanding;

Additional paid-in capital

65,326

65,094

64,882

Retained earnings

73,602

70,428

60,204

Accumulated other comprehensive loss

(491

)

(2,626

)

(5,484

)

Total shareholders’ equity

138,663

133,122

119,828

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,165,234

$

1,156,921

$

1,140,268


RIVERVIEW BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended

(In thousands, except share data) (Unaudited)

June 30, 2019

March 31, 2019

June 30, 2018

INTEREST INCOME:

Interest and fees on loans receivable

$

11,514

$

11,338

$

10,777

Interest on investment securities - taxable

878

1,032

1,198

Interest on investment securities - nontaxable

37

36

37

Other interest and dividends

87

58

93

Total interest and dividend income

12,516

12,464

12,105

INTEREST EXPENSE:

Interest on deposits

351

237

260

Interest on borrowings

735

693

358

Total interest expense

1,086

930

618

Net interest income

11,430

11,534

11,487

Provision for loan losses

-

-

(200

)

Net interest income after provision for loan losses

11,430

11,534

11,687

NON-INTEREST INCOME:

Fees and service charges

1,677

1,743

1,755

Asset management fees

1,143

987

926

Net gain on sale of loans held for sale

96

39

152

Bank owned life insurance

193

189

179

Other, net

67

50

40

Total non-interest income, net

3,176

3,008

3,052

NON-INTEREST EXPENSE:

Salaries and employee benefits

5,715

5,665

5,578

Occupancy and depreciation

1,320

1,318

1,359

Data processing

680

593

631

Amortization of core deposit intangible

40

46

46

Advertising and marketing

210

160

192

FDIC insurance premium

80

80

76

State and local taxes

195

176

168

Telecommunications

86

87

93

Professional fees

325

306

284

Other

543

531

592

Total non-interest expense

9,194

8,962

9,019

INCOME BEFORE INCOME TAXES

5,412

5,580

5,720

PROVISION FOR INCOME TAXES

1,220

1,373

1,278

NET INCOME

$

4,192

$

4,207

$

4,442

Earnings per common share:

Basic

$

0.19

$

0.19

$

0.20

Diluted

$

0.18

$

0.19

$

0.20

Weighted average number of common shares outstanding:

Basic

22,619,580

22,605,012

22,570,179

Diluted

22,685,343

22,663,997

22,651,732


(Dollars in thousands)

At or for the three months ended

June 30, 2019

March 31, 2019

June 30, 2018

AVERAGE BALANCES

Average interest–earning assets

$

1,066,247

$

1,066,133

$

1,048,573

Average interest-bearing liabilities

728,976

723,805

726,065

Net average earning assets

337,271

342,328

322,508

Average loans

877,427

869,950

812,977

Average deposits

920,558

929,219

971,652

Average equity

136,592

131,400

118,976

Average tangible equity (non-GAAP)

108,614

103,378

90,814

ASSET QUALITY

June 30, 2019

March 31, 2019

June 30, 2018

Non-performing loans

$

1,457

$

1,519

$

2,344

Non-performing loans to total loans

0.16

%

0.17

%

0.28

%

Real estate/repossessed assets owned

$

-

$

-

$

-

Non-performing assets

$

1,457

$

1,519

$

2,344

Non-performing assets to total assets

0.13

%

0.13

%

0.21

%

Net loan charge-offs (recoveries) in the quarter

$

15

$

45

$

(783

)

Net charge-offs (recoveries) in the quarter/average net loans

0.01

%

0.02

%

(0.39

)%

Allowance for loan losses

$

11,442

$

11,457

$

11,349

Average interest-earning assets to average

interest-bearing liabilities

146.27

%

147.30

%

144.42

%

Allowance for loan losses to

non-performing loans

785.31

%

754.25

%

484.17

%

Allowance for loan losses to total loans

1.29

%

1.31

%

1.37

%

Shareholders’ equity to assets

11.90

%

11.51

%

10.51

%

CAPITAL RATIOS

Total capital (to risk weighted assets)

17.18

%

16.88

%

15.59

%

Tier 1 capital (to risk weighted assets)

15.93

%

15.63

%

14.33

%

Common equity tier 1 (to risk weighted assets)

15.93

%

15.63

%

14.33

%

Tier 1 capital (to average tangible assets)

11.94

%

11.56

%

10.46

%

Tangible common equity (to average tangible assets) (non-GAAP)

9.73

%

9.31

%

8.24

%

DEPOSIT MIX

June 30, 2019

March 31, 2019

June 30, 2018

Interest checking

$

184,658

$

183,388

$

184,286

Regular savings

160,937

137,503

136,368

Money market deposit accounts

205,881

233,317

259,340

Non-interest checking

280,336

284,854

288,890

Certificates of deposit

90,462

86,006

113,466

Total deposits

$

922,274

$

925,068

$

982,350


COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS

Other

Commercial

Commercial

Real Estate

Real Estate

& Construction

Business

Mortgage

Construction

Total

June 30, 2019

(Dollars in thousands)

Commercial business

$

164,400

$

-

$

-

$

164,400

Commercial construction

-

-

73,252

73,252

Office buildings

-

115,279

-

115,279

Warehouse/industrial

-

103,864

-

103,864

Retail/shopping centers/strip malls

-

64,989

-

64,989

Assisted living facilities

-

1,159

-

1,159

Single purpose facilities

-

187,082

-

187,082

Land

-

16,362

-

16,362

Multi-family

-

50,674

-

50,674

One-to-four family construction

-

-

20,464

20,464

Total

$

164,400

$

539,409

$

93,716

$

797,525

March 31, 2019

Commercial business

$

162,796

$

-

$

-

$

162,796

Commercial construction

-

-

70,533

70,533

Office buildings

-

118,722

-

118,722

Warehouse/industrial

-

91,787

-

91,787

Retail/shopping centers/strip malls

-

64,934

-

64,934

Assisted living facilities

-

2,740

-

2,740

Single purpose facilities

-

183,249

-

183,249

Land

-

17,027

-

17,027

Multi-family

-

51,570

-

51,570

One-to-four family construction

-

-

20,349

20,349

Total

$

162,796

$

530,029

$

90,882

$

783,707

LOAN MIX

June 30, 2019

March 31, 2019

June 30, 2018

(Dollars in thousands)

Commercial and construction

Commercial business

$

164,400

$

162,796

$

148,257

Other real estate mortgage

539,409

530,029

524,117

Real estate construction

93,716

90,882

53,156

Total commercial and construction

797,525

783,707

725,530

Consumer

Real estate one-to-four family

83,256

84,053

88,212

Other installment

7,196

8,356

12,844

Total consumer

90,452

92,409

101,056

Total loans

887,977

876,116

826,586

Less:

Allowance for loan losses

11,442

11,457

11,349

Loans receivable, net

$

876,535

$

864,659

$

815,237


DETAIL OF NON-PERFORMING ASSETS

Northwest

Other

Southwest

Oregon

Oregon

Washington

Other

Total

June 30, 2019

(dollars in thousands)

Commercial business

$

52

$

-

$

248

$

-

$

300

Commercial real estate

-

869

180

-

1,049

Consumer

-

-

88

20

108

Total non-performing assets

$

52

$

869

$

516

$

20

$

1,457

DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS

Northwest

Other

Southwest

Oregon

Oregon

Washington

Total

June 30, 2019

(dollars in thousands)

Land development

$

2,181

$

1,890

$

12,291

$

16,362

Speculative construction

2,035

118

15,353

17,506

Total land development and speculative construction

$

4,216

$

2,008

$

27,644

$

33,868


At or for the three months ended

SELECTED OPERATING DATA

June 30, 2019

March 31, 2019

June 30, 2018

Efficiency ratio (4)

62.95

%

61.63

%

62.03

%

Coverage ratio (6)

124.32

%

128.70

%

127.36

%

Return on average assets (1)

1.46

%

1.49

%

1.57

%

Return on average equity (1)

12.34

%

12.98

%

14.98

%

Return on average tangible equity (1) (non-GAAP)

15.52

%

16.50

%

19.62

%

NET INTEREST SPREAD

Yield on loans

5.28

%

5.29

%

5.32

%

Yield on investment securities

2.10

%

2.37

%

2.31

%

Total yield on interest-earning assets

4.73

%

4.75

%

4.63

%

Cost of interest-bearing deposits

0.22

%

0.15

%

0.15

%

Cost of FHLB advances and other borrowings

3.42

%

3.60

%

4.37

%

Total cost of interest-bearing liabilities

0.60

%

0.52

%

0.34

%

Spread (7)

4.13

%

4.23

%

4.29

%

Net interest margin

4.32

%

4.39

%

4.40

%

PER SHARE DATA

Basic earnings per share (2)

$

0.19

$

0.19

$

0.20

Diluted earnings per share (3)

0.18

0.19

0.20

Book value per share (5)

6.11

5.89

5.31

Tangible book value per share (5) (non-GAAP)

4.88

4.65

4.06

Market price per share:

High for the period

$

8.54

$

8.04

$

9.52

Low for the period

7.07

7.14

8.39

Close for period end

8.54

7.31

8.44

Cash dividends declared per share

0.0450

0.0400

0.0350

Average number of shares outstanding:

Basic (2)

22,619,580

22,605,012

22,570,179

Diluted (3)

22,685,343

22,663,997

22,651,732

(1) Amounts for the quarterly periods are annualized.

(2) Amounts exclude ESOP shares not committed to be released.

(3) Amounts exclude ESOP shares not committed to be released and include common stock equivalents.

(4) Non-interest expense divided by net interest income and non-interest income.

(5) Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.

(6) Net interest income divided by non-interest expense.

(7) Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

Contact: Kevin Lycklama or David Lam
Riverview Bancorp, Inc. 360-693-6650