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Riverview Bancorp Earns $4.4 Million in Third Fiscal Quarter 2019 Highlighted by Strong Loan Growth and Expanding Net Interest Margin

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VANCOUVER, Wash., Jan. 24, 2019 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported net income increased to $4.4 million, or $0.19 per diluted share, in its third fiscal quarter ended December 31, 2018, compared to $4.2 million, or $0.19 per diluted share, in the preceding quarter and $1.5 million, or $0.07 per diluted share, in the third fiscal quarter a year ago.

“We reported strong third quarter operating results, delivering steady loan growth and solid revenue while expanding our net interest margin,” said Kevin Lycklama, president and chief executive officer. “Overall, these factors contributed to a return on average assets of 1.53% and a return on average equity of 13.90% for the quarter. The economic fundamentals in our market are strong and we remain optimistic about the upcoming fiscal year.”

Third Quarter Highlights (at or for the period ended December 31, 2018)

  • Net income grew to $4.4 million, or $0.19 per diluted share.

  • Net interest margin (NIM) expanded by six basis points to 4.39% compared to the preceding quarter.

  • Return on average assets increased to 1.53% compared to 1.46% in the preceding quarter.

  • Return on average equity improved to 13.90% compared to 13.68% in the preceding quarter.

  • Total loans increased $18.8 million during the quarter to $868.6 million at December 31, 2018.

  • Cost of deposits remained low at 0.10% for the quarter, the same as the preceding quarter.

  • Non-performing assets improved to 0.14% of total assets.

  • Tangible book value per share (non-GAAP) was $4.43.

  • Total risk-based capital ratio was 16.35% and Tier 1 leverage ratio was 11.22%.

  • Increased its quarterly cash dividend to $0.04 per share, generating a current dividend yield of 2.13% based on the January 18, 2019 share price.

Income Statement

Third quarter net interest income was $11.7 million, a modest increase compared to $11.6 million in the preceding quarter, and an $884,000 increase compared to $10.8 million in the third fiscal quarter a year ago. The increase in net interest income was due to higher rates on earning assets and an increase in outstanding loans. In the first nine months of fiscal 2019, net interest income increased 8.8% to $34.8 million, compared to $32.0 million in the first nine months of fiscal 2018.

“Our robust loan growth, coupled with our low cost of deposits, contributed to the net interest margin expansion during the quarter,” said David Lam, executive vice president and chief financial officer. “However, increased competition for loans and deposits and a flattening yield curve remains a challenge.”

Riverview’s third fiscal quarter net interest margin increased six basis points to 4.39% compared to 4.33% in the second fiscal quarter and increased 33 basis points when compared to 4.06% in the third fiscal quarter a year ago. In the preceding quarter, the collection of $98,000 of non-accrual interest from a prior charged-off loan added four basis points to the NIM. The accretion on purchased loans totaled $172,000 during the current quarter and $152,000 during the linked quarter resulting in a seven basis point increase in the NIM for both periods. In the first nine months of fiscal 2019, Riverview’s NIM increased 31 basis points to 4.37%, compared to the same period a year earlier.

The weighted average rate on loans originated during the quarter ended December 31, 2018, increased to 6.04% compared to 5.63% for the quarter ended September 30, 2018, and 4.75% for the quarter ended December 31, 2017.

Non-interest income was $2.8 million in the third fiscal quarter compared to $3.0 million in the preceding quarter and $2.9 million in the same quarter a year ago. Year to date, non-interest income was $8.9 million compared to $8.3 million in the same period in the prior year. During the preceding quarter, other non-interest income included a net gain of approximately $70,000 on the sale of deposit accounts associated with the closing of the Company’s Longview, WA branch. Additionally, prepayment fees decreased $122,000 to $54,000 for the third fiscal quarter compared to $176,000 in the preceding quarter.

Asset management fees were $935,000 in the third fiscal quarter of 2019 compared to $943,000 in the preceding quarter and $911,000 in the third fiscal quarter a year ago. Riverview Trust Company’s assets under management decreased to $570.4 million at December 31, 2018, compared to $614.0 million three months earlier but increased compared to $490.1 million one year earlier. The current quarter decrease was primarily due to the recent stock market volatility.

The efficiency ratio improved to 60.9% for the third fiscal quarter compared to 61.0% in the preceding quarter and 62.5% in the third fiscal quarter a year ago. Non-interest expense decreased to $8.8 million during the third fiscal quarter of 2019 compared to $8.9 million in the preceding quarter, primarily related to a $355,000 gain on sale of the building related to the Longview branch closing. Offsetting this decrease was an increase in salaries and employee benefits and professional fees as the Company continues to invest in employees and technology infrastructure. In the first nine months of fiscal 2019, non-interest expense was $26.7 million compared to $26.5 million in the same period a year earlier.

Riverview’s effective tax rate for the first nine months of fiscal year 2019 was 22.4% compared to 47.6% for the same prior year period. The decrease was a result of the passage of the Tax Cuts and Jobs Act in December 2017.

Balance Sheet Review

Riverview’s total loans increased $18.8 million during the quarter to $868.6 million at December 31, 2018, an annualized growth rate of 8.8%. The increase was primarily concentrated in commercial construction loans and single purpose commercial real estate facilities. Total loan balances also continue to be impacted by elevated pay downs on existing loans.

The loan pipeline totaled $33.6 million at December 31, 2018 compared to $91.9 million at the end of the prior quarter. Undisbursed construction loans totaled $79.0 million at December 31, 2018 compared to $82.0 million three months earlier. The majority of the undisbursed construction loans are expected to fund over the next several quarters.

“Loan demand remains robust in our market area, and our lending teams are doing an outstanding job of capitalizing on opportunities,” said Lycklama. “While we did experience a decrease in our loan pipeline, this was mostly expected due to seasonal conditions as well as the strong loan originations during the quarter.”

Total deposits decreased to $943.6 million at December 31, 2018 compared to $982.3 million three months earlier and $972.2 million a year ago. Money market, certificates of deposit and other interest-rate sensitive accounts continue to experience the greatest pressure due to an increase in competition and pricing pressures in our market area.

Shareholders’ equity improved to $128.1 million at December 31, 2018, compared to $122.4 million three months earlier and $116.8 million a year earlier. Tangible book value per share (non-GAAP) increased to $4.43 at December 31, 2018, compared to $4.17 at September 30, 2018 and $3.93 at December 31, 2017. A quarterly cash dividend of $0.04 per share was paid on January 22, 2019.

Credit Quality

As a result of improving asset quality and a low level of net charge-offs, Riverview recorded no provision for loan losses during the third fiscal quarter of 2019. This compares to a $250,000 recapture for loan losses in the preceding quarter and no provision for loan losses for the third fiscal quarter a year ago.

Non-performing loans improved to $1.6 million, or 0.19% of total loans, at December 31, 2018, compared to $2.3 million, or 0.27% of total loans, three months earlier and $2.7 million, or 0.33% of total loans at December 31, 2017. Riverview had no real estate owned balances at December 31, 2018 and September 30, 2018. Riverview had $298,000 in real estate owned balances as of December 31, 2017.

Net loan charge offs were $11,000 during the third fiscal quarter of 2019 compared to net loan charge offs of $86,000 during the second fiscal quarter of 2019 and net loan recoveries of $250,000 during the third fiscal quarter a year ago.

Classified assets totaled $6.0 million at December 31, 2018, compared to $6.2 million at September 30, 2018, and $6.9 million at December 31, 2017. The classified asset to total capital ratio was 4.4% at December 31, 2018, compared to 4.7% three months earlier and 5.7% a year earlier.

The allowance for loan losses totaled $11.5 million, which was unchanged compared to the preceding quarter end. The allowance for loan losses represented 1.32% of total loans at December 31, 2018, compared to 1.35% of total loans at September 30, 2018. 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 $1.7 million at December 31, 2018, compared to $1.9 million at the end of the prior quarter.

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 16.35% and a Tier 1 leverage ratio of 11.22% at December 31, 2018. In addition, at that date the Company’s tangible common equity to average tangible assets ratio (non-GAAP) was 8.91%.

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)

December 31, 2018

September 30, 2018

December 31, 2017

March 31, 2018

Shareholders' equity

$

128,094

$

122,410

$

116,803

$

116,901

Goodwill

27,076

27,076

27,076

27,076

Core deposit intangible, net

966

1,011

1,161

1,103

Tangible shareholders' equity

$

100,052

$

94,323

$

88,566

$

88,722

Total assets

$

1,151,225

$

1,148,447

$

1,128,342

$

1,151,535

Goodwill

27,076

27,076

27,076

27,076

Core deposit intangible, net

966

1,011

1,161

1,103

Tangible assets

$

1,123,183

$

1,120,360

$

1,100,105

$

1,123,356

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 $1.15 billion at December 31, 2018, it is the parent company of the 95-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 customers. There are 17 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 5 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 2019 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)

December 31, 2018

September 30, 2018

December 31, 2017

March 31, 2018

ASSETS

Cash (including interest-earning accounts of $4,641, $12,537 $3,739

$

23,394

$

27,080

$

23,105

$

44,767

and $30,052)

Certificate of deposits held for investment

747

3,984

6,963

5,967

Loans held for sale

-

-

351

210

Investment securities:

Available for sale, at estimated fair value

182,280

190,792

224,931

213,221

Held to maturity, at amortized cost

36

38

44

42

Loans receivable (net of allowance for loan losses of $11,502, $11,513

$10,867, and $10,766)

857,134

838,329

786,460

800,610

Real estate owned

-

-

298

298

Prepaid expenses and other assets

4,021

5,104

4,843

3,870

Accrued interest receivable

3,789

3,671

3,464

3,477

Federal Home Loan Bank stock, at cost

2,735

1,353

1,223

1,353

Premises and equipment, net

14,940

15,403

15,680

15,783

Deferred income taxes, net

4,680

5,352

3,988

4,813

Mortgage servicing rights, net

325

344

399

388

Goodwill

27,076

27,076

27,076

27,076

Core deposit intangible, net

966

1,011

1,161

1,103

Bank owned life insurance

29,102

28,910

28,356

28,557

TOTAL ASSETS

$

1,151,225

$

1,148,447

$

1,128,342

$

1,151,535

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:

Deposits

$

943,578

$

982,272

$

972,214

$

995,691

Accrued expenses and other liabilities

15,855

13,767

9,117

9,391

Advance payments by borrowers for taxes and insurance

192

1,050

260

637

Federal Home Loan Bank advances

34,543

-

1,050

-

Junior subordinated debentures

26,553

26,530

26,461

26,484

Capital lease obligations

2,410

2,418

2,437

2,431

Total liabilities

1,023,131

1,026,037

1,011,539

1,034,634

SHAREHOLDERS' EQUITY:

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

issued and outstanding, none

-

-

-

-

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

December 31, 2018 - 22,598,712 issued and outstanding;

September 30, 2018 - 22,598,712 issued and outstanding;

226

226

226

226

December 31, 2017 - 22,551,912 issued and outstanding;

March 31, 2018 – 22,570,179 issued and outstanding;

Additional paid-in capital

65,056

65,044

64,703

64,871

Retained earnings

67,126

63,642

53,878

56,552

Accumulated other comprehensive loss

(4,314

)

(6,502

)

(2,004

)

(4,748

)

Total shareholders’ equity

128,094

122,410

116,803

116,901

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

1,151,225

$

1,148,447

$

1,128,342

$

1,151,535


RIVERVIEW BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended

Nine Months Ended

(In thousands, except share data) (Unaudited)

Dec. 31, 2018

Sept. 30, 2018

Dec. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

INTEREST INCOME:

Interest and fees on loans receivable

$

11,129

$

10,943

$

9,978

$

32,849

$

29,761

Interest on investment securities - taxable

1,110

1,116

1,201

3,424

3,413

Interest on investment securities - nontaxable

37

36

31

110

59

Other interest and dividends

60

118

168

271

483

Total interest and dividend income

12,336

12,213

11,378

36,654

33,716

INTEREST EXPENSE:

Interest on deposits

240

259

298

759

933

Interest on borrowings

416

352

284

1,126

829

Total interest expense

656

611

582

1,885

1,762

Net interest income

11,680

11,602

10,796

34,769

31,954

Provision for loan losses

-

250

-

50

-

Net interest income after provision for loan losses

11,680

11,352

10,796

34,719

31,954

NON-INTEREST INCOME:

Fees and service charges

1,511

1,690

1,451

4,956

4,348

Asset management fees

935

943

911

2,804

2,582

Net gain on sale of loans held for sale

82

44

140

278

522

Bank owned life insurance

192

174

207

545

618

Other, net

62

165

181

267

271

Total non-interest income, net

2,782

3,016

2,890

8,850

8,341

NON-INTEREST EXPENSE:

Salaries and employee benefits

5,794

5,283

5,383

16,655

16,056

Occupancy and depreciation

1,306

1,351

1,347

4,016

4,105

Data processing

621

622

534

1,874

1,730

Amortization of core deposit intangible

45

46

58

137

174

Advertising and marketing

151

266

137

609

627

FDIC insurance premium

85

85

108

246

389

State and local taxes

125

182

96

475

427

Telecommunications

85

88

102

266

309

Professional fees

449

387

250

1,120

926

Other

142

605

543

1,339

1,748

Total non-interest expense

8,803

8,915

8,558

26,737

26,491

INCOME BEFORE INCOME TAXES

5,659

5,453

5,128

16,832

13,804

PROVISION FOR INCOME TAXES

1,271

1,224

3,608

3,773

6,571

NET INCOME

$

4,388

$

4,229

$

1,520

$

13,059

$

7,233

Earnings per common share:

Basic

$

0.19

$

0.19

$

0.07

$

0.58

$

0.32

Diluted

$

0.19

$

0.19

$

0.07

$

0.58

$

0.32

Weighted average number of common shares outstanding:

Basic

22,598,712

22,579,839

22,537,092

22,582,956

22,520,352

Diluted

22,663,919

22,658,737

22,622,129

22,658,153

22,608,603


(Dollars in thousands)

At or for the three months ended

At or for the nine months ended

Dec. 31, 2018

Sept. 30, 2018

Dec. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

AVERAGE BALANCES

Average interest–earning assets

$

1,057,199

$

1,064,386

$

1,055,600

$

1,056,750

$

1,045,283

Average interest-bearing liabilities

707,618

717,085

744,431

716,890

746,262

Net average earning assets

349,581

347,301

311,169

339,860

299,021

Average loans

854,368

839,497

785,264

835,697

784,926

Average deposits

967,246

986,948

988,558

975,295

980,766

Average equity

125,252

122,630

118,831

122,298

116,399

Average tangible equity (non-GAAP)

97,182

94,515

90,562

94,182

88,074

ASSET QUALITY

Dec. 31, 2018

Sept. 30, 2018

Dec. 31, 2017

Non-performing loans

$

1,612

$

2,283

$

2,656

Non-performing loans to total loans

0.19%

0.27%

0.33%

Real estate/repossessed assets owned

$

-

$

-

$

298

Non-performing assets

$

1,612

$

2,283

$

2,954

Non-performing assets to total assets

0.14%

0.20%

0.26%

Net loan charge-offs (recoveries) in the quarter

$

11

$

86

$

(250)

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

0.01%

0.04%

(0.13)%

Allowance for loan losses

$

11,502

$

11,513

$

10,867

Average interest-earning assets to average

interest-bearing liabilities

149.40%

148.43%

141.80%

Allowance for loan losses to

non-performing loans

713.52%

504.29%

409.15%

Allowance for loan losses to total loans

1.32%

1.35%

1.36%

Shareholders’ equity to assets

11.13%

10.66%

10.35%

CAPITAL RATIOS

Total capital (to risk weighted assets)

16.35%

15.82%

15.07%

Tier 1 capital (to risk weighted assets)

15.10%

14.54%

13.82%

Common equity tier 1 (to risk weighted assets)

15.10%

14.54%

13.82%

Tier 1 capital (to average tangible assets)

11.22%

10.72%

9.82%

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

8.91%

8.42%

8.05%

DEPOSIT MIX

Dec. 31, 2018

Sept. 30, 2018

Dec. 31, 2017

March 31, 2018

Interest checking

$

183,426

$

182,947

$

170,151

$

192,989

Regular savings

137,323

138,082

136,249

134,931

Money market deposit accounts

242,081

252,738

270,193

265,661

Non-interest checking

284,939

300,659

264,728

278,966

Certificates of deposit

95,809

107,846

130,893

123,144

Total deposits

$

943,578

$

982,272

$

972,214

$

995,691


COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS

Other

Commercial

Commercial

Real Estate

Real Estate

& Construction

Business

Mortgage

Construction

Total

December 31, 2018

(Dollars in thousands)

Commercial business

$

154,360

$

-

$

-

$

154,360

Commercial construction

-

-

58,197

58,197

Office buildings

-

119,850

-

119,850

Warehouse/industrial

-

90,167

-

90,167

Retail/shopping centers/strip malls

-

64,317

-

64,317

Assisted living facilities

-

2,790

-

2,790

Single purpose facilities

-

191,237

-

191,237

Land

-

18,506

-

18,506

Multi-family

-

54,930

-

54,930

One-to-four family construction

-

-

18,321

18,321

Total

$

154,360

$

541,797

$

76,518

$

772,675

March 31, 2018

Commercial business

$

137,672

$

-

$

-

$

137,672

Commercial construction

-

-

23,158

23,158

Office buildings

-

124,000

-

124,000

Warehouse/industrial

-

89,442

-

89,442

Retail/shopping centers/strip malls

-

68,932

-

68,932

Assisted living facilities

-

2,934

-

2,934

Single purpose facilities

-

165,289

-

165,289

Land

-

15,337

-

15,337

Multi-family

-

63,080

-

63,080

One-to-four family construction

-

-

16,426

16,426

Total

$

137,672

$

529,014

$

39,584

$

706,270

LOAN MIX

Dec. 31, 2018

Sept. 30, 2018

Dec. 31, 2017

March 31, 2018

(Dollars in thousands)

Commercial and construction

Commercial business

$

154,360

$

155,487

$

130,960

$

137,672

Other real estate mortgage

541,797

533,258

516,223

529,014

Real estate construction

76,518

62,795

40,743

39,584

Total commercial and construction

772,675

751,540

687,926

706,270

Consumer

Real estate one-to-four family

86,240

86,950

91,752

90,109

Other installment

9,721

11,352

17,649

14,997

Total consumer

95,961

98,302

109,401

105,106

Total loans

868,636

849,842

797,327

811,376

Less:

Allowance for loan losses

11,502

11,513

10,867

10,766

Loans receivable, net

$

857,134

$

838,329

$

786,460

$

800,610


DETAIL OF NON-PERFORMING ASSETS

Other

Southwest

Oregon

Washington

Other

Total

December 31, 2018

(dollars in thousands)

Commercial business

$

-

$

163

$

105

$

268

Commercial real estate

924

188

-

1,112

Consumer

-

173

59

232

Total non-performing loans

$

924

$

524

$

164

$

1,612

DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS

Northwest

Other

Southwest

Oregon

Oregon

Washington

Total

December 31, 2018

(dollars in thousands)

Land development

$

2,187

$

1,927

$

14,392

$

18,506

Speculative construction

1,098

81

14,226

15,405

Total land development and speculative construction

$

3,285

$

2,008

$

28,618

$

33,911


At or for the three months ended

At or for the nine months ended

SELECTED OPERATING DATA

Dec. 31, 2018

Sept. 30, 2018

Dec. 31, 2017

Dec. 31, 2018

Dec. 31, 2017

Efficiency ratio (4)

60.87

%

60.99

%

62.53

%

61.30

%

65.74

%

Coverage ratio (6)

132.68

%

130.14

%

126.15

%

130.04

%

120.62

%

Return on average assets (1)

1.53

%

1.46

%

0.53

%

1.52

%

0.85

%

Return on average equity (1)

13.90

%

13.68

%

5.07

%

14.17

%

8.25

%

NET INTEREST SPREAD

Yield on loans

5.17

%

5.17

%

5.04

%

5.22

%

5.03

%

Yield on investment securities

2.38

%

2.27

%

2.24

%

2.32

%

2.20

%

Total yield on interest-earning assets

4.63

%

4.56

%

4.28

%

4.61

%

4.29

%

Cost of interest-bearing deposits

0.14

%

0.15

%

0.17

%

0.15

%

0.17

%

Cost of FHLB advances and other borrowings

4.35

%

4.82

%

3.89

%

4.49

%

3.80

%

Total cost of interest-bearing liabilities

0.37

%

0.34

%

0.31

%

0.35

%

0.31

%

Spread (7)

4.26

%

4.22

%

3.97

%

4.26

%

3.98

%

Net interest margin

4.39

%

4.33

%

4.06

%

4.37

%

4.06

%

PER SHARE DATA

Basic earnings per share (2)

$

0.19

$

0.19

$

0.07

$

0.58

$

0.32

Diluted earnings per share (3)

0.19

0.19

0.07

0.58

0.32

Book value per share (5)

5.67

5.42

5.18

5.67

5.18

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

4.43

4.17

3.93

4.43

3.93

Market price per share:

High for the period

$

8.75

$

9.91

$

9.45

$

9.91

$

9.45

Low for the period

7.03

8.47

8.44

7.03

6.51

Close for period end

7.28

8.84

8.67

7.28

8.67

Cash dividends declared per share

0.0400

0.0350

0.0300

0.1100

0.0750

Average number of shares outstanding:

Basic (2)

22,598,712

22,579,839

22,537,092

22,582,956

22,520,352

Diluted (3)

22,663,919

22,658,737

22,622,129

22,658,153

22,608,603

(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