U.S. Markets open in 6 hrs 11 mins

Riverview Bancorp Reports Record Earnings of $4.5 Million in Second Quarter of Fiscal Year 2020; Results Driven by Solid Deposit Growth, Increased Revenue Generation and Improved Operating Efficiencies

VANCOUVER, Wash., Oct. 24, 2019 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported earnings for the second fiscal quarter ended September 30, 2019 increased to $4.5 million, or $0.20 per diluted share, compared to $4.2 million, or $0.18 per diluted share, in the preceding quarter, and $4.2 million, or $0.19 per diluted share, in the second fiscal quarter a year ago.

“Riverview’s second quarter financial results continue to demonstrate the strength of our franchise, generating record earnings for both the second quarter and for the first six months of fiscal year 2020,” said Kevin Lycklama, president and chief executive officer. “I am extremely proud of the outstanding job by our entire team. Growing our deposits by more than $60 million and producing record quarterly earnings is a truly remarkable accomplishment.”

Second Quarter Highlights (at or for the period ended September 30, 2019)

  • Record quarterly net income of $4.5 million, or $0.20 per diluted share.
  • Net interest margin (NIM) increased to 4.36% for the quarter.
  • Return on average assets improved to 1.55% for the second quarter.
  • Total deposits increased $60.0 million during the quarter to $982.3 million.
  • FHLB Advances paid down to zero during the quarter.
  • Total loans were $881.3 million at September 30, 2019.
  • Asset quality remains strong, with non-performing assets at 0.13% of total assets.
  • Total risk-based capital ratio was 17.27% and Tier 1 leverage ratio was 11.79%.
  • Paid a quarterly cash dividend of $0.045 per share, generating a current dividend yield of 2.49% based on the share price at close of market on October 15, 2019.

Income Statement

Return on average assets improved to 1.55% in the second quarter of fiscal year 2020 compared to 1.46% in the second quarter of fiscal 2019. Return on average equity and average tangible equity (non-GAAP) remained healthy at 12.68% and 15.79%, respectively, compared to 13.68% and 17.75% for the second fiscal quarter a year ago.

“Riverview’s operating performance during the quarter was outstanding, generating strong core earnings, while maintaining excellent asset quality,” stated Lycklama. “We continue to monitor and manage our overhead expenses, as we grow our franchise.”

Total net revenues increased during the quarter to $14.9 million compared to $14.6 million in both the prior quarter and the year ago quarter.  Year-to-date, total net revenues increased to $29.5 million from $29.2 million in the same period a year ago. The increase was primarily driven by an increase in average loans and non-interest income.

Net interest income for the quarter was $11.7 million compared to $11.5 million in the preceding quarter and $11.8 million in the second fiscal quarter a year ago. In the first six months of fiscal 2020, net interest income was $23.2 million, compared to $23.4 million in the first six months of fiscal 2019. The decrease in net interest income for the six months ended September 30, 2019 was primarily attributable to an increase in funding costs compared to the same prior year period in addition to $585,000 of non-accrual interest from a prior charged off loan that was collected during the six months ended September 30, 2018.

Riverview’s second fiscal quarter NIM was 4.36% compared to 4.33% in the prior quarter and 4.39% in the second fiscal quarter a year ago. The accretion on purchased loans totaled $78,000 during the current quarter compared to $108,000 during the preceding quarter and $152,000 in the same period a year ago, resulting in a two basis point increase in the NIM for the current period compared to a four basis point increase for the preceding quarter and a seven basis point increase for the same period a year ago. Net fees on loan prepayments were $112,000 for the second fiscal quarter of 2020 which added four basis points to the NIM compared to $31,000 adding one basis point to the NIM in the preceding quarter and $172,000 adding six basis points to the NIM in the second fiscal quarter a year ago. In the first six months of fiscal 2020, Riverview’s NIM was 4.35% compared to 4.43% in the same period a year earlier. Net fees on loan prepayments were $144,000 for the six month ended September 30, 2019 which added three basis points to the NIM compared to $282,000 adding five basis points to the NIM in the same six month period a year ago.

“Our net interest margin remains strong, however, funding costs increased during the quarter due to deposit pricing pressures as we increased rates on certain deposit products,” said David Lam, executive vice president and chief financial officer. “We anticipate the increased competition in our market areas will continue to place pressure on both loan and deposit pricing.”

The weighted average rate on loans originated during the quarter ended September 30, 2019, was 5.21% compared to 5.73% for the quarter ended June 30, 2019, and 5.63% for the quarter ended September 30, 2018. The decrease in the weighted average rate on loans was attributed to the recent fed rate decreases along with pricing competition in our market area.

Non-interest income increased to $3.2 million in the second fiscal quarter compared to $3.1 million in the preceding quarter and $2.8 million in the second fiscal quarter a year ago. The improvement in non-interest income was primarily driven by an increase in fees and service charges.  In the first six months of fiscal 2020, non-interest income increased 10.4% to $6.3 million compared to $5.7 million in the same period a year ago.

Asset management fees increased 15.6% compared to the same quarter a year ago. Asset management fees were $1.1 million during the second fiscal quarter compared to $943,000 in the second fiscal quarter a year ago. In the first six months of fiscal 2020, asset management fees increased 19.5% to $2.2 million compared to $1.9 million in the first six months of fiscal 2019. Riverview Trust Company’s assets under management decreased slightly to $690.5 million at September 30, 2019 compared to $694.8 million three months earlier and increased $76.5 million, or 12.5%, compared to $614.0 million one year earlier.

Non-interest expense decreased to $9.0 million during the second fiscal quarter of 2020 compared to $9.2 million in the preceding quarter. The decrease during the current quarter was, in part, related to an $81,000 gain on the disposal of equipment in addition to the utilization of the Federal Deposit Insurance Corporation (FDIC) credits of $76,000 to offset current quarter FDIC insurance assessments as a result of the FDIC deposit insurance fund exceeding the statutorily required minimum reserve ratio of 1.35% and assessment credits being issued when the reserve ratio is at or above 1.38%. Year-to-date, non-interest expense was $18.2 million compared to $17.9 million in the first six months of fiscal 2019. The increase in non-interest expense is attributable to strategic growth initiatives and improved digital product offerings which increased our technology related expenses as well as the addition of several experienced bankers.

The efficiency ratio improved to 60.47% for the second fiscal quarter compared to 62.95% in the preceding quarter and 60.99% in the second fiscal quarter a year ago.

For the second fiscal quarter of 2020, income tax expense totaled $1.4 million, for an effective tax rate of 23.0%, compared to 22.5% in the first fiscal quarter of 2020 and 22.4% in the second fiscal quarter of 2019.

Balance Sheet Review

Total deposits increased $60.0 million during the quarter to $982.3 million compared to $922.3 million three months earlier. Deposit costs increased from 0.15% in the previous quarter to 0.28%, reflecting the continued deposit pricing pressures in our local markets.

“We made significant progress in growing our deposits during the quarter,” said Lycklama. “With the increase in deposits, we were able to repay our outstanding FHLB borrowings and reduce our loan to deposit ratio to 89.7% compared to 96.3% in the previous quarter.” 

Federal Home Loan Bank (FHLB) advances were paid down to zero during the second fiscal quarter of 2020 compared to $56.9 million in outstanding FHLB advances at June 30, 2019.

Riverview’s total loans decreased modestly during the quarter to $881.3 million compared to $888.0 million three months earlier and increased $31.5 million, or 3.7%, when compared to $849.8 million a year ago. Total loans continue to be impacted by an increase in paydowns on existing loans, however, the loan pipeline remained healthy at $43.8 million at September 30, 2019 compared to $47.7 million at the end of the prior quarter. Undisbursed construction loans totaled $53.3 million at September 30, 2019, compared to $69.0 million three months earlier, with the majority of the undisbursed construction loans expected to fund over the next several quarters.

Shareholders’ equity increased to $143.1 million at September 30, 2019 compared to $138.7 million three months earlier and $122.4 million a year earlier. Tangible book value per share (non-GAAP) increased to $5.06 at September 30, 2019 compared to $4.88 at June 30, 2019, and $4.17 at September 30, 2018. Riverview will pay a quarterly cash dividend of $0.045 per share on October 25, 2019, to shareholders of record on October 14, 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 second fiscal quarter of 2020 or in the linked quarter. In the second fiscal quarter a year ago, Riverview recorded a provision for loan losses of $250,000.  

Non-performing loans totaled $1.5 million, or 0.17% of total loans, at September 30, 2019 compared to $1.5 million, or 0.16% of total loans, at June 30, 2019 and $2.3 million, or 0.27% of total loans, at September 30, 2018. Riverview has had no real estate owned balances for the last 4 quarters.

Net loan charge offs were $6,000 during the second fiscal quarter of 2020 compared to $15,000 in the preceding quarter and $86,000 in the second fiscal quarter a year ago.

Classified assets decreased to $4.3 million at September 30, 2019 compared to $6.0 million at June 30, 2019 and $6.2 million at September 30, 2018. The classified asset to total capital ratio was 3.0% at September 30, 2019 compared to 4.1% three months earlier and 4.7% a year earlier.

At September 30, 2019, the allowance for loan losses totaled $11.4 million, which was unchanged compared to three months earlier. The allowance for loan losses represented 1.30% of total loans at September 30, 2019 compared to 1.29% 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 $1.3 million at September 30, 2019 compared to $1.4 million at the end of the prior quarter and $1.9 million at September 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 17.27% and a Tier 1 leverage ratio of 11.79% at September 30, 2019. The Company’s tangible common equity to average tangible assets ratio (non-GAAP) increased to 10.06% at September 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)   September 30, 2019   June 30, 2019   September 30, 2018   March 31, 2019
                 
Shareholders' equity   $ 143,119   $ 138,663   $ 122,410   $ 133,122
Goodwill     27,076     27,076     27,076     27,076
Core deposit intangible, net     839     880     1,011     920
Tangible shareholders' equity   $ 115,204   $ 110,707   $ 94,323   $ 105,126
                 
Total assets   $ 1,173,019   $ 1,165,234   $ 1,148,447   $ 1,156,921
Goodwill     27,076     27,076     27,076     27,076
Core deposit intangible, net     839     880     1,011     920
Tangible assets   $ 1,145,104   $ 1,137,278   $ 1,120,360   $ 1,128,925
                 

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 September 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) September 30, 2019   June 30, 2019   September 30, 2018   March 31, 2019
ASSETS              
               
Cash (including interest-earning accounts of $32,632, $6,852, $ 48,888   $ 24,112     $ 27,080     $ 22,950  
$12,537 and $5,844)              
Certificate of deposits held for investment   249     747       3,984       747  
Loans held for sale   310     -       -       909  
Investment securities:              
Available for sale, at estimated fair value   163,682     170,762       190,792       178,226  
Held to maturity, at amortized cost   31     33       38       35  
Loans receivable (net of allowance for loan losses of $11,436,              
$11,442, $11,513, and $11,457)   869,880     876,535       838,329       864,659  
Prepaid expenses and other assets   8,136     8,705       5,104       4,596  
Accrued interest receivable   3,827     3,989       3,671       3,919  
Federal Home Loan Bank stock, at cost   1,380     3,658       1,353       3,644  
Premises and equipment, net   15,490     15,453       15,403       15,458  
Deferred income taxes, net   3,296     3,520       5,352       4,195  
Mortgage servicing rights, net   247     280       344       296  
Goodwill   27,076     27,076       27,076       27,076  
Core deposit intangible, net   839     880       1,011       920  
Bank owned life insurance   29,688     29,484       28,910       29,291  
               
TOTAL ASSETS $ 1,173,019   $ 1,165,234     $ 1,148,447     $ 1,156,921  
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
LIABILITIES:              
Deposits $ 982,275   $ 922,274     $ 982,272     $ 925,068  
Accrued expenses and other liabilities   17,502     17,675       13,767       12,536  
Advance payments by borrowers for taxes and insurance   1,117     689       1,050       631  
Federal Home Loan Bank advances   -     56,941       -       56,586  
Junior subordinated debentures   26,619     26,597       26,530       26,575  
Capital lease obligations   2,387     2,395       2,418       2,403  
Total liabilities   1,029,900     1,026,571       1,026,037       1,023,799  
               
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, 2019 - 22,748,385 issued and outstanding;              
June 30, 2019 – 22,705,385 issued and outstanding;   227     226       226       226  
September 30, 2018 - 22,598,712 issued and outstanding;              
March 31, 2019 – 22,607,712 issued and outstanding;              
Additional paid-in capital   65,559     65,326       65,044       65,094  
Retained earnings   77,112     73,602       63,642       70,428  
Accumulated other comprehensive income (loss)   221     (491 )     (6,502 )     (2,626 )
Total shareholders’ equity   143,119     138,663       122,410       133,122  
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,173,019   $ 1,165,234     $ 1,148,447     $ 1,156,921  
               

 

RIVERVIEW BANCORP, INC. AND SUBSIDIARY            
Consolidated Statements of Income            
  Three Months Ended   Six Months Ended
(In thousands, except share data)  (Unaudited) Sept. 30, 2019 June 30, 2019 Sept. 30, 2018   Sept. 30, 2019 Sept. 30, 2018
INTEREST INCOME:            
Interest and fees on loans receivable $ 11,893 $ 11,554 $ 11,119   $ 23,447 $ 22,079
Interest on investment securities - taxable   860   878   1,116     1,738   2,314
Interest on investment securities - nontaxable   36   37   36     73   73
Other interest and dividends   93   87   118     180   211
Total interest and dividend income   12,882   12,556   12,389     25,438   24,677
             
INTEREST EXPENSE:            
Interest on deposits   660   351   259     1,011   519
Interest on borrowings   503   735   352     1,238   710
Total interest expense   1,163   1,086   611     2,249   1,229
Net interest income   11,719   11,470   11,778     23,189   23,448
Provision for loan losses   -   -   250     -   50
             
Net interest income after provision for loan losses   11,719   11,470   11,528     23,189   23,398
             
NON-INTEREST INCOME:            
Fees and service charges   1,752   1,637   1,514     3,389   3,086
Asset management fees   1,090   1,143   943     2,233   1,869
Net gain on sale of loans held for sale   46   96   44     142   196
Bank owned life insurance   204   193   174     397   353
Other, net   77   67   165     144   205
Total non-interest income, net   3,169   3,136   2,840     6,305   5,709
             
NON-INTEREST EXPENSE:            
Salaries and employee benefits   5,697   5,715   5,283     11,412   10,861
Occupancy and depreciation   1,277   1,320   1,351     2,597   2,710
Data processing   669   680   622     1,349   1,253
Amortization of core deposit intangible   41   40   46     81   92
Advertising and marketing   298   210   266     508   458
FDIC insurance premium   -   80   85     80   161
State and local taxes   174   195   182     369   350
Telecommunications   76   86   88     162   181
Professional fees   263   325   387     588   671
Other   508   543   605     1,051   1,197
Total non-interest expense   9,003   9,194   8,915     18,197   17,934
             
INCOME BEFORE INCOME TAXES   5,885   5,412   5,453     11,297   11,173
PROVISION FOR INCOME TAXES   1,351   1,220   1,224     2,571   2,502
NET INCOME $ 4,534 $ 4,192 $ 4,229   $ 8,726 $ 8,671
             
Earnings per common share:            
Basic $ 0.20 $ 0.19 $ 0.19   $ 0.39 $ 0.38
Diluted $ 0.20 $ 0.18 $ 0.19   $ 0.38 $ 0.38
Weighted average number of common shares outstanding:            
Basic   22,643,103   22,619,580   22,579,839     22,631,406   22,575,009
Diluted   22,702,696   22,685,343   22,658,737     22,694,067   22,655,297
             


 

                     
(Dollars in thousands)   At or for the three months ended   At or for the six months ended
    Sept. 30, 2019   June 30, 2019   Sept. 30, 2018   Sept. 30, 2019   Sept. 30, 2018
AVERAGE BALANCES                    
Average interest–earning assets   $ 1,069,209     $ 1,066,247     $ 1,064,386     $ 1,067,737   $ 1,056,522
Average interest-bearing liabilities     708,846       728,976       717,085       718,856     721,550
Net average earning assets     360,363       337,271       347,301       348,881     334,972
Average loans     889,208       877,427       839,497       883,350     826,309
Average deposits     952,283       920,558       986,948       936,507     979,341
Average equity     142,195       136,592       122,630       139,409     120,813
Average tangible equity (non-GAAP)     114,256       108,614       94,515       111,450     92,675
                     
                     
ASSET QUALITY   Sept. 30, 2019   June 30, 2019   Sept. 30, 2018        
Non-performing loans   $ 1,485     $ 1,457     $ 2,283          
Non-performing loans to total loans     0.17%       0.16%       0.27%          
Real estate/repossessed assets owned   $ -     $ -     $ -          
Non-performing assets   $ 1,485     $ 1,457     $ 2,283          
Non-performing assets to total assets     0.13%       0.13%       0.20%          
Net loan charge-offs in the quarter   $ 6     $ 15     $ 86          
Net charge-offs in the quarter/average net loans     0.00%       0.01%       0.04%          
                     
Allowance for loan losses   $ 11,436     $ 11,442     $ 11,513          
Average interest-earning assets to average                    
interest-bearing liabilities     150.84%       146.27%       148.43%          
Allowance for loan losses to                    
non-performing loans     770.10%       785.31%       504.29%          
Allowance for loan losses to total loans     1.30%       1.29%       1.35%          
Shareholders’ equity to assets     12.20%       11.90%       10.66%          
                     
                     
CAPITAL RATIOS                    
Total capital (to risk weighted assets)     17.27%       17.18%       15.82%          
Tier 1 capital (to risk weighted assets)     16.02%       15.93%       14.57%          
Common equity tier 1 (to risk weighted assets)     16.02%       15.93%       14.57%          
Tier 1 capital (to average tangible assets)     11.79%       11.94%       10.72%          
Tangible common equity (to average tangible assets) (non-GAAP)     10.06%       9.73%       8.42%          
                     
                     
DEPOSIT MIX   Sept. 30, 2019   June 30, 2019   Sept. 30, 2018   March 31, 2019    
                     
Interest checking   $ 178,854     $ 184,658     $ 182,947     $ 183,388    
Regular savings     196,340       160,937       138,082       137,503    
Money market deposit accounts     186,842       205,881       252,738       233,317    
Non-interest checking     299,062       280,336       300,659       284,854    
Certificates of deposit     121,177       90,462       107,846       86,006    
Total deposits   $ 982,275     $ 922,274     $ 982,272     $ 925,068    
                     


COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS        
                 
        Other       Commercial
    Commercial   Real Estate   Real Estate   & Construction
    Business   Mortgage   Construction   Total
     
September 30, 2019   (Dollars in thousands)
Commercial business   $ 167,782   $ -   $ -   $ 167,782
Commercial construction     -     -     67,437     67,437
Office buildings     -     113,713     -     113,713
Warehouse/industrial     -     102,285     -     102,285
Retail/shopping centers/strip malls     -     65,381     -     65,381
Assisted living facilities     -     1,117     -     1,117
Single purpose facilities     -     189,075     -     189,075
Land     -     14,166     -     14,166
Multi-family     -     55,978     -     55,978
One-to-four family construction     -     -     15,737     15,737
Total   $ 167,782   $ 541,715   $ 83,174   $ 792,671
                 
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   Sept. 30, 2019   June 30, 2019   Sept. 30, 2018   March 31, 2019
Commercial and construction                
Commercial business   $ 167,782   $ 164,400   $ 155,487   $ 162,796
Other real estate mortgage     541,715     539,409     533,258     530,029
Real estate construction     83,174     93,716     62,795     90,882
Total commercial and construction     792,671     797,525     751,540     783,707
Consumer                
Real estate one-to-four family     82,578     83,256     86,950     84,053
Other installment     6,067     7,196     11,352     8,356
Total consumer     88,645     90,452     98,302     92,409
                 
Total loans     881,316     887,977     849,842     876,116
                 
Less:                
Allowance for loan losses     11,436     11,442     11,513     11,457
Loans receivable, net   $ 869,880   $ 876,535   $ 838,329   $ 864,659
                 


DETAIL OF NON-PERFORMING ASSETS
                     
        Other   Southwest        
        Oregon   Washington   Other   Total
September 30, 2019                
                     
Commercial business   $ -   $ 243   $ -   $ 243
Commercial real estate     851     175     -     1,026
Consumer     -     184     32     216
                     
Total non-performing assets   $ 851   $ 602   $ 32   $ 1,485
                     
                     
                     
                     
                     
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS
                     
        Northwest   Other   Southwest    
        Oregon   Oregon   Washington   Total
     
September 30, 2019   (dollars in thousands)
                     
Land development   $ 2,178   $ 1,871   $ 10,117   $ 14,166
Speculative construction     1,158     160     12,782     14,100
                     
Total land development and speculative construction   $ 3,336   $ 2,031   $ 22,899   $ 28,266
                     
                     


    At or for the three months ended   At or for the six months ended
SELECTED OPERATING DATA Sept. 30, 2019   June 30, 2019   Sept. 30, 2018   Sept. 30, 2019   Sept. 30, 2018
                   
Efficiency ratio (4)   60.47 %     62.95 %     60.99 %     61.70 %     61.51 %
Coverage ratio (6)   130.17 %     124.76 %     132.11 %     127.43 %     130.75 %
Return on average assets (1)   1.55 %     1.46 %     1.46 %     1.51 %     1.52 %
Return on average equity (1)   12.68 %     12.34 %     13.68 %     12.52 %     14.32 %
Return on average tangible equity (1) (non-GAAP)   15.79 %     15.52 %     17.75 %     15.66 %     18.66 %
                   
NET INTEREST SPREAD                  
Yield on loans   5.32 %     5.30 %     5.25 %     5.31 %     5.33 %
Yield on investment securities   2.15 %     2.10 %     2.27 %     2.12 %     2.29 %
Total yield on interest-earning assets   4.80 %     4.74 %     4.62 %     4.77 %     4.66 %
                   
Cost of interest-bearing deposits   0.40 %     0.22 %     0.15 %     0.31 %     0.15 %
Cost of FHLB advances and other borrowings   3.72 %     3.42 %     4.82 %     3.53 %     4.58 %
Total cost of interest-bearing liabilities   0.65 %     0.60 %     0.34 %     0.63 %     0.34 %
                   
Spread (7)   4.15 %     4.14 %     4.28 %     4.14 %     4.32 %
Net interest margin   4.36 %     4.33 %     4.39 %     4.35 %     4.43 %
                   
PER SHARE DATA                  
Basic earnings per share (2) $ 0.20     $ 0.19     $ 0.19     $ 0.39     $ 0.38  
Diluted earnings per share (3)   0.20       0.18       0.19       0.38       0.38  
Book value per share (5)   6.29       6.11       5.42       6.29       5.42  
Tangible book value per share (5) (non-GAAP)   5.06       4.88       4.17       5.06       4.17  
Market price per share:                  
High for the period $ 8.55     $ 8.54     $ 9.91     $ 8.55     $ 9.91  
Low for the period   6.87       7.07       8.47       6.87       8.39  
Close for period end   7.38       8.54       8.84       7.38       8.84  
Cash dividends declared per share   0.0450       0.0450       0.0350       0.0900       0.0700  
                   
Average number of shares outstanding:                  
Basic (2)   22,643,103       22,619,580       22,579,839       22,631,406       22,575,009  
Diluted (3)   22,702,696       22,685,343       22,658,737       22,694,067       22,655,297  
                   

(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