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Riverview Bancorp Reports Record Earnings of $17.3 Million for Fiscal Year 2019; Highlighted by Strong Loan Growth and Improved Efficiency

VANCOUVER, Wash., April 30, 2019 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today announced earnings for the fourth quarter and full year ended March 31, 2019. For the fourth quarter, the Company reported net income of $4.2 million, or $0.19 per diluted share.  This is compared to net income of $4.4 million, or $0.19 per diluted share, in the preceding quarter and $3.0 million, or $0.13 per diluted share, in the fourth fiscal quarter a year ago. For the full fiscal year, Riverview reported net income of $17.3 million, or $0.76 per diluted share, a 69% increase over the prior year.

“The fourth quarter was a healthy finish to a successful year for Riverview”, said Kevin Lycklama, president and chief executive officer. “Our team finished the year strong achieving record earnings driven by high-quality loan growth, solid revenue generation, expense management and a focus on continuous improvement. As we head into the next fiscal year, we have positive momentum, a strong team of seasoned bankers and are well-positioned to generate solid operating results.”   

Fourth Quarter Highlights (at or for the period ended March 31, 2019)

  • Net income of $4.2 million, or $0.19 per diluted share.
  • Net interest margin (NIM) was 4.39% for the quarter.
  • Return on average assets of 1.49% for the fourth quarter.
  • Return on average equity of 12.98% for the fourth quarter.
  • Total loans were $876.1 million at March 31, 2019, an 8.0% increase compared to $811.4 million a year ago.
  • Cost of deposits remained low at 0.10% for the quarter, the same as the preceding quarter.
  • Non-performing assets improved to 0.13% of total assets.
  • Total risk-based capital ratio was 16.88% and Tier 1 leverage ratio was 11.56%.
  • Paid a quarterly cash dividend of $0.04 per share, generating a current dividend yield of 2.17% based on the April 29, 2019 share price.

Income Statement

In the fourth fiscal quarter of 2019, the return on average assets increased to 1.49% compared to 1.08% in the fourth fiscal quarter of 2018. The return on average equity and average tangible equity (non-GAAP) increased to 12.98% and 16.50%, respectively, compared to 10.39% and 13.67% for the fourth fiscal quarter a year ago.

Total revenue increased $80,000 during the quarter to $14.5 million and increased $1.2 million compared to the same quarter a year ago. The increase in total revenue was driven by an increase in both interest income and noninterest income. 

Net interest income for the quarter was $11.5 million compared to $11.7 million in the preceding quarter and $10.7 million in the fourth fiscal quarter a year ago. The decline in net interest income compared to the preceding quarter was attributable to higher funding costs as well as two fewer days in the quarter. In fiscal 2019, net interest income increased $3.7 million, or 8.7%, to $46.3 million compared to $42.6 million in fiscal 2018.

“Our net interest margin increased from a year ago and remained stable compared to the immediate prior quarter, reflecting the overall increase in interest-earning assets in addition to higher yields on these assets,” 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 fourth fiscal quarter net interest margin was 4.39%, which was unchanged from the third fiscal quarter, and a 25-basis point increase when compared to 4.14% in the fourth fiscal quarter a year ago. The accretion on purchased loans totaled $198,000 during the current quarter compared to $172,000 during the preceding quarter resulting in a seven-basis point increase in the NIM for both the current period and the preceding linked quarter. In fiscal year 2019, Riverview’s NIM increased 30 basis points to 4.38% compared to 4.08% in fiscal 2018.

The weighted average rate on loans originated during the quarter ended March 31, 2019 was 5.81% compared to 6.04% for the quarter ended December 31, 2018 and 5.17% for the quarter ended March 31, 2018.

Non-interest income increased to $3.0 million in the fourth fiscal quarter compared to $2.8 million in the preceding quarter and $2.7 million in the same quarter a year ago. For fiscal year 2019, non-interest income increased 7.8% to $11.9 million compared to $11.0 million for fiscal 2018. The increase in non-interest income was primarily driven by an increase in fees and service charges and asset management fees. Loan prepayment fees increased $285,000 during the fourth fiscal quarter compared to the preceding quarter and increased $397,000 year over year. Other gains for the year included growth in debit card interchange revenue and an expansion in our merchant bankcard program. These increases were offset by a decrease in the net gain on sales from loans held for sale due to a decrease in mortgage banking activity.

Asset management fees increased to $987,000 in the fourth fiscal quarter of 2019 compared to $935,000 in the preceding quarter and $866,000 in the fourth fiscal quarter a year ago. For fiscal year 2019, asset management fees increased $343,000 to $3.8 million. Riverview Trust Company’s assets under management grew to $646.0 million at March 31, 2019 compared to $570.4 million three months earlier and $484.3 million one year earlier.

Non-interest expense was $9.0 million during the fourth fiscal quarter of 2019 compared to $8.8 million in the preceding quarter. The increase was primarily related to a $355,000 gain on sale of building related to the Longview branch closing in September 2018, which was recorded in other non-interest expense during the preceding quarter. The efficiency ratio was 61.63% for the fourth fiscal quarter compared to 60.87% in the preceding quarter and 68.52% in the fourth fiscal quarter a year ago. For all of fiscal 2019, non-interest expense was $35.7 million compared to $35.6 million in fiscal 2018. While the Company continues to focus on controlling its expenses; however, we are moving forward with enhancements to our infrastructure for information technology, cybersecurity and our digital delivery channels.

Riverview’s effective tax rate for fiscal year 2019 was 23.0% compared to 43.1% for fiscal year 2018. The decrease was a result of the passage of the Tax Cuts and Jobs Act in December 2017 and the related deferred tax asset valuation adjustment during fiscal year 2018.

Balance Sheet Review

Riverview’s total loans increased $7.5 million during the quarter, a 3.5% annualized increase, to $876.1 million and increased $64.7 million, or 8.0%, when compared to $811.4 million a year ago. The growth during the quarter was mostly concentrated in commercial loans and commercial construction loans with an offsetting decrease in multi-family and single purpose commercial real estate loans. The decrease in single purpose loans was primarily concentrated in hotel loans and auto repair/gas station loans. While loan demand has remained solid, loan balances have continued to be impacted by pay downs on existing loans.

The loan pipeline totaled $38.2 million at March 31, 2019 compared to $33.6 million at the end of the prior quarter. Undisbursed construction loans totaled $63.0 million at March 31, 2019 compared to $79.0 million three months earlier. The majority of the undisbursed construction loans are expected to fund over the next several quarters.

Total deposits were $925.1 million at March 31, 2019 compared to $943.6 million three months earlier and $995.7 million a year ago. Money market and certificates of deposit accounts continue to bear the greatest pressure, due to an increase in competition and pricing pressures in our market area.

Shareholders’ equity improved to $133.1 million at March 31, 2019 compared to $128.1 million three months earlier and $116.9 million a year earlier. Tangible book value per share (non-GAAP) increased to $4.65 at March 31, 2019 compared to $4.43 at December 31, 2018 and $3.93 at March 31, 2018. A quarterly cash dividend of $0.04 per share was paid on April 23, 2019.

Credit Quality

Asset quality continues to improve and remained strong throughout the quarter. As a result of this improvement in asset quality, along with the steady low level of net charge-offs, Riverview recorded no provision for loan losses during the fourth fiscal quarter of 2019, the preceding linked quarter or the fourth fiscal quarter of 2018. For fiscal year 2019, Riverview recorded a $50,000 provision for loan losses.

Non-performing loans improved to $1.5 million, or 0.17% of total loans, at March 31, 2019 compared to $1.6 million, or 0.19% of total loans, three months earlier and $2.4 million, or 0.30% of total loans, at March 31, 2018. Riverview had no real estate owned balances at March 31, 2019 and December 31, 2018 compared to $298,000 at March 31, 2018.

Net loan charge offs were $45,000 during the fourth fiscal quarter of 2019 compared to net loan charge offs of $11,000 during the third fiscal quarter of 2019 and $101,000 during the fourth fiscal quarter a year ago.  For fiscal 2019, Riverview recorded loan recoveries of $641,000 which was primarily driven by $783,000 in net recoveries during the first quarter of fiscal 2019 from the collection of a prior charge off on a single loan.

Classified assets totaled $6.3 million at March 31, 2019 compared to $6.0 million at December 31, 2018 and $7.7 million at March 31, 2018. The classified asset to total capital ratio was 4.5% at March 31, 2019 compared to 4.4% three months earlier and 6.2% 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 1.31% of total loans at March 31, 2019 compared to 1.32% of total loans at December 31, 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 $1.5 million at March 31, 2019 compared to $1.7 million at the end of the prior quarter and $2.2 million at March 31, 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 16.88% and a Tier 1 leverage ratio of 11.56% at March 31, 2019. The Company’s tangible common equity to average tangible assets ratio (non-GAAP) was 9.31% at March 31, 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)   March 31, 2019   December 31, 2018   March 31, 2018
             
Shareholders' equity   $   133,122   $   128,094   $   116,901
Goodwill       27,076       27,076       27,076
Core deposit intangible, net       920       966       1,103
Tangible shareholders' equity   $   105,126   $   100,052   $   88,722
             
Total assets   $   1,156,921   $   1,151,225   $   1,151,535
Goodwill       27,076       27,076       27,076
Core deposit intangible, net       920       966       1,103
Tangible assets   $   1,128,925   $   1,123,183   $   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 $1.16 billion at March 31, 2019, 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 clients. There are 18 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 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.

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


RIVERVIEW BANCORP, INC. AND SUBSIDIARY          
Consolidated Balance Sheets          
           
(In thousands, except share data)  (Unaudited) March 31, 2019   December 31, 2018   March 31, 2018
ASSETS  
   
Cash (including interest-earning accounts of $5,844, $4,641 $   22,950     $   23,394     $   44,767  
and $30,052)          
Certificate of deposits held for investment     747         747         5,967  
Loans held for sale     909         -         210  
Investment securities:          
Available for sale, at estimated fair value     178,226         182,280         213,221  
Held to maturity, at amortized cost     35         36         42  
Loans receivable (net of allowance for loan losses of $11,457, $11,502           
and $10,766)     864,659         857,134         800,610  
Real estate owned     -         -         298  
Prepaid expenses and other assets     4,596         4,021         3,870  
Accrued interest receivable     3,919         3,789         3,477  
Federal Home Loan Bank stock, at cost     3,644         2,735         1,353  
Premises and equipment, net     15,458         14,940         15,783  
Deferred income taxes, net     4,195         4,680         4,813  
Mortgage servicing rights, net     296         325         388  
Goodwill     27,076         27,076         27,076  
Core deposit intangible, net     920         966         1,103  
Bank owned life insurance     29,291         29,102         28,557  
           
TOTAL ASSETS $   1,156,921     $   1,151,225     $   1,151,535  
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
LIABILITIES:          
Deposits $   925,068     $   943,578     $   995,691  
Accrued expenses and other liabilities     12,536         15,855         9,391  
Advance payments by borrowers for taxes and insurance     631         192         637  
Federal Home Loan Bank advances     56,586         34,543         -  
Junior subordinated debentures     26,575         26,553         26,484  
Capital lease obligations     2,403         2,410         2,431  
Total liabilities     1,023,799         1,023,131         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,          
March 31, 2019 – 22,607,712 issued and outstanding;          
December 31, 2018 - 22,598,712 issued and outstanding;     226         226         226  
March 31, 2018 – 22,570,179 issued and outstanding;          
Additional paid-in capital     65,094         65,056         64,871  
Retained earnings     70,428         67,126         56,552  
Accumulated other comprehensive loss     (2,626 )       (4,314 )       (4,748 )
Total shareholders’ equity     133,122         128,094         116,901  
           
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $   1,156,921     $   1,151,225     $   1,151,535  
 

 

RIVERVIEW BANCORP, INC. AND SUBSIDIARY            
Consolidated Statements of Income            
  Three Months Ended   Twelve Months Ended
(In thousands, except share data)  (Unaudited) March 31, 2019 Dec. 31, 2018 March 31, 2018   March 31, 2019 March 31, 2018
INTEREST INCOME:      
Interest and fees on loans receivable $   11,338 $   11,129 $   9,898   $   44,187 $   39,659
Interest on investment securities - taxable     1,032     1,110     1,235       4,456     4,648
Interest on investment securities - nontaxable     36     37     36       146     95
Other interest and dividends     58     60     75       329     558
Total interest and dividend income     12,464     12,336     11,244       49,118     44,960
             
INTEREST EXPENSE:            
Interest on deposits     237     240     275       996     1,208
Interest on borrowings     693     416     312       1,819     1,141
Total interest expense     930     656     587       2,815     2,349
Net interest income     11,534     11,680     10,657       46,303     42,611
Provision for loan losses     -     -     -       50     -
             
Net interest income after provision for loan losses     11,534     11,680     10,657       46,253     42,611
             
NON-INTEREST INCOME:            
Fees and service charges     1,743     1,511     1,431       6,699     5,779
Asset management fees     987     935     866       3,791     3,448
Net gain on sale of loans held for sale     39     82     119       317     641
Bank owned life insurance     189     192     201       734     819
Other, net     50     62     46       317     317
Total non-interest income, net     3,008     2,782     2,663       11,858     11,004
             
NON-INTEREST EXPENSE:            
Salaries and employee benefits     5,665     5,794     5,687       22,320     21,743
Occupancy and depreciation     1,318     1,306     1,349       5,334     5,454
Data processing     593     621     583       2,467     2,313
Amortization of core deposit intangible     46     45     58       183     232
Advertising and marketing     160     151     120       769     747
FDIC insurance premium     80     85     87       326     476
State and local taxes     176     125     178       651     605
Telecommunications     87     85     108       353     417
Professional fees     306     449     255       1,426     1,181
Other     531     142     702       1,870     2,450
Total non-interest expense     8,962     8,803     9,127       35,699     35,618
             
INCOME BEFORE INCOME TAXES     5,580     5,659     4,193       22,412     17,997
PROVISION FOR INCOME TAXES     1,373     1,271     1,184       5,146     7,755
NET INCOME $   4,207 $   4,388 $   3,009   $   17,266 $   10,242
             
Earnings per common share:            
Basic $   0.19 $   0.19 $   0.13   $   0.76 $   0.45
Diluted $   0.19 $   0.19 $   0.13   $   0.76 $   0.45
Weighted average number of common shares outstanding:            
Basic   22,605,012   22,598,712   22,565,483     22,588,395   22,531,480
Diluted   22,663,997   22,663,919   22,651,026     22,659,594   22,623,455


(Dollars in thousands)   At or for the three months ended   At or for the twelve months ended
    March 31, 2019   Dec. 31, 2018   March 31, 2018   March 31, 2019   March 31, 2018
AVERAGE BALANCES                    
Average interest–earning assets   $   1,066,133     $   1,057,199     $   1,043,755     $   1,059,063   $   1,044,907
Average interest-bearing liabilities     723,805       707,618       735,592       718,595     743,630
Net average earning assets     342,328       349,581       308,163       340,468     301,277
Average loans     869,950       854,368       802,275       844,142     789,204
Average deposits     929,219       967,246       969,916       963,934     978,090
Average equity     131,400       125,252       117,495       124,542     116,669
Average tangible equity (non-GAAP)     103,378       97,182       89,282       96,449     88,371
                     
                     
ASSET QUALITY   March 31, 2019   Dec. 31, 2018   March 31, 2018        
             
Non-performing loans   $   1,519     $   1,612     $   2,418          
Non-performing loans to total loans     0.17 %     0.19 %     0.30 %        
Real estate/repossessed assets owned   $   -     $  -     $  298          
Non-performing assets   $ 1,519     $  1,612     $  2,716          
Non-performing assets to total assets     0.13 %     0.14 %     0.24 %        
Net loan charge-offs in the quarter   $   45     $   11     $   101          
Net charge-offs in the quarter/average net loans     0.02 %     0.01 %     0.05 %        
                     
Allowance for loan losses   $   11,457     $   11,502     $   10,766          
Average interest-earning assets to average                     
  interest-bearing liabilities     147.30 %     149.40 %     141.89 %        
Allowance for loan losses to                     
  non-performing loans     754.25 %     713.52 %     445.24 %        
Allowance for loan losses to total loans     1.31 %     1.32 %     1.33 %        
Shareholders’ equity to assets     11.51 %     11.13 %     10.15 %        
                     
                     
CAPITAL RATIOS                    
Total capital (to risk weighted assets)     16.88 %     16.35 %     15.41 %        
Tier 1 capital (to risk weighted assets)     15.63 %     15.10 %     14.16 %        
Common equity tier 1 (to risk weighted assets)     15.63 %     15.10 %     14.16 %        
Tier 1 capital (to average tangible assets)     11.56 %     11.22 %     10.26 %        
Tangible common equity (to average tangible assets) (non-GAAP)     9.31
%     8.91
%     7.90
%        
                     
                     
DEPOSIT MIX   March 31, 2019   Dec. 31, 2018   March 31, 2018        
                     
Interest checking   $   183,388     $   183,426     $   192,989          
Regular savings       137,503         137,323         134,931      
Money market deposit accounts       233,317         242,081         265,661          
Non-interest checking       284,854         284,939         278,966          
Certificates of deposit       86,006         95,809         123,144          
Total deposits   $   925,068     $   943,578     $   995,691          
                     

 

COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS          
                   
        Other       Commercial  
    Commercial   Real Estate   Real Estate   & Construction  
    Business   Mortgage   Construction   Total  
March 31, 2019   (Dollars in thousands)  
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  
                   
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   March 31, 2019   Dec. 31, 2018   March 31, 2018      
    (Dollars in thousands)      
Commercial and construction                  
Commercial business   $ 162,796   $ 154,360   $ 137,672      
Other real estate mortgage     530,029     541,797     529,014      
Real estate construction     90,882     76,518     39,584      
Total commercial and construction     783,707     772,675     706,270      
Consumer                  
Real estate one-to-four family     84,053     86,240     90,109      
Other installment     8,356     9,721     14,997      
Total consumer     92,409     95,961     105,106      
                   
Total loans     876,116     868,636     811,376      
                   
Less:                  
Allowance for loan losses     11,457     11,502     10,766      
Loans receivable, net   $ 864,659   $ 857,134   $ 800,610      
                   

 

                           
DETAIL OF NON-PERFORMING ASSETS  
                 
        Northwest   Other    Southwest          
    Oregon   Oregon   Washington   Other   Total  
March 31, 2019   (dollars in thousands)  
                           
Commercial business   $   65   $   -   $   160   $   -   $   225  
Commercial real estate       -       896       185       -       1,081  
Consumer       -       -       169       44       213  
                           
  Total non-performing loans   $   65   $   896   $   514   $   44   $   1,519  
                           
                           
                           
                           
                           
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS          
                           
        Northwest   Other    Southwest          
    Oregon   Oregon   Washington   Total    
March 31, 2019   (dollars in thousands)  
                         
Land development   $   2,184   $   1,908   $   12,935   $   17,027    
Speculative construction       1,680       104       15,284       17,068    
                         
  Total land development and speculative construction   $   3,864   $   2,012   $   28,219   $   34,095    
 


       
    At or for the three months ended   At or for the tweleve months ended
SELECTED OPERATING DATA March 31, 2019 Dec. 31, 2018 March 31, 2018   March 31, 2019 March 31, 2018
           
Efficiency ratio (4)   61.63
%   60.87
%   68.52
%     61.38
%   66.43
%
Coverage ratio (6)   128.70
%   132.68
%   116.76
%     129.70
%   119.63
%
Return on average assets (1)   1.49 %   1.53 %   1.08 %     1.51 %   0.90 %
Return on average equity (1)   12.98 %   13.90
%   10.39 %     13.86 %   8.78 %
Return on average tangible equity (1) (non-GAAP)   16.50 %   17.91
%   13.67 %     17.90 %   11.59 %
             
NET INTEREST SPREAD            
Yield on loans   5.29 %   5.17 %   5.00 %     5.23 %   5.03 %
Yield on investment securities   2.37 %   2.38 %   2.32 %     2.33 %   2.23 %
  Total yield on interest-earning assets   4.75 %   4.63 %   4.37 %     4.64 %   4.31 %
             
Cost of interest-bearing deposits   0.15 %   0.14 %   0.16 %     0.15 %   0.17 %
Cost of FHLB advances and other borrowings   3.60 %   4.35 %   3.99 %     4.10 %   3.85 %
  Total cost of interest-bearing liabilities   0.52 %   0.37 %   0.32 %     0.39 %   0.32 %
             
Spread (7)   4.23 %   4.26 %   4.05 %     4.25 %   3.99 %
Net interest margin   4.39 %   4.39 %   4.14 %     4.38 %   4.08 %
             
PER SHARE DATA          
Basic earnings per share (2) $   0.19   $  0.19   $   0.13     $ 0.76   $ 0.45  
Diluted earnings per share (3)     0.19       0.19       0.13         0.76       0.45  
Book value per share (5)     5.89       5.67       5.18         5.89       5.18  
Tangible book value per share (5) (non-GAAP)     4.65       4.43       3.93         4.65       3.93  
Market price per share:            
  High for the period $   8.04   $   8.75   $   9.68     $   9.91   $   9.68  
  Low for the period     7.14       7.03       8.45         7.03       6.51  
  Close for period end     7.31       7.28       9.34         7.31       9.34  
Cash dividends declared per share     0.0400       0.0400       0.0300         0.1500       0.10500  
             
Average number of shares outstanding:            
  Basic (2)   22,605,012     22,598,712     22,565,483       22,588,395     22,531,480  
  Diluted (3)   22,663,997     22,663,919     22,651,026       22,659,594     22,623,455  
  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.