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Riverview Financial Corporation Reports First Quarter Earnings For 2019

HARRISBURG, Pa., May 3, 2019 /PRNewswire/ -- Riverview Financial Corporation (the "Company" or "Riverview") (RIVE), today reported unaudited financial results at and for the three months ended March 31, 2019.  Riverview reported a net loss of $687 thousand, or $(0.08) per basic and diluted weighted average common share, for the first quarter of 2019, compared to net income of $2.8 million, or $0.31 per basic and diluted weighted average common share, for the first quarter of 2018.

(PRNewsfoto/Riverview Financial Corporation)

The results for the first three months ended March 31, 2019 included the recognition of a nonrecurring executive separation pre-tax expense totaling $2.2 million, which primarily contributed to the first quarter net loss. The year over year decline was also due to the recognition of lower loan interest income resulting from a decline in loan balances due to anticipated merger related attrition throughout 2018, including payoffs of acquired purchase credit impaired and certain risk related loans and steadfast adherence to both credit quality underwriting standards and pricing discipline. 

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Riverview routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible book value per share and return on average tangible stockholders' equity. Riverview believes these non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.

HIGHLIGHTS

  • Book value per share and tangible book value per share increased $0.47 or 3.94% and $0.58 or 6.63%, respectively, at March 31, 2019, compared to the same period last year.
  • Tax-equivalent net interest margin was to 3.86% in the first quarter of 2019 compared to 4.38% for the same period last year. Tax-equivalent net interest margin, excluding the impact of purchase accounting, improved to 3.67% in the first quarter of 2019 compared to 3.62% for the same period last year.
  • Continued strength in asset quality as nonperforming assets as a percentage of loans, net and other real estate owned was 0.68% at the end of the first quarter of 2019, an improvement from 0.81% at December 31, 2018 and 0.90% at March 31, 2018.
  • Riverview incurred a pre-tax nonrecurring expense of $2.2 million in the first quarter of 2019 associated with a separation agreement of a contract employee.

"While recording a net operating loss in the first quarter of 2019 is the result of recognizing nonrecurring expenses primarily associated with an executive separation agreement, management's focus on core results and the need to take advantage of our current scale through improved operating efficiencies is unwavering", said Brett D. Fulk, President and Chief Executive Officer. "In addition to the anticipated cost savings associated with the separation of service with the aforementioned executive, we have initiated specific strategic measures to enhance noninterest income, improve operating efficiencies and increase interest income. One such initiative was the closure of two offices with successful transition of customers to nearby offices during the first quarter of 2019.  With respect to interest income, we anticipate loan growth opportunities through the addition of several experienced commercial relationship managers resulting from ongoing market disruption, chiefly among our largest competitors.  Additionally, we continue to analyze and take action with respect to our delivery system by repositioning our branch footprint to markets with greater growth and profitability potential.  Lastly, we have identified or developed a number of new products and services that will be introduced throughout 2019, all with demonstrated ability to either enhance revenue or decrease expenses.  In closing, management recognizes the need to address efficiencies, maintain expense discipline, while continuing to grow our balance sheet in a measured, profitable manner.  There is no higher priority in our company at the present time than positioning Riverview Financial Corporation to capitalize on our current scale for the purpose of enhancing shareholder value," concluded Fulk.

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three months ended March 31, decreased $1,663 thousand to $9,830 thousand in 2019 from $11,493 thousand in 2018.  The decrease in tax-equivalent net interest income was primarily attributable to the decline in loan balances and the realization of lower levels of loan accretion from purchase accounting marks.  The tax-equivalent net interest margin for the three months ended March 31, 2019, decreased to 3.86% from 4.38% for the comparable period of 2018. The tax-equivalent yield on earnings assets was 4.73% and the cost of funds was 1.06% in the first quarter of 2019. The tax-equivalent yield on the loan portfolio decreased to 5.02% in 2019 compared to 5.38% in 2018. The tax-equivalent net interest margin excluding the loan accretion would have been 3.67% in the first three months of 2019 compared to 3.62% for the same period last year. Investments yielded 3.10% on a tax-equivalent basis in the first quarter of 2019 compared to 2.74% for the same period last year. For the three months ended March 31, the cost of deposits increased 29 basis points to 1.01% in 2019 from 0.72% in 2018. Loans, net averaged $886.8 million in 2019 and $945.7 million in 2018. Average investments totaled $108.3 million in 2019 and $92.8 million in 2018. Average interest-bearing liabilities decreased to $842.6 million in 2019 from $896.5 million in 2018.

The provision for loan losses totaled $583 thousand for the quarter ended March 31, 2019, compared to $390 thousand in 2018. Management does not believe this increase to be a reflection of rising systemic risk within the loan portfolio.

For the quarter ended March 31, noninterest income totaled $1,811 thousand in 2019, a decrease of $142 thousand from $1,953 thousand in 2018.  The overall reduction was primarily driven by decreases in service charges, fees and commission of $175 thousand, and mortgage banking income of $64 thousand.  Service charge income realized a decrease in NSF and overdraft income, while mortgage banking income decreased due to higher mortgage origination rates and normal seasonal stagnation.  Positive increases were made in both trust and wealth management as income for the first quarter of 2019 increased by $50 thousand and $93 thousand, respectively, when compared against the first quarter of 2018.  Additionally, net losses on the sale of investment securities of $42 thousand were recognized in the first quarter of 2019 in order to dispose of certain investments with low yields and higher risk characteristics.

Noninterest expense increased $2,428 thousand, or 25.5%, to $11,964 thousand for the three months ended March 31, 2019, from $9,536 thousand for the same period last year. The increase was primarily due to $2.2 million in nonrecurring expense from an executive separation agreement.  The net cost of operation of other real estate owned was $127 thousand for the first quarter of 2019 versus $(1) thousand in the first quarter of 2018.  Other expenses increased $172 thousand, or 6.0%  to $3,044 thousand for the first quarter of 2019 from $2,872 thousand for the same period last year. Offsets to the overall increase in noninterest expense were realized through reduced costs in net occupancy and equipment of $33 thousand, and in the amortization expense of intangible assets of $27 thousand when comparing the first quarter of 2019 to the first quarter of 2018.

BALANCE SHEET REVIEW

Total assets, loans, net and deposits totaled $1.1 billion, $878.1 million, and $1.0 billion, respectively, at March 31, 2019. For the three months ended March 31, 2019, total assets increased $1.1 million while loans, net and deposits decreased $15.1 million and $3.6 million, respectively. Business lending, including commercial and commercial real estate loans decreased $11.5 million while retail lending, including residential mortgages and consumer loans decreased $7.3 million during the three months ended March 31, 2019. Offsetting the declines for the same period were increases of $3.7 million in construction lending.  Loan originations during the first quarter of 2019 represented a more moderate pace as compared to 2018 as management has continued its emphasize on strong credit quality underwriting standards and pricing discipline.  Total investments were $100.7 million at March 31, 2019, compared to $104.7 million at December 31, 2018. Total deposits decreased $3.6 million in 2019 since year-end 2018.  Noninterest-bearing deposits increased $2.3 million, while interest-bearing deposits decreased $5.9 million during the first three months of 2019. As a percentage of total deposits, noninterest-bearing deposits amounted to 16.5% at March 31, 2019 and 16.2% at December 31, 2018.

Stockholders' equity totaled $113.5 million, or $12.40 per share, at March 31, 2019, as compared with $113.9 million, or $12.49 per common share, at December 31, 2018. The decrease in equity in the three months ended March 31, 2019 was a result primarily of a net loss of $687 thousand and dividends declared of $915 thousand, offset partially by a reduction of $841 million in the accumulated other comprehensive loss.  A net increase of $341 thousand was realized in common stock and related surplus through the issuance of shares through shareholder and employee issuance and option plans.  Tangible stockholders' equity per common share decreased to $9.33 at March 31, 2019, compared to $9.39 at December 31, 2018.  

ASSET QUALITY REVIEW

Nonperforming assets were $6.0 million, or 0.68% of loans, net and foreclosed assets at March 31, 2019 compared to $7.2 million or 0.81% at December 31, 2018. Adjusting for accruing restructured loans, nonperforming assets were $3.2 million, or 0.37% of loans, net and foreclosed assets at March 31, 2019, and $4.3 million, or 0.48%, at December 31, 2018. The allowance for loan losses equaled $6.5 million, or 0.74%, of loans, net at March 31, 2019, compared to $6.3 million, or 0.71%, at December 31, 2018.  Adding accounting marks for purchased credit impaired loans to the allowance for loan losses would result in a ratio of 1.14% as a percentage of loans, net at March 31, 2019. The coverage ratio, allowance for loan losses as a percentage of nonperforming assets, was 108.9% at March 31, 2019 versus 88.1% at December 31, 2018. Excluding accruing restructured loans, the coverage ratio would be 201.1% at March 31, 2019. Loans charged-off, net of recoveries, for the three months ended March 31, 2019, equaled $445 thousand, compared to $181 thousand for the same period last year. 

Riverview Financial Corporation is the parent company of Riverview Bank and its operating divisions Citizens Neighborhood Bank, CBT Bank, Riverview Wealth Management and CBT Financial and Trust Management. An independent community bank, Riverview Bank serves the Pennsylvania market areas of Berks, Blair, Centre, Clearfield, Dauphin, Huntingdon, Lebanon, Lycoming, Northumberland, Perry, Schuylkill and Somerset Counties through 28 community banking offices and four limited purpose offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. The Wealth Management and Trust divisions, with assets under management exceeding $350 million, provide trust and investment advisory services to the general public, businesses and not-for-profit organizations. Riverview's business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies. The Company's common stock trades on the Nasdaq Global Market under the symbol "RIVE". The Investor Relations site can be accessed at https://www.riverviewbankpa.com/.

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Riverview Financial Corporation, Riverview Bank, and its subsidiaries (collectively, "Riverview") that may be considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Riverview claims the protection of the statutory safe harbors for forward-looking statements.

Riverview cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting Riverview' operations, pricing, products and services and other factors that may be described in Riverview' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.

In addition to these risks, acquisitions and business combinations present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder-or take longer-to achieve than expected. As regulated financial institutions, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre­acquisition operations of an acquired or combined business may cause reputational harm to Riverview following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues. 

The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Riverview assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Riverview routinely presents and supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity and Core net income ratios. The reported results for the three months ended March 31, 2019 and 2018, contain items which Riverview considers non-Core, namely net gains on sales of investment securities available-for-sale, acquisition related expenses and the adjustment to tax expense due to the enactment of the Tax Act. Riverview presents the non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in Riverview's results of operation.  Presentation of these non-GAAP financial measures is consistent with how Riverview evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in evaluation of companies in Riverview's industry. Where non-GAAP measures are used in this press release, reconciliations to the comparable GAAP measures are provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from similarly titled non-GAAP financial measures of other financial institutions.  These non-GAAP financial measures would not be considered a substitute for GAAP basis measures, and Riverview strongly encourages a review of its condensed consolidated financial statements in their entirety.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are presented in the tabular material that follows.

 

[TABULAR MATERIAL FOLLOWS]

 

Summary Data

Riverview Financial Corporation

Five Quarter Trend

(In thousands, except per share data)








Mar 31

Dec 31  

Sept 30  

Jun 30  

Mar 31  


2019

2018

2018

2018

2018

Key performance data:












Per common share data:






Net income (loss)

$(0.08)

$  0.27

$  0.30

$  0.31

$  0.31

Core net income (1)

$  0.12

$  0.27

$  0.31

$  0.31

$  0.35

Cash dividends declared

$  0.10

$  0.10

$  0.10

$  0.10

$  0.00

Book value

$12.40

$12.49

$12.30

$12.15

$11.93

Tangible book value (1)

$  9.33

$  9.39

$  9.17

$  8.99

$  8.75

Market value:






High

$13.00

$14.29

$14.40

$12.75

$13.85

Low

$10.90

$10.11

$12.56

$11.85

$12.31

Closing

$11.50

$10.90

$13.60

$12.65

$12.31

Market capitalization

$105,278

$99,425

$123,905

$115,052

$111,827

Common shares outstanding

9,154,599

9,121,555

9,110,676

9,094,986

9,084,277







Selected ratios:












Return on average stockholders' equity

(2.46)%

8.64%

9.89%

10.17%

10.59%







Core return on average stockholders' equity (1)

3.93%

8.78%

10.01%

10.13%

11.88%







Return on average tangible stockholders' equity (1)

(3.27)%

11.52%

13.29%

13.78%

14.50%







Core return on average tangible stockholders' equity (1)

5.23%

11.70%

13.45%

13.73%

16.27%







Return on average assets

(0.25)%

0.86%

0.96%

0.97%

0.98%







Core return on average assets (1)

0.39%

0.87%

0.97%

0.96%

1.10%







Stockholders' equity to total assets

9.97%

10.01%

9.69%

9.59%

9.26%







Efficiency ratio (2)

100.74%

76.11%

69.89%

71.46%

69.28%







Nonperforming assets to loans, net, and foreclosed assets

 

0.68%

 

0.81%

 

0.91%

 

0.89%

 

0.90%







Net charge-offs to average loans, net

0.20%

0.05%

0.07%

0.05%

0.08%







Allowance for loan losses to loans, net

0.74%

0.71%

0.71%

0.68%

0.70%







Earning assets yield (FTE) (3)

4.73%

5.13%

4.93%

4.67%

5.05%







Cost of funds

1.06%

1.02%

0.96%

0.89%

0.80%







Net interest spread (FTE) (3)

3.67%

4.11%

3.97%

3.78%

4.25%







Net interest margin (FTE) (3)

3.86%

4.30%

4.15%

3.94%

4.38%















(1)

See Reconciliation of Non-GAAP financial measures.

(2)

Total noninterest expense less amortization of intangible assets divided by tax-equivalent net interest income and noninterest income less net gain (loss) on sale of investment securities available-for-sale.

(3)

Tax-equivalent adjustments were calculated using the prevailing federal statutory tax rate.


 

 

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)





Three Months Ended

Mar 31


Mar 31


2019


2018

Interest income:




Interest and fees on loans:




Taxable

$10,688


$12,241

Tax-exempt

230


234

Interest and dividends on investment securities:




Taxable

740


523

Tax-exempt

69


82

Dividends




Interest on interest-bearing deposits in other banks

231


79

Interest on federal funds sold



10

Total interest income

11,958


13,169





Interest expense:




Interest on deposits

2,073


1,554

Interest on short-term borrowings



30

Interest on long-term debt

134


176

Total interest expense

2,207


1,760

Net interest income

9,751


11,409

Provision for loan losses

583


390

Net interest income after provision for loan losses

9,168


11,019





Noninterest income:




Service charges, fees and commissions

1,053


1,228

Commissions and fees on fiduciary activities

260


210

Wealth management income

247


154

Mortgage banking income

106


170

Life insurance investment income

187


191

Net gain (loss) on sale of investment securities available-for-sale

(42)



Total noninterest income

1,811


1,953





Noninterest expense:




Salaries and employee benefits expense

7,510


5,322

Net occupancy and equipment expense

1,089


1,122

Amortization of intangible assets

194


221

Net cost (benefit) of operation of other real estate owned

127


(1)

Other expenses

3,044


2,872

Total noninterest expense

11,964


9,536

Income (loss) before income taxes

(985)


3,436

Income tax expense (benefit)

(298)


625

Net income (loss)

$(687)


$2,811

    Other comprehensive income (loss):




Unrealized gain (loss) on investment securities available-for-sale

$1,023


$(1,075)

Reclassification adjustment for (gain) loss included in net income

42



Change in pension liability




Income tax expense (benefit) related to other comprehensive income (loss)

224


(225)

Other comprehensive income (loss), net of income taxes

841


(850)

Comprehensive income (loss)

$154


$1,961





Per common share data:




Net income (loss):




         Basic

$(0.08)


$0.31

         Diluted

$(0.08)


$0.31

Average common shares outstanding:




         Basic

9,143,316


9,079,043

         Diluted

9,143,316


9,137,706

Cash dividends declared

$0.10


$0.00














 

 

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)








Three months ended

Mar 31

Dec 31

Sept 30

Jun 30

Mar 31



2019

2018

2018

2018

2018


Interest income:







Interest and fees on loans:







Taxable

$  10,688

$  12,309

$  11,957

$  11,226

$  12,241


Tax-exempt

230

231

230

235

234


Interest and dividends on investment securities available-for-sale:







Taxable

740

660

551

542

523


Tax-exempt

69

77

80

81

82


Dividends







Interest on interest-bearing deposits in other banks

231

214

181

101

79


Interest on federal funds sold




10

10


Total interest income

11,958

13,491

12,999

12,195

13,169









Interest expense:







Interest on deposits

2,073

2,027

1,885

1,723

1,554


Interest on short-term borrowings





30


Interest on long-term debt

134

184

194

192

176


Total interest expense

2,207

2,211

2,079

1,915

1,760


Net interest income

9,751

11,280

10,920

10,280

11,409


Provision for loan losses

583


225


390


Net interest income after provision for loan losses

9,168

11,280

10,695

10,280

11,019









Noninterest income:







Service charges, fees and commissions

1,053

1,551

1,267

1,651

1,228


Commissions and fees on fiduciary activities

260

244

226

235

210


Wealth management income

247

239

199

219

154


Mortgage banking income

106

114

168

189

170


Life insurance investment income

187

192

194

199

191


Net gain (loss) on sale of investment securities available-for-sale

(42)



40



        Total noninterest income

1,811

2,340

2,054

2,533

1,953









Noninterest expense:







Salaries and employee benefits expense

7,510

6,489

5,032

5,221

5,322


Net occupancy and equipment expense

1,089

1,011

1,008

1,012

1,122


Amortization of intangible assets

194

212

215

220

221


Net cost (benefit) of operation of other real estate owned

127

18

29

2

(1)


Other expenses

3,044

2,910

3,057

2,953

2,872


Total noninterest expense

11,964

10,640

9,341

9,408

9,536


Income (loss) before income taxes

(985)

2,980

3,408

3,405

3,436


Income tax expense (benefit)

(298)

508

620

618

625


Net income (loss)

$     (687)

$  2,472

$  2,788

$  2,787

$  2,811









Other comprehensive income (loss):







Unrealized gain (loss) on investment securities available-for-sale

$    1,023

$    527

$  (576)

$     112

$(1,075)


Reclassification adjustment for (gain) loss included in net income

42



(40)



Change in pension liability


(265)





Income tax expense (benefit) related to other comprehensive income (loss)

224

54

(121)

15

(225)


Other comprehensive income (loss), net of income taxes

841

208

(455)

57

(850)


Comprehensive income (loss)

$       154

$ 2,680

$ 2,333

$ 2,844

$ 1,961









Per common share data:







Net income (loss):







         Basic

$ (0.08)

$ 0.27

$ 0.30

$ 0.31

$ 0.31


         Diluted

$ (0.08)

$ 0.27

$ 0.30

$ 0.31

$ 0.31


Average common shares outstanding:







         Basic

9,143,316

9,115,450

9,100,616

9,089,011

9,079,043


         Diluted

9,143,316

9,163,855

9,156,931

9,134,248

9,137,706


Cash dividends declared

$ 0.10

$ 0.10

$ 0.10

$ 0.10

$ 0.00























 

 

Riverview Financial Corporation

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)







Three months ended

Mar 31  

Dec 31  

Sept 30  

Jun 30  

Mar 31  


2019

2018

2018

2018

2018

Net interest income:






Interest income






Loans, net:






Taxable

$10,688

$12,309

$11,957

$11,226

$12,241

Tax-exempt

291

292

291

298

296

Total loans, net

10,979

12,601

12,248

11,524

12,537

Investments:






Taxable

740

660

551

542

523

Tax-exempt

87

97

102

102

104

Total investments

827

757

653

644

627

Interest on interest-bearing balances in other banks

231

214

181

101

79

Federal funds sold




10

10

Total interest income

12,037

13,572

13,082

12,279

13,253

Interest expense:






Deposits

2,073

2,027

1,885

1,723

1,554

Short-term borrowings





30

Long-term debt

134

184

194

192

176

Total interest expense

2,207

2,211

2,079

1,915

1,760

Net interest income

$9,830

$11,361

$11,003

$10,364

$11,493







Yields on earning assets:






Loans, net:






Taxable

5.09%

5.60%

5.32%

5.02%

5.46%

Tax-exempt

3.34%

3.26%

3.25%

3.29%

3.23%

Total loans, net

5.02%

5.51%

5.24%

4.95%

5.38%

Investments:






Taxable

3.09%

3.00%

2.82%

2.82%

2.76%

Tax-exempt

3.15%

2.92%

2.83%

2.77%

2.66%

Total investments

3.10%

2.99%

2.82%

2.81%

2.74%

Interest-bearing balances with banks

2.54%

2.08%

2.14%

1.50%

1.36%

Federal funds sold




1.56%

1.55%

Total earning assets

4.73%

5.13%

4.93%

4.67%

5.05%

Costs of interest-bearing liabilities:






Deposits

1.01%

0.95%

0.88%

0.81%

0.72%

Short-term borrowings





1.67%

Long-term debt

7.87%

5.95%

5.89%

5.87%

5.41%

Total interest-bearing liabilities

1.06%

1.02%

0.96%

0.89%

0.80%

Net interest spread

3.67%

4.11%

3.97%

3.78%

4.25%

Net interest margin

3.86%

4.30%

4.15%

3.94%

4.38%










 

 

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands, except per share data)








Mar 31 

Dec 31 

Sept 30 

Jun 30 

Mar 31 

At period end

2019

2018

2018

2018

2018







Assets:






Cash and due from banks

$  12,278

$  16,708

$  13,310

$  13,139

$  14,396

Interest-bearing balances in other banks

55,823

37,108

43,505

23,481

40,724

Federal funds sold





4,729

Investment securities available-for-sale

100,684

104,677

97,102

87,908

88,773

Loans held for sale

695

637

598

873

610

Loans, net

878,070

893,184

915,529

939,887

934,190

Less: allowance for loan losses

6,486

6,348

6,472

6,401

6,515

Net loans

871,584

886,836

909,057

933,486

927,675

Premises and equipment, net

18,355

18,208

18,427

18,542

18,714

Accrued interest receivable

3,018

3,010

3,066

2,786

2,865

Goodwill

24,754

24,754

24,754

24,754

24,754

Other intangible assets, net

3,315

3,509

3,721

3,935

4,155

Other assets

48,206

42,156

43,193

42,900

43,771

Total assets

$1,138,712

$1,137,603

$1,156,733

$1,151,804

$1,171,166













Liabilities:






Deposits:






Noninterest-bearing

$  164,880

$  162,574

$  162,385

$  170,232

$  157,011

Interest-bearing

836,149

842,019

858,379

847,490

881,594

Total deposits

1,001,029

1,004,593

1,020,764

1,017,722

1,038,605

Short-term borrowings






Long-term debt

6,912

6,892

13,019

13,091

13,160

Accrued interest payable

475

484

503

449

466

Other liabilities

16,806

11,724

10,416

10,075

10,535

Total liabilities

1,025,222

1,023,693

1,044,702

1,041,337

1,062,766







Stockholders' equity:






Common stock

101,500

101,134

100,999

100,790

100,660

Capital surplus

307

332

356

424

422

Retained earnings

13,461

15,063

13,503

11,625

9,747

Accumulated other comprehensive income (loss)

(1,778)

(2,619)

(2,827)

(2,372)

(2,429)

Total stockholders' equity

113,490

113,910

112,031

110,467

108,400

Total liabilities and stockholders' equity

$1,138,712

$1,137,603

$1,156,733

$1,151,804

$1,171,166


















 

 

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands except per share data)









Mar 31

Dec 31

Sept 30

Jun 30

Mar 31

Average quarterly balances

2019

2018

2018

2018

2018








Assets:







Loans, net:






Taxable

$851,515

$872,615

$891,455

$897,085

$908,574

Tax-exempt

35,298

35,501

35,478

36,374

37,153

Total loans, net

886,813

908,116

926,933

933,459

945,727

Investments:






Taxable

97,041

87,249

77,573

77,061

76,952

Tax-exempt

11,215

13,198

14,288

14,784

15,836

Total investments

108,256

100,447

91,861

91,845

92,788

Interest-bearing balances with banks

36,953

40,787

33,553

27,067

23,607

Federal funds sold




2,568

2,617

Total earning assets

1,032,022

1,049,350

1,052,347

1,054,939

1,064,739

Other assets

97,628

95,000

97,377

99,492

98,503

Total assets

$1,129,650

$1,144,350

$1,149,724

$1,154,431

$1,163,242







Liabilities and stockholders' equity:






Deposits:






Interest-bearing

$835,687

$847,867

$850,492

$853,986

$875,985

Noninterest-bearing

156,735

159,758

163,142

166,828

149,123

Total deposits

992,422

1,007,625

1,013,634

1,020,814

1,025,108

Short-term borrowings





7,297

Long-term debt

6,902

12,268

13,060

13,124

13,205

Other liabilities

17,006

10,973

11,208

10,573

9,996

Total liabilities

1,016,330

1,030,866

1,037,902

1,044,511

1,055,606

Stockholders' equity

113,320

113,484

111,822

109,920

107,636

Total liabilities and stockholders' equity

$1,129,650

$1,144,350

$1,149,724

$1,154,431

$1,163,242

 

 

Riverview Financial Corporation

Asset Quality Data

(In thousands)








Mar 31

Dec 31

Sept 30

Jun 30

Mar 31


2019

2018

2018

2018

2018

At quarter end:






Nonperforming assets:






Nonaccrual loans

$2,643

$2,729

$2,780

$2,070

$2,629

Accruing restructured loans

2,731

2,913

4,663

4,693

5,310

Accruing loans past due 90 days or more

122

839

225

1,536

393

Foreclosed assets

461

721

668

90

92

Total nonperforming assets

$5,957

$7,202

$8,336

$8,389

$8,424







Three months ended:






Allowance for loan losses:






Beginning balance

$6,348

$6,472

$6,401

$6,515

$6,306

Charge-offs

520

166

189

166

226

Recoveries

75

42

35

52

45

Provision for loan losses

583


225


390

Ending balance

$6,486

$6,348

$6,472

$6,401

$6,515













 

 

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)








Mar 31  

Dec 31  

Sept 30  

Jun 30  

Mar 31  

Three months ended:

2019

2018

2018

2018

2018

Core net income (loss) per common share:






Net income (loss)

$(687)

$2,472

$2,788

$2,787

$2,811

Adjustments:






Less: Gain (loss) on sale of investment securities, net of tax

(33)



32


Add: Acquisition related expenses, net of tax


39

34

22

342

Add: Executive severance payout

1,752





Net income (loss) Core

$1,098

$2,511

$2,822

$2,777

$3,153







Average common shares outstanding

9,143,316

9,115,450

9,100,616

9,089,011

9,079,043

Core net income (loss) per common share

$  0.12

$  0.27

$  0.31

$  0.31

$  0.35







Tangible book value:






Total stockholders' equity

$113,490

$113,910

$112,031

$110,467

$108,400

Less: Goodwill

24,754

24,754

24,754

24,754

24,754

Less: Other intangible assets, net

3,315

3,509

3,721

3,935

4,155

Total tangible stockholders' equity

$85,421

$85,647

$83,556

$81,778

$79,491







Common shares outstanding

9,154,599

9,112,555

9,110,676

9,094,986

9,084,277

Tangible book value per share

$  9.33

$  9.39

$  9.17

$  8.99

$  8.75







Core return on average stockholders' equity:






Net income (loss) GAAP

$(687)

$2,472

$2,788

$2,787

$2,811

Adjustments:






Less: Gain (loss) on sale of investment securities, net of tax

(33)



32


Add: Acquisition related expenses, net of tax


39

34

22

342

Add: Executive separation expense, net of tax

1,752





Net income (loss) Core

$1,098

$2,511

$2,822

$2,777

$3,153







Average stockholders' equity

$113,320

$113,484

$111,822

$109,920

$107,636

Core return on average stockholders' equity

3.93%

8.78%

10.01%

10.13%

11.88%







Return on average tangible equity:






Net income (loss) GAAP

$(687)

$2,472

$2,788

$2,787

$2,811







Average stockholders' equity

$113,320

$113,484

$111,822

$109,920

$107,636

Less: average intangibles

28,164

28,365

28,578

28,800

29,021

Average tangible stockholders' equity

$85,156

$85,119

$83,244

$81,120

$78,615







Return on average tangible stockholders' equity

(3.27)%

11.52%

13.29%

13.78%

14.50%







Core return on average tangible stockholders' equity:






Net income (loss) GAAP

$(687)

$2,472

$2,788

$2,787

$2,811

Adjustments:






Less: Gain (loss) on sale of investment securities, net of tax

(33)



32


Add: Acquisition related expenses, net of tax


39

34

22

342

Add: Executive separation expense, net of tax

1,752





Net income (loss) Core

$1,098

$2,511

$2,822

$2,777

$3,153







Average stockholders' equity

$113,320

$113,484

$111,822

$109,920

$107,636

Less: average intangibles

28,164

28,365

28,578

28,800

29,021

Average tangible stockholders' equity

$85,156

$85,119

$83,244

$81,120

$78,615







Core return on average tangible stockholders' equity

5.23%

11.70%

13.45%

13.73%

16.27%







Core return on average assets:






Net income (loss) GAAP

$(687)

$2,472

$2,788

$2,787

$2,811

Adjustments:






Less: Gain (loss) on sale of investment securities, net of tax

(33)



32


Add: Acquisition related expenses, net of tax


39

34

22

342

Add: Executive separation expense, net of tax

1,752





Net income (loss) Core

$1,098

$2,511

$2,822

$2,777

$3,153







Average assets

$1,129,650

$1,144,350

$1,149,724

$1,154,431

$1,163,242

Core return on average assets

0.39%

0.87%

0.97%

0.96%

1.10%










 

 

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)







Mar 31

Mar 31



2019

2018

Three months ended:








Core net income per common share:




Net income (loss)


$(687)

$2,811

Adjustments:




   Less: Gains on sale of investment securities, net of tax


(33)


   Add: Acquisition related expenses, net of tax



342

   Add: Executive severance payout


1,752


Net income (loss) Core


$1,098

$3,153





Average common shares outstanding


9,143,316

9,079,043





Core net income (loss) per common share


$0.12

$0.35





 

 

Cision

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