Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today reported earnings of $3.4 million, or $0.15 per
diluted share, in the fourth fiscal quarter ended March 31, 2021,
compared to $4.0 million, or $0.18 per diluted share, in the
preceding quarter, and $2.9 million, or $0.13 per diluted share, in
the fourth fiscal quarter a year ago. For fiscal 2021, net income
was $10.5 million, or $0.47 per diluted share, compared to $15.7
million, or $0.69 per diluted share, in fiscal 2020.
“We reported strong fourth quarter and fiscal
year end results, with solid revenue generation, substantial
deposit growth, and controlled operating expenses,” stated Kevin
Lycklama, president and chief executive officer. “In addition to
our solid financial performance, the takeaway from the fiscal year
is how our entire team came together, persevered and did an
outstanding job supporting our clients and servicing their
financial needs during a very difficult time. During the quarter,
asset quality continues to be very strong with loan modifications
decreasing again, and our allowance for loan losses remains robust.
While there still remains some uncertainty in the overall economy,
with improving consumer confidence, lower levels of unemployment
and the robust vaccine rollout in Washington and Oregon, we believe
we are well positioned to emerge even stronger as we navigate
through this pandemic.”
Fourth Quarter Highlights (at or for the
period ended March 31, 2021)
- Net income was $3.4 million, or
$0.15 per diluted share.
- Pre-tax, pre-provision for loan
losses income (non-GAAP) was $4.4 million for the quarter compared
to $5.2 million in the previous quarter and $5.1 million for the
quarter ended March 31, 2020.
- Total loan modifications decreased
by $8.9 million, or 33%, during the quarter to $18.1 million at
March 31, 2021.
- Net interest margin (NIM) was
3.26%.
- Riverview recorded no provision for
loan losses during the quarter.
- Total loans increased $11.8 million
to $943.2 million at March 31, 2021. SBA PPP loans totaled $93.4
million.
- 517 PPP loans totaling $69.9
million (62%) have been forgiven by the SBA or repaid by the
borrower.
- Total deposits increased $109.1
million, or 8.8%, during the quarter to $1.35 billion.
- Non-performing assets were 0.04% of
total assets.
- Total risk-based capital ratio was
17.35% and Tier 1 leverage ratio was 9.63%.
- Paid a quarterly cash dividend of
$0.05 per share.
- All branches remain open with
specific COVID-19 guidelines in place to help protect employees and
customers.
COVID-19 Operational
Update:
-
Industry Exposure: Both Washington and Oregon have
modified phased reopening plans in place for businesses. While the
economic impact has been widespread, some industries are more
acutely affected by the current business decline. Loans to these
clients are generally secured by real estate and had strong
financial performance heading into the current pandemic.
Riverview’s loan portfolio exposure that is most affected by the
COVID-19 pandemic was our hotel/motel portfolio. ($104.4 million,
11.1% of total loans, 56% weighted average LTV and 1.86x DSCR). Our
hotel/motel loan portfolio is mainly concentrated in Northwest
Oregon and Southwest Washington with a few hotel/motel loans on the
Oregon Coast and in the Columbia River Gorge. The hotel/motel loan
portfolio is made up of mainly flagged properties versus
independent hotel and motels and are in the midscale and economy
categories.Riverview continues to diligently monitor the effects of
the pandemic on its customers, by allocating staffing resources to
conduct enhanced monitoring of the loan portfolio to identify
at-risk borrowers. Riverview continues to remain in close contact
with customers to work with them to develop longer term strategies
to mitigate potential credit losses. At March 31, 2021, $10.2
million of hotel/motel loans were on deferral which represents 9.8%
of the respective portfolio. There are payment plans in place with
these impacted borrowers which will allow these loans to return to
full payment status over the next several quarters.
- Loan Accommodations:
- Commercial Loans.
- Riverview has 5 commercial loan
modifications totaling $18.1 million at March 31, 2021. This
represents a 32% decrease from 8 commercial loans totaling $26.6
million at December 31, 2020, and an 89% decrease compared to the
peak of 98 loans totaling $161.6 million at June 30, 2020. The five
loans on deferral at March 31, 2021, are existing deferrals or had
a previous deferral that was extended. Riverview had no new loan
accommodation requests through the date of this press release.
- In general, borrowers that request
a re-deferral on their loan are required to provide financial plans
for returning to full principal and interest payments and post
payment reserves or additional collateral in consideration of
deferring payments.
- Loans under payment modifications
had a weighted average LTV of 71% and a weighted average
pre-COVID-19 DSCR of 1.63x. All of these loans are in senior
position and have personal guarantees by the borrowers.
- Consumer Loans.
- At March 31, 2021, there were no
consumer loan modifications as all had resumed payments. At
December 31, 2020, there were two consumer loan accommodations
totaling $462,000.
- Since all these loans were
performing and current on payments prior to COVID-19, these loan
modifications are not considered to be troubled debt restructurings
pursuant to provisions contained within the Coronavirus Aid,
Relief, and Economic Security Act (“CARES Act”) and the
Consolidated Appropriations Act, 2021 (“CAA 2021”).
-
Loan Loss Reserve: “Due to an improvement in
economic trends in our local markets, we recorded no provision for
loan losses during the current quarter or during the preceding
quarter. This compares to a $1.3 million provision for loan losses
for the fourth quarter a year ago,” said Lycklama. “We feel that we
are well positioned as we navigate through the pandemic, having
built up a strong liquidity position and significant loan loss
reserves of 2.39% of total loans, excluding SBA purchased and PPP
loans (non-GAAP), at March 31, 2021.” For fiscal 2021, the total
provision for loan losses was $6.3 million compared to $1.3 million
for fiscal 2020. The allowance for loan losses was $19.2 million,
or 2.03% of total loans at March 31, 2021.
-
Paycheck Protection Program (“PPP”) Loans: During
Round 1, Riverview originated 790 PPP loans totaling approximately
$112.9 million, net of deferred fees, from when the PPP began in
April 2020 until it concluded in August 2020, with an average loan
size of $147,000. The following table presents the breakdown and
balance, net of deferred fees, of Round 1 PPP loans at March 31,
2021 (in thousands):
Range |
Number of loans |
|
|
Total |
|
|
|
|
|
Up to $150,000 |
231 |
|
$ |
10,695 |
$150,001 to $350,000 |
22 |
|
|
4,563 |
$350,001 to $2,000,000 |
17 |
|
|
10,694 |
Over $2,000,000 |
6 |
|
|
17,041 |
Total |
276 |
|
$ |
42,993 |
During the third fiscal quarter, Riverview began
processing applications for loan forgiveness to the SBA. As of
March 31, 2021, the Company had $69.9 million in loans either
forgiven by the SBA or paid off from Round 1. During both the
fourth fiscal quarter of fiscal 2021 and previous linked quarter,
$1.5 million of interest and fee income was earned related to PPP
loan forgiveness and normal amortization. At March 31, 2021, there
was $598,000 in net unrecognized fees from PPP Round 1 that will be
recognized in income in future quarters.
The CAA 2021 provided additional COVID-19
stimulus relief, including $284 billion allocated for an additional
round of PPP lending, extending the program to March 31, 2021.
Recently the program was extended until May 31, 2021. The program
offered new PPP loans for companies that did not receive a PPP loan
in 2020, and also second draw loans targeted at hard-hit businesses
that had already spent their initial PPP proceeds.
In Round 2, Riverview originated 399 PPP loans
totaling approximately $50.4 million, net of deferred fees, with an
average loan size of $132,000. Unamortized PPP loan fees at March
31, 2021 totaled $2.1 million for Round 2. The following table
presents the breakdown and balance, net of deferred fees, of Round
2 PPP loans at March 31, 2021 (in thousands):
Range |
Number of loans |
|
|
Total |
|
|
|
|
|
Up to $150,000 |
309 |
|
$ |
14,846 |
$150,001 to $350,000 |
62 |
|
|
13,607 |
$350,001 to $2,000,000 |
27 |
|
|
20,056 |
Over $2,000,000 |
1 |
|
|
1,942 |
Total |
399 |
|
$ |
50,451 |
Income Statement
Return on average assets was 0.93% in the fourth
quarter of fiscal 2021 compared to 1.11% in the preceding quarter.
Return on average equity and return on average tangible equity
(non-GAAP) was 9.00% and 10.97%, respectively, compared to 10.56%
and 12.92%, respectively, for the prior quarter.
Riverview’s net interest income for the quarter
was $11.2 million compared to $11.5 million in the preceding
quarter and $11.1 million in the fourth quarter of the prior year.
While the low interest rate environment has impacted overall net
interest income, the impact of lower loan yields was partially
offset by decreasing deposit costs. In fiscal 2021, net interest
income was $44.9 million compared to $45.7 million in fiscal 2020.
Net interest income was boosted by interest and fee income on PPP
loans of $1.5 million and $4.5 million for the three months and
fiscal year ended March 31, 2021, respectively.
Fourth fiscal quarter net interest margin
(“NIM”) was 3.26% compared to 3.40% in the prior quarter and 4.10%
in the fourth quarter of fiscal 2020. The decrease in NIM was
primarily due to the increase in on-balance sheet liquidity and
lower interest rate environment. In fiscal 2021, the net interest
margin was 3.41% compared to 4.26% in fiscal 2020.
The average overnight cash balances were $248.1
million during the quarter ended March 31, 2021 compared to $235.2
million in the preceding quarter and $40.1 million for the fourth
fiscal quarter a year ago due to the growth in deposits. The
increase in overnight cash balances resulted in a 68 basis point
decrease in the NIM in the current quarter, a 71 basis point
decrease in the prior quarter and a 10 basis point decrease in the
same quarter a year ago.
During the fourth fiscal quarter, Riverview
continued the deployment of excess cash into its investment
portfolio. Investment securities totaled $255.9 million at March
31, 2021 compared to $186.6 million at December 31, 2020. During
the quarter, the Company purchased $87.4 million in new securities
with a weighted average yield of 1.36%. Investment purchases were
comprised primarily of agency securities, MBS backed by government
agencies and municipal securities.
Average securities balances for the quarters
ended March 31, 2021, December 31, 2020 and March 31, 2020 were
$204.8 million, $154.3 million and $151.2 million, respectively.
Weighted average yields on securities balances for those same
periods were 1.54%, 1.56% and 2.32%, respectively.
The accretion on purchased loans totaled $92,000
during the fourth quarter, compared to $58,000 during the preceding
quarter and $65,000 in the same period a year ago, resulting in a
two basis point increase in the NIM for the current period, the
preceding quarter and the same period a year ago. Net fees on loan
prepayments, which included purchased SBA loan premiums, decreased
net interest income by $72,000 in the fourth fiscal quarter of 2021
which decreased the NIM by two basis points for the quarter. This
compares to a $11,000 decrease and a $22,000 increase in net
interest income related to net fees on loan prepayments that did
not have an effect on NIM during the third fiscal quarter of 2021
or the fourth fiscal quarter a year ago. For the fourth fiscal
quarter of 2021, SBA PPP loan interest and fees added 23 basis
points to the NIM, due primarily to the recognition of PPP loan
fees as a part of the loan forgiveness process. For the preceding
quarter, PPP loan interest and fee income added 21 basis points to
the NIM. This resulted in a core-NIM (non-GAAP) of 3.71% in the
current quarter compared to 3.88% in the preceding quarter and
4.18% in the fourth fiscal quarter a year ago.
Average PPP loans were $90.3 million in the
fourth quarter compared to $99.9 million in the preceding quarter.
During the quarter, we recorded $229,000 in interest income on PPP
loans and $1.3 million in loan fee amortization into income. For
the quarter ended December 31, 2020, we recorded $252,000 in
interest income on PPP loans and $1.3 million in loan fee
amortization into income. Loan yields decreased five basis points
during the quarter to 4.77% compared to 4.82% in the preceding
quarter due to lower loan yields on new loan origination and
existing loans repricing at lower rates along with new PPP loans.
Loan yield excluding PPP loans was 4.56% for the quarter compared
to 4.67% in the preceding quarter.
The cost of deposits decreased to 0.15% during
the fourth quarter compared to 0.18% in the preceding quarter and
0.38% during the fourth quarter of fiscal 2020. The sequential
decrease in deposit costs during the quarter reflects the continued
low interest rate environment and are expected to decrease further
as certificates of deposit reprice at maturity. As of March 31,
2021, the current CD offerings range from 10 bps – 40 bps.
Non-interest income was $2.8 million during the
quarter, which was unchanged compared to the preceding quarter and
was slightly lower when compared to $2.9 million in the fourth
fiscal quarter of 2020. In fiscal 2021, non-interest income was
$11.1 million compared to $12.4 million in fiscal 2020. Fees and
service charges decreased compared to prior year due to the overall
impact of the COVID-19 pandemic early in fiscal 2021. However, fees
and service charges have stabilized in recent quarters as economic
activity and consumer spending increased in our local markets as a
result of Washington and Oregon’s phased reopening guidelines.
Asset management fees were $900,000 during the
fourth fiscal quarter compared to $889,000 in the preceding quarter
and $1.1 million in the fourth fiscal quarter a year ago. The
decrease was primarily due to the impact from the decline in
interest rates on fee generating products. Asset management fees
continue to contribute meaningfully to total non-interest income.
Riverview Trust Company’s assets under management was $1.3 billion
at March 31, 2021 and December 31, 2020, and $1.2 billion at March
31, 2020.
For the fourth fiscal quarter of 2021,
non-interest expense was $9.6 million compared to $9.1 million in
the preceding quarter and $8.8 million in the fourth fiscal quarter
a year ago. Salaries and employee benefits increased during the
quarter to $6.3 million compared to $5.7 million in the preceding
quarter and $5.5 million in the fourth fiscal quarter a year ago,
with higher year-end incentive payments for employees contributing
to a majority of the increase compared to the prior quarter. FDIC
insurance premiums increased to $98,000 compared to no FDIC
insurance premiums in the same quarter a year ago due to the
Company utilizing its remaining FDIC assessment credits. Riverview
expects its technology costs to remain elevated in the near term as
it continues to invest in its digital channels as customer
preference and adoption of these services has accelerated. For
fiscal 2021, non-interest expense was $36.3 million, which was
unchanged compared to fiscal 2020. Riverview will continue to focus
on controlling its operating expenses and improving operating
efficiencies.
The efficiency ratio was 68.6% for the fourth
fiscal quarter compared to 63.5% in the preceding quarter and 63.3%
in the fourth fiscal quarter a year ago. For fiscal 2021, the
efficiency ratio was 64.7% compared to 62.4% in fiscal 2020. The
year over year increase is due primarily to the impact of lower
operating revenue due to the pandemic and low interest rate
environment, as well as continued investments in upgrading our
digital and technology platforms.
Riverview’s effective tax rate for the fiscal
year 2021 was 22.2% compared to 23.5% for the fiscal year 2020. The
lower effective tax rate was a result of lower taxable income which
excluded our income from investments in bank-owned life insurance
which is not subject to income tax.
Balance Sheet Review
Riverview’s total loans increased $11.8 million
during the quarter to $943.2 million compared to $931.5 million in
the preceding quarter and increased $31.7 million compared to
$911.5 million a year ago. The increase in loan balances during the
quarter was primarily driven by new SBA PPP loans originated during
the fourth fiscal quarter of the year. SBA PPP loans balances, net
of fees, totaled $93.4 million at March 31, 2021 compared to $80.8
million at December 31, 2020. Organic loan growth continues to be
impacted by strong competition for high-quality loans in our
markets. The decrease in real estate one-to-four family loans was
due to the strategic decision in prior year to broker all new loan
originations to third-party mortgage companies.
The Company’s loan pipeline was $25.1 million at
March 31, 2021 compared to $49.4 million at the end of the prior
quarter. The loan pipeline decreased compared to the preceding
quarter as several loans in the prior quarter’s pipeline were
funded during the quarter in addition to our focus on the most
recent round of PPP loans. We anticipate an increase in our loan
pipeline as activity in our market area continues to improve.
Undisbursed construction loans totaled $14.0
million at March 31, 2021 compared to $9.9 million in the preceding
quarter, with the majority of the undisbursed construction loans
expected to fund over the next several quarters. Revolving
commercial business loan commitments totaled $69.7 million at March
31, 2021 compared to $71.5 million three months earlier.
Utilization on these loans totaled 11.0% at March 31, 2021 compared
to 12.0% at December 31, 2020. The weighted average rate on loan
originations during the quarter was 3.90% compared to 3.68% in the
preceding quarter and 4.16% in the fourth quarter a year ago.
Deposits increased $109.1 million, or 8.8%, to
$1.35 billion at March 31, 2021 compared to $1.24 billion in the
preceding quarter and increased $355.6 million, or 35.9%, compared
to $990.4 million a year earlier. A second round of PPP loan funds
deposited into customer accounts, as well as two additional federal
stimulus payments contributed to strong quarterly deposit growth.
Non-interest bearing checking accounts increased $164.1 million, or
60.5% year-over-year, to $435.1 million at March 31, 2021. Checking
accounts, as a percentage of total deposits, increased to 51.5% at
March 31, 2021 from 46.3% a year earlier.
Shareholders’ equity was $151.6 million at March
31, 2021 compared to $151.9 million three months earlier and $148.8
million a year earlier. Tangible book value per share (non-GAAP)
was $5.54 at March 31, 2021 compared to $5.56 at December 31, 2020
and $5.37 at March 31, 2020. Riverview paid a quarterly cash
dividend of $0.05 per share on April 21, 2021, consistent with the
past six quarters.
Credit Quality
Non-performing loans were $571,000, or 0.06% of
total loans, at March 31, 2021 compared to $393,000, or 0.04% of
total loans, three months earlier and decreased compared to $1.4
million, or 0.15% of total loans, at March 31, 2020. The
improvement in total non-performing loans year-over-year reflects
one non-performing loan payoff during the prior quarter. Riverview
recorded net loan charge-offs during the quarter of $14,000. This
compared to net loan recoveries during the prior quarter of
$326,000 that resulted from the resolution of the above mentioned
non-performing loan. Net loan charge offs were $60,000 in the
fourth fiscal quarter a year ago.
Classified assets were $7.7 million at March 31,
2021 compared to $4.0 million at December 31, 2020 and $1.6 million
at March 31, 2020. The classified asset to total capital ratio was
4.8% at March 31, 2021 compared to 2.5% three months earlier and
1.1% a year earlier.
Criticized assets decreased to $42.5 million at
March 31, 2021 compared to $46.5 million at December 31, 2020. This
balance reflects risk rating changes primarily associated with
loans that were granted COVID-19 loan modifications. In general,
borrowers whose loans were paying as agreed prior to COVID-19,
remain well-secured and have provided acceptable plans for
returning to full payment status were downgraded to a pass/watch
rating. Modifications that extended beyond six months and beyond
March 31, 2021 were generally downgraded to a special
mention/criticized rating unless other mitigating considerations
exist that lowered the bank’s credit risk. Borrowers who could not
provide a plan or whose business was closed with no plan for
re-opening in a reasonable timeframe, were moved to a
substandard/classified rating. In addition, the risk rating was
also downgraded for certain borrowers who were not granted COVID-19
loan modifications, but who have still been impacted negatively by
the COVID-19 pandemic.
At March 31, 2021, the allowance for loan losses
was $19.2 million which was unchanged compared to the preceding
quarter, and a significant increase compared to $12.6 million one
year earlier. The allowance for loan losses represented 2.03% of
total loans at March 31, 2021 compared to 2.06% in the preceding
quarter and 1.38% a year earlier. The allowance for loan losses to
loans, net of SBA guaranteed loans (including SBA PPP loans)
(non-GAAP), was 2.39% at March 31, 2021 compared to 2.41% at
December 31, 2020. 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 an amount below the outstanding principal balance. The
remaining net discount on these purchased loans was $722,000 at
March 31, 2021 compared to $813,000 three months earlier.
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 17.35%
and a Tier 1 leverage ratio of 9.63% at March 31, 2021. Tangible
common equity to average tangible assets ratio (non-GAAP) was 8.14%
at March 31, 2021.
Charter Conversion
Effective April 28, 2021, Riverview Community
Bank converted from a federal savings bank to a Washington
chartered commercial bank. As a result of that charter conversion
Riverview Bancorp, Inc. applied and received approval from the
Federal Reserve and converted from a savings and loan holding
company to a bank holding company on April 28, 2021.
Branch Consolidation
Riverview continues to actively review its
branch network for efficiencies due to customers’ increased usage
of online and mobile banking technologies. In January 2021,
Riverview consolidated one branch in the Heights neighborhood of
Vancouver and announced the consolidation of its branch in the
Montavilla neighborhood of Portland which is scheduled to be
completed in May 2021. In September 2020, Riverview also
consolidated two of its branches in Clark County, Washington and
simultaneously opened a new branch in the Cascade Park neighborhood
of Vancouver. Riverview plans to open a new location in Ridgefield,
Washington, one of the fastest growing cities in Clark County,
during the fall of 2021.
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. Management
has presented these non-GAAP financial measures in this earnings
release because it believes that they provide useful and
comparative information to assess trends in Riverview's core
operations reflected in the current quarter's results and
facilitate the comparison of our performance with the performance
of our peers. However, these non-GAAP financial measures are
supplemental and are not a substitute for any analysis based on
GAAP. Where applicable, comparable earnings information using GAAP
financial measures is also presented. Because not all companies use
the same calculations, our presentation may not be comparable to
other similarly titled measures as calculated by other companies.
For a reconciliation of these non-GAAP financial measures, see the
tables below.
Tangible shareholders' equity to tangible assets and
tangible book value per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (GAAP) |
|
$ |
151,594 |
|
|
$ |
151,874 |
|
|
$ |
148,843 |
|
|
|
|
|
|
|
Exclude: Goodwill |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
|
|
|
Exclude: Core deposit intangible, net |
|
|
(619 |
) |
|
|
(654 |
) |
|
|
(759 |
) |
|
|
|
|
|
|
Tangible
shareholders' equity (non-GAAP) |
|
$ |
123,899 |
|
|
$ |
124,144 |
|
|
$ |
121,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
(GAAP) |
|
$ |
1,549,158 |
|
|
$ |
1,436,184 |
|
|
$ |
1,180,808 |
|
|
|
|
|
|
|
Exclude: Goodwill |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
(27,076 |
) |
|
|
|
|
|
|
Exclude: Core deposit intangible, net |
|
|
(619 |
) |
|
|
(654 |
) |
|
|
(759 |
) |
|
|
|
|
|
|
Tangible
assets (non-GAAP) |
|
$ |
1,521,463 |
|
|
$ |
1,408,454 |
|
|
$ |
1,152,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity to total assets (GAAP) |
|
|
9.79 |
% |
|
|
10.57 |
% |
|
|
12.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets (non-GAAP) |
|
8.14 |
% |
|
|
8.81 |
% |
|
|
10.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding |
|
|
22,351,235 |
|
|
|
22,345,235 |
|
|
|
22,544,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per share (GAAP) |
|
|
6.78 |
|
|
|
6.80 |
|
|
|
6.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
book value per share (non-GAAP) |
|
|
5.54 |
|
|
|
5.56 |
|
|
|
5.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax, pre-provision income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
(Dollars in
thousands) |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
March 31, 2021 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP) |
|
$ |
3,414 |
|
|
$ |
4,035 |
|
|
$ |
2,894 |
|
|
$ |
10,472 |
|
|
$ |
15,748 |
|
|
|
Include: Provision for income taxes |
|
|
992 |
|
|
|
1,199 |
|
|
|
980 |
|
|
|
2,981 |
|
|
|
4,830 |
|
|
|
Include: Provision for loan losses |
|
|
- |
|
|
|
- |
|
|
|
1,250 |
|
|
|
6,300 |
|
|
|
1,250 |
|
|
|
Pre-tax,
pre-provision income (non-GAAP) |
|
$ |
4,406 |
|
|
$ |
5,234 |
|
|
$ |
5,124 |
|
|
$ |
19,753 |
|
|
$ |
21,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin reconciliation to core net interest
margin |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
(Dollars in
thousands) |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
March 31, 2021 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (GAAP) |
|
$ |
11,196 |
|
|
$ |
11,529 |
|
|
$ |
11,050 |
|
|
$ |
44,917 |
|
|
$ |
45,731 |
|
|
|
Tax equivalent adjustment |
|
|
16 |
|
|
|
14 |
|
|
|
5 |
|
|
|
41 |
|
|
|
37 |
|
|
|
Net fees on loan prepayments |
|
|
72 |
|
|
|
11 |
|
|
|
(22 |
) |
|
|
212 |
|
|
|
(377 |
) |
|
|
Accretion on purchased MBank loans |
|
|
(92 |
) |
|
|
(58 |
) |
|
|
(65 |
) |
|
|
(344 |
) |
|
|
(470 |
) |
|
|
SBA PPP loans interest income and fees |
|
|
(1,494 |
) |
|
|
(1,539 |
) |
|
|
- |
|
|
|
(4,459 |
) |
|
|
- |
|
|
|
Income on excess FRB liquidity |
|
|
(56 |
) |
|
|
(61 |
) |
|
|
(123 |
) |
|
|
(185 |
) |
|
|
(260 |
) |
|
|
Adjusted net
interest income (non-GAAP) |
|
$ |
9,642 |
|
|
$ |
9,896 |
|
|
$ |
10,845 |
|
|
$ |
40,182 |
|
|
$ |
44,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
(Dollars in
thousands) |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
March 31, 2021 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
balance of interest-earning assets (GAAP) |
|
$ |
1,393,153 |
|
|
$ |
1,346,324 |
|
|
$ |
1,083,493 |
|
|
$ |
1,320,109 |
|
|
$ |
1,075,297 |
|
|
|
SBA PPP loans (average) |
|
|
(90,268 |
) |
|
|
(99,851 |
) |
|
|
- |
|
|
|
(96,441 |
) |
|
|
- |
|
|
|
Excess FRB liquidity (average) |
|
|
(248,100 |
) |
|
|
(235,163 |
) |
|
|
(40,072 |
) |
|
|
(195,635 |
) |
|
|
(27,172 |
) |
|
|
Average
balance of interest-earning assets excluding |
|
|
|
|
|
|
|
|
|
|
|
|
SBA PPP loans and excess FRB liquidity (non-GAAP) |
$ |
1,054,785 |
|
|
$ |
1,011,310 |
|
|
$ |
1,043,421 |
|
|
$ |
1,028,033 |
|
|
$ |
1,048,125 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
March 31, 2021 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (GAAP) |
|
|
3.26 |
|
% |
|
3.40 |
|
% |
|
4.10 |
|
% |
|
3.41 |
|
% |
|
4.26 |
|
% |
|
Net fees on loan prepayments |
|
|
0.02 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.01 |
|
|
|
(0.04 |
) |
|
|
Accretion on purchased MBank loans |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.05 |
) |
|
|
SBA PPP loans |
|
|
(0.23 |
) |
|
|
(0.21 |
) |
|
|
0.00 |
|
|
|
(0.09 |
) |
|
|
0.00 |
|
|
|
Excess FRB liquidity |
|
|
0.68 |
|
|
|
0.71 |
|
|
|
0.10 |
|
|
|
0.61 |
|
|
|
0.09 |
|
|
|
Core net
interest margin (non-GAAP) |
|
|
3.71 |
|
% |
|
3.88 |
|
% |
|
4.18 |
|
% |
|
3.91 |
|
% |
|
4.26 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses reconciliation, excluding SBA
purchased and PPP loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands) |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
$ |
19,178 |
|
|
$ |
19,192 |
|
|
$ |
12,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
receivable (GAAP) |
|
$ |
943,235 |
|
|
$ |
931,468 |
|
|
$ |
911,509 |
|
|
|
|
|
|
|
Exclude: SBA purchased loans |
|
|
(47,379 |
) |
|
|
(53,743 |
) |
|
|
(74,797 |
) |
|
|
|
|
|
|
Exclude: SBA PPP loans |
|
|
(93,444 |
) |
|
|
(80,785 |
) |
|
|
- |
|
|
|
|
|
|
|
Loans
receivable excluding SBA purchased and PPP loans (non-GAAP) |
|
$ |
802,412 |
|
|
$ |
796,940 |
|
|
$ |
836,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to loans receivable (GAAP) |
|
|
2.03 |
% |
|
|
2.06 |
% |
|
|
1.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to loans receivable excluding SBA purchased and PPP
loans (non-GAAP) |
|
|
2.39 |
% |
|
|
2.41 |
% |
|
|
1.51 |
% |
|
|
|
|
|
|
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 $1.55 billion at March
31, 2021, it is the parent company of the 97-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 through 17 branches, including 14 in the Portland-Vancouver
area, and 3 lending centers. For the past 7 years, Riverview has
been named Best Bank by the readers of The Vancouver Business
Journal and The Columbian.
“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 effect of the
COVID-19 pandemic, including on our credit quality and business
operations, as well as the impact on general economic and financial
conditions and other uncertainties resulting from the COVID-19
pandemic, such as the extent and duration of the impact on public
health, the U.S. and global economies, and consumer and corporate
customers, including economic activity, employment levels and
market liquidity; 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 future goodwill impairment due to changes in the
Company’s business, changes in market conditions, including as a
result of the COVID-19 pandemic and other factors 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 2022 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) |
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Cash (including interest-earning accounts of $254,205,
$220,597, |
$ |
265,408 |
|
|
$ |
235,834 |
|
$ |
41,968 |
and $27,866) |
|
|
|
|
|
Certificate of deposits held for investment |
|
249 |
|
|
|
249 |
|
|
249 |
Loans held for sale |
|
- |
|
|
|
- |
|
|
275 |
Investment securities: |
|
|
|
|
|
Available for sale, at estimated fair value |
|
216,304 |
|
|
|
153,219 |
|
|
148,291 |
Held to maturity, at amortized cost |
|
39,574 |
|
|
|
33,425 |
|
|
28 |
Loans receivable (net of allowance for loan losses of $19,178, |
|
|
|
|
|
$19,192 and $12,624) |
|
924,057 |
|
|
|
912,276 |
|
|
898,885 |
Prepaid expenses and other assets |
|
13,189 |
|
|
|
13,365 |
|
|
7,452 |
Accrued interest receivable |
|
5,236 |
|
|
|
5,283 |
|
|
3,704 |
Federal Home Loan Bank stock, at cost |
|
1,722 |
|
|
|
1,420 |
|
|
1,420 |
Premises and equipment, net |
|
17,824 |
|
|
|
17,909 |
|
|
15,570 |
Financing lease right-of-use assets |
|
1,432 |
|
|
|
1,451 |
|
|
1,508 |
Deferred income taxes, net |
|
5,419 |
|
|
|
3,141 |
|
|
3,277 |
Mortgage servicing rights, net |
|
81 |
|
|
|
102 |
|
|
191 |
Goodwill |
|
27,076 |
|
|
|
27,076 |
|
|
27,076 |
Core deposit intangible, net |
|
619 |
|
|
|
654 |
|
|
759 |
Bank owned life insurance |
|
30,968 |
|
|
|
30,780 |
|
|
30,155 |
|
|
|
|
|
|
TOTAL ASSETS |
$ |
1,549,158 |
|
|
$ |
1,436,184 |
|
$ |
1,180,808 |
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
Deposits |
$ |
1,346,060 |
|
|
$ |
1,236,933 |
|
$ |
990,448 |
Accrued expenses and other liabilities |
|
21,906 |
|
|
|
18,155 |
|
|
11,783 |
Advance payments by borrowers for taxes and insurance |
|
521 |
|
|
|
156 |
|
|
703 |
Junior subordinated debentures |
|
26,748 |
|
|
|
26,726 |
|
|
26,662 |
Capital lease obligations |
|
2,329 |
|
|
|
2,340 |
|
|
2,369 |
Total liabilities |
|
1,397,564 |
|
|
|
1,284,310 |
|
|
1,031,965 |
|
|
|
|
|
|
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, 2021 - 22,351,235 issued and outstanding; |
|
|
|
|
|
December 31, 2020 - 22,345,235 issued and outstanding; |
|
223 |
|
|
|
223 |
|
|
225 |
March 31, 2020 – 22,748,385 issued and 22,544,285
outstanding; |
|
|
|
|
Additional paid-in capital |
|
63,650 |
|
|
|
63,539 |
|
|
64,649 |
Retained earnings |
|
87,881 |
|
|
|
85,584 |
|
|
81,870 |
Accumulated other comprehensive income (loss) |
|
(160 |
) |
|
|
2,528 |
|
|
2,099 |
Total shareholders’ equity |
|
151,594 |
|
|
|
151,874 |
|
|
148,843 |
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
1,549,158 |
|
|
$ |
1,436,184 |
|
$ |
1,180,808 |
RIVERVIEW BANCORP, INC. AND SUBSIDIARY |
|
|
|
|
|
|
Consolidated Statements of Income |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
(In thousands, except share data) (Unaudited) |
March 31, 2021 |
Dec. 31, 2020 |
March 31, 2020 |
|
March 31, 2021 |
March 31, 2020 |
|
INTEREST INCOME: |
|
|
|
|
|
|
|
Interest and fees on loans receivable |
$ |
11,023 |
$ |
11,601 |
$ |
11,259 |
|
$ |
45,498 |
$ |
46,405 |
|
Interest on investment securities - taxable |
|
713 |
|
549 |
|
851 |
|
|
2,422 |
|
3,440 |
|
Interest on investment securities - nontaxable |
|
50 |
|
44 |
|
17 |
|
|
129 |
|
117 |
|
Other interest and dividends |
|
79 |
|
98 |
|
164 |
|
|
295 |
|
533 |
|
Total interest and dividend income |
|
11,865 |
|
12,292 |
|
12,291 |
|
|
48,344 |
|
50,495 |
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
Interest on deposits |
|
473 |
|
556 |
|
937 |
|
|
2,544 |
|
2,890 |
|
Interest on borrowings |
|
196 |
|
207 |
|
304 |
|
|
883 |
|
1,874 |
|
Total interest expense |
|
669 |
|
763 |
|
1,241 |
|
|
3,427 |
|
4,764 |
|
Net interest income |
|
11,196 |
|
11,529 |
|
11,050 |
|
|
44,917 |
|
45,731 |
|
Provision for loan losses |
|
- |
|
- |
|
1,250 |
|
|
6,300 |
|
1,250 |
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses |
|
11,196 |
|
11,529 |
|
9,800 |
|
|
38,617 |
|
44,481 |
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
Fees and service charges |
|
1,667 |
|
1,654 |
|
1,491 |
|
|
6,382 |
|
6,541 |
|
Asset management fees |
|
900 |
|
889 |
|
1,039 |
|
|
3,646 |
|
4,408 |
|
Net gain on sale of loans held for sale |
|
- |
|
- |
|
42 |
|
|
28 |
|
252 |
|
Bank owned life insurance |
|
188 |
|
193 |
|
279 |
|
|
813 |
|
864 |
|
Other, net |
|
81 |
|
76 |
|
41 |
|
|
221 |
|
295 |
|
Total non-interest income, net |
|
2,836 |
|
2,812 |
|
2,892 |
|
|
11,090 |
|
12,360 |
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
6,301 |
|
5,698 |
|
5,452 |
|
|
22,570 |
|
22,805 |
|
Occupancy and depreciation |
|
1,439 |
|
1,434 |
|
1,518 |
|
|
5,780 |
|
5,576 |
|
Data processing |
|
666 |
|
638 |
|
643 |
|
|
2,662 |
|
2,629 |
|
Amortization of core deposit intangible |
|
35 |
|
35 |
|
40 |
|
|
140 |
|
161 |
|
Advertising and marketing |
|
83 |
|
144 |
|
167 |
|
|
466 |
|
856 |
|
FDIC insurance premium |
|
98 |
|
89 |
|
- |
|
|
319 |
|
81 |
|
State and local taxes |
|
196 |
|
190 |
|
180 |
|
|
794 |
|
675 |
|
Telecommunications |
|
50 |
|
74 |
|
81 |
|
|
295 |
|
327 |
|
Professional fees |
|
269 |
|
321 |
|
264 |
|
|
1,231 |
|
1,120 |
|
Other |
|
489 |
|
484 |
|
473 |
|
|
1,997 |
|
2,033 |
|
Total non-interest expense |
|
9,626 |
|
9,107 |
|
8,818 |
|
|
36,254 |
|
36,263 |
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
4,406 |
|
5,234 |
|
3,874 |
|
|
13,453 |
|
20,578 |
|
PROVISION FOR INCOME TAXES |
|
992 |
|
1,199 |
|
980 |
|
|
2,981 |
|
4,830 |
|
NET INCOME |
$ |
3,414 |
$ |
4,035 |
$ |
2,894 |
|
$ |
10,472 |
$ |
15,748 |
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
Basic |
$ |
0.15 |
$ |
0.18 |
$ |
0.13 |
|
$ |
0.47 |
$ |
0.69 |
|
Diluted |
$ |
0.15 |
$ |
0.18 |
$ |
0.13 |
|
$ |
0.47 |
$ |
0.69 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
Basic |
|
22,346,368 |
|
22,320,699 |
|
22,725,204 |
|
|
22,296,195 |
|
22,707,624 |
|
Diluted |
|
22,361,730 |
|
22,337,644 |
|
22,751,272 |
|
|
22,312,831 |
|
22,744,045 |
|
(Dollars in thousands) |
|
At or for the three months ended |
|
At or for the twelve months ended |
|
|
|
March 31, 2021 |
|
Dec. 31, 2020 |
|
March 31, 2020 |
|
March 31, 2021 |
|
March 31, 2020 |
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
Average interest–earning assets |
|
$ |
1,393,153 |
|
|
$ |
1,346,324 |
|
|
$ |
1,083,493 |
|
|
$ |
1,320,109 |
|
$ |
1,075,297 |
|
Average interest-bearing liabilities |
|
|
906,124 |
|
|
|
878,526 |
|
|
|
740,437 |
|
|
|
861,820 |
|
|
726,092 |
|
Net average earning assets |
|
|
487,029 |
|
|
|
467,798 |
|
|
|
343,056 |
|
|
|
458,289 |
|
|
349,205 |
|
Average loans |
|
|
938,162 |
|
|
|
955,183 |
|
|
|
892,715 |
|
|
|
966,070 |
|
|
884,498 |
|
Average deposits |
|
|
1,289,259 |
|
|
|
1,236,601 |
|
|
|
984,983 |
|
|
|
1,205,302 |
|
|
961,267 |
|
Average equity |
|
|
153,896 |
|
|
|
151,636 |
|
|
|
149,721 |
|
|
|
151,650 |
|
|
143,652 |
|
Average tangible equity (non-GAAP) |
|
|
126,180 |
|
|
|
123,886 |
|
|
|
121,862 |
|
|
|
123,881 |
|
|
115,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
March 31, 2021 |
|
Dec. 31, 2020 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
571 |
|
|
$ |
393 |
|
|
$ |
1,395 |
|
|
|
|
|
|
Non-performing loans to total loans |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.15 |
% |
|
|
|
|
|
Real estate/repossessed assets owned |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
Non-performing assets |
|
$ |
571 |
|
|
$ |
393 |
|
|
$ |
1,395 |
|
|
|
|
|
|
Non-performing assets to total assets |
|
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.12 |
% |
|
|
|
|
|
Net loan charge-offs (recoveries) in the quarter |
|
$ |
14 |
|
|
$ |
(326 |
) |
|
$ |
60 |
|
|
|
|
|
|
Net charge-offs (recoveries) in the quarter/average net loans |
|
|
0.01 |
% |
|
|
(0.14 |
)% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
19,178 |
|
|
$ |
19,192 |
|
|
$ |
12,624 |
|
|
|
|
|
|
Average interest-earning assets to average |
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities |
|
|
153.75 |
% |
|
|
153.25 |
% |
|
|
146.33 |
% |
|
|
|
|
|
Allowance for loan losses to |
|
|
|
|
|
|
|
|
|
|
|
non-performing loans |
|
|
3358.67 |
% |
|
|
4883.46 |
% |
|
|
904.95 |
% |
|
|
|
|
|
Allowance for loan losses to total loans |
|
|
2.03 |
% |
|
|
2.06 |
% |
|
|
1.38 |
% |
|
|
|
|
|
Shareholders’ equity to assets |
|
|
9.79 |
% |
|
|
10.57 |
% |
|
|
12.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Total capital (to risk weighted assets) |
|
|
17.35 |
% |
|
|
17.58 |
% |
|
|
17.01 |
% |
|
|
|
|
|
Tier 1 capital (to risk weighted assets) |
|
|
16.09 |
% |
|
|
16.32 |
% |
|
|
15.76 |
% |
|
|
|
|
|
Common equity tier 1 (to risk weighted assets) |
|
|
16.09 |
% |
|
|
16.32 |
% |
|
|
15.76 |
% |
|
|
|
|
|
Tier 1 capital (to average tangible assets) |
|
|
9.63 |
% |
|
|
9.80 |
% |
|
|
11.79 |
% |
|
|
|
|
|
Tangible common equity (to average tangible assets) (non-GAAP) |
|
|
8.14 |
% |
|
|
8.81 |
% |
|
|
10.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX |
|
March 31, 2021 |
|
Dec. 31, 2020 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking |
|
$ |
258,014 |
|
|
$ |
237,051 |
|
|
$ |
187,798 |
|
|
|
|
|
|
Regular savings |
|
|
291,769 |
|
|
|
267,901 |
|
|
|
226,880 |
|
|
|
|
|
|
Money market deposit accounts |
|
|
240,554 |
|
|
|
211,129 |
|
|
|
169,798 |
|
|
|
|
|
|
Non-interest checking |
|
|
435,098 |
|
|
|
393,023 |
|
|
|
271,031 |
|
|
|
|
|
|
Certificates of deposit |
|
|
120,625 |
|
|
|
127,829 |
|
|
|
134,941 |
|
|
|
|
|
|
Total deposits |
|
$ |
1,346,060 |
|
|
$ |
1,236,933 |
|
|
$ |
990,448 |
|
|
|
|
|
|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
Commercial |
|
|
|
Commercial |
|
Real Estate |
|
Real Estate |
|
& Construction |
|
|
|
Business |
|
Mortgage |
|
Construction |
|
Total |
|
|
|
|
|
March 31, 2021 |
|
(Dollars in thousands) |
|
Commercial business |
|
$ |
171,701 |
|
$ |
- |
|
$ |
- |
|
$ |
171,701 |
|
SBA PPP |
|
|
93,444 |
|
|
- |
|
|
- |
|
|
93,444 |
|
Commercial construction |
|
|
- |
|
|
- |
|
|
9,810 |
|
|
9,810 |
|
Office buildings |
|
|
- |
|
|
135,526 |
|
|
- |
|
|
135,526 |
|
Warehouse/industrial |
|
|
- |
|
|
87,880 |
|
|
- |
|
|
87,880 |
|
Retail/shopping centers/strip malls |
|
|
- |
|
|
85,414 |
|
|
- |
|
|
85,414 |
|
Assisted living facilities |
|
|
- |
|
|
854 |
|
|
- |
|
|
854 |
|
Single purpose facilities |
|
|
- |
|
|
233,793 |
|
|
- |
|
|
233,793 |
|
Land |
|
|
- |
|
|
14,040 |
|
|
- |
|
|
14,040 |
|
Multi-family |
|
|
- |
|
|
45,014 |
|
|
- |
|
|
45,014 |
|
One-to-four family construction |
|
|
- |
|
|
- |
|
|
7,180 |
|
|
7,180 |
|
Total |
|
$ |
265,145 |
|
$ |
602,521 |
|
$ |
16,990 |
|
$ |
884,656 |
|
|
|
|
|
|
|
|
|
|
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
179,029 |
|
$ |
- |
|
$ |
- |
|
$ |
179,029 |
|
Commercial construction |
|
|
- |
|
|
- |
|
|
52,608 |
|
|
52,608 |
|
Office buildings |
|
|
- |
|
|
113,433 |
|
|
- |
|
|
113,433 |
|
Warehouse/industrial |
|
|
- |
|
|
91,764 |
|
|
- |
|
|
91,764 |
|
Retail/shopping centers/strip malls |
|
|
- |
|
|
76,802 |
|
|
- |
|
|
76,802 |
|
Assisted living facilities |
|
|
- |
|
|
1,033 |
|
|
- |
|
|
1,033 |
|
Single purpose facilities |
|
|
- |
|
|
224,839 |
|
|
- |
|
|
224,839 |
|
Land |
|
|
- |
|
|
14,026 |
|
|
- |
|
|
14,026 |
|
Multi-family |
|
|
- |
|
|
58,374 |
|
|
- |
|
|
58,374 |
|
One-to-four family construction |
|
|
- |
|
|
- |
|
|
12,235 |
|
|
12,235 |
|
Total |
|
$ |
179,029 |
|
$ |
580,271 |
|
$ |
64,843 |
|
$ |
824,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN MIX |
|
March 31, 2021 |
|
Dec. 31, 2020 |
|
March 31, 2020 |
|
|
|
Commercial and construction |
|
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
265,145 |
|
$ |
252,687 |
|
$ |
179,029 |
|
|
|
Other real estate mortgage |
|
|
602,521 |
|
|
595,709 |
|
|
580,271 |
|
|
|
Real estate construction |
|
|
16,990 |
|
|
16,922 |
|
|
64,843 |
|
|
|
Total commercial and construction |
|
|
884,656 |
|
|
865,318 |
|
|
824,143 |
|
|
|
Consumer |
|
|
|
|
|
|
|
|
|
Real estate one-to-four family |
|
|
56,405 |
|
|
63,621 |
|
|
83,150 |
|
|
|
Other installment |
|
|
2,174 |
|
|
2,529 |
|
|
4,216 |
|
|
|
Total consumer |
|
|
58,579 |
|
|
66,150 |
|
|
87,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
943,235 |
|
|
931,468 |
|
|
911,509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
19,178 |
|
|
19,192 |
|
|
12,624 |
|
|
|
Loans receivable, net |
|
$ |
924,057 |
|
$ |
912,276 |
|
$ |
898,885 |
|
|
|
DETAIL OF NON-PERFORMING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southwest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington |
|
Other |
|
Total |
|
|
|
|
|
|
|
March 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
$ |
182 |
|
$ |
175 |
|
|
$ |
357 |
|
|
|
|
|
|
|
Commercial real estate |
|
|
144 |
|
|
- |
|
|
|
144 |
|
|
|
|
|
|
|
Consumer |
|
|
63 |
|
|
7 |
|
|
|
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-performing assets |
|
$ |
389 |
|
$ |
182 |
|
|
$ |
571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF LOAN MODIFICATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Loan Deferrals |
|
|
|
|
|
12/31/2020 |
|
Ended |
|
New |
|
Re-deferral |
|
3/31/2021 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel / Motel |
|
|
5 |
|
|
(2 |
) |
|
|
- |
|
|
- |
|
|
3 |
|
(40.0 |
)% |
|
Retail strip centers |
|
|
3 |
|
|
(2 |
) |
|
|
- |
|
|
- |
|
|
1 |
|
(66.7 |
)% |
|
Other - Commercial |
|
|
- |
|
|
- |
|
|
|
- |
|
|
1 |
|
|
1 |
|
100.0 |
% |
|
|
Total Commercial |
|
|
8 |
|
|
(4 |
) |
|
|
- |
|
|
1 |
|
|
5 |
|
(37.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
2 |
|
|
(2 |
) |
|
|
- |
|
|
- |
|
|
- |
|
(100.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
10 |
|
|
(6 |
) |
|
|
- |
|
|
1 |
|
|
5 |
|
(50.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Deferrals |
|
|
|
|
|
12/31/2020 |
|
Ended |
|
New |
|
Re-deferral |
|
3/31/2021 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel / Motel |
|
$ |
19,768 |
|
$ |
(9,548 |
) |
|
$ |
- |
|
$ |
- |
|
$ |
10,220 |
|
(48.3 |
)% |
|
Retail strip centers |
|
|
6,793 |
|
|
(6,230 |
) |
|
|
- |
|
|
- |
|
|
563 |
|
(91.7 |
)% |
|
Other - Commercial |
|
|
- |
|
|
- |
|
|
|
- |
|
|
7,302 |
|
|
7,302 |
|
100.0 |
% |
|
|
Total Commercial |
|
|
26,561 |
|
|
(15,778 |
) |
|
|
- |
|
|
7,302 |
|
|
18,085 |
|
(31.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
|
462 |
|
|
(462 |
) |
|
|
- |
|
|
- |
|
|
- |
|
(100.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
27,023 |
|
$ |
(16,240 |
) |
|
$ |
- |
|
$ |
7,302 |
|
$ |
18,085 |
|
(33.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
At
or for the three months ended |
|
At or for the twelve months ended |
|
SELECTED OPERATING DATA |
March 31, 2021 |
|
Dec. 31, 2020 |
|
March 31, 2020 |
|
March 31, 2021 |
|
March 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (4) |
|
68.60 |
% |
|
|
63.50 |
% |
|
|
63.25 |
% |
|
|
64.73 |
% |
|
|
62.42 |
% |
|
Coverage ratio (6) |
|
116.31 |
% |
|
|
126.59 |
% |
|
|
125.31 |
% |
|
|
123.90 |
% |
|
|
126.11 |
% |
|
Return on average assets (1) |
|
0.93 |
% |
|
|
1.11 |
% |
|
|
0.99 |
% |
|
|
0.74 |
% |
|
|
1.35 |
% |
|
Return on average equity (1) |
|
9.00 |
% |
|
|
10.56 |
% |
|
|
7.77 |
% |
|
|
6.91 |
% |
|
|
10.96 |
% |
|
Return on average tangible equity (1) (non-GAAP) |
|
10.97 |
% |
|
|
12.92 |
% |
|
|
9.55 |
% |
|
|
8.45 |
% |
|
|
13.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD |
|
|
|
|
|
|
|
|
|
|
Yield on loans |
|
4.77 |
% |
|
|
4.82 |
% |
|
|
5.07 |
% |
|
|
4.71 |
% |
|
|
5.25 |
% |
|
Yield on investment securities |
|
1.54 |
% |
|
|
1.56 |
% |
|
|
2.32 |
% |
|
|
1.65 |
% |
|
|
2.19 |
% |
|
Total yield on interest-earning assets |
|
3.46 |
% |
|
|
3.63 |
% |
|
|
4.56 |
% |
|
|
3.67 |
% |
|
|
4.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of interest-bearing deposits |
|
0.22 |
% |
|
|
0.26 |
% |
|
|
0.53 |
% |
|
|
0.31 |
% |
|
|
0.43 |
% |
|
Cost of FHLB advances and other borrowings |
|
2.73 |
% |
|
|
2.17 |
% |
|
|
4.21 |
% |
|
|
2.00 |
% |
|
|
3.78 |
% |
|
Total cost of interest-bearing
liabilities |
|
0.30 |
% |
|
|
0.34 |
% |
|
|
0.67 |
% |
|
|
0.40 |
% |
|
|
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Spread (7) |
|
3.16 |
% |
|
|
3.29 |
% |
|
|
3.89 |
% |
|
|
3.27 |
% |
|
|
4.04 |
% |
|
Net interest margin |
|
3.26 |
% |
|
|
3.40 |
% |
|
|
4.10 |
% |
|
|
3.41 |
% |
|
|
4.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (2) |
$ |
0.15 |
|
|
$ |
0.18 |
|
|
$ |
0.13 |
|
|
$ |
0.47 |
|
|
$ |
0.69 |
|
|
Diluted earnings per share (3) |
|
0.15 |
|
|
|
0.18 |
|
|
|
0.13 |
|
|
|
0.47 |
|
|
|
0.69 |
|
|
Book value per share (5) |
|
6.78 |
|
|
|
6.80 |
|
|
|
6.60 |
|
|
|
6.78 |
|
|
|
6.60 |
|
|
Tangible book value per share (5) (non-GAAP) |
|
5.54 |
|
|
|
5.56 |
|
|
|
5.37 |
|
|
|
5.54 |
|
|
|
5.37 |
|
|
Market price per share: |
|
|
|
|
|
|
|
|
|
|
High for the period |
$ |
7.58 |
|
|
$ |
5.72 |
|
|
$ |
8.20 |
|
|
$ |
7.58 |
|
|
$ |
8.55 |
|
|
Low for the period |
|
5.12 |
|
|
|
4.21 |
|
|
|
4.47 |
|
|
|
3.82 |
|
|
|
4.47 |
|
|
Close for period end |
|
6.93 |
|
|
|
5.26 |
|
|
|
5.01 |
|
|
|
6.93 |
|
|
|
5.01 |
|
|
Cash dividends declared per share |
|
0.0500 |
|
|
|
0.0500 |
|
|
|
0.0500 |
|
|
|
0.2000 |
|
|
|
0.1900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic (2) |
|
22,346,368 |
|
|
|
22,320,699 |
|
|
|
22,725,204 |
|
|
|
22,296,195 |
|
|
|
22,707,624 |
|
|
Diluted (3) |
|
22,361,730 |
|
|
|
22,337,644 |
|
|
|
22,751,272 |
|
|
|
22,312,831 |
|
|
|
22,744,045 |
|
|
(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 |
Riverview Bancorp (NASDAQ:RVSB)
Historical Stock Chart
From Apr 2024 to May 2024
Riverview Bancorp (NASDAQ:RVSB)
Historical Stock Chart
From May 2023 to May 2024