VANCOUVER, Wash., Oct. 26, 2010 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. ("Riverview" or the "Company") (Nasdaq:RVSB), the parent company of Riverview Community Bank ("Bank"), today reported that net income increased to $1.1 million, or $0.06 per diluted share, for the second fiscal quarter ended September 30, 2010, compared to $202,000, or $0.02 per diluted share, for the second fiscal quarter a year ago. For the first six months of fiscal 2011 net income increased to $2.9 million, or $0.20 per diluted share, compared to $545,000, or $0.05 per diluted share, for the first six months of fiscal 2010.
"Riverview's second quarter was highlighted by a successful capital raise and continued strong operating performance," said Pat Sheaffer, Chairman and CEO. "We posted profits for the second consecutive quarter and have continued to see meaningful improvements throughout the Bank during the first half of fiscal 2011. While credit costs remained elevated, we are seeing signs of a return to normalcy from an operating perspective."
Common Stock OfferingDuring the second fiscal quarter, the Company successfully raised $18.9 million in net proceeds through an underwritten public offering. The Company issued 11.5 million shares of its common stock, including 1.5 million shares pursuant to the underwriter's over-allotment option. "The successful completion of this offering increased our already-strong capital and liquidity levels and further enhanced the Bank's ability to respond to the banking needs in our communities," added Sheaffer. "To help in accomplishing our goals, we have also hired additional talented and experienced bankers. Together with our existing team, we are looking for opportunities to attract new customers and grow our existing franchise." Second Quarter Fiscal 2011 Highlights (at or for the period ended September 30, 2010)
- Net income of $1.1 million, or $0.06 per diluted share.
- Completed capital offering and raised $18.9 million in net proceeds.
- Improved capital levels - total risk-based capital ratio of 14.07%, significantly above the 10.00% minimum for "well-capitalized" designation.
- Net interest margin remains strong at 4.46%.
- Average deposit balances increased $16.8 million compared to prior quarter.
- Non-performing assets were 6.42% of total assets.
- Allowance for loan losses was 2.72% of total loans and 53.84% of non-performing loans.
- Reduced concentration in land development and speculative construction loans by $9.4 million during the quarter. These two segments accounted for 12.4% of the total loan portfolio at September 30, 2010.