VANCOUVER, Wash., July 15, 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 $1.8 million, or $0.16 per diluted share, for the first fiscal quarter ended June 30, 2010, compared to $343,000, or $0.03 per diluted share, for the first quarter a year ago. Riverview's results for the quarter were highlighted by improvements in net interest margin, deposit growth, increasing capital levels and improved credit metrics.

"We are extremely pleased by the positive results of our first fiscal quarter," said Pat Sheaffer, Chairman and CEO. "We have seen improvements across all areas of the bank during the first quarter and we continue to benefit from our strong core earnings and improving asset quality. Our net interest income and non-interest income both increased while our provision for loan losses and non-interest expenses decreased compared to the preceding quarter. Our non-performing assets declined for the second consecutive quarter and remain at a manageable level."

First Quarter Fiscal 2011 Highlights (at or for the period ended June 30, 2010)
  • Net income of $1.8 million, or $0.16 per diluted share.
  • Capital levels remain strong - total risk-based capital ratio is 12.61%, significantly above the "well-capitalized" designation.
  • Net interest margin improved 25 basis points to 4.79% compared to the preceding quarter.
  • Non-performing assets decreased to 5.54% of total assets at June 30, 2010, compared to 5.89% of total assets at March 31, 2010, the second consecutive quarter of declining balances.
  • Allowance for loan losses was 2.73% of total loans and 59.37% of non-performing loans.
  • Total deposits increased $27.5 million during the quarter.
  • Reduced concentration in land development and speculative construction loans by $9.0 million during the quarter. These two segments accounted for 13.4% of the total loan portfolio at June 30, 2010.

Credit Quality

"Real estate valuations appear to have stabilized based on new appraisals received during the first quarter," said Dave Dahlstrom, EVP and Chief Credit Officer. "We have aggressively recognized our problem credits and we remain focused on mitigating future losses in our portfolio. Charge-offs during the quarter exceeded the quarterly increase in the provision expense, as we charged-off loans that the Company reserved for during prior quarters." For the first quarter ended June 30, 2010, the provision for loan losses was $1.3 million compared to $3.4 million in net charge-offs.