Riverview Bancorp Earns $801,000 In Third Fiscal Quarter, Posting Its Sixth Consecutive Quarter Of Profitability

VANCOUVER, Wash., Jan. 30, 2014 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB) ("Riverview" or the "Company") today reported net income of $801,000, or $0.04 per diluted share, in the third fiscal quarter ended December 31, 2013, compared to $341,000, or $0.02 per diluted share, in the preceding quarter and $1.0 million, or $0.05 per diluted share, in the third fiscal quarter a year ago. In the first nine months of fiscal year 2014, net income increased 168% to $2.8 million, or $0.12 per diluted share, compared to $1.0 million, or $0.05 per diluted share, in the first nine months of fiscal year 2013.

"Our third quarter profits continue to demonstrate the strength of our franchise and the success of our turnaround plan," stated Pat Sheaffer, Chairman and CEO. "The steady economic recovery in Southwest Washington contributed to strong improvements in credit quality, with net recoveries totaling $352,000 in the third quarter of fiscal 2014. We have continued to make meaningful progress in reducing our nonperforming and classified assets and we are excited to be celebrating our sixth consecutive profitable quarter. As the last remaining community bank headquartered in Southwest Washington, we look forward to the future with confidence as we continue to create value for our shareholders by developing strong relationships with our customers, communities and employees."

Third Quarter Highlights (at or for the period ended December 31, 2013)
  • Net income was $801,000, or $0.04 per diluted share.
  • Classified assets decreased $3.9 million during the quarter to $54.7 million (6.6% decline).
  • Net loan recoveries for the third quarter totaled $352,000 compared to net charge-offs of $507,000 in the third quarter a year ago.
  • Nonperforming asset balances decreased during the quarter $4.3 million, or 14.6%. During the last 12 months, NPAs have declined by $20.0 million, or 44.2%.
  • Total deposits increased $16.5 million to $689.3 million at December 31, 2013 compared to prior quarter.
  • Capital levels increased with a total risk-based capital ratio of 16.76% and Tier 1 leverage ratio of 10.42%.

Balance Sheet Review

"The current economic outlook in Southwest Washington and Portland is improving, and we are seeing encouraging signs in our market," Sheaffer noted. "Our general business outlook continues to get better as the economic recovery gains strength. Loan demand is strengthening and our loan pipeline has continued to grow over the last several quarters."

Riverview added several new lenders to its two existing lending teams during the past quarter. "The addition of these new lenders allows us to put additional resources in the communities we serve and get in front of more potential customers," said Sheaffer. "We have built a solid foundation to continue to grow our loan portfolio in the coming year.  Our lending teams continue to do a good job of serving our existing clients and bringing new relationships to the bank."

During the third quarter loan originations increased 52% compared to the preceding quarter. However, several large loan payoffs during the quarter, as well as reductions in classified and nonperforming loan balances led to a modest decline in net loans compared to the prior quarter end. 

Loan originations totaled $41.0 million during the quarter compared to $27.5 million in preceding quarter.  Net loans decreased $3.8 million during the quarter to $505.6 million at December 31, 2013 compared to $509.4 million at September 30, 2013. In addition, Riverview purchased $7.6 million in a pool of automobile loans during the quarter. 

Total deposits increased to $689.3 million at December 31, 2013, compared to $672.8 million three months earlier and $682.8 million a year earlier.

"Our increase in deposits came from customers in our retail branch network, primarily checking accounts which increased $11.8 million in total or 5.6%," noted Sheaffer. "Competition from the regional and national banks as well as smaller local institutions in our market place remains strong. We continue to work aggressively to cultivate existing bank relationships while also marketing to new customers." 

As of December 31, 2013, interest checking accounts represent 14.4% and non-interest checking represent 17.9% of the total deposit portfolio. Riverview had no brokered CDs at December 31, 2013.

Shareholders' equity improved to $81.3 million at quarter-end, compared to $81.0 million three months earlier and $76.8 million a year earlier. Tangible book value per share improved to $2.46 per share at December 31, 2013, compared to $2.45 per share at September 30, 2013, and $2.26 per share a year ago.

Credit Quality

Classified assets decreased $3.9 million during the quarter to $54.7 million at December 31, 2013 compared to $58.6 million at September 30, 2013 and $85.7 million at December 31, 2012. The classified asset to total capital ratio decreased to 57.6% at December 31, 2013.

"Our loan portfolio continues to perform well, with asset quality improving for the seventh consecutive quarter," said Ron Wysaske, President and COO. "Total nonperforming loans are down 46% from a year ago. Asset quality remains a top priority for Riverview and we expect these totals will continue to improve during this coming year." 

Nonperforming loans decreased $2.8 million during the third quarter to $13.4 million, or 2.57% of total loans, at December 31, 2013, compared to $16.2 million, or 3.09% of total loans three months earlier. REO sales totaled $3.4 million with write-downs of $167,000 and additions of $2.1 million for the third quarter of fiscal 2014. These sales included the sale of a $3.3 million REO property in Redmond, Oregon.

Riverview recorded no provision for loan losses during the third quarter, the same as in the preceding quarter. In the first nine months of fiscal year 2014, Riverview recorded a $2.5 million recapture of loan losses compared to a $4.5 million provision for loan losses in the first nine months of fiscal year 2013. The decrease in required loan loss provision is a result of the continued improvement in asset quality and the lower level of classified loans. The allowance for loan losses totaled $14.0 million at December 31, 2013, representing 2.70% of total loans and 105.02% of nonperforming loans.

Riverview recorded a net recovery of $352,000 in the third quarter compared to net loan charge-offs of $1,000 in the preceding quarter. In the first nine months of fiscal 2014, Riverview had net recoveries totaling $905,000 compared to net charge-offs of $4.8 million in the first nine months of fiscal year 2013. 

Income Statement

Riverview's third quarter net interest income was $6.0 million compared to $6.1 million in the preceding quarter and $7.4 million in the third quarter a year ago. In the first nine months of fiscal 2014, the net interest income was $18.3 million compared to $23.2 million in the same period a year earlier.

"The increase in cash balances compared to a year ago continues to put pressure on our net interest margin, which declined modestly compared to three months earlier," noted Wysaske. "Additionally, our margin has continued to contract due to the repricing of loans in the portfolio due to the continued low interest rates. We have deployed over $45 million of cash into our investment portfolio over the last nine months in order to help offset some of the impact of this low interest rate environment. We expect that our margin will remain under pressure until interest rates increase."

Riverview's net interest margin was 3.29% in the fiscal third quarter compared to 3.37% for the preceding quarter and 4.03% in the fiscal third quarter a year ago. In the first nine months of the fiscal year Riverview's net interest margin was 3.39% compared to 4.19% in the same period a year earlier.

Non-interest income increased to $2.4 million in the third quarter compared to $1.9 million in the preceding quarter and $2.1 million in the third quarter a year ago. Asset management fees increased to $605,000 during the quarter compared to $517,000 in the same quarter a year ago as a result of an increase in assets under management at Riverview's asset management company.  In the first nine months of fiscal 2014, non-interest income was $6.5 million compared to $6.8 million in the same period a year earlier.

Non-interest expense was $7.6 million in the third quarter of fiscal 2014, unchanged from the preceding quarter. Non-interest expense was $8.4 million in the third quarter of fiscal 2013. The primary driver in decrease from prior year was a reduction in REO expenses. REO expenses decreased to $298,000 in the third quarter of fiscal 2014 compared to $1.1 million in the same quarter a year ago.  Year-to-date non-interest expense was $24.5 million, which was unchanged from the first nine months of fiscal 2013.   

Capital and Liquidity

Riverview continues to maintain capital levels in excess of the regulatory requirements to be categorized as "well capitalized" with a total risk-based capital ratio of 16.76%, Tier 1 leverage ratio of 10.42% and tangible common equity to tangible assets of 7.10% at December 31, 2013. 

As of December 31, 2013, the Bank had available total and contingent liquidity of more than $500 million, representing 62% of total assets. Included in the Bank's total liquidity was more than $175 million of cash and short-term investments.

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. Riverview believes that certain non-GAAP financial measures provide investors with information useful in understanding the company's financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Riverview provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible common equity is calculated as shareholders' equity less goodwill and other intangible assets. In addition, tangible assets are total assets less goodwill and other intangible assets.

The following table provides a reconciliation of ending shareholders' equity (GAAP) to ending tangible shareholders' equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).
(Dollars in thousands) December 31, 2013 September 30, 2013 December 31, 2012 March 31, 2013
         
Shareholders' equity  $ 81,264  $ 80,968  $ 76,823  $ 78,442
Goodwill  25,572  25,572  25,572  25,572
Other intangible assets, net  419  427  489  454
Tangible shareholders' equity  $ 55,273  $ 54,969  $ 50,762  $ 52,416
         
Total assets  $ 804,949  $ 788,878  $ 794,564  $ 777,003
Goodwill  25,572  25,572  25,572  25,572
Other intangible assets, net  419  427  489  454
Tangible assets  $ 778,958  $ 762,879  $ 768,503  $ 750,977

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 $805 million, it is the parent company of the 90 year-old Riverview Community Bank, as well as Riverview Asset Management Corp. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers. There are 18 branches, including thirteen in the Portland-Vancouver area and three lending centers.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to: the Company's ability to raise common capital; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company's allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in general economic conditions, either nationally or in the Company's market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, the Company's net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company's market areas; secondary market conditions for loans and the Company's ability to sell loans in the secondary market; results of examinations of us by the Office of Comptroller of the Currency or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase the Company's reserve for loan losses, write-down assets, change Riverview Community Bank's regulatory capital position or affect the Company's ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; the Company's compliance with regulatory enforcement actions we have entered into with the OCC and the possibility that our noncompliance could result in the imposition of additional enforcement actions and additional requirements or restrictions on our operations; legislative or regulatory changes that adversely affect the Company's business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company's ability to attract and retain deposits; further increases in premiums for deposit insurance; the Company's ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company's assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company's balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company's workforce and potential associated charges; computer systems on which the Company depends could fail or experience a security breach; the Company's ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company's ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may in the future acquire into its operations and the Company's ability to realize related revenue synergies and cost savings within expected time frames and any goodwill charges related thereto; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company's ability to pay dividends on its common stock; and interest or principal payments on its junior subordinated debentures; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; other economic, competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products and services and the other risks described from time to time in our filings with the SEC.

Such forward-looking statements may include projections. Any such projections were not prepared in accordance with published guidelines of the American Institute of Certified Public Accountants or the Securities Exchange Commission regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2014 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) December 31, 2013 September 30, 2013 December 31, 2012 March 31, 2013
ASSETS        
         
Cash (including interest-earning accounts of $110,104, $99,955, $88,308 and $100,093)  $ 123,140  $ 114,337  $ 107,080  $ 115,415
Certificate of deposits  37,174  37,920  44,137  44,635
Loans held for sale  148  1,571  2,551  831
Investment securities available for sale, at fair value  19,794  21,899  6,204  6,216
Mortgage-backed securities held to maturity, at amortized  104  108  129  125
Mortgage-backed securities available for sale, at fair value  34,529  17,706  549  431
Loans receivable (net of allowance for loan losses of $14,048, $13,696, $19,633, and $15,643)  505,632  509,447  539,549  520,369
Real estate and other pers. property owned  11,951  13,481  20,698  15,638
Prepaid expenses and other assets  3,268  3,141  3,399  3,063
Accrued interest receivable  1,670  1,659  1,818  1,747
Federal Home Loan Bank stock, at cost  6,958  7,023  7,219  7,154
Premises and equipment, net  16,685  16,895  17,647  17,693
Deferred income taxes, net  348  271  527  522
Mortgage servicing rights, net  386  388  406  388
Goodwill  25,572  25,572  25,572  25,572
Core deposit intangible, net  33  39  83  66
Bank owned life insurance  17,557  17,421  16,996  17,138
         
TOTAL ASSETS  $ 804,949  $ 788,878  $ 794,564  $ 777,003
         
LIABILITIES AND EQUITY        
         
LIABILITIES:        
Deposit accounts  $ 689,271  $ 672,806  $ 682,794  $ 663,806
Accrued expenses and other liabilities  8,707  8,887  8,700  8,006
Advance payments by borrowers for taxes and insurance  193  486  520  1,025
Junior subordinated debentures  22,681  22,681  22,681  22,681
Capital lease obligation  2,381  2,401  2,458  2,440
Total liabilities  723,233  707,261  717,153  697,958
         
EQUITY:        
Shareholders' equity        
Serial preferred stock, $.01 par value; 250,000 authorized, issued and outstanding, none  --   --   --   -- 
Common stock, $.01 par value; 50,000,000 authorized, December 31, 2013 - 22,471,890 issued and outstanding; September 30, 2013 - 22,471,890 issued and outstanding; December 31, 2012 - 22,471,890 issued and outstanding; March 31, 2013 – 22,471,890 issued and outstanding  225  225  225  225
Additional paid-in capital  65,176  65,557  65,563  65,551
Retained earnings  16,951  16,150  12,574  14,169
Unearned shares issued to employee stock ownership trust  (413)  (438)  (516)  (490)
Accumulated other comprehensive loss  (675)  (526)  (1,023)  (1,013)
Total shareholders' equity  81,264  80,968  76,823  78,442
         
Noncontrolling interest  452  649  588  603
Total equity  81,716  81,617  77,411  79,045
         
TOTAL LIABILITIES AND EQUITY  $ 804,949  $ 788,878  $ 794,564  $ 777,003
           
           
RIVERVIEW BANCORP, INC. AND SUBSIDIARY          
Consolidated Statements of Income          
  Three Months Ended Nine Months Ended
(In thousands, except share data) (Unaudited) Dec. 31, 2013 Sept. 30, 2013 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2012
INTEREST INCOME:          
Interest and fees on loans receivable  $ 6,319  $ 6,465  $ 7,838  $ 19,389  $ 25,351
Interest on investment securities-taxable  75  77  131  191  222
Interest on investment securities-non taxable  --  --  1  --  16
Interest on mortgage-backed securities  88  52  6  156  21
Other interest and dividends  191  170  160  532  417
Total interest income  6,673  6,764  8,136  20,268  26,027
           
INTEREST EXPENSE:          
Interest on deposits  496  514  595  1,537  2,117
Interest on borrowings  149  150  157  449  668
Total interest expense  645  664  752  1,986  2,785
Net interest income  6,028  6,100  7,384  18,282  23,242
Less provision for (recapture of) loan losses  --  --  --  (2,500)  4,500
           
Net interest income after provision for loan losses  6,028  6,100  7,384  20,782  18,742
           
NON-INTEREST INCOME:          
Fees and service charges  1,177  1,094  1,224  3,301  3,612
Asset management fees  605  595  517  1,936  1,625
Gain on sale of loans held for sale  176  116  262  609  1,141
Bank owned life insurance income  136  141  146  419  443
Other  290  (59)  (62)  252  20
Total non-interest income  2,384  1,887  2,087  6,517  6,841
           
NON-INTEREST EXPENSE:          
Salaries and employee benefits  3,959  3,867  3,872  11,696  11,274
Occupancy and depreciation  1,187  1,190  1,241  3,621  3,711
Data processing  523  430  435  1,641  1,041
Amortization of core deposit intangible  7  9  17  33  54
Advertising and marketing expense  170  204  193  578  681
FDIC insurance premium  400  417  433  1,228  1,114
State and local taxes  106  108  132  340  417
Telecommunications  78  81  73  227  310
Professional fees  342  315  447  995  1,149
Real estate owned expenses  298  492  1,069  2,402  2,899
Other  541  534  522  1,740  1,872
Total non-interest expense  7,611  7,647  8,434  24,501  24,522
           
INCOME BEFORE INCOME TAXES  801  340  1,037  2,798  1,061
PROVISION (BENEFIT) FOR INCOME TAXES  --  (1)  6  16  23
NET INCOME  $ 801  $ 341  $ 1,031  $ 2,782  $ 1,038
           
Earnings per common share:          
Basic  $ 0.04  $ 0.02  $ 0.05  $ 0.12  $ 0.05
Diluted  $ 0.04  $ 0.02  $ 0.05  $ 0.12  $ 0.05
Weighted average number of shares outstanding:          
Basic 22,370,277 22,364,120 22,345,644 22,364,142 22,339,509
Diluted 22,371,914 22,365,460 22,345,644 22,365,224 22,339,509
     
     
(Dollars in thousands) At or for the three months ended At or for the nine months ended
  Dec. 31, 2013 Sept. 30, 2013 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2012
AVERAGE BALANCES          
Average interest–earning assets  $ 727,943  $ 718,118  $ 727,322  $ 716,374  $ 737,358
Average interest-bearing liabilities 581,327 574,990 579,653 574,879 602,293
Net average earning assets 146,616  143,128 147,669 141,495 135,065
Average loans 516,864 525,490 574,617 524,569 617,067
Average deposits 680,167 670,820 694,073 669,419 708,622
Average equity 82,665 81,906 77,838 81,528 76,777
Average tangible equity 56,667 55,884 51,759 55,514 51,778
           
           
ASSET QUALITY Dec. 31, 2013 Sept. 30, 2013 Dec. 31, 2012    
           
Non-performing loans 13,377 16,175 24,665    
Non-performing loans to total loans 2.57% 3.09% 4.41%    
Real estate/repossessed assets owned 11,951 13,481 20,698    
Non-performing assets 25,328 29,656 45,363    
Non-performing assets to total assets 3.15% 3.76% 5.71%    
Net loan charge-offs (recoveries) in the quarter (352) 1 507    
Net charge-offs (recoveries) in the quarter/average net loans -0.27% 0.00% 0.35%    
           
Allowance for loan losses 14,048 13,696 19,633    
Average interest-earning assets to average interest-bearing liabilities 125.22% 124.89% 125.48%    
Allowance for loan losses to non-performing loans 105.02% 84.67% 79.60%    
Allowance for loan losses to total loans 2.70% 2.62% 3.51%    
Shareholders' equity to assets 10.10% 10.26% 9.67%    
           
           
CAPITAL RATIOS          
Total capital (to risk weighted assets) 16.76% 16.03% 14.25%    
Tier 1 capital (to risk weighted assets) 15.49% 14.76% 12.97%    
Tier 1 capital (to leverage assets) 10.42% 10.20% 9.50%    
Tangible common equity (to tangible assets) 7.10% 7.21% 6.61%    
           
           
DEPOSIT MIX Dec. 31, 2013 Sept. 30, 2013 Dec. 31, 2012 March 31, 2013  
           
Interest checking  $ 99,374  $ 93,117  $ 87,402  $ 91,754  
Regular savings  63,230  60,862  51,000  54,316  
Money market deposit accounts  233,581  225,921  220,862  217,091  
Non-interest checking  123,630  118,101  128,706  112,527  
Certificates of deposit  169,456  174,805  194,824  188,118  
Total deposits  $ 689,271  $ 672,806  $ 682,794  $ 663,806  
           
     
COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS    
         
  Commercial Commercial Real Estate Mortgage Real Estate Construction Commercial  & Construction Total
December 31, 2013 (Dollars in thousands)
Commercial   $ 69,659  $ --  $ --  $ 69,659
Commercial construction  --  --  10,573  10,573
Office buildings  --  83,165  --  83,165
Warehouse/industrial  --  44,900  --  44,900
Retail/shopping centers/strip malls  --  63,963  --  63,963
Assisted living facilities  --  7,622  --  7,622
Single purpose facilities  --  93,276  --  93,276
Land  --  16,004  --  16,004
Multi-family  --  23,443  --  23,443
One-to-four family  --  --  4,468  4,468
Total  $ 69,659  $ 332,373  $ 15,041  $ 417,073
         
March 31, 2013 (Dollars in thousands)
Commercial   $ 71,935  $ --  $ --  $ 71,935
Commercial construction  --  --  5,719  5,719
Office buildings  --  86,751  --  86,751
Warehouse/industrial  --  41,124  --  41,124
Retail/shopping centers/strip malls  --  67,472  --  67,472
Assisted living facilities  --  13,146  --  13,146
Single purpose facilities  --  89,198  --  89,198
Land  --  23,404  --  23,404
Multi-family  --  34,302  --  34,302
One-to-four family  --  --  3,956  3,956
Total  $ 71,935  $ 355,397  $ 9,675  $ 437,007
         
         
LOAN MIX Dec. 31, 2013 Sept. 30, 2013 Dec. 31, 2012 March 31, 2013
Commercial and construction        
Commercial   $ 69,659  $ 70,510  $ 75,090  $ 71,935
Other real estate mortgage  332,373  348,257  367,158  355,397
Real estate construction  15,041  11,850  17,615  9,675
Total commercial and construction  417,073  430,617  459,863  437,007
Consumer        
Real estate one-to-four family  93,026  90,550  97,334  97,140
Other installment  9,581  1,976  1,985  1,865
Total consumer  102,607  92,526  99,319  99,005
         
Total loans   519,680  523,143  559,182  536,012
         
Less:        
Allowance for loan losses  14,048  13,696  19,633  15,643
Loans receivable, net  $ 505,632  $ 509,447  $ 539,549  $ 520,369
 
 
DETAIL OF NON-PERFORMING ASSETS
           
  Northwest Oregon Other Oregon Southwest Washington Other Washington Total
December 31, 2013 (dollars in thousands)
Non-performing assets          
           
Commercial  $ --  $ --  $ 461  $ --  $ 461
Commercial real estate  1,806  --  5,401  123  7,330
Land  418  800  --  --  1,218
Multi-family  2,065  --  --  --  2,065
Real estate one-to-four family  402  --  1,608  293  2,303
Total non-performing loans  4,691  800  7,470  416  13,377
           
REO  --  542  9,471  1,938  11,951
           
Total non-performing assets  $ 4,691  $ 1,342  $ 16,941  $ 2,354  $ 25,328
           
           
DETAIL OF SPEC CONSTRUCTION AND LAND DEVELOPMENT LOANS 
           
  Northwest Oregon Other Oregon Southwest Washington Other Washington Total
December 31, 2013 (dollars in thousands)
Land and Spec Construction Loans          
           
Land Development Loans  $ 3,120  $ 1,193  $ 11,691  $ --  $ 16,004
Spec Construction Loans  --  --  4,286  --  4,286
           
Total Land and Spec Construction  $ 3,120  $ 1,193  $ 15,977  $ --  $ 20,290
     
     
   At or for the three months ended At or for the nine months ended
SELECTED OPERATING DATA Dec. 31, 2013 Sept. 30, 2013 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2012
           
Efficiency ratio (4) 90.48% 95.74% 89.05% 98.80% 81.51%
Coverage ratio (6) 79.20% 79.77% 87.55% 74.62% 94.78%
Return on average assets (1) 0.40% 0.17% 0.51% 0.47% 0.17%
Return on average equity (1) 3.84% 1.65% 5.25% 4.53% 1.79%
           
NET INTEREST SPREAD          
Yield on loans 4.85% 4.88% 5.41% 4.91% 5.45%
Yield on investment securities 1.46% 1.57% 6.33% 1.50% 3.86%
Total yield on interest earning assets 3.64% 3.74% 4.44% 3.76% 4.69%
           
Cost of interest bearing deposits 0.35% 0.37% 0.43% 0.37% 0.49%
Cost of FHLB advances and other borrowings 2.36% 2.37% 2.47% 2.37% 3.52%
Total cost of interest bearing liabilities 0.44% 0.46% 0.51% 0.46% 0.61%
           
Spread (7) 3.20% 3.28% 3.93% 3.30% 4.08%
Net interest margin 3.29% 3.37% 4.03% 3.39% 4.19%
           
PER SHARE DATA          
Basic earnings per share (2)  $ 0.04  $ 0.02  $ 0.05  $ 0.12  $ 0.05
Diluted earnings per share (3)  $ 0.04  $ 0.02  $ 0.05  $ 0.12  $ 0.05
Book value per share (5)  3.62  3.60  3.42  3.62  3.42
Tangible book value per share (5)  2.46  2.45  2.26  2.46  2.26
Market price per share:          
High for the period  $ 2.98  $ 2.96  $ 1.99  $ 2.98  $ 2.29
Low for the period  2.51  2.42  1.41  2.27  1.08
Close for period end  2.90  2.63  1.69  2.90  1.69
Cash dividends declared per share  --   --   --   --   -- 
           
Average number of shares outstanding:          
Basic (2) 22,370,277 22,364,120 22,345,644 22,364,142 22,339,509
Diluted (3) 22,371,914 22,365,460 22,345,644 22,365,224 22,339,509
 
(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: Pat Sheaffer or Ron Wysaske,         Riverview Bancorp, Inc. 360-693-6650

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