Riverview Bancorp Earnings Increase To $3.1 Million In Second Fiscal Quarter 2018; Results Highlighted By Strong Net Interest Income And Improved Operating Efficiencies

VANCOUVER, Wash., Oct. 26, 2017 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB) ("Riverview" or the "Company") today reported net income increased to $3.1 million, or $0.14 per diluted share, in the second fiscal quarter ended September 30, 2017, compared to $2.7 million, or $0.12 per diluted share, in the preceding quarter and $1.7 million, or $0.07 per diluted share, in the second fiscal quarter ended September 30, 2016. 

In the first six months of fiscal year 2018, Riverview's earnings increased to $5.7 million, or $0.25 per diluted share, compared to $3.4 million, or $0.15 per diluted share, in the first six months of fiscal year 2017.

"Solid revenue growth combined with improving operating efficiencies contributed to a profitable second quarter," stated Pat Sheaffer, chairman and chief executive officer. "We are proud of our entire team for their hard work and dedication to growing the Company. Without their efforts none of this would be possible. This positions us well for continued growth in the Portland-Vancouver market over the next fiscal year."

Second Quarter Highlights (at or for the period ended September 30, 2017)
  • Net income grew to $3.1 million, or $0.14 per diluted share.
  • Net interest margin (NIM) expanded by 33 basis points to 4.03% compared to the second quarter a year ago.
  • Total loans were $783.7 million at September 30, 2017.
  • Non-performing assets were 0.27% of total assets.
  • Tangible book value per share improved to $3.93.
  • Total risk-based capital ratio was 15.07% and Tier 1 leverage ratio was 9.75%.
  • Efficiency ratio improved to 65.2%.
  • Declared quarterly cash dividend of $0.0225 per share, generating a current dividend yield of 1.07%.

Income Statement

Riverview's net interest income increased $2.6 million, or 33%, to $10.7 million for the second fiscal quarter of 2018 compared to $8.1 million in the second fiscal quarter a year ago, and increased $292,000, or 3%, compared to $10.4 million in the preceding quarter. The increase in net interest income was primarily due to a rise in interest and fees on loans as a result of the average balance growth of our outstanding loans and an increase in our loan yield. In the first six months of fiscal 2018, net interest income increased $5.3 million to $21.2 million compared to $15.9 million in the first six months of fiscal 2017.

"Our net interest margin compressed six basis points in the second quarter of fiscal 2018 compared to the prior linked quarter, reflecting our higher balance of cash and liquid assets," said Kevin Lycklama, executive vice president and chief operating officer. "The prior linked quarter also included the collection of $104,000 of nonaccrual interest income which contributed four basis points to our prior quarter's NIM." The interest accretion on purchased loans totaled $273,000 and resulted in an 10 basis point increase in our NIM during the second fiscal quarter. Year-to-date, the NIM increased 34 basis points to 4.06% compared to 3.72% in the first six months of fiscal 2017.

Non-interest income was $2.7 million in the second fiscal quarter, which was the same as in the preceding quarter. Non-interest income increased $132,000 compared to $2.6 million in the second quarter a year ago. In the first six months of fiscal 2018, non-interest income increased to $5.5 million compared to $5.1 million in the first six months of fiscal 2017. The year over year increase was primarily due to continued organic growth as well as an increase in fees and service charges and asset management fees. The increase in fees and service charges was primarily due to the collection of $113,000 in loan prepayment penalties and an increase of $128,000 in debit interchange income. Other non-interest income decreased during the three and six months ended September 30, 2017 compared to the same prior year period due to $407,000 of income from a BOLI claim which was offset by a $132,000 impairment charge on an investment security during the prior year period.

Asset management fees were $818,000 in the second fiscal quarter of 2018 compared to $853,000 in the preceding quarter and $727,000 in the same quarter a year ago. Riverview Trust Company's ("RTC") assets under management increased to $461.2 million at September 30, 2017 compared to $440.5 million three months earlier and $401.2 million a year earlier. During the fourth quarter of fiscal 2017, RTC opened a second office in the Portland suburb of Lake Oswego, expanding its footprint and product offerings in the Portland market.  

Non-interest expense decreased $415,000 to $8.8 million during the second fiscal quarter of 2018 compared to $9.2 million in the preceding quarter and increased $362,000 from $8.4 million for the same prior year period. The efficiency ratio improved to 65.2% for the quarter ended September 30, 2017 compared to 69.7% in the preceding quarter. Second quarter fiscal 2018 operating expenses included $177,000 in transaction-related expenses in connection with the MBank purchase compared to $429,000 in the preceding quarter. "We have continued to see improvements in our profitability and performance ratios as we realize the expected cost savings and operating efficiencies from this transaction," said Lycklama.

Balance Sheet Review

With several large loan payoffs during the quarter, total loans decreased $13.8 million during the quarter to $783.7 million at September 30, 2017 compared to $797.5 million at June 30, 2017. Undisbursed construction loans totaled $64.1 million at September 30, 2017, with the majority of the undisbursed construction loans expected to fund over the next several quarters. The commercial loan pipeline totaled $47.7 million at the end of the quarter.

Total deposits increased $16.8 million to $990.3 million at September 30, 2017 compared to $973.5 million at June 30, 2017. Checking account balances accounted for $16.2 million of the gain and grew to 45.0% of total deposits compared to 44.2% a year ago.

Shareholders' equity was $116.7 million at September 30, 2017 compared to $113.9 million three months earlier and $111.0 million a year earlier. Tangible book value per share was $3.93 at September 30, 2017 compared to $3.80 at June 30, 2017, and $3.79 at September 30, 2016. A quarterly cash dividend of $0.0225 per share was paid on October 24, 2017.

Credit Quality

Riverview's classified assets totaled $7.1 million at September 30, 2017 compared to $8.8 million three months earlier. At September 30, 2017, the classified asset to total capital ratio was 6.0% compared to 7.5% three months earlier.

Non-performing loans were $2.7 million, or 0.35% of total loans, at September 30, 2017 compared to $2.8 million, or 0.35% of total loans, three months earlier. REO balances were $298,000 at September 30, 2017 unchanged compared to the preceding quarter.

The allowance for loan losses totaled $10.6 million, representing 1.35% of total loans at September 30, 2017 compared to 1.33% of total loans at June 30, 2017. 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 at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $2.6 million at September 30, 2017 compared to $2.8 million in the prior quarter. Net loan recoveries were $20,000 during the second fiscal quarter of 2018 compared to $69,000 in the preceding quarter.

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 15.07%, Tier 1 leverage ratio of 9.75% and tangible common equity to tangible assets ratio of 7.90% at September 30, 2017.

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. We believe 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 total assets (GAAP) to ending tangible assets (non-GAAP).

                       
(Dollars in thousands)   September 30,2017   June 30, 2017   September 30,2016   March 31, 2017
                 
Shareholders' equity   $   116,742   $   113,917   $   110,986   $   111,264
Goodwill       27,076       27,076       25,572       27,076
Core deposit intangible, net       1,219       1,277       -       1,335
 
Tangible shareholders' equity      $   88,447   $   85,564   $   85,414   $   82,853
                 
Total assets   $   1,147,680   $   1,125,161   $   984,045   $   1,133,939
Goodwill       27,076       27,076       25,572       27,076
Core deposit intangible, net       1,219       1,277       -       1,335
 
Tangible assets   $   1,119,385   $   1,096,808   $   958,473   $   1,105,528
                 

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 $1.15 billion at September 30, 2017, it is the parent company of the 94-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 customers. There are 19 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 4 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, The Columbian and The Gresham Outlook.

"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: expected cost savings, synergies and other financial benefits from our pending purchase of certain assets and assumption of certain liabilities of MBank and Merchants Bancorp pursuant to the Purchase and Assumption Agreement (the "Agreement") with Merchants Bancorp and its wholly owned subsidiary MBank (the "transaction") might not be realized within the expected time frames or at all, and costs or difficulties relating to integration matters might be greater than expected; the requisite approval of Merchants Bancorp's shareholders and regulatory approvals for the transaction might not be obtained; 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 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 2018 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) September 30, 2017   June 30, 2017   September 30, 2016   March 31, 2017
ASSETS  
   
Cash (including interest-earning accounts of $59,315, $14,919, $   76,245     $   34,108     $   93,007     $   64,613  
$77,509 and $46,245)              
Certificate of deposits held for investment     9,797         11,042         15,275         11,042  
Loans held for sale     347         768         991         478  
Investment securities:              
Available for sale, at estimated fair value     200,584         205,012         152,251         200,214  
Held to maturity, at amortized cost     46         54         69         64  
Loans receivable (net of allowance for loan losses of $10,617,              
$10,597, $10,063, and $10,528)     773,087         786,913         640,873         768,904  
Real estate owned     298         298         539         298  
Prepaid expenses and other assets     4,227         3,901         4,334         3,815  
Accrued interest receivable     3,111         3,086         2,421         2,941  
Federal Home Loan Bank stock, at cost     1,181         1,181         1,060         1,181  
Premises and equipment, net     15,740         16,041         14,206         16,232  
Deferred income taxes, net     6,167         6,051         7,816         7,610  
Mortgage servicing rights, net     406         408         385         398  
Goodwill     27,076         27,076         25,572         27,076  
Core deposit intangible, net     1,219         1,277         -         1,335  
Bank owned life insurance     28,149         27,945         25,246         27,738  
               
TOTAL ASSETS $   1,147,680     $   1,125,161     $   984,045     $   1,133,939  
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
LIABILITIES:              
Deposits $   990,299     $   973,483     $   838,902     $   980,058  
Accrued expenses and other liabilities     10,838         8,302         8,175         13,080  
Advance payments by borrowers for taxes and insurance     920         596         837         693  
Junior subordinated debentures     26,438         26,414         22,681         26,390  
Capital lease obligation     2,443         2,449         2,464         2,454  
Total liabilities     1,030,938         1,011,244         873,059         1,022,675  
               
SHAREHOLDERS' EQUITY:              
Serial preferred stock, $.01 par value; 250,000 authorized,              
 issued and outstanding, none    -         -         -         -   
Common stock, $.01 par value; 50,000,000 authorized,              
 September 30, 2017 - 22,533,912 issued and outstanding;              
 June 30, 2017 - 22,527,401 issued and outstanding;     225         225         225         225  
 September 30, 2016 - 22,507,890 issued and outstanding;              
 March 31, 2017 - 22,510,890 issued and outstanding;              
Additional paid-in capital     64,612         64,556         64,425         64,468  
Retained earnings     53,034         50,482         45,207         48,335  
Unearned shares issued to employee stock ownership plan     (26 )       (52 )       (129 )       (77 )
Accumulated other comprehensive income (loss)     (1,103 )       (1,294 )       1,258         (1,687 )
Total shareholders' equity     116,742         113,917         110,986         111,264  
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $   1,147,680     $   1,125,161     $   984,045     $   1,133,939  
 

RIVERVIEW BANCORP, INC. AND SUBSIDIARY              
Consolidated Statements of Income              
  Three Months Ended   Six Months Ended  
(In thousands, except share data)   (Unaudited)   Sept. 30, 2017    June 30, 2017    Sept. 30, 2016      Sept. 30, 2017    Sept. 30, 2016   
INTEREST INCOME:      
Interest and fees on loans receivable $   9,994   $   9,789   $   7,631   $   19,783   $   15,071  
Interest on investment securities - taxable     1,079       1,133       769       2,212       1,489  
Interest on investment securities - nontaxable     14       14       -       28       -  
Other interest and dividends     228       87       130       315       232  
Total interest and dividend income     11,315       11,023       8,530       22,338       16,792  
               
INTEREST EXPENSE:              
Interest on deposits     313       322       279       635       560  
Interest on borrowings     277       268       163       545       321  
Total interest expense     590       590       442       1,180       881  
Net interest income     10,725       10,433       8,088       21,158       15,911  
Provision for loan losses     -       -       -       -       -  
               
Net interest income after provision for loan losses     10,725       10,433       8,088       21,158       15,911  
               
NON-INTEREST INCOME:              
Fees and service charges     1,490       1,407       1,188       2,897       2,511  
Asset management fees     818       853       727       1,671       1,549  
Net gain on sale of loans held for sale     157       225       163       382       302  
Bank owned life insurance income     204       207       190       411       381  
Other, net     44       46       313       90       352  
Total non-interest income     2,713       2,738       2,581       5,451       5,095  
               
NON-INTEREST EXPENSE:              
Salaries and employee benefits     5,251       5,422       4,531       10,673       9,171  
Occupancy and depreciation     1,412       1,346       1,225       2,758       2,362  
Data processing     580       616       476       1,196       971  
Amortization of core deposit intangible     58       58       -       116       -  
Advertising and marketing expense     256       234       252       490       445  
FDIC insurance premium     136       145       74       281       196  
State and local taxes     177       154       146       331       285  
Telecommunications     103       104       76       207       149  
Professional fees     261       415       453       676       711  
Real estate owned expenses     3       2       35       5       50  
Other     522       678       1,129       1,200       1,872  
Total non-interest expense     8,759       9,174       8,397       17,933       16,212  
               
INCOME BEFORE INCOME TAXES     4,679       3,997       2,272       8,676       4,794  
PROVISION FOR INCOME TAXES     1,620       1,343       592       2,963       1,417  
NET INCOME $   3,059   $   2,654   $   1,680   $   5,713   $   3,377  
               
Earnings per common share:              
Basic $   0.14   $   0.12   $   0.07   $   0.25   $   0.15  
Diluted $   0.14   $   0.12   $   0.07   $   0.25   $   0.15  
Weighted average number of common shares outstanding:               
Basic   22,518,941     22,504,852     22,474,019     22,511,935     22,470,957  
Diluted   22,609,480     22,589,440     22,530,331     22,599,851     22,522,544  
         

                       
(Dollars in thousands)   At or for the three months ended   At or for the six months ended  
    Sept. 30, 2017   June 30, 2017   Sept. 30, 2016   Sept. 30, 2017   Sept. 30, 2016  
AVERAGE BALANCES                    
Average interest-earning assets   $   1,056,818     $   1,023,196     $   867,797     $   1,040,098   $   853,691  
Average interest-bearing liabilities     749,172       745,172       632,445       747,183     629,053  
Net average earning assets     307,646       278,024       235,352       292,915     224,638  
Average loans     783,213       786,317       645,479       784,756     639,258  
Average deposits     992,111       961,421       809,384       976,850     796,178  
Average equity     116,675       113,661       111,516       115,176     110,667  
Average tangible equity (non-GAAP)     88,351       85,278       85,944       86,822     85,095  
                       
                     
ASSET QUALITY   Sept. 30, 2017   June 30, 2017   Sept. 30, 2016          
           
Non-performing loans   $   2,745     $   2,792     $   2,360            
Non-performing loans to total loans     0.35 %     0.35 %     0.36 %          
Real estate/repossessed assets owned   $   298     $   298     $   539            
Non-performing assets   $   3,043     $   3,090     $   2,899            
Non-performing assets to total assets     0.27 %     0.27 %     0.29 %          
Net loan recoveries in the quarter   $   (20 )   $   (69 )   $   (103 )          
Net recoveries in the quarter/average net loans     (0.01 )%     (0.04 )%     (0.06 )%          
                       
Allowance for loan losses   $   10,617     $   10,597     $   10,063            
Average interest-earning assets to average                       
  interest-bearing liabilities     141.06 %     137.31 %     137.21 %          
Allowance for loan losses to                       
  non-performing loans     386.78 %     379.55 %     426.40 %          
Allowance for loan losses to total loans     1.35 %     1.33 %     1.55 %          
Shareholders' equity to assets     10.17 %     10.12 %     11.28 %          
                       
                       
CAPITAL RATIOS                      
Total capital (to risk weighted assets)     15.06 %     14.41 %     16.05 %          
Tier 1 capital (to risk weighted assets)     13.80 %     13.16 %     14.80 %          
Common equity tier 1 (to risk weighted assets)     13.80 %     13.16 %     14.80 %          
Tier 1 capital (to average tangible assets)     9.70 %     9.79 %     10.95 %          
Tangible common equity (to average tangible assets)      7.90 %     7.80 %     8.91 %          
                       
                       
DEPOSIT MIX   Sept. 30, 2017   June 30, 2017   Sept. 30, 2016   March 31, 2017      
                       
Interest checking   $   175,127     $   171,360     $   148,201     $   171,152      
Regular savings       134,116         126,704         104,241         126,370  
Money market deposit accounts       274,409         274,537         249,381         289,998      
Non-interest checking       270,678         258,223         222,218         242,738      
Certificates of deposit       135,969         142,659         114,861         149,800      
Total deposits   $   990,299     $   973,483     $   838,902     $   980,058      
                       

 
                   
COMPOSITION OF COMMERCIAL AND CONSTRUCTION   LOANS          
                   
        Other       Commercial   
    Commercial   Real Estate   Real Estate   & Construction  
    Business   Mortgage   Construction   Total  
September 30, 2017   (Dollars in thousands)  
Commercial business   $   118,444   $   -   $   -   $   118,444  
Commercial construction       -       -       35,923       35,923  
Office buildings       -       122,826       -       122,826  
Warehouse/industrial       -       77,026       -       77,026  
Retail/shopping centers/strip malls       -       69,512       -       69,512  
Assisted living facilities       -       3,026       -       3,026  
Single purpose facilities       -       168,165       -       168,165  
Land       -       13,745       -       13,745  
Multi-family       -       46,082       -       46,082  
One-to-four family construction       -       -       17,955       17,955  
  Total   $   118,444   $   500,382   $   53,878   $   672,704  
                   
March 31, 2017                  
Commercial business   $   107,371   $   -   $   -   $   107,371  
Commercial construction       -       -       27,050       27,050  
Office buildings       -       121,983       -       121,983  
Warehouse/industrial       -       74,671       -       74,671  
Retail/shopping centers/strip malls       -       78,757       -       78,757  
Assisted living facilities       -       3,686       -       3,686  
Single purpose facilities       -       167,974       -       167,974  
Land       -       15,875       -       15,875  
Multi-family       -       43,715       -       43,715  
One-to-four family construction       -       -       19,107       19,107  
  Total   $   107,371   $   506,661   $   46,157   $   660,189  
                   
                   
                   
                   
LOAN MIX   Sept. 30, 2017   June 30, 2017   Sept. 30, 2016   March 31, 2017  
Commercial and construction                  
  Commercial business   $   118,444   $   125,732   $   64,176   $   107,371  
  Other real estate mortgage       500,382       513,360       423,729       506,661  
  Real estate construction       53,878       43,186       45,059       46,157  
    Total commercial and construction        672,704       682,278       532,964       660,189  
Consumer                  
  Real estate one-to-four family       90,764       91,898       86,321       92,865  
  Other installment       20,236       23,334       31,651       26,378  
    Total consumer       111,000       115,232       117,972       119,243  
                   
Total loans        783,704       797,510       650,936       779,432  
                   
Less:                  
  Allowance for loan losses       10,617       10,597       10,063       10,528  
  Loans receivable, net   $   773,087   $   786,913   $   640,873   $   768,904  
                   

 
                           
DETAIL OF NON-PERFORMING ASSETS  
                     
        Other    Southwest   Other          
        Oregon   Washington   Washington   Other   Total  
September 30, 2017   (dollars in thousands)  
Non-performing assets                      
                           
  Commercial business   $   -   $   290   $   -   $   -   $   290  
  Commercial real estate       1,095       209       -       -       1,304  
  Land       780       -       -       -       780  
  Consumer       -       300       -       71       371  
  Total non-performing loans       1,875       799       -       71       2,745  
                           
  REO       -       -       298       -       298  
                           
Total non-performing assets   $   1,875   $   799   $   298   $   71   $   3,043  
                           
                           
                           
                           
                           
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS          
                           
        Northwest   Other    Southwest        
    Oregon   Oregon   Washington   Total  
September 30, 2017   (dollars in thousands)      
                       
  Land development   $   490   $   911   $   12,344   $   13,745  
  Speculative construction       376       401       14,573       15,350  
                       
Total land development and speculative construction    $   866   $   1,312   $   26,917   $   29,095  
 

 
                     
    At or for the three months ended   At or for the six months ended  
SELECTED OPERATING DATA Sept. 30, 2017   June 30, 2017   Sept. 30, 2016   Sept. 30, 2017   Sept. 30, 2016  
               
Efficiency ratio (4)   65.18 %     69.65 %     78.70 %     67.39 %     77.18 %  
Coverage ratio (6)   122.45 %     113.72 %     96.32 %     117.98 %     98.14 %  
Return on average assets (1)   1.06 %     0.96 %     0.70 %     1.01 %     0.72 %  
Return on average equity (1)   10.40 %     9.37 %     5.98 %     9.89 %     6.09 %  
                     
NET INTEREST SPREAD                    
Yield on loans   5.06 %     4.99 %     4.69 %     5.03 %     4.70 %  
Yield on investment securities   2.14 %     2.21 %     1.96 %     2.18 %     1.91 %  
  Total yield on interest-earning assets   4.25 %     4.32 %     3.90 %     4.29 %     3.92 %  
                     
Cost of interest-bearing deposits   0.17 %     0.18 %     0.18 %     0.18 %     0.18 %  
Cost of FHLB advances and other borrowings   3.81 %     3.69 %     2.55 %     3.75 %     2.54 %  
  Total cost of interest-bearing liabilities   0.31 %     0.32 %     0.28 %     0.31 %     0.28 %  
                     
Spread (7)   3.94 %     4.00 %     3.62 %     3.98 %     3.64 %  
Net interest margin   4.03 %     4.09 %     3.70 %     4.06 %     3.72 %  
                     
PER SHARE DATA              
Basic earnings per share (2) $   0.14     $   0.12     $   0.07     $   0.25     $   0.15    
Diluted earnings per share (3)     0.14         0.12         0.07         0.25         0.15    
Book value per share (5)     5.18         5.06         4.93         5.18         4.93    
Tangible book value per share (5) (non-GAAP)      3.93         3.80         3.79         3.93         3.79    
Market price per share:                    
  High for the period $   8.48     $   7.47     $   5.41     $   8.48     $   5.41    
  Low for the period     6.64         6.51         4.69         6.51         4.30    
  Close for period end     8.40         6.64         5.38         8.40         5.38    
Cash dividends declared per share     0.0225         0.0225         0.0200         0.0450         0.0400    
                     
Average number of shares outstanding:                    
  Basic (2)   22,518,941       22,504,852       22,474,019       22,511,935       22,470,957    
  Diluted (3)   22,609,480       22,589,440       22,530,331       22,599,851       22,522,544    
                 

 

  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.

Contacts:     Pat Sheaffer or Kevin Lycklama                                                                                              Riverview Bancorp, Inc. 360-693-6650 

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