VANCOUVER, Wash., Jan. 25, 2018 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB) ("Riverview" or the "Company") today reported net income of $1.5 million, or $0.07 per diluted share, in its third fiscal quarter ended December 31, 2017. This compares to net income of $3.1 million, or $0.14 per diluted share, in the preceding quarter and net income of $2.0 million, or $0.09 per diluted share, in the third fiscal quarter a year ago. Net income was impacted during the current quarter due to a valuation adjustment of the Company's net deferred tax asset along with the use of a lower blended tax rate, which resulted in an additional net income tax expense of $1.8 million, or $0.08 per diluted share. Pre-tax income for the third fiscal quarter of 2018 was $5.1 million, which was a $449,000, or 9.6%, increase compared to the preceding quarter and a $2.1 million, or 71.8%, increase from the year ago quarter.

In the first nine months of fiscal year 2018, Riverview's net income increased to $7.2 million, or $0.32 per diluted share, compared to $5.4 million, or $0.24 per diluted share, in the first nine months of fiscal year 2017.

"Riverview had another successful quarter with strong net interest income generation, an expanding net interest margin and continued operating efficiencies," stated Pat Sheaffer, chairman, chief executive officer and president. "With the successful integration of the MBank transaction behind us, our focus remains on expanding our franchise. We will continue to look for growth opportunities in the Portland area and its surrounding markets."

As a result of the Tax Cuts and Jobs Act (the "Tax Act") enacted on December 22, 2017, Riverview revalued its deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of the Tax Act. Based on its preliminary analysis, Riverview recorded a one-time net tax charge of $1.8 million related to the lower corporate tax rate adopted in the Tax Act. This increase in income tax expense was reflected in Riverview's operating results for the third fiscal quarter of 2018 and was in addition to the normal provision for income tax related to pre-tax net operating income.

"We recorded an additional net income tax expense of $1.8 million, or $0.08 per diluted share, due to the passage of the Tax Cuts and Jobs Act in the third fiscal quarter of 2018," said Kevin Lycklama, executive vice president and chief operating officer. "Going forward, we expect to fully recoup this additional expense within the next fiscal year, due to the lower corporate tax rate. The effective tax rate for our fourth fiscal quarter of 2018 is expected to be approximately 31.5% due to our use of a blended tax rate for the remainder of this fiscal year. We expect our effective tax rate will decline to approximately 22.5% beginning on April 1, 2018 at the start of our new fiscal year."

Third Quarter Highlights (at or for the period ended December 31, 2017)
  • Net interest margin (NIM) expanded by three basis points to 4.06% compared to the preceding quarter and expanded 31 basis points compared to the third quarter a year ago.
  • Total loans increased $13.6 million during the quarter to $797.3 million.
  • Non-performing assets were 0.26% of total assets.
  • Efficiency ratio improved to 62.5%.
  • Tangible book value per share was $3.93.
  • Total risk-based capital ratio was 15.07% and Tier 1 leverage ratio was 9.82%.
  • Declared quarterly cash dividend of $0.03 per share, generating a current dividend yield of 1.28% based on the market price on January 23, 2018.

Income Statement

Riverview's net interest income was $10.8 million in the third fiscal quarter of 2018, a $71,000 increase compared to $10.7 million in the preceding quarter and a $2.3 million increase compared to $8.5 million in the third fiscal quarter a year ago. In the first nine months of fiscal 2018, net interest income increased $7.5 million to $32.0 million compared to $24.4 million in the first nine months of fiscal 2017.

"Our net interest margin expanded three basis points in the third quarter of fiscal 2018 compared to the prior linked quarter reflecting a lower balance of cash and liquid assets earning a nominal yield," said Lycklama. The interest accretion on purchased loans totaled $175,000 and resulted in a six basis point increase in the NIM during the third fiscal quarter. Fiscal year-to-date, the NIM increased 33 basis points to 4.06% compared to 3.73% in the first nine months of fiscal 2017.

Non-interest income was $2.9 million in the third fiscal quarter, a $177,000 increase compared to $2.7 million the prior quarter and a $557,000 increase compared to $2.3 million in the same quarter a year ago. In the first nine months of fiscal 2018, non-interest income increased to $8.3 million compared to $7.4 million in the first nine months of fiscal 2017. The nine month year over year increase was primarily due to an increase in fees and service charges and asset management fees.

Asset management fees were $911,000 in the third fiscal quarter of 2018 compared to $818,000 in the preceding quarter and $709,000 in the third fiscal quarter a year ago. Riverview Trust Company's ("RTC") assets under management increased to $490.1 million at December 31, 2017 compared to $461.2 million three months earlier and $403.3 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 $201,000 to $8.6 million during the third fiscal quarter of 2018 compared to $8.8 million in the preceding quarter and increased $707,000 from $7.9 million for the same prior year period mainly due to the MBank transaction. There were no transaction related costs from the MBank transaction in the current quarter compared to $177,000 in transaction related costs during the preceding quarter. The efficiency ratio improved to 62.5% for the quarter ended December 31, 2017, compared to 65.2% in the preceding quarter and 72.5% in the third fiscal quarter a year ago. "With all MBank transaction costs behind us, we expect to continue to capitalize on the cost savings and operating efficiencies associated with a larger organization," said Lycklama. "We will continue to look for other opportunities to improve profitability and increase shareholder value."

Balance Sheet Review

Total loans increased $13.6 million during the quarter to $797.3 million at December 31, 2017 compared to $783.7 million at September 30, 2017, and increased $133.0 million compared to $664.3 million a year ago. The growth in the loan portfolio was primarily concentrated in commercial business, multi-family and warehouse/industrial loans. Undisbursed construction loans totaled $61.8 million at December 31, 2017, with the majority of the undisbursed construction loans expected to fund over the next several quarters. The commercial loan pipeline totaled $61.6 million at the end of the quarter.

Total deposits increased $131.8 million to $972.2 million at December 31, 2017 compared to $840.4 million a year ago but decreased compared to $990.3 million at September 30, 2017. The decrease compared to the prior quarter end was primarily due to the timing of deposit transactions. Core deposits represent 98.0% of total deposits at December 31, 2017.

Shareholders' equity was $116.8 million at December 31, 2017 compared to $116.7 million three months earlier and $109.4 million a year earlier. Tangible book value per share was $3.93 at both December 31, 2017 and September 30, 2017 and an increase compared to $3.72 at December 31, 2016. A quarterly cash dividend of $0.03 per share was paid on January 23, 2018.

Credit Quality

Classified assets totaled $6.9 million at December 31, 2017 compared to $7.1 million at September 30, 2017 and the classified asset to total capital ratio was 5.7% compared to 6.0%, respectively.

Riverview's non-performing loans were $2.7 million, or 0.33% of total loans, at December 31, 2017 compared to $2.8 million, or 0.35% of total loans, three months earlier. Real estate owned balances of $298,000 at December 31, 2017 were unchanged compared to the preceding quarter end.

The allowance for loan losses totaled $10.9 million, representing 1.36% of total loans at December 31, 2017 compared to $10.6 million and 1.35% of total loans at September 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 $2.4 million at December 31, 2017 compared to $2.6 million at the end of the prior quarter. Net loan recoveries were $250,000 during the third fiscal quarter of 2018 compared to $20,000 in the preceding quarter.

Riverview recorded no provision for loan losses during the third fiscal quarter of 2018 or in the preceding quarter, primarily as a result of the lower levels of delinquent, nonperforming and classified loans, elevated levels of net recoveries, as well as stabilizing values in our market areas which mitigated the required allowance for loan losses due to our loan growth.

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% and a Tier 1 leverage ratio of 9.82% at December 31, 2017. In addition at that date the Company's  tangible common equity to tangible assets ratio was 8.05%.

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. We calculate tangible book value per share by dividing tangible common equity by the number of common shares outstanding.  This non-GAAP financial measure has inherent limitations, is not required to be uniformly applied and is not audited. Further, the non-GAAP financial measure should not be considered in isolation or as a substitute for book value per share or total stockholders' equity determined in accordance with GAAP and may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.
(Dollars in thousands)   December 31, 2017   September 30, 2017   December 31, 2016   March 31, 2017
                 
Shareholders' equity   $   116,803   $   116,742   $   109,400   $   111,264
Goodwill       27,076       27,076       25,572       27,076
Core deposit intangible, net       1,161       1,219       -       1,335
                         
Tangible shareholders' equity   $   88,566   $   88,447   $   83,828   $   82,853
                 
Total assets   $   1,128,342   $   1,147,680   $   985,669   $   1,133,939
Goodwill       27,076       27,076       25,572       27,076
Core deposit intangible, net       1,161       1,219       -       1,335
                         
Tangible assets   $   1,100,105   $   1,119,385   $   960,097   $   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 $1.13 billion at December 31, 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 recent 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 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) December 31, 2017   September 30, 2017   December 31, 2016   March 31, 2017  
ASSETS  
   
Cash (including interest-earning accounts of $3,739, $59,315, $14,302 $   23,105     $   76,245     $   28,262     $   64,613    
and $46,245)                
Certificate of deposits held for investment     6,963         9,797         11,291         11,042    
Loans held for sale     351         347         1,679         478    
Investment securities:                
Available for sale, at estimated fair value     224,931         200,584         207,271         200,214    
Held to maturity, at amortized cost     44         46         67         64    
Loans receivable (net of allowance for loan losses of $10,867, $10,617                 
$10,289, and $10,528)     786,460         773,087         654,053         768,904    
Real estate owned     298         298         298         298    
Prepaid expenses and other assets     4,843         4,227         4,832         3,815    
Accrued interest receivable     3,464         3,111         2,846         2,941    
Federal Home Loan Bank stock, at cost     1,223         1,181         1,060         1,181    
Premises and equipment, net     15,680         15,740         13,953         16,232    
Deferred income taxes, net     3,988         6,167         8,665         7,610    
Mortgage servicing rights, net     399         406         390         398    
Goodwill     27,076         27,076         25,572         27,076    
Core deposit intangible, net     1,161         1,219         -         1,335    
Bank owned life insurance     28,356         28,149         25,430         27,738    
                 
TOTAL ASSETS $   1,128,342     $   1,147,680     $   985,669     $   1,133,939    
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
                 
LIABILITIES:                
Deposits $   972,214     $   990,299     $   840,391     $   980,058    
Accrued expenses and other liabilities     9,117         10,838         10,450         13,080    
Advance payments by borrowers for taxes and insurance     260         920         288         693    
Federal Home Loan Bank advances     1,050         -         -         -    
Junior subordinated debentures     26,461         26,438         22,681         26,390    
Capital lease obligations     2,437         2,443         2,459         2,454    
Total liabilities   1,011,539       1,030,938       876,269       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,                
December 31, 2017 - 22,551,912 issued and outstanding;                
September 30, 2017 - 22,533,912 issued and outstanding;     226         225         225         225    
December 31, 2016 - 22,510,890 issued and outstanding;                
March 31, 2017 - 22,510,890 issued and outstanding;                
Additional paid-in capital     64,703         64,612         64,448         64,468    
Retained earnings     53,878         53,034         46,750         48,335    
Unearned shares issued to employee stock ownership plan     -         (26 )       (103 )       (77 )  
Accumulated other comprehensive loss     (2,004 )       (1,103 )       (1,920 )       (1,687 )  
Total shareholders' equity     116,803         116,742         109,400         111,264    
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,128,342     $ 1,147,680     $ 985,669     $ 1,133,939    
 

 
RIVERVIEW BANCORP, INC. AND SUBSIDIARY 
Consolidated Statements of Income 
  Three Months Ended   Nine Months Ended  
(In thousands, except share data)   (Unaudited) Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016   Dec. 31, 2017 Dec. 31, 2016  
INTEREST INCOME:      
Interest and fees on loans receivable $   9,978 $   9,994 $   7,883     $   29,761 $   22,954  
Interest on investment securities - taxable     1,201     1,079     946         3,413     2,435  
Interest on investment securities - nontaxable     31     14     11         59     11  
Other interest and dividends     168     228     112         483     344  
Total interest and dividend income     11,378     11,315     8,952         33,716     25,744  
               
INTEREST EXPENSE:              
Interest on deposits     298     313     277         933     837  
Interest on borrowings     284     277     173         829     494  
Total interest expense     582     590     450         1,762     1,331  
Net interest income     10,796     10,725     8,502         31,954     24,413  
Provision for loan losses     -     -     -         -     -  
               
Net interest income after provision for loan losses     10,796     10,725     8,502         31,954     24,413  
               
NON-INTEREST INCOME:              
Fees and service charges     1,451     1,490     1,304         4,348     3,815  
Asset management fees     911     818     709         2,582     2,258  
Net gain on sale of loans held for sale     140     157     191         522     493  
Bank owned life insurance     206     204     185         617     566  
Other, net     182     44     (56 )       272     296  
Total non-interest income     2,890     2,713     2,333         8,341     7,428  
               
NON-INTEREST EXPENSE:              
Salaries and employee benefits     5,383     5,251     4,850         16,056     14,021  
Occupancy and depreciation     1,347     1,412     1,158         4,105     3,520  
Data processing     534     580     562         1,730     1,533  
Amortization of core deposit intangible     58     58     -         174     -  
Advertising and marketing expense     137     256     163         627     608  
FDIC insurance premium     108     136     77         389     273  
State and local taxes     96     177     170         427     455  
Telecommunications     102     103     75         309     224  
Professional fees     250     261     355         926     1,066  
Real estate owned expenses     3     3     2         8     52  
Other     540     522     439         1,740     2,311  
Total non-interest expense     8,558     8,759     7,851         26,491     24,063  
               
INCOME BEFORE INCOME TAXES     5,128     4,679     2,984         13,804     7,778  
PROVISION FOR INCOME TAXES     3,608     1,620     991         6,571     2,408  
NET INCOME $   1,520 $   3,059 $   1,993     $   7,233 $   5,370  
               
Earnings per common share:              
Basic $   0.07 $   0.14 $   0.09     $   0.32 $   0.24  
Diluted $   0.07 $   0.14 $   0.09     $   0.32 $   0.24  
Weighted average number of common shares outstanding:              
Basic   22,537,092   22,518,941   22,490,433       22,520,352   22,477,473  
Diluted   22,622,129   22,609,480   22,563,712       22,608,603   22,537,663  
             

 
(Dollars in thousands)   At or for the three months ended   At or for the nine months ended  
    Dec. 31, 2017   Sept. 30, 2017   Dec. 31, 2016   Dec. 31, 2017   Dec. 31, 2016  
AVERAGE BALANCES                    
Average interest-earning assets   $ 1,055,600     $ 1,056,818     $ 900,542     $   1,045,283   $   869,364  
Average interest-bearing liabilities     744,431       749,172       652,195       746,262     636,795  
Net average earning assets     311,169       307,646       248,347       299,021     232,569  
Average loans     785,264       783,213       658,212       784,926     645,598  
Average deposits     988,558       992,111       839,588       980,766     810,700  
Average equity     118,831       116,675       112,444       116,399     111,261  
Average tangible equity (non-GAAP)     90,562       88,351       86,872       88,074     85,689  
                       
                     
ASSET QUALITY   Dec. 31, 2017   Sept. 30, 2017   Dec. 31, 2016          
Non-performing loans   $   2,656     $   2,745     $   2,787            
Non-performing loans to total loans     0.33 %     0.35 %     0.42 %          
Real estate/repossessed assets owned   $   298     $   298     $   298            
Non-performing assets   $   2,954     $   3,043     $   3,085            
Non-performing assets to total assets     0.26 %     0.27 %     0.31 %          
Net recoveries in the quarter   $   (250 )   $   (20 )   $   (266 )          
Net recoveries in the quarter/average net loans     (0.13 )%     (0.01 )%     (0.14 )%          
                       
Allowance for loan losses   $   10,867     $   10,617     $   10,289            
Average interest-earning assets to average                       
  interest-bearing liabilities     141.80 %     141.06 %     138.08 %          
Allowance for loan losses to                       
  non-performing loans     409.15 %     386.78 %     369.18 %          
Allowance for loan losses to total loans     1.36 %     1.35 %     1.55 %          
Shareholders' equity to assets     10.35 %     10.17 %     11.10 %          
                       
                       
CAPITAL RATIOS                      
Total capital (to risk weighted assets)     14.94 %     15.07 %     15.93 %          
Tier 1 capital (to risk weighted assets)     13.68 %     13.82 %     14.68 %          
Common equity tier 1 (to risk weighted assets)     13.68 %     13.82 %     14.68 %          
Tier 1 capital (to average tangible assets)     9.84 %     9.75 %     10.81 %          
Tangible common equity (to average tangible assets)     8.05 %     7.90 %     8.73 %          
                       
                       
DEPOSIT MIX   Dec. 31, 2017   Sept. 30, 2017   Dec. 31, 2016   March 31, 2017      
                       
Interest checking   $ 170,151     $ 175,127     $ 167,522     $   171,152      
Regular savings     136,249       134,116       109,629         126,370  
Money market deposit accounts     270,193       274,409       250,900         289,998      
Non-interest checking      264,728       270,678       202,080         242,738      
Certificates of deposit       130,893         135,969       110,260         149,800      
Total deposits   $   972,214     $   990,299     $ 840,391     $   980,058      
                       

 
 
COMPOSITION OF COMMERCIAL AND CONSTRUCTION   LOANS  
                   
        Other       Commercial   
    Commercial   Real Estate   Real Estate   & Construction  
    Business   Mortgage   Construction   Total  
December 31, 2017   (Dollars in thousands)  
Commercial business   $   130,960   $   -   $   -   $   130,960  
Commercial construction       -       -       25,384       25,384  
Office buildings       -       122,281       -       122,281  
Warehouse/industrial       -       83,829       -       83,829  
Retail/shopping centers/strip malls       -       67,751       -       67,751  
Assisted living facilities       -       2,982       -       2,982  
Single purpose facilities       -       165,060       -       165,060  
Land       -       12,469       -       12,469  
Multi-family       -       61,851       -       61,851  
One-to-four family construction       -       -       15,359       15,359  
  Total   $   130,960   $   516,223   $   40,743   $   687,926  
                   
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   Dec. 31, 2017   Sept. 30, 2017   Dec. 31, 2016   March 31, 2017  
    (Dollars in thousands)  
Commercial and construction                  
  Commercial business   $   130,960   $   118,444   $   64,401   $   107,371  
  Other real estate mortgage       516,223       500,382       432,782       506,661  
  Real estate construction       40,743       53,878       52,707       46,157  
  Total commercial and construction       687,926       672,704       549,890       660,189  
Consumer                  
  Real estate one-to-four family       91,752       90,764       85,956       92,865  
  Other installment       17,649       20,236       28,496       26,378  
  Total consumer       109,401       111,000       114,452       119,243  
                   
Total loans        797,327       783,704       664,342       779,432  
                   
Less:                  
  Allowance for loan losses       10,867       10,617       10,289       10,528  
  Loans receivable, net   $   786,460   $   773,087   $   654,053   $   768,904  

 
DETAIL OF NON-PERFORMING ASSETS  
                     
        Other    Southwest   Other          
    Oregon   Washington   Washington   Other   Total  
December 31, 2017                      
                           
  Commercial business   $   -   $   289   $   -   $   -   $   289  
  Commercial real estate       1,084       207       -       -       1,291  
  Land       770       -       -       -       770  
  Consumer       -       207       -       99       306  
  Total non-performing loans       1,854       703       -       99       2,656  
                           
  REO       -       -       298       -       298  
                           
Total non-performing assets   $   1,854   $   703   $   298   $   99   $   2,954  
                           
                           
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS      
                           
        Northwest   Other    Southwest          
    Oregon   Oregon   Washington   Total    
December 31, 2017   (dollars in thousands)  
                         
  Land development   $   486   $   896   $   11,087   $   12,469    
  Speculative construction       -       371       12,335       12,706    
                         
Total land development and speculative  construction $   486   $   1,267   $   23,422   $   25,175    

 
    At or for the three months ended   At or for the nine months ended  
SELECTED OPERATING DATA Dec. 31, 2017 Sept. 30, 2017 Dec. 31, 2016   Dec. 31, 2017 Dec. 31, 2016  
           
Efficiency ratio (4)   62.53 %   65.18 %   72.46 %     65.74 %   75.57 %  
Coverage ratio (6)   126.15 %   122.45 %   108.29 %     120.62 %   101.45 %  
Return on average assets (1)   0.53 %   1.06 %   0.80 %     0.85 %   0.75 %  
Return on average equity (1)   5.07 %   10.40 %   7.03 %     8.25 %   6.41 %  
               
NET INTEREST SPREAD              
Yield on loans   5.04 %   5.06 %   4.75 %     5.03 %   4.72 %  
Yield on investment securities   2.24 %   2.14 %   2.06 %     2.20 %   1.96 %  
  Total yield on interest-earning assets   4.28 %   4.25 %   3.95 %     4.29 %   3.93 %  
               
Cost of interest-bearing deposits   0.17 %   0.17 %   0.18 %     0.17 %   0.18 %  
Cost of FHLB advances and other borrowings   3.89 %   3.81 %   2.73 %     3.80 %   2.61 %  
  Total cost of interest-bearing liabilities   0.31 %   0.31 %   0.27 %     0.31 %   0.28 %  
               
Spread (7)   3.97 %   3.94 %   3.68 %     3.98 %   3.65 %  
Net interest margin   4.06 %   4.03 %   3.75 %     4.06 %   3.73 %  
               
PER SHARE DATA          
Basic earnings per share (2) $   0.07   $   0.14   $   0.09     $   0.32   $   0.24    
Diluted earnings per share (3)     0.07       0.14       0.09         0.32       0.24    
Book value per share (5)     5.18       5.18       4.86         5.18       4.86    
Tangible book value per share (5) (non-GAAP)     3.93       3.93       3.72         3.93       3.72    
Market price per share:              
  High for the period $   9.45   $   8.48   $   7.61     $   9.45   $   7.61    
  Low for the period     8.44       6.64       5.23         6.51       4.30    
  Close for period end     8.67       8.40       7.00         8.67       7.00    
Cash dividends declared per share     0.0300       0.0225       0.0200         0.0750       0.0600    
               
Average number of shares outstanding:              
  Basic (2)   22,537,092     22,518,941     22,490,433       22,520,352     22,477,473    
  Diluted (3)   22,622,129     22,609,480     22,563,712       22,608,603     22,537,663    
             

   
(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 LycklamaRiverview Bancorp, Inc. 360-693-6650 

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