Riverview Bancorp, Inc. ("Riverview" or the "Company")
(Nasdaq:RVSB), the parent company of Riverview Community Bank
("Bank"), today reported that net income increased to $1.1 million,
or $0.06 per diluted share, for the second fiscal quarter ended
September 30, 2010, compared to $202,000, or $0.02 per diluted
share, for the second fiscal quarter a year ago. For the first six
months of fiscal 2011 net income increased to $2.9 million, or
$0.20 per diluted share, compared to $545,000, or $0.05 per diluted
share, for the first six months of fiscal 2010.
"Riverview's second quarter was highlighted by a successful
capital raise and continued strong operating performance," said Pat
Sheaffer, Chairman and CEO. "We posted profits for the second
consecutive quarter and have continued to see meaningful
improvements throughout the Bank during the first half of fiscal
2011. While credit costs remained elevated, we are seeing signs of
a return to normalcy from an operating perspective."
Common Stock Offering
During the second fiscal quarter, the Company successfully
raised $18.9 million in net proceeds through an underwritten public
offering. The Company issued 11.5 million shares of its common
stock, including 1.5 million shares pursuant to the underwriter's
over-allotment option. "The successful completion of this offering
increased our already-strong capital and liquidity levels and
further enhanced the Bank's ability to respond to the banking needs
in our communities," added Sheaffer. "To help in accomplishing our
goals, we have also hired additional talented and experienced
bankers. Together with our existing team, we are looking for
opportunities to attract new customers and grow our existing
franchise."
Second Quarter Fiscal 2011 Highlights (at or
for the period ended September 30, 2010)
- Net income of $1.1 million, or $0.06 per diluted share.
- Completed capital offering and raised $18.9 million in net
proceeds.
- Improved capital levels - total risk-based capital ratio of
14.07%, significantly above the 10.00% minimum for
"well-capitalized" designation.
- Net interest margin remains strong at 4.46%.
- Average deposit balances increased $16.8 million compared to
prior quarter.
- Non-performing assets were 6.42% of total assets.
- Allowance for loan losses was 2.72% of total loans and 53.84%
of non-performing loans.
- Reduced concentration in land development and speculative
construction loans by $9.4 million during the quarter. These two
segments accounted for 12.4% of the total loan portfolio at
September 30, 2010.
Credit Quality
"We continue to be proactive in managing our asset quality,"
said Dave Dahlstrom, EVP and Chief Credit Officer. "While we have
experienced an increase in non-performing loans during the quarter
due to one new commercial real estate (CRE) credit, there has been
a considerable slowdown in new problem loans."
Non-performing loans (NPLs) increased slightly during the
quarter to $35.3 million compared to $33.0 million three months
earlier, but were down from the $41.1 million at their peak level
at June 30, 2009. NPLs represented 5.06% of total loans at
September 30, 2010, compared to 4.59% of total loans three months
earlier. "The increase in non-performing loans during the quarter
was primarily due to one commercial real estate loan totaling $6.3
million. We are working on a deal for the sale of this property and
based on a current appraisal of the property we do not anticipate
any loss on the property settlement at this time," said Dahlstrom.
"While we believe the worst of the credit problems are behind us,
we do expect some continued volatility in the non-performing asset
(NPA) balances in the coming quarters." Loans delinquent 30 to 89
days improved to 1.30% of total loans compared to 1.78% of total
loans at June 30, 2010. The bulk of these delinquencies were
concentrated in one CRE loan totaling $7.2 million. This loan is
reserved for at its current market value with a total an impairment
of $699,000 at September 30, 2010.
The results of our most recent stress tests on the CRE portfolio
showed no significant issues, unlike our previous experience in the
residential land development and construction portfolios. The Bank
expects any potential issues that may arise in the CRE portfolio
will result from individual loans and not represent a systemic
weakness from this portfolio.
Real estate owned (REO) was $19.8 million at September 30, 2010
compared to $14.9 million at June 30, 2010. REO balances increased
as the Bank has continued to make progress in moving non-performing
loans through the foreclosure process, which will allow for more
efficient resolution of these properties and continued reductions
in our NPA levels in future quarters. "During the second quarter,
we sold a total of $1.6 million of REO, added 13 properties that
totaled $6.4 million and have several additional properties which
we expect to be sold during the third fiscal quarter," Dahlstrom
added. The REO balance consisted primarily of completed residential
properties and residential building land and lots. The Bank has
written these properties down to their net realizable value based
on recent or updated appraisals.
NPAs increased during the quarter to $55.1 million, or 6.42% of
total assets, at September 30, 2010 compared to $47.9 million, or
5.54% of total assets, in the prior quarter. This increase was
primarily the result of the one CRE loan discussed earlier.
The total CRE loan portfolio was $360.0 million as of September
30, 2010, of which 28% was owner-occupied and 72% was
investor-owned. At September 30, 2010, the CRE portfolio contained
five loans totaling $9.5 million that were more than 90 days past
due, representing 2.7% of the total commercial real estate. Due
primarily to our conservative underwriting standards for this
portfolio, none of these loans required any type of impairment at
September 30, 2010. The underwriting standards for this portfolio
generally require a minimum debt service coverage ratio of 1.20 or
greater, a maximum loan-to-value of 75% and personal
guarantees.
Riverview continues to reduce its exposure to land development
and speculative construction loans, reducing the balance of these
portfolios to $87.0 million at September 30, 2010 compared to $96.4
million in the prior quarter, $120.2 million at September 30, 2009
and $237.5 million at their peak at October 31, 2006. Speculative
construction loans declined to $24.4 million, and represent only
3.5% of the total loan portfolio and land development loans
declined to $62.6 million and represent 9.0% of the total loan
portfolio at September 30, 2010.
Riverview's allowance for loan losses was $19.0 million at
September 30, 2010 representing 2.72% of total loans compared to an
allowance for loan losses of $19.6 million, or 2.73% of total
loans, at June 30, 2010. The ratio of allowance for loan losses to
non-performing loans was 53.84% at September 30, 2010 compared to
59.37% three months earlier. For the second fiscal quarter, the
provision for loan losses was $1.7 million compared to net
charge-offs of $2.2 million. The provision for loan losses was $1.3
million in the preceding quarter and $3.2 million in the second
quarter a year ago.
Capital and Liquidity
The Bank continues to maintain capital levels significantly in
excess of the requirements to be categorized as "well capitalized."
The Bank's total risk-based capital ratio was 14.07% and its Tier 1
capital ratio was 12.81% at September 30, 2010. Riverview's total
shareholders' equity was $105.7 million at September 30, 2010
compared to $89.6 million at September 30, 2009. Book value per
share was $4.70 per share at September 30, 2010 compared to $8.20 a
year ago and tangible book value per share was $3.53 at September
30, 2010 compared to $5.78 a year earlier. Riverview's tangible
shareholder equity was 9.5% of tangible assets at September 30.
2010. The Company also has an additional $12.5 million in cash that
could be used in the future to boost the Bank's capital levels or
support future growth.
Riverview Community Bank's actual and required minimum capital
amounts and ratios are presented as follows:
Sept. 30, 2010 |
Actual |
Adequately
Capitalized |
Well
Capitalized |
|
Amount |
Ratio |
Amount |
Ratio |
Amount |
Ratio |
Total Capital |
(dollars in
thousands) |
(To Risk-Weighted Assets) |
$ 99,144 |
14.07% |
$ 56,371 |
8.00% |
$ 70,464 |
10.00% |
Tier 1 Capital |
|
|
|
|
|
|
(To Risk-Weighted Assets) |
90,285 |
12.81% |
28,186 |
4.00% |
42,278 |
6.00% |
Tier 1 Capital |
|
|
|
|
|
|
(To Adjusted Tangible
Assets) |
90,285 |
11.00% |
32,836 |
4.00% |
41,045 |
5.00% |
At September 30, 2010, the Bank had available liquidity of $400
million, including over $318 million of borrowing capacity from the
Federal Home Loan Bank of Seattle and the Federal Reserve Bank of
San Francisco, and $56 million from our cash and short-term
investments. As of September 30, 2010, the Bank had no outstanding
borrowings.
Net Interest Margin
Riverview's net interest margin was 4.46% for the second quarter
compared to 4.79% for the preceding quarter and 4.35% for the
second quarter a year ago. For the first six months of fiscal 2011
the net interest margin was 4.63%, a 33 basis point improvement
compared to the first six months of fiscal 2010. "The decline in
the net interest margin compared to the preceding quarter is
primarily the result of the Bank holding higher levels of cash and
investments which bear lower interest rates," said Kevin Lycklama,
EVP and CFO. The average cash and investment balances increased by
$37.0 million during the quarter. The increase in this on-balance
sheet liquidity resulted in a 21 basis point reduction in the net
interest margin for the quarter. Loans placed on nonaccrual during
the quarter resulted in a five basis point reduction in the margin.
The margin was also negatively impacted by the declining balance of
the loan portfolio. The average cost of deposits decreased by 11
basis points during the quarter to 0.98%.
Income Statement
Net interest income was $8.7 million in the second quarter
compared to $9.0 million in the preceding quarter and $8.9 million
in the second quarter a year ago. In the first six months of fiscal
2011 net interest income was $17.7 million, compared to $17.6
million in the first six months of fiscal 2010. Operating revenue,
which consists of net interest income plus non-interest income, was
$10.7 million in the second quarter compared to $11.3 million in
the preceding quarter and $10.7 million in the second quarter a
year ago. In the first six months of fiscal 2011 operating revenue
increased to $22.0 million compared to $21.5 million in the same
period a year ago.
Non-interest income was $2.1 million in the second quarter
compared to $2.2 million in the preceding quarter and $1.8 million
in the second quarter a year ago. For the first half of fiscal 2011
non-interest income increased 10.0% to $4.3 million compared to
$3.9 million for the first half of fiscal 2010. The increase from
prior year is primarily due to a $459,000 impairment charge on an
investment security in prior year.
Non-interest expense was $7.4 million in the second quarter
compared to $7.3 million in the preceding quarter and in the second
quarter a year ago. For the first half of fiscal 2011 non-interest
expense was $14.7 million compared to $15.3 million a year ago.
Balance Sheet Review
Loan balances outstanding at September 30, 2010 declined
reflecting the continued weak economic conditions and the planned
reduction in the construction and land development portfolios over
the past year. Net loans declined $17.9 million during the quarter
to $679.9 million at September 30, 2010, compared to $697.8 million
at June 30, 2010, and $730.2 million a year ago.
Total deposits increased by $2.5 million during the quarter to
$718.0 million at September 30, 2010 compared to $715.6 million
three months earlier and $662.5 million a year ago. Checking
accounts represented the largest growth during the quarter with
balances increasing $8.1 million or 4.8% from the previous linked
quarter. Average total deposits for the second quarter were $716.3
million, an increase of $16.8 million from the prior quarter's
average balance of $699.5 million. The loan to deposit ratio
decreased to 0.97 at September 30, 2010 compared to 1.00 three
months earlier and 1.13 a year ago.
During the quarter, the Bank paid down its borrowings by $28.0
million. The Bank had no borrowings at September 30, 2010.
Non-GAAP Financial Measures
In addition to results presented in accordance with generally
accepted accounting principles in the United States of America
(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 provided 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 reconciliations of ending
shareholders' equity (GAAP) to ending tangible shareholders' equity
(non-GAAP), and ending assets (GAAP) to ending tangible assets
(non-GAAP).
|
Sept. 30, |
June 30, |
Sept. 30, |
March 31, |
(Dollars in thousands) |
2010 |
2010 |
2009 |
2010 |
|
|
|
|
|
Shareholders' equity |
$ 105,719 |
$ 85,718 |
$ 89,567 |
$ 83,934 |
Goodwill |
25,572 |
25,572 |
25,572 |
25,572 |
Other intangible assets, net |
735 |
781 |
896 |
823 |
|
|
|
|
|
Tangible shareholders' equity |
$ 79,412 |
$ 59,365 |
$ 63,099 |
$ 57,539 |
|
|
|
|
|
Total assets |
$ 858,865 |
$ 863,424 |
$ 863,670 |
$ 837,953 |
Goodwill |
25,572 |
25,572 |
25,572 |
25,572 |
Other intangible assets, net |
735 |
781 |
896 |
823 |
|
|
|
|
|
Tangible assets |
$ 832,558 |
$ 837,071 |
$ 837,202 |
$ 811,558 |
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 $859 million, it is the parent company
of the 87 year-old Riverview Community Bank, as well as Riverview
Asset Management Corp. There are 17 branches, including twelve in
the Portland-Vancouver area and three lending centers. The Bank
offers true community banking services, focusing on providing the
highest quality service and financial products to commercial and
retail customers.
"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 amount of capital it intends to raise and its intended use of
that 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
Thrift Supervision 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 OTS 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 Securities and
Exchange Commission.
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 2010 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,
2010 |
June 30, 2010 |
September 30,
2009 |
March 31, 2010 |
ASSETS |
|
|
|
|
|
|
|
|
|
Cash (including
interest-earning accounts of $36,002, $41,345, $4,862 and
$3,384) |
$ 48,505 |
$ 53,244 |
$ 18,513 |
$ 13,587 |
Certificate of deposits with
other financial institutions |
14,951 |
-- |
-- |
-- |
Loans held for sale |
417 |
667 |
180 |
255 |
Investment securities held to
maturity, at amortized cost |
512 |
511 |
523 |
517 |
Investment securities available
for sale, at fair value |
6,688 |
6,727 |
8,451 |
6,802 |
Mortgage-backed securities held
to maturity, at amortized |
199 |
203 |
406 |
259 |
Mortgage-backed securities
available for sale, at fair value |
2,306 |
2,554 |
3,397 |
2,828 |
Loans receivable (net of
allowance for loan losses of $19,029, $19,565, $18,071, and
$21,642) |
679,925 |
697,795 |
730,227 |
712,837 |
Real estate and other pers.
property owned |
19,766 |
14,908 |
20,482 |
13,325 |
Prepaid expenses and other
assets |
6,541 |
7,560 |
2,953 |
7,934 |
Accrued interest
receivable |
2,644 |
2,653 |
2,891 |
2,849 |
Federal Home Loan Bank stock,
at cost |
7,350 |
7,350 |
7,350 |
7,350 |
Premises and equipment,
net |
15,893 |
16,201 |
18,770 |
16,487 |
Deferred income taxes, net |
11,209 |
11,197 |
8,008 |
11,177 |
Mortgage servicing rights,
net |
470 |
493 |
528 |
509 |
Goodwill |
25,572 |
25,572 |
25,572 |
25,572 |
Core deposit intangible,
net |
265 |
288 |
368 |
314 |
Bank owned life insurance |
15,652 |
15,501 |
15,051 |
15,351 |
|
|
|
|
|
TOTAL ASSETS |
$ 858,865 |
$ 863,424 |
$ 863,670 |
$ 837,953 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
Deposit accounts |
$ 718,028 |
$ 715,573 |
$ 662,494 |
$ 688,048 |
Accrued expenses and other
liabilities |
8,898 |
8,224 |
5,468 |
6,833 |
Advance payments by borrowers
for taxes and insurance |
507 |
194 |
435 |
427 |
Federal Home Loan Bank
advances |
-- |
28,000 |
5,000 |
23,000 |
Federal Reserve Bank
advances |
-- |
-- |
75,000 |
10,000 |
Junior subordinated
debentures |
22,681 |
22,681 |
22,681 |
22,681 |
Capital lease obligation |
2,589 |
2,599 |
2,630 |
2,610 |
Total liabilities |
752,703 |
777,271 |
773,708 |
753,599 |
|
|
|
|
|
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, |
|
|
|
|
September 30, 2010 - 22,471,890
issued and outstanding; |
|
|
|
|
June 30, 2010 – 10,923,773
issued and outstanding; |
225 |
109 |
109 |
109 |
September 30, 2009 – 10,923,773
issued and outstanding; |
|
|
|
|
March 31, 2010 – 10,923,773
issued and outstanding; |
|
|
|
|
Additional paid-in capital |
65,746 |
46,980 |
46,889 |
46,948 |
Retained earnings |
41,760 |
40,643 |
44,867 |
38,878 |
Unearned shares issued to
employee stock ownership trust |
(748) |
(773) |
(851) |
(799) |
Accumulated other comprehensive
loss |
(1,264) |
(1,241) |
(1,447) |
(1,202) |
Total shareholders' equity |
105,719 |
85,718 |
89,567 |
83,934 |
|
|
|
|
|
Noncontrolling interest |
443 |
435 |
395 |
420 |
Total equity |
106,162 |
86,153 |
89,962 |
84,354 |
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
$ 858,865 |
$ 863,424 |
$ 863,670 |
$ 837,953 |
|
|
|
|
|
|
RIVERVIEW BANCORP, INC. AND
SUBSIDIARY |
|
|
|
|
|
Consolidated Statements of
Income |
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
(In thousands, except share
data) (Unaudited) |
Sept. 30, 2010 |
June 30, 2010 |
Sept. 30, 2009 |
Sept. 30, 2010 |
Sept. 30, 2009 |
INTEREST INCOME: |
|
|
|
|
|
Interest and fees on loans
receivable |
$ 10,672 |
$ 11,193 |
$ 11,639 |
$ 21,865 |
$ 23,349 |
Interest on investment
securities-taxable |
32 |
55 |
66 |
87 |
164 |
Interest on investment
securities-non taxable |
14 |
15 |
31 |
29 |
63 |
Interest on mortgage-backed
securities |
23 |
26 |
35 |
49 |
75 |
Other interest and
dividends |
48 |
15 |
26 |
63 |
40 |
Total interest income |
10,789 |
11,304 |
11,797 |
22,093 |
23,691 |
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
Interest on deposits |
1,764 |
1,901 |
2,448 |
3,665 |
5,142 |
Interest on borrowings |
375 |
385 |
436 |
760 |
956 |
Total interest expense |
2,139 |
2,286 |
2,884 |
4,425 |
6,098 |
Net interest income |
8,650 |
9,018 |
8,913 |
17,668 |
17,593 |
Less provision for loan losses |
1,675 |
1,300 |
3,200 |
2,975 |
5,550 |
|
|
|
|
|
|
Net interest income after provision for loan
losses |
6,975 |
7,718 |
5,713 |
14,693 |
12,043 |
|
|
|
|
|
|
NON-INTEREST INCOME: |
|
|
|
|
|
Fees and service charges |
1,077 |
1,099 |
1,151 |
2,176 |
2,395 |
Asset management fees |
492 |
521 |
465 |
1,013 |
974 |
Gain on sale of loans held for
sale |
124 |
119 |
159 |
243 |
560 |
Impairment of investment
security |
-- |
-- |
(201) |
-- |
(459) |
Bank owned life insurance
income |
150 |
150 |
151 |
300 |
302 |
Other |
207 |
347 |
70 |
554 |
126 |
Total non-interest income |
2,050 |
2,236 |
1,795 |
4,286 |
3,898 |
|
|
|
|
|
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
Salaries and employee benefits |
4,085 |
3,940 |
3,689 |
8,025 |
7,564 |
Occupancy and depreciation |
1,148 |
1,141 |
1,217 |
2,289 |
2,450 |
Data processing |
248 |
252 |
237 |
500 |
477 |
Amortization of core deposit intangible |
23 |
26 |
28 |
49 |
58 |
Advertising and marketing expense |
255 |
135 |
151 |
390 |
310 |
FDIC insurance premium |
417 |
421 |
445 |
838 |
1,140 |
State and local taxes |
147 |
171 |
151 |
318 |
300 |
Telecommunications |
105 |
107 |
113 |
212 |
229 |
Professional fees |
321 |
326 |
330 |
647 |
634 |
Real estate owned expenses |
120 |
166 |
353 |
286 |
962 |
Other |
543 |
580 |
553 |
1,123 |
1,131 |
Total non-interest expense |
7,412 |
7,265 |
7,267 |
14,677 |
15,255 |
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
1,613 |
2,689 |
241 |
4,302 |
686 |
PROVISION FOR INCOME TAXES |
496 |
924 |
39 |
1,420 |
141 |
NET INCOME |
$ 1,117 |
$ 1,765 |
$ 202 |
$ 2,882 |
$ 545 |
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
Basic |
$ 0.06 |
$ 0.16 |
$ 0.02 |
$ 0.20 |
$ 0.05 |
Diluted |
$ 0.06 |
$ 0.16 |
$ 0.02 |
$ 0.20 |
$ 0.05 |
Weighted average number of shares
outstanding: |
|
|
|
|
|
Basic |
18,033,354 |
10,735,946 |
10,717,471 |
14,404,588 |
10,714,409 |
Diluted |
18,033,354 |
10,735,946 |
10,717,471 |
14,404,588 |
10,714,409 |
|
|
|
(Dollars in thousands) |
At or for the three
months ended |
At or for the six months
ended |
|
Sept. 30, 2010 |
June 30, 2010 |
Sept. 30, 2009 |
Sept. 30, 2010 |
Sept. 30, 2009 |
AVERAGE
BALANCES |
|
|
|
|
|
Average interest–earning assets |
$ 769,423 |
$ 755,123 |
$ 813,673 |
$ 762,312 |
$ 817,531 |
Average interest-bearing liabilities |
658,973 |
656,099 |
707,876 |
657,543 |
717,257 |
Net average earning assets |
110,450 |
99,024 |
105,797 |
104,769 |
100,274 |
Average loans |
707,944 |
729,851 |
765,470 |
718,838 |
778,438 |
Average deposits |
716,279 |
699,483 |
655,388 |
707,926 |
650,691 |
Average equity |
100,306 |
86,431 |
91,303 |
93,407 |
90,894 |
Average tangible equity |
73,969 |
60,051 |
64,803 |
67,049 |
64,400 |
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY |
Sept. 30, 2010 |
June 30, 2010 |
Sept. 30, 2009 |
|
|
|
|
|
|
|
|
Non-performing loans |
35,346 |
32,954 |
36,085 |
|
|
Non-performing loans to total loans |
5.06% |
4.59% |
4.82% |
|
|
Real estate/repossessed assets owned |
19,766 |
14,908 |
20,482 |
|
|
Non-performing assets |
55,112 |
47,862 |
56,567 |
|
|
Non-performing assets to total assets |
6.42% |
5.54% |
6.55% |
|
|
Net loan charge-offs in the quarter |
2,211 |
3,377 |
2,905 |
|
|
Net charge-offs in the quarter/average net
loans |
1.24% |
1.86% |
1.51% |
|
|
|
|
|
|
|
|
Allowance for loan losses |
19,029 |
19,565 |
18,071 |
|
|
Allowance for loan losses and unfunded
loan commitments |
19,188 |
19,755 |
18,355 |
|
|
Average interest-earning assets to
average interest-bearing liabilities |
116.76% |
115.09% |
114.95% |
|
|
Allowance for loan losses
to non-performing loans |
53.84% |
59.37% |
50.08% |
|
|
Allowance for loan losses to total loans |
2.72% |
2.73% |
2.41% |
|
|
Allowance for loan losses and unfunded
loan commitments to total loans |
2.75% |
2.75% |
2.45% |
|
|
Shareholders' equity to assets |
12.31% |
9.93% |
10.37% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN
MIX |
Sept. 30, 2010 |
June 30, 2010 |
Sept. 30, 2009 |
March 31, 2010 |
|
Commercial and construction |
|
|
|
|
|
Commercial |
$ 93,026 |
$ 106,002 |
$ 112,578 |
$ 108,368 |
|
Other real estate mortgage |
458,621 |
455,106 |
449,405 |
459,178 |
|
Real estate construction |
52,262 |
68,717 |
94,319 |
75,456 |
|
Total commercial and
construction |
603,909 |
629,825 |
656,302 |
643,002 |
|
Consumer |
|
|
|
|
|
Real estate one-to-four
family |
92,682 |
84,956 |
88,862 |
88,861 |
|
Other installment |
2,363 |
2,579 |
3,134 |
2,616 |
|
Total consumer |
95,045 |
87,535 |
91,996 |
91,477 |
|
|
|
|
|
|
|
Total loans |
698,954 |
717,360 |
748,298 |
734,479 |
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
Allowance for loan losses |
19,029 |
19,565 |
18,071 |
21,642 |
|
Loans receivable, net |
$ 679,925 |
$ 697,795 |
$ 730,227 |
$ 712,837 |
|
|
|
|
COMPOSITION OF
COMMERCIAL AND CONSTRUCTION LOANS |
|
|
|
|
|
|
|
|
|
Commercial |
|
Commercial |
|
|
Real Estate |
Real Estate |
& Construction |
|
Commercial |
Mortgage |
Construction |
Total |
September 30,
2010 |
(Dollars in thousands) |
Commercial |
$ 93,026 |
$ -- |
$ -- |
$ 93,026 |
Commercial construction |
-- |
-- |
25,329 |
25,329 |
Office buildings |
-- |
88,374 |
-- |
88,374 |
Warehouse/industrial |
-- |
47,089 |
-- |
47,089 |
Retail/shopping centers/strip malls |
-- |
93,799 |
-- |
93,799 |
Assisted living facilities |
-- |
35,955 |
-- |
35,955 |
Single purpose facilities |
-- |
94,734 |
-- |
94,734 |
Land |
-- |
62,571 |
-- |
62,571 |
Multi-family |
-- |
36,099 |
-- |
36,099 |
One-to-four family |
-- |
-- |
26,933 |
26,933 |
Total |
$ 93,026 |
$ 458,621 |
$ 52,262 |
$ 603,909 |
|
|
|
|
|
March 31, 2010 |
(Dollars in thousands) |
Commercial |
$ 108,368 |
$ -- |
$ -- |
$ 108,368 |
Commercial construction |
-- |
-- |
40,017 |
40,017 |
Office buildings |
-- |
90,000 |
-- |
90,000 |
Warehouse/industrial |
-- |
46,731 |
-- |
46,731 |
Retail/shopping centers/strip malls |
-- |
80,982 |
-- |
80,982 |
Assisted living facilities |
-- |
39,604 |
-- |
39,604 |
Single purpose facilities |
-- |
93,866 |
-- |
93,866 |
Land |
-- |
74,779 |
-- |
74,779 |
Multi-family |
-- |
33,216 |
-- |
33,216 |
One-to-four family |
-- |
-- |
35,439 |
35,439 |
Total |
$ 108,368 |
$ 459,178 |
$ 75,456 |
$ 643,002 |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
DEPOSIT
MIX |
Sept. 30, 2010 |
June 30, 2010 |
Sept. 30, 2009 |
March 31, 2010 |
|
|
|
|
|
Interest checking |
$ 82,318 |
$ 78,837 |
$ 69,507 |
$ 70,837 |
Regular savings |
35,132 |
32,837 |
28,858 |
32,131 |
Money market deposit accounts |
207,607 |
209,588 |
189,150 |
209,580 |
Non-interest checking |
93,590 |
89,006 |
87,495 |
83,794 |
Certificates of deposit |
299,381 |
305,305 |
287,484 |
291,706 |
Total deposits |
$ 718,028 |
$ 715,573 |
$ 662,494 |
$ 688,048 |
|
|
|
|
|
|
|
DETAIL OF NON-PERFORMING
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest |
Other |
Southwest |
Other |
|
|
|
Oregon |
Oregon |
Washington |
Washington |
Other |
Total |
September 30,
2010 |
(dollars in thousands) |
Non-performing assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ 1,293 |
$ 2,534 |
$ 3,297 |
$ -- |
$ -- |
$ 7,124 |
Commercial real estate |
1,212 |
6,547 |
751 |
-- |
1,030 |
9,540 |
Land |
-- |
1,165 |
6,427 |
147 |
1,379 |
9,118 |
Multi-family |
-- |
-- |
-- |
-- |
-- |
-- |
Commercial construction |
-- |
-- |
-- |
-- |
-- |
-- |
One-to-four family
construction |
3,300 |
3,612 |
1,138 |
-- |
-- |
8,050 |
Real estate one-to-four
family |
249 |
310 |
790 |
165 |
-- |
1,514 |
Consumer |
-- |
-- |
-- |
-- |
-- |
-- |
Total non-performing loans |
6,054 |
14,168 |
12,403 |
312 |
2,409 |
35,346 |
|
|
|
|
|
|
|
REO |
4,247 |
2,439 |
8,281 |
4,799 |
-- |
19,766 |
|
|
|
|
|
|
|
Total non-performing assets |
$ 10,301 |
$ 16,607 |
$ 20,684 |
$ 5,111 |
$ 2,409 |
$ 55,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF SPEC
CONSTRUCTION AND LAND DEVELOPMENT LOANS |
|
|
|
|
|
|
|
|
|
|
|
Northwest |
Other |
Southwest |
Other |
|
|
|
Oregon |
Oregon |
Washington |
Washington |
Other |
Total |
September 30,
2010 |
(dollars in thousands) |
Land and Spec Construction Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Development Loans |
$ 6,785 |
$ 4,177 |
$ 43,128 |
$ 146 |
$ 8,335 |
$ 62,571 |
Spec Construction Loans |
3,300 |
10,082 |
11,022 |
-- |
-- |
24,404 |
|
|
|
|
|
|
|
Total Land and Spec Construction |
$ 10,085 |
$ 14,259 |
$ 54,150 |
$ 146 |
$ 8,335 |
$ 86,975 |
|
|
|
|
At or for the
three months ended |
At or for the six
months ended |
SELECTED OPERATING DATA |
Sept. 30, 2010 |
June 30, 2010 |
Sept. 30, 2009 |
Sept. 30, 2010 |
Sept. 30, 2009 |
|
|
|
|
|
|
Efficiency ratio (4) |
69.27% |
64.55% |
67.87% |
66.85% |
70.98% |
Coverage ratio (6) |
116.70% |
124.13% |
122.65% |
120.38% |
115.33% |
Return on average assets (1) |
0.52% |
0.84% |
0.09% |
0.68% |
0.12% |
Return on average equity (1) |
4.42% |
8.19% |
0.88% |
6.15% |
1.20% |
Average rate earned on interest-earned
assets |
5.57% |
6.01% |
5.76% |
5.78% |
5.79% |
Average rate paid on interest-bearing
liabilities |
1.29% |
1.40% |
1.62% |
1.34% |
1.70% |
Spread (7) |
4.28% |
4.61% |
4.14% |
4.44% |
4.09% |
Net interest margin |
4.46% |
4.79% |
4.35% |
4.63% |
4.30% |
|
|
|
|
|
|
PER SHARE DATA |
|
|
|
|
|
Basic earnings per share (2) |
$ 0.06 |
$ 0.16 |
$ 0.02 |
$ 0.20 |
$ 0.05 |
Diluted earnings per share (3) |
0.06 |
0.16 |
0.02 |
0.20 |
0.05 |
Book value per share (5) |
4.70 |
7.85 |
8.20 |
4.70 |
8.20 |
Tangible book value per share (5) |
3.53 |
5.43 |
5.78 |
3.53 |
5.78 |
Market price per share: |
|
|
|
|
|
High for the period |
$ 2.49 |
$ 3.81 |
$ 4.32 |
$ 3.81 |
$ 4.32 |
Low for the period |
1.73 |
2.24 |
2.95 |
1.73 |
2.63 |
Close for period end |
1.98 |
2.43 |
3.70 |
1.98 |
3.70 |
Cash dividends declared per share |
-- |
-- |
-- |
-- |
-- |
|
|
|
|
|
|
Average number of shares outstanding: |
|
|
|
|
|
Basic (2) |
18,033,354 |
10,735,946 |
10,717,471 |
14,404,588 |
10,714,409 |
Diluted (3) |
18,033,354 |
10,735,946 |
10,717,471 |
14,404,588 |
10,714,409 |
(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: Riverview Bancorp, Inc.
Pat Sheaffer
Ron Wysaske
360-693-6650
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