Fourth Quarter and Fiscal 2010 Highlights (at or for the period
ended March 31, 2010)
-
Net interest margin improved for the fifth consecutive quarter
by an additional 11 basis points to 4.54% compared to the preceding
quarter.
-
Capital levels remain strong - total risk-based capital ratio is
at 12.11%, significantly above the "well-capitalized"
designation.
-
Non-performing assets declined $10.1 million, or 17%, since
December 31, 2009.
-
Real estate owned (REO) decreased 42% from the preceding quarter
to $13.3 million.
-
Allowance for loan losses increased to 2.95% of total loans and
60.10% of non-performing loans.
-
Customer branch deposits increased $51.3 million since prior
year-end and $6.6 million during the quarter.
-
Reduced Federal Home Loan Bank advances and Federal Reserve
borrowings by $25.3 million to $33.0 million at March 31, 2010;
down $89.9 million from $122.9 million one year ago.
-
Reduced residential construction loans by 52% compared to March
31, 2009.
-
Riverview Asset Management Corp. (trust company) increased its
assets under management to $279 million with total fee income of
$1.9 million for the past fiscal year.
-
Riverview has continued to operate without government assistance
including the government's TARP program.
Riverview Bancorp, Inc. (Nasdaq:RVSB) ("Riverview" or the
"Company") today reported that following a $5.9 million provision
for loan losses the Company reported a net loss of $4.7 million, or
$0.44 per diluted share, for the fourth fiscal quarter ended March
31, 2010. In the fourth quarter a year ago, Riverview reported a
net loss of $720,000, or $0.07 per diluted share. Our results for
the fourth quarter reflect an improvement in our net interest
margin, strong branch deposit growth, solid capital levels and
improved credit metrics.
"Lower deposit costs and continued improvement in our balance
sheet mix resulted in an expansion of our net interest margin
during the quarter," said Pat Sheaffer, Chairman and CEO. "While
our increased provision for loan losses put a damper on
profitability, we are encouraged with the progress we have made as
we move through this economic phase. Non-performing assets declined
during the quarter and remain manageable while our capital and
liquidity levels remain strong. This reduction, coupled with the
core deposit growth has reduced risk in our balance sheet and
improved our net interest margin. We are optimistic that the future
bodes well and we are moving in a positive direction. We have
aggressively recognized and managed our problem credits, which are
reflected in our net charge offs and provisions, and we are pleased
that credit quality is showing signs of stabilization and
improvement."
For fiscal 2010, Riverview reported a net loss of $5.4 million,
or $0.51 per diluted share, compared to a net loss of $2.7 million,
or $0.25 per diluted share, for fiscal 2009. Fiscal 2010 results
include a $15.9 million provision for loan losses, compared to a
$16.2 million provision for loan losses in fiscal 2009.
Credit Quality
"We have taken charges on many of our non-performing loans and
REO properties based on recently updated appraisals," said Dave
Dahlstrom, EVP and Chief Credit Officer. "These conforming
appraised values are viewed as representing a market trough, and
therefore we are optimistic about future operating results. We
continue to build our allowance with a provision that is well in
excess of charge-offs as we work to stay ahead of any problem
credits." During the fourth fiscal quarter ended March 31, 2010,
the provision for loan losses was $5.9 million compared to $2.4
million in net charge-offs.
Non-performing assets decreased $10.1 million to $49.3 million,
or 5.89% of total assets, at March 31, 2010 compared to $59.5
million, or 6.93% of total assets, at December 31, 2009. "Our
highest priority continues to be the reduction in our
non-performing assets," said Dahlstrom. "We are encouraged by these
reductions which reflect the strong effort our team has put into
managing these problem assets over the past several quarters. Our
level of NPAs have remained stable during the past three quarters
before declining in the fourth quarter."
Non-performing loans continued to trend down, improving to $36.0
million during the quarter compared to $41.1 million at their peak
at June 30, 2009. Non-performing loans represented 4.90% of total
loans at March 31, 2010, down from the peak of 5.28% of total loans
at June 30, 2009. Land acquisition and development loans and
speculative construction loans represent $23.9 million, or 66%, of
the total NPL balance at March 31, 2010.
REO decreased by $9.7 million, or 42%, during the fourth quarter
to $13.3 million at March 31, 2010, compared to $23.1 million at
December 31, 2009. The decrease was primarily due to sales of
properties totaling $9.8 million and write-downs of $3.9 million.
"We are continuing to see signs of increased sales activity within
our local markets, albeit at lower prices than a year ago," stated
Dahlstrom. "During this past quarter, we sold a total of 23
properties and we have several additional properties currently
under contract." The REO balance consists primarily of completed
residential properties and residential building land and lots.
Real Estate Owned
|
|
(dollars in thousands)
|
|
Balance at December 31, 2009
|
$23,051
|
Additions
|
3,955
|
Sales
|
(9,782)
|
Write-downs
|
(3,899)
|
Balance at March 31, 2010
|
$13,325
|
The Company has continued to reduce its exposure to land
development and speculative construction loans. The total land
development and speculative construction loan portfolios declined
to $105.4 million compared to $149.6 million a year ago.
Speculative construction loans have declined $27.1 million, or
47.0%, since March 31, 2009. Speculative construction loans
represented 4.2% of the total loan portfolio at March 31, 2010.
Land development loans decreased $17.1 million, or 18.6%, since
March 31, 2009. Land development loans represented 10.2% of the
total loan portfolio at March 31, 2010.
The Company has continued to perform a variety of stress tests
on the land development and speculative construction loan
portfolios. As part of these tests, the Company has received
updated appraisals throughout the year on the underlying collateral
for substantially all of these loans. Whenever possible, these
borrowers have pledged additional collateral and/or guarantor
support to cover deficits from the updated appraised amount, which
has resulted in substantial reductions in the loan to value ratios.
Additionally, the Company has seen an increase in sales activity on
these existing projects as credit administration continues to
monitor and work closely with these borrowers. As a result of these
combined efforts, the Company believes it has significantly reduced
its potential exposure to future losses on the remaining loans in
these two portfolios.
The Company's commercial real estate (CRE) portfolio continues
to perform extremely well despite the negative national press these
types of loans have received. As of March 31, 2010, the Company
only had three CRE loans on non-accrual totaling $3.0 million, or
0.85% of total CRE loans. "Our underwriting standards for this
portfolio, which include a minimum debt service coverage ratio of
1.20 or greater, a maximum loan-to-value of 75% and required
personal guarantees, have significantly contributed to this strong
performance during the current economic cycle," added Dahlstrom.
"We have not seen systemic problems within this portfolio, and we
believe that we are well positioned to manage this portfolio." The
total CRE loan portfolio was $351.2 million as of March 31, 2010,
of which 31% was owner-occupied and 69% was investor-owned.
The Company has continued to build its reserves to protect
against the uncertain economic environment. The allowance for loan
losses increased to $21.6 million at March 31, 2010 compared to
$18.2 million at December 31, 2009 and $17.0 million a year ago.
The allowance for loan losses now represents 2.95% of total loans
compared to 2.47% at December 31, 2009 and 2.12% a year ago. The
Company's allowance to non-performing loans improved during the
quarter to 60.10% at March 31, 2010 compared to 50.08% at December
31, 2009.
Capital and Liquidity
As of March 31, 2010, total shareholders' equity was $83.9
million. Book value was $7.68 per share at March 31, 2010 compared
to $8.12 a year earlier and tangible book value was $5.27 at March
31, 2010 compared to $5.69 a year earlier. Riverview's capital
levels continue to exceed regulatory levels for well-capitalized
banks with a total risk-based capital ratio of 12.11% and a Tier 1
capital ratio of 10.85% as of March 31, 2010. Riverview's tangible
common shareholder equity was 7.1% of tangible assets at March 31,
2010 compared to 7.5% at December 31, 2009 and 7.0% a year
earlier.
Riverview Community Bank's actual and required minimum capital
amounts and ratios are presented as follows:
March 31, 2010
|
Actual
|
Adequately Capitalized
|
Well Capitalized
|
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Total Capital
|
(dollars in thousands)
|
(To Risk-Weighted Assets)
|
$ 89,048
|
12.11%
|
$ 58,835
|
8.00%
|
$ 73,544
|
10.00%
|
Tier 1 Capital
|
|
|
|
|
|
|
(To Risk-Weighted Assets)
|
79,801
|
10.85%
|
29,417
|
4.00%
|
44,126
|
6.00%
|
Tier 1 Capital
|
|
|
|
|
|
|
(To Adjusted Tangible Assets)
|
79,801
|
9.84%
|
32,453
|
4.00%
|
40,566
|
5.00%
|
"We continue to focus on maintaining our already strong
liquidity position. Not only is Riverview well-capitalized but we
have sufficient liquidity to meet our customer's needs," said Ron
Wysaske, President and COO. At March 31, 2010, Riverview had
available contingent liquidity of over $300 million through
existing funding sources including the Federal Home Loan Bank and
the Federal Reserve Bank.
Balance Sheet Review
Net loans declined $8.3 million during the quarter to $712.8
million at March 31, 2010, compared to $721.2 million at December
31, 2009, and $784.1 million a year ago, as we continue to see
diminished loan demand reflecting the continued weak economic
conditions. "We originated over $33 million in new loans during the
quarter, primarily for commercial and small businesses in our
communities, as well as to individuals for the purchase or
refinance of single-family homes," added Wysaske. "We continue to
focus on further reducing the overall risk profile in our loan
portfolio, particularly in the residential construction and land
development sectors."
During the fourth quarter, the Company continued to expand on
the core deposit growth it has experienced during the past three
quarters. "Our organic growth in deposits represents new and
existing customers and is attributable to the 17 branch network,
the hard work of our employees and our customer's confidence in the
Bank," said Wysaske. "In the past fiscal year, customer branch
deposits have grown by $51.3 million." Total deposits increased to
$688.0 million at March 31, 2010 compared to $679.6 million three
months earlier and $670.1 million a year ago. At March 31, 2010,
Riverview had no wholesale-brokered deposits in its deposit mix.
The Company strengthened its balance sheet by lowering its
loan-to-deposit ratio from a high of 120% at March 31, 2009 down to
its current level of 107% at March 31, 2010.
Net Interest Margin
Riverview's net interest margin increased again for the fifth
consecutive quarter to 4.54%, an 11 basis point improvement
compared to the preceding quarter and a 56 basis point improvement
compared to the fourth quarter a year ago. "Our solid net interest
margin continues to be a primary strength for the Company and one
of the highest amongst our regional peer banks," said Kevin
Lycklama, EVP and CFO. "The reason for our margin expansion has
been the continued reduction in our deposit costs and a stabilized
asset yield. The average rate paid on interest-bearing deposits
decreased by 18 basis points compared to the preceding quarter,
while the yield on interest-earning assets increased by two basis
points. This margin expansion is despite the reversal of interest
on loans placed on non-accrual status during the quarter, which
accounted for a seven basis point decrease in the quarterly
margin."
Income Statement
Operating revenue, which consists of net interest income plus
non-interest income, increased $3.0 million in fiscal year 2010
compared to fiscal year 2009. Net interest income increased 3.4% to
$8.6 million in the fourth quarter compared to $8.3 million in the
same period a year ago. For fiscal 2010, net interest income
increased 3.6% to $34.9 million compared to $33.7 million for
fiscal 2009. Riverview's net interest income improvement reflected
the continued expansion of the Company's net interest margin.
Non-interest income increased $1.7 million, or 31.4%, in fiscal
year 2010 to $7.3 million compared to $5.5 million for fiscal 2009.
During fiscal 2010, Riverview recognized a total of $1.0 million in
other than temporary impairment (OTTI) charges on an investment in
a trust preferred security compared to $3.4 million in OTTI charges
on this same investment security in prior year. The amortized cost
of this security was $3.0 million at March 31, 2010. Non-interest
income was $1.8 million in the fourth quarter of fiscal 2010,
compared to $2.8 million in the fourth quarter a year ago. The
decrease from prior year was primarily due to a reduction in
mortgage broker income, a decrease in gains on loans held for sale
and an OTTI charge on an investment in a trust preferred security.
A decline in mortgage refinancing activity and slower home sales
led to the declines in both gains on sale of loans held for sale
and mortgage broker fees compared to the same period in prior
year.
"Despite the Company's efforts to reduce controllable costs,
costs related to the current credit cycle continue to impact our
non-interest expense. REO related costs have resulted in an
increase in non-interest expense both for the fourth quarter and
the full year," said Lycklama. "During the fourth quarter of fiscal
2010 we incurred $4.6 million in REO related expenses of which $3.9
million was attributed to write-downs on existing REO properties."
FDIC assessments also increased $1.2 million in fiscal 2010
compared to fiscal 2009. For fiscal 2010, non-interest expense
totaled $35.0 million compared to $27.3 million for fiscal
2009.
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. The Company 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, the Company 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).
|
March 31,
|
December 31,
|
March 31,
|
(Dollars in thousands)
|
2010
|
2009
|
2009
|
|
|
|
|
Shareholders' equity
|
$83,934
|
$88,607
|
$88,663
|
Goodwill
|
25,572
|
25,572
|
25,572
|
Other intangible assets, net
|
823
|
853
|
893
|
|
|
|
|
Tangible shareholders' equity
|
$57,539
|
$62,182
|
$62,198
|
|
|
|
|
Total assets
|
$837,953
|
$857,597
|
$914,333
|
Goodwill
|
25,572
|
25,572
|
25,572
|
Other intangible assets, net
|
823
|
853
|
893
|
|
|
|
|
Tangible assets
|
$811,558
|
$831,172
|
$887,868
|
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 $838 million, it is the parent company
of the 87-year-old Riverview Community Bank, as well as Riverview
Mortgage and Riverview Asset Management Corp. There are 17
branches, including ten in Clark County, two in Multnomah County
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; 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; 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)
|
Mar. 31, 2010
|
Dec. 31, 2009
|
Mar. 31, 2009
|
ASSETS
|
|
|
|
|
|
|
|
Cash (including interest-earning accounts of $3,384, $1,157, and
$6,405)
|
$ 13,587
|
$ 15,506
|
$ 19,199
|
Loans held for sale
|
255
|
250
|
1,332
|
Investment securities held to maturity, at amortized cost
|
517
|
517
|
529
|
Investment securities available for sale, at fair value
|
6,802
|
6,923
|
8,490
|
Mortgage-backed securities held to maturity, at amortized
|
259
|
331
|
570
|
Mortgage-backed securities available for sale, at fair value
|
2,828
|
3,102
|
4,066
|
Loans receivable (net of allowance for loan losses of
$21,642, $18,229 and $16,974)
|
712,837
|
721,180
|
784,117
|
Real estate and other pers. property owned
|
13,325
|
23,051
|
14,171
|
Prepaid expenses and other assets
|
7,934
|
8,982
|
2,518
|
Accrued interest receivable
|
2,849
|
2,639
|
3,054
|
Federal Home Loan Bank stock, at cost
|
7,350
|
7,350
|
7,350
|
Premises and equipment, net
|
16,487
|
18,267
|
19,514
|
Deferred income taxes, net
|
11,177
|
7,869
|
8,209
|
Mortgage servicing rights, net
|
509
|
512
|
468
|
Goodwill
|
25,572
|
25,572
|
25,572
|
Core deposit intangible, net
|
314
|
341
|
425
|
Bank owned life insurance
|
15,351
|
15,205
|
14,749
|
|
|
|
|
TOTAL ASSETS
|
$ 837,953
|
$ 857,597
|
$ 914,333
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
LIABILITIES:
|
|
|
|
Deposit accounts
|
$ 688,048
|
$ 679,570
|
$ 670,066
|
Accrued expenses and other liabilities
|
6,833
|
5,263
|
6,700
|
Advance payments by borrowers for taxes and insurance
|
427
|
148
|
360
|
Federal Home Loan Bank advances
|
23,000
|
--
|
37,850
|
Federal Reserve Bank advances
|
10,000
|
58,300
|
85,000
|
Junior subordinated debentures
|
22,681
|
22,681
|
22,681
|
Capital lease obligation
|
2,610
|
2,620
|
2,649
|
Total liabilities
|
753,599
|
768,582
|
825,306
|
|
|
|
|
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,
March 31, 2010 – 10,923,773 issued and outstanding;
|
109
|
109
|
109
|
December 31, 2009 – 10,923,773 issued and outstanding;
|
|
|
|
March 31, 2009 – 10,923,773 issued and outstanding;
|
|
|
|
Additional paid-in capital
|
46,948
|
46,920
|
46,866
|
Retained earnings
|
38,878
|
43,581
|
44,322
|
Unearned shares issued to employee stock ownership trust
|
(799)
|
(825)
|
(902)
|
Accumulated other comprehensive loss
|
(1,202)
|
(1,178)
|
(1,732)
|
Total shareholders' equity
|
83,934
|
88,607
|
88,663
|
|
|
|
|
Noncontrolling interest
|
420
|
408
|
364
|
Total equity
|
84,354
|
89,015
|
89,027
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$ 837,953
|
$ 857,597
|
$ 914,333
|
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
|
|
|
|
|
|
Consolidated Statements of Operations
|
|
|
|
|
|
|
Three Months Ended
|
Twelve Months Ended
|
(In thousands, except share
data) (Unaudited)
|
March 31, 2010
|
Dec. 31, 2009
|
March 31, 2009
|
March 31, 2010
|
March 31, 2009
|
INTEREST INCOME:
|
|
|
|
|
|
Interest and fees on loans receivable
|
$ 10,950
|
$ 11,376
|
$ 12,195
|
$ 45,675
|
$ 51,883
|
Interest on investment securities-taxable
|
47
|
56
|
100
|
267
|
407
|
Interest on investment securities-non taxable
|
15
|
26
|
32
|
104
|
137
|
Interest on mortgage-backed securities
|
29
|
32
|
44
|
136
|
211
|
Other interest and dividends
|
17
|
23
|
12
|
80
|
212
|
Total interest income
|
11,058
|
11,513
|
12,383
|
46,262
|
52,850
|
|
|
|
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
Interest on deposits
|
2,102
|
2,391
|
3,431
|
9,635
|
15,279
|
Interest on borrowings
|
389
|
396
|
665
|
1,741
|
3,904
|
Total interest expense
|
2,491
|
2,787
|
4,096
|
11,376
|
19,183
|
Net interest income
|
8,567
|
8,726
|
8,287
|
34,886
|
33,667
|
Less provision for loan losses
|
5,850
|
4,500
|
5,000
|
15,900
|
16,150
|
|
|
|
|
|
|
Net interest income after provision for loan losses
|
2,717
|
4,226
|
3,287
|
18,986
|
17,517
|
|
|
|
|
|
|
NON-INTEREST INCOME:
|
|
|
|
|
|
Total other-than-temporary impairment losses
|
(202)
|
(510)
|
--
|
(1,105)
|
--
|
Portion recognized in other comprehensive loss
|
114
|
54
|
--
|
102
|
--
|
Net impairment losses recognized in earnings
|
(88)
|
(456)
|
--
|
(1,003)
|
--
|
|
|
|
|
|
|
Fees and service charges
|
997
|
1,121
|
1,136
|
4,513
|
4,669
|
Asset management fees
|
451
|
460
|
438
|
1,885
|
2,077
|
Gain on sale of loans held for sale
|
175
|
152
|
493
|
887
|
729
|
Impairment of investment security
|
--
|
--
|
--
|
--
|
(3,414)
|
Bank owned life insurance income
|
147
|
154
|
134
|
603
|
572
|
Other
|
164
|
91
|
558
|
381
|
897
|
Total non-interest income
|
1,846
|
1,522
|
2,759
|
7,266
|
5,530
|
|
|
|
|
|
|
NON-INTEREST EXPENSE:
|
|
|
|
|
|
Salaries and employee benefits
|
4,021
|
3,741
|
3,468
|
15,326
|
15,080
|
Occupancy and depreciation
|
1,123
|
1,241
|
1,339
|
4,814
|
5,064
|
Data processing
|
252
|
228
|
219
|
957
|
841
|
Amortization of core deposit intangible
|
27
|
26
|
32
|
111
|
131
|
Advertising and marketing expense
|
105
|
212
|
117
|
627
|
727
|
FDIC insurance premium
|
394
|
378
|
359
|
1,912
|
760
|
State and local taxes
|
326
|
106
|
160
|
732
|
668
|
Telecommunications
|
104
|
107
|
115
|
440
|
466
|
Professional fees
|
391
|
292
|
380
|
1,317
|
1,110
|
Real estate owned expenses
|
4,634
|
826
|
164
|
6,421
|
317
|
Other
|
549
|
635
|
624
|
2,316
|
2,095
|
Total non-interest expense
|
11,926
|
7,792
|
6,977
|
34,973
|
27,259
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES
|
(7,363)
|
(2,044)
|
(931)
|
(8,721)
|
(4,212)
|
BENEFIT FOR INCOME TAXES
|
(2,660)
|
(758)
|
(211)
|
(3,277)
|
(1,562)
|
NET LOSS
|
$ (4,703)
|
$ (1,286)
|
$ (720)
|
$ (5,444)
|
$ (2,650)
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
Basic
|
$ (0.44)
|
$ (0.12)
|
$ (0.07)
|
$ (0.51)
|
$ (0.25)
|
Diluted
|
$ (0.44)
|
$ (0.12)
|
$ (0.07)
|
$ (0.51)
|
$ (0.25)
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
Basic
|
10,729,788
|
10,723,628
|
10,705,155
|
10,720,525
|
10,693,795
|
Diluted
|
10,729,788
|
10,723,628
|
10,705,155
|
10,720,525
|
10,693,795
|
(Dollars in thousands)
|
At or for the three months ended
|
At or for the twelve months ended
|
|
March 31, 2010
|
Dec. 31, 2009
|
March 31, 2009
|
March 31, 2010
|
March 31, 2009
|
AVERAGE BALANCES
|
|
|
|
|
|
Average interest–earning assets
|
$ 766,159
|
$ 783,028
|
$ 846,670
|
$ 796,166
|
$ 827,740
|
Average interest-bearing liabilities
|
686,175
|
680,654
|
741,882
|
697,081
|
720,713
|
Net average earning assets
|
79,984
|
102,374
|
104,788
|
99,085
|
107,027
|
Average loans
|
736,850
|
743,949
|
816,355
|
759,490
|
794,221
|
Average deposits
|
672,852
|
677,437
|
678,989
|
666,181
|
651,598
|
Average equity
|
89,849
|
91,327
|
91,691
|
90,746
|
92,872
|
Average tangible equity
|
63,429
|
64,874
|
65,336
|
64,280
|
66,509
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
March 31, 2010
|
Dec. 31, 2009
|
March 31, 2009
|
|
|
|
|
|
|
|
|
Non-performing loans
|
$ 36,011
|
$ 36,402
|
$ 27,570
|
|
|
Non-performing loans to total loans
|
4.90%
|
4.92%
|
3.44%
|
|
|
Real estate owned
|
13,325
|
23,051
|
14,171
|
|
|
Non-performing assets
|
49,336
|
59,453
|
41,741
|
|
|
Non-performing assets to total assets
|
5.89%
|
6.93%
|
4.57%
|
|
|
Net loan charge-offs in the quarter
|
2,437
|
4,342
|
4,262
|
|
|
Net charge-offs in the quarter/average net loans
|
1.34%
|
2.32%
|
2.12%
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
21,642
|
18,229
|
16,974
|
|
|
Allowance for loan losses and unfunded loan commitments
|
21,827
|
18,502
|
17,270
|
|
|
Average interest-earning assets to average
interest-bearing liabilities
|
111.66%
|
115.04%
|
114.12%
|
|
|
Allowance for loan losses to non-performing loans
|
60.10%
|
50.08%
|
61.57%
|
|
|
Allowance for loan losses to total loans
|
2.95%
|
2.47%
|
2.12%
|
|
|
Allowance for loan losses and unfunded loan
commitments to total loans
|
2.97%
|
2.50%
|
2.15%
|
|
|
Shareholders' equity to assets
|
10.02%
|
10.33%
|
9.70%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN MIX
|
March 31, 2010
|
Dec. 31, 2009
|
March 31, 2009
|
|
|
Commercial and construction
|
|
|
|
|
|
Commercial
|
$ 108,368
|
$ 111,662
|
$ 127,150
|
|
|
Other real estate mortgage
|
459,178
|
454,345
|
447,652
|
|
|
Real estate construction
|
75,456
|
82,116
|
139,476
|
|
|
Total commercial and construction
|
643,002
|
648,123
|
714,278
|
|
|
Consumer
|
|
|
|
|
|
Real estate one-to-four family
|
88,861
|
88,507
|
83,762
|
|
|
Other installment
|
2,616
|
2,779
|
3,051
|
|
|
Total consumer
|
91,477
|
91,286
|
86,813
|
|
|
|
|
|
|
|
|
Total loans
|
734,479
|
739,409
|
801,091
|
|
|
|
|
|
|
|
|
Less:
|
|
|
|
|
|
Allowance for loan losses
|
21,642
|
18,229
|
16,974
|
|
|
Loans receivable, net
|
$ 712,837
|
$ 721,180
|
$ 784,117
|
|
|
COMPOSITION OF COMMERCIAL AND
CONSTRUCTION LOANS
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
Commercial
|
|
|
Real Estate
|
Real Estate
|
& Construction
|
|
Commercial
|
Mortgage
|
Construction
|
Total
|
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
|
|
|
|
|
|
March 31, 2009
|
(dollars in thousands)
|
Commercial
|
$ 127,150
|
$ --
|
$ --
|
$ 127,150
|
Commercial construction
|
--
|
--
|
65,459
|
65,459
|
Office buildings
|
--
|
90,621
|
--
|
90,621
|
Warehouse/industrial
|
--
|
40,214
|
--
|
40,214
|
Retail/shopping centers/strip malls
|
--
|
81,233
|
--
|
81,233
|
Assisted living facilities
|
--
|
26,743
|
--
|
26,743
|
Single purpose facilities
|
--
|
88,574
|
--
|
88,574
|
Land
|
--
|
91,873
|
--
|
91,873
|
Multi-family
|
--
|
28,394
|
--
|
28,394
|
One-to-four family
|
--
|
--
|
74,017
|
74,017
|
Total
|
$ 127,150
|
$ 447,652
|
$ 139,476
|
$ 714,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
DEPOSIT MIX
|
March 31, 2010
|
Dec. 31, 2009
|
March 31, 2009
|
|
|
|
|
|
|
Interest checking
|
$ 70,837
|
$ 74,199
|
$ 96,629
|
|
Regular savings
|
32,131
|
30,153
|
28,753
|
|
Money market deposit accounts
|
209,580
|
195,117
|
178,479
|
|
Non-interest checking
|
83,794
|
83,396
|
88,528
|
|
Certificates of deposit
|
291,706
|
296,705
|
277,677
|
|
Total deposits
|
$ 688,048
|
$ 679,570
|
$ 670,066
|
|
DETAIL OF NON-PERFORMING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
|
Other
|
Southwest
|
Other
|
|
|
|
Oregon
|
Oregon
|
Washington
|
Washington
|
Other
|
Total
|
March 31, 2010
|
(dollars in thousands)
|
Non-performing assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$ 1,138
|
$ 2,724
|
$ 2,568
|
$ --
|
$ --
|
$ 6,430
|
Commercial real estate
|
1,846
|
--
|
1,150
|
--
|
--
|
2,996
|
Land
|
--
|
2,116
|
8,029
|
303
|
1,635
|
12,083
|
Multi-family
|
--
|
--
|
--
|
--
|
--
|
--
|
Commercial construction
|
--
|
--
|
--
|
31
|
--
|
31
|
One-to-four family construction
|
4,356
|
4,141
|
1,734
|
1,564
|
--
|
11,795
|
Real estate one-to-four family
|
1,095
|
310
|
1,271
|
--
|
--
|
2,676
|
Consumer
|
--
|
--
|
--
|
--
|
--
|
--
|
Total non-performing loans
|
8,435
|
9,291
|
14,752
|
1,898
|
1,635
|
36,011
|
|
|
|
|
|
|
|
REO
|
2,741
|
503
|
5,797
|
4,284
|
--
|
13,325
|
|
|
|
|
|
|
|
Total non-performing assets
|
$ 11,176
|
$ 9,794
|
$ 20,549
|
$ 6,182
|
$ 1,635
|
$ 49,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DETAIL OF SPEC CONSTRUCTION AND LAND DEVELOPMENT
LOANS
|
|
|
|
|
|
|
|
|
|
|
|
Northwest
|
Other
|
Southwest
|
Other
|
|
|
|
Oregon
|
Oregon
|
Washington
|
Washington
|
Other
|
Total
|
March 31, 2010
|
(dollars in thousands)
|
Land and spec construction loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land development loans
|
$ 6,911
|
$ 6,301
|
$ 51,899
|
$ 1,649
|
$ 8,019
|
$ 74,779
|
Spec construction loans
|
5,827
|
10,807
|
12,418
|
1,564
|
--
|
30,616
|
|
|
|
|
|
|
|
Total land and spec construction
|
$ 12,738
|
$ 17,108
|
$ 64,317
|
$ 3,213
|
$ 8,019
|
$ 105,395
|
|
|
|
|
At or for the three months ended
|
At or for the twelve months ended
|
SELECTED OPERATING DATA
|
March 31, 2010
|
Dec. 31, 2009
|
March 31, 2009
|
March 31, 2010
|
March 31, 2009
|
|
|
|
|
|
|
Efficiency ratio (4)
|
114.53%
|
76.03%
|
63.16%
|
82.97%
|
69.54%
|
Coverage ratio (6)
|
71.83%
|
111.99%
|
118.78%
|
99.75%
|
123.51%
|
Return on average assets (1)
|
(2.22)%
|
(0.59)%
|
(0.32)%
|
(0.62)%
|
(0.29)%
|
Return on average equity (1)
|
(21.23)%
|
(5.59)%
|
(3.18)%
|
(6.00)%
|
(2.85)%
|
Average rate earned on interest-earned assets
|
5.86%
|
5.84%
|
5.94%
|
5.82%
|
6.39%
|
Average rate paid on interest-bearing liabilities
|
1.47%
|
1.62%
|
2.24%
|
1.63%
|
2.66%
|
Spread (7)
|
4.39%
|
4.22%
|
3.70%
|
4.19%
|
3.73%
|
Net interest margin
|
4.54%
|
4.43%
|
3.98%
|
4.39%
|
4.08%
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
Basic earnings (loss) per share (2)
|
$ (0.44)
|
$ (0.12)
|
$ (0.07)
|
$ (0.51)
|
$ (0.25)
|
Diluted earnings (loss) per share (3)
|
(0.44)
|
(0.12)
|
(0.07)
|
(0.51)
|
(0.25)
|
Book value per share (5)
|
7.68
|
8.11
|
8.12
|
7.68
|
8.12
|
Tangible book value per share (5)
|
5.27
|
5.69
|
5.69
|
5.27
|
5.69
|
Market price per share:
|
|
|
|
|
|
High for the period
|
$ 2.94
|
$ 3.93
|
$ 4.35
|
$ 4.32
|
$ 9.79
|
Low for the period
|
2.21
|
2.24
|
1.60
|
2.21
|
1.60
|
Close for period end
|
2.30
|
2.24
|
3.87
|
2.30
|
3.87
|
Cash dividends declared per share
|
--
|
--
|
--
|
--
|
0.135
|
|
|
|
|
|
|
Average number of shares outstanding:
|
|
|
|
|
|
Basic (2)
|
10,729,788
|
10,723,628
|
10,705,155
|
10,720,525
|
10,693,795
|
Diluted (3)
|
10,729,788
|
10,723,628
|
10,705,155
|
10,720,525
|
10,693,795
|
(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 or Ron Wysaske
360-693-6650
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