• Riverview Bancorp Earns $2.8 Million in First Fiscal Quarter 2024

    المصدر: Nasdaq GlobeNewswire / 27 يوليو 2023 16:00:01   America/New_York

    VANCOUVER, Wash., July 27, 2023 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported earnings of $2.8 million, or $0.13 per diluted share, in the first fiscal quarter ended June 30, 2023, compared to $3.0 million, or $0.14 per diluted share, in the fourth fiscal quarter ended March 31, 2023, and $4.7 million, or $0.21 per diluted share, in the first fiscal quarter a year ago.

    “We delivered solid first fiscal quarter earnings, despite the economic challenges facing the banking industry,” stated Kevin Lycklama, president and chief executive officer. “The continued rise in interest rates, combined with a slowing economic outlook and inflationary pressures, has had an impact on bank profitability nationally, including our operations. We remain committed to building a strong franchise, and our ability to hire talent, generate loans, and digitize our products and services will only further enhance the value of our company over time. Our capital levels remain strong and we are well-positioned to come out stronger and more profitable on the other side of the current economic cycle.”

    First Quarter Highlights (at or for the period ended June 30, 2023)

    • Net income was $2.8 million, or $0.13 per diluted share.
    • Pre-tax, pre-provision for credit losses income (non-GAAP) was $3.7 million for the quarter, compared to $4.8 million for the preceding quarter, and $6.0 million for the year ago quarter.
    • Net interest income was $10.4 million for the quarter, compared to $11.8 million in the preceding quarter and $12.7 million in the first fiscal quarter a year ago.
    • Net interest margin (“NIM”) was 2.79% for the quarter, compared to 3.16% in the preceding quarter and 3.11% for the year ago quarter.
    • Return on average assets was 0.72% and return on average equity was 7.31%.
    • Asset quality remained strong, with non-performing assets excluding SBA and USDA government guaranteed loans (non-GAAP) at $210,000, or 0.01% of total assets at June 30, 2023.
    • Riverview recorded no provision for credit losses during the current quarter, compared to a $750,000 provision for credit losses during the preceding quarter, and no provision for credit losses in the first fiscal quarter a year ago.
    • The allowance for credit losses was $15.3 million, or 1.53% of total loans.
    • Total loans were $1.00 billion at June 30, 2023, compared to $1.01 billion three months earlier and one year earlier.
    • Total deposits were $1.24 billion compared to $1.27 billion three months earlier.
    • Riverview has approximately $231.1 million in available liquidity at June 30, 2023, including $175.7 million of borrowing capacity from Federal Home Loan Bank of Des Moines (“FHLB”) and $55.4 million from the Federal Reserve Bank of San Francisco (“FRB”). Riverview has access but has yet to utilize the Federal Reserve Bank’s Bank Term Funding Program ("BTFP"). At June 30, 2023, the Bank had $136.1 million in outstanding FHLB borrowings.
    • The uninsured deposit ratio was 15.9% at June 30, 2023.
    • Total risk-based capital ratio was 16.82% and Tier 1 leverage ratio was 10.54%.
    • Paid a quarterly cash dividend during the quarter of $0.06 per share.

    Income Statement Review

    Riverview’s net interest income was $10.4 million in the current quarter, compared to $11.8 million in the preceding quarter, and $12.7 million in the first fiscal quarter a year ago. The decrease in net interest income compared to the prior quarter was driven primarily by an increase in interest expense on deposits and borrowings due to rising interest rates.

    Riverview’s NIM was 2.79% for the first quarter of fiscal 2024, a 37 basis-point contraction compared to 3.16% in the preceding quarter and a 32 basis-point decrease compared to 3.11% in the first quarter of fiscal 2023. “The NIM contraction during the current quarter, compared to the prior quarter, was a result of higher interest expense due to increased rates on our deposit products and the interest expense related to our borrowings,” said David Lam, executive vice president and chief financial officer.

    Investment securities totaled $444.2 million at June 30, 2023, compared to $455.3 million at March 31, 2023. The average securities balances for the quarters ended June 30, 2023, March 31, 2023, and June 30, 2022, were $476.1 million, $483.3 million, and $441.6 million, respectively. The weighted average yields on securities balances for those same periods were 2.05%, 2.07%, and 1.74%, respectively. The duration of the investment portfolio at June 30, 2023 was approximately 5.1 years. The anticipated investment cashflows over the next twelve months is approximately $40.6 million.

    Riverview’s yield on loans was stable at 4.50% during the first fiscal quarter and in the preceding quarter, and improved from 4.39% in the first fiscal quarter a year ago. Loan yields remain under pressure due to the concentration of fixed-rate loans in the Company’s portfolio. Deposit costs increased to 0.44% during the first fiscal quarter compared to 0.19% in the preceding quarter, and 0.07% in the first fiscal quarter a year ago.

    Non-interest income increased to $3.3 million during the first fiscal quarter compared to $3.0 million in the preceding quarter and $3.1 million in the first fiscal quarter of 2023. Overall, fees and service charges increased as a result of an increase in debit interchange and brokered loan fee income compared to last quarter.

    Asset management fees increased to $1.4 million during the first fiscal quarter compared to $1.3 million in the preceding quarter, and $1.2 million in the first fiscal quarter a year ago. Riverview Trust Company’s assets under management were $901.6 million at June 30, 2023, compared to $890.6 million at March 31, 2023 and $1.2 billion at June 30, 2022.

    Non-interest expense was $10.0 million during the first quarter, which was unchanged compared to the preceding quarter. Non-interest expense was $9.8 million in the first fiscal quarter a year ago. Salary and employee benefits were lower during the quarter as a result of some current open positions due to the competitive landscape for attracting and retaining employees. Data processing expenses increased during the quarter due to some billing credits recognized in the prior quarter which reduced our expenses. Advertising and marketing expenses increased during the quarter as a result of an ongoing focus on the new core customer acquisition and marketing efforts for our 100th anniversary. The efficiency ratio was 73.1% for the first fiscal quarter compared to 67.3% in the preceding quarter and 61.9% in the first fiscal quarter a year ago.

    Return on average assets was 0.72% in the first quarter of fiscal 2024 compared to 0.76% in the preceding quarter. Return on average equity and return on average tangible equity (non-GAAP) were 7.31% and 8.86%, respectively, compared to 7.80% and 9.48%, respectively, for the prior quarter.

    Riverview’s effective tax rate for the first quarter of fiscal 2024 was 22.4%, compared to 27.0% for the preceding quarter and 22.7% for the year ago quarter.

    Balance Sheet Review

    Total loans were stable at $1.00 billion at June 30, 2023, compared to $1.01 billion three months earlier and a year earlier. The decrease compared to the prior quarter was mainly due to normal amortization and loan payoffs. Riverview’s loan pipeline grew to $75.8 million at June 30, 2023, compared to $54.5 million at the end of the prior quarter. New loan originations during the quarter totaled $20.3 million compared to $20.8 million in the preceding quarter and $90.7 million in the first quarter a year ago.

    Undisbursed construction loans totaled $45.3 million at June 30, 2023, compared to $36.8 million at March 31, 2023, with the majority of the undisbursed construction loans expected to fund over the next several quarters. Undisbursed homeowner association loans for the purpose of common area maintenance and repairs totaled $21.7 million at June 30, 2023, compared to $23.2 million at March 31, 2023. Revolving commercial business loan commitments totaled $62.5 million at June 30, 2023, which was nearly unchanged compared to three months earlier. Utilization on these loans totaled 27.0% at June 30, 2023, compared to 20.3% at March 31, 2023. The weighted average rate on loan originations during the quarter was 6.53% compared to 6.80% in the preceding quarter.

    The office building loan portfolio totaled $116.2 million at June 30, 2023 compared to $117.0 million a year ago. The average loan balance of this loan portfolio was $1.5 million and had an average loan-to-value ratio of 56.2% and an average debt service coverage ratio of 2.0.

    Total deposits were $1.24 billion at June 30, 2023, compared to $1.27 billion at March 31, 2023, and $1.50 billion a year ago. The decrease was attributed to deposit pricing pressures and customers seeking out higher yielding investment alternatives, including Riverview Trust Company’s money market accounts. Non-interest checking and interest checking accounts, as a percentage of total deposits, totaled 50.1% at June 30, 2023, compared to 52.1% at March 31, 2023 and 52.0% at June 30, 2022.

    FHLB advances were $136.1 million at June 30, 2023 and were comprised of overnight advances and a short-term borrowing. This compared to $123.8 million at March 31, 2023 and no outstanding FHLB advances a year earlier. These FHLB advances were utilized to partially offset the decrease in deposit balances. The BTFP was created by the Federal Reserve to support and make additional funding available to eligible depository institutions to help banks meet the needs of their depositors. Riverview has registered and is eligible to utilize the BTFP. Riverview does not intend to utilize the BTFP, but could do so should the need arise.

    Shareholders’ equity was $154.1 million at June 30, 2023, compared to $155.2 million three months earlier and $154.4 million a year earlier. The decrease in shareholders’ equity at June 30, 2023, compared to the prior quarter was primarily due to a $2.2 million increase in accumulated other comprehensive loss related to an increase in the unrealized loss on available for sale securities, reflecting the increase in interest rates during the current quarter. Tangible book value per share (non-GAAP) was $6.00 at June 30, 2023, compared to $6.02 at March 31, 2023, and $5.78 at June 30, 2022. Riverview paid a quarterly cash dividend of $0.06 per share on July 24, 2023, to shareholders of record on July 11, 2023.

    Credit Quality

    In accordance with changes in generally accepted accounting principles, Riverview adopted the new credit loss accounting standard known as Current Expected Credit Loss (“CECL”) on April 1, 2023. With the adoption, the allowance for credit losses (“ACL”) for loans increased by $42,000. Under CECL, the ACL is based on expected credit losses rather than on incurred losses. Adoption of CECL, which includes the ACL and allowance for unfunded loan commitments, resulted in a cumulative effect after-tax adjustment to stockholders’ equity as of April 1, 2023, of $53,000, which had no impact on earnings.

    Asset quality remained strong, with non-performing loans, excluding SBA and USDA government guaranteed loans (“government guaranteed loans”) (non-GAAP), at $210,000, or 0.02% of total loans as of June 30, 2023, compared to $265,000, or 0.03% of total loans at March 31, 2023, and $262,000, or 0.03% of total loans at June 30, 2022. Including government guaranteed loans, non-performing assets were $1.0 million, or 0.06% of total assets, at June 30, 2023, compared to $1.9 million, or 0.12% of total assets, three months earlier and $27.5 million, or 1.62% of total assets, at June 30, 2022. The $1.0 million includes non-performing government guaranteed loans where payments have been delayed due to the servicing transfer of these loans between two third-party servicers. Once the servicing transfer is complete, Riverview expects to receive the delayed payments and expects non-performing assets to decrease even further. The Company continues to work through the reconciliation of the remaining government guaranteed loans with the third-party servicer.

    Riverview recorded net loan charge offs of $8,000 during the first fiscal quarter. This compared to net loan recoveries of $1,000 for the preceding quarter. Riverview recorded no provision for credit losses for the first fiscal quarter. In the prior quarter, Riverview recorded a $750,000 provision for credit losses as a result of a downgrade in a mixed use office building located in downtown Portland. This loan remains well secured with a loan-to-value of approximately 36%. The Company does not expect to recognize any loss on this loan.

    Classified assets were $1.1 million at June 30, 2023, compared to $2.6 million at March 31, 2023, and $6.4 million at June 30, 2022. The classified asset to total capital ratio was 0.6% at June 30, 2023, compared to 1.5% three months earlier and 3.7% a year earlier. Criticized assets were $24.5 million at June 30, 2023, compared to $19.1 million at March 31, 2023 and $1.3 million at June 30, 2022. The increase in criticized assets during the current quarter was due to a relationship downgrade during the quarter but the Company does not believe this is a systemic credit issue.

    The allowance for credit losses was $15.3 million at June 30, 2023 compared to $15.3 million at March 31, 2023, and $14.6 million one year earlier. The allowance for credit losses represented 1.53% of total loans at June 30, 2023, compared to 1.52% at March 31, 2023, and 1.44% a year earlier. The allowance for credit losses to loans, net of SBA guaranteed loans (including SBA purchased and PPP loans) (non-GAAP), was 1.62% at June 30, 2023, and at March 31, 2023, and 1.53% a year earlier.

    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 16.82% and a Tier 1 leverage ratio of 10.54% at June 30, 2023. Tangible common equity to average tangible assets ratio (non-GAAP) was 8.14% at June 30, 2023.

    Stock Repurchase Program

    In November 2022, Riverview announced that its Board of Directors authorized the repurchase of up to $2.5 million of the Company’s outstanding shares in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on November 28, 2022, and continuing until the earlier of the completion of the repurchase or May 28, 2023, depending upon market conditions. During the first fiscal quarter of fiscal year 2024, the Company repurchased 109,162 shares at an average price of $5.29 per share. As of May 5, 2023, Riverview had completed the full $2.5 million authorized, repurchasing 394,334 shares at an average price of $6.34 per share.

    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. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Riverview’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below.

             
    Tangible shareholders’ equity to tangible assets and tangible book value per share:     
             
    (Dollars in thousands)June 30, 2023  March 31, 2023  June 30, 2022 
             
    Shareholders’ equity (GAAP)$154,066  $155,239  $154,433 
    Exclude: Goodwill(27,076) (27,076) (27,076)
    Exclude: Core deposit intangible, net(352) (379) (466)
    Tangible shareholders’ equity (non-GAAP)$126,638  $127,784  $126,891 
             
    Total assets (GAAP)$1,582,817  $1,589,712  $1,697,711 
    Exclude: Goodwill(27,076) (27,076) (27,076)
    Exclude: Core deposit intangible, net(352) (379) (466)
    Tangible assets (non-GAAP)$1,555,389  $1,562,257  $1,670,169 
             
    Shareholders’ equity to total assets (GAAP)9.73%  9.77%  9.10% 
             
    Tangible common equity to tangible assets (non-GAAP)8.14%  8.18%  7.60% 
             
    Shares outstanding21,115,919  22,221,960  21,943,160 
             
    Book value per share (GAAP)$7.30  $7.32  $7.04 
             
    Tangible book value per share (non-GAAP)$6.00  $6.02  $5.78 
             
             
    Pre-tax, pre-provision income        
     Three Months Ended 
    (Dollars in thousands)June 30, 2023  March 31, 2023  June 30, 2022 
             
    Net income (GAAP)$2,843  $2,983  $4,652 
    Include: Provision for income taxes823  1,102  1,366 
    Include: Provision for credit losses-  750  - 
    Pre-tax, pre-provision income (non-GAAP)$3,666  $4,835  $6,018 
             
             
    Allowance for credit losses reconciliation, excluding SBA purchased and PPP loans      
             
    (Dollars in thousands)June 30, 2023  March 31, 2023  June 30, 2022 
             
    Allowance for credit losses$15,343  $15,309  $14,559 
             
    Loans receivable (GAAP)$1,004,407  $1,008,856  $1,012,465 
    Exclude: SBA purchased loans(54,963) (55,488) (59,943)
    Loans receivable excluding SBA purchased loans (non-GAAP)$949,444  $953,368  $952,522 
             
    Allowance for credit losses to loans receivable (GAAP)1.53%  1.52%  1.44% 
             
    Allowance for credit losses to loans receivable excluding SBA purchased and PPP loans (non-GAAP)1.62%  1.61%  1.53% 
             
             
    Non-performing loans reconciliation, excluding SBA Government Guaranteed Loans     
             
     Three Months Ended 
    (Dollars in thousands)June 30, 2023  March 31, 2023  June 30, 2022 
             
    Non-performing loans (GAAP)$1,025  $1,852  $27,534 
    Less: Non-performing SBA Government Guaranteed loans(815) (1,587) (27,272)
    Adjusted non-performing loans excluding SBA Government Guaranteed loans (non-GAAP)$210  $265  $262 
             
    Non-performing loans to total loans (GAAP)0.10%  0.18%  2.72% 
             
    Non-performing loans, excluding SBA Government Guaranteed loans to total loans (non-GAAP)0.02%  0.03%  0.03% 
             
    Non-performing loans to total assets (GAAP)0.06%  0.12%  1.62% 
             
    Non-performing loans, excluding SBA Government Guaranteed loans to total assets (non-GAAP)0.01%  0.02%  0.02% 
             

    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 $1.58 billion at June 30, 2023, it is the parent company of the 100-year-old Riverview 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 clients through 17 branches, including 13 in the Portland-Vancouver area, and 3 lending centers. For the past 10 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal and The Columbian.

    “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements which include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions, future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession, the failure of the U.S. Congress to increase the debt ceiling, or slowed economic growth caused by increasing political instability from acts of war including Russia’s invasion of Ukraine, as well as supply chain disruptions, recent bank failures and any governmental or societal responses thereto; 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 credit losses and provision for credit losses that may be impacted by deterioration in the housing and commercial real estate markets; 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; the transition away from London Interbank Offered Rate toward new interest rate benchmarks; 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 originate loans for sale and sell loans in the secondary market; results of examinations of the Bank by the Federal Deposit Insurance Corporation and the Washington State Department of Financial Institutions, Division of Banks, and of the Company by the Board of Governors of the Federal Reserve System, or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require the Company to increase its allowance for credit losses, write-down assets, reclassify its assets, change the 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 banking, securities and tax law, and in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company’s ability to attract and retain deposits; the unexpected outflow of uninsured deposits that may require us to sell investment securities at a loss; 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 consolidated 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; disruptions, security breaches or other adverse events, failures or interruptions in or attacks on our information technology systems or on the third-party vendors who perform several of our critical processing functions; 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 implement its business strategies; the Company’s ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may acquire into its operations and the Company’s ability to realize related revenue synergies and cost savings within expected time frames; future goodwill impairment due to changes in Riverview’s business, changes in market conditions, or other factors; 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; the quality and composition of our securities portfolio and the impact of and adverse changes in the securities markets, including market liquidity; 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 standards; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and 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 reports filed with and furnished to the U.S. 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 included in this report or the reasons why actual results could differ from those contained in such statements, whether as a result of new information or 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 2024 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 consolidated financial condition and consolidated results of operations as well as its stock price performance.

             
    RIVERVIEW BANCORP, INC. AND SUBSIDIARY        
    Consolidated Balance Sheets        
    (In thousands, except share data)  (Unaudited)June 30, 2023  March 31, 2023  June 30, 2022 
    ASSETS        
             
    Cash (including interest-earning accounts of $15,771, $10,397,$                    29,947  $                  22,044  $                   141,836 
    and $127,859)        
    Certificate of deposits held for investment-  249  249 
    Investment securities:        
    Available for sale, at estimated fair value204,319  211,499  181,697 
    Held to maturity, at amortized cost239,853  243,843  256,002 
    Loans receivable (net of allowance for credit losses of $15,343,        
    $15,309 and $14,559)989,064  993,547  997,906 
    Prepaid expenses and other assets14,147  15,950  26,925 
    Accrued interest receivable4,765  4,790  5,012 
    Federal Home Loan Bank stock, at cost7,360  6,867  2,019 
    Premises and equipment, net21,692  20,119  16,973 
    Financing lease right-of-use assets1,259  1,278  1,336 
    Deferred income taxes, net10,998  10,286  9,060 
    Goodwill27,076  27,076  27,076 
    Core deposit intangible, net352  379  466 
    Bank owned life insurance31,985  31,785  31,154 
             
    TOTAL ASSETS$               1,582,817  $             1,589,712  $                1,697,711 
             
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
             
    LIABILITIES:        
    Deposits$               1,243,322  $             1,265,217  $                1,495,605 
    Accrued expenses and other liabilities19,631  15,730  18,026 
    Advance payments by borrowers for taxes and insurance574  625  523 
    Junior subordinated debentures26,940  26,918  26,854 
    Federal Home Loan Bank advances136,069  123,754  - 
    Finance lease liability2,215  2,229  2,270 
    Total liabilities1,428,751  1,434,473  1,543,278 
             
    SHAREHOLDERS’ EQUITY:        
    Serial preferred stock, $.01 par value; 250,000 authorized,        
    issued and outstanding, none-  -  - 
    Common stock, $.01 par value; 50,000,000 authorized,        
    June 30, 2023 – 21,115,919 issued and outstanding;        
    March 31, 2023 – 21,221,960 issued and outstanding;211  212  219 
    June 30, 2022 – 22,154,170 issued and 21,943,160 outstanding;        
    Additional paid-in capital55,016  55,511  60,838 
    Retained earnings119,351  117,826  108,266 
    Accumulated other comprehensive loss(20,512) (18,310) (14,890)
    Total shareholders’ equity154,066  155,239  154,433 
             
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$               1,582,817  $             1,589,712  $                1,697,711 
             

     

    RIVERVIEW BANCORP, INC. AND SUBSIDIARY   
    Consolidated Statements of Income   
     Three Months Ended
    (In thousands, except share data)   (Unaudited)June 30, 2023March 31, 2023June 30, 2022
    INTEREST INCOME:   
    Interest and fees on loans receivable$11,210$11,248$10,897
    Interest on investment securities - taxable2,3342,3811,834
    Interest on investment securities - nontaxable666566
    Other interest and dividends347247397
    Total interest and dividend income13,95713,94113,194
        
    INTEREST EXPENSE:   
    Interest on deposits1,373605281
    Interest on borrowings2,2251,522252
    Total interest expense3,5982,127533
    Net interest income10,35911,81412,661
    Provision for credit losses-750-
        
    Net interest income after provision for credit losses10,35911,06412,661
        
    NON-INTEREST INCOME:   
    Fees and service charges1,6001,4591,721
    Asset management fees1,3811,2751,160
    Bank owned life insurance ("BOLI")200195190
    Other, net1044255
    Total non-interest income, net3,2852,9713,126
        
    NON-INTEREST EXPENSE:   
    Salaries and employee benefits6,0436,1635,952
    Occupancy and depreciation1,5831,5711,514
    Data processing674538778
    Amortization of core deposit intangible272929
    Advertising and marketing313229197
    FDIC insurance premium177183116
    State and local taxes226263191
    Telecommunications535150
    Professional fees343277301
    Other539646641
    Total non-interest expense9,9789,9509,769
        
    INCOME BEFORE INCOME TAXES3,6664,0856,018
    PROVISION FOR INCOME TAXES8231,1021,366
    NET INCOME$2,843$2,983$4,652
        
    Earnings per common share:   
    Basic$0.13$0.14$0.21
    Diluted$0.13$0.14$0.21
    Weighted average number of common shares outstanding:   
    Basic21,136,09721,391,75922,027,874
    Diluted21,141,18421,400,27822,037,320
        


            
    (Dollars in thousands)At or for the three months ended
     June 30, 2023 March 31, 2023  June 30, 2022 
    AVERAGE BALANCES       
    Average interest–earning assets$1,496,201 $1,518,641  $1,635,048 
    Average interest-bearing liabilities1,013,649 991,470  1,056,807 
    Net average earning assets482,552 527,171  578,241 
    Average loans1,001,103 1,012,975  995,066 
    Average deposits1,250,358 1,315,519  1,518,961 
    Average equity156,460 155,146  156,636 
    Average tangible equity (non-GAAP)129,015 127,673  129,080 
            
            
    ASSET QUALITYJune 30, 2023 March 31, 2023  June 30, 2022 
            
    Non-performing loans$1,025 $1,852  $27,534 
    Non-performing loans excluding SBA Government Guarantee (non-GAAP)$210 $265  $262 
    Non-performing loans to total loans0.10% 0.18%  2.72% 
    Non-performing loans to total loans excluding SBA Government Guarantee (non-GAAP)0.02% 0.03%  0.03% 
    Real estate/repossessed assets owned$- $-  $- 
    Non-performing assets$1,025 $1,852  $27,534 
    Non-performing assets excluding SBA Government Guarantee (non-GAAP)$210 $265  $262 
    Non-performing assets to total assets0.06% 0.12%  1.62% 
    Non-performing assets to total assets excluding SBA Government Guarantee (non-GAAP)0.01% 0.02%  0.02% 
    Net loan charge-offs (recoveries) in the quarter$8 $(1) $(36)
    Net charge-offs (recoveries) in the quarter/average net loans0.00% 0.00%  (0.01)% 
            
    Allowance for credit losses$15,343 $15,309  $14,559 
    Average interest-earning assets to average       
    interest-bearing liabilities147.61% 153.17%  154.72% 
    Allowance for credit losses to       
    non-performing loans1496.88% 826.62%  52.88% 
    Allowance for credit losses to total loans1.53% 1.52%  1.44% 
    Shareholders’ equity to assets9.73% 9.77%  9.10% 
            
            
    CAPITAL RATIOS       
    Total capital (to risk weighted assets)16.82% 16.94%  16.31% 
    Tier 1 capital (to risk weighted assets)15.56% 15.69%  15.06% 
    Common equity tier 1 (to risk weighted assets)15.56% 15.69%  15.06% 
    Tier 1 capital (to average tangible assets)10.54% 10.47%  9.29% 
    Tangible common equity (to average tangible assets) (non-GAAP)8.14% 8.18%  7.60% 
            
            
    DEPOSIT MIXJune 30, 2023 March 31, 2023  June 30, 2022 
            
    Interest checking$240,942 $254,522  $301,047 
    Regular savings231,838 255,147  326,337 
    Money market deposit accounts242,558 221,778  281,300 
    Non-interest checking381,834 404,937  476,618 
    Certificates of deposit146,150 128,833  110,303 
    Total deposits$1,243,322 $1,265,217  $1,495,605 
            


    COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOANS    
            
       Other   Commercial
     Commercial Real Estate Real Estate & Construction
     Business Mortgage Construction Total
    June 30, 2023(Dollars in thousands)
    Commercial business$244,725 $- $- $244,725
    Commercial construction- - 32,159 32,159
    Office buildings- 116,156 - 116,156
    Warehouse/industrial- 108,936 - 108,936
    Retail/shopping centers/strip malls- 81,986 - 81,986
    Assisted living facilities- 392 - 392
    Single purpose facilities- 249,169 - 249,169
    Land- 6,367 - 6,367
    Multi-family- 54,340 - 54,340
    One-to-four family construction- - 11,781 11,781
    Total$244,725 $617,346 $43,940 $906,011
            
    March 31, 2023       
    Commercial business$232,868  -  - $232,868
    Commercial construction- - 29,565 29,565
    Office buildings- 117,045 - 117,045
    Warehouse/industrial- 106,693 - 106,693
    Retail/shopping centers/strip malls- 82,700 - 82,700
    Assisted living facilities- 396 - 396
    Single purpose facilities- 257,662 - 257,662
    Land- 6,437 - 6,437
    Multi-family- 55,836 - 55,836
    One-to-four family construction- - 18,197 18,197
    Total$232,868 $626,769 $47,762 $907,399
            
            
    LOAN MIXJune 30, 2023 March 31, 2023 June 30, 2022  
    Commercial and construction(Dollars in thousands) 
    Commercial business$244,725 $232,868 $227,023  
    Other real estate mortgage617,346 626,769 647,363  
    Real estate construction43,940 47,762 30,754  
    Total commercial and construction906,011 907,399 905,140  
    Consumer       
    Real estate one-to-four family96,607 99,673 105,775  
    Other installment1,789 1,784 1,550  
    Total consumer98,396 101,457 107,325  
            
    Total loans1,004,407 1,008,856 1,012,465  
            
    Less:       
    Allowance for credit losses15,343 15,309 14,559  
    Loans receivable, net$989,064 $993,547 $997,906  
            
            
    DETAIL OF NON-PERFORMING ASSETS       
     Southwest      
     Washington Other Total  
    June 30, 2023(Dollars in thousands)  
    Commercial business$74 $- $74  
    Commercial real estate95 - 95  
    Consumer41 - 41  
    Subtotal210 - 210  
            
    SBA Government Guaranteed- 815 815  
            
    Total non-performing assets$210 $815 $1,025  
            


          
                   At or for the three months ended
    SELECTED OPERATING DATAJune 30, 2023 March 31, 2023 June 30, 2022
          
    Efficiency ratio (4)73.13% 67.30% 61.88%
    Coverage ratio (6)103.82% 118.73% 129.60%
    Return on average assets (1)0.72% 0.76% 1.08%
    Return on average equity (1)7.31% 7.80% 11.91%
    Return on average tangible equity (1) (non-GAAP)8.86% 9.48% 14.46%
          
    NET INTEREST SPREAD     
    Yield on loans4.50% 4.50% 4.39%
    Yield on investment securities2.05% 2.07% 1.74%
    Total yield on interest-earning assets3.76% 3.73% 3.24%
          
    Cost of interest-bearing deposits0.65% 0.28% 0.11%
    Cost of FHLB advances and other borrowings5.61% 5.46% 3.47%
    Total cost of interest-bearing liabilities1.43% 0.87% 0.20%
          
    Spread (7)2.33% 2.86% 3.04%
    Net interest margin2.79% 3.16% 3.11%
          
    PER SHARE DATA     
    Basic earnings per share (2)$                   0.13 $                   0.14 $                   0.21
    Diluted earnings per share (3)0.13 0.14 0.21
    Book value per share (5)7.30 7.32 7.04
    Tangible book value per share (5) (non-GAAP)6.00 6.02 5.78
    Market price per share:     
    High for the period$                   5.55 $                   7.90 $                   7.56
    Low for the period4.17 5.25 6.09
    Close for period end5.04 5.34 6.58
    Cash dividends declared per share0.0600 0.0600 0.0600
          
    Average number of shares outstanding:     
    Basic (2)21,136,097 21,391,759 22,027,874
    Diluted (3)21,141,184 21,400,278 22,037,320
          


    (1)Amounts for the periods shown 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:Kevin Lycklama or David Lam
     Riverview Bancorp, Inc. 360-693-6650

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