Riverview Financial Corporation Announces Consolidation Of Branch Offices

Rhea-AI Summary

Riverview Financial Corporation (NASDAQ: RIVE) announced the consolidation of two branch offices as part of ongoing efficiency initiatives. The closures, expected in Q1 2021, are the Tower City and Camp Hill offices, with customer accounts transferred to nearby branches. This move is anticipated to yield annual pre-tax savings of $1 million, although it will also incur $1 million in nonrecurring charges in Q4 2020. CEO Brett D. Fulk noted that the COVID-19 pandemic has accelerated the shift toward digital banking, reinforcing the need for operational adjustments.

Positive

• Expected annual pre-tax savings of $1 million from the closure of two branches.

Negative

• Recognition of $1 million in pre-tax nonrecurring charges in Q4 2020.

HARRISBURG, Pa., Nov. 6, 2020 /PRNewswire/ -- Riverview Financial Corporation (the "Company" or "Riverview") (NASDAQ: RIVE), the holding company for Riverview Bank (the "Bank"), today announced the planned consolidation of two branch offices. These closures are part of the company's ongoing efficiency initiatives, which began in earnest during 2019.  During 2020, Riverview continued to evaluate its branch network by utilizing its retail branch performance and resource allocation analytics. After evaluating the results, the Company determined to close two additional branch offices in the first quarter of 2021, pending regulatory approval. Accordingly, the Tower City Office, located at 920 E. Wiconisco Avenue, Tower City, PA and the Camp Hill Office, located at 3556 Gettysburg Road, Camp Hill, PA will be closed.  Customer accounts of the Tower City Office will be transferred to Riverview's Elizabethville Office, located at 34 South Market Street, Elizabethville, PA while those accounts of the Camp Hill Office will be transferred to Riverview's Ridgeview Office, located at 500 South State Road, Marysville, PA. Riverview anticipates annual pre-tax savings of $1.0 million as a direct result of these two office closures, and expects to recognize $1.0 million in pre-tax nonrecurring charges in the fourth quarter of 2020.   

Brett D. Fulk, President and Chief Executive Officer, commented, "while we have historically seen a steady consumer transition towards greater utilization of bank technology to satisfy banking needs, the current COVID-19 Pandemic accelerated this process throughout our markets and within the banking industry, and it is increasingly clear that these behavioral changes are permanent.  Evidenced, in part, by the lack of a return of foot traffic to reopened lobbies to pre-pandemic levels, customers continue to rely more heavily upon our customer friendly technological banking capabilities.  Significant increases in the use of telephone banking, on-line banking, mobile banking, remote deposit capture, and electronic bill pay demonstrate that we must continue to evaluate our delivery channels, shifting resources and focus as customer demands change."  Fulk went on to say, "the decision to close offices is never easy, however we must continue making changes necessary to create a more efficient organization while continuing to meet customer demand." 

About Riverview Financial Corporation

Riverview Financial Corporation is the parent company of Riverview Bank. An independent community bank, Riverview Bank serves the Pennsylvania market areas of Berks, Blair, Bucks, Centre, Clearfield, Cumberland, Dauphin, Huntingdon, Lebanon, Lehigh, Lycoming, Perry, Schuylkill and Somerset Counties through 27 community banking offices and 3 limited purpose offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Riverview's business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies. The Company's common stock trades on the NASDAQ Global Market under the symbol "RIVE". The Investor Relations site can be accessed at https://www.riverviewbankpa.com/.

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Riverview Financial Corporation, Riverview Bank, and its subsidiaries (collectively, "Riverview") that may be considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Riverview claims the protection of the statutory safe harbors for forward-looking statements.

Riverview cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: the impact of the COVID-19 outbreak, prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting Riverview's operations, pricing, products and services and other factors that may be described in Riverview's periodic reports as filed with the Securities and Exchange Commission from time to time.  Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company's past results are not necessarily indicative of future performance.

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SOURCE Riverview Financial Corporation

FAQ

What is the reason for Riverview Financial Corporation's branch closures?

Riverview Financial Corporation is closing two branches to enhance operational efficiency, prompted by a significant shift towards digital banking due to the COVID-19 pandemic.

When will the branch offices of Riverview Financial Corporation close?

The closures of Riverview's Tower City and Camp Hill offices are planned for the first quarter of 2021, pending regulatory approval.

What are the anticipated financial impacts of the branch closures for Riverview Financial Corporation?

Riverview Financial Corporation expects to save $1 million annually due to the closures but will also incur $1 million in nonrecurring charges in Q4 2020.

How many branch offices will remain after the closures announced by Riverview Financial Corporation?

The exact number of remaining branches will depend on further evaluations, but Riverview currently has a network of 27 community banking offices.

What customer account changes will occur due to the branch consolidation?

Customer accounts from the Tower City office will be transferred to the Elizabethville office, while Camp Hill office accounts will move to the Ridgeview office.