Riverview Bancorp Earns $1.5 Million in Third Fiscal Quarter 2024
- Stable credit quality metrics with non-performing assets at 0.01% of total assets
- Total risk-based capital ratio of 16.67% and Tier 1 leverage ratio of 10.53%
- Decrease in net income from $15.1 million to $6.8 million in the first nine months of fiscal 2024
- Net interest income decreased from $13.7 million to $9.3 million in the third fiscal quarter of 2024
Insights
Reviewing Riverview Bancorp's earnings report, a significant year-over-year decline in net income is evident, from $5.2 million in the third fiscal quarter a year ago to $1.5 million in the current reporting period. This decline reflects a challenging interest rate environment that has compressed the net interest margin (NIM) from 3.48% to 2.49% over the same period. The increase in interest expense on deposits and borrowings is a primary driver behind reduced profitability, signaling a cost of funds pressure that investors should monitor closely, as it can impact future earnings potential.
Despite flat loan growth, the bank's asset quality remains robust with non-performing assets at a mere 0.01% of total assets and no provision for credit losses in the current quarter. This indicates a strong credit culture and risk management framework, which is a positive sign for investor confidence. However, the reduced loan pipeline from $62.7 million to $29.3 million could suggest a cautious approach to lending amidst economic uncertainties, potentially limiting revenue growth from this segment.
From a capital management perspective, the maintenance of a 'well capitalized' status and the completion of a stock repurchase program reflect a commitment to shareholder value. However, the decline in total deposits may raise questions about liquidity management, especially in the context of the unused Bank Term Funding Program (BTFP), which could be a strategic reserve for future liquidity needs.
The banking industry is currently navigating a complex interest rate environment, which has led to Riverview Bancorp's net interest income and margin contraction. This trend is not isolated to Riverview but is reflective of broader market dynamics where banks are grappling with the cost of higher interest rates on deposits and borrowings. Investors should compare these metrics to peer institutions to gauge Riverview's performance relative to the market.
While loan growth has moderated, the stability in credit quality metrics suggests that Riverview is prioritizing loan quality over quantity, a prudent strategy in an uncertain economic climate. This conservative lending approach can be a double-edged sword, potentially safeguarding against future credit losses while also limiting interest income growth.
Furthermore, the decrease in non-interest income due to lower fintech referral partnership income could indicate a need for diversification in revenue streams. The bank's efficiency ratio has also deteriorated, suggesting higher costs relative to income, which may warrant operational efficiency improvements to bolster profitability.
The reported figures from Riverview Bancorp reflect macroeconomic headwinds, particularly the impact of monetary policy tightening on the banking sector. The Federal Reserve's interest rate hikes have a direct effect on banks' net interest margins, as seen in Riverview's NIM compression. This economic environment requires banks to adapt their deposit and lending strategies to maintain margins while managing interest rate risk.
Given the current economic indicators, the bank's cautious stance on loan growth and liquidity management appears aligned with a broader anticipation of a potential economic downturn. The bank's positioning with ample liquidity, including unused borrowing capacity from the FHLB and FRB, suggests a defensive posture in preparation for potential market volatility.
Riverview's effective tax rate reduction from 23.1% to 20.6% year-over-year could reflect changes in tax planning or benefits from fiscal policy, which could have a positive effect on net earnings. This is a point of interest for stakeholders analyzing after-tax returns and overall financial health.
VANCOUVER, Wash., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported earnings of
In the first nine months of fiscal 2024, net income was
“We finished the third fiscal quarter of 2024 on solid footing, although the challenging interest rate environment continues to impact net interest income growth with higher interest expense on deposits and borrowings, which affected our operating performance,” stated Dan Cox, Chief Operating Officer, Acting President and Chief Executive Officer. “Quarterly loan growth has moderated, as we remain selective with the loans we are putting on the balance sheet. Additionally, credit quality metrics remain very stable. We are going into the last quarter of our fiscal year with an abundance of caution, as we remain committed to protecting our liquidity and capital position.”
Third Quarter Highlights (at or for the period ended December 31, 2023)
- Net income was
$1.5 million , or$0.07 per diluted share. - Net interest income was
$9.3 million for the quarter, compared to$9.9 million in the preceding quarter and$13.7 million in the third fiscal quarter a year ago. - Net interest margin (“NIM”) was
2.49% for the quarter, compared to2.63% in the preceding quarter and3.48% for the year ago quarter. - Return on average assets was
0.37% and return on average equity was3.75% . - Asset quality remained strong, with non-performing assets at
$186,000 , or0.01% of total assets at December 31, 2023. - Riverview recorded no provision for credit losses during the current quarter, the preceding quarter, or during the year ago quarter.
- The allowance for credit losses was
$15.4 million , or1.51% of total loans. - Total loans were
$1.02 billion at December 31, 2023, September 30, 2023, and at December 31, 2022. - Total deposits were
$1.22 billion , compared to$1.24 billion three months earlier and$1.37 billion a year earlier. - Riverview has approximately
$263.0 million in available liquidity at December 31, 2023, including$137.8 million of borrowing capacity from Federal Home Loan Bank of Des Moines (“FHLB”) and$125.2 million from the Federal Reserve Bank of San Francisco (“FRB”). Riverview has access to but has yet to utilize the Federal Reserve Bank’s Bank Term Funding Program ("BTFP"). At December 31, 2023, the Bank had$157.1 million in outstanding FHLB borrowings. - The uninsured deposit ratio was
28.4% at December 31, 2023. - Total risk-based capital ratio was
16.67% and Tier 1 leverage ratio was10.53% . - Paid a quarterly cash dividend during the quarter of
$0.06 per share.
Income Statement Review
Riverview’s net interest income was
Riverview’s NIM was
Investment securities totaled
Riverview’s yield on loans improved to
Non-interest income decreased to
Asset management fees were
Non-interest expense was
Return on average assets was
Riverview’s effective tax rate for the third quarter of fiscal 2024 was
Balance Sheet Review
Total loans remained flat at
Undisbursed construction loans totaled
The office building loan portfolio totaled
Total deposits decreased to
FHLB advances were
Shareholders’ equity was
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. 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
Asset quality remained stable, with non-performing loans, excluding SBA and USDA government guaranteed loans (“government guaranteed loans”) (non-GAAP), at
Riverview recorded net loan recoveries of
Classified assets decreased to
The allowance for credit losses was
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
Stock Repurchase Program
In November 2022, Riverview announced that its Board of Directors authorized the repurchase of up to
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) | December 31, 2023 | September 30, 2023 | December 31, 2022 | March 31, 2023 | ||||||||||||||||
| Shareholders' equity (GAAP) | $ | 158,472 | $ | 152,039 | $ | 152,025 | $ | 155,239 | ||||||||||||
| Exclude: Goodwill | (27,076 | ) | (27,076 | ) | (27,076 | ) | (27,076 | ) | ||||||||||||
| Exclude: Core deposit intangible, net | (298 | ) | (325 | ) | (408 | ) | (379 | ) | ||||||||||||
| Tangible shareholders' equity (non-GAAP) | $ | 131,098 | $ | 124,638 | $ | 124,541 | $ | 127,784 | ||||||||||||
| Total assets (GAAP) | $ | 1,590,623 | $ | 1,583,733 | $ | 1,598,734 | $ | 1,589,712 | ||||||||||||
| Exclude: Goodwill | (27,076 | ) | (27,076 | ) | (27,076 | ) | (27,076 | ) | ||||||||||||
| Exclude: Core deposit intangible, net | (298 | ) | (325 | ) | (408 | ) | (379 | ) | ||||||||||||
| Tangible assets (non-GAAP) | $ | 1,563,249 | $ | 1,556,332 | $ | 1,571,250 | $ | 1,562,257 | ||||||||||||
| Shareholders' equity to total assets (GAAP) | 9.96 | % | 9.60 | % | 9.51 | % | 9.77 | % | ||||||||||||
| Tangible common equity to tangible assets (non-GAAP) | 8.39 | % | 8.01 | % | 7.93 | % | 8.18 | % | ||||||||||||
| Shares outstanding | 21,111,043 | 21,125,889 | 21,496,335 | 22,221,960 | ||||||||||||||||
| Book value per share (GAAP) | $ | 7.51 | $ | 7.20 | $ | 7.07 | $ | 7.32 | ||||||||||||
| Tangible book value per share (non-GAAP) | $ | 6.21 | $ | 5.90 | $ | 5.79 | $ | 6.02 | ||||||||||||
| Pre-tax, pre-provision income | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| (Dollars in thousands) | December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||
| Net income (GAAP) | $ | 1,452 | $ | 2,472 | $ | 5,240 | $ | 6,767 | $ | 15,086 | ||||||||||
| Include: Provision for income taxes | 377 | 697 | 1,575 | 1,897 | 4,508 | |||||||||||||||
| Include: Provision for credit losses | - | - | - | - | - | |||||||||||||||
| Pre-tax, pre-provision income (non-GAAP) | $ | 1,829 | $ | 3,169 | $ | 6,815 | $ | 8,664 | $ | 19,594 | ||||||||||
| Allowance for credit losses reconciliation, excluding Government Guaranteed loans | ||||||||||||||||||||
| (Dollars in thousands) | December 31, 2023 | September 30, 2023 | December 31, 2022 | March 31, 2023 | ||||||||||||||||
| Allowance for credit losses | $ | 15,361 | $ | 15,346 | $ | 14,558 | $ | 15,309 | ||||||||||||
| Loans receivable (GAAP) | $ | 1,018,199 | $ | 1,015,625 | $ | 1,016,513 | $ | 1,008,856 | ||||||||||||
| Exclude: Government Guaranteed loans | (51,809 | ) | (53,572 | ) | (57,102 | ) | (55,488 | ) | ||||||||||||
| Loans receivable excluding Government Guaranteed loans (non-GAAP) | $ | 966,390 | $ | 962,053 | $ | 959,411 | $ | 953,368 | ||||||||||||
| Allowance for credit losses to loans receivable (GAAP) | 1.51 | % | 1.51 | % | 1.43 | % | 1.52 | % | ||||||||||||
| Allowance for credit losses to loans receivable excluding Government Guaranteed loans (non-GAAP) | 1.59 | % | 1.60 | % | 1.52 | % | 1.61 | % | ||||||||||||
| Non-performing loans reconciliation, excluding Government Guaranteed Loans | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| (Dollars in thousands) | December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||
| Non-performing loans (GAAP) | $ | 186 | $ | 198 | $ | 12,613 | ||||||||||||||
| Less: Non-performing Government Guaranteed loans | - | - | (12,377 | ) | ||||||||||||||||
| Adjusted non-performing loans excluding Government Guaranteed loans (non-GAAP) | $ | 186 | $ | 198 | $ | 236 | ||||||||||||||
| Non-performing loans to total loans (GAAP) | 0.02 | % | 0.02 | % | 1.24 | % | ||||||||||||||
| Non-performing loans, excluding Government Guaranteed loans to total loans (non-GAAP) | 0.02 | % | 0.02 | % | 0.02 | % | ||||||||||||||
| Non-performing loans to total assets (GAAP) | 0.01 | % | 0.01 | % | 0.79 | % | ||||||||||||||
| Non-performing loans, excluding Government Guaranteed loans to total assets (non-GAAP) | 0.01 | % | 0.01 | % | 0.01 | % | ||||||||||||||
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
“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) | December 31, 2023 | September 30, 2023 | December 31, 2022 | March 31, 2023 | |||||||||||
| ASSETS | |||||||||||||||
| Cash (including interest-earning accounts of | $ | 37,553 | $ | 30,853 | $ | 24,337 | $ | 22,044 | |||||||
| Certificate of deposits held for investment | - | - | 249 | 249 | |||||||||||
| Investment securities: | |||||||||||||||
| Available for sale, at estimated fair value | 196,461 | 193,984 | 211,706 | 211,499 | |||||||||||
| Held to maturity, at amortized cost | 232,659 | 236,018 | 247,147 | 243,843 | |||||||||||
| Loans receivable (net of allowance for credit losses of | |||||||||||||||
| 1,002,838 | 1,000,279 | 1,001,955 | 993,547 | ||||||||||||
| Prepaid expenses and other assets | 14,486 | 14,481 | 12,546 | 15,950 | |||||||||||
| Accrued interest receivable | 5,248 | 4,882 | 5,727 | 4,790 | |||||||||||
| Federal Home Loan Bank stock, at cost | 8,026 | 7,643 | 3,309 | 6,867 | |||||||||||
| Premises and equipment, net | 22,270 | 22,707 | 20,220 | 20,119 | |||||||||||
| Financing lease right-of-use assets | 1,221 | 1,240 | 1,298 | 1,278 | |||||||||||
| Deferred income taxes, net | 10,033 | 12,002 | 11,166 | 10,286 | |||||||||||
| Goodwill | 27,076 | 27,076 | 27,076 | 27,076 | |||||||||||
| Core deposit intangible, net | 298 | 325 | 408 | 379 | |||||||||||
| Bank owned life insurance | 32,454 | 32,243 | 31,590 | 31,785 | |||||||||||
| TOTAL ASSETS | $ | 1,590,623 | $ | 1,583,733 | $ | 1,598,734 | $ | 1,589,712 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| LIABILITIES: | |||||||||||||||
| Deposits | $ | 1,218,892 | $ | 1,239,766 | $ | 1,365,997 | $ | 1,265,217 | |||||||
| Accrued expenses and other liabilities | 26,740 | 18,735 | 18,966 | 15,730 | |||||||||||
| Advance payments by borrowers for taxes and insurance | 299 | 878 | 343 | 625 | |||||||||||
| Junior subordinated debentures | 26,982 | 26,961 | 26,896 | 26,918 | |||||||||||
| Federal Home Loan Bank advances | 157,054 | 143,154 | 32,264 | 123,754 | |||||||||||
| Finance lease liability | 2,184 | 2,200 | 2,243 | 2,229 | |||||||||||
| Total liabilities | 1,432,151 | 1,431,694 | 1,446,709 | 1,434,473 | |||||||||||
| SHAREHOLDERS' EQUITY: | |||||||||||||||
| Serial preferred stock, $.01 par value; 250,000 authorized, | |||||||||||||||
| issued and outstanding, none | - | - | - | - | |||||||||||
| Common stock, $.01 par value; 50,000,000 authorized, | |||||||||||||||
| December 31, 2023 – 21,111,043 issued and outstanding; | |||||||||||||||
| September 30, 2023 – 21,125,889 issued and outstanding; | 211 | 211 | 214 | 212 | |||||||||||
| December 31, 2022 – 21,496,335 issued and outstanding; | |||||||||||||||
| March 31, 2023 – 21,221,960 issued and outstanding; | |||||||||||||||
| Additional paid-in capital | 54,982 | 54,963 | 57,252 | 55,511 | |||||||||||
| Retained earnings | 120,734 | 120,556 | 116,117 | 117,826 | |||||||||||
| Accumulated other comprehensive loss | (17,455 | ) | (23,691 | ) | (21,558 | ) | (18,310 | ) | |||||||
| Total shareholders’ equity | 158,472 | 152,039 | 152,025 | 155,239 | |||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,590,623 | $ | 1,583,733 | $ | 1,598,734 | $ | 1,589,712 | |||||||
| RIVERVIEW BANCORP, INC. AND SUBSIDIARY | ||||||||||||
| Consolidated Statements of Income | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (In thousands, except share data) (Unaudited) | Dec. 31, 2023 | Sept. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |||||||
| INTEREST INCOME: | ||||||||||||
| Interest and fees on loans receivable | $ | 11,645 | $ | 11,433 | $ | 11,531 | $ | 34,288 | $ | 33,496 | ||
| Interest on investment securities - taxable | 2,231 | 2,261 | 2,397 | 6,826 | 6,403 | |||||||
| Interest on investment securities - nontaxable | 65 | 65 | 66 | 196 | 197 | |||||||
| Other interest and dividends | 331 | 276 | 449 | 954 | 1,629 | |||||||
| Total interest and dividend income | 14,272 | 14,035 | 14,443 | 42,264 | 41,725 | |||||||
| INTEREST EXPENSE: | ||||||||||||
| Interest on deposits | 2,059 | 1,832 | 289 | 5,264 | 897 | |||||||
| Interest on borrowings | 2,889 | 2,352 | 454 | 7,466 | 1,036 | |||||||
| Total interest expense | 4,948 | 4,184 | 743 | 12,730 | 1,933 | |||||||
| Net interest income | 9,324 | 9,851 | 13,700 | 29,534 | 39,792 | |||||||
| Provision for credit losses | - | - | - | - | - | |||||||
| Net interest income after provision for credit losses | 9,324 | 9,851 | 13,700 | 29,534 | 39,792 | |||||||
| NON-INTEREST INCOME: | ||||||||||||
| Fees and service charges | 1,533 | 1,738 | 1,502 | 4,871 | 4,903 | |||||||
| Asset management fees | 1,266 | 1,273 | 1,137 | 3,920 | 3,459 | |||||||
| Bank owned life insurance ("BOLI") | 211 | 258 | 194 | 669 | 626 | |||||||
| Other, net | 46 | 138 | 130 | 288 | 235 | |||||||
| Total non-interest income, net | 3,056 | 3,407 | 2,963 | 9,748 | 9,223 | |||||||
| NON-INTEREST EXPENSE: | ||||||||||||
| Salaries and employee benefits | 6,091 | 5,845 | 5,982 | 17,979 | 17,819 | |||||||
| Occupancy and depreciation | 1,698 | 1,649 | 1,536 | 4,930 | 4,600 | |||||||
| Data processing | 712 | 710 | 705 | 2,096 | 2,184 | |||||||
| Amortization of core deposit intangible | 27 | 27 | 29 | 81 | 87 | |||||||
| Advertising and marketing | 282 | 355 | 202 | 950 | 694 | |||||||
| FDIC insurance premium | 178 | 175 | 116 | 530 | 351 | |||||||
| State and local taxes | 355 | 233 | 225 | 814 | 634 | |||||||
| Telecommunications | 56 | 52 | 48 | 161 | 153 | |||||||
| Professional fees | 353 | 265 | 343 | 961 | 924 | |||||||
| Other | 799 | 778 | 662 | 2,116 | 1,975 | |||||||
| Total non-interest expense | 10,551 | 10,089 | 9,848 | 30,618 | 29,421 | |||||||
| INCOME BEFORE INCOME TAXES | 1,829 | 3,169 | 6,815 | 8,664 | 19,594 | |||||||
| PROVISION FOR INCOME TAXES | 377 | 697 | 1,575 | 1,897 | 4,508 | |||||||
| NET INCOME | $ | 1,452 | $ | 2,472 | $ | 5,240 | $ | 6,767 | $ | 15,086 | ||
| Earnings per common share: | ||||||||||||
| Basic | $ | 0.07 | $ | 0.12 | $ | 0.24 | $ | 0.32 | $ | 0.69 | ||
| Diluted | $ | 0.07 | $ | 0.12 | $ | 0.24 | $ | 0.32 | $ | 0.69 | ||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 21,113,464 | 21,190,987 | 21,504,903 | 21,146,888 | 21,717,959 | |||||||
| Diluted | 21,113,464 | 21,191,309 | 21,513,617 | 21,148,679 | 21,726,552 | |||||||
| (Dollars in thousands) | At or for the three months ended | At or for the nine months ended | |||||||||||||||||
| Dec. 31, 2023 | Sept. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||
| Average interest–earning assets | $ | 1,494,341 | $ | 1,492,805 | $ | 1,564,143 | $ | 1,494,443 | $ | 1,605,166 | |||||||||
| Average interest-bearing liabilities | 1,028,817 | 1,022,044 | 986,198 | 1,021,532 | 1,023,944 | ||||||||||||||
| Net average earning assets | 465,524 | 470,761 | 577,945 | 472,911 | 581,222 | ||||||||||||||
| Average loans | 1,015,741 | 1,008,363 | 1,017,214 | 1,008,429 | 1,005,104 | ||||||||||||||
| Average deposits | 1,209,524 | 1,245,382 | 1,445,049 | 1,235,032 | 1,488,404 | ||||||||||||||
| Average equity | 153,901 | 155,443 | 150,106 | 155,264 | 153,945 | ||||||||||||||
| Average tangible equity (non-GAAP) | 126,511 | 128,026 | 122,606 | 127,847 | 126,417 | ||||||||||||||
| ASSET QUALITY | Dec. 31, 2023 | Sept. 30, 2023 | Dec. 31, 2022 | ||||||||||||||||
| Non-performing loans | $ | 186 | $ | 198 | $ | 12,613 | |||||||||||||
| Non-performing loans excluding SBA Government Guarantee (non-GAAP) | 186 | 198 | 236 | ||||||||||||||||
| Non-performing loans to total loans | 0.02 | % | 0.02 | % | 1.24 | % | |||||||||||||
| Non-performing loans to total loans excluding SBA Government Guarantee (non-GAAP) | 0.02 | % | 0.02 | % | 0.02 | % | |||||||||||||
| Real estate/repossessed assets owned | $ | - | $ | - | $ | - | |||||||||||||
| Non-performing assets | $ | 186 | $ | 198 | $ | 12,613 | |||||||||||||
| Non-performing assets excluding SBA Government Guarantee (non-GAAP) | 186 | 198 | 236 | ||||||||||||||||
| Non-performing assets to total assets | 0.01 | % | 0.01 | % | 0.79 | % | |||||||||||||
| Non-performing assets to total assets excluding SBA Government Guarantee (non-GAAP) | 0.01 | % | 0.01 | % | 0.01 | % | |||||||||||||
| Net loan charge-offs (recoveries) in the quarter | $ | (15 | ) | $ | (3 | ) | $ | (6 | ) | ||||||||||
| Net charge-offs (recoveries) in the quarter/average net loans | (0.01 | )% | 0.00 | % | 0.00 | % | |||||||||||||
| Allowance for credit losses | $ | 15,361 | $ | 15,346 | $ | 14,558 | |||||||||||||
| Average interest-earning assets to average | |||||||||||||||||||
| interest-bearing liabilities | 145.25 | % | 146.06 | % | 158.60 | % | |||||||||||||
| Allowance for credit losses to | |||||||||||||||||||
| non-performing loans | 8258.60 | % | 7750.51 | % | 115.42 | % | |||||||||||||
| Allowance for credit losses to total loans | 1.51 | % | 1.51 | % | 1.43 | % | |||||||||||||
| Shareholders’ equity to assets | 9.96 | % | 9.60 | % | 9.51 | % | |||||||||||||
| CAPITAL RATIOS | |||||||||||||||||||
| Total capital (to risk weighted assets) | 16.67 | % | 16.91 | % | 16.71 | % | |||||||||||||
| Tier 1 capital (to risk weighted assets) | 15.42 | % | 15.66 | % | 15.46 | % | |||||||||||||
| Common equity tier 1 (to risk weighted assets) | 15.42 | % | 15.66 | % | 15.46 | % | |||||||||||||
| Tier 1 capital (to average tangible assets) | 10.53 | % | 10.74 | % | 10.10 | % | |||||||||||||
| Tangible common equity (to average tangible assets) (non-GAAP) | 8.39 | % | 8.01 | % | 7.93 | % | |||||||||||||
| DEPOSIT MIX | Dec. 31, 2023 | Sept. 30, 2023 | Dec. 31, 2022 | March 31, 2023 | |||||||||||||||
| Interest checking | $ | 272,019 | $ | 237,789 | $ | 277,101 | $ | 254,522 | |||||||||||
| Regular savings | 199,911 | 222,578 | 290,137 | 255,147 | |||||||||||||||
| Money market deposit accounts | 225,727 | 249,580 | 240,849 | 221,778 | |||||||||||||||
| Non-interest checking | 350,744 | 375,780 | 471,776 | 404,937 | |||||||||||||||
| Certificates of deposit | 170,491 | 154,039 | 86,134 | 128,833 | |||||||||||||||
| Total deposits | $ | 1,218,892 | $ | 1,239,766 | $ | 1,365,997 | $ | 1,265,217 | |||||||||||
| COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS | |||||||||||||
| Other | Commercial | ||||||||||||
| Commercial | Real Estate | Real Estate | & Construction | ||||||||||
| Business | Mortgage | Construction | Total | ||||||||||
| December 31, 2023 | (Dollars in thousands) | ||||||||||||
| Commercial business | $ | 229,249 | $ | - | $ | - | $ | 229,249 | |||||
| Commercial construction | - | - | 26,396 | 26,396 | |||||||||
| Office buildings | - | 115,645 | - | 115,645 | |||||||||
| Warehouse/industrial | - | 107,966 | - | 107,966 | |||||||||
| Retail/shopping centers/strip malls | - | 90,389 | - | 90,389 | |||||||||
| Assisted living facilities | - | 382 | - | 382 | |||||||||
| Single purpose facilities | - | 258,693 | - | 258,693 | |||||||||
| Land | - | 8,690 | - | 8,690 | |||||||||
| Multi-family | - | 67,017 | - | 67,017 | |||||||||
| One-to-four family construction | - | - | 15,771 | 15,771 | |||||||||
| Total | $ | 229,249 | $ | 648,782 | $ | 42,167 | $ | 920,198 | |||||
| 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 MIX | Dec. 31, 2023 | Sept. 30, 2023 | Dec. 31, 2022 | March 31, 2023 | |||||||||
| Commercial and construction | (Dollars in thousands) | ||||||||||||
| Commercial business | $ | 229,249 | $ | 242,041 | $ | 238,740 | $ | 232,868 | |||||
| Other real estate mortgage | 648,782 | 624,606 | 623,818 | 626,769 | |||||||||
| Real estate construction | 42,167 | 50,785 | 51,153 | 47,762 | |||||||||
| Total commercial and construction | 920,198 | 917,432 | 913,711 | 907,399 | |||||||||
| Consumer | |||||||||||||
| Real estate one-to-four family | 96,266 | 96,351 | 101,122 | 99,673 | |||||||||
| Other installment | 1,735 | 1,842 | 1,680 | 1,784 | |||||||||
| Total consumer | 98,001 | 98,193 | 102,802 | 101,457 | |||||||||
| Total loans | 1,018,199 | 1,015,625 | 1,016,513 | 1,008,856 | |||||||||
| Less: | |||||||||||||
| Allowance for credit losses | 15,361 | 15,346 | 14,558 | 15,309 | |||||||||
| Loans receivable, net | $ | 1,002,838 | $ | 1,000,279 | $ | 1,001,955 | $ | 993,547 | |||||
| DETAIL OF NON-PERFORMING ASSETS | |||||||||||||
| Southwest | |||||||||||||
| Washington | Total | ||||||||||||
| December 31, 2023 | (Dollars in thousands) | ||||||||||||
| Commercial business | $ | 63 | $ | 63 | |||||||||
| Commercial real estate | 85 | 85 | |||||||||||
| Consumer | 38 | 38 | |||||||||||
| Total non-performing assets | $ | 186 | $ | 186 | |||||||||
| At or for the three months ended | At or for the nine months ended | |||||||||||||||||||
| SELECTED OPERATING DATA | Dec. 31, 2023 | Sept. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |||||||||||||||
| Efficiency ratio (4) | 85.23 | % | 76.10 | % | 59.10 | % | 77.94 | % | 60.02 | % | ||||||||||
| Coverage ratio (6) | 88.37 | % | 97.64 | % | 139.11 | % | 96.46 | % | 135.25 | % | ||||||||||
| Return on average assets (1) | 0.37 | % | 0.62 | % | 1.27 | % | 0.57 | % | 1.19 | % | ||||||||||
| Return on average equity (1) | 3.75 | % | 6.33 | % | 13.85 | % | 5.80 | % | 13.01 | % | ||||||||||
| Return on average tangible equity (1) (non-GAAP) | 4.57 | % | 7.68 | % | 16.96 | % | 7.04 | % | 15.84 | % | ||||||||||
| NET INTEREST SPREAD | ||||||||||||||||||||
| Yield on loans | 4.56 | % | 4.51 | % | 4.50 | % | 4.53 | % | 4.42 | % | ||||||||||
| Yield on investment securities | 2.01 | % | 2.00 | % | 2.01 | % | 2.02 | % | 1.89 | % | ||||||||||
| Total yield on interest-earning assets | 3.81 | % | 3.75 | % | 3.67 | % | 3.77 | % | 3.46 | % | ||||||||||
| Cost of interest-bearing deposits | 0.98 | % | 0.85 | % | 0.12 | % | 0.82 | % | 0.12 | % | ||||||||||
| Cost of FHLB advances and other borrowings | 5.83 | % | 5.84 | % | 5.88 | % | 5.77 | % | 4.64 | % | ||||||||||
| Total cost of interest-bearing liabilities | 1.91 | % | 1.63 | % | 0.30 | % | 1.66 | % | 0.25 | % | ||||||||||
| Spread (7) | 1.90 | % | 2.12 | % | 3.37 | % | 2.11 | % | 3.21 | % | ||||||||||
| Net interest margin | 2.49 | % | 2.63 | % | 3.48 | % | 2.64 | % | 3.30 | % | ||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Basic earnings per share (2) | $ | 0.07 | $ | 0.12 | $ | 0.24 | $ | 0.32 | $ | 0.69 | ||||||||||
| Diluted earnings per share (3) | 0.07 | 0.12 | 0.24 | 0.32 | 0.69 | |||||||||||||||
| Book value per share (5) | 7.51 | 7.20 | 7.07 | 7.51 | 7.07 | |||||||||||||||
| Tangible book value per share (5) (non-GAAP) | 6.21 | 5.90 | 5.79 | 6.21 | 5.79 | |||||||||||||||
| Market price per share: | ||||||||||||||||||||
| High for the period | $ | 6.48 | $ | 5.97 | $ | 7.96 | $ | 6.48 | $ | 7.96 | ||||||||||
| Low for the period | 5.35 | 5.04 | 6.25 | 4.17 | 6.09 | |||||||||||||||
| Close for period end | 6.40 | 5.56 | 7.68 | 6.40 | 7.68 | |||||||||||||||
| Cash dividends declared per share | 0.0600 | 0.0600 | 0.0600 | 0.1800 | 0.1800 | |||||||||||||||
| Average number of shares outstanding: | ||||||||||||||||||||
| Basic (2) | 21,113,464 | 21,190,987 | 21,504,903 | 21,146,888 | 21,717,959 | |||||||||||||||
| Diluted (3) | 21,113,464 | 21,191,309 | 21,513,617 | 21,148,679 | 21,726,552 | |||||||||||||||
(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: | Dan Cox or David Lam |
| Riverview Bancorp, Inc. 360-693-6650 |
FAQ
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