Riverview Bancorp Inc 8-K, filed Nov 3, 2020
Riverview Bancorp Inc (RVSB)
8-K
2020-11-03
For: 2020-10-29
View Original
Added on
April 10, 2026
About this 8-K
Riverview Bancorp Inc filed this 8-K on November 3, 2020, reporting on events of October 29, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2020
RIVERVIEW BANCORP, INC.
(Exact name of registrant as specified in its charter)
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Washington
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000-22957
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91-1838969
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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900 Washington Street, Suite 900, Vancouver, Washington
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98660
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (360) 693-6650
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.
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[ ] Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ] Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act
(17 CFR 240.14d-2(b))
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[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
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Trading Symbol(s)
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Name of each exchange on which registered |
| Common Stock, Par Value $0.01 per share |
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RVSB |
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The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2020, Riverview Bancorp, Inc. issued its earnings release for the quarter ended September 30, 2020. A copy of the press release is attached hereto as Exhibit
99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is being furnished herewith and this list shall constitute the exhibit index:
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
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RIVERVIEW BANCORP, INC. |
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Date: October 29, 2020
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/s/ David Lam
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David Lam
Chief Financial Officer
(Principal Financial Officer)
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Exhibit 99.1
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Riverview Bancorp, Inc. 360-693-6650
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Riverview Bancorp Reports Second Quarter Earnings of $2.5 Million
Results Reflect Decreases in the Provision for Loan Losses and Loan Modifications
Results Reflect Decreases in the Provision for Loan Losses and Loan Modifications
Vancouver, WA – October 29, 2020 - Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported earnings of $2.5 million, or $0.11
per diluted share for the second fiscal quarter ended September 30, 2020, compared to $480,000, or $0.02 per diluted share, in the preceding quarter, and $4.5 million, or $0.20 per diluted share, in the second fiscal quarter a year ago. In the first
six months of fiscal 2021, net income was $3.0 million, or $0.14 per diluted share, compared to $8.7 million, or $0.38 per diluted share, in the first six months of fiscal 2020.
“Riverview’s second quarter financial results continue to demonstrate the strength and resilience of our franchise,” stated Kevin Lycklama, president and chief
executive officer. “We have remained focused on credit quality, maintaining our strong capital position and our continuous pursuit of improving operating efficiencies. I am extremely proud of the outstanding job by our entire team, who have shown
tremendous resiliency during the ongoing pandemic and continue to provide the personal attention that our local business partners have come to expect from Riverview.”
Second Quarter Highlights (at or for the period ended September 30, 2020)
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•
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Net income was $2.5 million, or $0.11 per diluted share.
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•
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Pre-tax, pre-provision for loan losses income (non-GAAP) was $5.0 million for the quarter compared to $5.1 million in the previous quarter and $5.9 million for the quarter ended
September 30, 2019.
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•
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Net interest margin (NIM) was 3.33%.
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•
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Provision for loan losses was $1.8 million, reflecting improved economic conditions and specific industry exposure in the loan portfolio.
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•
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Total loans were $975.2 million at September 30, 2020. SBA PPP loans totaled $110.8 million.
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•
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Total deposits increased $41.2 million, or 14.1% annualized, during the quarter to $1.20 billion.
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•
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Non-performing assets decreased to 0.09% of total assets.
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•
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Total risk-based capital ratio was 17.53% and Tier 1 leverage ratio was 9.82%.
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•
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Paid a quarterly cash dividend of $0.05 per share.
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“We are encouraged by the positive improvements noted during the quarter. Deposit activity has remained strong with annualized growth of nearly 15%. Loan
accommodations decreased significantly during the quarter as our clients have experienced steady recoveries as local markets reopen. The improvement in regional business activity also had a positive impact on our non-interest income during the
quarter and we effectively executed on our ongoing expense control measures,” Lycklama added.
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 2
COVID-19 Operational Update:
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•
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Industry Exposure: Both Washington and Oregon have modified phased reopening plans in place for businesses. While the economic impact is
widespread, some industries are more acutely affected by the current business decline. Riverview’s loan portfolio exposure to industries most affected by the COVID-19 pandemic include:
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o
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Hotel/Motel ($108.2 million, 11.0% of total loans)
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o
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Retail Strip Centers ($79.6 million, 8.1% of total loans)
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o
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Restaurants/Fast Food ($14.9 million, 1.5% of total loans)
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Loans to these clients are generally secured by real estate and had strong financial performance heading into the current pandemic. The
weighted average loan-to-value and debt service coverage ratio for these portfolios were as follows: Hotel/Motel (51% and 1.90x), Retail Strip Centers (53% and 1.56x), and Restaurants/Fast Food (57% and 1.58x).
The Company continues to diligently monitor the effects of the pandemic on our customers. We have allocated additional staffing resources to
conduct enhanced monitoring of our loan portfolio and identify at-risk borrowers. We remain in close contact and continue to work with these borrowers to develop longer term strategies to mitigate potential credit losses.
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•
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Loan Accommodations:
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o
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Commercial Loans. Loan modifications decreased 87% during the quarter. As of September 30, 2020, Riverview had 13 commercial loan accommodations
totaling $49.7 million, a decrease from 98 loans totaling $161.6 million at June 30, 2020. Of these 13 loans, two were new loan accommodations approved during the quarter totaling $2.1 million. In October, Riverview received three new loan
accommodation requests totaling $1.1 million to two different borrowers.
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o
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Consumer Loans. As of September 30, 2020, there were four consumer loan accommodations in our portfolio totaling $471,000, a decrease from 43
loans totaling $10.1 million at June 30, 2020.
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o
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Since all these loans were performing and current on payments prior to COVID-19, these loan modifications are not considered to be troubled debt restructurings pursuant to provisions
contained within the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).
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•
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Loan Loss Reserve: Riverview recorded a $1.8 million provision for loan losses for the quarter ended September 30, 2020, bringing the allowance
for loan losses to $18.9 million, or 1.93% of total loans, at September 30, 2020 compared to $17.1 million, or 1.70% of total loans, at June 30, 2020. “Our provision for loan losses decreased during the quarter and reflects the improvement
in asset quality metrics in our portfolio and positive economic trends in our local markets. We believe we are adequately reserved for the current environment and are well-positioned to support our long-term growth initiatives,” said David
Lam, executive vice president and chief financial officer.
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•
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Paycheck Protection Program (“PPP”) Loans: At September 30, 2020, Riverview had originated 790 loans totaling approximately $116.4 million with an
average loan size of $147,000. Riverview did not originate any new PPP loans during the second fiscal quarter of 2021. The following table presents the breakdown of PPP loans as of September 30, 2020 (in thousands):
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Range
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Number of loans
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Total
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Under $50,000
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365
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$
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8,671
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$50,001 to $150,000
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251
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21,633
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$150,001 to $350,000
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107
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23,996
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$350,001 to $2,000,000
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59
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40,191
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Over $2,000,000
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8
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21,937
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Total
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790
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$
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116,428
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RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 3
PPP loan fees totaled $4.1 million of which $2.8 million remains unamortized as of September 30, 2020. These fees are deferred and are
realized over the life of the loan or will be recognized in proportion to the amount of the loan when forgiven by the SBA. “We are now starting to process applications for PPP loan forgiveness for customers. We expect the timing of the loan
forgiveness to have a meaningful benefit to operating results beginning in the fourth quarter of fiscal year 2021,” said Lycklama.
Income Statement
Return on average assets was 0.71% in the second quarter of fiscal 2021 compared to 0.15% in the preceding quarter. Return on average equity and return on
average tangible equity (non-GAAP) was 6.71% and 8.23%, respectively, compared to 1.28% and 1.57% for the prior quarter.
Riverview’s net interest income for the quarter was $11.1 million, flat compared to the preceding quarter and slightly lower than the $11.7 million reported in
the second quarter of the prior year. In the first six months of fiscal 2021, net interest income was $22.2 million compared to $23.2 million in the first six months of fiscal 2020.
The Company’s NIM continues to be impacted by the increased level of excess liquidity. Second fiscal quarter NIM (GAAP) was 3.33% compared to 3.65% in the
prior quarter and 4.36% in the second quarter of fiscal 2020. The decrease in NIM was primarily due to the increase in liquidity and the decrease in the yield on interest earning assets, which were partially offset by decreases in the cost of
interest-bearing liabilities. In the first six months of fiscal 2021, the net interest margin was 3.48% compared to 4.35% in the same period a year earlier.
The average balance of our overnight cash balances increased $109.8 million sequentially and $194.0 million compared to the prior year as a result of the
increase in deposit balances. The increase in overnight cash balances resulted in a 27 basis point decrease in the NIM compared to the prior quarter and a 55 basis point decrease compared to the same quarter a year ago.
The accretion on purchased loans totaled $123,000 compared to $137,000 during the preceding quarter and $78,000 in the same period a year ago, resulting in a
four basis point increase in the NIM for the current period compared to a five basis point increase for the preceding quarter and a two basis point increase for the same period a year ago. Net fees on loan prepayments, which included purchased SBA
loan premiums, decreased interest income by $77,000 which negatively affected the NIM by two basis points during the second fiscal quarter of 2021. This compares to $100,000 in net fees on loan prepayments decreasing the NIM by four basis points for
the first fiscal quarter of 2021 and $112,000 in net fees on loan prepayments adding four basis points to the NIM for the second fiscal quarter a year ago. SBA PPP loans and related income and fees decreased the NIM by six basis points during the
quarter, and by four basis points during the preceding quarter. This resulted in a core-NIM (non-GAAP) of 3.37% in the current quarter compared to 3.68% in the preceding quarter and 4.30% in the second fiscal quarter a year ago.
Loan yield decreased 11 basis points during the quarter to 4.58% compared to 4.69% in the preceding quarter primarily as a result of the impact from the lower
yielding SBA PPP loans and the decline in market interest rates. Loan yield excluding SBA PPP loans was 4.81% for the second quarter compared to 4.83% in the preceding quarter.
The cost of deposits decreased to 0.22% during the second quarter compared to 0.31% in the preceding quarter and 0.27% during the second quarter of fiscal
2020. The sequential decrease in deposit costs during the September 30, 2020 quarter reflects the impact from the recent cuts in the federal funds target rate by the Federal Reserve in response to the COVID-19 pandemic. Deposit costs are expected to
further decrease as a result of the continued low interest rate environment and as certificates of deposit reach maturity. There are $83.6 million in CD balances that mature within one year of September 30, 2020, with a weighted average rate of
1.35%.
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 4
Non-interest income increased $196,000 during the quarter to $2.8 million compared to $2.6 million in the preceding quarter and was lower when compared to $3.2
million in the second fiscal quarter of 2020. Fees and service charges increased compared to the prior quarter as economic activity and consumer spending improved in Riverview’s local markets; however, these amounts remain lower than prior year due
to the overall impact of the COVID pandemic. In the first six months of fiscal 2021, non-interest income was $5.4 million compared to $6.3 million in the same period a year ago.
Asset management fees decreased to $883,000 during the second fiscal quarter compared to $974,000 in the preceding quarter and $1.1 million in the prior year.
The year over year decrease was primarily due to the impact from the decline in interest rates on fee generating products. Riverview Trust Company’s assets under management was $1.3 billion at September 30, 2020, unchanged from three months earlier.
Assets under management were $690.5 million a year earlier.
Non-interest expense was $8.8 million compared to $8.7 million in the preceding quarter and $9.0 million in the second fiscal quarter a year ago. Salaries and
employee benefits was $5.4 million compared to $5.2 million in the preceding quarter and $5.7 million in the second fiscal quarter a year ago. Salaries and employee benefits during the prior quarter included the deferral of compensation related to
origination costs of SBA PPP loans of $553,000. Occupancy and depreciation expense remained comparable to the preceding quarter but was higher than a year ago, as Riverview continues to invest in its technology infrastructure. FDIC insurance premiums
increased compared to the preceding quarter to $84,000 due to the Company utilizing its remaining FDIC assessment credits. Year-to-date, non-interest expense was $17.5 million compared to $18.2 million in the first six months of fiscal 2020.
The efficiency ratio was 63.7% for the second fiscal quarter compared to 63.2% in the preceding quarter and 60.5% in the second fiscal quarter a year ago.
Riverview’s effective tax rate for the second quarter of fiscal year 2021 was 21.7% compared to 23.0% for the second quarter a year ago.
Balance Sheet Review
Riverview’s total loans decreased $27.5 million during the quarter to $975.2 million compared to $1.00 billion in the preceding quarter and increased $93.9
million compared to $881.3 million a year ago. Loan growth for the quarter was impacted by continued payoffs and paydowns. The year over year increase was primarily driven by SBA PPP loans originated during the prior quarter. SBA PPP loans balances
totaled $110.8 million at September 30, 2020. The decrease in real estate one-to-four family loans was due to the strategic decision to broker all new loan originations to third-party mortgage companies. The Company’s loan pipeline increased to $74.6
million at September 30, 2020 compared to $27.9 million at the end of the prior quarter, as increased economic activity in our markets helped stabilize and improve lending activity.
Undisbursed construction loans totaled $12.0 million at September 30, 2020 compared to $18.1 million in the preceding quarter, with the majority of the
undisbursed construction loans expected to fund over the next several quarters. Revolving commercial business loan commitments totaled $73.9 million at September 30, 2020. Utilization on these loans totaled 8.7% at September 30, 2020 compared to
16.0% at June 30, 2020. The weighted average rate on loan originations during the quarter was 4.12% at September 30, 2020 compared to 3.36% at June 30, 2020.
Deposits increased $41.2 million during the quarter to $1.20 billion at September 30, 2020 compared to $1.16 billion in the preceding quarter and increased
$217.7 million compared to $982.3 million a year earlier. The increase in deposits during the quarter was primarily concentrated in checking accounts, which increased $23.9 million. Checking accounts as a percentage of total deposits increased to
51.4% at September 30, 2020 from 48.7% at September 30, 2019.
Shareholders’ equity was $149.0 million at September 30, 2020 compared to $147.5 million three months earlier and $143.1 million a year earlier. Tangible book
value per share (non-GAAP) increased to $5.43 at September 30, 2020 compared to $5.38 at June 30, 2020 and $5.06 at September 30, 2019. Riverview paid a quarterly cash dividend of $0.05 per share on October 20, 2020, consistent with the prior
quarter.
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 5
Credit Quality
Non-performing loans totaled $1.3 million, or 0.13% of total loans, at September 30, 2020, flat compared to three months earlier. Non-performing loans were
$1.5 million, or 0.17% of total loans, at September 30, 2019. Net loan charge-offs were $10,000 during the second fiscal quarter of 2021 compared to $48,000 in the preceding quarter and $6,000 in the second fiscal quarter a year ago.
Classified assets totaled $4.8 million at September 30, 2020 compared to $5.0 million at June 30, 2020 and $4.3 million at September 30, 2019. The classified
asset to total capital ratio was 3.2% at September 30, 2020 compared to 3.3% three months earlier and 3.0% a year earlier.
At September 30, 2020, the allowance for loan losses increased to $18.9 million compared to $17.1 million in the preceding quarter and $11.4 million one year
earlier. The allowance for loan losses represented 1.93% of total loans at September 30, 2020 compared to 1.70% in the preceding quarter and 1.30% a year earlier. The allowance for loan losses to loans, net of SBA guaranteed loans (including SBA PPP
loans) (non-GAAP), was 2.35% at September 30, 2020, and 2.08% at June 30, 2020. Included in the carrying value of loans are net discounts on the MBank purchased loans, which may reduce the need for an allowance for loan losses on these loans because
they are carried at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $871,000 at September 30, 2020 compared to $994,000 three months 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 17.53% and a Tier 1 leverage ratio of 9.82% at September 30, 2020. Tangible common equity to average tangible assets ratio (non-GAAP) was 8.68% at September 30, 2020.
Branch Consolidation
Riverview continues to actively review its branch network for efficiencies due to customers’ increased usage of online and mobile banking technologies. On
September 28, 2020, Riverview consolidated two of its branches in Clark County, Washington and simultaneously opened a new branch in the Cascade Park neighborhood of Vancouver. The Company also announced the consolidation of one additional branch
scheduled for January 2021. Riverview plans to open a new location in Ridgefield, Washington which is expected to open during the summer of 2021.
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.
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 6
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Tangible shareholders' equity to tangible assets and tangible book value per share:
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(Dollars in thousands)
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September 30, 2020
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June 30, 2020
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September 30, 2019
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March 31, 2020
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||||||||||||
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Shareholders' equity (GAAP)
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$
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149,046
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$
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147,478
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$
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143,119
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$
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148,843
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||||||||
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Exclude: Goodwill
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(27,076
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)
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(27,076
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)
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(27,076
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)
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(27,076
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)
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||||||||
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Exclude: Core deposit intangible, net
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(689
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)
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(724
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)
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(839
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)
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(759
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)
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Tangible shareholders' equity (non-GAAP)
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$
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121,281
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$
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119,678
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$
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115,204
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$
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121,008
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||||||||
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Total assets (GAAP)
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$
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1,425,171
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$
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1,377,374
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$
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1,173,019
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$
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1,180,808
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||||||||
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Exclude: Goodwill
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(27,076
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)
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(27,076
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)
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(27,076
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)
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(27,076
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)
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||||||||
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Exclude: Core deposit intangible, net
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(689
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)
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(724
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)
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(839
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)
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(759
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)
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||||||||
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Tangible assets (non-GAAP)
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$
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1,397,406
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$
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1,349,574
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$
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1,145,104
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$
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1,152,973
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||||||||
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Shareholders' equity to total assets (GAAP)
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10.46
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%
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10.71
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%
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12.20
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%
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12.61
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%
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||||||||
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Tangible common equity to tangible assets (non-GAAP)
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8.68
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%
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8.87
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%
|
10.06
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%
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10.50
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%
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||||||||
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Shares outstanding
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22,336,235
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22,245,472
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22,748,385
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22,544,285
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||||||||||||
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Book value per share (GAAP)
|
6.67
|
6.63
|
6.29
|
6.60
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||||||||||||
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Tangible book value per share (non-GAAP)
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5.43
|
5.38
|
5.06
|
5.37
|
||||||||||||
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Pre-tax, pre-provision income
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||||||||||||||||||||
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Three Months Ended
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Six Months Ended
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|||||||||||||||||||
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(Dollars in thousands)
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September 30, 2020
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June 30, 2020
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September 30, 2019
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September 30, 2020
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September 30, 2019
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|||||||||||||||
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Net income (GAAP)
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$
|
2,543
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$
|
480
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$
|
4,534
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$
|
3,023
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$
|
8,726
|
||||||||||
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Include: Provision for income taxes
|
704
|
86
|
1,351
|
790
|
2,571
|
|||||||||||||||
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Include: Provision for loan losses
|
1,800
|
4,500
|
-
|
6,300
|
-
|
|||||||||||||||
|
Pre-tax, pre-provision income (non-GAAP)
|
$
|
5,047
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$
|
5,066
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$
|
5,885
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$
|
10,113
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$
|
11,297
|
||||||||||
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Net interest margin reconciliation to core net interest margin
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||||||||||||||||||||
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Three Months Ended
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Six Months Ended
|
|||||||||||||||||||
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(Dollars in thousands)
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September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
September 30, 2020
|
September 30, 2019
|
|||||||||||||||
|
Net interest income (GAAP)
|
$
|
11,064
|
$
|
11,128
|
$
|
11,719
|
$
|
22,192
|
$
|
23,189
|
||||||||||
|
Tax equivalent adjustment
|
5
|
6
|
11
|
11
|
23
|
|||||||||||||||
|
Net fees on loan prepayments
|
77
|
100
|
(112
|
)
|
177
|
(144
|
)
|
|||||||||||||
|
Accretion on purchased MBank loans
|
(123
|
)
|
(137
|
)
|
(78
|
)
|
(260
|
)
|
(186
|
)
|
||||||||||
|
SBA PPP loans interest income and fees
|
(760
|
)
|
(666
|
)
|
-
|
(1,426
|
)
|
-
|
||||||||||||
|
Adjusted net interest income (non-GAAP)
|
$
|
10,263
|
$
|
10,431
|
$
|
11,540
|
$
|
20,694
|
$
|
22,882
|
||||||||||
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
|
(Dollars in thousands)
|
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
September 30, 2020
|
September 30, 2019
|
|||||||||||||||
|
Average balance of interest-earning assets (GAAP)
|
$
|
1,318,803
|
$
|
1,222,686
|
$
|
1,069,209
|
$
|
1,271,007
|
$
|
1,067,737
|
||||||||||
|
SBA PPP loans (average)
|
(110,573
|
)
|
(84,809
|
)
|
-
|
(97,762
|
)
|
-
|
||||||||||||
|
Average balance of interest-earning assets
|
||||||||||||||||||||
|
excluding SBA PPP loans (non-GAAP)
|
$
|
1,208,230
|
$
|
1,137,877
|
$
|
1,069,209
|
$
|
1,173,245
|
$
|
1,067,737
|
||||||||||
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
|
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
September 30, 2020
|
September 30, 2019
|
||||||||||||||||
|
Net interest margin (GAAP)
|
3.33
|
%
|
3.65
|
%
|
4.36
|
%
|
3.48
|
%
|
4.35
|
%
|
||||||||||
|
Net fees on loan prepayments
|
0.02
|
0.04
|
(0.04
|
)
|
0.03
|
(0.03
|
)
|
|||||||||||||
|
Accretion on purchased MBank loans
|
(0.04
|
)
|
(0.05
|
)
|
(0.02
|
)
|
(0.04
|
)
|
(0.04
|
)
|
||||||||||
|
SBA PPP loans
|
0.06
|
0.04
|
0.00
|
0.05
|
0.00
|
|||||||||||||||
|
Core net interest margin (non-GAAP)
|
3.37
|
%
|
3.68
|
%
|
4.30
|
%
|
3.52
|
%
|
4.28
|
%
|
||||||||||
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 7
|
Allowance for loan losses reconciliation, excluding SBA purchased and PPP loans
|
||||||||||||||||
|
(Dollars in thousands)
|
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
March 31, 2020
|
||||||||||||
|
Allowance for loan losses
|
$
|
18,866
|
$
|
17,076
|
$
|
11,436
|
$
|
12,624
|
||||||||
|
Loans receivable (GAAP)
|
$
|
975,174
|
$
|
1,002,720
|
$
|
881,316
|
$
|
911,509
|
||||||||
|
Exclude: SBA purchased loans
|
(61,990
|
)
|
(70,853
|
)
|
(68,932
|
)
|
(74,797
|
)
|
||||||||
|
Exclude: SBA PPP loans
|
(110,794
|
)
|
(110,341
|
)
|
-
|
-
|
||||||||||
|
Loans receivable excluding SBA purchased and PPP loans (non-GAAP)
|
$
|
802,390
|
$
|
821,526
|
$
|
812,384
|
$
|
836,712
|
||||||||
|
Allowance for loan losses to loans receivable (GAAP)
|
1.93
|
%
|
1.70
|
%
|
1.30
|
%
|
1.38
|
%
|
||||||||
|
Allowance for loan losses to loans receivable excluding SBA purchased and PPP loans (non-GAAP)
|
2.35
|
%
|
2.08
|
%
|
1.41
|
%
|
1.51
|
%
|
||||||||
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
$1.43 billion at September 30, 2020, it is the parent company of the 97-year-old Riverview Community 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 18 branches, including 14 in the Portland-Vancouver area, and 3 lending centers. For the past 7 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
that are subject to risks and uncertainties, including, but not limited to: the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as the impact on general economic and financial conditions and other
uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market
liquidity; the Company’s ability to raise common 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 Comptroller of the Currency 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; 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 future goodwill impairment
due to changes in the Company’s business, changes in market conditions, including as a result of the COVID-19 pandemic and other factors related thereto; increased competitive pressures among financial services companies; changes in consumer
spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company’s ability to pay dividends on its common stock; and interest or principal
payments on its junior subordinated debentures; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial
institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; other economic, competitive, governmental,
regulatory, and technological factors affecting the Company’s operations, pricing, products and services and the other risks described from time to time in our filings with the SEC.
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 8
Such forward-looking statements may include projections. Any such projections were not prepared in accordance with published guidelines of the American
Institute of Certified Public Accountants or the Securities Exchange Commission regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such
projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be
materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct.
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 2021 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.
October 29, 2020
Page 9
|
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
|
||||||||||||||||
|
Consolidated Balance Sheets
|
||||||||||||||||
|
(In thousands, except share data) (Unaudited)
|
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
March 31, 2020
|
||||||||||||
|
ASSETS
|
||||||||||||||||
|
Cash (including interest-earning accounts of $226,583, $143,017,
|
$
|
238,016
|
$
|
157,835
|
$
|
48,888
|
$
|
41,968
|
||||||||
|
$32,632 and $27,866)
|
||||||||||||||||
|
Certificate of deposits held for investment
|
249
|
249
|
249
|
249
|
||||||||||||
|
Loans held for sale
|
-
|
-
|
310
|
275
|
||||||||||||
|
Investment securities:
|
||||||||||||||||
|
Available for sale, at estimated fair value
|
126,273
|
137,749
|
163,682
|
148,291
|
||||||||||||
|
Held to maturity, at amortized cost
|
24
|
26
|
31
|
28
|
||||||||||||
|
Loans receivable (net of allowance for loan losses of $18,866,
|
||||||||||||||||
|
$17,076, $11,436, and $12,624)
|
956,308
|
985,644
|
869,880
|
898,885
|
||||||||||||
|
Prepaid expenses and other assets
|
16,018
|
9,062
|
8,136
|
7,452
|
||||||||||||
|
Accrued interest receivable
|
5,341
|
5,202
|
3,827
|
3,704
|
||||||||||||
|
Federal Home Loan Bank stock, at cost
|
2,620
|
2,620
|
1,380
|
1,420
|
||||||||||||
|
Premises and equipment, net
|
17,296
|
16,124
|
13,943
|
15,570
|
||||||||||||
|
Financing lease right-of-use assets
|
1,470
|
1,489
|
1,547
|
1,508
|
||||||||||||
|
Deferred income taxes, net
|
3,076
|
3,067
|
3,296
|
3,277
|
||||||||||||
|
Mortgage servicing rights, net
|
128
|
162
|
247
|
191
|
||||||||||||
|
Goodwill
|
27,076
|
27,076
|
27,076
|
27,076
|
||||||||||||
|
Core deposit intangible, net
|
689
|
724
|
839
|
759
|
||||||||||||
|
Bank owned life insurance
|
30,587
|
30,345
|
29,688
|
30,155
|
||||||||||||
|
TOTAL ASSETS
|
$
|
1,425,171
|
$
|
1,377,374
|
$
|
1,173,019
|
$
|
1,180,808
|
||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
|
LIABILITIES:
|
||||||||||||||||
|
Deposits
|
$
|
1,199,972
|
$
|
1,158,749
|
$
|
982,275
|
$
|
990,448
|
||||||||
|
Accrued expenses and other liabilities
|
16,087
|
11,472
|
17,502
|
11,783
|
||||||||||||
|
Advance payments by borrowers for taxes and insurance
|
1,011
|
632
|
1,117
|
703
|
||||||||||||
|
Federal Home Loan Bank advances
|
30,000
|
30,000
|
-
|
-
|
||||||||||||
|
Junior subordinated debentures
|
26,705
|
26,684
|
26,619
|
26,662
|
||||||||||||
|
Capital lease obligations
|
2,350
|
2,359
|
2,387
|
2,369
|
||||||||||||
|
Total liabilities
|
1,276,125
|
1,229,896
|
1,029,900
|
1,031,965
|
||||||||||||
|
SHAREHOLDERS' EQUITY:
|
||||||||||||||||
|
Serial preferred stock, $.01 par value; 250,000 authorized,
|
||||||||||||||||
|
issued and outstanding, none
|
-
|
-
|
-
|
-
|
||||||||||||
|
Common stock, $.01 par value; 50,000,000 authorized,
|
||||||||||||||||
|
September 30, 2020 - 22,336,235 issued and outstanding;
|
||||||||||||||||
|
June 30, 2020 – 22,245,472 issued and outstanding;
|
222
|
222
|
227
|
225
|
||||||||||||
|
September 30, 2019 - 22,748,385 issued and outstanding;
|
||||||||||||||||
|
March 31, 2020 – 22,748,385 issued and 22,544,285 outstanding;
|
||||||||||||||||
|
Additional paid-in capital
|
63,420
|
63,254
|
65,559
|
64,649
|
||||||||||||
|
Retained earnings
|
82,666
|
81,240
|
77,112
|
81,870
|
||||||||||||
|
Accumulated other comprehensive income
|
2,738
|
2,762
|
221
|
2,099
|
||||||||||||
|
Total shareholders’ equity
|
149,046
|
147,478
|
143,119
|
148,843
|
||||||||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,425,171
|
$
|
1,377,374
|
$
|
1,173,019
|
$
|
1,180,808
|
||||||||
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 10|
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
|
||||||||||||||||||||
|
Consolidated Statements of Income
|
||||||||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
|
(In thousands, except share data) (Unaudited)
|
Sept. 30, 2020
|
June 30, 2020
|
Sept. 30, 2019
|
Sept. 30, 2020
|
Sept. 30, 2019
|
|||||||||||||||
|
INTEREST INCOME:
|
||||||||||||||||||||
|
Interest and fees on loans receivable
|
$
|
11,346
|
$
|
11,528
|
$
|
11,893
|
$
|
22,874
|
$
|
23,447
|
||||||||||
|
Interest on investment securities - taxable
|
505
|
655
|
860
|
1,160
|
1,738
|
|||||||||||||||
|
Interest on investment securities - nontaxable
|
17
|
18
|
36
|
35
|
73
|
|||||||||||||||
|
Other interest and dividends
|
81
|
37
|
93
|
118
|
180
|
|||||||||||||||
|
Total interest and dividend income
|
11,949
|
12,238
|
12,882
|
24,187
|
25,438
|
|||||||||||||||
|
INTEREST EXPENSE:
|
||||||||||||||||||||
|
Interest on deposits
|
657
|
858
|
660
|
1,515
|
1,011
|
|||||||||||||||
|
Interest on borrowings
|
228
|
252
|
503
|
480
|
1,238
|
|||||||||||||||
|
Total interest expense
|
885
|
1,110
|
1,163
|
1,995
|
2,249
|
|||||||||||||||
|
Net interest income
|
11,064
|
11,128
|
11,719
|
22,192
|
23,189
|
|||||||||||||||
|
Provision for loan losses
|
1,800
|
4,500
|
-
|
6,300
|
-
|
|||||||||||||||
|
Net interest income after provision for loan losses
|
9,264
|
6,628
|
11,719
|
15,892
|
23,189
|
|||||||||||||||
|
NON-INTEREST INCOME:
|
||||||||||||||||||||
|
Fees and service charges
|
1,663
|
1,398
|
1,752
|
3,061
|
3,389
|
|||||||||||||||
|
Asset management fees
|
883
|
974
|
1,090
|
1,857
|
2,233
|
|||||||||||||||
|
Net gain on sale of loans held for sale
|
-
|
28
|
46
|
28
|
142
|
|||||||||||||||
|
Bank owned life insurance
|
242
|
190
|
204
|
432
|
397
|
|||||||||||||||
|
Other, net
|
31
|
33
|
77
|
64
|
144
|
|||||||||||||||
|
Total non-interest income, net
|
2,819
|
2,623
|
3,169
|
5,442
|
6,305
|
|||||||||||||||
|
NON-INTEREST EXPENSE:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
5,379
|
5,192
|
5,697
|
10,571
|
11,412
|
|||||||||||||||
|
Occupancy and depreciation
|
1,457
|
1,450
|
1,277
|
2,907
|
2,597
|
|||||||||||||||
|
Data processing
|
697
|
661
|
669
|
1,358
|
1,349
|
|||||||||||||||
|
Amortization of core deposit intangible
|
35
|
35
|
41
|
70
|
81
|
|||||||||||||||
|
Advertising and marketing
|
110
|
129
|
298
|
239
|
508
|
|||||||||||||||
|
FDIC insurance premium
|
84
|
48
|
-
|
132
|
80
|
|||||||||||||||
|
State and local taxes
|
204
|
204
|
174
|
408
|
369
|
|||||||||||||||
|
Telecommunications
|
85
|
86
|
76
|
171
|
162
|
|||||||||||||||
|
Professional fees
|
321
|
320
|
263
|
641
|
588
|
|||||||||||||||
|
Other
|
464
|
560
|
508
|
1,024
|
1,051
|
|||||||||||||||
|
Total non-interest expense
|
8,836
|
8,685
|
9,003
|
17,521
|
18,197
|
|||||||||||||||
|
INCOME BEFORE INCOME TAXES
|
3,247
|
566
|
5,885
|
3,813
|
11,297
|
|||||||||||||||
|
PROVISION FOR INCOME TAXES
|
704
|
86
|
1,351
|
790
|
2,571
|
|||||||||||||||
|
NET INCOME
|
$
|
2,543
|
$
|
480
|
$
|
4,534
|
$
|
3,023
|
$
|
8,726
|
||||||||||
|
Earnings per common share:
|
||||||||||||||||||||
|
Basic
|
$
|
0.11
|
$
|
0.02
|
$
|
0.20
|
$
|
0.14
|
$
|
0.39
|
||||||||||
|
Diluted
|
$
|
0.11
|
$
|
0.02
|
$
|
0.20
|
$
|
0.14
|
$
|
0.38
|
||||||||||
|
Weighted average number of common shares outstanding:
|
||||||||||||||||||||
|
Basic
|
22,261,709
|
22,178,427
|
22,643,103
|
22,259,201
|
22,631,406
|
|||||||||||||||
|
Diluted
|
22,276,312
|
22,198,065
|
22,702,696
|
22,276,308
|
22,694,067
|
|||||||||||||||
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 11|
(Dollars in thousands)
|
At or for the three months ended
|
At or for the six months ended
|
||||||||||||||||||
|
Sept. 30, 2020
|
June 30, 2020
|
Sept. 30, 2019
|
Sept. 30, 2020
|
Sept. 30, 2019
|
||||||||||||||||
|
AVERAGE BALANCES
|
||||||||||||||||||||
|
Average interest–earning assets
|
$
|
1,318,803
|
$
|
1,222,686
|
$
|
1,069,209
|
$
|
1,271,007
|
$
|
1,067,737
|
||||||||||
|
Average interest-bearing liabilities
|
854,303
|
808,715
|
708,846
|
831,634
|
718,856
|
|||||||||||||||
|
Net average earning assets
|
464,500
|
413,971
|
360,363
|
439,373
|
348,881
|
|||||||||||||||
|
Average loans
|
983,737
|
986,816
|
889,208
|
985,268
|
883,350
|
|||||||||||||||
|
Average deposits
|
1,190,551
|
1,105,540
|
952,283
|
1,148,277
|
936,507
|
|||||||||||||||
|
Average equity
|
150,401
|
150,707
|
142,195
|
150,553
|
139,409
|
|||||||||||||||
|
Average tangible equity (non-GAAP)
|
122,615
|
122,885
|
114,256
|
122,749
|
111,450
|
|||||||||||||||
|
ASSET QUALITY
|
Sept. 30, 2020
|
June 30, 2020
|
Sept. 30, 2019
|
|||||||||
|
Non-performing loans
|
$
|
1,275
|
$
|
1,288
|
$
|
1,485
|
||||||
|
Non-performing loans to total loans
|
0.13
|
%
|
0.13
|
%
|
0.17
|
%
|
||||||
|
Real estate/repossessed assets owned
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
|
Non-performing assets
|
$
|
1,275
|
$
|
1,288
|
$
|
1,485
|
||||||
|
Non-performing assets to total assets
|
0.09
|
%
|
0.09
|
%
|
0.13
|
%
|
||||||
|
Net loan charge-offs in the quarter
|
$
|
10
|
$
|
48
|
$
|
6
|
||||||
|
Net charge-offs in the quarter/average net loans
|
0.00
|
%
|
0.02
|
%
|
0.00
|
%
|
||||||
|
Allowance for loan losses
|
$
|
18,866
|
$
|
17,076
|
$
|
11,436
|
||||||
|
Average interest-earning assets to average
|
||||||||||||
|
interest-bearing liabilities
|
154.37
|
%
|
151.19
|
%
|
150.84
|
%
|
||||||
|
Allowance for loan losses to
|
||||||||||||
|
non-performing loans
|
1479.69
|
%
|
1325.78
|
%
|
770.10
|
%
|
||||||
|
Allowance for loan losses to total loans
|
1.93
|
%
|
1.70
|
%
|
1.30
|
%
|
||||||
|
Shareholders’ equity to assets
|
10.46
|
%
|
10.71
|
%
|
12.20
|
%
|
||||||
|
CAPITAL RATIOS
|
||||||||||||
|
Total capital (to risk weighted assets)
|
17.53
|
%
|
17.40
|
%
|
17.27
|
%
|
||||||
|
Tier 1 capital (to risk weighted assets)
|
16.26
|
%
|
16.14
|
%
|
16.02
|
%
|
||||||
|
Common equity tier 1 (to risk weighted assets)
|
16.26
|
%
|
16.14
|
%
|
16.02
|
%
|
||||||
|
Tier 1 capital (to average tangible assets)
|
9.82
|
%
|
10.55
|
%
|
11.79
|
%
|
||||||
|
Tangible common equity (to average tangible assets) (non-GAAP)
|
8.68
|
%
|
8.87
|
%
|
10.06
|
%
|
||||||
|
DEPOSIT MIX
|
Sept. 30, 2020
|
June 30, 2020
|
Sept. 30, 2019
|
March 31, 2020
|
||||||||||||
|
Interest checking
|
$
|
229,879
|
$
|
216,041
|
$
|
178,854
|
$
|
187,798
|
||||||||
|
Regular savings
|
251,547
|
247,966
|
196,340
|
226,880
|
||||||||||||
|
Money market deposit accounts
|
200,829
|
182,328
|
186,842
|
169,798
|
||||||||||||
|
Non-interest checking
|
386,408
|
376,372
|
299,062
|
271,031
|
||||||||||||
|
Certificates of deposit
|
131,309
|
136,042
|
121,177
|
134,941
|
||||||||||||
|
Total deposits
|
$
|
1,199,972
|
$
|
1,158,749
|
$
|
982,275
|
$
|
990,448
|
||||||||
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 12|
COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS
|
||||||||||||||||
|
Other
|
Commercial
|
|||||||||||||||
|
Commercial
|
Real Estate
|
Real Estate
|
& Construction
|
|||||||||||||
|
Business
|
Mortgage
|
Construction
|
Total
|
|||||||||||||
|
September 30, 2020
|
(Dollars in thousands)
|
|||||||||||||||
|
Commercial business
|
$
|
170,876
|
$
|
-
|
$
|
-
|
$
|
170,876
|
||||||||
|
SBA PPP
|
110,794
|
-
|
-
|
110,794
|
||||||||||||
|
Commercial construction
|
-
|
-
|
20,260
|
20,260
|
||||||||||||
|
Office buildings
|
-
|
129,865
|
-
|
129,865
|
||||||||||||
|
Warehouse/industrial
|
-
|
75,160
|
-
|
75,160
|
||||||||||||
|
Retail/shopping centers/strip malls
|
-
|
79,155
|
-
|
79,155
|
||||||||||||
|
Assisted living facilities
|
-
|
837
|
-
|
837
|
||||||||||||
|
Single purpose facilities
|
-
|
240,960
|
-
|
240,960
|
||||||||||||
|
Land
|
-
|
14,531
|
-
|
14,531
|
||||||||||||
|
Multi-family
|
-
|
49,878
|
-
|
49,878
|
||||||||||||
|
One-to-four family construction
|
-
|
-
|
8,048
|
8,048
|
||||||||||||
|
Total
|
$
|
281,670
|
$
|
590,386
|
$
|
28,308
|
$
|
900,364
|
||||||||
|
March 31, 2020
|
||||||||||||||||
|
Commercial business
|
$
|
179,029
|
$
|
-
|
$
|
-
|
$
|
179,029
|
||||||||
|
Commercial construction
|
-
|
-
|
52,608
|
52,608
|
||||||||||||
|
Office buildings
|
-
|
113,433
|
-
|
113,433
|
||||||||||||
|
Warehouse/industrial
|
-
|
91,764
|
-
|
91,764
|
||||||||||||
|
Retail/shopping centers/strip malls
|
-
|
76,802
|
-
|
76,802
|
||||||||||||
|
Assisted living facilities
|
-
|
1,033
|
-
|
1,033
|
||||||||||||
|
Single purpose facilities
|
-
|
224,839
|
-
|
224,839
|
||||||||||||
|
Land
|
-
|
14,026
|
-
|
14,026
|
||||||||||||
|
Multi-family
|
-
|
58,374
|
-
|
58,374
|
||||||||||||
|
One-to-four family construction
|
-
|
-
|
12,235
|
12,235
|
||||||||||||
|
Total
|
$
|
179,029
|
$
|
580,271
|
$
|
64,843
|
$
|
824,143
|
||||||||
|
LOAN MIX
|
Sept. 30, 2020
|
June 30, 2020
|
Sept. 30, 2019
|
March 31, 2020
|
||||||||||||
|
Commercial and construction
|
||||||||||||||||
|
Commercial business
|
$
|
281,670
|
$
|
281,832
|
$
|
167,782
|
$
|
179,029
|
||||||||
|
Other real estate mortgage
|
590,386
|
600,093
|
541,715
|
580,271
|
||||||||||||
|
Real estate construction
|
28,308
|
37,824
|
83,174
|
64,843
|
||||||||||||
|
Total commercial and construction
|
900,364
|
919,749
|
792,671
|
824,143
|
||||||||||||
|
Consumer
|
||||||||||||||||
|
Real estate one-to-four family
|
71,940
|
79,582
|
82,578
|
83,150
|
||||||||||||
|
Other installment
|
2,870
|
3,389
|
6,067
|
4,216
|
||||||||||||
|
Total consumer
|
74,810
|
82,971
|
88,645
|
87,366
|
||||||||||||
|
Total loans
|
975,174
|
1,002,720
|
881,316
|
911,509
|
||||||||||||
|
Less:
|
||||||||||||||||
|
Allowance for loan losses
|
18,866
|
17,076
|
11,436
|
12,624
|
||||||||||||
|
Loans receivable, net
|
$
|
956,308
|
$
|
985,644
|
$
|
869,880
|
$
|
898,885
|
||||||||
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 13|
DETAIL OF NON-PERFORMING ASSETS
|
||||||||||||||||
|
Other
|
Southwest
|
|||||||||||||||
|
Oregon
|
Washington
|
Other
|
Total
|
|||||||||||||
|
September 30, 2020
|
||||||||||||||||
|
Commercial business
|
$
|
-
|
$
|
191
|
$
|
-
|
$
|
191
|
||||||||
|
Commercial real estate
|
851
|
154
|
-
|
1,005
|
||||||||||||
|
Consumer
|
-
|
58
|
21
|
79
|
||||||||||||
|
Total non-performing assets
|
$
|
851
|
$
|
403
|
$
|
21
|
$
|
1,275
|
||||||||
|
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS
|
||||||||||||||||
|
Northwest
|
Other
|
Southwest
|
||||||||||||||
|
Oregon
|
Oregon
|
Washington
|
Total
|
|||||||||||||
|
September 30, 2020
|
(dollars in thousands)
|
|||||||||||||||
|
Land development
|
$
|
2,125
|
$
|
1,803
|
$
|
10,603
|
$
|
14,531
|
||||||||
|
Speculative construction
|
-
|
-
|
6,377
|
6,377
|
||||||||||||
|
Total land development
|
||||||||||||||||
|
and speculative construction
|
$
|
2,125
|
$
|
1,803
|
$
|
16,980
|
$
|
20,908
|
||||||||
|
DETAIL OF LOAN MODIFICATIONS
|
||||||||||||||||||||
|
Number of Loan Deferrals
|
||||||||||||||||||||
|
6/30/2020
|
Ended
|
New
|
9/30/2020
|
Change
|
||||||||||||||||
|
Hotel / Motel
|
25
|
(19
|
)
|
2
|
8
|
(68.0
|
)%
|
|||||||||||||
|
Retail strip centers
|
15
|
(12
|
)
|
-
|
3
|
(80.0
|
)%
|
|||||||||||||
|
Restaurants
|
10
|
(10
|
)
|
-
|
-
|
(100.0
|
)%
|
|||||||||||||
|
Gas Station / Auto Repair
|
12
|
(12
|
)
|
-
|
-
|
(100.0
|
)%
|
|||||||||||||
|
Other - Commercial
|
36
|
(34
|
)
|
-
|
2
|
(94.4
|
)%
|
|||||||||||||
|
Total Commercial
|
98
|
(87
|
)
|
2
|
13
|
(86.7
|
)%
|
|||||||||||||
|
Consumer
|
43
|
(36
|
)
|
-
|
4
|
(90.7
|
)%
|
|||||||||||||
|
Total
|
141
|
(123
|
)
|
2
|
17
|
(87.9
|
)%
|
|||||||||||||
|
Loan Deferrals
|
||||||||||||||||||||
|
6/30/2020
|
Ended
|
New
|
9/30/2020
|
Change
|
||||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||
|
Hotel / Motel
|
$
|
78,397
|
$
|
(45,417
|
)
|
$
|
2,079
|
$
|
35,059
|
(55.3
|
)%
|
|||||||||
|
Retail strip centers
|
21,544
|
(14,751
|
)
|
-
|
6,793
|
(68.5
|
)%
|
|||||||||||||
|
Restaurants
|
7,179
|
(7,179
|
)
|
-
|
-
|
(100.0
|
)%
|
|||||||||||||
|
Gas Station / Auto Repair
|
16,599
|
(16,599
|
)
|
-
|
-
|
(100.0
|
)%
|
|||||||||||||
|
Other - Commercial
|
37,881
|
(30,049
|
)
|
-
|
7,832
|
(79.3
|
)%
|
|||||||||||||
|
Total Commercial
|
161,600
|
(113,995
|
)
|
2,079
|
49,684
|
(69.3
|
)%
|
|||||||||||||
|
Consumer
|
10,100
|
(9,629
|
)
|
-
|
471
|
(95.3
|
)%
|
|||||||||||||
|
Total
|
$
|
171,700
|
$
|
(123,624
|
)
|
$
|
2,079
|
$
|
50,155
|
(70.8
|
)%
|
|||||||||
RVSB Reports Second Quarter Fiscal 2021 Results
October 29, 2020
Page 14| At or for the three months ended |
At or for the six months ended |
|||||||||||||||||||
|
SELECTED OPERATING DATA
|
Sept. 30, 2020
|
June 30, 2020
|
Sept. 30, 2019
|
Sept. 30, 2020
|
Sept. 30, 2019
|
|||||||||||||||
|
Efficiency ratio (4)
|
63.65
|
%
|
63.16
|
%
|
60.47
|
%
|
63.40
|
%
|
61.70
|
%
|
||||||||||
|
Coverage ratio (6)
|
125.22
|
%
|
128.13
|
%
|
130.17
|
%
|
126.66
|
%
|
127.43
|
%
|
||||||||||
|
Return on average assets (1)
|
0.71
|
%
|
0.15
|
%
|
1.55
|
%
|
0.44
|
%
|
1.51
|
%
|
||||||||||
|
Return on average equity (1)
|
6.71
|
%
|
1.28
|
%
|
12.68
|
%
|
4.00
|
%
|
12.52
|
%
|
||||||||||
|
Return on average tangible equity (1) (non-GAAP)
|
8.23
|
%
|
1.57
|
%
|
15.79
|
%
|
4.91
|
%
|
15.66
|
%
|
||||||||||
|
NET INTEREST SPREAD
|
||||||||||||||||||||
|
Yield on loans
|
4.58
|
%
|
4.69
|
%
|
5.32
|
%
|
4.63
|
%
|
5.31
|
%
|
||||||||||
|
Yield on investment securities
|
1.62
|
%
|
1.95
|
%
|
2.15
|
%
|
1.79
|
%
|
2.12
|
%
|
||||||||||
|
Total yield on interest-earning assets
|
3.60
|
%
|
4.02
|
%
|
4.80
|
%
|
3.80
|
%
|
4.77
|
%
|
||||||||||
|
Cost of interest-bearing deposits
|
0.33
|
%
|
0.45
|
%
|
0.40
|
%
|
0.39
|
%
|
0.31
|
%
|
||||||||||
|
Cost of FHLB advances and other borrowings
|
1.53
|
%
|
2.02
|
%
|
3.72
|
%
|
1.75
|
%
|
3.53
|
%
|
||||||||||
|
Total cost of interest-bearing liabilities
|
0.41
|
%
|
0.55
|
%
|
0.65
|
%
|
0.48
|
%
|
0.63
|
%
|
||||||||||
|
Spread (7)
|
3.19
|
%
|
3.47
|
%
|
4.15
|
%
|
3.32
|
%
|
4.14
|
%
|
||||||||||
|
Net interest margin
|
3.33
|
%
|
3.65
|
%
|
4.36
|
%
|
3.48
|
%
|
4.35
|
%
|
||||||||||
|
PER SHARE DATA
|
||||||||||||||||||||
|
Basic earnings per share (2)
|
$
|
0.11
|
$
|
0.02
|
$
|
0.20
|
$
|
0.14
|
$
|
0.39
|
||||||||||
|
Diluted earnings per share (3)
|
0.11
|
0.02
|
0.20
|
0.14
|
0.38
|
|||||||||||||||
|
Book value per share (5)
|
6.67
|
6.63
|
6.29
|
6.67
|
6.29
|
|||||||||||||||
|
Tangible book value per share (5) (non-GAAP)
|
5.43
|
5.38
|
5.06
|
5.43
|
5.06
|
|||||||||||||||
|
Market price per share:
|
||||||||||||||||||||
|
High for the period
|
$
|
5.31
|
$
|
6.12
|
$
|
8.55
|
$
|
6.12
|
$
|
8.55
|
||||||||||
|
Low for the period
|
3.82
|
4.20
|
6.87
|
3.82
|
6.87
|
|||||||||||||||
|
Close for period end
|
4.15
|
5.65
|
7.38
|
4.15
|
7.38
|
|||||||||||||||
|
Cash dividends declared per share
|
0.0500
|
0.0500
|
0.0450
|
0.1000
|
0.0900
|
|||||||||||||||
|
Average number of shares outstanding:
|
||||||||||||||||||||
|
Basic (2)
|
22,261,709
|
22,178,427
|
22,643,103
|
22,259,201
|
22,631,406
|
|||||||||||||||
|
Diluted (3)
|
22,276,312
|
22,198,065
|
22,702,696
|
22,276,308
|
22,694,067
|
|||||||||||||||
|
(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.
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(7)
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Yield on interest-earning assets less cost of funds on interest-bearing liabilities.
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