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Riverview Bancorp Earnings Increase to $1.1 Million; Highlighted by Improving Credit Quality and Loan Growth

VANCOUVER, Wash., Oct. 28, 2014 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB) ("Riverview" or the "Company") today reported that it earned $1.1 million, or $0.05 per diluted share, in the second fiscal quarter ended September 30, 2014, compared to $740,000, or $0.03 per diluted share, in the previous quarter and $341,000, or $0.02 per diluted share, in the second fiscal quarter a year ago.

"In the first half of fiscal 2015, we have generated solid results on virtually every metric with improving profitability, strengthening asset quality, growth in loans and deposits, and better operating efficiencies," stated Pat Sheaffer, Chairman and CEO. "As the regional economic recovery continues to build, we are seeing increasing demand for loans and financial services from business owners and retail customers throughout the greater Vancouver and Portland markets that we serve. We believe that our franchise is starting to generate forward momentum and we are encouraged by the outlook for our business in the next few years."

Second Quarter Highlights (at or for the period ended September 30, 2014)

  • Second quarter net income was $1.1 million, or $0.05 per diluted share.
  • Net loans increased to $540.8 million, compared to $509.4 million a year ago (6.2% increase).
  • Non-interest bearing checking account balances increased to $145.1 million, compared to $118.1 million a year ago (22.9% increase).
  • Classified assets decreased $8.5 million during the quarter to $25.2 million (25.1% decline).
  • Nonperforming assets decreased $3.5 million during the quarter to $15.4 million (18.6% decline).
  • Total risk-based capital ratio was 16.78% and Tier 1 leverage ratio was 10.97%.

Balance Sheet Review

"Our loan pipeline remained strong as demand for loans continues to accelerate," said Ron Wysaske, President and COO. "While competition remains high, our experienced lending teams continue to have success acquiring new relationships and we expect to see a continued upward trend in loan growth during fiscal year 2015."

Net loans were $540.8 million at September 30, 2014, compared to $534.7 million the previous quarter and $509.4 million a year ago. Loan originations totaled $55.7 million during the quarter and there were $38.1 million in the loan pipeline at September 30, 2014. Despite the increase in loan originations during the quarter, net loan growth was impacted by $18.2 million in early payoffs, a $6.9 million reduction in classified assets as well as several new construction loans that have not yet advanced. At September 30, 2014, there were $26.3 million in undisbursed construction loans that are expected to fund over several quarters.

Total deposits increased $16.0 million during the quarter to $702.6 million, compared to $686.6 million at June 30, 2014. Non-interest bearing checking account balances increased to $145.1 million at September 30, 2014, compared to $134.5 million in the preceding quarter. Checking accounts represented 35.9% of total deposits (interest checking accounts represent 15.3% and non-interest checking accounts represent 20.6%).

Shareholders' equity improved to $100.3 million at September 30, 2014, compared to $99.4 million three months earlier. Tangible book value per share improved to $3.31 per share at September 30, 2014, compared to $3.27 per share at June 30, 2014.

Credit Quality

"Credit quality continues to improve with both nonperforming loans and repossessed assets declining dramatically during the quarter," said Dan Cox, Executive Vice President and Chief Credit Officer. "We are continuing to work with our customers to resolve problem credits and to move these assets back into earning assets."

Classified assets were reduced by $8.5 million during the quarter to $25.2 million at September 30, 2014, compared to $33.7 million at June 30, 2014. The classified asset ratio decreased to 25.2% at September 30, 2014, compared to 34.4% three months earlier. During the past twelve months, Riverview has shrunk classified assets a total of $33.4 million.

Sales of real estate owned ("REO") remained strong with total sales of $2.8 million during the quarter reducing REO balances to $3.7 million at September 30, 2014. Riverview has an additional $1.4 million in properties currently under purchase contracts, which have already closed or are expected to close during the third fiscal quarter of 2015 with minimal to no projected losses on these sales.

The recapture of loan loss provision reflects the continued improvement in credit quality and the increase in loan recoveries. Riverview recorded a $350,000 recapture of loan losses during the second quarter of fiscal 2015 compared to a $300,000 recapture of loan losses during the preceding quarter. In the first six months of fiscal 2015 Riverview recorded a $650,000 recapture for loan losses compared to a $2.5 million recapture in the first six months of fiscal 2014.

Net loan recoveries totaled $70,000 during the quarter compared to net loan recoveries of $30,000 in the preceding quarter. During the past twelve months, Riverview had net recoveries totaling $155,000. The allowance for loan losses at September 30, 2014 totaled $12.0 million, representing 2.17% of total loans and 102.21% of nonperforming loans.

Income Statement

Riverview's fiscal second quarter net interest income increased to $6.7 million, compared to $6.4 million in the preceding quarter and $6.1 million in the fiscal second quarter a year ago. In the first six months of the fiscal year, net interest income was $13.1 million compared to $12.3 million a year ago. The increase in net interest income was driven primarily by higher average balances in both our loan and investment portfolios.

"Our net interest margin improved 15 basis points compared to the preceding quarter and 24 basis points compared to the year ago quarter," said Kevin Lycklama, Executive Vice President and Chief Financial Officer. "Part of this increase was due to the collection of interest from a prior nonaccrual loan of $121,000, which contributed approximately six basis points to our second quarter margin. The remaining increase was due to deployment of our cash balances into higher yielding loans and investments."

Riverview's net interest margin was 3.61% in the fiscal second quarter compared to 3.46% for the preceding quarter and 3.37% in the fiscal second quarter a year ago. In the first six months of the fiscal year, Riverview's net interest margin improved 10 basis points to 3.54% compared to 3.44% in the first six months of fiscal 2014.

Non-interest income was $2.2 million in the second quarter, which was unchanged compared to the preceding quarter and increased compared $1.9 million in the second quarter a year ago. In the first six months of fiscal 2015, non-interest income increased to $4.4 million, compared to $4.1 million in the first six months of fiscal 2014. Riverview Asset Management Corporation's ("RAMCO") asset management fees were $710,000 during the quarter compared to $820,000 in the preceding quarter and $595,000 in the second quarter a year ago. RAMCO's assets under management totaled $363.7 million at September 30, 2014.

Non-interest expense was $7.7 million in the second quarter, which was unchanged compared to both the preceding quarter and the year ago quarter. In the first six months of the fiscal year, Riverview's non-interest expense decreased $1.5 million compared to the same period a year ago. The primary driver for the decrease from prior year was a reduction in REO expenses, which decreased $430,000 compared to the preceding quarter and $306,000 a year ago, due to fewer REO write-downs and reduction in the number of REO properties. Furthermore, during the quarter-ended September 30, 2014 Riverview also had a one-time occupancy expense for $111,000 related to the closure of its in-store Walmart branch located in Wood Village, Oregon. The Company expects minimal impact to its customers and deposit totals from this closure due to this branch's close proximity to the new Gresham office opened in the summer of 2012.

Capital and Liquidity

Riverview continues to maintain capital levels in excess of the regulatory requirements to be categorized as "well capitalized" with a total risk-based capital ratio of 16.78%, Tier 1 leverage ratio of 10.97% and tangible common equity to tangible assets of 9.11% at September 30, 2014.

Riverview had available total and contingent liquidity of nearly $500 million, representing 59% of total assets as of September 30, 2014. Included in the Bank's total liquidity was more than $190 million of cash and short-term investments.

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. Riverview believes that certain non-GAAP financial measures provide investors with information useful in understanding the company's financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Riverview provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible common equity is calculated as shareholders' equity less goodwill and other intangible assets. In addition, tangible assets are total assets less goodwill and other intangible assets.

The following table provides a reconciliation of ending shareholders' equity (GAAP) to ending tangible shareholders' equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).

(Dollars in thousands) September 30, 2014 June 30, 2014 September 30, 2013 March 31, 2014
Shareholders' equity $ 100,311 $ 99,366 $ 80,968 $ 97,978
Goodwill 25,572 25,572 25,572 25,572
Other intangible assets, net 400 393 427 395
Tangible shareholders' equity $ 74,339 $ 73,401 $ 54,969 $ 72,011
Total assets $ 841,540 $ 824,642 $ 788,878 $ 824,521
Goodwill 25,572 25,572 25,572 25,572
Other intangible assets, net 400 393 427 395
Tangible assets $ 815,568 $ 798,677 $ 762,879 $ 798,554

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 $842 million, it is the parent company of the 91 year-old Riverview Community Bank, as well as Riverview Asset Management Corp. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers. There are 17 branches, including twelve in the Portland-Vancouver area and three lending centers.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to: the Company's ability to raise common capital; the 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 goodwill charges related thereto; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company's ability to pay dividends on its common stock; 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.

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 2015 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's operating and stock price performance.

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
(In thousands, except share data) (Unaudited) September 30, 2014 June 30, 2014 September 30, 2013 March 31, 2014
ASSETS
Cash (including interest-earning accounts of $17,417, $23,815, $99,955 and $51,715) $ 30,988 $ 41,556 $ 114,337 $ 68,577
Certificate of deposits 32,941 34,435 37,920 36,925
Loans held for sale 353 795 1,571 1,024
Investment securities available for sale, at fair value 19,571 21,549 21,899 23,394
Mortgage-backed securities held to maturity, at amortized 90 98 108 101
Mortgage-backed securities available for sale, at fair value 120,740 98,413 17,706 78,575
Loans receivable (net of allowance for loan losses of $12,001, $12,281, $13,696, and $12,551) 540,786 534,712 509,447 520,937
Real estate and other pers. property owned 3,705 5,926 13,481 7,703
Prepaid expenses and other assets 3,243 3,858 3,141 3,197
Accrued interest receivable 2,047 1,964 1,659 1,836
Federal Home Loan Bank stock, at cost 6,324 6,533 7,023 6,744
Premises and equipment, net 15,955 16,260 16,895 16,417
Deferred income taxes, net 14,301 14,748 271 15,433
Mortgage servicing rights, net 386 373 388 369
Goodwill 25,572 25,572 25,572 25,572
Core deposit intangible, net 14 20 39 26
Bank owned life insurance 24,524 17,830 17,421 17,691
TOTAL ASSETS $ 841,540 $ 824,642 $ 788,878 $ 824,521
LIABILITIES AND EQUITY
LIABILITIES:
Deposit accounts $ 702,635 $ 686,641 $ 672,806 $ 690,066
Accrued expenses and other liabilities 12,445 12,759 8,887 10,497
Advance payments by borrowers for taxes and insurance 644 365 486 467
Junior subordinated debentures 22,681 22,681 22,681 22,681
Capital lease obligation 2,319 2,340 2,401 2,361
Total liabilities 740,724 724,786 707,261 726,072
EQUITY:
Shareholders' equity
Serial preferred stock, $.01 par value; 250,000 authorized, issued and outstanding, none -- -- -- --
Common stock, $.01 par value; 50,000,000 authorized,
September 30, 2014 - 22,471,890 issued and outstanding;
June 30, 2014 – 22,471,890 issued and outstanding; 225 225 225 225
September 30, 2013 - 22,471,890 issued and outstanding;
March 31, 2014 – 22,471,890 issued and outstanding;
Additional paid-in capital 65,217 65,218 65,557 65,195
Retained earnings 35,416 34,332 16,150 33,592
Unearned shares issued to employee stock ownership trust (335) (361) (438) (387)
Accumulated other comprehensive loss (212) (48) (526) (647)
Total shareholders' equity 100,311 99,366 80,968 97,978
Noncontrolling interest 505 490 649 471
Total equity 100,816 99,856 81,617 98,449
TOTAL LIABILITIES AND EQUITY $ 841,540 $ 824,642 $ 788,878 $ 824,521
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three Months Ended Six Months Ended
(In thousands, except share data) (Unaudited) Sept. 30, 2014 June 30, 2014 Sept. 30, 2013 Sept. 30, 2014 Sept. 30, 2013
INTEREST INCOME:
Interest and fees on loans receivable $ 6,486 $ 6,171 $ 6,465 $ 12,657 $ 13,070
Interest on investment securities-taxable 98 84 77 182 116
Interest on mortgage-backed securities 508 480 52 988 68
Other interest and dividends 118 131 170 249 341
Total interest income 7,210 6,866 6,764 14,076 13,595
INTEREST EXPENSE:
Interest on deposits 342 360 514 702 1,041
Interest on borrowings 148 147 150 295 300
Total interest expense 490 507 664 997 1,341
Net interest income 6,720 6,359 6,100 13,079 12,254
Less recapture of loan losses (350) (300) -- (650) (2,500)
Net interest income after recapture of loan losses 7,070 6,659 6,100 13,729 14,754
NON-INTEREST INCOME:
Fees and service charges 1,158 1,070 1,094 2,228 2,124
Asset management fees 710 820 595 1,530 1,331
Gain on sale of loans held for sale 155 126 116 281 433
Bank owned life insurance income 194 138 141 332 283
Other 6 56 (59) 62 (38)
Total non-interest income 2,223 2,210 1,887 4,433 4,133
NON-INTEREST EXPENSE:
Salaries and employee benefits 4,341 4,174 3,867 8,515 7,737
Occupancy and depreciation 1,322 1,087 1,190 2,409 2,434
Data processing 434 470 430 904 1,118
Amortization of core deposit intangible 6 6 9 12 26
Advertising and marketing expense 203 150 204 353 408
FDIC insurance premium 180 175 417 355 828
State and local taxes 117 137 108 254 234
Telecommunications 74 76 81 150 149
Professional fees 257 289 315 546 653
Real estate owned expenses 186 616 492 802 2,104
Other 554 555 534 1,109 1,199
Total non-interest expense 7,674 7,735 7,647 15,409 16,890
INCOME BEFORE INCOME TAXES 1,619 1,134 340 2,753 1,997
PROVISION (BENEFIT) FOR INCOME TAXES 535 394 (1) 929 16
NET INCOME $ 1,084 $ 740 $ 341 $ 1,824 $ 1,981
Earnings per common share:
Basic $ 0.05 $ 0.03 $ 0.02 $ 0.08 $ 0.09
Diluted $ 0.05 $ 0.03 $ 0.02 $ 0.08 $ 0.09
Weighted average number of shares outstanding:
Basic 22,388,753 22,382,595 22,364,120 22,385,691 22,361,058
Diluted 22,419,469 22,408,775 22,365,460 22,414,212 22,361,941
(Dollars in thousands) At or for the three months ended At or for the six months ended
Sept. 30, 2014 June 30, 2014 Sept. 30, 2013 Sept. 30, 2014 Sept. 30, 2013
AVERAGE BALANCES
Average interest–earning assets $ 737,759 $ 737,717 $ 718,118 $ 737,736 $ 710,559
Average interest-bearing liabilities 577,658 578,959 574,990 578,305 571,631
Net average earning assets 160,101 158,758 143,128 159,431 138,928
Average loans 551,543 538,096 525,490 544,856 528,443
Average deposits 693,998 682,113 670,820 688,088 664,015
Average equity 101,026 99,695 81,906 100,364 80,957
Average tangible equity 75,055 73,730 55,884 74,396 54,935
ASSET QUALITY Sept. 30, 2014 June 30, 2014 Sept. 30, 2013
Non-performing loans 11,742 13,052 16,175
Non-performing loans to total loans 2.12% 2.39% 3.09%
Real estate/repossessed assets owned 3,705 5,926 13,481
Non-performing assets 15,447 18,978 29,656
Non-performing assets to total assets 1.84% 2.30% 3.76%
Net loan charge-offs in the quarter (70) (30) 1
Net charge-offs in the quarter/average net loans (0.05)% (0.02)% 0.00%
Allowance for loan losses 12,001 12,281 13,696
Average interest-earning assets to average interest-bearing liabilities 127.72% 127.42% 124.89%
Allowance for loan losses to non-performing loans 102.21% 94.09% 84.67%
Allowance for loan losses to total loans 2.17% 2.25% 2.62%
Shareholders' equity to assets 11.92% 12.05% 10.26%
CAPITAL RATIOS
Total capital (to risk weighted assets) 16.78% 16.58% 16.03%
Tier 1 capital (to risk weighted assets) 15.52% 15.31% 14.76%
Tier 1 capital (to leverage assets) 10.97% 10.93% 10.20%
Tangible common equity (to tangible assets) 9.11% 9.19% 7.21%
DEPOSIT MIX Sept. 30, 2014 June 30, 2014 Sept. 30, 2013 March 31, 2014
Interest checking $ 107,288 $ 101,490 $ 93,117 $ 104,543
Regular savings 71,667 67,344 60,862 66,702
Money market deposit accounts 229,520 228,317 225,921 227,933
Non-interest checking 145,114 134,546 118,101 128,635
Certificates of deposit 149,046 154,944 174,805 162,253
Total deposits $ 702,635 $ 686,641 $ 672,806 $ 690,066
COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS
Commercial Commercial
Real Estate Real Estate & Construction
Commercial Mortgage Construction Total
September 30, 2014 (Dollars in thousands)
Commercial $ 80,930 $ -- $ -- $ 80,930
Commercial construction -- -- 16,030 16,030
Office buildings -- 76,955 -- 76,955
Warehouse/industrial -- 45,340 -- 45,340
Retail/shopping centers/strip malls -- 60,581 -- 60,581
Assisted living facilities -- 3,951 -- 3,951
Single purpose facilities -- 95,870 -- 95,870
Land -- 14,724 -- 14,724
Multi-family -- 31,635 -- 31,635
One-to-four family -- -- 2,813 2,813
Total $ 80,930 $ 329,056 $ 18,843 $ 428,829
March 31, 2014 (Dollars in thousands)
Commercial $ 71,632 $ -- $ -- $ 71,632
Commercial construction -- -- 15,618 15,618
Office buildings -- 77,476 -- 77,476
Warehouse/industrial -- 45,632 -- 45,632
Retail/shopping centers/strip malls -- 63,049 -- 63,049
Assisted living facilities -- 7,585 -- 7,585
Single purpose facilities -- 93,766 -- 93,766
Land -- 16,245 -- 16,245
Multi-family -- 21,128 -- 21,128
One-to-four family -- -- 3,864 3,864
Total $ 71,632 $ 324,881 $ 19,482 $ 415,995
LOAN MIX Sept. 30, 2014 June 30, 2014 Sept. 30, 2013 March 31, 2014
Commercial and construction
Commercial $ 80,930 $ 75,702 $ 70,510 $ 71,632
Other real estate mortgage 329,056 327,287 348,257 324,881
Real estate construction 18,843 18,347 11,850 19,482
Total commercial and construction 428,829 421,336 430,617 415,995
Consumer
Real estate one-to-four family 94,536 93,550 90,550 93,007
Other installment 29,422 32,107 1,976 24,486
Total consumer 123,958 125,657 92,526 117,493
Total loans 552,787 546,993 523,143 533,488
Less:
Allowance for loan losses 12,001 12,281 13,696 12,551
Loans receivable, net $ 540,786 $ 534,712 $ 509,447 $ 520,937
DETAIL OF NON-PERFORMING ASSETS
Northwest Other Southwest Other
Oregon Oregon Washington Washington Other Total
September 30, 2014 (dollars in thousands)
Non-performing assets
Commercial $ -- $ -- $ 112 $ -- $ -- $ 112
Commercial real estate 2,096 -- 4,964 -- -- 7,060
Multi-family 1,950 -- 357 -- -- 2,307
Land -- 800 -- -- -- 800
Consumer 334 -- 830 270 29 1,463
Total non-performing loans 4,380 800 6,263 270 29 11,742
REO 374 28 2,629 674 -- 3,705
Total non-performing assets $ 4,754 $ 828 $ 8,892 $ 944 $ 29 $ 15,447
DETAIL OF SPEC CONSTRUCTION AND LAND DEVELOPMENT LOANS
Northwest Other Southwest Other
Oregon Oregon Washington Washington Other Total
September 30, 2014 (dollars in thousands)
Land and Spec Construction Loans
Land Development Loans $ 1,929 $ 1,167 $ 11,628 $ -- $ -- $ 14,724
Spec Construction Loans -- -- 2,131 202 -- 2,333
Total Land and Spec Construction $ 1,929 $ 1,167 $ 13,759 $ 202 $ -- $ 17,057
At or for the three months ended At or for the six months ended
SELECTED OPERATING DATA Sept. 30, 2014 June 30, 2014 Sept. 30, 2013 Sept. 30, 2014 Sept. 30, 2013
Efficiency ratio (4) 85.81% 90.27% 95.74% 87.99% 103.07%
Coverage ratio (6) 87.57% 82.21% 79.77% 84.88% 72.55%
Return on average assets (1) 0.52% 0.36% 0.17% 0.44% 0.51%
Return on average equity (1) 4.26% 2.98% 1.65% 3.62% 4.88%
NET INTEREST SPREAD
Yield on loans 4.67% 4.60% 4.88% 4.63% 4.93%
Yield on investment securities 1.97% 1.94% 1.57% 1.96% 1.53%
Total yield on interest earning assets 3.88% 3.73% 3.74% 3.81% 3.82%
Cost of interest bearing deposits 0.25% 0.26% 0.37% 0.25% 0.38%
Cost of FHLB advances and other borrowings 2.34% 2.36% 2.37% 2.35% 2.38%
Total cost of interest bearing liabilities 0.34% 0.35% 0.46% 0.34% 0.47%
Spread (7) 3.54% 3.38% 3.28% 3.47% 3.35%
Net interest margin 3.61% 3.46% 3.37% 3.54% 3.44%
PER SHARE DATA
Basic earnings per share (2) $ 0.05 $ 0.03 $ 0.02 $ 0.08 $ 0.09
Diluted earnings per share (3) $ 0.05 $ 0.03 $ 0.02 $ 0.08 $ 0.09
Book value per share (5) 4.46 4.42 3.60 4.46 3.60
Tangible book value per share (5) 3.31 3.27 2.45 3.31 2.45
Market price per share:
High for the period $ 3.99 $ 4.03 $ 2.96 $ 4.03 $ 2.96
Low for the period 3.67 3.38 2.42 3.38 2.27
Close for period end 3.99 3.88 2.63 3.99 2.63
Cash dividends declared per share -- -- -- -- --
Average number of shares outstanding:
Basic (2) 22,388,753 22,382,595 22,364,120 22,385,691 22,361,058
Diluted (3) 22,419,469 22,408,775 22,365,460 22,414,212 22,361,941
(1) Amounts for the quarterly periods are annualized.
(2) Amounts exclude ESOP shares not committed to be released.
(3) Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
(4) Non-interest expense divided by net interest income and non-interest income.
(5) Amounts calculated based on shareholders' equity and include ESOP shares not committed to be released.
(6) Net interest income divided by non-interest expense.
(7) Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

CONTACT: Pat Sheaffer or Ron Wysaske, Riverview Bancorp, Inc. 360-693-6650Source:Riverview Bancorp, Inc.