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Riverview Bancorp Third Fiscal Quarter Earnings of $1.1 Million; Credit Quality Continues to Improve

VANCOUVER, Wash., Jan. 29, 2015 (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 third fiscal quarter ended December 31, 2014, compared to $1.1 million, or $0.05 per diluted share, in the preceding quarter and $801,000, or $0.04 per diluted share, in its third fiscal quarter a year ago.

"Riverview is a dynamic and sustainable franchise, which is capitalizing on the expanding opportunities in the greater Vancouver and Portland market," stated Pat Sheaffer, chairman and chief executive officer. "We have experienced significant forward momentum in our continued profitability as a result of the growth in our loan and deposit portfolios, the improvement in asset quality and enhanced operating efficiencies."

Third Quarter Highlights (at or for the period ended December 31, 2014)

  • Third quarter net income was $1.1 million, or $0.05 per diluted share.
  • Net loans increased to $567.4 million compared to $505.6 million a year ago (12.2% increase).
  • Classified assets decreased $2.3 million during the quarter to $22.9 million (9.3% decline).
  • Nonperforming assets decreased $6.1 million during the quarter to $9.3 million (39.6% decline).
  • Real estate owned balances decreased to $1.6 million.
  • Riverview Asset Management Corporation's assets under management increased $12.9 million during the quarter to $376.7 million.
  • Total risk-based capital ratio was 15.59% and Tier 1 leverage ratio was 10.72%.

Balance Sheet Review

Net loans increased $26.6 million during the quarter to $567.4 million at December 31, 2014, compared to $540.8 million the previous quarter and $505.6 million a year ago. This represented the fourth consecutive quarter of net loan growth and the largest quarterly growth during the last several years.

"Strong, smart growth in our loan portfolio is a key driver to our profitability," said Ron Wysaske, president and chief operating officer. "Our market contains one of the fastest recovering economies in the country and our lending teams are taking advantage of those opportunities. As a result we saw growth in nearly every loan category while strengthening our overall asset quality."

Loan originations totaled $36.3 million during the quarter and there was $51.8 million in the loan pipeline at December 31, 2014. At quarter end, there were $17.0 million in undisbursed construction loans and we anticipate the bulk will fund over the next several quarters.

Riverview's total deposits were $689.3 million at December 31, 2014, compared to $702.6 million at September 30, 2014 and $689.3 million a year ago. The decrease in deposit totals is due to a combination of seasonal factors as well as a decline in certificate of deposit balances. Average deposit balances were $693.7 million for the quarter-ended December 31, 2014 which was comparable to the prior quarter and a $13.5 million increase compared to a year ago. The Company continues to focus on attracting core deposits and building long-term customer relationships. Checking accounts represented 36.5% of total deposits (interest checking accounts represent 15.6% and non-interest checking accounts represent 20.9%) at December 31, 2014.

Shareholders' equity improved to $101.9 million at December 31, 2014 compared to $100.3 million three months earlier and $81.3 million a year earlier. Tangible book value per share improved to $3.38 per share at December 31, 2014, compared to $3.31 per share at September 30, 2014 and $2.46 per share a year ago.

Credit Quality

Classified assets were reduced by $2.3 million during the quarter to $22.9 million at December 31, 2014, compared to $25.2 million at September 30, 2014. The classified asset ratio decreased to 23.8% at December 31, 2014, compared to 25.2% three months earlier. During the past twelve months, Riverview has reduced its classified assets by $31.8 million.

"The continuing improvement in credit quality is a result of the hard work of our loan officers and credit department along with the overall strengthening in our local economy," said Dan Cox, executive vice president and chief credit officer. "In addition, the improvement in asset quality has helped to increase the Company's overall profitability as nonperforming assets are returned to earning status.

With no new additions to the real estate owned ("REO") portfolio during the December quarter, REO balances totaled $1.6 million which was the lowest level in over six years. Sales of REO properties remained strong with total sales of $2.0 million during the quarter and write-down totaling $75,000.

Riverview recorded a $400,000 recapture of loan losses during the third quarter of fiscal 2015 compared to a $350,000 recapture of loan losses during the preceding quarter. The recapture of loan loss provision reflects the continued improvement in credit quality as well as the positive impact from continued loan recoveries.

Net loan recoveries totaled $100,000 during the quarter compared to net loan recoveries of $70,000 in the preceding quarter. The allowance for loan losses at December 31, 2014 totaled $11.7 million, representing 2.02% of total loans and 151.39% of nonperforming loans.

Income Statement

Riverview's fiscal third quarter net interest income was $6.7 million, which was an increase compared to $6.0 million in the fiscal third quarter a year ago and was unchanged compared to the preceding quarter. In the first nine months of the fiscal year, net interest income increased to $19.8 million compared to $18.3 million in the same period 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 contracted three basis points during the quarter primarily due to the collection of $121,000 of interest on a prior nonaccrual loan during the preceding quarter, which contributed approximately six basis points to our second quarter margin," said Kevin Lycklama, executive vice president and chief financial officer. "Compared to a year ago, the quarterly net interest margin has improved 29 basis points as a result of the growth in the loan portfolio as well as actions taken by management to allocate the Company's cash balances into higher yielding loan and investment products."

Net interest margin was 3.58% in the fiscal third quarter compared to 3.61% for the preceding quarter and 3.29% in the fiscal third quarter a year ago. In the first nine months of the fiscal year, Riverview's net interest margin improved 16 basis points to 3.55% compared to 3.39% in the first nine months of fiscal 2014.

Non-interest income was $2.3 million in the third quarter compared to $2.2 million in the preceding quarter and $2.4 million in the third quarter a year ago. Riverview Asset Management Corporation's ("RAMCO") asset management fees were $718,000 during the quarter compared to $710,000 in the preceding quarter and $605,000 in the third quarter a year ago. RAMCO's assets under management totaled $376.7 million at December 31, 2014. The Company also recognized a $158,000 gain on the sale of investment securities during the quarter.

Riverview's non-interest expense was $7.6 million in the third quarter, which was unchanged compared to the third quarter a year ago and a modest decrease compared to $7.7 million in the preceding quarter. The decrease was partially driven by a reduction in REO expenses, which decreased $87,000 compared to the preceding quarter and $199,000 compared to a year ago. Fewer REO write-downs and a reduction in the overall number of REO properties contributed to the decline in REO expenses.

Capital

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 15.59%, Tier 1 leverage ratio of 10.72% and tangible common equity to tangible assets of 9.46% at December 31, 2014.

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) December 31, 2014 September 30, 2014 December 31, 2013 March 31, 2014
Shareholders' equity $ 101,912 $ 100,311 $ 81,264 $ 97,978
Goodwill 25,572 25,572 25,572 25,572
Other intangible assets, net 401 400 419 395
Tangible shareholders' equity $ 75,939 $ 74,339 $ 55,273 $ 72,011
Total assets $ 828,435 $ 841,540 $ 804,949 $ 824,521
Goodwill 25,572 25,572 25,572 25,572
Other intangible assets, net 401 400 419 395
Tangible assets $ 802,462 $ 815,568 $ 778,958 $ 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 $828 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) December 31, 2014 September 30, 2014 December 31, 2013 March 31, 2014
ASSETS
Cash (including interest-earning accounts of $5,872, $17,417, $110,104 and $51,715) $ 21,981 $ 30,988 $ 123,140 $ 68,577
Certificate of deposits 27,214 32,941 37,174 36,925
Loans held for sale 724 353 148 1,024
Investment securities available for sale, at fair value 17,150 19,571 19,794 23,394
Mortgage-backed securities held to maturity, at amortized 88 90 104 101
Mortgage-backed securities available for sale, at fair value 101,216 120,740 34,529 78,575
Loans receivable (net of allowance for loan losses of $11,701, $12,001 $14,048, and $12,551) 567,398 540,786 505,632 520,937
Real estate and other pers. property owned 1,604 3,705 11,951 7,703
Prepaid expenses and other assets 3,041 3,243 3,268 3,197
Accrued interest receivable 2,024 2,047 1,670 1,836
Federal Home Loan Bank stock, at cost 6,120 6,324 6,958 6,744
Premises and equipment, net 15,683 15,955 16,685 16,417
Deferred income taxes, net 13,500 14,301 348 15,433
Mortgage servicing rights, net 393 386 386 369
Goodwill 25,572 25,572 25,572 25,572
Core deposit intangible, net 8 14 33 26
Bank owned life insurance 24,719 24,524 17,557 17,691
TOTAL ASSETS $ 828,435 $ 841,540 $ 804,949 $ 824,521
LIABILITIES AND EQUITY
LIABILITIES:
Deposit accounts $ 689,330 $ 702,635 $ 689,271 $ 690,066
Accrued expenses and other liabilities 9,397 12,445 8,707 10,497
Advance payments by borrowers for taxes and insurance 199 644 193 467
Federal Home Loan Bank advances 2,100 -- -- --
Junior subordinated debentures 22,681 22,681 22,681 22,681
Capital lease obligation 2,298 2,319 2,381 2,361
Total liabilities 726,005 740,724 723,233 726,072
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,
December 31, 2014 - 22,471,890 issued and outstanding;
September 30, 2014 - 22,471,890 issued and outstanding; 225 225 225 225
December 31, 2013 - 22,471,890 issued and outstanding;
March 31, 2014 – 22,471,890 issued and outstanding;
Additional paid-in capital 65,217 65,217 65,176 65,195
Retained earnings 36,565 35,416 16,951 33,592
Unearned shares issued to employee stock ownership trust (310) (335) (413) (387)
Accumulated other comprehensive loss 215 (212) (675) (647)
Total shareholders' equity 101,912 100,311 81,264 97,978
Noncontrolling interest 518 505 452 471
Total equity 102,430 100,816 81,716 98,449
TOTAL LIABILITIES AND EQUITY $ 828,435 $ 841,540 $ 804,949 $ 824,521
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three Months Ended Nine Months Ended
(In thousands, except share data) (Unaudited) Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2013
INTEREST INCOME:
Interest and fees on loans receivable $ 6,498 $ 6,486 $ 6,319 $ 19,155 $ 19,389
Interest on investment securities-taxable 75 98 75 257 191
Interest on mortgage-backed securities 520 508 88 1,508 156
Other interest and dividends 110 118 191 359 532
Total interest income 7,203 7,210 6,673 21,279 20,268
INTEREST EXPENSE:
Interest on deposits 322 342 496 1,024 1,537
Interest on borrowings 163 148 149 458 449
Total interest expense 485 490 645 1,482 1,986
Net interest income 6,718 6,720 6,028 19,797 18,282
Recapture of loan losses (400) (350) -- (1,050) (2,500)
Net interest income after recapture of loan losses 7,118 7,070 6,028 20,847 20,782
NON-INTEREST INCOME:
Fees and service charges 1,032 1,158 1,177 3,260 3,301
Asset management fees 718 710 605 2,248 1,936
Gain on sale of loans held for sale 154 155 176 435 609
Bank owned life insurance income 196 194 136 528 419
Other 164 6 290 226 252
Total non-interest income 2,264 2,223 2,384 6,697 6,517
NON-INTEREST EXPENSE:
Salaries and employee benefits 4,472 4,341 3,959 12,987 11,696
Occupancy and depreciation 1,223 1,322 1,187 3,632 3,621
Data processing 495 434 523 1,399 1,641
Amortization of core deposit intangible 6 6 7 18 33
Advertising and marketing expense 169 203 170 522 578
FDIC insurance premium 143 180 400 498 1,228
State and local taxes 162 117 106 416 340
Telecommunications 73 74 78 223 227
Professional fees 302 257 342 848 995
Real estate owned expenses 99 186 298 901 2,402
Other 502 554 541 1,611 1,740
Total non-interest expense 7,646 7,674 7,611 23,055 24,501
INCOME BEFORE INCOME TAXES 1,736 1,619 801 4,489 2,798
PROVISION FOR INCOME TAXES 587 535 -- 1,516 16
NET INCOME $ 1,149 $ 1,084 $ 801 $ 2,973 $ 2,782
Earnings per common share:
Basic $ 0.05 $ 0.05 $ 0.04 $ 0.13 $ 0.12
Diluted $ 0.05 $ 0.05 $ 0.04 $ 0.13 $ 0.12
Weighted average number of shares outstanding:
Basic 22,394,910 22,388,753 22,370,277 22,388,775 22,364,142
Diluted 22,439,195 22,419,469 22,371,914 22,421,330 22,365,224
(Dollars in thousands) At or for the three months ended At or for the nine months ended
Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2013
AVERAGE BALANCES
Average interest–earning assets $ 744,351 $ 737,759 $ 727,943 $ 739,951 $ 716,374
Average interest-bearing liabilities 573,417 577,658 581,327 576,670 574,879
Net average earning assets 170,934 160,101 146,616 163,281 141,495
Average loans 554,376 551,543 516,864 548,041 524,569
Average deposits 693,695 693,998 680,167 689,964 669,419
Average equity 102,327 101,026 82,665 101,021 81,528
Average tangible equity 76,358 75,055 56,667 75,053 55,514
ASSET QUALITY Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013
Non-performing loans 7,729 11,742 13,377
Non-performing loans to total loans 1.33% 2.12% 2.57%
Real estate/repossessed assets owned 1,604 3,705 11,951
Non-performing assets 9,333 15,447 25,328
Non-performing assets to total assets 1.13% 1.84% 3.15%
Net loan charge-offs (recoveries) in the quarter (100) (70) (352)
Net charge-offs (recoveries) in the quarter/average net loans (0.07)% (0.05)% (0.27)%
Allowance for loan losses $ 11,701.00 $ 12,001.00 $ 14,048.00
Average interest-earning assets to average interest-bearing liabilities 129.81% 127.72% 125.22%
Allowance for loan losses to non-performing loans 151.39% 102.21% 105.02%
Allowance for loan losses to total loans 2.02% 2.17% 2.70%
Shareholders' equity to assets 12.30% 11.92% 10.10%
CAPITAL RATIOS
Total capital (to risk weighted assets) 15.59% 16.78% 16.76%
Tier 1 capital (to risk weighted assets) 14.33% 15.52% 15.49%
Tier 1 capital (to leverage assets) 10.72% 10.97% 10.42%
Tangible common equity (to tangible assets) 9.46% 9.11% 7.10%
DEPOSIT MIX Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 March 31, 2014
Interest checking $ 107,701 $ 107,288 $ 99,374 $ 104,543
Regular savings 74,111 71,667 63,230 66,702
Money market deposit accounts 222,300 229,520 233,581 227,933
Non-interest checking 144,189 145,114 123,630 128,635
Certificates of deposit 141,029 149,046 169,456 162,253
Total deposits $ 689,330 $ 702,635 $ 689,271 $ 690,066
COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS
Commercial Commercial
Real Estate Real Estate & Construction
Commercial Mortgage Construction Total
December 31, 2014 (Dollars in thousands)
Commercial $ 82,284 $ -- $ -- $ 82,284
Commercial construction -- -- 26,051 26,051
Office buildings -- 81,882 -- 81,882
Warehouse/industrial -- 45,089 -- 45,089
Retail/shopping centers/strip malls -- 60,472 -- 60,472
Assisted living facilities -- 1,855 -- 1,855
Single purpose facilities -- 101,117 -- 101,117
Land -- 15,062 -- 15,062
Multi-family -- 31,553 -- 31,553
One-to-four family -- -- 3,148 3,148
Total $ 82,284 $ 337,030 $ 29,199 $ 448,513
March 31, 2014
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 Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 March 31, 2014
(Dollars in thousands)
Commercial and construction
Commercial $ 82,284 $ 80,930 $ 69,659 $ 71,632
Other real estate mortgage 337,030 329,056 332,373 324,881
Real estate construction 29,199 18,843 15,041 19,482
Total commercial and construction 448,513 428,829 417,073 415,995
Consumer
Real estate one-to-four family 90,865 94,536 93,026 93,007
Other installment 39,721 29,422 9,581 24,486
Total consumer 130,586 123,958 102,607 117,493
Total loans 579,099 552,787 519,680 533,488
Less:
Allowance for loan losses 11,701 12,001 14,048 12,551
Loans receivable, net $ 567,398 $ 540,786 $ 505,632 $ 520,937
DETAIL OF NON-PERFORMING ASSETS
Northwest Other Southwest Other
Oregon Oregon Washington Washington Other Total
December 31, 2014 (dollars in thousands)
Non-performing assets
Commercial $ -- $ -- $ -- $ -- $ 96 $ 96
Commercial real estate 2,077 -- 926 -- -- 3,003
Land -- 800 -- -- -- 800
Multi-family -- 1,933 357 -- -- 2,290
Consumer 443 -- 783 270 44 1,540
Total non-performing loans 2,520 2,733 2,066 270 140 7,729
REO 374 -- 1,185 45 -- 1,604
Total non-performing assets $ 2,894 $ 2,733 $ 3,251 $ 315 $ 140 $ 9,333
DETAIL OF SPEC CONSTRUCTION AND LAND DEVELOPMENT LOANS
Northwest Other Southwest Other
Oregon Oregon Washington Washington Total
December 31, 2014 (dollars in thousands)
Land and Spec Construction Loans
Land Development Loans $ 111 $ 2,924 $ 12,027 $ -- $ 15,062
Spec Construction Loans -- -- 2,190 204 2,394
Total Land and Spec Construction $ 111 $ 2,924 $ 14,217 $ 204 $ 17,456
At or for the three months ended At or for the nine months ended
SELECTED OPERATING DATA Dec. 31, 2014 Sept. 30, 2014 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2013
Efficiency ratio (4) 85.13% 85.81% 90.48% 87.02% 98.80%
Coverage ratio (6) 87.86% 87.57% 79.20% 85.87% 74.62%
Return on average assets (1) 0.55% 0.52% 0.40% 0.48% 0.47%
Return on average equity (1) 4.45% 4.26% 3.84% 3.91% 4.53%
NET INTEREST SPREAD
Yield on loans 4.65% 4.67% 4.85% 4.64% 4.91%
Yield on investment securities 1.73% 1.97% 1.46% 1.87% 1.50%
Total yield on interest earning assets 3.84% 3.88% 3.64% 3.82% 3.76%
Cost of interest bearing deposits 0.23% 0.25% 0.35% 0.25% 0.37%
Cost of FHLB advances and other borrowings 2.48% 2.34% 2.36% 2.39% 2.37%
Total cost of interest bearing liabilities 0.34% 0.34% 0.44% 0.34% 0.46%
Spread (7) 3.50% 3.54% 3.20% 3.48% 3.30%
Net interest margin 3.58% 3.61% 3.29% 3.55% 3.39%
PER SHARE DATA
Basic earnings per share (2) $ 0.05 $ 0.05 $ 0.04 $ 0.13 $ 0.12
Diluted earnings per share (3) $ 0.05 $ 0.05 $ 0.04 $ 0.13 $ 0.12
Book value per share (5) 4.54 4.46 3.62 4.54 3.62
Tangible book value per share (5) 3.38 3.31 2.46 3.38 2.46
Market price per share:
High for the period $ 4.49 $ 3.99 $ 2.98 $ 4.49 $ 2.98
Low for the period 3.84 3.67 2.51 3.38 2.27
Close for period end 4.48 3.99 2.90 4.48 2.90
Cash dividends declared per share -- -- -- -- --
Average number of shares outstanding:
Basic (2) 22,394,910 22,388,753 22,370,277 22,388,775 22,364,142
Diluted (3) 22,439,195 22,419,469 22,371,914 22,421,330 22,365,224

(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, Ron Wysaske or Kevin Lycklama, Riverview Bancorp, Inc. 360-693-6650Source:Riverview Bancorp, Inc.