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Riverview Bancorp Earnings Increase to $3.1 Million in Second Fiscal Quarter 2018; Results Highlighted by Strong Net Interest Income and Improved Operating Efficiencies

VANCOUVER, Wash., Oct. 26, 2017 (GLOBE NEWSWIRE) -- Riverview Bancorp, Inc. (Nasdaq:RVSB) (“Riverview” or the “Company”) today reported net income increased to $3.1 million, or $0.14 per diluted share, in the second fiscal quarter ended September 30, 2017, compared to $2.7 million, or $0.12 per diluted share, in the preceding quarter and $1.7 million, or $0.07 per diluted share, in the second fiscal quarter ended September 30, 2016.

In the first six months of fiscal year 2018, Riverview’s earnings increased to $5.7 million, or $0.25 per diluted share, compared to $3.4 million, or $0.15 per diluted share, in the first six months of fiscal year 2017.

“Solid revenue growth combined with improving operating efficiencies contributed to a profitable second quarter,” stated Pat Sheaffer, chairman and chief executive officer. “We are proud of our entire team for their hard work and dedication to growing the Company. Without their efforts none of this would be possible. This positions us well for continued growth in the Portland-Vancouver market over the next fiscal year.”

Second Quarter Highlights (at or for the period ended September 30, 2017)

  • Net income grew to $3.1 million, or $0.14 per diluted share.
  • Net interest margin (NIM) expanded by 33 basis points to 4.03% compared to the second quarter a year ago.
  • Total loans were $783.7 million at September 30, 2017.
  • Non-performing assets were 0.27% of total assets.
  • Tangible book value per share improved to $3.93.
  • Total risk-based capital ratio was 15.07% and Tier 1 leverage ratio was 9.75%.
  • Efficiency ratio improved to 65.2%.
  • Declared quarterly cash dividend of $0.0225 per share, generating a current dividend yield of 1.07%.

Income Statement

Riverview’s net interest income increased $2.6 million, or 33%, to $10.7 million for the second fiscal quarter of 2018 compared to $8.1 million in the second fiscal quarter a year ago, and increased $292,000, or 3%, compared to $10.4 million in the preceding quarter. The increase in net interest income was primarily due to a rise in interest and fees on loans as a result of the average balance growth of our outstanding loans and an increase in our loan yield. In the first six months of fiscal 2018, net interest income increased $5.3 million to $21.2 million compared to $15.9 million in the first six months of fiscal 2017.

“Our net interest margin compressed six basis points in the second quarter of fiscal 2018 compared to the prior linked quarter, reflecting our higher balance of cash and liquid assets,” said Kevin Lycklama, executive vice president and chief operating officer. “The prior linked quarter also included the collection of $104,000 of nonaccrual interest income which contributed four basis points to our prior quarter’s NIM.” The interest accretion on purchased loans totaled $273,000 and resulted in an 10 basis point increase in our NIM during the second fiscal quarter. Year-to-date, the NIM increased 34 basis points to 4.06% compared to 3.72% in the first six months of fiscal 2017.

Non-interest income was $2.7 million in the second fiscal quarter, which was the same as in the preceding quarter. Non-interest income increased $132,000 compared to $2.6 million in the second quarter a year ago. In the first six months of fiscal 2018, non-interest income increased to $5.5 million compared to $5.1 million in the first six months of fiscal 2017. The year over year increase was primarily due to continued organic growth as well as an increase in fees and service charges and asset management fees. The increase in fees and service charges was primarily due to the collection of $113,000 in loan prepayment penalties and an increase of $128,000 in debit interchange income. Other non-interest income decreased during the three and six months ended September 30, 2017 compared to the same prior year period due to $407,000 of income from a BOLI claim which was offset by a $132,000 impairment charge on an investment security during the prior year period.

Asset management fees were $818,000 in the second fiscal quarter of 2018 compared to $853,000 in the preceding quarter and $727,000 in the same quarter a year ago. Riverview Trust Company’s (“RTC”) assets under management increased to $461.2 million at September 30, 2017 compared to $440.5 million three months earlier and $401.2 million a year earlier. During the fourth quarter of fiscal 2017, RTC opened a second office in the Portland suburb of Lake Oswego, expanding its footprint and product offerings in the Portland market.

Non-interest expense decreased $415,000 to $8.8 million during the second fiscal quarter of 2018 compared to $9.2 million in the preceding quarter and increased $362,000 from $8.4 million for the same prior year period. The efficiency ratio improved to 65.2% for the quarter ended September 30, 2017 compared to 69.7% in the preceding quarter. Second quarter fiscal 2018 operating expenses included $177,000 in transaction-related expenses in connection with the MBank purchase compared to $429,000 in the preceding quarter. “We have continued to see improvements in our profitability and performance ratios as we realize the expected cost savings and operating efficiencies from this transaction,” said Lycklama.

Balance Sheet Review

With several large loan payoffs during the quarter, total loans decreased $13.8 million during the quarter to $783.7 million at September 30, 2017 compared to $797.5 million at June 30, 2017. Undisbursed construction loans totaled $64.1 million at September 30, 2017, with the majority of the undisbursed construction loans expected to fund over the next several quarters. The commercial loan pipeline totaled $47.7 million at the end of the quarter.

Total deposits increased $16.8 million to $990.3 million at September 30, 2017 compared to $973.5 million at June 30, 2017. Checking account balances accounted for $16.2 million of the gain and grew to 45.0% of total deposits compared to 44.2% a year ago.

Shareholders’ equity was $116.7 million at September 30, 2017 compared to $113.9 million three months earlier and $111.0 million a year earlier. Tangible book value per share was $3.93 at September 30, 2017 compared to $3.80 at June 30, 2017, and $3.79 at September 30, 2016. A quarterly cash dividend of $0.0225 per share was paid on October 24, 2017.

Credit Quality

Riverview’s classified assets totaled $7.1 million at September 30, 2017 compared to $8.8 million three months earlier. At September 30, 2017, the classified asset to total capital ratio was 6.0% compared to 7.5% three months earlier.

Non-performing loans were $2.7 million, or 0.35% of total loans, at September 30, 2017 compared to $2.8 million, or 0.35% of total loans, three months earlier. REO balances were $298,000 at September 30, 2017 unchanged compared to the preceding quarter.

The allowance for loan losses totaled $10.6 million, representing 1.35% of total loans at September 30, 2017 compared to 1.33% of total loans at June 30, 2017. 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 $2.6 million at September 30, 2017 compared to $2.8 million in the prior quarter. Net loan recoveries were $20,000 during the second fiscal quarter of 2018 compared to $69,000 in the preceding quarter.

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 15.07%, Tier 1 leverage ratio of 9.75% and tangible common equity to tangible assets ratio of 7.90% at September 30, 2017.

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. We believe 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 total assets (GAAP) to ending tangible assets (non-GAAP).

(Dollars in thousands) September 30,
2017
June 30, 2017 September 30,
2016
March 31, 2017
Shareholders' equity $ 116,742 $ 113,917 $ 110,986 $ 111,264
Goodwill 27,076 27,076 25,572 27,076
Core deposit intangible, net 1,219 1,277 - 1,335
Tangible shareholders' equity $ 88,447 $ 85,564 $ 85,414 $ 82,853
Total assets $ 1,147,680 $ 1,125,161 $ 984,045 $ 1,133,939
Goodwill 27,076 27,076 25,572 27,076
Core deposit intangible, net 1,219 1,277 - 1,335
Tangible assets $ 1,119,385 $ 1,096,808 $ 958,473 $ 1,105,528

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 $1.15 billion at September 30, 2017, it is the parent company of the 94-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 customers. There are 19 branches, including 14 in the Portland-Vancouver area and three lending centers. For the past 4 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal, The Columbian and The Gresham Outlook.

“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: expected cost savings, synergies and other financial benefits from our pending purchase of certain assets and assumption of certain liabilities of MBank and Merchants Bancorp pursuant to the Purchase and Assumption Agreement (the "Agreement") with Merchants Bancorp and its wholly owned subsidiary MBank (the "transaction") might not be realized within the expected time frames or at all, and costs or difficulties relating to integration matters might be greater than expected; the requisite approval of Merchants Bancorp’s shareholders and regulatory approvals for the transaction might not be obtained; 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 2018 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, 2017 June 30, 2017 September 30, 2016 March 31, 2017
ASSETS
Cash (including interest-earning accounts of $59,315, $14,919,$ 76,245 $ 34,108 $ 93,007 $ 64,613
$77,509 and $46,245)
Certificate of deposits held for investment 9,797 11,042 15,275 11,042
Loans held for sale 347 768 991 478
Investment securities:
Available for sale, at estimated fair value 200,584 205,012 152,251 200,214
Held to maturity, at amortized cost 46 54 69 64
Loans receivable (net of allowance for loan losses of $10,617,
$10,597, $10,063, and $10,528) 773,087 786,913 640,873 768,904
Real estate owned 298 298 539 298
Prepaid expenses and other assets 4,227 3,901 4,334 3,815
Accrued interest receivable 3,111 3,086 2,421 2,941
Federal Home Loan Bank stock, at cost 1,181 1,181 1,060 1,181
Premises and equipment, net 15,740 16,041 14,206 16,232
Deferred income taxes, net 6,167 6,051 7,816 7,610
Mortgage servicing rights, net 406 408 385 398
Goodwill 27,076 27,076 25,572 27,076
Core deposit intangible, net 1,219 1,277 - 1,335
Bank owned life insurance 28,149 27,945 25,246 27,738
TOTAL ASSETS$ 1,147,680 $ 1,125,161 $ 984,045 $ 1,133,939
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits$ 990,299 $ 973,483 $ 838,902 $ 980,058
Accrued expenses and other liabilities 10,838 8,302 8,175 13,080
Advance payments by borrowers for taxes and insurance 920 596 837 693
Junior subordinated debentures 26,438 26,414 22,681 26,390
Capital lease obligation 2,443 2,449 2,464 2,454
Total liabilities 1,030,938 1,011,244 873,059 1,022,675
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none - - - -
Common stock, $.01 par value; 50,000,000 authorized,
September 30, 2017 - 22,533,912 issued and outstanding;
June 30, 2017 – 22,527,401 issued and outstanding; 225 225 225 225
September 30, 2016 - 22,507,890 issued and outstanding;
March 31, 2017 – 22,510,890 issued and outstanding;
Additional paid-in capital 64,612 64,556 64,425 64,468
Retained earnings 53,034 50,482 45,207 48,335
Unearned shares issued to employee stock ownership plan (26) (52) (129) (77)
Accumulated other comprehensive income (loss) (1,103) (1,294) 1,258 (1,687)
Total shareholders’ equity 116,742 113,917 110,986 111,264
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$ 1,147,680 $ 1,125,161 $ 984,045 $ 1,133,939


RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three Months Ended Six Months Ended
(In thousands, except share data) (Unaudited) Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 2016
INTEREST INCOME:
Interest and fees on loans receivable$ 9,994 $ 9,789 $ 7,631 $ 19,783 $ 15,071
Interest on investment securities - taxable 1,079 1,133 769 2,212 1,489
Interest on investment securities - nontaxable 14 14 - 28 -
Other interest and dividends 228 87 130 315 232
Total interest and dividend income 11,315 11,023 8,530 22,338 16,792
INTEREST EXPENSE:
Interest on deposits 313 322 279 635 560
Interest on borrowings 277 268 163 545 321
Total interest expense 590 590 442 1,180 881
Net interest income 10,725 10,433 8,088 21,158 15,911
Provision for loan losses - - - - -
Net interest income after provision for loan losses 10,725 10,433 8,088 21,158 15,911
NON-INTEREST INCOME:
Fees and service charges 1,490 1,407 1,188 2,897 2,511
Asset management fees 818 853 727 1,671 1,549
Net gain on sale of loans held for sale 157 225 163 382 302
Bank owned life insurance income 204 207 190 411 381
Other, net 44 46 313 90 352
Total non-interest income 2,713 2,738 2,581 5,451 5,095
NON-INTEREST EXPENSE:
Salaries and employee benefits 5,251 5,422 4,531 10,673 9,171
Occupancy and depreciation 1,412 1,346 1,225 2,758 2,362
Data processing 580 616 476 1,196 971
Amortization of core deposit intangible 58 58 - 116 -
Advertising and marketing expense 256 234 252 490 445
FDIC insurance premium 136 145 74 281 196
State and local taxes 177 154 146 331 285
Telecommunications 103 104 76 207 149
Professional fees 261 415 453 676 711
Real estate owned expenses 3 2 35 5 50
Other 522 678 1,129 1,200 1,872
Total non-interest expense 8,759 9,174 8,397 17,933 16,212
INCOME BEFORE INCOME TAXES 4,679 3,997 2,272 8,676 4,794
PROVISION FOR INCOME TAXES 1,620 1,343 592 2,963 1,417
NET INCOME$ 3,059 $ 2,654 $ 1,680 $ 5,713 $ 3,377
Earnings per common share:
Basic$ 0.14 $ 0.12 $ 0.07 $ 0.25 $ 0.15
Diluted$ 0.14 $ 0.12 $ 0.07 $ 0.25 $ 0.15
Weighted average number of common shares outstanding:
Basic 22,518,941 22,504,852 22,474,019 22,511,935 22,470,957
Diluted 22,609,480 22,589,440 22,530,331 22,599,851 22,522,544


(Dollars in thousands) At or for the three months ended At or for the six months ended
Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 2016
AVERAGE BALANCES
Average interest–earning assets $ 1,056,818 $ 1,023,196 $ 867,797 $ 1,040,098 $ 853,691
Average interest-bearing liabilities 749,172 745,172 632,445 747,183 629,053
Net average earning assets 307,646 278,024 235,352 292,915 224,638
Average loans 783,213 786,317 645,479 784,756 639,258
Average deposits 992,111 961,421 809,384 976,850 796,178
Average equity 116,675 113,661 111,516 115,176 110,667
Average tangible equity (non-GAAP) 88,351 85,278 85,944 86,822 85,095
ASSET QUALITY Sept. 30, 2017 June 30, 2017 Sept. 30, 2016
Non-performing loans $ 2,745 $ 2,792 $ 2,360
Non-performing loans to total loans 0.35% 0.35% 0.36%
Real estate/repossessed assets owned $ 298 $ 298 $ 539
Non-performing assets $ 3,043 $ 3,090 $ 2,899
Non-performing assets to total assets 0.27% 0.27% 0.29%
Net loan recoveries in the quarter $ (20) $ (69) $ (103)
Net recoveries in the quarter/average net loans (0.01)% (0.04)% (0.06)%
Allowance for loan losses $ 10,617 $ 10,597 $ 10,063
Average interest-earning assets to average
interest-bearing liabilities 141.06% 137.31% 137.21%
Allowance for loan losses to
non-performing loans 386.78% 379.55% 426.40%
Allowance for loan losses to total loans 1.35% 1.33% 1.55%
Shareholders’ equity to assets 10.17% 10.12% 11.28%
CAPITAL RATIOS
Total capital (to risk weighted assets) 15.06% 14.41% 16.05%
Tier 1 capital (to risk weighted assets) 13.80% 13.16% 14.80%
Common equity tier 1 (to risk weighted assets) 13.80% 13.16% 14.80%
Tier 1 capital (to average tangible assets) 9.70% 9.79% 10.95%
Tangible common equity (to average tangible assets) 7.90% 7.80% 8.91%
DEPOSIT MIX Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 March 31, 2017
Interest checking $ 175,127 $ 171,360 $ 148,201 $ 171,152
Regular savings 134,116 126,704 104,241 126,370
Money market deposit accounts 274,409 274,537 249,381 289,998
Non-interest checking 270,678 258,223 222,218 242,738
Certificates of deposit 135,969 142,659 114,861 149,800
Total deposits $ 990,299 $ 973,483 $ 838,902 $ 980,058

COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS
Other Commercial
Commercial Real Estate Real Estate & Construction
Business Mortgage Construction Total
September 30, 2017 (Dollars in thousands)
Commercial business $ 118,444 $ - $ - $ 118,444
Commercial construction - - 35,923 35,923
Office buildings - 122,826 - 122,826
Warehouse/industrial - 77,026 - 77,026
Retail/shopping centers/strip malls - 69,512 - 69,512
Assisted living facilities - 3,026 - 3,026
Single purpose facilities - 168,165 - 168,165
Land - 13,745 - 13,745
Multi-family - 46,082 - 46,082
One-to-four family construction - - 17,955 17,955
Total $ 118,444 $ 500,382 $ 53,878 $ 672,704
March 31, 2017
Commercial business $ 107,371 $ - $ - $ 107,371
Commercial construction - - 27,050 27,050
Office buildings - 121,983 - 121,983
Warehouse/industrial - 74,671 - 74,671
Retail/shopping centers/strip malls - 78,757 - 78,757
Assisted living facilities - 3,686 - 3,686
Single purpose facilities - 167,974 - 167,974
Land - 15,875 - 15,875
Multi-family - 43,715 - 43,715
One-to-four family construction - - 19,107 19,107
Total $ 107,371 $ 506,661 $ 46,157 $ 660,189
LOAN MIX Sept. 30, 2017 June 30, 2017 Sept. 30, 2016 March 31, 2017
Commercial and construction
Commercial business $ 118,444 $ 125,732 $ 64,176 $ 107,371
Other real estate mortgage 500,382 513,360 423,729 506,661
Real estate construction 53,878 43,186 45,059 46,157
Total commercial and construction 672,704 682,278 532,964 660,189
Consumer
Real estate one-to-four family 90,764 91,898 86,321 92,865
Other installment 20,236 23,334 31,651 26,378
Total consumer 111,000 115,232 117,972 119,243
Total loans 783,704 797,510 650,936 779,432
Less:
Allowance for loan losses 10,617 10,597 10,063 10,528
Loans receivable, net $ 773,087 $ 786,913 $ 640,873 $ 768,904

DETAIL OF NON-PERFORMING ASSETS
Other Southwest Other
Oregon Washington Washington Other Total
September 30, 2017 (dollars in thousands)
Non-performing assets
Commercial business $ - $ 290 $ - $ - $ 290
Commercial real estate 1,095 209 - - 1,304
Land 780 - - - 780
Consumer - 300 - 71 371
Total non-performing loans 1,875 799 - 71 2,745
REO - - 298 - 298
Total non-performing assets $ 1,875 $ 799 $ 298 $ 71 $ 3,043
DETAIL OF LAND DEVELOPMENT AND SPECULATIVE CONSTRUCTION LOANS
Northwest Other Southwest
Oregon Oregon Washington Total
September 30, 2017 (dollars in thousands)
Land development $ 490 $ 911 $ 12,344 $ 13,745
Speculative construction 376 401 14,573 15,350
Total land development and speculative construction $ 866 $ 1,312 $ 26,917 $ 29,095

At or for the three months ended At or for the six months ended
SELECTED OPERATING DATASept. 30, 2017 June 30, 2017 Sept. 30, 2016 Sept. 30, 2017 Sept. 30, 2016
Efficiency ratio (4) 65.18% 69.65% 78.70% 67.39% 77.18%
Coverage ratio (6) 122.45% 113.72% 96.32% 117.98% 98.14%
Return on average assets (1) 1.06% 0.96% 0.70% 1.01% 0.72%
Return on average equity (1) 10.40% 9.37% 5.98% 9.89% 6.09%
NET INTEREST SPREAD
Yield on loans 5.06% 4.99% 4.69% 5.03% 4.70%
Yield on investment securities 2.14% 2.21% 1.96% 2.18% 1.91%
Total yield on interest-earning assets 4.25% 4.32% 3.90% 4.29% 3.92%
Cost of interest-bearing deposits 0.17% 0.18% 0.18% 0.18% 0.18%
Cost of FHLB advances and other borrowings 3.81% 3.69% 2.55% 3.75% 2.54%
Total cost of interest-bearing liabilities 0.31% 0.32% 0.28% 0.31% 0.28%
Spread (7) 3.94% 4.00% 3.62% 3.98% 3.64%
Net interest margin 4.03% 4.09% 3.70% 4.06% 3.72%
PER SHARE DATA
Basic earnings per share (2)$ 0.14 $ 0.12 $ 0.07 $ 0.25 $ 0.15
Diluted earnings per share (3) 0.14 0.12 0.07 0.25 0.15
Book value per share (5) 5.18 5.06 4.93 5.18 4.93
Tangible book value per share (5) (non-GAAP) 3.93 3.80 3.79 3.93 3.79
Market price per share:
High for the period$ 8.48 $ 7.47 $ 5.41 $ 8.48 $ 5.41
Low for the period 6.64 6.51 4.69 6.51 4.30
Close for period end 8.40 6.64 5.38 8.40 5.38
Cash dividends declared per share 0.0225 0.0225 0.0200 0.0450 0.0400
Average number of shares outstanding:
Basic (2) 22,518,941 22,504,852 22,474,019 22,511,935 22,470,957
Diluted (3) 22,609,480 22,589,440 22,530,331 22,599,851 22,522,544

  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.

Contacts: Pat Sheaffer or Kevin Lycklama
Riverview Bancorp, Inc. 360-693-6650

Source:Riverview Bancorp Inc