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Contact:
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Kevin Lycklama or David Lam
Riverview Bancorp, Inc. 360-693-6650
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Riverview Bancorp Earns $4.1 Million for Fourth Fiscal Quarter of 2022
and a Record $21.8 Million for Fiscal Year 2022;
and a Record $21.8 Million for Fiscal Year 2022;
Results Highlighted by Robust Loan Growth and Strong Core Deposit Growth
Vancouver, WA – April 28, 2022 - Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the
“Company”) today reported earnings of $4.1 million, or $0.19 per diluted share, in the fourth fiscal quarter ended March 31, 2022, compared to $5.5 million, or $0.25 per diluted share, in the preceding quarter and $3.4 million, or $0.15 per diluted
share, in the fourth fiscal quarter a year ago. For fiscal 2022, net income more than doubled to a record $21.8 million, or $0.98 per diluted share, compared to $10.5 million, or $0.47 per diluted share, in fiscal 2021.
“We delivered strong fourth quarter and record fiscal year 2022 results, highlighted by
substantial loan growth, strong loan production and solid revenue growth,” stated Kevin Lycklama, president and chief executive officer. “We had exceptional organic loan growth for the third consecutive quarter, and our loan pipeline remains strong.
Additionally, core deposit growth was robust year-over-year. We are operating from a position of strength as we enter fiscal year 2023, where we plan to capitalize on anticipated strong loan demand in the growing Southwest Washington and Oregon
markets we serve, coupled with a rising interest rate environment.”
Fourth Quarter Highlights (at or for the period ended March 31, 2022)
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•
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Net income was $4.1 million, or $0.19 per diluted share.
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•
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Pre-tax, pre-provision for loan losses income (non-GAAP) was $4.8 million for the quarter compared to $5.9 million in the
preceding quarter and $4.4 million for the year ago quarter.
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•
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Net interest income was $11.9 million for the quarter compared to $12.1 million in the preceding quarter and $11.2 million
in the fourth fiscal quarter a year ago.
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•
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Net interest margin (“NIM”) was 2.98%.
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•
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Riverview recorded a recapture of loan losses of $650,000 during the quarter, compared to a $1.3 million recapture in the
preceding quarter and no provision for loan losses in the fourth fiscal quarter a year ago.
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|
•
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The allowance for loan losses was $14.5 million, or 1.47% of total loans. The allowance for loan losses excluding SBA
purchased and SBA PPP loans (non-GAAP) was 1.57% of total loans.
|
|
•
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Total loans increased $28.2 million, or 11.9% annualized, during the quarter. The net increase consisted of an increase of
$39.4 million in non-PPP loans offset by a decrease of $11.2 million in SBA PPP loans.
|
|
o
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Of the $39.4 million in fourth quarter loan growth, Riverview purchased $13.3 million of SBA loans and its organic loan
portfolio increased by $28.5 million, or 12.0% annualized.
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•
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Total deposits increased $60.4 million, or 16.6% annualized, during the quarter to $1.53 billion.
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•
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Total risk-based capital ratio was 16.38% and Tier 1 leverage ratio was 9.19%.
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•
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Paid a quarterly cash dividend during the quarter of $0.055 per share.
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RVSB Reports Fourth Quarter Fiscal 2022
Results
April 28, 2022
Page 2
Income Statement Review
Riverview’s net interest income was $11.9 million in the current quarter, compared to $12.1
million in the preceding quarter, and $11.2 million in the fourth fiscal quarter a year ago. The decrease in net interest income compared to the prior quarter was due to a decrease in the average yield on loans, a decrease in SBA PPP loan interest
and fee income, as this portfolio continues to decline due to the forgiveness, and a decrease in net prepayment fees collected in the quarter of $144,000, compared to $250,000 during the previous quarter. Investment income continues to supplement
interest income due to the overall growth in the investment portfolio. Additionally, the low interest rate environment produced lower interest expense on deposits. The adjusted net interest income (non-GAAP) increased to $11.1 million in the quarter
compared to $10.9 million in the preceding quarter and $9.8 million in the fourth fiscal quarter a year ago. In fiscal 2022, net interest income increased to $47.6 million compared to $44.9 million in fiscal 2021.
During the fourth quarter of fiscal 2022, $440,000 of interest and net fee income was earned
through PPP loan forgiveness and normal amortization. This compared to $781,000 of interest and net fee income on PPP loans during the preceding quarter and $1.3 million in the fourth quarter of the prior year.
Riverview’s NIM was 2.98% for the fourth quarter of fiscal 2022, a two basis-point increase
compared to 2.96% in the preceding quarter and a 28 basis-point decrease compared to 3.26% in the fourth quarter of fiscal 2021. “The modest NIM expansion during the quarter was primarily due to an increase in investment yields and lower cash
balances. With the recent rate increase enacted by the Federal Reserve at the end of the quarter, we anticipate improvement in our NIM in future quarters, especially with the likelihood of additional rate increases throughout the year,” said David
Lam, executive vice president and chief financial officer.” In fiscal 2022, the NIM was 3.03% compared to 3.41% in fiscal 2021.
During the fourth quarter of fiscal 2022, net fees on loan prepayments, which included purchased
SBA loan premiums, increased net interest income by $144,000 and increased the NIM by four basis points. This compared to $250,000 in net fees on loan prepayments adding six basis points to NIM in the preceding quarter. The interest accretion on
purchased loans totaled $127,000 and resulted in a three-basis point increase in the NIM during the fourth quarter, compared to $64,000 and a two-basis point increase in the NIM during the preceding quarter. SBA PPP loan interest and fees added 9
basis points to the NIM for the current quarter, compared to 15 basis points for the preceding quarter. The average overnight cash balances were $236.6 million during the quarter ended March 31, 2022, compared to $307.4 million in the preceding
quarter and $248.1 million for the fourth fiscal quarter a year ago. Without the elevated level in overnight cash balances, NIM would have been 44 basis points higher in the current quarter, 62 basis points higher in the prior quarter and 72 basis
points higher in the fourth quarter a year ago. These items resulted in a core-NIM (non-GAAP) of 3.26% in the current quarter, 3.35% in the preceding quarter and 3.78% in the fourth fiscal quarter a year ago. The following table represents the
components of (non-GAAP) Core NIM:
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Three Months Ended
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||||||||||||
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March 31, 2022
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December 31, 2021
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March 31, 2021
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||||||||||
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Net interest margin (GAAP)
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2.98
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%
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2.96
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%
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3.26
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%
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||||||
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Net fees on loan prepayments
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(0.04
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)
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(0.06
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)
|
0.02
|
|||||||
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Accretion on purchased MBank loans
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(0.03
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)
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(0.02
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)
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(0.02
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)
|
||||||
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SBA PPP loans
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(0.09
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)
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(0.15
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)
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(0.20
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)
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||||||
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Excess FRB liquidity
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0.44
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0.62
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0.72
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|||||||||
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Core net interest margin (non-GAAP)
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3.26
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%
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3.35
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%
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3.78
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%
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||||||
During the fourth fiscal quarter of 2022, Riverview continued to deploy excess cash into its
investment portfolio. Investment securities totaled $418.9 million at March 31, 2022, compared to $395.0 million at December 31, 2021. During the current quarter, the Company purchased $45.9 million in new securities with a weighted average yield of
2.17%. Investment purchases were comprised primarily of agency securities and MBS backed by government agencies.
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 3
Average securities balances for the quarters ended March 31, 2022, December 31, 2021, and March
31, 2021, were $410.4 million, $368.6 million and $204.8 million, respectively. The weighted average yields on securities balances for those same periods were 1.63%, 1.50% and 1.54%, respectively.
Average PPP loans were $6.8 million in the fourth quarter compared to $23.8 million in the
preceding quarter and $90.3 million in the fourth fiscal quarter a year ago. During the quarter, Riverview recorded $16,000 in interest income on PPP loans and $424,000 in loan fee amortization into income. This compared to $60,000 in interest income
on PPP loans and $721,000 in loan fee amortization during the preceding quarter and $229,000 in interest income on PPP loans and $1.1 million in loan fee amortization during the fourth fiscal quarter a year ago.
Loan yields decreased during the quarter to 4.43% compared to 4.67% in the preceding quarter and
4.77% in the fourth fiscal quarter a year ago. Loan yields excluding PPP loans were 4.28% for the quarter compared to 4.45% in the preceding quarter and 4.65% in the year-ago quarter. Loan yields excluding PPP loans and net fees on loan prepayments
were 4.22% for the quarter compared to 4.35% in the preceding quarter and 4.69% in the year-ago quarter.
Riverview’s cost of deposits was 0.08% during the fourth fiscal quarter and in the preceding
quarter, and 0.15% in the fourth fiscal quarter a year ago as deposit costs remained low reflecting the continued low interest rate environment.
Non-interest income was $3.0 million during the fourth fiscal quarter, compared to $3.1 million
in the preceding quarter, and $2.8 million in the fourth fiscal quarter of 2021. Interchange and merchant bankcard fee income was higher due to the continued increase in economic activity in Oregon and Washington. Brokered loan fee income was strong
but has slowed moderately due to rising interest rates. In fiscal 2022, non-interest income increased to $12.7 million compared to $11.1 million in fiscal 2021. Non-interest income for fiscal year 2022 included a $500,000 BOLI death benefit.
Asset management fees were $1.1 million during the fourth fiscal quarter and the preceding
quarter. This compared to $900,000 in the fourth fiscal quarter a year ago. The preceding quarter included a one-time fee of approximately $200,000. Riverview Trust Company’s assets under management was $1.3 billion at March 31, 2022, compared to
$1.4 billion at December 31, 2021, and $1.3 billion at March 31, 2021.
Non-interest expense was $10.1 million during the quarter compared to $9.3 million in the
preceding quarter and $9.6 million in the fourth fiscal quarter a year ago. Salary and employee benefits increased compared to the prior quarter primarily due to annual salary increases and fiscal year-end bonuses and incentive pay. Additionally,
wage pressures, and the competitive landscape for attracting and retaining employees in Riverview’s primary markets, continues to put pressure on salary and employee benefits. For fiscal 2022, non-interest expense was $36.7 million, compared to $36.3
million for fiscal 2021. Riverview also recognized a $1.0 million gain on sale of a former branch property during the second fiscal quarter of 2022, which reduced non-interest expense for fiscal 2022. Fiscal 2021 included salary offsets of
approximately $800,000 related to SBA PPP loans that were not present in fiscal 2022.
Return on average assets was 0.97% in the fourth quarter of fiscal 2022 compared to 1.28% in the
preceding quarter. Return on average equity and return on average tangible equity (non-GAAP) was 10.23% and 12.26%, respectively, compared to 13.47% and 16.23%, respectively, for the prior quarter. The efficiency ratio was 68.0% for the fourth fiscal
quarter compared to 61.2% in the preceding quarter and 68.6% in the fourth fiscal quarter a year ago.
Riverview’s effective tax rate for the fourth quarter of fiscal 2022 was 23.7%, compared to
23.2% for the preceding quarter, and 22.5% for the year ago quarter.
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 4
Balance Sheet Review
Total loans were $990.4 million at March 31, 2022 compared to $962.2 million three months
earlier and $943.2 million a year ago. The $28.2 million increase in loan balances compared to the prior quarter was driven by a number of factors. In addition to growing organic loans by $28.5 million, Riverview completed the purchase of
approximately $13.3 million of SBA guaranteed loans. These increases offset the $11.2 million of SBA PPP loan forgiveness during the quarter. SBA PPP loans, net of fees, totaled $3.1 million at March 31, 2022, compared to $14.3 million at December
31, 2021, and $93.4 million at March 31, 2021.
Riverview’s loan pipeline totaled $101.4 million at March 31, 2022 compared to $81.2 million at
the end of the prior quarter. Loan activity remained strong, with new loan originations during the quarter totaling $92.9 million compared to $109.0 million in the preceding quarter and $64.8 million in the fourth quarter a year ago. “As our markets
continue to emerge from the pandemic, we have continued to focus on loan originations and emphasize business development activities,” said Lycklama. “Organic loan growth continued to exceed our expectations during the quarter and we are pleased with
the continued success of our lending teams. The strong loan demand in our local markets is encouraging, however, loan growth continues to be impacted by loan payoffs.”
Undisbursed construction loans totaled $39.5 million at March 31, 2022 compared to $28.0 million
at December 31, 2021, with the majority of the undisbursed construction loans expected to fund over the next several quarters. Revolving commercial business loan commitments totaled $66.0 million at March 31, 2022, compared to $67.4 million three
months earlier. Utilization on these loans totaled 18.4% at March 31, 2022, compared to 19.2% at December 31, 2021. The weighted average rate on loan originations during the quarter was 3.77% compared to 3.85% in the preceding quarter. Loan
originations during the quarter included several large loans with rate lock commitments made early in the quarter. Recent loan originations, excluding these loans, have weighted average rates over 4.00%
Total deposits were $1.53 billion at March 31, 2022 compared to $1.47 billion at December 31,
2021. Total deposits increased $187.8 million, or 14.0%, compared to a year earlier. The growth in deposits over the last year came from core checking, savings and money market accounts. Non-interest bearing checking accounts increased $59.7 million,
or 13.7%, year-over-year to $494.8 million at March 31, 2022. Checking accounts, as a percentage of total deposits, totaled 51.0% at March 31, 2022.
Shareholders’ equity was $157.2 million at March 31, 2022 compared to $163.1 million three
months earlier and $151.6 million a year earlier. Tangible book value per share (non-GAAP) was $5.86 at March 31, 2022, compared to $6.11 at December 31, 2021, and $5.54 at March 31, 2021. The decrease in tangible book value per share during the
current quarter was primarily due to a $8.6 million decrease in accumulated other comprehensive income (AOCI) related to an increase in the unrealized loss on available for sale securities, reflecting the increase in interest rates during the current
quarter. Riverview paid a quarterly cash dividend of $0.055 per share on April 21, 2022.
Credit Quality
Non-performing assets were $22.1 million, or 1.27% of total assets, at March 31, 2022 compared
to $1.8 million, or 0.11% of total assets, three months earlier and $571,000, or 0.04% of total assets, at March 31, 2021. The increase is attributed to an increase in non-performing SBA government guaranteed loans where payments have been delayed
due to the servicing transfer of these loans between two third-party servicers. Once the servicing transfer is complete, Riverview expects to receive the delayed payments and expects non-performing assets to decrease.
Additional details on government guaranteed portion of the SBA and USDA
loans.
The Bank holds approximately $29.0 million of the government guaranteed
portion of SBA and USDA loans originated by other banks that, when purchased, were placed into a Direct Registration Certificate (“DRC”) program by the SBA’s former fiscal transfer agent, Colson Inc. (“Colson”). Under the DRC program, Colson was
required to remit monthly payments to the investor holding the guaranteed balance, whether or not a payment had actually been received from the borrower. In 2020, Colson did not successfully retain its existing contract as the SBA’s fiscal transfer
agent and
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 5
began transitioning servicing over to a new company called Guidehouse. In
late 2021, Guidehouse, under their contract with the SBA, declined to continue the DRC program. After declining to continue the DRC program, all payments under the DRC program began to be held by Guidehouse or Colson until the DRC program could be
unwound and the DRC holdings converted into normal pass through certificates. As part of unwinding the DRC program, Colson has requested investors who had received payments in advance of the borrower actually remitting payment return advanced funds
before they will process the conversion of certificates. The Bank continues to work with Colson on the reconciliation and transfer of these loans. The Bank expects the reconciliation and unwinding process to continue through the next two quarters and
until the reconciliation and unwinding process is completed, these loans will be reflected as past due. The Bank is fully guaranteed to be paid all principal and interest on these loans.
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Non-performing loans reconciliation, excluding SBA Government Guaranteed Loans
|
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Three Months Ended
|
||||||||||||
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
|||||||||
|
Non-performing loans (GAAP)
|
$
|
22,099
|
$
|
1,840
|
$
|
571
|
||||||
|
Less: Non-performing SBA Government Guaranteed loans
|
(21,826
|
)
|
(1,533
|
)
|
(176
|
)
|
||||||
|
Adjusted non-performing loans excluding SBA
Government Guaranteed loans (non-GAAP)
|
$
|
273
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$
|
307
|
$
|
395
|
||||||
|
Non-performing loans to total loans (GAAP)
|
2.23
|
%
|
0.19
|
%
|
0.06
|
%
|
||||||
|
Non-performing loans, excluding SBA Government
Guaranteed loans to total loans (non-GAAP)
|
0.03
|
%
|
0.03
|
%
|
0.04
|
%
|
||||||
|
Non-performing loans to total assets (GAAP)
|
1.27
|
%
|
0.11
|
%
|
0.04
|
%
|
||||||
|
Non-performing loans, excluding SBA Government
Guaranteed loans to total assets (non-GAAP)
|
0.02
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%
|
0.02
|
%
|
0.03
|
%
|
||||||
Riverview recorded an insignificant amount of net loan charge-offs during the fourth fiscal
quarter. This compared to net loan charge-offs of $52,000 for the preceding quarter and $14,000 in the fourth fiscal quarter a year ago. Due to the improvement in economic conditions, no loan charge-offs, and the overall quality of the loan
portfolio, Riverview recorded a recapture of loan losses of $650,000 during the fourth fiscal quarter. This compared to a recapture of loan losses of $1.3 million in the prior quarter and no provision for loan losses during the fourth fiscal quarter
a year ago. Riverview had no commercial or consumer loan modifications remaining on its books at March 31, 2022 and Riverview’s hotel/motel portfolio performance has steadily improved over the last several quarters.
Classified assets were $6.4 million at March 31, 2022, compared to $6.5 million at December 31,
2021 and $7.7 million at March 31, 2021. The classified asset to total capital ratio was 3.8% at March 31, 2022, compared to 3.9% three months earlier and 4.8% a year earlier. Criticized assets decreased to $7.8 million at March 31, 2022, compared to
$14.0 million at December 31, 2021, and $42.5 million at March 31, 2021. These balances may decline further over the next several quarters as the Company receives updated financial statements from these borrowers. The criticized assets balance
reflects risk rating changes primarily associated with loans that had been granted COVID-19 loan modifications.
At March 31, 2022, the allowance for loan losses was $14.5 million, compared to $15.2 million at
December 31, 2021, and $19.2 million one year earlier. The allowance for loan losses represented 1.47% of total loans at March 31, 2022, compared to 1.58% in the preceding quarter and 2.03% a year earlier. The allowance for loan losses to loans, net
of SBA guaranteed loans (including SBA purchased and PPP loans) (non-GAAP), was 1.57% at March 31, 2022, compared to 1.68% at December 31, 2021 and 2.39% a year earlier. 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 $371,000 at March 31, 2022,
compared to $497,000 three months earlier.
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 6
PPP Loans
During Round 1, Riverview originated 790 PPP loans totaling approximately $112.9 million, net of
deferred fees, with an average loan size of $147,000. In PPP Round 2, Riverview originated 414 PPP loans totaling approximately $54.1 million, net of deferred fees, with an average loan size of $131,000. Unamortized PPP deferred loan fees at March
31, 2022 totaled $99,000 for all PPP loans. In total, 1,182 PPP loans totaling $163.9 million, or 98.1%, have been forgiven by the SBA or repaid by the borrower.
The following table presents the breakdown and balance, net of deferred fees, of all PPP loans
(Round 1 and Round 2) at March 31, 2022:
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Range
|
Number of loans
|
Total
(in 000s)
|
||
|
Up to $150,000
|
15
|
$
|
589
|
|
|
150,001 to $350,000
|
5
|
1,009
|
||
|
350,001 to $2,000,000
|
2
|
1,487
|
||
|
Total
|
22
|
$
|
3,085
|
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 16.38% and a Tier 1 leverage ratio of 9.19% at March 31, 2022. Tangible common equity to average tangible assets ratio (non-GAAP) was 7.57% at March 31, 2022.
Stock Repurchase Program
On March 9, 2022, Riverview announced that its Board of Directors authorized the repurchase up
to $5.0 million of the Company’s outstanding shares in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on March 21, 2022, and continuing until the earlier of the completion of the
repurchase or September 9, 2022, depending upon market conditions. As of March 31, 2022, Riverview had repurchased 28,240 shares at an average price of $7.63 per share.
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 Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 7 |
Tangible shareholders' equity to tangible assets and tangible book value per share:
|
||||||||||||
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
|||||||||
|
Shareholders' equity (GAAP)
|
$
|
157,249
|
$
|
163,141
|
$
|
151,594
|
||||||
|
Exclude: Goodwill
|
(27,076
|
)
|
(27,076
|
)
|
(27,076
|
)
|
||||||
|
Exclude: Core deposit intangible, net
|
(495
|
)
|
(526
|
)
|
(619
|
)
|
||||||
|
Tangible shareholders' equity (non-GAAP)
|
$
|
129,678
|
$
|
135,539
|
$
|
123,899
|
||||||
|
Total assets (GAAP)
|
$
|
1,740,096
|
$
|
1,683,076
|
$
|
1,549,158
|
||||||
|
Exclude: Goodwill
|
(27,076
|
)
|
(27,076
|
)
|
(27,076
|
)
|
||||||
|
Exclude: Core deposit intangible, net
|
(495
|
)
|
(526
|
)
|
(619
|
)
|
||||||
|
Tangible assets (non-GAAP)
|
$
|
1,712,525
|
$
|
1,655,474
|
$
|
1,521,463
|
||||||
|
Shareholders' equity to total assets (GAAP)
|
9.04
|
%
|
9.69
|
%
|
9.79
|
%
|
||||||
|
Tangible common equity to tangible assets (non-GAAP)
|
7.57
|
%
|
8.19
|
%
|
8.14
|
%
|
||||||
|
Shares outstanding
|
22,127,396
|
22,176,612
|
22,351,235
|
|||||||||
|
Book value per share (GAAP)
|
7.11
|
7.36
|
6.78
|
|||||||||
|
Tangible book value per share (non-GAAP)
|
5.86
|
6.11
|
5.54
|
|||||||||
|
Pre-tax, pre-provision income
|
||||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
March 31, 2022
|
March 31, 2021
|
|||||||||||||||
|
Net income (GAAP)
|
$
|
4,125
|
$
|
5,510
|
$
|
3,414
|
$
|
21,820
|
$
|
10,472
|
||||||||||
|
Include: Provision for income taxes
|
1,282
|
1,661
|
992
|
6,456
|
2,981
|
|||||||||||||||
|
Include: Provision for (recapture of) loan losses
|
(650
|
)
|
(1,275
|
)
|
-
|
(4,625
|
)
|
6,300
|
||||||||||||
|
Pre-tax, pre-provision income (non-GAAP)
|
$
|
4,757
|
$
|
5,896
|
$
|
4,406
|
$
|
23,651
|
$
|
19,753
|
||||||||||
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 8 |
Net interest margin reconciliation to core net interest margin
|
||||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
March 31, 2022
|
March 31, 2021
|
|||||||||||||||
|
Net interest income (GAAP)
|
$
|
11,906
|
$
|
12,059
|
$
|
11,196
|
$
|
47,625
|
$
|
44,917
|
||||||||||
|
Tax equivalent adjustment
|
21
|
21
|
16
|
75
|
41
|
|||||||||||||||
|
Net fees on loan prepayments
|
(144
|
)
|
(250
|
)
|
72
|
(922
|
)
|
212
|
||||||||||||
|
Accretion on purchased MBank loans
|
(127
|
)
|
(64
|
)
|
(92
|
)
|
(351
|
)
|
(344
|
)
|
||||||||||
|
SBA PPP loans interest income and net fees
|
(440
|
)
|
(781
|
)
|
(1,292
|
)
|
(3,041
|
)
|
(3,999
|
)
|
||||||||||
|
Income on excess FRB liquidity
|
(109
|
)
|
(114
|
)
|
(56
|
)
|
(429
|
)
|
(185
|
)
|
||||||||||
|
Adjusted net interest income (non-GAAP)
|
$
|
11,107
|
$
|
10,871
|
$
|
9,844
|
$
|
42,957
|
$
|
40,642
|
||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
March 31, 2022
|
March 31, 2021
|
|||||||||||||||
|
Average balance of interest-earning assets (GAAP)
|
$
|
1,623,660
|
$
|
1,619,775
|
$
|
1,393,153
|
$
|
1,575,068
|
$
|
1,320,109
|
||||||||||
|
SBA PPP loans (average)
|
(6,794
|
)
|
(23,769
|
)
|
(90,268
|
)
|
(39,326
|
)
|
(96,441
|
)
|
||||||||||
|
Excess FRB liquidity (average)
|
(236,572
|
)
|
(307,437
|
)
|
(248,100
|
)
|
(290,882
|
)
|
(195,635
|
)
|
||||||||||
|
Average balance of interest-earning assets excluding
|
||||||||||||||||||||
|
SBA PPP loans and excess FRB liquidity (non-GAAP)
|
$
|
1,380,294
|
$
|
1,288,569
|
$
|
1,054,785
|
$
|
1,244,860
|
$
|
1,028,033
|
||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
March 31, 2022
|
March 31, 2021
|
||||||||||||||||
|
Net interest margin (GAAP)
|
2.98
|
%
|
2.96
|
%
|
3.26
|
%
|
3.03
|
%
|
3.41
|
%
|
||||||||||
|
Net fees on loan prepayments
|
(0.04
|
)
|
(0.06
|
)
|
0.02
|
(0.06
|
)
|
0.01
|
||||||||||||
|
Accretion on purchased MBank loans
|
(0.03
|
)
|
(0.02
|
)
|
(0.02
|
)
|
(0.02
|
)
|
(0.03
|
)
|
||||||||||
|
SBA PPP loans
|
(0.09
|
)
|
(0.15
|
)
|
(0.20
|
)
|
(0.12
|
)
|
(0.06
|
)
|
||||||||||
|
Excess FRB liquidity
|
0.44
|
0.62
|
0.72
|
0.62
|
0.62
|
|||||||||||||||
|
Core net interest margin (non-GAAP)
|
3.26
|
%
|
3.35
|
%
|
3.78
|
%
|
3.45
|
%
|
3.95
|
%
|
||||||||||
|
Allowance for loan losses reconciliation, excluding SBA purchased and PPP loans
|
||||||||||||
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
|||||||||
|
Allowance for loan losses
|
$
|
14,523
|
$
|
15,173
|
$
|
19,178
|
||||||
|
Loans receivable (GAAP)
|
$
|
990,408
|
$
|
962,223
|
$
|
943,235
|
||||||
|
Exclude: SBA purchased loans
|
(59,420
|
)
|
(46,152
|
)
|
(47,379
|
)
|
||||||
|
Exclude: SBA PPP loans
|
(3,085
|
)
|
(14,322
|
)
|
(93,444
|
)
|
||||||
|
Loans receivable excluding SBA purchased and PPP loans
(non-GAAP)
|
$
|
927,903
|
$
|
901,749
|
$
|
802,412
|
||||||
|
Allowance for loan losses to loans receivable (GAAP)
|
1.47
|
%
|
1.58
|
%
|
2.03
|
%
|
||||||
|
Allowance for loan losses to loans receivable excluding
SBA purchased and PPP loans (non-GAAP) |
1.57
|
%
|
1.68
|
%
|
2.39
|
%
|
||||||
|
Non-performing loans reconciliation, excluding SBA Government Guaranteed Loans
|
||||||||||||
|
Three Months Ended
|
||||||||||||
|
(Dollars in thousands)
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
|||||||||
|
Non-performing loans (GAAP)
|
$
|
22,099
|
$
|
1,840
|
$
|
571
|
||||||
|
Less: Non-performing SBA Government Guaranteed loans
|
(21,826
|
)
|
(1,533
|
)
|
(176
|
)
|
||||||
|
Adjusted non-performing loans excluding SBA
Government Guaranteed loans (non-GAAP)
|
$
|
273
|
$
|
307
|
$
|
395
|
||||||
|
Non-performing loans to total loans (GAAP)
|
2.23
|
%
|
0.19
|
%
|
0.06
|
%
|
||||||
|
Non-performing loans, excluding SBA Government
Guaranteed loans to total loans (non-GAAP)
|
0.03
|
%
|
0.03
|
%
|
0.04
|
%
|
||||||
|
Non-performing loans to total assets (GAAP)
|
1.27
|
%
|
0.11
|
%
|
0.04
|
%
|
||||||
|
Non-performing loans, excluding SBA Government
Guaranteed loans to total assets (non-GAAP)
|
0.02
|
%
|
0.02
|
%
|
0.03
|
%
|
||||||
April 28, 2022
Page 9 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 $1.74 billion at March 31, 2022, it is the parent company of the 98-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 17 branches, including 13 in the Portland-Vancouver area, and 3 lending centers. For the past 9 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 Federal Reserve and our bank subsidiary by the Federal Deposit Insurance Corporation, the Washington State Department of Financial Institutions, Division of Banks 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.
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 2023 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.
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 10 |
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
|
||||||||||||
|
Consolidated Balance Sheets
|
||||||||||||
|
(In thousands, except share data) (Unaudited)
|
March 31, 2022
|
December 31, 2021
|
March 31, 2021
|
|||||||||
|
ASSETS
|
||||||||||||
|
Cash (including interest-earning accounts of $224,589, $227,635,
|
$
|
241,424
|
$
|
239,857
|
$
|
265,408
|
||||||
|
and $254,205)
|
||||||||||||
|
Certificate of deposits held for investment
|
249
|
249
|
249
|
|||||||||
|
Investment securities:
|
||||||||||||
|
Available for sale, at estimated fair value
|
165,782
|
182,303
|
216,304
|
|||||||||
|
Held to maturity, at amortized cost
|
253,100
|
212,722
|
39,574
|
|||||||||
|
Loans receivable (net of allowance for loan losses of $14,523,
|
||||||||||||
|
$15,173 and $19,178)
|
975,885
|
947,050
|
924,057
|
|||||||||
|
Prepaid expenses and other assets
|
12,396
|
11,597
|
13,189
|
|||||||||
|
Accrued interest receivable
|
4,650
|
4,580
|
5,236
|
|||||||||
|
Federal Home Loan Bank stock, at cost
|
2,019
|
1,722
|
1,722
|
|||||||||
|
Premises and equipment, net
|
17,166
|
17,410
|
17,824
|
|||||||||
|
Financing lease right-of-use assets
|
1,355
|
1,374
|
1,432
|
|||||||||
|
Deferred income taxes, net
|
7,501
|
5,791
|
5,419
|
|||||||||
|
Mortgage servicing rights, net
|
34
|
41
|
81
|
|||||||||
|
Goodwill
|
27,076
|
27,076
|
27,076
|
|||||||||
|
Core deposit intangible, net
|
495
|
526
|
619
|
|||||||||
|
Bank owned life insurance
|
30,964
|
30,778
|
30,968
|
|||||||||
|
TOTAL ASSETS
|
$
|
1,740,096
|
$
|
1,683,076
|
$
|
1,549,158
|
||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||
|
LIABILITIES:
|
||||||||||||
|
Deposits
|
$
|
1,533,878
|
$
|
1,473,454
|
$
|
1,346,060
|
||||||
|
Accrued expenses and other liabilities
|
19,298
|
17,163
|
21,906
|
|||||||||
|
Advance payments by borrowers for taxes and insurance
|
555
|
211
|
521
|
|||||||||
|
Junior subordinated debentures
|
26,833
|
26,812
|
26,748
|
|||||||||
|
Finance lease liability
|
2,283
|
2,295
|
2,329
|
|||||||||
|
Total liabilities
|
1,582,847
|
1,519,935
|
1,397,564
|
|||||||||
|
SHAREHOLDERS' EQUITY:
|
||||||||||||
|
Serial preferred stock, $.01 par value; 250,000 authorized,
|
||||||||||||
|
issued and outstanding, none
|
-
|
-
|
-
|
|||||||||
|
Common stock, $.01 par value; 50,000,000 authorized,
|
||||||||||||
|
March 31, 2022 – 22,155,636 issued and 22,127,396 outstanding;
|
||||||||||||
|
December 31, 2021 – 22,426,520 issued and 22,176,612 outstanding;
|
221
|
221
|
223
|
|||||||||
|
March 31, 2021 – 22,351,235 issued and outstanding;
|
||||||||||||
|
Additional paid-in capital
|
62,048
|
62,234
|
63,650
|
|||||||||
|
Retained earnings
|
104,931
|
102,023
|
87,881
|
|||||||||
|
Accumulated other comprehensive loss
|
(9,951
|
)
|
(1,337
|
)
|
(160
|
)
|
||||||
|
Total shareholders’ equity
|
157,249
|
163,141
|
151,594
|
|||||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
1,740,096
|
$
|
1,683,076
|
$
|
1,549,158
|
||||||
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 11 |
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
|
||||||||||||||||||||
|
Consolidated Statements of Income
|
||||||||||||||||||||
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||
|
(In thousands, except share data) (Unaudited)
|
March 31, 2022
|
Dec. 31, 2021
|
March 31, 2021
|
March 31, 2022
|
March 31, 2021
|
|||||||||||||||
|
INTEREST INCOME:
|
||||||||||||||||||||
|
Interest and fees on loans receivable
|
$
|
10,631
|
$
|
11,046
|
$
|
11,023
|
$
|
44,079
|
$
|
45,498
|
||||||||||
|
Interest on investment securities - taxable
|
1,563
|
1,303
|
713
|
5,001
|
2,422
|
|||||||||||||||
|
Interest on investment securities - nontaxable
|
66
|
66
|
50
|
237
|
129
|
|||||||||||||||
|
Other interest and dividends
|
129
|
136
|
79
|
508
|
295
|
|||||||||||||||
|
Total interest and dividend income
|
12,389
|
12,551
|
11,865
|
49,825
|
48,344
|
|||||||||||||||
|
INTEREST EXPENSE:
|
||||||||||||||||||||
|
Interest on deposits
|
283
|
300
|
473
|
1,424
|
2,544
|
|||||||||||||||
|
Interest on borrowings
|
200
|
192
|
196
|
776
|
883
|
|||||||||||||||
|
Total interest expense
|
483
|
492
|
669
|
2,200
|
3,427
|
|||||||||||||||
|
Net interest income
|
11,906
|
12,059
|
11,196
|
47,625
|
44,917
|
|||||||||||||||
|
Provision for (recapture of) loan losses
|
(650
|
)
|
(1,275
|
)
|
-
|
(4,625
|
)
|
6,300
|
||||||||||||
|
Net interest income after provision for (recapture of) loan losses
|
12,556
|
13,334
|
11,196
|
52,250
|
38,617
|
|||||||||||||||
|
NON-INTEREST INCOME:
|
||||||||||||||||||||
|
Fees and service charges
|
1,681
|
1,759
|
1,667
|
7,109
|
6,382
|
|||||||||||||||
|
Asset management fees
|
1,067
|
1,137
|
900
|
4,107
|
3,646
|
|||||||||||||||
|
Bank owned life insurance ("BOLI")
|
187
|
189
|
188
|
800
|
813
|
|||||||||||||||
|
BOLI death benefit in excess of cash surrender value
|
-
|
-
|
-
|
500
|
-
|
|||||||||||||||
|
Other, net
|
31
|
31
|
81
|
228
|
249
|
|||||||||||||||
|
Total non-interest income, net
|
2,966
|
3,116
|
2,836
|
12,744
|
11,090
|
|||||||||||||||
|
NON-INTEREST EXPENSE:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
6,366
|
5,880
|
6,301
|
23,635
|
22,570
|
|||||||||||||||
|
Occupancy and depreciation
|
1,539
|
1,367
|
1,439
|
5,624
|
5,780
|
|||||||||||||||
|
Data processing
|
753
|
698
|
666
|
2,940
|
2,662
|
|||||||||||||||
|
Amortization of core deposit intangible
|
31
|
32
|
35
|
125
|
140
|
|||||||||||||||
|
Advertising and marketing
|
127
|
155
|
83
|
614
|
466
|
|||||||||||||||
|
FDIC insurance premium
|
118
|
113
|
98
|
439
|
319
|
|||||||||||||||
|
State and local taxes
|
198
|
195
|
196
|
812
|
794
|
|||||||||||||||
|
Telecommunications
|
45
|
51
|
50
|
197
|
295
|
|||||||||||||||
|
Professional fees
|
290
|
285
|
269
|
1,235
|
1,231
|
|||||||||||||||
|
Gain on sale of premises and equipment, net
|
-
|
-
|
-
|
(993
|
)
|
-
|
||||||||||||||
|
Other
|
648
|
503
|
489
|
2,090
|
1,997
|
|||||||||||||||
|
Total non-interest expense
|
10,115
|
9,279
|
9,626
|
36,718
|
36,254
|
|||||||||||||||
|
INCOME BEFORE INCOME TAXES
|
5,407
|
7,171
|
4,406
|
28,276
|
13,453
|
|||||||||||||||
|
PROVISION FOR INCOME TAXES
|
1,282
|
1,661
|
992
|
6,456
|
2,981
|
|||||||||||||||
|
NET INCOME
|
$
|
4,125
|
$
|
5,510
|
$
|
3,414
|
$
|
21,820
|
$
|
10,472
|
||||||||||
|
Earnings per common share:
|
||||||||||||||||||||
|
Basic
|
$
|
0.19
|
$
|
0.25
|
$
|
0.15
|
$
|
0.98
|
$
|
0.47
|
||||||||||
|
Diluted
|
$
|
0.19
|
$
|
0.25
|
$
|
0.15
|
$
|
0.98
|
$
|
0.47
|
||||||||||
|
Weighted average number of common shares outstanding:
|
||||||||||||||||||||
|
Basic
|
22,161,686
|
22,166,130
|
22,346,368
|
22,213,029
|
22,296,195
|
|||||||||||||||
|
Diluted
|
22,172,735
|
22,177,120
|
22,361,730
|
22,224,947
|
22,312,831
|
|||||||||||||||
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 12 |
(Dollars in thousands)
|
At or for the three months ended
|
At or for the twelve months ended
|
||||||||||||||||||
|
March 31, 2022
|
Dec. 31, 2021
|
March 31, 2021
|
March 31, 2022
|
March 31, 2021
|
||||||||||||||||
|
AVERAGE BALANCES
|
||||||||||||||||||||
|
Average interest–earning assets
|
$
|
1,623,660
|
$
|
1,619,775
|
$
|
1,393,153
|
$
|
1,575,068
|
$
|
1,320,109
|
||||||||||
|
Average interest-bearing liabilities
|
1,052,004
|
1,032,089
|
906,124
|
1,016,592
|
861,820
|
|||||||||||||||
|
Net average earning assets
|
571,656
|
587,686
|
487,029
|
558,476
|
458,289
|
|||||||||||||||
|
Average loans
|
973,461
|
938,113
|
938,162
|
934,742
|
966,070
|
|||||||||||||||
|
Average deposits
|
1,508,632
|
1,503,736
|
1,289,259
|
1,463,693
|
1,205,302
|
|||||||||||||||
|
Average equity
|
163,581
|
162,282
|
153,896
|
160,155
|
151,650
|
|||||||||||||||
|
Average tangible equity (non-GAAP)
|
135,993
|
134,661
|
126,180
|
132,519
|
123,881
|
|||||||||||||||
|
ASSET QUALITY
|
March 31, 2022
|
Dec. 31, 2021
|
March 31, 2021
|
|||||||||||
|
Non-performing loans
|
$
|
22,099
|
$
|
1,840
|
$
|
571
|
||||||||
|
Non-performing loans excluding SBA Government Guarantee (non-GAAP)
|
$
|
273
|
$
|
307
|
$
|
395
|
||||||||
|
Non-performing loans to total loans
|
2.23
|
%
|
0.19
|
%
|
0.06
|
%
|
||||||||
|
Non-performing loans to total loans excluding SBA Government Guarantee (non-GAAP)
|
0.03
|
%
|
0.03
|
%
|
0.04
|
%
|
||||||||
|
Real estate/repossessed assets owned
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
|
Non-performing assets
|
$
|
22,099
|
$
|
1,840
|
$
|
571
|
||||||||
|
Non-performing assets excluding SBA Government Guarantee (non-GAAP)
|
$
|
273
|
$
|
307
|
$
|
395
|
||||||||
|
Non-performing assets to total assets
|
1.27
|
%
|
0.11
|
%
|
0.04
|
%
|
||||||||
|
Non-performing assets to total assets excluding SBA Government Guarantee (non-GAAP)
|
0.02
|
%
|
0.02
|
%
|
0.03
|
%
|
||||||||
|
Net loan charge-offs in the quarter
|
$
|
-
|
$
|
52
|
$
|
14
|
||||||||
|
Net charge-offs in the quarter/average net loans
|
0.00
|
%
|
0.02
|
%
|
0.01
|
%
|
||||||||
|
Allowance for loan losses
|
$
|
14,523
|
$
|
15,173
|
$
|
19,178
|
||||||||
|
Average interest-earning assets to average
|
||||||||||||||
|
interest-bearing liabilities
|
154.34
|
%
|
156.94
|
%
|
153.75
|
%
|
||||||||
|
Allowance for loan losses to
|
||||||||||||||
|
non-performing loans
|
65.72
|
%
|
824.62
|
%
|
3358.67
|
%
|
||||||||
|
Allowance for loan losses to total loans
|
1.47
|
%
|
1.58
|
%
|
2.03
|
%
|
||||||||
|
Shareholders’ equity to assets
|
9.04
|
%
|
9.69
|
%
|
9.79
|
%
|
||||||||
|
CAPITAL RATIOS
|
||||||||||||||
|
Total capital (to risk weighted assets)
|
16.38
|
%
|
16.72
|
%
|
17.35
|
%
|
||||||||
|
Tier 1 capital (to risk weighted assets)
|
15.12
|
%
|
15.47
|
%
|
16.09
|
%
|
||||||||
|
Common equity tier 1 (to risk weighted assets)
|
15.12
|
%
|
15.47
|
%
|
16.09
|
%
|
||||||||
|
Tier 1 capital (to average tangible assets)
|
9.19
|
%
|
9.10
|
%
|
9.63
|
%
|
||||||||
|
Tangible common equity (to average tangible assets) (non-GAAP)
|
7.57
|
%
|
8.19
|
%
|
8.14
|
%
|
||||||||
|
DEPOSIT MIX
|
March 31, 2022
|
Dec. 31, 2021
|
March 31, 2021
|
|||||||||
|
Interest checking
|
$
|
287,861
|
$
|
285,807
|
$
|
258,014
|
||||||
|
Regular savings
|
340,076
|
327,887
|
291,769
|
|||||||||
|
Money market deposit accounts
|
299,738
|
277,355
|
240,554
|
|||||||||
|
Non-interest checking
|
494,831
|
469,100
|
435,098
|
|||||||||
|
Certificates of deposit
|
111,372
|
113,305
|
120,625
|
|||||||||
|
Total deposits
|
$
|
1,533,878
|
$
|
1,473,454
|
$
|
1,346,060
|
||||||
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 13 |
COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS
|
||||||||||||||||
|
Other
|
Commercial
|
|||||||||||||||
|
Commercial
|
Real Estate
|
Real Estate
|
& Construction
|
|||||||||||||
|
Business
|
Mortgage
|
Construction
|
Total
|
|||||||||||||
|
March 31, 2022
|
(Dollars in thousands)
|
|||||||||||||||
|
Commercial business
|
$
|
225,006
|
$
|
-
|
$
|
-
|
$
|
225,006
|
||||||||
|
SBA PPP
|
3,085
|
-
|
-
|
3,085
|
||||||||||||
|
Commercial construction
|
-
|
-
|
12,741
|
12,741
|
||||||||||||
|
Office buildings
|
-
|
124,690
|
-
|
124,690
|
||||||||||||
|
Warehouse/industrial
|
-
|
100,184
|
-
|
100,184
|
||||||||||||
|
Retail/shopping centers/strip malls
|
-
|
97,192
|
-
|
97,192
|
||||||||||||
|
Assisted living facilities
|
-
|
663
|
-
|
663
|
||||||||||||
|
Single purpose facilities
|
-
|
260,108
|
-
|
260,108
|
||||||||||||
|
Land
|
-
|
11,556
|
-
|
11,556
|
||||||||||||
|
Multi-family
|
-
|
60,211
|
-
|
60,211
|
||||||||||||
|
One-to-four family construction
|
-
|
-
|
11,419
|
11,419
|
||||||||||||
|
Total
|
$
|
228,091
|
$
|
654,604
|
$
|
24,160
|
$
|
906,855
|
||||||||
|
March 31, 2021
|
||||||||||||||||
|
Commercial business
|
$
|
171,701
|
$
|
-
|
$
|
-
|
$
|
171,701
|
||||||||
|
SBA PPP
|
93,444
|
-
|
-
|
93,444
|
||||||||||||
|
Commercial construction
|
-
|
-
|
9,810
|
9,810
|
||||||||||||
|
Office buildings
|
-
|
135,526
|
-
|
135,526
|
||||||||||||
|
Warehouse/industrial
|
-
|
87,880
|
-
|
87,880
|
||||||||||||
|
Retail/shopping centers/strip malls
|
-
|
85,414
|
-
|
85,414
|
||||||||||||
|
Assisted living facilities
|
-
|
854
|
-
|
854
|
||||||||||||
|
Single purpose facilities
|
-
|
233,793
|
-
|
233,793
|
||||||||||||
|
Land
|
-
|
14,040
|
-
|
14,040
|
||||||||||||
|
Multi-family
|
-
|
45,014
|
-
|
45,014
|
||||||||||||
|
One-to-four family construction
|
-
|
-
|
7,180
|
7,180
|
||||||||||||
|
Total
|
$
|
265,145
|
$
|
602,521
|
$
|
16,990
|
$
|
884,656
|
||||||||
|
LOAN MIX
|
March 31, 2022
|
Dec. 31, 2021
|
March 31, 2021
|
|||||||||
|
Commercial and construction
|
(Dollars in thousands)
|
|||||||||||
|
Commercial business
|
$
|
228,091
|
$
|
222,535
|
$
|
265,145
|
||||||
|
Other real estate mortgage
|
654,604
|
631,872
|
602,521
|
|||||||||
|
Real estate construction
|
24,160
|
18,365
|
16,990
|
|||||||||
|
Total commercial and construction
|
906,855
|
872,772
|
884,656
|
|||||||||
|
Consumer
|
||||||||||||
|
Real estate one-to-four family
|
82,006
|
87,821
|
56,405
|
|||||||||
|
Other installment
|
1,547
|
1,630
|
2,174
|
|||||||||
|
Total consumer
|
83,553
|
89,451
|
58,579
|
|||||||||
|
Total loans
|
990,408
|
962,223
|
943,235
|
|||||||||
|
Less:
|
||||||||||||
|
Allowance for loan losses
|
14,523
|
15,173
|
19,178
|
|||||||||
|
Loans receivable, net
|
$
|
975,885
|
$
|
947,050
|
$
|
924,057
|
||||||
|
DETAIL OF NON-PERFORMING ASSETS
|
||||||||||||
|
Southwest
|
||||||||||||
|
Washington
|
Other
|
Total
|
||||||||||
|
March 31, 2022
|
(Dollars in thousands)
|
|||||||||||
|
Commercial business
|
$
|
100
|
$
|
-
|
$
|
100
|
||||||
|
Commercial real estate
|
122
|
-
|
122
|
|||||||||
|
Consumer
|
51
|
-
|
51
|
|||||||||
|
Subtotal
|
273
|
-
|
273
|
|||||||||
|
SBA Government Guaranteed
|
-
|
21,826
|
21,826
|
|||||||||
|
Total non-performing assets
|
$
|
273
|
$
|
21,826
|
$
|
22,099
|
||||||
RVSB Reports Fourth Quarter Fiscal 2022 Results
April 28, 2022
Page 14 |
At or for the three months ended
|
At or for the twelve months ended
|
|||||||||||||||||||
|
SELECTED OPERATING DATA
|
March 31, 2022
|
Dec. 31, 2021
|
March 31, 2021
|
March 31, 2022
|
March 31, 2021
|
|||||||||||||||
|
Efficiency ratio (4)
|
68.01
|
%
|
61.15
|
%
|
68.60
|
%
|
60.82
|
%
|
64.73
|
%
|
||||||||||
|
Coverage ratio (6)
|
117.71
|
%
|
129.96
|
%
|
116.31
|
%
|
129.70
|
%
|
123.90
|
%
|
||||||||||
|
Return on average assets (1)
|
0.97
|
%
|
1.28
|
%
|
0.93
|
%
|
1.31
|
%
|
0.74
|
%
|
||||||||||
|
Return on average equity (1)
|
10.23
|
%
|
13.47
|
%
|
9.00
|
%
|
13.62
|
%
|
6.91
|
%
|
||||||||||
|
Return on average tangible equity (1) (non-GAAP)
|
12.30
|
%
|
16.23
|
%
|
10.97
|
%
|
16.47
|
%
|
8.45
|
%
|
||||||||||
|
NET INTEREST SPREAD
|
||||||||||||||||||||
|
Yield on loans
|
4.43
|
%
|
4.67
|
%
|
4.77
|
%
|
4.72
|
%
|
4.71
|
%
|
||||||||||
|
Yield on investment securities
|
1.63
|
%
|
1.50
|
%
|
1.54
|
%
|
1.54
|
%
|
1.65
|
%
|
||||||||||
|
Total yield on interest-earning assets
|
3.10
|
%
|
3.08
|
%
|
3.46
|
%
|
3.17
|
%
|
3.67
|
%
|
||||||||||
|
Cost of interest-bearing deposits
|
0.11
|
%
|
0.12
|
%
|
0.22
|
%
|
0.14
|
%
|
0.31
|
%
|
||||||||||
|
Cost of FHLB advances and other borrowings
|
2.79
|
%
|
2.62
|
%
|
2.73
|
%
|
2.67
|
%
|
2.00
|
%
|
||||||||||
|
Total cost of interest-bearing liabilities
|
0.19
|
%
|
0.19
|
%
|
0.30
|
%
|
0.22
|
%
|
0.40
|
%
|
||||||||||
|
Spread (7)
|
2.91
|
%
|
2.89
|
%
|
3.16
|
%
|
2.95
|
%
|
3.27
|
%
|
||||||||||
|
Net interest margin
|
2.98
|
%
|
2.96
|
%
|
3.26
|
%
|
3.03
|
%
|
3.41
|
%
|
||||||||||
|
PER SHARE DATA
|
||||||||||||||||||||
|
Basic earnings per share (2)
|
$
|
0.19
|
$
|
0.25
|
$
|
0.15
|
$
|
0.98
|
$
|
0.47
|
||||||||||
|
Diluted earnings per share (3)
|
0.19
|
0.25
|
0.15
|
0.98
|
0.47
|
|||||||||||||||
|
Book value per share (5)
|
7.11
|
7.36
|
6.78
|
7.11
|
6.78
|
|||||||||||||||
|
Tangible book value per share (5) (non-GAAP)
|
5.86
|
6.11
|
5.54
|
5.86
|
5.54
|
|||||||||||||||
|
Market price per share:
|
||||||||||||||||||||
|
High for the period
|
$
|
8.00
|
$
|
8.07
|
$
|
7.58
|
$
|
8.07
|
$
|
7.58
|
||||||||||
|
Low for the period
|
7.30
|
7.19
|
5.12
|
6.47
|
3.82
|
|||||||||||||||
|
Close for period end
|
7.55
|
7.69
|
6.93
|
7.55
|
6.93
|
|||||||||||||||
|
Cash dividends declared per share
|
0.0550
|
0.0550
|
0.0500
|
0.2150
|
0.2000
|
|||||||||||||||
|
Average number of shares outstanding:
|
||||||||||||||||||||
|
Basic (2)
|
22,161,686
|
22,166,130
|
22,346,368
|
22,213,029
|
22,296,195
|
|||||||||||||||
|
Diluted (3)
|
22,172,735
|
22,177,120
|
22,361,730
|
22,224,947
|
22,312,831
|
|||||||||||||||
|
(1)
|
Amounts for the periods shown are annualized.
|
|
(2)
|
Amounts exclude ESOP shares not committed to be released.
|
|
(3)
|
Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
|
|
(4)
|
Non-interest expense divided by net interest income and non-interest income.
|
|
(5)
|
Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.
|
|
(6)
|
Net interest income divided by non-interest expense.
|
|
(7)
|
Yield on interest-earning assets less cost of funds on interest-bearing liabilities.
|
# # #