EX-99.1 2 ex991_223.htm EXHIBIT 99.1 ex991_223.htm
 
 
Exhibit 99.1
   
 
 
Contacts:       Pat Sheaffer or Ron Wysaske,
Riverview Bancorp, Inc. 360-693-6650 
  
 
Riverview Bancorp Earns $1.5 Million in Fiscal Third Quarter;
Significantly Increases Liquidity Through Fed’s Primary Credit Program


Vancouver, WA – January 29, 2009 – Riverview Bancorp, Inc. (NASDAQ GSM: RVSB) today reported net income of $1.5 million, or $0.14 per diluted share, in the third quarter of fiscal 2009 ended December 31, 2008, compared to $2.2 million, or $0.21 per diluted share, in the third quarter of fiscal 2008.

For the first nine months of fiscal 2009, Riverview reported a net loss of $1.9 million, or $0.18 per diluted share, compared to earnings of $7.5 million, or $0.67 per diluted share, for the first nine months of fiscal 2008.  Financial results for fiscal 2009 include a $3.4 million non-cash other than temporary impairment (OTTI) charge on an investment security and a $7.2 million provision for loan losses in the second fiscal quarter ended September 30, 2008.

“Our third quarter results were solid as we continue to strengthen our franchise,” said Pat Sheaffer, Chairman and CEO.  “Loan and deposit growth was strong, with loan balances up 13% year-over-year and 5% over the prior quarter and deposit balances increasing 11% year-over-year and 8% over the prior quarter.  However, we have not been immune to the current economic slowdown in our markets and as such, we expect loan growth to slow in the coming calendar year.  We will continue to focus on reducing controllable expenses throughout the year and stabilizing the net interest margin.”

“We continue to maintain capital levels in excess of the well-capitalized regulatory threshold,” stated Sheaffer.  “In addition to our solid customer base, we have available to us further sources of liquidity, including additional borrowings from the Federal Home Loan Bank, the sale of certain available for sale securities, borrowings at correspondent banks and wholesale markets, including brokered deposits.  In January 2009, we were approved for participation in the Federal Reserve Bank’s primary credit program.  This program, coupled with our other funding sources, will give us available liquidity of $400 million, or 43% of total assets.  With our growing capital and liquidity levels, we are confident that we are well positioned to work through the challenges of this difficult economic period.”

“We have continued to rely on core deposits and our long-standing customer base to grow our deposits,” said Sheaffer.  “Our stable funding sources remain a strength for Riverview, as we have traditionally focused on less volatile sources of deposits.”  Non-brokered deposits have increased $32.1 million, up 5% for the quarter or 20% annualized, since September 30, 2008.  At December 31, 2008, brokered deposits accounted for 5.2% of total deposits.

Riverview’s actual and required minimum capital amounts and ratios are presented in the following table.
 

December 31, 2008
  
Actual
    
Adequately Capitalized
    
Well Capitalized
  
   
Amount
    
Ratio
    
Amount
    
Ratio
    
Amount
    
Ratio
  
                                     
Total Capital
                                    
   (To Risk-Weighted Assets)
   $ 89,454       10.73 %   $ 66,677       8.00 %   $ 83,347       10.00 %
Tier 1 Capital
                                                
   (To Risk-Weighted Assets)
     79,033       9.48       33,339       4.00       50,008       6.00  
Tier 1 Capital
                                                
   (To Adjusted Tangible Assets)
     79,033       8.82       35,828       4.00       44,785       5.00  

 
 
RVSB Third Quarter Fiscal 2009 Results
January 29, 2009
Page 2
 
Credit Quality

“We continue to devote a considerable amount of resources to monitoring credit quality,” said Dave Dahlstrom, EVP and Chief Credit Officer.  “We have recently allocated five new officers to ensure problem assets are managed in a timely manner.  We have also added additional reporting on problem loans, including comprehensive staff and management meetings and we are conducting even more intensive monitoring and analysis on our existing portfolio to help proactively identify loans before they become a problem asset.  This includes, among other things, performing detailed breakdowns of our construction and land development loans by geographic region and classification.  In addition, although we have always maintained a conservative philosophy regarding underwriting, for these turbulent economic times we have even further tightened our underwriting criteria across all loan types such as requiring lower loan to values and higher debt service coverage ratios.”

Non-performing assets increased $8.6 million to $31.4 million, or 3.38% of total assets, at December 31, 2008, compared to $22.8 million, or 2.54% of total assets, three months earlier.  Total non-performing loans consist of forty-four loans and thirty-six lending relationships, which includes fourteen land-acquisition and development loans totaling $16.9 million, eight construction loans totaling $3.5 million, three commercial loans totaling $1.7 million, fourteen residential real estate loans totaling $2.0 million and five other real estate mortgage loans totaling $4.3 million. All of the loans are to borrowers located in Oregon and Washington, with the exception of one land acquisition and development loan totaling $1.4 million to a long-time Washington-based customer who has property located in Southern California.  Riverview also had $3.0 million in other real estate owned (OREO) at the end of December 2008 compared to $699,000 at September 30, 2008.  Included in OREO are sixteen properties limited to seven lending relationships.  These properties consist of fourteen single-family homes and two residential lot loans.  All properties are located in the Company’s primary market area except for one single family home located on the southern Washington coast.

Total classified and non-performing loans, including OREO, were $37.8 million at December 31, 2008 compared to $37.3 million at September 30, 2008 and $10.5 million at December 31, 2007.  “We remain focused on reducing the level of our classified and non-performing assets as we continue to actively work with our borrowers to help mitigate losses,” added Dahlstrom.  Residential land development and construction loans accounted for $25.9 million of these balances at December 31, 2008, compared to $26.8 million at September 30, 2008.  Multi-family and commercial loans accounted for $4.2 million and $2.6 million, respectively, of the remaining balance at December 31, 2008, compared to $4.2 million and $3.7 million, respectively, at September 30, 2008.

The provision for loan losses was $1.2 million for the third quarter, compared to $7.2 million during the second quarter and $650,000 in the third quarter a year ago.  For the first nine months of fiscal 2009 the provision for loan losses totaled $11.2 million, compared to $1.1 million in the same period a year ago.  “We increased our provision for loan losses again this quarter from prior year amounts not only to account for higher levels of nonperforming loans compared to a year ago, but also as part of our prudent system to build up our reserves during these very uncertain economic times,” said Dahlstrom.

The allowance for loan losses, including unfunded loan commitments of $260,000, was $16.5 million, or 2.01% of total loans at December 31, 2008 compared to $16.4 million, or 2.08% of total loans at September 30, 2008 and $9.9 million, or 1.37% of total loans, at December 31, 2007.  Net loan charge-offs were $1.1 million for the quarter ended December 31, 2008, compared to $4.2 million for the previous linked quarter and $207,000 for the fiscal third quarter a year ago.

OTTI Charge during 2Q09

During the second quarter of fiscal 2009 Riverview recorded a $3.4 million non-cash OTTI charge on an investment security.  The investment is a trust preferred pooled security issued by other bank holding companies, is classified as available for sale and has a par value of $5.0 million.  Although management believes it is possible that all principal and interest will be received, and the Company has the ability and intention to continue to hold the security until there is a recovery in fair value, general market concerns over these and similar types of securities, as well as a lowering of the investment rating for this specific security, caused the fair value to decline severely enough to warrant an OTTI charge.  Consequently, management chose to recognize a $3.4 million OTTI charge during the second quarter of fiscal 2009 bringing the value of the security to $1.6 million.  Management does not believe that the recognition of this impairment charge has any other implications for the Company’s business fundamentals or its outlook.
 
 
RVSB Third Quarter Fiscal 2009 Results
January 29, 2009
Page 3
 
Riverview does not have sub-prime residential real estate loans in its loan portfolio and does not believe that it has any direct exposure to sub-prime lending in its Mortgage Backed Securities portfolio.  Other than the trust preferred pooled security discussed above, the Company does not have any other investment securities of concern.  Mortgage backed securities totaled $5.0 million, or 0.53% of total assets at December 31, 2008.  Riverview does not have any exposure to Government Sponsored Enterprise (GSE) securities in its investment portfolio.

Operating Results

“The 175 basis point drop in the Federal Funds rate during the quarter, as well as the reversal of interest on loans placed on non-accrual status during the quarter reduced our net interest margin,” said Ron Wysaske, President and COO.  “We expect our margin to improve as our deposit pricing catches up with the recent interest rate cuts.” The reversal of interest on loans placed on non-accrual status during the quarter accounted for a twelve basis point decrease in the quarterly net interest margin.  For the third quarter of fiscal 2009, the net interest margin was 3.95% compared to 4.18% in the previous linked quarter and 4.71% in the third quarter a year ago.  For the first nine months of fiscal 2009 the net interest margin was 4.11% compared to 4.75% in the first nine months of fiscal 2008.

Third quarter net interest income was $8.4 million, compared to $8.9 million in the third quarter a year ago.  For the first nine months of fiscal 2009, net interest income was $25.4 million compared to $26.4 million for the same period in fiscal 2008.

Non-interest income was $1.9 million for the three months ended December 31, 2008, compared to $2.2 million for the third quarter a year ago.  “The decrease in third quarter non-interest income compared to the same period a year ago is due to a $148,000 decrease in mortgage broker fees as a result of the slowing real estate market and a $77,000 decrease in asset management fees,” said Wysaske.  For the first nine months of fiscal 2009, total non-interest income, excluding the $3.4 million OTTI charge during 2Q09, was $6.2 million, compared to $6.7 million for the first nine months of fiscal 2008.

“We have continued to focus on managing costs and as a result we have been able to keep our operating expenses in line in fiscal 2009, even reducing them from year ago levels,” said Wysaske.  Non-interest expense improved to $6.9 million in the third quarter of fiscal 2009, compared to $7.0 million in the third quarter of fiscal 2008.  Decreases in salaries and employee benefits of $257,000 were partially offset by increased FDIC insurance premiums of $110,000.  Riverview’s efficiency ratio was 67.23% for the quarter ended December 31, 2008, compared to 63.69% for the same period in the prior year.

Balance Sheet Review

“Although third quarter loan growth was strong, up 5% for the quarter or 18% annualized,” said Dahlstrom.  “We are seeing the loan pipeline start to decrease from the robust pace of the last few years.  We expect to see a decline in loan demand and loan originations in the near term, reflecting the slowdown in the economy and tighter underwriting criteria, with our focus of keeping the portfolio high quality and well-diversified.”  Net loans increased 13% to $805 million at December 31, 2008, compared to $716 million a year ago.  Commercial and commercial real estate loans account for 73% of the total loan portfolio and construction loans account for 16% of the total loan portfolio at December 31, 2008.

“We continue to reduce our exposure to real estate construction and we reduced our one-to-four family construction portfolio to $76 million at quarter-end from $84 million three months earlier and $101 million at the end of December 2007,” added Dahlstrom. “We should continue to see reductions in our construction portfolio as we focus on other lending opportunities.”

Deposits grew 8% in the last three months, increasing $52 million to $690 million at the end of December 2008, compared to $637 million at September 30, 2008.  Transaction accounts represent 55% of all deposits with non-interest checking balances representing 12% of total deposits and interest bearing checking balances representing 15% of total
 
 
RVSB Third Quarter Fiscal 2009 Results
January 29, 2009
Page 4
 
deposits.  Brokered deposits increased $20.2 million since September 30, 2008, to $35.8 million, which represents 5.2% of total deposits.

Shareholders’ Equity

Shareholders’ equity was $89.6 million at December 31, 2008, compared to $92.4 million a year ago.  Book value per share was $8.21 at the end of December 2008, compared to $8.46 a year earlier and tangible book value per share was $5.80 at quarter-end, compared to $6.04 a year earlier.  Tangible shareholder equity was 6.82% of its total assets at December 31, 2008, compared to 7.80% a year earlier.

As previously reported, the Board of Directors of Riverview elected to suspend the dividend for the current quarter.  “We believe this was a prudent step to preserve capital given the current uncertain and volatile market conditions,” said Sheaffer.  “We continue to exceed the regulatory benchmark for a ‘well-capitalized’ financial institution.”  At December 31, 2008, Riverview’s total risk-based capital ratio was 10.73%.  “We plan on continuing to carefully manage our capital with the goal of increasing total capital,” added Sheaffer.  “All capital management options are being analyzed, including an evaluation of the Bank’s balance sheet structure and the use of approximately $5 million of cash available at the holding company which could be invested in the Bank.  We believe taking these steps will position Riverview to take advantage of strategic growth opportunities as they present themselves.”

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 $929 million, it is the parent company of the 85 year-old Riverview Community Bank, as well as Riverview Mortgage and Riverview Asset Management Corp.  There are 18 branches, including ten in fast growing Clark County, three in the Portland metropolitan area and four lending centers.  The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail customers.

Financial measures that exclude OTTI charges are non-GAAP measures. To provide investors with a broader understanding of earnings, the Company provided non-GAAP financial measures for non-interest income and the efficiency ratio, along with the GAAP measure of non-interest income and the efficiency ratio, because OTTI charges are not likely to occur in normal operations.  Management believes that these non-GAAP financial measures are useful to investors because they allow for greater transparency, facilitate comparisons to prior periods and competitor’s results and assist in forecasting performance for future periods because they exclude items we believe to be outside the normal operating results.

 
Statements concerning future performance, developments or events, concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements, which are subject to a number of risks and uncertainties that might cause actual results to differ materially from stated objectives.  These factors include but are not limited to:  RVSB’s ability to acquire shares according to internal repurchase guidelines, regional economic conditions and the company’s ability to efficiently manage expenses.  Additional factors that could cause actual results to differ materially are disclosed in Riverview Bancorp's recent filings with the SEC, including but not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
 
 
RVSB Third Quarter Fiscal 2009 Results
January 29, 2009
Page 5

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
              
Consolidated Balance Sheets
              
               
(In thousands, except share data)  (Unaudited)
Dec. 31, 2008
  
Sept. 30, 2008
  
Dec. 31, 2007
  
Mar. 31, 2008
ASSETS
              
               
Cash (including interest-earning accounts of $6,901, $11,786
              
  $14,415 and $14,238)
 $       23,857
  
 $       26,214
  
 $       32,998
  
 $       36,439
Loans held for sale
               834
  
               773
  
               395
  
                    -
Investment securities held to maturity, at amortized cost
              
  (fair value of $530, $536, none and none)
528
  
536
  
                    -
  
                    -
Investment securities available for sale, at fair value
              
  (amortized cost of $8,853, $9,371, $7,826 and $7,825)
8,981
  
9,473
  
7,762
  
7,487
Mortgage-backed securities held to maturity, at amortized
              
  cost (fair value of $633, $701, $956 and $892)
635
  
698
  
950
  
885
Mortgage-backed securities available for sale, at fair value
              
  (amortized cost of $4,306, $4,619, $5,701 and $5,331)
4,339
  
4,567
  
5,676
  
5,338
Loans receivable (net of allowance for loan losses of $16,236,
              
   $16,124, $9,505 and $10,687)
805,488
  
770,391
  
715,836
  
756,538
Real estate and other pers. property owned
2,967
  
699
  
74
  
494
Prepaid expenses and other assets
5,260
  
6,102
  
3,513
  
2,679
Accrued interest receivable
3,494
  
3,280
  
3,740
  
3,436
Federal Home Loan Bank stock, at cost
7,350
  
7,350
  
7,350
  
7,350
Premises and equipment, net
19,906
  
20,281
  
21,109
  
21,026
Deferred income taxes, net
4,404
  
4,442
  
4,065
  
4,571
Mortgage servicing rights, net
282
  
271
  
331
  
302
Goodwill
25,572
  
25,572
  
25,572
  
25,572
Core deposit intangible, net
457
  
488
  
593
  
556
Bank owned life insurance
14,614
  
14,470
  
14,033
  
14,176
               
TOTAL ASSETS
 $     928,968
  
 $     895,607
  
 $     843,997
  
 $     886,849
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
              
               
LIABILITIES:
              
Deposit accounts
 $     689,827
  
 $     637,490
  
 $     622,610
  
 $     667,000
Accrued expenses and other liabilities
            6,906
  
            7,675
  
            9,483
  
            8,654
Advance payments by borrowers for taxes and insurance
               153
  
               375
  
               166
  
               393
Federal Home Loan Bank advances
        117,100
  
        136,660
  
          94,000
  
          92,850
Junior subordinated debentures
          22,681
  
          22,681
  
          22,681
  
          22,681
Capital lease obligation
            2,659
  
            2,668
  
            2,695
  
            2,686
Total liabilities
        839,326
  
        807,549
  
        751,635
  
        794,264
               
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, 2008 – 10,923,773 issued and outstanding;
               109
  
               109
  
               109
  
               109
 September 30, 2008 – 10,923,773 issued and outstanding;
              
 December 31, 2007 – 10,911,773 issued and outstanding;
              
 March 31, 2008 – 10,913,773 issued and outstanding
              
Additional paid-in capital
          46,856
  
          46,846
  
          46,676
  
          46,799
Retained earnings
          43,499
  
          42,024
  
          46,667
  
          46,871
Unearned shares issued to employee stock ownership trust
             (928)
  
             (954)
  
          (1,031)
  
             (976)
Accumulated other comprehensive income (loss)
               106
  
                 33
  
               (59)
  
             (218)
Total shareholders’ equity
          89,642
  
          88,058
  
          92,362
  
          92,585
               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 $     928,968
  
 $     895,607
  
 $     843,997
  
 $     886,849
               


RVSB Third Quarter Fiscal 2009 Results
January 29, 2009
Page 6

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
          
Consolidated Statements of Operations
            
 
Three Months Ended
  
Nine Months Ended
(In thousands, except share data)   (Unaudited)
Dec. 31, 2008
Sept. 30, 2008
Dec. 31, 2007
Dec. 31, 2008
Dec. 31, 2007
INTEREST INCOME:
            
Interest and fees on loans receivable
 $             12,939
 $             13,425
 $             14,950
  
 $           39,688
 $           44,461
Interest on investment securities-taxable
                     130
                     121
                       91
  
                   307
                   403
Interest on investment securities-non taxable
                       36
                       37
                       35
  
                   105
                   111
Interest on mortgage-backed securities
                       51
                       55
                       78
  
                   167
                   254
Other interest and dividends
                       16
                       91
                     182
  
                   200
                   845
    Total interest income
                13,172
                13,729
                15,336
  
              40,467
              46,074
             
INTEREST EXPENSE:
            
Interest on deposits
                  3,942
                  3,800
                  5,340
  
              11,848
              17,563
Interest on borrowings
                     859
                  1,287
                  1,138
  
                3,239
                2,131
    Total interest expense
                  4,801
                  5,087
                  6,478
  
              15,087
              19,694
    Net interest income
                  8,371
                  8,642
                  8,858
  
              25,380
              26,380
    Less provision for loan losses
                  1,200
                  7,200
                     650
  
              11,150
                1,100
             
  Net interest income after provision for loan losses
                  7,171
                  1,442
                  8,208
  
              14,230
              25,280
             
NON-INTEREST INCOME:
            
  Fees and service charges
                  1,104
                  1,219
                  1,269
  
                3,533
                4,078
  Asset management fees
                     468
                     547
                     545
  
                1,639
                1,606
  Gain on sale of loans held for sale
                     103
                       81
                       93
  
                   236
                   276
  Impairment of investment security
                          -
                (3,414)
                          -
  
               (3,414)
                        -
  Loan servicing income
                       38
                       33
                       44
  
                     99
                   110
  Bank owned life insurance income
                     144
                     148
                     140
  
                   438
                   419
  Other
                       45
                       73
                       59
  
                   240
                   179
    Total non-interest income
                  1,902
                (1,313)
                  2,150
  
                2,771
                6,668
             
NON-INTEREST EXPENSE:
            
Salaries and employee benefits
                  3,988
                  3,740
                  4,245
  
              11,612
              12,121
Occupancy and depreciation
                  1,241
                  1,251
                  1,304
  
                3,725
                3,850
Data processing
                     215
                     208
                     224
  
                   622
                   600
Amortization of core deposit intangible
                       31
                       33
                       38
  
                     99
                   118
Advertising and marketing expense
                     174
                     255
                     217
  
                   610
                   869
FDIC insurance premium
                     130
                     157
                       20
  
                   401
                     58
State and local taxes
                     164
                     169
                     182
  
                   508
                   531
Telecommunications
                     113
                     114
                       96
  
                   351
                   292
Professional fees
                     280
                     248
                     216
  
                   730
                   611
Other
                     571
                     533
                     469
  
                1,624
                1,573
Total non-interest expense
                  6,907
                  6,708
                  7,011
  
              20,282
              20,623
             
INCOME (LOSS) BEFORE INCOME TAXES
                  2,166
                (6,579)
                  3,347
  
               (3,281)
              11,325
PROVISION (CREDIT) FOR INCOME TAXES
                     691
                (2,381)
                  1,134
  
               (1,351)
                3,843
NET INCOME (LOSS)
 $               1,475
 $             (4,198)
 $               2,213
  
 $            (1,930)
 $             7,482
             
Earnings (loss) per common share:
            
Basic
 $                 0.14
 $               (0.39)
 $                 0.21
  
 $              (0.18)
 $               0.68
Diluted
 $                 0.14
 $               (0.39)
 $                 0.21
  
 $              (0.18)
 $               0.67
Weighted average number of shares outstanding:
            
Basic
10,699,263
10,692,838
10,684,780
  
10,690,077
10,992,242
Diluted
10,699,263
10,692,838
10,773,107
  
10,690,077
11,106,944
             

 
 
 
RVSB Third Quarter Fiscal 2009 Results
January 29, 2009
Page 7

(Dollars in thousands)
                  
 
At or for the three months ended
  
   At or for the nine months ended
AVERAGE BALANCES
Dec. 31, 2008
Sept. 30, 2008
Dec. 31, 2007
Dec. 31, 2008
Dec. 31, 2007
Average interest–earning assets
 $     841,638
  
$822,468
  
$748,105
  
 $       821,545
  
 $       738,053
Average interest-bearing liabilities
730,974
  
711,641
  
641,655
  
713,784
  
          628,104
Net average earning assets
110,664
  
110,827
  
106,450
  
107,761
  
          109,949
Average loans
809,447
  
784,227
  
711,352
  
786,977
  
          689,588
Average deposits
654,867
  
631,353
  
644,108
  
642,633
  
          664,498
Average equity
90,477
  
94,303
  
94,360
  
93,258
  
            97,646
Average tangible equity
64,153
  
67,940
  
67,842
  
66,893
  
            71,081
                   
                   
ASSET QUALITY
Dec. 31, 2008
Sept. 30, 2008
Dec. 31, 2007
      
Non-performing loans
 $       28,426
  
 $         22,071
  
 $           1,068
        
Non-performing loans to total loans
3.46%
  
2.80%
  
0.15%
        
Real estate/reposessed assets owned
 $         2,967
  
 $              699
  
 $                74
        
Non-performing assets
          31,393
  
            22,770
  
              1,142
        
Non-performing assets to total assets
3.38%
  
2.54%
  
0.14%
        
Net loan charge-offs in the quarter
 $         1,088
  
 $           4,183
  
 $              207
        
Net charge-offs/average net loans
0.53%
  
2.12%
  
0.12%
        
                   
Allowance for loan losses
 $       16,236
  
 $         16,124
  
 $           9,505
        
Allowance for loan losses and unfunded loan
                
  commitments
          16,496
  
            16,410
  
              9,912
        
Average interest-earning assets to average
                
  interest-bearing liabilities
115.14%
  
115.57%
  
116.59%
        
Allowance for loan losses to
                  
  non-performing loans
57.12%
  
73.06%
  
889.98%
        
Allowance for loan losses to total loans
1.97%
  
2.05%
  
1.31%
        
Allowance for loan losses and
                  
   unfunded loan commitments to total loans
2.01%
  
2.08%
  
1.37%
        
Shareholders’ equity to assets
9.65%
  
9.83%
  
10.94%
        


(Dollars in thousands)
                        
                         
DEPOSIT MIX
  
Dec. 31, 2008
    
Sept. 30, 2008
    
Dec. 31, 2007
    
Mar. 31, 2008
  
                         
Interest checking
   $ 100,969     $ 80,266     $ 112,062     $ 102,489  
Regular savings
     26,014       27,528       26,216       27,401  
Money market deposit accounts
     169,261       166,834       210,084       189,309  
Non-interest checking
     85,320       83,555       80,710       82,121  
Certificates of deposit
     308,263       279,307       193,538       265,680  
Total deposits
   $ 689,827     $ 637,490     $ 622,610     $ 667,000  
                                 
                                 

 
 
 
RVSB Third Quarter Fiscal 2009 Results
January 29, 2009
Page 8

(Dollars in thousands)
                        
                         
LOAN MIX
  
Dec. 31, 2008
    
Sept. 30, 2008
    
Dec. 31, 2007
    
Mar. 31, 2008
  
Commercial and construction
                        
  Commercial
   $ 133,616     $ 123,569     $ 99,259     $ 109,585  
  Commercial real estate mortgage
     465,413       442,482       391,878       429,422  
  Real estate construction
     133,637       134,930       150,951       148,631  
    Total commercial and construction
     732,666       700,981       642,088       687,638  
Consumer
                                
  Real estate one-to-four family
     85,579       82,062       78,479       75,922  
  Other installment
     3,479       3,472       4,774       3,665  
    Total consumer
     89,058       85,534       83,253       79,587  
                                 
Total loans
     821,724       786,515       725,341       767,225  
                                 
Less:
                                
  Allowance for loan losses
     16,236       16,124       9,505       10,687  
  Loans receivable, net
   $ 805,488     $ 770,391     $ 715,836     $ 756,538  
                                 
                                 
 
               
COMPOSITION OF COMMERCIAL AND CONSTRUCTION  LOAN TYPES BASED ON LOAN PURPOSE
               
   
Commercial
  
Commercial
      
   
Real Estate
Real Estate
& Construction
      
 
Commercial
Mortgage
Construction
Total
      
December 31, 2008
(Dollars in thousands)
      
Commercial
 $  133,616
 $                     -
 $              -
 $          133,616
      
Commercial construction
                 -
                        -
57,486
               57,486
      
Office buildings
                 -
               89,112
                 -
               89,112
      
Warehouse/industrial
                 -
               43,424
                 -
               43,424
      
Retail/shopping centers/strip malls
                 -
               83,250
                 -
               83,250
      
Assisted living facilities
                 -
               30,472
                 -
               30,472
      
Single purpose facilities
                 -
               89,586
                 -
               89,586
      
Land
                 -
             100,394
                 -
             100,394
      
Multi-family
                 -
               29,175
                 -
               29,175
      
One-to-four family
                 -
                        -
       76,151
               76,151
      
  Total
 $  133,616
 $          465,413
 $  133,637
 $          732,666
      
               
March 31, 2008
              
Commercial
 $  109,585
 $                     -
 $              -
 $          109,585
      
Commercial construction
                 -
                        -
       55,277
               55,277
      
Office buildings
                 -
               88,106
                 -
               88,106
      
Warehouse/industrial
                 -
               39,903
                 -
               39,903
      
Retail/shopping centers/strip malls
                 -
               70,510
                 -
               70,510
      
Assisted living facilities
                 -
               28,072
                 -
               28,072
      
Single purpose facilities
                 -
               65,756
                 -
               65,756
      
Land
                 -
             108,030
                 -
             108,030
      
Multi-family
                 -
               29,045
                 -
               29,045
      
One-to-four family
                 -
                        -
       93,354
               93,354
      
  Total
 $  109,585
 $          429,422
 $  148,631
 $          687,638
      
               

 
 
 
RVSB Third Quarter Fiscal 2009 Results
January 29, 2009
Page 9

 
At or for the three months ended
  
At or for the nine months ended
SELECTED OPERATING DATA
Dec. 31, 2008
  
Sept. 30, 2008
  
Dec. 31, 2007
  
Dec. 31, 2008
  
Dec. 31, 2007
      (Dollars in thousands, except share data)
                  
Efficiency ratio (4)
67.23%
  
91.53%
  
63.69%
  
72.05%
  
62.40%
Coverage ratio (6)
121.20%
  
128.83%
  
126.34%
  
125.14%
  
127.92%
Return on average assets (1)
0.64%
  
-1.86%
  
1.06%
  
-0.29%
  
1.21%
Return on average equity (1)
6.47%
  
-17.66%
  
9.30%
  
-2.75%
  
10.17%
Average rate earned on interest-earned assets
6.22%
  
6.63%
  
8.14%
  
6.55%
  
8.30%
Average rate paid on interest-bearing liabilities
2.61%
  
2.84%
  
4.01%
  
2.81%
  
4.16%
Spread (7)
3.61%
  
3.79%
  
4.13%
  
3.74%
  
4.14%
Net interest margin
3.95%
  
4.18%
  
4.71%
  
4.11%
  
4.75%
                   
PER SHARE DATA
                  
Basic earnings per share (2)
 $              0.14
  
 $             (0.39)
  
 $              0.21
  
 $             (0.18)
  
 $              0.68
Diluted earnings per share (3)
                 0.14
  
                (0.39)
  
                 0.21
  
                (0.18)
  
                 0.67
Book value per share (5)
                 8.21
  
                 8.06
  
                 8.46
  
                 8.21
  
                 8.46
Tangible book value per share (5)
                 5.80
  
                 5.65
  
                 6.04
  
                 5.80
  
                 6.04
Market price per share:
                  
  High for the period
 $              6.10
  
 $              7.38
  
 $            15.36
  
 $              9.79
  
 $            16.28
  Low for the period
                 2.25
  
                 4.52
  
               11.55
  
                 2.25
  
               11.55
  Close for period end
                 2.25
  
                 5.96
  
               11.55
  
                 2.25
  
               11.55
Cash dividends declared per share
                     -
  
               0.045
  
               0.110
  
               0.135
  
               0.330
                   
Average number of shares outstanding:
                  
  Basic (2)
10,699,263
  
10,692,838
  
10,684,780
  
10,690,077
  
10,992,242
  Diluted (3)
10,699,263
  
10,692,838
  
10,773,107
  
10,690,077
  
11,106,944

(1)  
Amounts are annualized.
(2)  
Amounts calculated exclude ESOP shares not committed to be released.
(3)  
Amounts calculated 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 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.

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