Washington
|
000-22957
|
91-1838969
|
(State or other jurisdiction
of incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
900 Washington Street, Suite 900, Vancouver, Washington
|
98660
|
(Address of principal executive offices)
|
(Zip Code)
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.
|
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
RIVERVIEW BANCORP, INC. | |
Date: July 19, 2011 |
/s/Kevin J. Lycklama
|
Kevin J. Lycklama
|
|
Chief Financial Officer
(Principal Financial Officer)
|
·
|
Income & Earnings: Earnings improved on a linked-quarter basis. Net income was $1.1 million, or $0.05 per diluted share, an increase from $854,000, or $0.04 per diluted share, reported in the fourth fiscal quarter ended March 31, 2011. This marks the fifth consecutive profitable quarter.
|
·
|
Balance Sheet Growth: Total deposits increased $26.3 million during the quarter to $742.9 million led by growth in customer branch deposits. Total checking account balances increased $39.3 million, or 21.9%, from March 31, 2011. The Bank continues to have no wholesale brokered deposits. Net loans increased $5.3 million during the quarter as loan demand begins to return to our local markets. Increases were concentrated in single-family and multi-family residential mortgages.
|
·
|
Net Interest Margin (NIM): NIM during the first quarter remained strong at 4.66%.
|
·
|
Credit Quality: Nonperforming loans (NPLs) were $13.1 million, or 1.89% of total loans. The volume of new nonperforming loans has continued to decrease compared to levels experienced during the past fiscal year. In the first quarter, $1.9 million of loans were removed from non-accrual status, while $2.7 million of new loans were added. Net charge offs totaled $459,000 in the first quarter.
|
·
|
Real Estate Owned (REO): REO decreased to $27.2 million from $27.6 million at March 31, 2011. The decline is primarily due to the sale of existing properties and the slowdown of new problem credits.
|
·
|
Cost of Deposits: Sixteenth consecutive quarter of reduction in cost of deposits. Total deposit costs decreased by eight basis points from the prior quarter and 40 basis points from the first quarter a year ago.
|
·
|
Capital/Liquidity: Increased total risk-based capital ratio to 14.76% and remains very well capitalized. Liquidity remains robust with no outstanding borrowings.
|
·
|
Company Growth: Announced plans to open a new branch in Gresham, Oregon.
|
June 30,
|
March 31,
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2011
|
2011
|
2010
|
|||||||||
Shareholders’ equity
|
$ | 108,205 | $ | 106,944 | $ | 85,718 | ||||||
Goodwill
|
25,572 | 25,572 | 25,572 | |||||||||
Other intangible assets, net
|
561 | 615 | 781 | |||||||||
Tangible shareholders’ equity
|
$ | 82,072 | $ | 80,757 | $ | 59,365 | ||||||
Total assets
|
$ | 886,225 | $ | 859,263 | $ | 863,424 | ||||||
Goodwill
|
25,572 | 25,572 | 25,572 | |||||||||
Other intangible assets, net
|
561 | 615 | 781 | |||||||||
Tangible assets
|
$ | 860,092 | $ | 833,076 | $ | 837,071 |
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
|
||||||||||||
Consolidated Balance Sheets
|
||||||||||||
(In thousands, except share data) (Unaudited)
|
June 30, 2011
|
March 31, 2011
|
June 30, 2010
|
|||||||||
ASSETS
|
||||||||||||
Cash (including interest-earning accounts of $58,044, $37,349
|
$ | 70,010 | $ | 51,752 | $ | 53,244 | ||||||
and $41,435)
|
||||||||||||
Certificates of deposit held for investment
|
18,875 | 14,900 | - | |||||||||
Loans held for sale
|
190 | 173 | 667 | |||||||||
Investment securities held to maturity, at amortized cost
|
499 | 506 | 511 | |||||||||
Investment securities available for sale, at fair value
|
6,506 | 6,320 | 6,727 | |||||||||
Mortgage-backed securities held to maturity, at amortized
|
185 | 190 | 203 | |||||||||
Mortgage-backed securities available for sale, at fair value
|
1,545 | 1,777 | 2,554 | |||||||||
Loans receivable (net of allowance for loan losses of $15,459,
|
||||||||||||
$14,968 and $19,565)
|
677,910 | 672,609 | 697,795 | |||||||||
Real estate owned
|
27,213 | 27,590 | 14,908 | |||||||||
Prepaid expenses and other assets
|
5,973 | 5,887 | 7,560 | |||||||||
Accrued interest receivable
|
2,494 | 2,523 | 2,653 | |||||||||
Federal Home Loan Bank stock, at cost
|
7,350 | 7,350 | 7,350 | |||||||||
Premises and equipment, net
|
15,864 | 16,100 | 16,201 | |||||||||
Deferred income taxes, net
|
9,375 | 9,447 | 11,197 | |||||||||
Mortgage servicing rights, net
|
364 | 396 | 493 | |||||||||
Goodwill
|
25,572 | 25,572 | 25,572 | |||||||||
Core deposit intangible, net
|
197 | 219 | 288 | |||||||||
Bank owned life insurance
|
16,103 | 15,952 | 15,501 | |||||||||
TOTAL ASSETS
|
$ | 886,225 | $ | 859,263 | $ | 863,424 | ||||||
LIABILITIES AND EQUITY
|
||||||||||||
LIABILITIES:
|
||||||||||||
Deposit accounts
|
$ | 742,859 | $ | 716,530 | $ | 715,573 | ||||||
Accrued expenses and other liabilities
|
9,037 | 9,396 | 8,224 | |||||||||
Advance payments by borrowers for taxes and insurance
|
406 | 680 | 194 | |||||||||
Federal Home Loan Bank advances
|
- | - | 28,000 | |||||||||
Junior subordinated debentures
|
22,681 | 22,681 | 22,681 | |||||||||
Capital lease obligation
|
2,556 | 2,567 | 2,599 | |||||||||
Total liabilities
|
777,539 | 751,854 | 777,271 | |||||||||
EQUITY:
|
||||||||||||
Shareholders' equity
|
||||||||||||
Serial preferred stock, $.01 par value; 250,000 authorized,
|
||||||||||||
issued and outstanding, none
|
- | - | - | |||||||||
Common stock, $.01 par value; 50,000,000 authorized,
|
||||||||||||
June 30, 2011 – 22,471,890 issued and outstanding;
|
225 | 225 | 109 | |||||||||
March 31, 2011 – 22,471,890 issued and outstanding;
|
||||||||||||
June 30, 2010 – 10,923,773 issued and outstanding;
|
||||||||||||
Additional paid-in capital
|
65,634 | 65,639 | 46,980 | |||||||||
Retained earnings
|
44,294 | 43,193 | 40,643 | |||||||||
Unearned shares issued to employee stock ownership trust
|
(670 | ) | (696 | ) | (773 | ) | ||||||
Accumulated other comprehensive loss
|
(1,278 | ) | (1,417 | ) | (1,241 | ) | ||||||
Total shareholders’ equity
|
108,205 | 106,944 | 85,718 | |||||||||
Noncontrolling interest
|
481 | 465 | 435 | |||||||||
Total equity
|
108,686 | 107,409 | 86,153 | |||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 886,225 | $ | 859,263 | $ | 863,424 | ||||||
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
|
||||||||||||
Consolidated Statements of Income
|
||||||||||||
Three Months Ended
|
||||||||||||
(In thousands, except share data) (Unaudited)
|
June 30, 2011
|
March 31, 2011
|
June 30, 2010
|
|||||||||
INTEREST INCOME:
|
||||||||||||
Interest and fees on loans receivable
|
$ | 10,280 | $ | 10,239 | $ | 11,193 | ||||||
Interest on investment securities-taxable
|
45 | 49 | 55 | |||||||||
Interest on investment securities-non taxable
|
12 | 12 | 15 | |||||||||
Interest on mortgage-backed securities
|
16 | 18 | 26 | |||||||||
Other interest and dividends
|
75 | 70 | 15 | |||||||||
Total interest income
|
10,428 | 10,388 | 11,304 | |||||||||
INTEREST EXPENSE:
|
||||||||||||
Interest on deposits
|
1,230 | 1,337 | 1,901 | |||||||||
Interest on borrowings
|
368 | 364 | 385 | |||||||||
Total interest expense
|
1,598 | 1,701 | 2,286 | |||||||||
Net interest income
|
8,830 | 8,687 | 9,018 | |||||||||
Less provision for loan losses
|
950 | 500 | 1,300 | |||||||||
Net interest income after provision for loan losses
|
7,880 | 8,187 | 7,718 | |||||||||
NON-INTEREST INCOME:
|
||||||||||||
Fees and service charges
|
1,042 | 916 | 1,099 | |||||||||
Asset management fees
|
625 | 546 | 521 | |||||||||
Gain on sale of loans held for sale
|
23 | 54 | 119 | |||||||||
Bank owned life insurance income
|
151 | 150 | 150 | |||||||||
Other
|
63 | 73 | 347 | |||||||||
Total non-interest income
|
1,904 | 1,739 | 2,236 | |||||||||
NON-INTEREST EXPENSE:
|
||||||||||||
Salaries and employee benefits
|
4,511 | 4,601 | 3,940 | |||||||||
Occupancy and depreciation
|
1,163 | 1,180 | 1,141 | |||||||||
Data processing
|
288 | 293 | 252 | |||||||||
Amortization of core deposit intangible
|
22 | 24 | 26 | |||||||||
Advertising and marketing expense
|
245 | 172 | 135 | |||||||||
FDIC insurance premium
|
273 | 400 | 421 | |||||||||
State and local taxes
|
179 | 136 | 171 | |||||||||
Telecommunications
|
107 | 111 | 107 | |||||||||
Professional fees
|
339 | 352 | 326 | |||||||||
Real estate owned expenses
|
430 | 634 | 166 | |||||||||
Other
|
600 | 663 | 580 | |||||||||
Total non-interest expense
|
8,157 | 8,566 | 7,265 | |||||||||
INCOME BEFORE INCOME TAXES
|
1,627 | 1,360 | 2,689 | |||||||||
PROVISION FOR INCOME TAXES
|
526 | 506 | 924 | |||||||||
NET INCOME
|
$ | 1,101 | $ | 854 | $ | 1,765 | ||||||
Earnings per common share:
|
||||||||||||
Basic
|
$ | 0.05 | $ | 0.04 | $ | 0.16 | ||||||
Diluted
|
$ | 0.05 | $ | 0.04 | $ | 0.16 | ||||||
Weighted average number of shares outstanding:
|
||||||||||||
Basic
|
22,308,696 | 22,302,538 | 10,735,946 | |||||||||
Diluted
|
22,309,353 | 22,302,538 | 10,735,946 |
(Dollars in thousands)
|
At or for the three months ended
|
|||||||||||
June 30, 2011
|
March 31, 2011
|
June 30, 2010
|
||||||||||
AVERAGE BALANCES
|
||||||||||||
Average interest–earning assets
|
$ | 761,194 | $ | 748,907 | $ | 755,123 | ||||||
Average interest-bearing liabilities
|
636,935 | 639,503 | 656,099 | |||||||||
Net average earning assets
|
124,259 | 109,404 | 99,024 | |||||||||
Average assets
|
859,254 | 849,387 | 839,370 | |||||||||
Average loans
|
691,394 | 685,507 | 729,851 | |||||||||
Average deposits
|
715,610 | 705,456 | 699,483 | |||||||||
Average equity
|
109,178 | 108,114 | 86,431 | |||||||||
Average tangible equity
|
83,011 | 81,896 | 60,051 | |||||||||
ASSET QUALITY
|
June 30, 2011
|
March 31, 2011
|
June 30, 2010
|
|||||||||
Non-performing loans
|
13,110 | 12,323 | 32,954 | |||||||||
Non-performing loans to total loans
|
1.89 | % | 1.79 | % | 4.59 | % | ||||||
Real estate/repossessed assets owned
|
27,213 | 27,590 | 14,908 | |||||||||
Non-performing assets
|
40,323 | 39,913 | 47,862 | |||||||||
Non-performing assets to total assets
|
4.55 | % | 4.65 | % | 5.54 | % | ||||||
Net loan charge-offs in the quarter
|
459 | 2,995 | 3,377 | |||||||||
Net charge-offs in the quarter/average net loans
|
0.27 | % | 1.77 | % | 1.86 | % | ||||||
Allowance for loan losses
|
15,459 | 14,968 | 19,565 | |||||||||
Average interest-earning assets to average
|
||||||||||||
interest-bearing liabilities
|
119.51 | % | 117.11 | % | 115.09 | % | ||||||
Allowance for loan losses to
|
||||||||||||
non-performing loans
|
117.92 | % | 121.46 | % | 59.37 | % | ||||||
Allowance for loan losses to total loans
|
2.23 | % | 2.18 | % | 2.73 | % | ||||||
Shareholders’ equity to assets
|
12.21 | % | 12.45 | % | 9.93 | % | ||||||
CAPITAL RATIOS
|
||||||||||||
Total capital (to risk weighted assets)
|
14.76 | % | 14.61 | % | 12.61 | % | ||||||
Tier 1 capital (to risk weighted assets)
|
13.50 | % | 13.35 | % | 11.36 | % | ||||||
Tier 1 capital (to leverage assets)
|
11.06 | % | 11.24 | % | 9.78 | % | ||||||
Tangible common equity (to tangible assets)
|
9.54 | % | 9.69 | % | 7.09 | % | ||||||
DEPOSIT MIX
|
June 30, 2011
|
March 31, 2011
|
June 30, 2010
|
|||||||||
Interest checking
|
$ | 105,363 | $ | 77,399 | $ | 78,837 | ||||||
Regular savings
|
37,855 | 37,231 | 32,837 | |||||||||
Money market deposit accounts
|
229,994 | 236,321 | 209,588 | |||||||||
Non-interest checking
|
113,780 | 102,429 | 89,006 | |||||||||
Certificates of deposit
|
255,867 | 263,150 | 305,305 | |||||||||
Total deposits
|
$ | 742,859 | $ | 716,530 | $ | 715,573 |
COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS
|
||||||||||||||||
Other
|
Commercial
|
|||||||||||||||
Real Estate
|
Real Estate
|
& Construction
|
||||||||||||||
Commercial
|
Mortgage
|
Construction
|
Total
|
|||||||||||||
June 30, 2011
|
(Dollars in thousands)
|
|||||||||||||||
Commercial
|
$ | 84,158 | $ | - | $ | - | $ | 84,158 | ||||||||
Commercial construction
|
- | - | 9,164 | 9,164 | ||||||||||||
Office buildings
|
- | 92,795 | - | 92,795 | ||||||||||||
Warehouse/industrial
|
- | 48,338 | - | 48,338 | ||||||||||||
Retail/shopping centers/strip malls
|
- | 85,591 | - | 85,591 | ||||||||||||
Assisted living facilities
|
- | 35,487 | - | 35,487 | ||||||||||||
Single purpose facilities
|
- | 98,583 | - | 98,583 | ||||||||||||
Land
|
- | 54,562 | - | 54,562 | ||||||||||||
Multi-family
|
- | 50,035 | - | 50,035 | ||||||||||||
One-to-four family
|
- | - | 16,760 | 16,760 | ||||||||||||
Total
|
$ | 84,158 | $ | 465,391 | $ | 25,924 | $ | 575,473 | ||||||||
March 31, 2011
|
(Dollars in thousands)
|
|||||||||||||||
Commercial
|
$ | 85,511 | $ | - | $ | - | $ | 85,511 | ||||||||
Commercial construction
|
- | - | 8,608 | 8,608 | ||||||||||||
Office buildings
|
- | 95,529 | - | 95,529 | ||||||||||||
Warehouse/industrial
|
- | 49,627 | - | 49,627 | ||||||||||||
Retail/shopping centers/strip malls
|
- | 85,719 | - | 85,719 | ||||||||||||
Assisted living facilities
|
- | 35,162 | - | 35,162 | ||||||||||||
Single purpose facilities
|
- | 98,651 | - | 98,651 | ||||||||||||
Land
|
- | 55,258 | - | 55,258 | ||||||||||||
Multi-family
|
- | 42,009 | - | 42,009 | ||||||||||||
One-to-four family
|
- | - | 18,777 | 18,777 | ||||||||||||
Total
|
$ | 85,511 | $ | 461,955 | $ | 27,385 | $ | 574,851 | ||||||||
LOAN MIX
|
June 30, 2011
|
March 31, 2011
|
June 30, 2010
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Commercial and construction
|
||||||||||||||||
Commercial
|
$ | 84,158 | $ | 85,511 | $ | 106,002 | ||||||||||
Other real estate mortgage
|
465,391 | 461,955 | 455,106 | |||||||||||||
Real estate construction
|
25,924 | 27,385 | 68,717 | |||||||||||||
Total commercial and construction
|
575,473 | 574,851 | 629,825 | |||||||||||||
Consumer
|
||||||||||||||||
Real estate one-to-four family
|
115,578 | 110,437 | 84,956 | |||||||||||||
Other installment
|
2,318 | 2,289 | 2,579 | |||||||||||||
Total consumer
|
117,896 | 112,726 | 87,535 | |||||||||||||
Total loans
|
693,369 | 687,577 | 717,360 | |||||||||||||
Less:
|
||||||||||||||||
Allowance for loan losses
|
15,459 | 14,968 | 19,565 | |||||||||||||
Loans receivable, net
|
$ | 677,910 | $ | 672,609 | $ | 697,795 | ||||||||||
DETAIL OF NON-PERFORMING ASSETS
|
||||||||||||||
Northwest
|
Other
|
Southwest
|
Other
|
|||||||||||
Oregon
|
Oregon
|
Washington
|
Washington
|
Other
|
Total
|
|||||||||
June 30, 2011
|
(Dollars in thousands)
|
|||||||||||||
Non-performing assets
|
||||||||||||||
Commercial
|
$ -
|
$ 949
|
$ 1,711
|
$ -
|
$ -
|
$ 2,660
|
||||||||
Commercial real estate
|
-
|
530
|
751
|
-
|
-
|
1,281
|
||||||||
Land
|
-
|
-
|
1,525
|
-
|
1,379
|
2,904
|
||||||||
Multi-family
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||
Commercial construction
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||
One-to-four family construction
|
1,876
|
2,087
|
-
|
-
|
-
|
3,963
|
||||||||
Real estate one-to-four family
|
460
|
310
|
1,513
|
19
|
-
|
2,302
|
||||||||
Consumer
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||
Total non-performing loans
|
2,336
|
3,876
|
5,500
|
19
|
1,379
|
13,110
|
||||||||
REO
|
4,219
|
8,938
|
10,184
|
3,872
|
-
|
27,213
|
||||||||
Total non-performing assets
|
$ 6,555
|
$ 12,814
|
$ 15,684
|
$ 3,891
|
$ 1,379
|
$ 40,323
|
||||||||
DETAIL OF SPEC CONSTRUCTION AND LAND DEVELOPMENT LOANS
|
||||||||||||||
Northwest
|
Other
|
Southwest
|
Other
|
|||||||||||
Oregon
|
Oregon
|
Washington
|
Washington
|
Other
|
Total
|
|||||||||
June 30, 2011
|
(Dollars in thousands)
|
|||||||||||||
Land and Spec Construction Loans
|
||||||||||||||
Land Development Loans
|
$ 6,068
|
$ 4,156
|
$ 35,669
|
$ -
|
$ 8,632
|
$ 54,525
|
||||||||
Spec Construction Loans
|
1,876
|
8,548
|
3,537
|
294
|
-
|
14,255
|
||||||||
Total Land and Spec Construction
|
$ 7,944
|
$ 12,704
|
$ 39,206
|
$ 294
|
$ 8,632
|
$ 68,780
|
||||||||
At or for the three months ended
|
||||||||||||
SELECTED OPERATING DATA
|
June 30, 2011
|
March 31, 2011
|
June 30, 2010
|
|||||||||
Efficiency ratio (4)
|
75.99 | % | 82.16 | % | 64.55 | % | ||||||
Coverage ratio (6)
|
108.25 | % | 101.41 | % | 124.13 | % | ||||||
Return on average assets (1)
|
0.51 | % | 0.41 | % | 0.84 | % | ||||||
Return on average equity (1)
|
4.04 | % | 3.20 | % | 8.19 | % | ||||||
NET INTEREST SPREAD
|
||||||||||||
Yield on loans
|
5.96 | % | 6.06 | % | 6.15 | % | ||||||
Yield on investment & mortgage-backed securities
|
2.93 | % | 3.12 | % | 3.38 | % | ||||||
Total yield on interest earning assets
|
5.50 | % | 5.63 | % | 6.01 | % | ||||||
Cost of interest bearing deposits
|
0.81 | % | 0.88 | % | 1.25 | % | ||||||
Cost of FHLB advances and other borrowings
|
5.85 | % | 5.83 | % | 3.37 | % | ||||||
Total cost of interest bearing liabilities
|
1.01 | % | 1.08 | % | 1.40 | % | ||||||
Spread (7)
|
4.49 | % | 4.55 | % | 4.61 | % | ||||||
Net interest margin
|
4.66 | % | 4.71 | % | 4.79 | % | ||||||
PER SHARE DATA
|
||||||||||||
Basic earnings per share (2)
|
$ | 0.05 | $ | 0.04 | $ | 0.16 | ||||||
Diluted earnings per share (3)
|
0.05 | 0.04 | 0.16 | |||||||||
Book value per share (5)
|
4.82 | 4.76 | 7.85 | |||||||||
Tangible book value per share (5)
|
3.65 | 3.59 | 5.43 | |||||||||
Market price per share:
|
||||||||||||
High for the period
|
$ | 3.18 | $ | 3.21 | $ | 3.81 | ||||||
Low for the period
|
2.80 | 2.69 | 2.24 | |||||||||
Close for period end
|
3.07 | 3.04 | 2.43 | |||||||||
Average number of shares outstanding:
|
||||||||||||
Basic (2)
|
22,308,696 | 22,302,538 | 10,735,946 | |||||||||
Diluted (3)
|
22,309,353 | 22,302,538 | 10,735,946 | |||||||||
(1)
|
Amounts for the quarterly periods are annualized.
|
(2)
|
Amounts exclude ESOP shares not committed to be released.
|
(3)
|
Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
|
(4)
|
Non-interest expense divided by net interest income and non-interest income.
|
(5)
|
Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.
|
(6)
|
Net interest income divided by non-interest expense.
|
(7)
|
Yield on interest-earning assets less cost of funds on interest bearing liabilities.
|