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Riverview Financial Corporation Reports 2017 Financial Results

Freitag, 09.03.2018 22:35 von PR Newswire

PR Newswire

HARRISBURG, Pa., March 9, 2018 /PRNewswire/ -- Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), today reported unaudited financial results at and for the three months and year ended December 31, 2017.  Riverview, which completed an acquisition of CBT Financial Corp. ("CBT") on October 1, 2017, reported a net loss of $4.9 million, or $(0.55) per basic and diluted weighted average common share, for the fourth quarter of 2017, compared to net income of $488 thousand, or $0.15 per basic and diluted weighted average common share, for the comparable period of 2016. For the year ended December 31, 2017, Riverview reported a net loss of $4.9 million, or $(0.91) per basic and diluted weighted average common share, compared to net income of $3.1 million, or $0.95 per basic and diluted weighted average common share, for the year-ended December 31, 2016. In the fourth quarter of 2017, a $3.9 million, or $(0.43) per share, charge to income tax expense was recorded related to the re-measurement of net deferred tax assets resulting from the new 21% federal corporate income tax rate established by the Tax Cuts and Jobs Act, enacted in December 2017.  The results for the year ended December 31, 2017 also include pre-tax merger expenses of approximately $3.7 million.

Comparability of the results of operations for the three and twelve months ended December 31, 2017 and December 31, 2016 was materially impacted by (i) the reduction in the federal corporate income tax rate referred to above, and (ii) expenses incurred in connection with the acquisition of CBT, also referred to above.  In order to provide meaningful performance comparisons between the years and quarters ended December 31, 2016 and December 31, 2017, respectively, Riverview believes it is appropriate to segregate and exclude the impact of the items described below in order to present comparative results of Riverview's business during these periods.  The discussion in this release excludes those items as indicated and, as a result, contains non-GAAP financial measures, which are reconciled to GAAP financial measures in supplemental tables presented below.

HIGHLIGHTS

  • Fourth quarter 2017 federal income tax expense included a nonrecurring charge of $3.9 million, or $(0.43) per share, associated with revaluing the deferred tax asset
  • Fourth quarter 2017 operating expenses included pre-tax merger related expenses of $3.3 million accounting for a reduction in net income after tax of $(0.24) per share
  • Core net income totaled $1.2 million, or $0.13 per share, in the fourth quarter 2017
  • Loan loss provision amounted to $1.0 million for the three months and $2.7 million for the year ended December 31, 2017, respectively, driven primarily by organic loan growth
  • Excluding acquired loans, loans, net grew $164.1 million, or 40.1%, in 2017
  • Excluding acquired loans, quarterly loan growth in 2017 totaled $55.1 million, or 13.5%, in the first quarter, $40.3 million, or 8.7%, in the second quarter, $55.4 million, or 11.0%, in the third quarter and $13.4 million, or 2.4%, in the fourth quarter.
  • Deposits increased $135.1 million, or 29.8%, without taking into account assumed CBT deposits, totaling $438.8 million, in 2017.
  • Excluding assumed deposits, quarterly deposits grew $43.9 million, or 9.7%, in the first quarter, $27.4 million, or 5.5%, in the second quarter, $51.1 million, or 9.7%, in the third quarter and $12.7 million, or 2.2%, in the fourth quarter.
  • Nonperforming assets as a percentage of loans, net and other real estate owned declined to 0.85% at December 31, 2017 compared to 1.26% at September 30, 2017 and 1.99% at December 31, 2016.
  • For the three months ended December 31, 2017, noninterest income was $2.0 million, an increase of $1.1 million, or 113.6%, compared to the same period last year
  • Management anticipates an effective tax rate of 18% for 2018 as a result of the recently enacted tax reform legislation

"This past year ended December 31, 2017 was one of the most pivotal years in the history of Riverview with respect to developing and implementing its strategic direction and laying the groundwork for its future financial performance success," said Kirk D. Fox, Chief Executive Officer. "During the first quarter of 2017, we successfully completed a $17.0 million private placement of common and convertible preferred securities. The additional capital afforded Riverview the ability to significantly grow its loan portfolio through hiring multiple teams of experienced and established lenders to serve new and existing markets. The addition of our new lending teams has provided net organic loan growth of more than $164.1 million, or 40.1%, in 2017."

"More notably," Fox continued, "the capital raise allowed Riverview to acquire CBT Financial Corp., the parent company of CBT Bank, in a stock transaction valued at approximately $54.6 million, effective October 1, 2017.  This merger created a combined community banking franchise with approximately $1.2 billion of assets that provides enhanced products and services through 33 banking and financial service locations covering 12 Pennsylvania counties. However," he added, "the merger was not completed without incurring additional expenditures, which adversely impacted our financial performance for 2017 as we recognized approximately $3.7 million in merger related costs. In addition, the enactment of the tax legislation in the fourth quarter of 2017 had an immediate adverse impact on our financial performance related to the re-measurement of our net deferred tax assets, resulting in a tax charge that reduced net income by $3.9 million in 2017."

"We believe the strategic actions of 2017 will foster future growth and position Riverview to generate financial performance equal to or exceeding that of our peers," Fox concluded.

Brett D. Fulk, President, added, "The strategic initiatives set into motion during early 2017, as well as associated expenses, positioned us to take advantage of both organic and merger related growth opportunities.  Organic growth and resultant revenue generation to date have exceeded our expectations as a direct result of the talented team members we have added throughout our footprint, including State College, the greater Harrisburg metropolitan area, and Berks County, all of which continue to be productive given the ongoing competitor disruption within these markets".  Fulk continued, "2017 asset generation positioned us to quickly overcome the significant investments made in the personnel, infrastructure and overhead necessary to capitalize on future profitable asset generation opportunities.  However, while profitable growth will remain a key component of our strategic plan, we remain focused on proper credit structure, underwriting parameters and maintaining a high quality credit culture, evidenced by continuing positive trends in our credit quality metrics."  Fulk concluded, "despite the exciting growth story over the past several years at Riverview, and the continuation of that story during 2017, we understand that for the immediate future our focus must be internal, and will remain so for as long as it takes to ensure the successful integration of CBT Financial Corp and CBT Bank with and into Riverview Financial Corporation and Riverview Bank.  We believe this strategic business combination truly enhances our ability to continue providing our valued shareholders attractive, long term returns on their investment in Riverview.  We are excited about the potential this organization now possesses to tangibly demonstrate the value of our past strategic growth initiatives during 2018.  We know that successful integration, which requires focus, is necessary to achieve the desired results."

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three and twelve months ended December 31 were $10.9 million and $25.9 million in 2017 compared to $4.6 million and $18.6 million in 2016, respectively. The increase in tax equivalent net interest income for the comparable fourth quarters was a result of favorable changes in both volume and rate variances. Average earning assets increased $580.0 million while average interest bearing liabilities increased $485.6 million comparing the fourth quarters of 2017 and 2016. For the three months ended December 31, the tax-equivalent net interest margin increased to 4.05% in 2017 from 3.76% in 2016. The tax equivalent net interest margin was 3.77% adjusted for the impact of net purchase accounting accretion in the fourth quarter of 2017.

For the year, the increase in tax equivalent net interest income was primarily attributable to a favorable volume variance from an increase in average interest earning assets exceeding the growth of average interest bearing liabilities. Partially offsetting the positive impact of net average asset growth was an unfavorable rate variance caused by a decline in the tax-equivalent net interest margin. The growth of average interest earning assets exceeded the growth of average interest bearing liabilities by $38.9 million comparing 2017 and 2016. Loans, net averaged $597.1 million in 2017 and $403.0 million in 2016. Average investments totaled $78.4 million in 2017 and $72.3 million in 2016. The tax-equivalent net interest margin declined 7 basis points to 3.76% in 2017 from 3.83% in 2016. The tax-equivalent yield on the loan portfolio increased to 4.59% in 2017 compared to 4.53% in 2016. For the year ended December 31, the tax-equivalent yield on earning assets increased to 4.36% in 2017 from 4.27% in 2016. The cost of funds increased 19 basis points in 2017 to 0.71% from 0.52% in 2016.

For the quarter ended December 31, the provision for loan losses increased to $1.0 million in 2017 from $169 thousand in 2016. The provision for loan losses totaled $2.7 million for the year ended December 31, 2017, compared to $453 thousand in 2016. The increase in the provision for loan losses was primarily influenced by significant loan growth originated through the successful hiring of teams of lenders in the first quarter of 2017.  

For the three months ended December 31, noninterest income totaled $2.0 million in 2017, an increase of $1.1 million from $934 thousand in 2016. The increase was primarily attributable to an increase in service charges, fees and commissions of $793 thousand. In addition, trust fees, mortgage banking income and bank owned life insurance investment income increased $222 thousand, $30 thousand and $126 thousand, respectively, comparing the fourth quarters of 2017 and 2016. For the year ended December 31, noninterest income increased to $4.4 million in 2017 from $3.6 million in 2016. The year over year decrease of $395 thousand in net gains recognized on the sale of available-for-sale investment securities was more than offset by improvements in all other categories of noninterest income. The inclusion of CBT's noninterest income from the date of the merger was primarily responsible for the increases across all categories of noninterest income.

For the quarter ended December 31, noninterest expense increased $8.6 million to $13.2 million in 2017 from $4.6 million in 2016 primarily as a result of the merger. For the year ended December 31, noninterest expense increased $11.3 million to $28.6 million in 2017 from $17.3 million in 2016. The addition of CBT in the fourth quarter and recognition of severance and contract charges related to the merger accounted for a $2.1 million increase in salaries and employee benefits costs. Another major driver of the increase in salaries and employee benefit expense was the hiring of lending teams along with staffing for new community banking offices in the first quarter of 2017. Additions to leased facilities for newly opened community banking offices along with offices to support the lending teams and the addition of CBT occupancy expenses were primarily responsible for the $1.1 million increase in occupancy and equipment costs. The increase in other expenses comparing 2017 and 2016 was a result of incurring merger related costs of $3.7 million in 2017.

BALANCE SHEET REVIEW

Total assets, loans, net and deposits totaled $1.2 billion, $956.0 million, and $1.0 billion, respectively, at December 31, 2017. Loans, net increased $395.8 million in the fourth quarter of 2017 and $546.6 million, for the year ended December 31, 2017. Total deposits increased $451.5 million in the fourth quarter of 2017 and $573.9 million for the year ended December 31, 2017. Noninterest-bearing deposits increased $82.0 million, while interest-bearing deposits increased $491.9 million in 2017.

Stockholders' equity totaled $106.3 million, or $11.72 per common share, at December 31, 2017, as compared to $41.9 million, or $12.95 per common share, at December 31, 2016. The year-to-date increase in equity in 2017 was a result of the issuance of 4.1 million shares totaling $54.6 million to CBT shareholders in the merger exchange along with the completion of the sale of approximately $17.0 million in common and preferred equity, before expenses, to accredited investors and qualified institutional buyers through a private placement in the first quarter of 2017. Effective as of the close of business on June 22, 2017, Riverview filed an amendment to its Articles of Incorporation to authorize a class of non-voting common stock after obtaining shareholder approval on June 21, 2017. As a result, each share of Series A preferred stock was automatically converted into one share of non-voting common stock as of the effective date. Tangible stockholders' equity per common share decreased to $8.50 per share at December 31, 2017, compared to $10.84 per share at year-end 2016. Dividends declared for the twelve months ended December 31, 2017 amounted to $0.55 per share. The annualized dividend yield based on the closing price of $13.15 per share on December 31, 2017 was 4.2%.

ASSET QUALITY REVIEW

Nonperforming assets were $8.2 million at December 31, 2017 and 2016. As a percentage of loans, net and foreclosed assets, nonperforming assets amounted to 0.85% and 1.99% at year-end 2017 and 2016, respectively. Adjusting for accruing restructured loans, non-performing assets were $2.7 million, or 0.28% of loans, net and foreclosed assets, at December 31, 2017 and $2.4 million, or 0.58%, at December 31, 2016. The allowance for loan losses equaled $6.3 million, or 0.66% of loans, net, at December 31, 2017, compared to $3.7 million, or 0.91% of loans, net, at December 31, 2016. The decrease in the ratio of the allowance for loan losses as a percentage of loans, net, is primarily a function of acquisition accounting, whereby the historical loan portfolio of CBT was recorded at its estimated fair value, including a $13.7 million discount to reflect credit risk, and the historical allowance for loan losses of CBT was eliminated. Loans charged-off, net of recoveries, for the three and twelve months ended December 31, 2017 equaled $98 thousand and $160 thousand, respectively, compared to $74 thousand and $1.1 million for the comparable periods last year.

Riverview Financial Corporation is the parent company of Riverview Bank and its operating divisions Halifax Bank, Marysville Bank, Citizens Neighborhood Bank, CBT Bank, Riverview Wealth Management and CBT Financial and Trust Management. An independent community bank, Riverview Bank serves the  Pennsylvania market areas of Berks, Blair, Centre, Clearfield, Dauphin, Huntingdon, Lebanon, Lycoming, Northumberland, Perry, Schuylkill and Somerset Counties through 30 community banking offices and 3 limited purpose offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. The Wealth Management and Trust divisions, with assets under management exceeding $350 million, provide trust and investment advisory services to the general public. Riverview's business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies. The Company's common stock trades on the OTCQX Market under the symbol "RIVE". The Investor Relations site can be accessed at https://www.riverviewbankpa.com/.

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Riverview Financial Corporation, Riverview Bank, and its subsidiaries (collectively, "Riverview") that may be considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Riverview claims the protection of the statutory safe harbors for forward-looking statements.

Riverview cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting Riverview' operations, pricing, products and services and other factors that may be described in Riverview' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.

In addition to these risks, acquisitions and business combinations present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder-or take longer-to achieve than expected. As regulated financial institutions, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre­acquisition operations of an acquired or combined business may cause reputational harm to Riverview following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues. 

The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Riverview assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Riverview routinely presents and supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity and core net income ratios. The reported results for the three and twelve months ended December 31, 2017 and 2016, contain items which Riverview considers non-core, namely net gains on sales of investment securities available-for-sale, acquisition related expenses and the adjustment to tax expense due to the enactment of the Tax Act. Riverview presents the non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in Riverview's results of operation.  Presentation of these non-GAAP financial measures is consistent with how Riverview evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in evaluation of companies in Riverview's industry. Where non-GAAP measures are used in this press release, reconciliations to the comparable GAAP measures are provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from similarly titled non-GAAP financial measures of other financial institutions.  These non-GAAP financial measures would not be considered a substitute for GAAP basis measures, and Riverview strongly encourages a review of its condensed consolidated financial statements in their entirety.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are presented in the tabular material that follows.

[TABULAR MATERIAL FOLLOWS]

 

 

Summary Data

Riverview Financial Corporation

Five Quarter Trend

(In thousands, except per share data)








Dec 31

Sept 30

Jun 30

Mar 31

Dec 31


2017

2017

2017

2017

2016

Key performance data:












Per common share data:






Net income (loss)

$  (0.55)

$  0.09

$  0.03

$(0.12)

$  0.15

Core net income (loss) (1)

$  0.13

$  0.09

$  0.05

$(0.10)

$  0.15

Cash dividends declared

$  0.14

$  0.14

$  0.14

$  0.14

$  0.14

Book value

$11.72

$11.73

$11.79

$12.45

$12.95

Tangible book value (1)

$8.50

$10.47

$10.51

$10.65

$10.84

Market value:






High

$13.65

$13.50

$14.65

$12.20

$11.78

Low

$12.95

$12.15

$11.81

$11.46

$11.05

Closing

$13.15

$13.20

$13.48

$11.95

$11.60

Market capitalization

$119,262

$64,576

$65,739

$42,044

$37,559

Common shares outstanding

9,069,363

4,892,143

4,876,774

3,518,351

3,237,859







Selected ratios:












Return on average stockholders' equity

(17.47)%

2.77%

1.25%

(4.20)%

4.50%







Core return on average stockholders' equity (1)

4.09%

3.06%

1.73%

(3.70)%

4.50%







Return on average tangible stockholders' equity (1)

(23.87)%

3.10%

1.41%

(4.79)%

5.34%







Core return on average tangible stockholders' equity (1)

5.59%

3.43%

1.95%

(4.22)%

5.34%







Return on average assets

(1.67)%

0.24%

0.12%

(0.41)%

0.36%







Core return on average assets (1)

0.39%

0.26%

0.16%

(0.36)%

0.36%







Stockholders' equity to total assets

9.13%

8.42%

9.15%

9.51%

7.72%







Efficiency ratio (2)

100.39%

80.85%

86.53%

94.91%

82.02%







Nonperforming assets to loans, net, and foreclosed assets

 

0.85%

1.26%

1.41%

1.74%

1.99%







Net charge-offs to average loans, net

0.04%

0.03%

0.01%

0.01%

0.07%







Allowance for loan losses to loans, net

0.66%

0.96%

0.96%

0.93%

0.91%







Earning assets yield (FTE) (3)

4.67%

4.22%

4.16%

4.08%

4.19%







Cost of funds

0.74%

0.76%

0.69%

0.60%

0.51%







Net interest spread (FTE) (3)

3.93%

3.46%

3.47%

3.48%

3.68%







Net interest margin (FTE) (3)

4.05%

3.57%

3.58%

3.57%

3.76%













(1)

See Reconciliation of Non-GAAP financial measures.

(2)

Total noninterest expense less amortization of intangible assets divided by tax-equivalent net interest income and noninterest
income less net gain (loss) on sale of investment securities available-for-sale.

(3)

Tax-equivalent adjustments were calculated using the prevailing federal statutory tax rate.


 

 

 

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)





Twelve Months Ended

Dec 31


Dec 31


2017


2016

Interest income:




Interest and fees on loans:




Taxable

$26,474


$17,565

Tax-exempt

600


451

Interest and dividends on investment securities:




Taxable

2,155


1,931

Tax-exempt

228


326

Dividends

3


8

Interest on interest-bearing deposits in other banks

121


53

Interest on federal funds sold

12


2

Total interest income

29,593


20,336





Interest expense:




Interest on deposits

3,489


1,793

Interest on short-term borrowings

230


84

Interest on long-term debt

401


295

Total interest expense

4,120


2,172

Net interest income

25,473


18,164

Provision for loan losses

2,734


453

Net interest income after provision for loan losses

22,739


17,711





Noninterest income:




Service charges, fees and commissions

2,037


1,278

Commissions and fees on fiduciary activities

344


118

Wealth management income

832


825

Mortgage banking income

660


597

Life insurance investment income

449


345

Net gain (loss) on sale of investment securities available-for-sale

89


484

Total noninterest income

4,411


3,647





Noninterest expense:




Salaries and employee benefits expense

15,196


9,261

Net occupancy and equipment expense

3,271


2,165

Amortization of intangible assets

538


340

Net cost of operation of other real estate owned

172


331

Other expenses

9,383


5,232

Total noninterest expense

28,560


17,329

Income (loss) before income taxes

(1,410)


4,029

Provision for income tax expense (benefit)

3,501


962

Net income (loss)

$(4,911)


$3,067





    Other comprehensive income (loss):




Unrealized gain (loss) on investment securities available-for-sale

$1,471


($2,728)

Reclassification adjustment for gain included in net income

(89)


(484)

Change in pension liability

(54)


47

Income tax expense (benefit) related to other comprehensive income

(451)


1,076

Other comprehensive income (loss), net of income taxes

877


(2,089)

Comprehensive income (loss)

$(4,034)


$978





Per common share data:




Net income (loss):




         Basic

$(0.91)


$0.95

         Diluted

$(0.91)


$0.95

Average common shares outstanding:




         Basic

5,260,537


3,219,339

         Diluted

5,260,537


3,241,869

Cash dividends declared

$0.55


$0.55














 

 

 

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)








Three months ended

Dec 31

Sept 30

Jun 30

March 31

Dec 31



2017

2017

2017

2017

2016


Interest income:







Interest and fees on loans:







Taxable

$  11,483

$  5,717

$  4,989

$  4,285

$  4,203


Tax-exempt

239

146

107

108

190


Interest and dividends on investment securities available-for-sale:







Taxable

548

477

566

564

556


Tax-exempt

88

47

46

47

46


Dividends




3



Interest on interest-bearing deposits in other banks

43

31

24

23

12


Interest on federal funds sold


2

4

6



Total interest income

12,401

6,420

5,736

5,036

5,007









Interest expense:







Interest on deposits

1,468

821

668

532

418


Interest on short-term borrowings

33

112

63

22

25


Interest on long-term debt

173

75

78

75

81


Total interest expense

1,674

1,008

809

629

524


Net interest income

10,727

5,412

4,927

4,407

4,483


Provision for loan losses

1,000

610

519

605

169


Net interest income after provision for loan losses

9,727

4,802

4,408

3,802

4,314









Noninterest income:







Service charges, fees and commissions

1,138

270

292

337

345


Commissions and fees on fiduciary activities

252

31

31

30

30


Wealth management income

201

179

194

258

294


Mortgage banking income

226

205

147

82

196


Life insurance investment income

195

107

74

73

69


Net gain (loss) on sale of investment securities available-for-sale

(17)

43

64

(1)



        Total noninterest income

1,995

835

802

779

934









Noninterest expense:







Salaries and employee benefits expense

6,675

2,928

2,757

2,836

2,650


Net occupancy and equipment expense

1,376

615

634

646

548


Amortization of intangible assets

232

71

71

164

93


Net cost of operation of other real estate owned

11

(13)

138

36

117


Other expenses

4,895

1,566

1,441

1,481

1,228


Total noninterest expense

13,189

5,167

5,041

5,163

4,636


Income (loss) before income taxes

(1,467)

470

169

(582)

612


Income tax expense (benefit)

3,457

69

(10)

(15)

124


Net income (loss)

$(4,924)

$401

$179

$(567)

$488









Other comprehensive income (loss):







Unrealized gain (loss) on investment securities available-for-sale

$(237)

$(50)

$1,246

$     512

$(3,668)


Reclassification adjustment for (gain) loss included in net income

17

(43)

(64)

1



Change in pension liability

(54)




47


Income tax expense (benefit) related to other comprehensive income (loss)

93

32

(402)

(174)

1,231


Other comprehensive income (loss), net of income taxes

(181)

(61)

780

339

(2,390)


Comprehensive income (loss)

$ (5,105)

$  340

$  959

$  (228)

$(1,902)









Per common share data:







Net income (loss):







         Basic

$  (0.55)

$  0.09

$  0.03

$ (0.12)

$    0.15


         Diluted

$ (0.55)

$  0.09

$  0.04

$ (0.12)

$    0.15


Average common shares outstanding:







         Basic

8,994,617

4,880,676

3,655,446

3,454,704

3,232,359


         Diluted

8,994,617

4,945,456

3,726,939

3,454,704

3,254,719


Cash dividends declared

$  0.14

$  0.14

$  0.14

$    0.14

$    0.14























 

 

 

Riverview Financial Corporation

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)







Three months ended

Dec 31

Sept 30

Jun 30

Mar 31

Dec 31


2017

2017

2017

2017

2016

Net interest income:






Interest income






Loans, net:






Taxable

$ 11,483

$ 5,717

$ 4,989

$ 4,285

$ 4,203

Tax-exempt

362

221

162

164

288

Total loans, net

11,845

5,938

5,151

4,449

4,491

Investments:






Taxable

548

477

566

567

556

Tax-exempt

133

71

70

71

70

Total investments

681

548

636

638

626

Interest on interest-bearing balances in other banks

43

31

24

23

12

Federal funds sold


2

4

6


Total interest income

12,569

6,519

5,815

5,116

5,129

Interest expense:






Deposits

1,468

821

668

532

418

Short-term borrowings

33

112

63

22

25

Long-term debt

173

75

78

75

81

Total interest expense

1,674

1,008

809

629

524

Net interest income

$10,895

$5,511

$5,006

$ 4,487

$ 4,605







Yields on earning assets:






Loans, net:






Taxable

4.99%

4.40%

4.36%

4.30%

4.26%

Tax-exempt

3.91%

3.94%

3.99%

4.06%

9.16%

Total loans, net

4.94%

4.38%

4.35%

4.30%

4.42%

Investments:






Taxable

2.65%

3.17%

3.35%

3.32%

3.28%

Tax-exempt

3.04%

4.90%

4.89%

5.01%

4.84%

Total investments

2.71%

3.33%

3.47%

3.45%

3.40%

Interest-bearing balances with banks

0.97%

1.35%

0.95%

0.87%

0.49%

Federal funds sold


1.71%

0.94%

0.74%


Total earning assets

4.67%

4.22%

4.16%

4.08%

4.19%

Costs of interest-bearing liabilities:






Deposits

0.67%

0.67%

0.62%

0.54%

0.43%

Short-term borrowings

1.39%

1.32%

1.11%

0.86%

0.65%

Long-term debt

5.17%

4.16%

2.81%

2.73%

2.88%

Total interest-bearing liabilities

0.74%

0.76%

0.69%

0.60%

0.51%

Net interest spread

3.93%

3.46%

3.47%

3.48%

3.68%

Net interest margin

4.05%

3.57%

3.58%

3.57%

3.76%










 

 

 

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands, except per share data)








Dec 31

Sept 30

Jun 30

Mar 31

Dec 31

At period end

2017

2017

2017

2017

2016







Assets:






Cash and due from banks

$  9,413

$  8,425

$  9,613

$  10,852

$   7,783

Interest-bearing balances in other banks

16,373

10,741

6,064

11,552

11,337

Federal funds sold






Investment securities available-for-sale

93,201

56,874

67,852

72,741

73,113

Loans held for sale

254

519

1,037

522

652

Loans, net

955,971

560,187

504,749

464,481

409,343

Less: allowance for loan losses

6,306

5,404

4,834

4,329

3,732

Net loans

949,665

554,783

499,915

460,152

405,611

Premises and equipment, net

18,631

12,163

12,132

12,116

12,201

Accrued interest receivable

3,237

1,995

1,651

1,881

1,726

Goodwill

24,754

5,079

5,079

5,079

5,408

Other intangible assets, net

4,376

1,099

1,170

1,241

1,405

Other assets

43,703

29,701

23,728

24,237

23,812

Total assets

$1,163,607

$681,379

$628,241

$600,373

$543,048













Liabilities:






Deposits:






Noninterest-bearing

$  155,895

$  76,214

$  76,096

$  79,127

$  73,932

Interest-bearing

870,585

498,736

447,799

417,380

378,628

Total deposits

1,026,480

574,950

523,895

496,507

452,560

Short-term borrowings

6,000

37,250

30,000

30,000

31,500

Long-term debt

13,233

6,503

11,589

11,073

11,154

Accrued interest payable

468

213

194

203

192

Other liabilities

11,170

5,084

5,048

5,499

5,722

Total liabilities

1,057,351

624,000

570,726

543,282

501,128







Stockholders' equity:






Preferred stock




13,283


Common stock

100,476

45,427

45,240

31,833

29,052

Capital surplus

423

243

235

224

220

Retained earnings

6,936

12,848

13,118

13,609

14,845

Accumulated other comprehensive income (loss)

(1,579)

(1,139)

(1,078)

(1,858)

(2,197)

Total stockholders' equity

106,256

57,379

57,515

57,091

41,920

Total liabilities and stockholders' equity

$1,163,607

$681,379

$628,241

$600,373

$543,048


















 

 

 

Riverview Financial Corporation


Consolidated Balance Sheets


(In thousands except per share data)










Dec 31

Sept 30

Jun 30

Mar 31

Dec 31


Average quarterly balances

2017

2017

2017

2017

2016









Assets:







Loans, net:






Taxable

$913,623

$515,494

$458,702

$403,684

$392,085


Tax-exempt

36,750

22,246

16,285

16,396

12,510


Total loans, net

950,373

537,740

474,987

420,080

404,595


Investments:






Taxable

82,180

59,612

67,753

69,253

67,423


Tax-exempt

17,345

5,746

5,747

5,748

5,750


Total investments

99,525

65,358

73,500

75,001

73,173


Interest-bearing balances with banks

17,615

9,143

10,137

10,662

9,716


Federal funds sold

48

465

1,709

3,293

31


Total earning assets

1,067,561

612,706

560,333

509,036

487,515


Other assets

101,120

52,770

49,382

49,025

45,300


Total assets

$1,168,681

$665,476

$609,715

$558,061

$532,815








Liabilities and stockholders' equity:






Deposits:






Interest-bearing

$873,596

$483,648

$435,033

$402,339

$384,278


Noninterest-bearing

150,515

77,819

77,440

73,188

72,227


Total deposits

1,024,111

561,467

512,473

475,527

456,505


Short-term borrowings

9,403

33,707

22,838

10,324

15,213


Long-term debt

13,271

7,151

11,146

11,122

11,203


Other liabilities

10,053

5,700

5,909

6,325

6,709


Total liabilities

1,056,838

608,025

552,366

503,298

489,630


Stockholders' equity

111,843

57,451

57,349

54,763

43,185


Total liabilities and stockholders' equity

$1,168,681

$665,476

$609,715

$558,061

$532,815


 

 

 

Riverview Financial Corporation

Asset Quality Data

(In thousands)








Dec 31

Sept 30

Jun 30

Mar 31

Dec 31


2017

2017

2017

2017

2016

At quarter end:






Nonperforming assets:






Nonaccrual  loans

$1,745

$1,765

$1,702

$1,725

$1,386

Accruing restructured loans

5,478

5,168

5,199

5,597

5,805

Accruing loans past due 90 days or more

693


35

189

359

Foreclosed assets

236

144

205

561

625

Total nonperforming assets

$8,152

$7,077

$7,141

$8,072

$8,175







Three months ended:






Allowance for loan losses:






Beginning balance

$5,404

$4,834

$4,329

$3,732

$3,637

Charge-offs

142

42

21

12

78

Recoveries

44

2

7

4

4

Provision for loan losses

1,000

610

519

605

169

Ending balance

$6,306

$5,404

$4,834

$4,329

$3,732













 

 

 

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)








Dec 31

Sept 30

Jun 30

Mar 31

Dec 31

Three months ended:

2017

2017

2017

2017

2016

Core net income (loss) per common share:






Net income (loss)

$(4,924)

$401

$179

$(567)

$488

Dividends on preferred stock



(186)

(185)


Net income (loss) available to common stockholders

(4,924)

401

(7)

(752)

488

Undistributed loss (income) allocated to preferred stockholders



128

347


Income (loss) allocated to common stockholders

(4,924)

401

121

(405)

488

Adjustments:






Less: Gain (loss) on sale of investment securities, net of tax

(11)

28

42

(1)


Add: Acquisition related expenses, net of tax

2,177

70

111

67


Add: Tax Cuts and Jobs Act tax expense

3,888





Net income (loss) Core

$1,152

$443

$190

$(337)

$488







Average common shares outstanding

8,994,617

4,880,676

3,655,446

3,454,704

3,232,359

Core net income (loss) per common share

$  0.13

$  0.09

$  0.05

$   (0.10)

$   0.15







Tangible book value:






Total stockholders' equity

$106,256

$57,379

$57,515

$43,808

$41,920

Less: Goodwill

24,754

5,079

5,079

5,079

5,408

Less: Other intangible assets, net

4,376

1,099

1,170

1,241

1,405

Total tangible stockholders' equity

$77,126

$51,201

$51,266

$37,488

$35,107







Common shares outstanding

9,069,363

4,892,143

4,876,774

3,518,351

3,237,859

Tangible book value per share

$  8.50

$  10.47

$  10.51

$   10.65

$   10.84







Core return on average stockholders' equity:






Net income (loss) GAAP

$(4,924)

$401

$179

$(567)

$488

Adjustments:






Less: Gain (loss) on sale of investment securities, net of tax

(11)

28

42

(1)


Add: Acquisition related expenses, net of tax

2,177

70

111

67


Add: Tax Cuts and Jobs Act tax expense

3,888





Net income (loss) Core

$1,152

$443

$248

$(499)

$488







Average stockholders' equity

$  111,843

$  57,451

$  57,349

$   54,763

$     43,185

Core return on average stockholders' equity

4.09%

3.06%

1.73%

(3.70)%

4.50%







Return on average tangible equity:






Net income (loss) GAAP

$(4,924)

$       401

$       179

$     (567)

$         488







Average stockholders' equity

$ 111,843

$ 57,451

$ 57,349

$  54,763

$   43,185

Less: average intangibles

30,013

6,213

6,284

6,765

6,857

Average tangible stockholders' equity

$  81,830

$  51,238

$  51,065

$   47,998

$    36,328







Return on average tangible stockholders' equity

(23.87)%

3.10%

1.41%

(4.79)%

5.34%







Core return on average tangible stockholders' equity:






Net income (loss) GAAP

$(4,924)

$401

$179

$(567)

$488

Adjustments:






Less: Gain (loss) on sale of investment securities, net of tax

(11)

28

42

(1)


Add: Acquisition related expenses, net of tax

2,177

70

111

67


Add: Tax Cuts and Jobs Act tax expense

3,888





Net income (loss) Core

$1,152

$443

$248

$(499)

$488







Average stockholders' equity

$ 111,843

$  57,451

$  57,349

$   54,763

$    43,185

Less: average intangibles

30,013

6,213

6,284

6,765

6,857

Average tangible stockholders' equity

$  81,830

$  51,238

$  51,065

$   47,998

$    36,328







Core return on average tangible stockholders' equity

5.59%

3.43%

1.95%

(4.22)%

5.34%







Core return on average assets:






Net income (loss) GAAP

$(4,924)

$401

$179

$(567)

$488

Adjustments:






Less: Gain (loss) on sale of investment securities, net of tax

(11)

28

42

(1)


Add: Acquisition related expenses, net of tax

2,177

70

111

67


Add: Tax Cuts and Jobs Act tax expense

3,888





Net income (loss) Core

$1,152

$443

$248

$(499)

$488







Average assets

$  1,168,681

$  665,476

$  609,715

$  558,061

$  532,815

Core return on average assets

0.39%

0.26%

0.16%

(0.36)%

0.36%











 

 

 

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)







Dec 31

Dec 31



2017

2016

Twelve months ended:








Core net income per common share:




Net income (loss)


$(4,911)

$3,067

Dividends on preferred stock


(371)


Net income available to common stockholders


(5,282)

3,067

Undistributed loss allocated to preferred stockholders


475


Income allocated to common stockholders


(4,807)

3,067

Adjustments:




   Less: Gains on sale of investment securities, net of tax


58

319

   Add: Acquisition related expenses, net of tax


2,425

148

   Add: Tax Cuts and Jobs Act tax expense


3,888


Net income (loss) core


$1,448

$2,896





Average common shares outstanding


5,260,537

3,219,339





Core net income (loss) per common share


$0.28

$0.90





 

 

Cision View original content:http://www.prnewswire.com/news-releases/riverview-financial-corporation-reports-2017-financial-results-300603159.html

SOURCE Riverview Financial Corporation