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Riverview Financial Corporation Reports First Quarter 2018 Financial Results

Donnerstag, 12.04.2018 17:20 von PR Newswire

PR Newswire

HARRISBURG, Pa., April 12, 2018 /PRNewswire/ -- Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), today reported unaudited financial results at and for the three months ended March 31, 2018.  Riverview, which completed a merger with CBT Financial Corp. ("CBT") on October 1, 2017, reported net income of $2.8 million or $0.31 per basic and diluted weighted average common share, for the first quarter of 2018, compared to a net loss of $567 thousand, or $(0.12) per basic and diluted weighted average common share, for the comparable period of 2017. The results for the first quarter ended March 31, 2018 include pre-tax merger related costs of $433 thousand. The earnings increase was primarily a result of the inclusion of the results of operations of both Riverview and CBT for the quarter ended March 31, 2018, compared to Riverview on a standalone basis for the same period last year. The quarter over quarter improvement was also a function of the recognition of higher loan interest income from achieving over 40% organic loan growth in 2017, excluding acquired loans from the merger, and the recognition of net accretion income on acquired assets and assumed liabilities. 

 (PRNewsfoto/Riverview Financial Corporation)

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Riverview routinely supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible book value per share and return on average tangible stockholders' equity. Riverview believes these non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measure is provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.

HIGHLIGHTS

  • Annualized return on average assets and return on average tangible stockholders' equity were 0.98% and 14.50%, respectively, for the first quarter 2018.
  • Core net income totaled $3.2 million, or $0.35 per share, in the first quarter 2018.
  • Tax-equivalent net interest margin improved to 4.38% in the first quarter of 2018 compared to 3.57% for the same period last year.
  • Noninterest income totaled $2.0 million at March 31, 2018 compared to $779 thousand for the same period last year, an increase of 150.7%.
  • Income from trust and wealth management services totaled $364 thousand at March 31, 2018 compared to $288 thousand for the same period last year, an increase of 26.4%.
  • Deposits increased $12.2 million in the first quarter 2018, or 4.8% annualized.
  • Asset quality improved as nonperforming assets as a percentage of loans, net and other real estate owned declined to 0.90% at March 31, 2018 compared to 1.74% at March 31, 2017.
  • Tangible book value per share improved to $8.75 at March 31, 2018 from $8.50 at December 31, 2017.
  • The effective tax rate decreased to 18.1% in the first quarter of 2018 as a result of the recently enacted tax reform legislation.

"We are pleased to report record earnings for the first quarter of 2018 as a result of successfully implementing our strategic initiatives, which have established the foundation for the future performance of our company. The integration of CBT Bank into Riverview has met expectations to date and favorably impacted our operating results, along with the significant organic loan growth achieved over the past year. We look forward to achieving operating efficiencies through the conversion of our core processing system in the second quarter of 2018 along with the benefits derived for our customers by being able to offer enhanced and new products and services," said Kirk D. Fox, Chief Executive Officer. "However, the progress achieved from the acquisition of CBT did not come without recognizing significant merger related costs. These costs, along with recording a charge to income tax expense of $3.9 million related to the re-measurement of net deferred tax assets from the enactment of new tax legislation in December 2017, caused executive management to suspend the payment of a first quarter dividend in order to conserve capital given the magnitude of these one-time expenses. The suspension of the dividend in the first quarter 2018 does not preclude the declaration and payment of dividends in the future. It is our goal to return to a reasonable dividend payment, determined by quarterly earnings throughout 2018, without disrupting the delicate balance we must maintain between the payment of a dividend to shareholders and remaining a well-capitalized institution, which is critical in our dedicated efforts to continue building long term value for shareholders."

Brett D. Fulk, President, added, "We are excited to report our 2018 first quarter results, providing tangible evidence of the earnings power of our institution following a transformative 2017.  We must give recognition where recognition is due: these results are the direct result of an invaluable team of hard working and highly dedicated employees at Riverview Bank and its operating divisions, without whom these results would most assuredly not be possible.  Our most valuable 'assets' are the people working for Riverview who have worked tirelessly to provide a smooth and seamless integration of CBT Bank with and into Riverview, while keeping a clear focus on execution and customer service at the same time.  We are very pleased with the status of the integration of our 2017 merger of equals business combination to date, which once again is a clear testimony to the quality of employees we are blessed to have working on our team."  Fulk continued, "we will remain focused internally for as long as necessary to ensure ongoing success with the remaining components required to complete the combination of our CBT Bank division into Riverview.  Equally important is our need to maintain appropriate credit underwriting standards, active management of our credit portfolio, and pricing discipline in the face of what continues to be a challenging rate environment and ongoing competitive pressures throughout our expanded market territory."  

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three months ended March 31, increased $7.0 million to $11.5 million in 2018 from $4.5 million in 2017.  The increase in tax-equivalent net interest income was primarily attributable to the growth in average earning assets from the merger and organic loan growth along with an improvement in the tax equivalent net interest margin. The tax-equivalent net interest margin for the three months ended March 31, 2018, increased to 4.38%  from 3.57% for the comparable period of 2017. The tax-equivalent yield on earnings assets was 5.05% and the cost of funds was 0.80% in the first quarter of 2018. The tax-equivalent yield on the loan portfolio increased to 5.38% in 2018 compared to 4.30% in 2017. Loan accretion included in loan interest income in the first quarter of 2018 related to loans acquired in the fourth quarter of 2017 was $1.8 million, resulting in an increase in the tax-equivalent net interest margin of 69 basis points. The tax-equivalent net interest margin excluding the loan accretion would have been 3.69% in the first three months of 2018. Investments yielded 2.74% on a tax-equivalent basis in the first quarter of 2018 compared to 3.45% for the same period last year. The cost of deposits increased 18 basis points to 0.72% in 2018 from 0.54% in 2017. The growth in average earning assets outpaced that of average interest-bearing liabilities by $83.0 million comparing the first quarters of 2018 and 2017. Loans, net averaged $945.7 million in 2018 and $420.1 million in 2017. Average investments totaled $92.8 million in 2018 and $75.0 million in 2017. Average interest-bearing liabilities increased to $896.5 million in 2018 from $423.8 million in 2017.

The provision for loan losses totaled $390 thousand for the quarter ended March 31, 2018, compared to $605 thousand in 2017. The decrease in the provision for loan losses in 2018 was primarily influenced by a decrease in the net volume of loans originated in the first three months of 2018 versus 2017, coupled with continuing solid results and positive trends in asset quality.

For the quarter ended March 31, noninterest income totaled $1,953 thousand in 2018, an increase of $1,174 thousand from $779 thousand in 2017.  All major categories of noninterest income improved as a result of the merger with the exception of the retail wealth management component of our wealth management division. Retail wealth management income, excluding Trust, decreased $104 thousand comparing the first quarters of 2018 and 2017 due to the dissolution of a business acquired in 2016. Service charges and fees, and commissions and trust income improved $891 thousand and $180 thousand, respectively, comparing the first quarters of 2018 and 2017. Mortgage banking income in 2018 improved to $170 thousand compared to $82 thousand in 2017. Income from bank owned life insurance increased to $191 thousand in the first quarter of 2018 compared to $73 thousand for the comparable quarter of 2017.

Noninterest expense increased $4,373 thousand, or 84.7%, to $9,536 thousand for the three months ended March 31, 2018, from $5,163 thousand for the same period last year. The majority of this increase relates to salaries and employee benefit expense, which was a result of the merger with CBT and related costs. Additions to facilities as a result of the CBT merger along with offices to support the lending teams were primarily responsible for the $476 thousand, or 73.6%, increase in occupancy and equipment costs. The majority of the $1,391 thousand increase in other expenses comparing the first quarters of 2018 and 2017 was a result of the business combination with CBT.

BALANCE SHEET REVIEW

Total assets, loans, net and deposits totaled $1.2 billion, $934.2 million, and $1.0 billion, respectively, at March 31, 2018. Loans, net decreased $21.8 million comparing the end of the first quarter of 2018 to year end 2017 with commercial real estate loans being responsible for the majority of the decline. Total investments were $88.8 million at March 31, 2018, compared to $93.2 million at December 31, 2017. Total deposits increased $12.2 million, or 4.8% annualized, in the first three months of 2018. Noninterest-bearing deposits increased $1.1 million, while interest-bearing deposits increased $11.0 million. An improvement in the volume of NOW accounts was primarily responsible for the increase in interest-bearing deposits.

Stockholders' equity totaled $108.4 million, or $11.93 per common share, at March 31, 2018, and $106.3 million, or $11.72 per common share, at December 31, 2017. The increase in equity in the first quarter of 2018 was a result primarily of net income of $2.8 million offset partially by an increase of $850 thousand in the accumulated other comprehensive loss. Tangible stockholders' equity per common share increased to $8.75 per share at March 31, 2018, compared to $8.50 per share at year-end 2017.  On March 14, 2018 the Board of Directors of Riverview announced the suspension of the payment of its first quarter 2018 dividend in order to conserve capital as a result of recognizing certain material nonrecurring fourth quarter expenses in 2017.

ASSET QUALITY REVIEW

Nonperforming assets were $8.4 million, or 0.90% of loans, net and foreclosed assets at March 31, 2018, a slight increase from $8.2 million, or 0.85%, at December 31, 2017. This asset quality ratio remains significantly improved from 1.74%, at March 31, 2017. Adjusting for accruing restructured loans, nonperforming assets were $3.1 million, or 0.3% of loans, net and foreclosed assets at March 31, 2018, $2.7 million, or 0.3%, at December 31, 2017, and $2.5 million, or 0.5%, at March 31, 2017. The allowance for loan losses equaled $6.5 million, or 0.70% of loans, net at March 31, 2018, compared to $6.3 million, or 0.66% of loans, net at December 31, 2017, and $4.3 million, or 0.93% of loans, net, at March 31, 2017. Adding purchase accounting adjustments for credit deterioration on acquired loans to the allowance for loan losses would result in a ratio of 1.96% as a percentage of  loans, net at March 31, 2018. The coverage ratio, allowance for loan losses as a percentage of nonperforming assets was 77.3% at March 31, 2018. Excluding accruing restructured loans, the coverage ratio would be 209.2% at March 31, 2018. Loans charged-off, net of recoveries, for the three months ended March 31, 2018, equaled $181 thousand or 0.08% of average loans, compared to $8 thousand or 0.01% of average loans for the same period 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 three 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 months ended March 31, 2018 and 2017, 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)








Mar 31

Dec 31

Sept 30

Jun 30

Mar 31


2018

2017

2017

2017

2017

Key performance data:












Per common share data:






Net income (loss)

$  0.31

$  (0.55)

$  0.09

$  0.04

$(0.12)

Core net income (loss) (1)

$  0.35

$  0.13

$  0.09

$  0.05

$(0.10)

Cash dividends declared

$  0.00

$  0.14

$  0.14

$  0.14

$  0.14

Book value

$11.93

$11.72

$11.73

$11.79

$12.45

Tangible book value (1)

$8.75

$8.50

$10.47

$10.51

$10.65

Market value:






High

$13.85

$13.65

$13.50

$14.65

$12.20

Low

$12.31

$12.95

$12.15

$11.81

$11.46

Closing

$12.31

$13.15

$13.20

$13.48

$11.95

Market capitalization

$111,827

$119,262

$64,576

$65,739

$42,044

Common shares outstanding

9,084,277

9,069,363

4,892,143

4,876,774

3,518,351







Selected ratios:












Return on average stockholders' equity

10.59%

(17.47)%

2.77%

1.25%

(4.20)%







Core return on average stockholders' equity (1)

11.88%

4.09%

3.06%

1.73%

(3.70)%







Return on average tangible stockholders' equity (1)

14.50%

(23.87)%

3.10%

1.41%

(4.79)%







Core return on average tangible stockholders' equity (1)

16.27%

5.59%

3.43%

1.95%

(4.22)%







Return on average assets

0.98%

(1.67)%

0.24%

0.12%

(0.41)%







Core return on average assets (1)

1.10%

0.39%

0.26%

0.16%

(0.36)%







Stockholders' equity to total assets

9.26%

9.13%

8.42%

9.15%

9.51%







Efficiency ratio (2)

69.28%

100.39%

80.85%

86.53%

94.91%







Nonperforming assets to loans, net, and foreclosed assets

0.90%

0.85%

1.26%

1.41%

1.74%







Net charge-offs to average loans, net

0.08%

0.04%

0.03%

0.01%

0.01%







Allowance for loan losses to loans, net

0.70%

0.66%

0.96%

0.96%

0.93%







Earning assets yield (FTE) (3)

5.05%

4.67%

4.22%

4.16%

4.08%







Cost of funds

0.80%

0.74%

0.76%

0.69%

0.60%







Net interest spread (FTE) (3)

4.25%

3.93%

3.46%

3.47%

3.48%







Net interest margin (FTE) (3)

4.38%

4.05%

3.57%

3.58%

3.57%













(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)





Three Months Ended

Mar 31


Mar 31


2018


2017

Interest income:




Interest and fees on loans:




Taxable

$12,241


$4,285

Tax-exempt

234


108

Interest and dividends on investment securities:




Taxable

523


564

Tax-exempt

82


47

Dividends



3

Interest on interest-bearing deposits in other banks

79


23

Interest on federal funds sold

10


6

Total interest income

13,169


5,036





Interest expense:




Interest on deposits

1,554


532

Interest on short-term borrowings

30


22

Interest on long-term debt

176


75

Total interest expense

1,760


629

Net interest income

11,409


4,407

Provision for loan losses

390


605

Net interest income after provision for loan losses

11,019


3,802





Noninterest income:




Service charges, fees and commissions

1,228


337

Commissions and fees on fiduciary activities

210


30

Wealth management income

154


258

Mortgage banking income

170


82

Life insurance investment income

191


73

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



(1)

Total noninterest income

1,953


779





Noninterest expense:




Salaries and employee benefits expense

5,322


2,836

Net occupancy and equipment expense

1,122


646

Amortization of intangible assets

221


164

Net cost of operation of other real estate owned

(1)


36

Other expenses

2,872


1,481

Total noninterest expense

9,536


5,163

Income (loss) before income taxes

3,436


(582)

Provision for income tax expense (benefit)

625


(15)

Net income (loss)

2,811


(567)

    Other comprehensive income (loss):




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

$(1,075)


$512

Reclassification adjustment for (gain) loss included in net income



1

Change in pension liability




Income tax expense (benefit) related to other comprehensive income

(225)


174

Other comprehensive income (loss), net of income taxes

(850)


339

Comprehensive income (loss)

$1,961


$(228)





Per common share data:




Net income (loss):




         Basic

$0.31


$(0.12)

         Diluted

$0.31


$(0.12)

Average common shares outstanding:




         Basic

9,079,043


3,454,704

         Diluted

9,137,706


3,454,704

Cash dividends declared

$0.00


$0.14

 

 

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)







Three months ended

Mar 31

Dec 31

Sept 30

Jun 30

Mar 31


2018

2017

2017

2017

2017

Interest income:






Interest and fees on loans:






Taxable

$  12,241

$  11,483

$  5,717

$  4,989

$  4,285

Tax-exempt

234

239

146

107

108

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






Taxable

523

548

477

566

564

Tax-exempt

82

88

47

46

47

Dividends





3

Interest on interest-bearing deposits in other banks

79

43

31

24

23

Interest on federal funds sold

10


2

4

6

Total interest income

13,169

12,401

6,420

5,736

5,036







Interest expense:






Interest on deposits

1,554

1,468

821

668

532

Interest on short-term borrowings

30

33

112

63

22

Interest on long-term debt

176

173

75

78

75

Total interest expense

1,760

1,674

1,008

809

629

Net interest income

11,409

10,727

5,412

4,927

4,407

Provision for loan losses

390

1,000

610

519

605

Net interest income after provision for loan losses

11,019

9,727

4,802

4,408

3,802







Noninterest income:






Service charges, fees and commissions

1,228

1,138

270

292

337

Commissions and fees on fiduciary activities

210

252

31

31

30

Wealth management income

154

201

179

194

258

Mortgage banking income

170

226

205

147

82

Life insurance investment income

191

195

107

74

73

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


(17)

43

64

(1)

        Total noninterest income

1,953

1,995

835

802

779







Noninterest expense:






Salaries and employee benefits expense

5,322

6,675

2,928

2,757

2,836

Net occupancy and equipment expense

1,122

1,376

615

634

646

Amortization of intangible assets

221

232

71

71

164

Net cost of operation of other real estate owned

(1)

11

(13)

138

36

Other expenses

2,872

4,895

1,566

1,441

1,481

Total noninterest expense

9,536

13,189

5,167

5,041

5,163

Income (loss) before income taxes

3,436

(1,467)

470

169

(582)

Income tax expense (benefit)

625

3,457

69

(10)

(15)

Net income (loss)

$2,811

$(4,924)

$401

$179

$(567)







Other comprehensive income (loss):






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

$(1,075)

$(237)

$(50)

$1,246

$     512

Reclassification adjustment for (gain) loss included in net income


17

(43)

(64)

1

Change in pension liability


(54)




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

(225)

(93)

(32)

402

174

Other comprehensive income (loss), net of income taxes

(850)

(181)

(61)

780

339

Comprehensive income (loss)

$ 1,961

$ (5,105)

$  340

$  959

$  (228)







Per common share data:






Net income (loss):






         Basic

$  0.31

$  (0.55)

$  0.09

$  0.04

$ (0.12)

         Diluted

$ 0.31

$ (0.55)

$  0.09

$  0.04

$ (0.12)

Average common shares outstanding:






         Basic

9,079,043

8,994,617

4,880,676

3,655,446

3,454,704

         Diluted

9,137,706

8,994,617

4,945,456

3,726,939

3,454,704

Cash dividends declared

$  0.00

$  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

Mar 31

Dec 31

Sept 30

Jun 30

Mar 31


2018

2017

2017

2017

2017

Net interest income:






Interest income






Loans, net:






Taxable

$ 12,241

$ 11,483

$ 5,717

$ 4,989

$ 4,285

Tax-exempt

296

362

221

162

164

Total loans, net

12,537

11,845

5,938

5,151

4,449

Investments:






Taxable

523

548

477

566

567

Tax-exempt

104

133

71

70

71

Total investments

627

681

548

636

638

Interest on interest-bearing balances in other banks

79

43

31

24

23

Federal funds sold

10


2

4

6

Total interest income

13,253

12,569

6,519

5,815

5,116

Interest expense:






Deposits

1,554

1,468

821

668

532

Short-term borrowings

30

33

112

63

22

Long-term debt

176

173

75

78

75

Total interest expense

1,760

1,674

1,008

809

629

Net interest income

$11,493

$10,895

$5,511

$5,006

$ 4,487







Yields on earning assets:






Loans, net:






Taxable

5.46%

4.99%

4.40%

4.36%

4.30%

Tax-exempt

3.23%

3.91%

3.94%

3.99%

4.06%

Total loans, net

5.38%

4.94%

4.38%

4.35%

4.30%

Investments:






Taxable

2.76%

2.65%

3.17%

3.35%

3.32%

Tax-exempt

2.66%

3.04%

4.90%

4.89%

5.01%

Total investments

2.74%

2.71%

3.33%

3.47%

3.45%

Interest-bearing balances with banks

1.36%

0.97%

1.35%

0.95%

0.87%

Federal funds sold

1.55%


1.71%

0.94%

0.74%

Total earning assets

5.05%

4.67%

4.22%

4.16%

4.08%

Costs of interest-bearing liabilities:






Deposits

0.72%

0.67%

0.67%

0.62%

0.54%

Short-term borrowings

1.67%

1.39%

1.32%

1.11%

0.86%

Long-term debt

5.41%

5.17%

4.16%

2.81%

2.73%

Total interest-bearing liabilities

0.80%

0.74%

0.76%

0.69%

0.60%

Net interest spread

4.25%

3.93%

3.46%

3.47%

3.48%

Net interest margin

4.38%

4.05%

3.57%

3.58%

3.57%

 

 

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands, except per share data)



Mar 31

Dec 31

Sept 30

Jun 30

Mar 31

At period end

2018

2017

2017

2017

2017







Assets:






Cash and due from banks

$  14,396

$  9,413

$  8,425

$  9,613

$  10,852

Interest-bearing balances in other banks

40,724

16,373

10,741

6,064

11,552

Federal funds sold

4,729





Investment securities available-for-sale

88,773

93,201

56,874

67,852

72,741

Loans held for sale

610

254

519

1,037

522

Loans, net

934,190

955,971

560,187

504,749

464,481

Less: allowance for loan losses

6,515

6,306

5,404

4,834

4,329

Net loans

927,675

949,665

554,783

499,915

460,152

Premises and equipment, net

18,714

18,631

12,163

12,132

12,116

Accrued interest receivable

2,865

3,237

1,995

1,651

1,881

Goodwill

24,754

24,754

5,079

5,079

5,079

Other intangible assets, net

4,155

4,376

1,099

1,170

1,241

Other assets

43,771

43,703

29,701

23,728

24,237

Total assets

$1,171,166

$1,163,607

$681,379

$628,241

$600,373













Liabilities:






Deposits:






Noninterest-bearing

$  157,011

$  155,895

$  76,214

$  76,096

$  79,127

Interest-bearing

881,594

870,585

498,736

447,799

417,380

Total deposits

1,038,605

1,026,480

574,950

523,895

496,507

Short-term borrowings


6,000

37,250

30,000

30,000

Long-term debt

13,160

13,233

6,503

11,589

11,073

Accrued interest payable

466

468

213

194

203

Other liabilities

10,535

11,170

5,084

5,048

5,499

Total liabilities

1,062,766

1,057,351

624,000

570,726

543,282







Stockholders' equity:






Preferred stock





13,283

Common stock

100,660

100,476

45,427

45,240

31,833

Capital surplus

422

423

243

235

224

Retained earnings

9,747

6,936

12,848

13,118

13,609

Accumulated other comprehensive income (loss)

(2,429)

(1,579)

(1,139)

(1,078)

(1,858)

Total stockholders' equity

108,400

106,256

57,379

57,515

57,091

Total liabilities and stockholders' equity

$1,171,166

$1,163,607

$681,379

$628,241

$600,373

 

 

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands except per share data)



Mar 31

Dec 31

Sept 30

Jun 30

Mar 31

Average quarterly balances

2018

2017

2017

2017

2017







Assets:






Loans, net:






Taxable

$908,574

$913,623

$515,494

$458,702

$403,684

Tax-exempt

37,153

36,750

22,246

16,285

16,396

Total loans, net

945,727

950,373

537,740

474,987

420,080

Investments:






Taxable

76,952

82,180

59,612

67,753

69,253

Tax-exempt

15,836

17,345

5,746

5,747

5,748

Total investments

92,788

99,525

65,358

73,500

75,001

Interest-bearing balances with banks

23,607

17,615

9,143

10,137

10,662

Federal funds sold

2,617

48

465

1,709

3,293

Total earning assets

1,064,739

1,067,561

612,706

560,333

509,036

Other assets

98,503

101,120

52,770

49,382

49,025

Total assets

$1,163,242

$1,168,681

$665,476

$609,715

$558,061







Liabilities and stockholders' equity:






Deposits:






Interest-bearing

$875,985

$873,596

$483,648

$435,033

$402,339

Noninterest-bearing

149,123

150,515

77,819

77,440

73,188

Total deposits

1,025,108

1,024,111

561,467

512,473

475,527

Short-term borrowings

7,297

9,403

33,707

22,838

10,324

Long-term debt

13,205

13,271

7,151

11,146

11,122

Other liabilities

9,996

10,053

5,700

5,909

6,325

Total liabilities

1,055,606

1,056,838

608,025

552,366

503,298

Stockholders' equity

107,636

111,843

57,451

57,349

54,763

Total liabilities and stockholders' equity

$1,163,242

$1,168,681

$665,476

$609,715

$558,061

 

 

Riverview Financial Corporation

Asset Quality Data

(In thousands)








Mar 31

Dec 31

Sept 30

Jun 30

Mar 31


2018

2017

2017

2017

2017

At quarter end:






Nonperforming assets:






Nonaccrual  loans

$2,629

$1,745

$1,765

$1,702

$1,725

Accruing restructured loans

5,310

5,478

5,168

5,199

5,597

Accruing loans past due 90 days or more

393

693


35

189

Foreclosed assets

92

236

144

205

561

Total nonperforming assets

$8,424

$8,152

$7,077

$7,141

$8,072







Three months ended:






Allowance for loan losses:






Beginning balance

$6,306

$5,404

$4,834

$4,329

$3,732

Charge-offs

226

142

42

21

12

Recoveries

45

44

2

7

4

Provision for loan losses

390

1,000

610

519

605

Ending balance

$6,515

$6,306

$5,404

$4,834

$4,329

 

 

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)



Mar 31

Dec 31

Sept 30

Jun 30

Mar 31

Three months ended:

2018

2017

2017

2017

2017

Core net income (loss) per common share:






Net income (loss)

$2,811

$(4,924)

$401

$179

$(567)

Dividends on preferred stock




(186)

(185)

Net income (loss) available to common stockholders

2,811

(4,924)

401

(7)

(752)

Undistributed loss (income) allocated to preferred stockholders




128

347

Income (loss) allocated to common stockholders

2,811

(4,924)

401

121

(405)

Adjustments:






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


(11)

28

42

(1)

Add: Acquisition related expenses, net of tax

342

2,177

70

111

67

Add: Tax Cuts and Jobs Act tax expense


3,888




Net income (loss) Core

$3,153

$1,152

$443

$190

$(337)







Average common shares outstanding

9,079,043

8,994,617

4,880,676

3,655,446

3,454,704

Core net income (loss) per common share

$  0.35

$  0.13

$  0.09

$  0.05

$   (0.10)







Tangible book value:






Total stockholders' equity

$108,400

$106,256

$57,379

$57,515

$43,808

Less: Goodwill

24,754

24,754

5,079

5,079

5,079

Less: Other intangible assets, net

4,155

4,376

1,099

1,170

1,241

Total tangible stockholders' equity

$79,491

$77,126

$51,201

$51,266

$37,488







Common shares outstanding

9,084,277

9,069,363

4,892,143

4,876,774

3,518,351

Tangible book value per share

$  8.75

$  8.50

$  10.47

$  10.51

$   10.65







Core return on average stockholders' equity:






Net income (loss) GAAP

$2,811

$(4,924)

$401

$179

$(567)

Adjustments:






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


(11)

28

42

(1)

Add: Acquisition related expenses, net of tax

342

2,177

70

111

67

Add: Tax Cuts and Jobs Act tax expense


3,888




Net income (loss) Core

$3,153

$1,152

$443

$248

$(499)







Average stockholders' equity

$  107,636

$  111,843

$  57,451

$  57,349

$   54,763

Core return on average stockholders' equity

11.88%

4.09%

3.06%

1.73%

(3.70)%







Return on average tangible equity:






Net income (loss) GAAP

$2,811

$(4,924)

$       401

$       179

$     (567)







Average stockholders' equity

$ 107,636

$ 111,843

$ 57,451

$ 57,349

$  54,763

Less: average intangibles

29,021

30,013

6,213

6,284

6,765

Average tangible stockholders' equity

$  78,615

$  81,830

$  51,238

$  51,065

$   47,998







Return on average tangible stockholders' equity

14.50%

(23.87)%

3.10%

1.41%

(4.79)%







Core return on average tangible stockholders' equity:






Net income (loss) GAAP

$2,811

$(4,924)

$401

$179

$(567)

Adjustments:






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


(11)

28

42

(1)

Add: Acquisition related expenses, net of tax

342

2,177

70

111

67

Add: Tax Cuts and Jobs Act tax expense


3,888




Net income (loss) Core

$3,153

$1,152

$443

$248

$(499)







Average stockholders' equity

$ 107,636

$ 111,843

$  57,451

$  57,349

$   54,763

Less: average intangibles

29,021

30,013

6,213

6,284

6,765

Average tangible stockholders' equity

$  78,615

$  81,830

$  51,238

$  51,065

$   47,998







Core return on average tangible stockholders' equity

16.27%

5.59%

3.43%

1.95%

(4.22)%







Core return on average assets:






Net income (loss) GAAP

$2,811

$(4,924)

$401

$179

$(567)

Adjustments:






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


(11)

28

42

(1)

Add: Acquisition related expenses, net of tax

342

2,177

70

111

67

Add: Tax Cuts and Jobs Act tax expense


3,888




Net income (loss) Core

$3,153

$1,152

$443

$248

$(499)







Average assets

$  1,163,242

$  1,168,681

$  665,476

$  609,715

$  558,061

Core return on average assets

1.10%

0.39%

0.26%

0.16%

(0.36)%

 

 

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)







Mar 31

Mar 31



2018

2017

Three months ended:








Core net income per common share:




Net income (loss)


$2,811

$(567)

Dividends on preferred stock



(185)

Net income available to common stockholders


2,811

(752)

Undistributed loss allocated to preferred stockholders



347

Income allocated to common stockholders


2,811

(405)

Adjustments:




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



(1)

   Add: Acquisition related expenses, net of tax


342

67

   Add: Tax Cuts and Jobs Act of 2017 tax expense




Net income (loss) core


$3,153

$(337)





Average common shares outstanding


9,079,043

3,454,704





Core net income (loss) per common share


$0.35

$(0.10)

 

 

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SOURCE Riverview Financial Corporation