Riverview Financial Corporation Reports First Quarter 2018 Financial Results

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 Werbung Mehr Nachrichten zur RIVERVIEW FINL CORP Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:00 - PR Newswire Moonpig Group Plc - Holding(s) in Company 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Accrol Group Holdings plc 08:18 - PR Newswire Cohen & Steers Capital Management - Form 8.3 - Tritax Big Box REIT plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59