Riverview Financial Corporation Reports Third Quarter 2017 Financial Results

Montag, 23.10.2017 23:35 von PR Newswire

PR Newswire

HARRISBURG, Pa., Oct. 23, 2017 /PRNewswire/ -- Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), the financial holding company for Riverview Bank, today reported unaudited financial results at and for the three and nine months ended September 30, 2017.  Riverview reported net income of $401 thousand, or $0.08 per basic and diluted weighted average common share, for the third quarter of 2017, compared to net income of $971 thousand, or $0.30 per basic and diluted weighted average common share, for the comparable period of 2016.

 (PRNewsfoto/Riverview Financial Corporation)

For the nine months ended September 30, 2017, Riverview reported net income of $13 thousand, or $0.03 per basic and diluted weighted average common share, compared to $2,579 thousand, or $0.80 per basic and diluted weighted average common share, for the same period last year. The reduction in comparable net income for the nine months ended September 30, 2017 was a direct result of incurring certain costs related to implementing strategic initiatives to enhance shareholder value through asset growth provided by organic and inorganic opportunities. On January 20, 2017, Riverview announced the successful completion of a $17.0 million private placement of common and 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. More notably 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.

HIGHLIGHTS

  • Loans, net grew $150.8 million or 36.9% for the nine months ended September 30, 2017.
  • 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 and $55.4 million or 11.0% in the third quarter.
  • Deposits increased $122.4 million, or 27.0%, to $575.0 million at the end of the third quarter of 2017 from $452.6 at year end 2016.
  • For the quarters of 2017, deposits grew $43.9 million or 9.7% in the first quarter, $27.4 million or 5.5% in the second  quarter and $51.1 million or 9.7% in the third quarter,
  • Stockholders' equity increased $15.5 million to $57.4 million, or 8.4% of total assets, at September 30, 2017 as a result of the capital offering that occurred earlier in 2017.
  • Asset quality continues to trend positively as nonperforming assets as a percentage of loans, net and other real estate owned declined to 1.26% at September 30, 2017 compared to 1.41% at June 30, 2017 and 2.15% at September 30, 2016.
  • Tax-equivalent net interest income continued to display linked quarter improvement in 2017 increasing from $4.5 million in the first quarter, to $ 5.0 million in the second quarter and $5.5 million in the third quarter. 
  • For the nine months ended September 30, 2017 and 2016, noninterest income from fiduciary and wealth management activities improved $133 thousand or 14.3%.

"We completed the merger with CBT Financial Corp. effective October 1, 2017 and are pleased to welcome their customers, shareholders, and employees to Riverview.  We are confident that shareholders will recognize the exceptional value created through the combination of two community banks having long established histories of providing excellent service and extensive community support to Central and Southwestern Pennsylvania. This merger was a logical step in our announced strategy to expand throughout Central Pennsylvania and into markets with attractive demographics and long-term growth potential. The addition of our new lending teams has provided net loan growth of more than $55.4 million in the third quarter and $150.8 million for the nine months ended September 30, 2017," stated Kirk D. Fox, Chief Executive Officer. "In addition to the completion of the merger, we are pleased to announce the opening of a new branch office in Williamsport, PA, which is our entrance into the Lycoming County market," concluded Fox.  

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 has 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, "year-to-date 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 obvious 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.  However, 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 nine months ended September 30 were $5.5 million and $15.0 million in 2017 compared to $4.8 million and $14.0 million in 2016, respectively.  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 increase in interest earning assets exceeded the growth of average interest bearing liabilities by $15.2 million comparing the third quarters of 2017 and 2016. For the three months ended September 30, the tax-equivalent net interest margin decreased to 3.57% in 2017 from 3.99% in 2016. Average earning assets increased $76.1 million while average interest bearing liabilities increased $56.4 million comparing the nine months ended September 30, 2017 and 2016. Loans, net averaged $478.0 million in 2017 and $402.9 million in 2016. Average investments totaled $71.3 million in 2017 and $72.1 million in 2016. The tax-equivalent net interest margin for the nine months ended September 30, 2017, declined 27 basis points from 3.85% for the comparable period of 2016. The tax-equivalent yield on the loan portfolio decreased to 0.21% in 2017 compared to 4.56% in 2016. For the nine months ended September 30, the tax-equivalent yield on earning assets decreased to 4.16% in 2017 from 4.30% in 2016. The cost of funds increased 16 basis points in 2017 from 0.53% in 2016. The tax-equivalent net interest margin decreased slightly by 1 basis point to 3.57% in the third quarter of 2017 from 3.58% in the second quarter of 2017.  Average earning assets increased $52.4 million while average interest bearing liabilities increased $55.5 million comparing the third and second quarters of 2017.

For the quarter ended September 30, the provision for loan losses increased to $610 thousand in 2017 from $29 thousand in 2016. The provision for loan losses totaled $1.7 million for the nine months ended September 30, 2017, compared to $284 thousand in 2016. The increase in the provision for loan losses in 2017 was primarily influenced by significant loan growth originated through the successful hiring of teams of lenders.  

For the three months ended September 30, noninterest income totaled $835 thousand in 2017, a decrease of $188 thousand from $1,023 thousand in 2016. The decrease was primarily attributable to a decrease in net gains recognized on the sale of available-for-sale investment securities. Wealth management income decreased $15 thousand while mortgage banking income decreased $5 thousand comparing the third quarters of 2017 and 2016. For the nine months ended, noninterest income decreased to $2.4 million in 2017 from $2.7 million in 2016. The year over year decrease of $378 thousand in net gains recognized on the sale of available-for-sale investment securities was partially offset by improvements in wealth management income of $100 thousand.

For the quarter ended September 30, noninterest expense increased $834 thousand to $5.2 million in 2017 from $4.3 million in 2016. Noninterest expense increased $2.7 million, or 21.3%, to $15.4 million for the nine months ended September 30, 2017, from $12.7 million for the same period last year. The majority of the increase in salaries and employee benefit expense was the result of hiring lending teams and related costs, as well as the opening of new, full service offices in Temple, Berks County, Pennsylvania and Williamsport, Lycoming County, Pennsylvania. Additions to leased facilities for these newly opened offices along with offices to support the lending teams were primarily responsible for the $278 thousand, or 17.2%, increase in occupancy and equipment costs. The increase in other expenses comparing the nine months ended September 30, 2017 and 2016 was a result of incurring merger related costs of $375 thousand in 2017.

BALANCE SHEET REVIEW

Total assets, loans, net and deposits totaled $681.4 million, $560.2 million, and $575.0 million, respectively, at September 30, 2017. Loans, net increased $55.4 million, or 11.0% in the third quarter of 2017 and $150.8 million, or 36.9%, for the nine months ended September 30, 2017. Growth in commercial loans was primarily responsible for the majority of the improvement. Total deposits increased $51.1 million, or 9.7%, in the third quarter of 2017 and $122.4 million, or 27.0%, for the nine months ended September 30, 2017. Noninterest-bearing deposits increased $2.3 million, while interest-bearing deposits increased $120.1 million for the nine months ended September 30, 2017. An improvement in the volume of money market accounts was primarily responsible for the increase in interest-bearing deposits.

Stockholders' equity totaled $57.4 million, or $11.73 per common share, at September 30, 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 the result of 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. Effective as of the close of business on June 22, 2017, Riverview filed an amendment to the 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. The non-voting common stock has the same relative rights as, and is identical in all respects with, each other share of common stock of Riverview, except that holders of non-voting common stock do not have voting rights. Tangible stockholders' equity per common share decreased to $10.47 per share at September 30, 2017, compared to $10.84 per share at year-end 2016. Dividends declared for the nine months ended September 30, 2017 amounted to $0.41 per share. The annualized dividend yield based on the closing price of $13.20 per share on September 30, 2017 was 4.2%.

ASSET QUALITY REVIEW

Nonperforming assets were $7.1 million, or 1.3% of loans, net and foreclosed assets at September 30, 2017, an improvement from $8.2 million, or 2.0%, at December 31, 2016, and $8.6 million, or 2.2%, at September 30, 2016. Adjusting for accruing restructured loans, non-performing assets were $1.9 million, or 0.3% of loans, net and foreclosed assets at September 30, 2017, $2.4 million or 0.6% at December 31, 2016, and $2.6 million, or 0.7%, at September 30, 2016. The allowance for loan losses equaled $5.4 million, or 0.96% of loans, net at September 30, 2017, compared to $3.7 million, or 0.91% of loans, net at December 31, 2016, and $3.6 million, or 0.91% of loans, net, at September 30, 2016. Loans charged-off, net of recoveries, for the three and nine months ended September 30, equaled $40 thousand and $62 thousand in 2017, respectively, compared to $1 thousand and $1.0 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, CBT Investment Services, Inc. and CBT Financial and Trust Management. An independent community bank, Riverview Bank serves the  Pennsylvania market area 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 provides 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 nine months ended September 30, 2017 and 2016, contain items which Riverview considers non-core, namely net gains on sales of investment securities available-for-sale and acquisition related expenses. 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)








Sept 30

Jun 30

Mar 31

Dec 31

Sept 30


2017

2017

2017

2016

2016

Key performance data:












Per common share data:






Net income (loss)

$  0.08

$  0.04

$(0.12)

$  0.15

$  0.30

Core net income (loss) (1)

$  0.09

$  0.05

$(0.10)

$  0.15

$  0.27

Cash dividends declared

$  0.14

$  0.14

$  0.14

$  0.14

$  0.14

Book value

$11.73

$11.79

$12.45

$12.95

$13.67

Tangible book value (1)

$10.47

$10.51

$10.65

$10.84

$11.54

Market value:






High

$13.50

$14.50

$12.20

$11.78

$12.20

Low

$12.15

$11.69

$11.46

$11.05

$11.00

Closing

$13.20

$13.48

$11.95

$11.60

$11.40

Market capitalization

$64,576

$65,739

$42,044

$37,559

$36,816

Common shares outstanding

4,892,143

4,876,774

3,518,351

3,237,859

3,229,467







Selected ratios:












Return on average stockholders' equity

2.77%

1.25%

(4.20)%

4.50%

8.73%







Core return on average stockholders' equity (1)

3.05%

1.73%

(3.70)%

4.50%

7.86%







Return on average tangible stockholders' equity (1)

3.10%

1.41%

(4.79)%

5.34%

10.36%







Core return on average tangible stockholders' equity (1)

3.42%

1.95%

(4.22)%

5.34%

9.33%







Return on average assets

0.24%

0.12%

(0.41)%

0.36%

0.73%







Core return on average assets (1)

0.26%

0.16%

(0.36)%

0.36%

0.66%







Stockholders' equity to total assets

8.42%

9.15%

9.51%

7.72%

8.38%







Efficiency ratio (2)

80.85%

86.53%

94.91%

82.02%

74.26%







Nonperforming assets to loans, net, and foreclosed assets

1.26%

1.41%

1.74%

1.99%

2.15%







Net charge-offs to average loans, net

0.03%

0.01%

0.01%

0.07%

0.00%







Allowance for loan losses to loans, net

0.96%

0.96%

0.93%

0.91%

0.91%







Earning assets yield (FTE) (3)

4.22%

4.16%

4.08%

4.19%

4.43%







Cost of funds

0.76%

0.69%

0.60%

0.51%

0.51%







Net interest spread (FTE) (3)

3.46%

3.47%

3.48%

3.68%

3.92%







Net interest margin (FTE) (3)

3.57%

3.58%

3.57%

3.76%

3.99%







(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 of 34%.

 

 

Riverview Financial Corporation

Consolidated Statements of Income

(In thousands, except per share data)





Nine Months Ended

Sept 30


Sept 30


2017


2016

Interest income:




Interest and fees on loans:




Taxable

$14,991


$13,362

Tax-exempt

361


261

Interest and dividends on investment securities:




Taxable

1,607


1,375

Tax-exempt

140


280

Dividends

3


8

Interest on interest-bearing deposits in other banks

78


41

Interest on federal funds sold

12


2

Total interest income

17,192


15,329





Interest expense:




Interest on deposits

2,021


1,375

Interest on short-term borrowings

197


59

Interest on long-term debt

228


214

Total interest expense

2,446


1,648

Net interest income

14,746


13,681

Provision for loan losses

1,734


284

Net interest income after provision for loan losses

13,012


13,397





Noninterest income:




Service charges, fees and commissions

899


933

Commissions and fees on fiduciary activities

92


88

Wealth management income

631


531

Mortgage banking income

434


401

Life insurance investment income

254


276

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

106


484

Total noninterest income

2,416


2,713





Noninterest expense:




Salaries and employee benefits expense

8,521


6,611

Net occupancy and equipment expense

1,895


1,617

Amortization of intangible assets

306


247

Net cost of operation of other real estate owned

161


214

Other expenses

4,488


4,004

Total noninterest expense

15,371


12,693

Income (loss) before income taxes

57


3,417

Provision for income tax expense (benefit)

44


838

Net income (loss)

$ 13


$2,579





    Other comprehensive income (loss):




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

$1,708


$940

Reclassification adjustment for (gain) loss included in net income

(106)


(484)

Change in pension liability




Income tax expense (benefit) related to other comprehensive income

544


155

Other comprehensive income (loss), net of income taxes

1,058


301

Comprehensive income (loss)

$1,071


$2,880





Per common share data:




Net income (loss):




         Basic

$0.03


$0.80

         Diluted

$0.03


$0.80

Average common shares outstanding:




         Basic

4,002,165


3,214,967

         Diluted

4,060,813


3,237,533

Cash dividends declared

$0.41


$0.41














Riverview Financial Corporation

Consolidated Statements of Income

(In thousands, except per share data)







Three months ended

Sept 30

Jun 30

March 31

Dec 31

Sept 30


2017

2017

2017

2016

2016

Interest income:






Interest and fees on loans:






Taxable

$  5,717

$  4,989

$  4,285

$  4,203

$  4,598

Tax-exempt

146

107

108

190

87

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






Taxable

477

566

564

556

539

Tax-exempt

47

46

47

46

53

Dividends



3


1

Interest on interest-bearing deposits in other banks

31

24

23

12

13

Interest on federal funds sold

2

4

6



Total interest income

6,420

5,736

5,036

5,007

5,291







Interest expense:






Interest on deposits

821

668

532

418

447

Interest on short-term borrowings

112

63

22

25

3

Interest on long-term debt

75

78

75

81

77

Total interest expense

1,008

809

629

524

527

Net interest income

5,412

4,927

4,407

4,483

4,764

Provision for loan losses

610

519

605

169

29

Net interest income after provision for loan losses

4,802

4,408

3,802

4,314

4,735







Noninterest income:






Service charges, fees and commissions

270

292

337

345

315

Commissions and fees on fiduciary activities

31

31

30

30

34

Wealth management income

179

194

258

294

194

Mortgage banking income

205

147

82

196

210

Life insurance investment income

107

74

73

69

118

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

43

64

(1)


152

        Total noninterest income

835

802

779

934

1,023







Noninterest expense:






Salaries and employee benefits expense

2,928

2,757

2,836

2,650

2,334

Net occupancy and equipment expense

615

634

646

548

538

Amortization of intangible assets

71

71

164

93

95

Net cost of operation of other real estate owned

(13)

138

36

117

83

Other expenses

1,566

1,441

1,481

1,228

1,283

Total noninterest expense

5,167

5,041

5,163

4,636

4,333

Income (loss) before income taxes

470

169

(582)

612

1,425

Income tax expense (benefit)

69

(10)

(15)

124

454

Net income (loss)

$401

$179

$(567)

$488

$971







Other comprehensive income (loss):






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

$(50)

$1,246

$     512

$(3,668)

$  (148)

Reclassification adjustment for (gain) loss included in net income

(43)

(64)

1


(152)

Change in pension liability




47


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

(32)

402

174

(1,231)

(102)

Other comprehensive income (loss), net of income taxes

(61)

780

339

(2,390)

(198)

Comprehensive income (loss)

$  340

$  959

$  (228)

$(1,902)

$     773







Per common share data:






Net income (loss):






         Basic

$  0.08

$  0.04

$ (0.12)

$    0.15

$   0.30

         Diluted

$  0.08

$  0.04

$ (0.12)

$    0.15

$   0.30

Average common shares outstanding:






         Basic

4,880,676

3,655,446

3,454,704

3,232,359

3,224,053

         Diluted

4,945,456

3,726,939

3,454,704

3,254,719

3,244,689

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

Sept 30

Jun 30

Mar 31

Dec 31

Sept 30


2017

2017

2017

2016

2016

Net interest income:






Interest income






Loans, net:






Taxable

$ 5,717

$ 4,989

$ 4,285

$ 4,203

$ 4,598

Tax-exempt

221

162

164

288

132

Total loans, net

5,938

5,151

4,449

4,491

4,730

Investments:






Taxable

477

566

567

556

540

Tax-exempt

71

70

71

70

80

Total investments

548

636

638

626

620

Interest on interest-bearing balances in other banks

31

24

23

12

13

Federal funds sold

2

4

6



Total interest income

6,519

5,815

5,116

5,129

5,363

Interest expense:






Deposits

821

668

532

418

447

Short-term borrowings

112

63

22

25

3

Long-term debt

75

78

75

81

77

Total interest expense

1,008

809

629

524

527

Net interest income

$5,511

$5,006

$ 4,487

$ 4,605

$ 4,836







Yields on earning assets:






Loans, net:






Taxable

4.40%

4.36%

4.30%

4.26%

4.71%

Tax-exempt

3.94%

3.99%

4.06%

9.16%

4.50%

Total loans, net

4.38%

4.35%

4.30%

4.42%

4.70%

Investments:






Taxable

3.17%

3.35%

3.32%

3.28%

3.30%

Tax-exempt

4.90%

4.89%

5.01%

4.84%

4.88%

Total investments

3.33%

3.47%

3.45%

3.40%

3.44%

Interest-bearing balances with banks

1.35%

0.95%

0.87%

0.49%

0.55%

Federal funds sold

1.71%

0.94%

0.74%



Total earning assets

4.22%

4.16%

4.08%

4.19%

4.43%

Costs of interest-bearing liabilities:






Deposits

0.67%

0.62%

0.54%

0.43%

0.45%

Short-term borrowings

1.32%

1.11%

0.86%

0.65%

0.56%

Long-term debt

4.16%

2.81%

2.73%

2.88%

2.71%

Total interest-bearing liabilities

0.76%

0.69%

0.60%

0.51%

0.51%

Net interest spread

3.46%

3.47%

3.48%

3.68%

3.92%

Net interest margin

3.57%

3.58%

3.57%

3.76%

3.99%

 

 

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands, except per share data)








Sept 30

Jun 30

Mar 31

Dec 31

Sept 30

At period end

2017

2017

2017

2016

2016







Assets:






Cash and due from banks

$  8,425

$  9,613

$  10,852

$   7,783

$   7,066

Interest-bearing balances in other banks

10,741

6,064

11,552

11,337

9,051

Federal funds sold






Investment securities available-for-sale

56,874

67,852

72,741

73,113

72,371

Loans held for sale

519

1,037

522

652

820

Loans, net

560,187

504,749

464,481

409,343

398,193

Less: allowance for loan losses

5,404

4,834

4,329

3,732

3,637

Net loans

554,783

499,915

460,152

405,611

394,556

Premises and equipment, net

12,163

12,132

12,116

12,201

12,287

Accrued interest receivable

1,995

1,651

1,881

1,726

1,701

Goodwill

5,079

5,079

5,079

5,408

5,408

Other intangible assets, net

1,099

1,170

1,241

1,405

1,497

Other assets

29,701

23,728

24,237

23,812

22,321

Total assets

$681,379

$628,241

$600,373

$543,048

$527,078













Liabilities:






Deposits:






Noninterest-bearing

$  76,214

$  76,096

$  79,127

$  73,932

$  71,329

Interest-bearing

498,736

447,799

417,380

378,628

387,664

Total deposits

574,950

523,895

496,507

452,560

458,993

Short-term borrowings

37,250

30,000

30,000

31,500

6,000

Long-term debt

6,503

11,589

11,073

11,154

11,257

Accrued interest payable

213

194

203

192

220

Other liabilities

5,084

5,048

5,499

5,722

6,447

Total liabilities

624,000

570,726

543,282

501,128

482,917







Stockholders' equity:






Preferred stock



13,283



Common stock

45,427

45,240

31,833

29,052

28,955

Capital surplus

243

235

224

220

211

Retained earnings

12,848

13,118

13,609

14,845

14,802

Accumulated other comprehensive income (loss)

(1,139)

(1,078)

(1,858)

(2,197)

193

Total stockholders' equity

57,379

57,515

57,091

41,920

44,161

Total liabilities and stockholders' equity

$681,379

$628,241

$600,373

$543,048

$527,078

 

 

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands except per share data)



Sept 30

Jun 30

Mar 31

Dec 31

Sept 30

Average quarterly balances

2017

2017

2017

2016

2016







Assets:






Loans, net:






Taxable

$515,494

$458,702

$403,684

$392,085

$388,752

Tax-exempt

22,246

16,285

16,396

12,510

11,675

Total loans, net

537,740

474,987

420,080

404,595

400,427

Investments:






Taxable

59,612

67,753

69,253

67,423

65,126

Tax-exempt

5,746

5,747

5,748

5,750

6,524

Total investments

65,358

73,500

75,001

73,173

71,650

Interest-bearing balances with banks

9,143

10,137

10,662

9,716

9,371

Federal funds sold

465

1,709

3,293

31

199

Total earning assets

612,706

560,333

509,036

487,515

481,647

Other assets

52,770

49,382

49,025

45,300

49,010

Total assets

$665,476

$609,715

$558,061

$532,815

$530,657







Liabilities and stockholders' equity:






Deposits:






Interest-bearing

$483,648

$435,033

$402,339

$384,278

$395,272

Noninterest-bearing

77,819

77,440

73,188

72,227

70,956

Total deposits

561,467

512,473

475,527

456,505

466,228

Short-term borrowings

33,707

22,838

10,324

15,213

2,114

Long-term debt

7,151

11,146

11,122

11,203

11,284

Other liabilities

5,700

5,909

6,325

6,709

6,799

Total liabilities

608,025

552,366

503,298

489,630

486,425

Stockholders' equity

57,451

57,349

54,763

43,185

44,232

Total liabilities and stockholders' equity

$665,476

$609,715

$558,061

$532,815

$530,657

 

 

Riverview Financial Corporation

Asset Quality Data

(In thousands)








Sept 30

Jun 30

Mar 31

Dec 31

Sept 30


2017

2017

2017

2016

2016

At quarter end:






Nonperforming assets:






Nonaccrual  loans

$1,765

$1,702

$1,725

$1,386

$1,463

Accruing restructured loans

5,168

5,199

5,597

5,805

6,017

Accruing loans past due 90 days or more


35

189

359

133

Foreclosed assets

144

205

561

625

988

Total nonperforming assets

$7,077

$7,141

$8,072

$8,175

$8,601







Three months ended:






Allowance for loan losses:






Beginning balance

$4,834

$4,329

$3,732

$3,637

$3,609

Charge-offs

42

21

12

78

35

Recoveries

2

7

4

4

34

Provision for loan losses

610

519

605

169

29

Ending balance

$5,404

$4,834

$4,329

$3,732

$3,637

 

 

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)








Sept 30

Jun 30

Mar 31

Dec 31

Sept 30


2017

2017

2017

2016

2016

Three months ended:






Core net income (loss) per common share:






Net income (loss)

$401

$179

$(567)

$488

$971

Dividends on preferred stock


(186)

(185)



Net income (loss) available to common stockholders

401

(7)

(752)

488

971

Undistributed loss (income) allocated to preferred stockholders


128

347



Income (loss) allocated to common stockholders

401

121

(405)

488

971

Adjustments:






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

29

42

(1)


100

Add: Acquisition related expenses, net of tax

70

111

67


3

Net income (loss) Core

$442

$190

$(337)

$488

$874







Average common shares outstanding

4,880,676

3,655,446

3,454,704

3,232,359

3,224,053







Core net income (loss) per common share

$  0.09

$  0.05

$   (0.10)

$   0.15

$   0.27







Tangible book value:






Total stockholders' equity

$57,379

$57,515

$43,808

$41,920

$44,161

Less: Goodwill

5,079

5,079

5,079

5,408

5,408

Less: Other intangible assets, net

1,099

1,170

1,241

1,405

1,497

Total tangible stockholders' equity

$51,201

$51,266

$37,488

$35,107

$37,256







Common shares outstanding

4,892,143

4,876,774

3,518,351

3,237,859

3,229,467







Tangible book value per share

$  10.47

$  10.51

$   10.65

$   10.84

$   11.54







Core return on average stockholders' equity:






Net income (loss) GAAP

$401

$179

$(567)

$488

$971

Adjustments:






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

29

42

(1)


100

Add: Acquisition related expenses, net of tax

70

111

67


3

Net income (loss) Core

$442

$248

$(499)

$488

$874







Average stockholders' equity

$  57,451

$  57,349

$   54,763

$     43,185

$     44,232







Core return on average stockholders' equity

3.05%

1.73%

(3.70)%

4.50%

7.86%







Return on average tangible equity:






Net income (loss) GAAP

$       401

$       179

$     (567)

$         488

$          971







Average stockholders' equity

$ 57,451

$ 57,349

$  54,763

$   43,185

$    44,232

Less: average intangibles

6,213

6,284

6,765

6,857

6,956

Average tangible stockholders' equity

$  51,238

$  51,065

$   47,998

$    36,328

$     37,276







Return on average tangible stockholders' equity

3.10%

1.41%

(4.79)%

5.34%

10.36%







Core return on average tangible stockholders' equity:






Net income (loss) GAAP

$401

$179

$(567)

$488

$971

Adjustments:






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

29

42

(1)


100

Add: Acquisition related expenses, net of tax

70

111

67


3

Net income (loss) Core

$442

$248

$(499)

$488

$874







Average stockholders' equity

$  57,451

$  57,349

$   54,763

$    43,185

$    44,232

Less: average intangibles

6,213

6,284

6,765

6,857

6,956

Average tangible stockholders' equity

$  51,238

$  51,065

$   47,998

$    36,328

$    37,276







Core return on average tangible stockholders' equity

3.42%

1.95%

(4.22)%

5.34%

9.33%







Core return on average assets:






Net income (loss) GAAP

$401

$179

$(567)

$488

$971

Adjustments:






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

29

42

(1)


100

Add: Acquisition related expenses, net of tax

70

111

67


3

Net income (loss) Core

$442

$248

$(499)

$488

$874







Average assets

$  665,476

$  609,715

$  558,061

$  532,815

$  530,657

Core return on average assets

0.26%

0.16%

(0.36)%

0.36%

0.66%

 

 


Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)




Sept 30

Sept 30



2017

2016

Nine months ended:








Core net income per common share:




Net income (loss)


$13

$2,579

Dividends on preferred stock


(371)


Net income (loss) available to common stockholders


(358)

2,579

Undistributed loss allocated to preferred stockholders


475


Income (loss) allocated to common stockholders


117

2,579

Adjustments:




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


70

319

Add: Acquisition related expenses, net of tax


248

147

Net income Core


$295

$2,407





Average common shares outstanding


4,002,165

3,214,967





Core net income (loss) per common share


$0.08

$0.75

 

 

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SOURCE Riverview Financial Corporation

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