UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 30, 2007
RIVERVIEW BANCORP, INC.
(Exact name of registrant as specified in its charter)
Washington 0-22957 91-1838969
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
900 Washington Street, Suite 900, Vancouver, Washington 98660
(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code): (360) 693-6650
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On March 30, 2007, Riverview Bancorp, Inc. determined that it had not
filed the following earnings releases:
* Earnings release dated July 15, 2003 for the quarter ended June 30,
2003 (a copy of the press release is attached hereto as Exhibit 99.1
and is incorporated herein by reference)
* Earnings release dated October 27, 2003 for the quarter ended
September 30, 2003 (a copy of the press release is attached hereto as
Exhibit 99.2 and is incorporated herein by reference)
* Earnings release dated January 21, 2004 for the quarter ended
December 31, 2003 (a copy of the press release is attached hereto as
Exhibit 99.3 and is incorporated herein by reference)
* Earnings release dated May 4, 2004 for the year and quarter ended
March 31, 2004 (a copy of the press release is attached hereto as
Exhibit 99.4 and is incorporated herein by reference)
* Earnings release dated January 25, 2005 for the quarter ended
December 31, 2004 (a copy of the press release is attached hereto as
Exhibit 99.5 and is incorporated herein by reference)
* Earnings release dated May 13, 2005 for the year and quarter ended
March 31, 2005 (a copy of the press release is attached hereto as
Exhibit 99.6 and is incorporated herein by reference)
* Earnings release dated July 18, 2005 for the quarter ended June 30,
2005 (a copy of the press release is attached hereto as Exhibit 99.7
and is incorporated herein by reference)
* Earnings release dated October 17, 2005 for the quarter ended
September 30, 2005 (a copy of the press release is attached hereto as
Exhibit 99.8 and is incorporated herein by reference)
* Earnings release dated January 24, 2006 for the quarter ended
December 31, 2005 (a copy of the press release is attached hereto as
Exhibit 99.9 and is incorporated herein by reference)
* Earnings release dated May 4, 2006 for the year and quarter ended
March 31, 2006 (a copy of the press release is attached hereto as
Exhibit 99.10 and is incorporated herein by reference)
* Earnings release dated July 25, 2006 for the quarter ended June 30,
2006 (a copy of the press release is attached hereto as Exhibit 99.11
and is incorporated herein by reference)
* Earnings release dated October 24, 2006 for the quarter ended
September 30, 2006 (a copy of the press release is attached hereto as
Exhibit 99.12 and is incorporated herein by reference)
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits
99.1 News Release of Riverview Bancorp, Inc. dated July 15, 2003.
99.2 News Release of Riverview Bancorp, Inc. dated October 27,
2003.
99.3 News Release of Riverview Bancorp, Inc. dated January 21,
2004.
99.4 News Release of Riverview Bancorp, Inc. dated May 4, 2004.
99.5 News Release of Riverview Bancorp, Inc. dated January 25,
2005.
99.6 News Release of Riverview Bancorp, Inc. dated May 13, 2005.
99.7 News Release of Riverview Bancorp, Inc. dated July 18, 2005.
99.8 News Release of Riverview Bancorp, Inc. dated October 17,
2005.
99.9 News Release of Riverview Bancorp, Inc. dated January 24,
2006.
99.10 News Release of Riverview Bancorp, Inc. dated May 4, 2006.
99.11 News Release of Riverview Bancorp, Inc. dated July 25, 2006.
99.12 News Release of Riverview Bancorp, Inc. dated October 24,
2006.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
RIVERVIEW BANCORP, INC.
DATE: April 3, 2007 By: /s/Patrick Sheaffer
-------------------------------------
Patrick Sheaffer
Chairman and Chief Executive Officer
(Principal Executive Officer)
Exhibit 99.1
News Release of Riverview Bancorp, Inc. dated July 15, 2003
Contacts: Pat Sheaffer, Chairman/C.E.O., 360-693-6650
Ron Wysaske, E.V.P./C.F.O., 360-693-6650
RIVERVIEW BANCORP PROFITS GROW 40% TO $1.5 MILLION FOR FIRST FISCAL QUARTER
---------------------------------------------------------------------------
Vancouver, WA - July 15, 2003 - Riverview Bancorp, Inc. (Nasdaq: RVSB) today
reported strong growth in commercial loans, retail deposits and margins
contributed to the 40% increase in net income for the first fiscal quarter
ended June 30, 2003. Net income for the quarter grew to $1.5 million, or
$0.34 per diluted share, compared to $1.1 million, or $0.24 per diluted share
in the like quarter a year ago.
"This is a terrific start to a new fiscal year," said Pat Sheaffer, Chairman
and CEO. "We're growing deposits, continuing to build our commercial loan
portfolio and managing our expenses effectively. We are also looking forward
to finalizing the acquisition of Today's Bancorp later this month. To share
our success with shareholders, we recently increased our quarterly cash
dividend 12% to $0.14 per share."
Revenues (net interest income before the provision for loan losses +
non-interest income) increased 14% to $6.2 million for the quarter, compared
to $5.5 million in the first fiscal quarter last year. Net interest margin
for the quarter expanded 65 basis points to 4.95% from 4.30% a year earlier.
Net interest income before the provision for loan losses increased 14% to $4.6
million for the quarter, compared to $4.1 million for the like quarter last
fiscal year.
"The robust 1-4 family residential mortgage refinancing activity continues to
generate strong fee income," said Sheaffer. Non-interest income for the first
fiscal quarter grew 15% to $1.6 million, compared to $1.4 million in the like
quarter last fiscal year.
For the fiscal first quarter, non-interest expense was $3.9 million compared
to $3.7 million a year earlier. The efficiency ratio improved 399 basis
points to 59.90% for the quarter compared to 63.89% in the first fiscal
quarter a year ago. "While the addition of Today's Bancorp and conversion of
its branches to Riverview Bank branches may create a slight drag on earnings
in the second quarter of fiscal 2004, we anticipate that the new branches will
quickly contribute to the bottom line and we will gain some cost savings. The
acquisition should be accretive in fiscal year 2004," Sheaffer said.
Total assets at June 30, 2003 were $440 million, an 8% increase compared to
$408 million a year earlier. Deposits grew 13% to $340 million compared to
$301 million at June 30, 2002. Shareholders' equity increased 3% to $55
million and book value grew 4% to $12.61 per share over the 12-month period.
"Commercial and commercial real estate loans continue to be the fastest
growing area of our loan portfolio. These loans grew 17% and now represent
43% of the total portfolio compared to 36% a year ago," said Sheaffer. "As we
continue to sell low-interest rate, long-term 1-4 family loans into the
secondary market and with high mortgage refinancing activity, the portion of
our total loan portfolio represented by these loans decreases. Consequently,
there was a slight overall contraction in our total loan portfolio this
quarter." Net loans at June 30, 2003 were $296 million compared to $299
million at June 30, 2002.
(more)
Riverview Bancorp, Inc.
July 15, 2003
Page 2
Credit quality remains high as non-performing assets to total assets was 0.24%
at June 30, 2003, an improvement from 0.50% for the same period a year ago.
The allowance for loan losses increased to $2.8 million or 0.92% of total net
loans outstanding at June 30, 2003 from $2.7 million or 0.90% of total net
loans at June 30, 2002.
Riverview's profitability measures improved as annualized return on average
assets reached 1.47% and return on average equity was 10.77% in the first
quarter of fiscal 2004 compared to 1.04% and 7.92% for the same period a year
ago, respectively.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington - just north of Portland, Oregon on the I-5 corridor. With $440
million in assets, it's the parent company of the 80 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. There are 12 Southwest Washington branches, including eight in Clark
County the fastest growing county in the state. The bank offers true
community banking services, focusing on providing the highest quality service
and financial products to commercial and retail customers. On Monday, July
14, 2003, the Bancorp's stock closed the trading day at $19.00 per share.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the Today's Bancorp acquisition and
efficiently manage expenses, competitive factors, interest rate fluctuations,
regional economic conditions and government and regulatory actions. Additional
factors that could cause actual results to differ materially are disclosed in
Riverview Bancorp's recent filings with the SEC, including but not limited to
Annual Reports on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K.
(tables follow)
Riverview Bancorp, Inc.
July 15, 2003
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
June 30, 2003, MARCH 31, 2003 and June 30, 2002
June 30, March 31, June 30,
(In thousands, except share data) (Unaudited) 2003 2003 2002
------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of
$68,484, $42,464 and $18,971) $ 88,939 $ 60,858 $ 34,157
Loans held for sale 1,308 1,501 1,265
Investment securities available for sale, at
fair value (amortized cost of $20,292,
$20,265 and $18,924) 19,745 20,426 18,363
Mortgage-backed securities held to maturity,
at amortized cost (fair value of $3,123,
$3,403 and $4,273) 3,087 3,301 4,098
Mortgage-backed securities available for sale,
at fair value (amortized cost of $9,825,
$12,669 and $30,721) 10,109 13,069 31,360
Loans receivable (net of allowance for loan
losses of $2,793, $2,739 and $2,748) 296,451 300,310 298,935
Real estate owned 445 425 93
Prepaid expenses and other assets 1,033 854 211
Accrued interest receivable 1,418 1,492 1,817
Federal Home Loan Bank stock, at cost 5,706 5,646 5,397
Premises and equipment, net 9,497 9,703 10,462
Deferred income taxes, net 1,607 1,321 542
Mortgage servicing intangible, net 481 629 867
Core deposit intangible, net 287 369 614
--------- --------- ---------
TOTAL ASSETS $ 440,113 $ 419,904 $ 408,181
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 340,036 $ 320,742 $ 301,246
Accrued expenses and other liabilities 4,853 4,364 4,057
Advance payments by borrowers for taxes
and insurance 60 287 48
Federal Home Loan Bank advances 40,000 40,000 49,500
--------- --------- ---------
Total liabilities 384,949 365,393 354,851
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value;
250,000 authorized, issued and outstanding,
none - - -
Common stock, $.01 par value; 50,000,000
authorized, June 30, 2003 - 4,602,535 issued,
4,375,696 outstanding; March 31, 2003 -
4,585,543 issued, 4,358,704 outstanding
June 30, 2002 - 4,653,558 issued, 4,376,948
outstanding 46 46 46
Additional paid-in capital 33,777 33,525 34,585
Retained earnings 23,275 22,389 20,729
Unearned shares issued to employee stock
ownership trust (1,753) (1,804) (1,959)
Unearned shares held by the management
recognition and development plan (7) (15) (122)
Accumulated other comprehensive income (loss) (174) 370 51
--------- --------- ---------
Total shareholders' equity 55,164 54,511 53,330
--------- --------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 440,113 $ 419,904 $ 408,181
========= ========= =========
(more)
Riverview Bancorp, Inc.
July 15, 2003
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY Three Months Ended
Consolidated Statements of Income June 30,
(In thousands, except share data) (Unaudited) 2003 2002
------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 5,669 $ 5,913
Interest on investment securities 67 28
Interest on mortgage-backed securities 181 449
Other interest and dividends 214 390
-------- -------
Total interest income 6,131 6,780
-------- -------
INTEREST EXPENSE:
Interest on deposits 1,009 1,594
Interest on borrowings 495 1,130
-------- -------
Total interest expense 1,504 2,724
-------- -------
Net interest income 4,627 4,056
Less provision for loan losses 70 245
-------- -------
Net interest income after
provision for loan losses 4,557 3,811
-------- -------
NON-INTEREST INCOME:
Fees and service charges 1,173 928
Asset management fees 223 192
Gain on sale of loans held for sale 304 349
Loan servicing expense (108) (100)
Other 24 41
-------- -------
Total non-interest income 1,616 1,410
-------- -------
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,249 2,034
Occupancy and depreciation 586 592
Data processing 204 210
Amortization of core deposit intangible 82 82
Advertising and marketing expense 269 189
FDIC insurance premium 12 11
State and local taxes 94 90
Telecommunications 48 44
Professional fees 89 118
Other 302 322
-------- -------
Total non-interest expense 3,935 3,692
-------- -------
INCOME BEFORE FEDERAL INCOME TAXES 2,238 1,529
PROVISION FOR FEDERAL INCOME TAXES 738 457
-------- -------
NET INCOME $ 1,500 $ 1,072
======== =======
Earnings per common share:
Basic $0.34 $0.24
Diluted 0.34 0.24
Weighted average number of shares outstanding:
Basic 4,371,380 4,440,426
Diluted 4,442,363 4,486,182
(more)
Riverview Bancorp, Inc.
July 15, 2003
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
AT OR FOR THE
THREE MONTHS AT OR FOR THE
ENDED YEAR ENDED
JUNE 30, 2003 MARCH 31, 2003
------------- --------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $ 378,263 $ 379,899
Average interest-bearing liabilities 286,821 304,845
Net average earning assets 91,442 75,054
Non-performing assets 1,076 748
Non-performing loans 631 323
Allowance for loan losses 2,793 2,739
Average interest-earning assets to
average interest-bearing liabilities 131.88% 124.62%
Allowance for loan losses to non-performing
loans 442.63% 847.99%
Allowance for loan losses to net loans 0.92% 0.89%
Non-performing loans to total net loans 0.21% 0.11%
Non-performing assets to total assets 0.24% 0.18%
Shareholders' equity to assets 12.53% 12.98%
Number of banking facilities 12 12
AT OR FOR THE
THREE MONTHS ENDED
JUNE 30,
SELECTED OPERATING DATA 2003 2002
----------------------- ----- -------
(Dollars in thousands, except share data)
Efficiency ratio (4) 63.03% 67.54%
Efficiency ratio net of intangible amortization 59.90% 63.89%
Coverage ratio net of intangible amortization 120.09% 112.35%
Return on average assets (1) 1.47% 1.04%
Return on average equity (1) 10.77% 7.92%
Net interest margin 4.95% 4.30%
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.34 $ 0.24
Diluted earnings per share (3) 0.34 0.24
Book value per share (2) 12.61 12.18
Tangible book value per share (2) 12.43 11.85
Market price per share:
High for period 18.300 14.750
Low for the period 16.300 13.050
Close for period end 18.300 14.000
Cash dividends declared per share 0.140 0.125
Average number of shares outstanding:
Basic (2) 4,371,380 4,440,426
Diluted (3) 4,442,363 4,486,182
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income plus non-interest
income.
# # #
Exhibit 99.2
News Release of Riverview Bancorp, Inc. dated October 27, 2003
Contacts: Pat Sheaffer, Chairman/C.E.O., 360-693-6650
Ron Wysaske, E.V.P./C.F.O., 360-693-6650
RIVERVIEW BANCORP PROFITS GROW 28% TO $1.9 MILLION IN SECOND FISCAL QUARTER
---------------------------------------------------------------------------
Vancouver, WA - October 27, 2003 - Riverview Bancorp, Inc. (Nasdaq: RVSB)
today reported a recent acquisition and strong internally generated loan
activity contributed to record results for the quarter. Net income for the
second fiscal quarter ended September 30, 2003, grew 28% to $1.9 million, or
$0.41 per diluted share, compared to $1.5 million, or $0.34 per diluted share
in the like quarter a year ago. For the first six months of fiscal 2004, net
income increased 33% to $3.4 million, or $0.75 per diluted share, compared to
$2.6 million in the like period of 2003.
"Today's Bancorp was integrated successfully into Riverview earlier in the
quarter," said Pat Sheaffer, Chairman and CEO. "Because the primarily
commercial loans from Today's have a different risk profile than our existing
portfolio, the acquisition increased our reserves significantly. In addition
to realizing growth from the Today's acquisition, we have continued to
generate more loan volume than last year, which has contributed to our record
top- and bottom-line results."
Revenues (net interest income before the provision for loan losses +
non-interest income) increased 25% to $7.5 million for the quarter, compared
to $6.0 million in the second fiscal quarter last year. Fiscal year-to-date,
revenues grew 20% to $13.7 million, compared to $11.4 million for the like
period of last fiscal year.
Net interest income before the provision for loan losses increased 15% for
both the quarter and year to date and totaled $5.4 million and $10.0 million
respectively, compared to $4.7 million and $8.8 million respectively, last
fiscal year. For the quarter, the net interest margin was 4.65%, compared to
5.09% in the second fiscal quarter last year. The net interest margin for the
first six months of fiscal 2004 expanded seven basis points to 4.76% from
4.69% a year earlier.
"Increased income from fees and services charges contributed to the 62%
increase in non-interest income, as did strong income from the loan servicing
portfolio. Non-interest income includes a $342,000 write-up to market value
of mortgage servicing rights reflecting the reduction experienced in
prepayments for the second quarter of fiscal year 2004 compared to a $259,000
write down in market value of mortgage servicing rights in the same prior year
period," said Sheaffer. Non-interest income for the second fiscal quarter
grew 62% to $2.0 million, compared to $1.3 million in the like quarter last
fiscal year. For the first half of the fiscal year, non-interest income
increased 37% to $3.7 million, compared to $2.7 million in the like period of
last fiscal year.
For the fiscal second quarter, non-interest expense was $4.6 million compared
to $3.7 million a year earlier. Year-to-date, non-interest expense was $8.5
million compared to $7.4 million in the first six months of fiscal 2003. The
efficiency ratio improved 87 basis points to 61.42% for the quarter compared
to 62.29% in the second fiscal quarter a year ago. Net of intangible
amortization, the efficiency ratio was 61.44% for the quarter, compared to
57.78% for the same quarter last fiscal year.
"With the acquisition of Today's, we also gained $87.3 million in gross loans
and $104.5 million in deposits," said Sheaffer. Total assets at September 30,
2003 were $533 million, a 33% increase compared to $400 million a year
earlier. Deposits grew 43% to $425 million compared to $298 million at
September 30, 2002.
Riverview Bancorp, Inc.
October 27, 2003
Page 2
Shareholders' equity increased 19% to $63 million and book value grew 8% to
$13.38 per share over the 12-month period.
"The loans added from Today's are primarily commercial. These and our
internally generated loans, combined to double the commercial loans in our
portfolio. They now account for 15% of the portfolio, compared to 9% a year
ago. Commercial real estate loans grew to 38% of the total loan portfolio at
September 30, 2003 compared to 27% at September 30, 2002," said Sheaffer. "We
continued our strategy of selling lower interest rate residential mortgage
loans, which is also contributing to the shift in portfolio composition." Net
loans at September 30, 2003 were $370 million compared to $294 million at
September 30, 2002.
Non-performing assets to total assets was 0.55% at September 30, 2003,
compared to 0.46% a year earlier. The allowance for loan losses increased to
$5.2 million or 1.38% of total net loans outstanding at September 30, 2003
from $2.7 million or 0.90% of total net loans at September 30, 2002. "Real
estate owned (REO) increased to $1.1 million compared to $93,000 a year ago,
primarily due to four loans totaling $1.1 million. All four properties have
been appraised above the value we are carrying them at on the books," said
Sheaffer.
Riverview's profitability measures improved as annualized return on average
assets reached 1.48% and return on average equity was 12.27% in the second
quarter of fiscal 2004 compared to 1.48% and 11.00% respectively, for the same
period a year ago.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington just north of Portland, Oregon on the I-5 corridor. It is the
parent company of the 80 year-old Riverview Community Bank, as well as
Riverview Mortgage and Riverview Asset Management Corp. There are 13
Southwest Washington branches, including nine in Clark County the fastest
growing county in the state and one lending center. The bank offers true
community banking services, focusing on providing the highest quality service
and financial products to commercial and retail customers.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the Today's Bancorp acquisition and
efficiently manage expenses, competitive factors, interest rate fluctuations,
regional economic conditions and government and regulatory actions.
Additional factors that could cause actual results to differ materially are
disclosed in Riverview Bancorp's recent filings with the SEC, including but
not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and
current reports on Form 8-K.
(tables follow)
Riverview Bancorp, Inc.
October 27, 2003
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
SEPTEMBER 30, 2003, MARCH 31, 2003 AND SEPTEMBER 30, 2002
SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
(In thousands, except share data) (Unaudited) 2003 2003 2002
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $57,641,
$42,464 and $16,179) $ 84,597 $ 60,858 $ 31,810
Loans held for sale 1,606 1,501 674
Investment securities available for sale, at fair value
(amortized cost of $31,290 , $20,265 and $23,923) 32,008 20,426 23,480
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $2,863, $3,403 and $3,923) 2,799 3,301 3,824
Mortgage-backed securities available for sale, at fair value
(amortized cost of $8,375, $12,669 and $25,330) 8,609 13,069 25,967
Loans receivable (net of allowance for loan losses of $5,205,
$2,739 and $2,689) 369,668 300,310 294,470
Real estate owned 1,077 425 93
Prepaid expenses and other assets 779 854 192
Accrued interest receivable 1,856 1,492 1,595
Federal Home Loan Bank stock, at cost 5,927 5,646 5,478
Premises and equipment, net 10,392 9,703 10,224
Deferred income taxes, net 2,908 1,321 559
Mortgage servicing rights, net 718 629 636
Goodwill 9,204 - -
Core deposit intangible, net 999 369 532
--------- -------- ----------
TOTAL ASSETS $ 533,147 $419,904 $ 399,534
========= ======== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 425,498 $320,742 $ 297,847
Accrued expenses and other liabilities 4,121 4,364 3,208
Advance payments by borrowers for taxes and insurance 295 287 257
Federal Home Loan Bank advances 40,000 40,000 45,000
--------- -------- ----------
Total liabilities 469,914 365,393 346,312
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none - - -
Common stock, $.01 par value; 50,000,000 authorized
September 30, 2003 - 4,954,479 issued, 4,727,640 outstanding;
March 31, 2003 - 4,585,543 issued, 4,358,704 outstanding;
September 30, 2002 - 4,560,958 issued, 4,284,348 outstanding 50 46 46
Additional paid-in capital 39,725 33,525 33,233
Retained earnings 24,531 22,389 21,751
Unearned shares issued to employee stock ownership trust (1,701) (1,804) (1,907)
Unearned shares held by the management recognition
and development plan - (15) (29)
Accumulated other comprehensive income 628 370 128
--------- -------- ----------
Total shareholders' equity 63,233 54,511 53,222
--------- -------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 533,147 $419,904 $ 399,534
========= ======== ==========
(more)
Riverview Bancorp, Inc.
October 27, 2003
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME FOR
THE THREE AND SIX MONTHS ENDED Three Months Ended Six Months Ended
SEPTEMBER 30, 2003 AND 2002 September 30, September 30,
(In thousands, except share data) (Unaudited) 2003 2002 2003 2002
------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 6,727 $ 6,060 $ 12,396 $ 11,973
Interest on investment securities 88 30 155 58
Interest on mortgage-backed securities 154 367 335 816
Other interest and dividends 258 353 472 743
-------- -------- -------- --------
Total interest income 7,227 6,810 13,358 13,590
-------- -------- -------- --------
INTEREST EXPENSE:
Interest on deposits 1,325 1,461 2,334 3,055
Interest on borrowings 497 646 992 1,776
-------- -------- -------- --------
Total interest expense 1,822 2,107 3,326 4,831
-------- -------- -------- --------
Net interest income 5,405 4,703 10,032 8,759
Less provision for loan losses - 82 70 327
-------- -------- -------- --------
Net interest income after
provision for loan losses 5,405 4,621 9,962 8,432
-------- -------- -------- --------
NON-INTEREST INCOME:
Fees and service charges 1,245 1,034 2,418 1,962
Asset management services 214 178 437 370
Gain on sale of loans held for sale 287 265 591 614
Gain on sale of other real estate owned 45 9 48 29
Loan servicing income (expense) 259 (241) 151 (341)
Other (1) 19 20 40
-------- -------- -------- --------
Total non-interest income 2,049 1,264 3,665 2,674
-------- -------- -------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,500 2,035 4,749 4,069
Occupancy and depreciation 769 642 1,355 1,234
Data processing 238 207 442 417
Amortization of core deposit intangible 107 81 189 163
Marketing expense 244 221 513 410
FDIC insurance premium 13 11 25 22
State and local taxes 113 101 207 191
Telecommunications 73 54 121 98
Professional fees 105 87 194 205
Other 416 278 718 600
-------- -------- -------- --------
Total non-interest expense 4,578 3,717 8,513 7,409
-------- -------- -------- --------
INCOME BEFORE FEDERAL INCOME TAXES 2,876 2,168 5,114 3,697
PROVISION FOR FEDERAL INCOME TAXES 958 674 1,696 1,131
-------- -------- -------- --------
NET INCOME $ 1,918 $ 1,494 $ 3,418 $ 2,566
======== ======== ======== ========
Earnings per common share:
Basic $ 0.41 $ 0.34 $ 0.76 $ 0.58
Diluted 0.41 0.34 0.75 0.58
Weighted average number of shares outstanding:
Basic 4,653,314 4,345,985 4,513,117 4,392,947
Diluted 4,728,251 4,414,320 4,585,921 4,450,357
(more)
Riverview Bancorp, Inc.
October 27, 2003
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
AT OR FOR THE
SIX MONTHS AT OR FOR THE
ENDED YEAR ENDED
SEPTEMBER 30, 2003 MARCH 31, 2003
------------------ --------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $ 423,916 $ 379,899
Average interest-bearing liabilities 340,438 304,845
Net average earning assets 83,478 75,054
Non-performing assets 2,937 748
Non-performing loans 1,860 323
Allowance for loan losses 5,205 2,739
Average interest-earning assets to
average interest-bearing liabilities 124.52% 124.62%
Allowance for loan losses to non-
performing loans 279.84% 847.99%
Allowance for loan losses to net loans 1.38% 0.90%
Non-performing loans to total net loans 0.49% 0.11%
Non-performing assets to total assets 0.55% 0.18%
Shareholders' equity to assets 11.86% 12.98%
Number of banking facilities 14 12
AT OR FOR THE AT OR FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------- ----------------
SELECTED OPERATING DATA 2003 2002 2003 2002
----------------------- ------ ----- ------ -------
Efficiency ratio (4) 61.42% 62.29% 62.15% 64.80%
Efficiency ratio net of intangible
amortization 61.44% 57.78% 60.59% 60.67%
Coverage ratio net of intangible
amortization 120.89% 129.35% 120.52% 120.88%
Return on average assets (1) 1.48% 1.48% 1.48% 1.26%
Return on average equity (1) 12.27% 11.00% 11.58% 9.47%
Net interest margin 4.65% 5.09% 4.76% 4.69%
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.41 $0.34 $ 0.76 $ 0.58
Diluted earnings per share (3) 0.41 0.34 0.75 0.58
Book value per share (2) 13.38 12.42 13.38 12.42
Tangible book value per share (2) 11.07 12.15 11.07 12.15
Market price per share:
High for period 20.500 15.710 20.500 15.710
Low for the period 18.080 14.000 16.300 13.050
Close for period end 18.900 15.150 18.900 15.150
Cash dividends declared per share 0.140 0.125 0.280 0.250
Average number of shares outstanding:
Basic (2) 4,653,314 4,345,985 4,513,117 4,392,947
Diluted (3) 4,728,250 4,414,320 4,585,921 4,450,357
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income plus non-interest
income.
# # #
Exhibit 99.3
News Release of Riverview Bancorp, Inc. dated January 21, 2004
Contacts: Pat Sheaffer, Chairman/C.E.O., 360-693-6650
Ron Wysaske, E.V.P./C.F.O., 360-693-6650
RIVERVIEW BANCORP REVENUES INCREASE TO $6.9 MILLION FOR THIRD
-------------------------------------------------------------
FISCAL QUARTER, WHILE LOANS GROW 22% AND DEPOSITS ARE UP 29%
------------------------------------------------------------
Vancouver, WA - January 21, 2004 - Riverview Bancorp, Inc. (Nasdaq: RVSB)
today reported top-line growth was supported by a recent acquisition and
internally generated loan activity. For the first nine months of fiscal 2004,
net income increased 14% to $5.0 million, or $1.06 per diluted share, compared
to $4.3 million, or $0.98 per diluted share, in the like period of 2003. Net
income for the third fiscal quarter ended December 31, 2003, was $1.5 million,
or $0.32 per diluted share, compared to $1.8 million, or $0.40 per diluted
share in the like quarter a year ago.
"We are focused on growing, maintaining a strong balance sheet, and excellent
asset/liability matching as we build our franchise and realize continuing
benefits from our recent acquisition," said Pat Sheaffer, Chairman and CEO.
"We remain dedicated to building our commercial loan portfolio, which is
offsetting the slowdown in mortgage banking."
Net interest income before the provision for loan losses increased 20% for the
quarter to $5.5 million, compared to $4.6 million in the third fiscal quarter
last year. For the first nine months of the fiscal year, net interest income
totaled $15.5 million, compared to $13.3 million for the like period a year
ago. For the quarter, the net interest margin was 4.63%, compared to 4.78% in
the third fiscal quarter last year. The net interest margin for the first
nine months of fiscal 2004 was 4.71% compared to 4.72% a year earlier. "Going
forward, we expect to generate approximately an additional $400,000 annually
in non-taxable income from $12 million in bank owned life insurance purchased
during the third and fourth fiscal quarters," added Sheaffer.
Revenues (net interest income before the provision for loan losses +
non-interest income) increased 5% to $6.9 million for the quarter, compared to
$6.6 million in the third fiscal quarter last year. Fiscal year-to-date
revenues grew 14% to $20.6 million, compared to $18.0 million for the like
period of last fiscal year.
Non-interest income for the third fiscal quarter was $1.4 million, compared to
$2.0 million in the like quarter a year ago. "Mortgage lending has slowed,
reducing the amount of fee income we generate from this activity. Taken
together, fees and service charges income, which includes mortgage fees, and
gains on the sale of loans held for sale were $563,000 lower in the third
quarter than they were in third quarter a year ago. Over the next 15 months,
we think our increased focus on commercial lending will offset this drop in
non-interest income," said Sheaffer. For the first nine months of the fiscal
year, non-interest income increased to $5.1 million, compared to $4.7 million
in the like period of last fiscal year.
For the fiscal third quarter, non-interest expense was $4.6 million compared
to $3.7 million a year earlier. "As a result of acquiring Today's Bank, along
with internally generated growth, we have increased our employee headcount 19%
and have upgraded and added branches. We also have augmented our marketing
efforts to build consumer awareness in the key areas we serve. These efforts
will reap rewards in the future, although they currently are creating higher
expenses," said Sheaffer. Year-to-date, non-interest expense was $13.1
million compared to $11.1 million in the first nine months of fiscal 2003.
Net of intangible amortization, the efficiency ratio was 63.86% for the
quarter compared to 53.64% in the third fiscal quarter a year ago.
(more)
RVSB Third Fiscal Quarter
January 21, 2004
Page 2 of 5
Total assets increased 22% to $514 million at December 31, 2003 compared to
$422 million, a year ago. Deposits grew 29% to $406 million compared to $314
million at December 31, 2002. Shareholders' equity increased 19% to $64
million and book value grew 8% to $13.37 per share over the 12-month period.
"We are continuing to generate internal loan growth as well as maintaining the
commercial loans gained from the Today's acquisition. Our portfolio continues
its strategic shift to include more commercial loans, which tend to generate
higher income, and fewer low rate residential mortgage loans. Commercial
loans now represent 14% of the portfolio, compared to 10% a year ago, while
commercial real estate has increased to 40% of the portfolio from 31%," said
Sheaffer. Net loans at December 31, 2003 were $372 million compared to $306
million at December 31, 2002.
Non-performing assets were 0.61% of total assets at December 31, 2003,
compared to 0.55% at September 30, 2003 and 0.30% at December 31, 2002. The
allowance for loan losses increased to $4.9 million or 1.29% of total net
loans outstanding at December 31, 2003 from $2.8 million or 0.91% of total net
loans at December 31, 2002. "Real estate owned (REO) decreased to $868,000,
from $1.1 million last quarter, after we successfully sold a large property.
The remaining three large properties have been appraised above the value we
are carrying them at on the books," said Sheaffer.
Riverview's annualized return on average assets was 1.18% and 1.37% for the
third quarter and year-to-date periods respectively, compared to 1.70% and
1.41% for the respective same periods a year ago. Annualized return on
average equity was 9.52% for the quarter and 10.85% for the nine month period,
compared to 12.90% and 10.62% respectively, for the same periods a year ago.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington just north of Portland, Oregon on the I-5 corridor. It is the
parent company of the 80 year-old Riverview Community Bank, as well as
Riverview Mortgage and Riverview Asset Management Corp. There are 13
Southwest Washington branches, including nine in Clark County the fastest
growing county in the state and one lending center. The bank offers true
community banking services, focusing on providing the highest quality service
and financial products to commercial and retail customers.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the Today's Bancorp acquisition and
efficiently manage expenses, competitive factors, interest rate fluctuations,
regional economic conditions and government and regulatory actions.
Additional factors that could cause actual results to differ materially are
disclosed in Riverview Bancorp's recent filings with the SEC, including but
not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and
current reports on Form 8-K.
(tables follow)
RVSB Third Fiscal Quarter
January 21, 2004
Page 3 of 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
DECEMBER 31, 2003, March 31, 2003 and december 31, 2002
DECEMBER 31, MARCH 31, DECEMBER 31,
(In thousands, except share data) (Unaudited) 2003 2003 2002
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $22,485,
$42,464 and $29,645) $ 44,778 $ 60,858 $ 50,980
Loans held for sale 423 1,501 1,357
Investment securities available for sale, at fair value
(amortized cost of $37,269, $20,265, and $22,566) 37,051 20,426 20,980
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $2,739, $3,403 and $3,584) 2,667 3,301 3,520
Mortgage-backed securities available for sale, at fair value
(amortized cost of $11,285, $12,669 and $18,226) 11,464 13,069 18,767
Loans receivable (net of allowance for loan losses of $4,885,
$2,739 and $2,806) 372,136 300,310 305,701
Real estate owned 868 425 954
Prepaid expenses and other assets 3,859 854 744
Accrued interest receivable 1,851 1,492 1,509
Federal Home Loan Bank stock, at cost 5,986 5,646 5,563
Premises and equipment, net 10,164 9,703 9,850
Deferred income taxes, net 3,031 1,321 1,084
Mortgage servicing rights, net 668 629 680
Goodwill 9,214 - -
Core deposit intangible, net 879 369 451
Bank-owned life insurance 9,002 - -
--------- --------- ---------
TOTAL ASSETS $ 514,041 $ 419,904 $ 422,140
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 405,553 $ 320,742 $ 314,388
Accrued expenses and other liabilities 4,565 4,364 3,904
Advance payments by borrowers for taxes and insurance 108 287 97
Federal Home Loan Bank advances 40,000 40,000 50,000
--------- --------- ---------
Total liabilities 450,226 365,393 368,389
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none - - -
Common stock, $.01 par value; 50,000,000 authorized
December 31, 2003 - 4,969,979 issued, 4,772,911 outstanding;
March 31, 2003 - 4,585,543 issued, 4,358,704 outstanding;
December 31, 2002 - 4,560,958 issued, 4,334,119 outstanding 50 46 46
Additional paid-in capital 40,038 33,525 33,273
Retained earnings 25,402 22,389 23,000
Unearned shares issued to employee stock ownership trust (1,649) (1,804) (1,856)
Unearned shares held by the management recognition
and development plan - (15) (22)
Accumulated other comprehensive (loss) income (26) 370 (690)
--------- --------- ---------
Total shareholders' equity 63,815 54,511 53,751
--------- --------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 514,041 $ 419,904 $ 422,140
========= ========= =========
(more)
RVSB Third Fiscal Quarter
January 21, 2004
Page 4 of 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME FOR
THE THREE AND NINE MONTHS ENDED Three Months Ended Nine Months Ended
DECEMBER 31, 2003 AND 2002 December 31, December 31,
(In thousands, except share data) (Unaudited) 2003 2002 2003 2002
------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 6,673 $ 5,869 $ 19,069 $ 17,842
Interest on investment securities 146 74 301 132
Interest on mortgage-backed securities 143 236 478 1,052
Other interest and dividends 229 315 701 1,058
-------- -------- -------- --------
Total interest income 7,191 6,494 20,549 20,084
-------- -------- -------- --------
INTEREST EXPENSE:
Interest on deposits 1,230 1,293 3,564 4,348
Interest on borrowings 499 642 1,491 2,418
-------- -------- -------- --------
Total interest expense 1,729 1,935 5,055 6,766
-------- -------- -------- --------
Net interest income 5,462 4,559 15,494 13,318
Less provision for loan losses - 190 70 517
-------- -------- -------- --------
Net interest income after
provision for loan losses 5,462 4,369 15,424 12,801
-------- -------- -------- --------
NON-INTEREST INCOME:
Fees and service charges 954 1,221 3,372 3,183
Asset management services 229 179 666 549
Gain on sale of loans held for sale 198 494 789 1,108
Gain on sale of securities - 162 - 162
Gain on sale of other real estate owned 1 13 49 42
Loan servicing income (expense) (2) (97) 149 (438)
Other 39 22 59 62
-------- -------- -------- --------
Total non-interest income 1,419 1,994 5,084 4,668
-------- -------- -------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,575 2,095 7,324 6,164
Occupancy and depreciation 782 619 2,137 1,853
Data processing 233 197 675 614
Amortization of core deposit intangible 121 82 310 245
Marketing expense 183 92 696 502
FDIC insurance premium 24 13 49 35
State and local taxes 110 94 317 285
Telecommunications 64 59 185 157
Professional fees 147 105 341 310
Other 331 339 1,049 939
-------- -------- -------- --------
Total non-interest expense 4,570 3,695 13,083 11,104
-------- -------- -------- --------
INCOME BEFORE FEDERAL INCOME TAXES 2,311 2,668 7,425 6,365
PROVISION FOR FEDERAL INCOME TAXES 772 896 2,468 2,027
-------- -------- -------- --------
NET INCOME $ 1,539 $ 1,772 $ 4,957 $ 4,338
======== ======== ======== ========
Earnings per common share:
Basic $ 0.32 $ 0.41 $ 1.08 $ 0.99
Diluted 0.32 0.40 1.06 0.98
Weighted average number of shares outstanding:
Basic 4,757,750 4,331,305 4,594,958 4,372,325
Diluted 4,844,247 4,382,873 4,673,038 4,428,332
(more)
RVSB Third Fiscal Quarter
January 21, 2004
Page 5 of 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
AT OR FOR THE
NINE MONTHS AT OR FOR THE
ENDED YEAR ENDED
DECEMBER 31, 2003 MARCH 31, 2003
----------------- --------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $ 439,702 $ 379,899
Average interest-bearing liabilities 357,635 304,845
Net average earning assets 82,067 75,054
Non-performing assets 3,161 748
Non-performing loans 2,293 323
Allowance for loan losses 4,885 2,739
Average interest-earning assets to
average interest-bearing liabilities 122.95% 124.62%
Allowance for loan losses to non-performing
loans 213.04% 847.99%
Allowance for loan losses to net loans 1.29% 0.90%
Non-performing loans to total net loans 0.61% 0.11%
Non-performing assets to total assets 0.61% 0.18%
Shareholders' equity to assets 12.41% 12.98%
Number of banking facilities 14 12
AT OR FOR THE AT OR FOR THE
THREE MONTHS ENDED NINE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------ -----------------
SELECTED OPERATING DATA 2003 2002 2003 2002
----------------------- ------ ------- ------ -------
Efficiency ratio (4) 66.41% 56.39% 63.58% 61.74%
Efficiency ratio net of intangible
amortization 63.86% 53.64% 61.78% 58.13%
Coverage ratio net of intangible
amortization 122.77% 126.18% 121.30% 122.64%
Return on average assets (1) 1.18% 1.70% 1.37% 1.41%
Return on average equity (1) 9.52% 12.90% 10.85% 10.62%
Net interest margin 4.63% 4.78% 4.71% 4.72%
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.32 $ 0.41 $ 1.08 $ 0.99
Diluted earnings per share (3) 0.32 0.40 1.06 0.98
Book value per share (2) 13.37 12.40 13.37 12.40
Tangible book value per share (2) 11.12 12.14 11.12 12.14
Market price per share:
High for period 21.740 15.240 21.740 15.710
Low for the period 19.090 13.630 16.300 13.050
Close for period end 21.260 14.990 21.260 14.990
Cash dividends declared per share 0.140 0.125 0.420 0.375
Average number of shares outstanding:
Basic (2) 4,757,750 4,331,305 4,594,958 4,372,325
Diluted (3) 4,844,247 4,382,873 4,673,038 4,428,332
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income plus non-interest
income.
# # #
Exhibit 99.4
News Release of Riverview Bancorp, Inc. dated May 4, 2004
Contacts: Pat Sheaffer, Chairman/C.E.O., 360-693-6650
Ron Wysaske, President/C.O.O., 360-693-6650
RIVERVIEW BANCORP PROFITS INCREASE 50% TO $6.6 MILLION FOR FISCAL 2004
----------------------------------------------------------------------
Vancouver, WA - May 4, 2004 - Riverview Bancorp, Inc. (Nasdaq: RVSB) today
reported strong loan growth and declining cost of funds contributed to a 16%
increase in net interest income for the fiscal year ended March 31, 2004. Net
income increased 50% to $6.6 million, or $1.39 per diluted share, in fiscal
2004 compared to $4.4 million, or $0.99 per diluted share, in fiscal 2003.
Net income for the fourth fiscal quarter was $1.6 million, or $0.33 per
diluted share, compared to $21,000, or less than one cent per diluted share,
in the like quarter a year ago.
Last year, in April 2003, Riverview announced that its floating rate preferred
stock of the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal
National Mortgage Association (FNMA) had an other-than-temporary impairment.
As a result, during the fourth fiscal quarter of 2003, the company incurred a
$1.5 million after-tax, non-cash charge. Excluding the $1.5 million
write-down, net income was $5.9 million, or $1.32 per diluted share for the
year, and for the fourth quarter net income was $1.5 million, or $0.35 per
diluted share.
Riverview Bancorp, Inc. completed the acquisition of Today's Bancorp, Inc. in
July 2003. At acquisition Today's Bancorp, Inc. total assets were $113
million, loans were $86 million and deposits were $104 million.
"Fiscal 2004 has been an outstanding year for Riverview. We have successfully
grown our franchise, shifted the mix of our loan portfolio to more commercial
credits and improved the bottom line," said Pat Sheaffer, Chairman and CEO.
"While a portion of the percentage increase in profits year-over-year was due
to the write-down in fiscal 2003, we still showed double-digit growth in net
income excluding the charge."
Net interest income before the provision for loan losses increased 16% for
fiscal 2004 to $21.0 million, compared to $18.0 million for fiscal 2003. For
the fourth fiscal quarter, net interest income grew 16% to $5.5 million,
compared to $4.7 million for the like quarter a year ago. For the quarter, the
net interest margin was 4.87%, a 24 basis point improvement from the net
interest margin of 4.63% in the third fiscal quarter. Net interest margin was
5.15% for the fourth fiscal quarter of 2003. The net interest margin for
fiscal 2004 was 4.76% compared to 4.83% a year earlier.
After adjusting for the prior year's $2.3 million securities before tax
write-down, revenues (net interest income before the provision for loan losses
+ non-interest income) increased 13% to $27.5 million for the year, compared
to $24.3 million last year. For the fourth quarter, revenues grew 11% to $7.0
million, compared to $6.3 million for last fiscal year.
"The mix of non-interest income is changing. We are likely to generate more
income from asset management services and bank owned life insurance next year,
which will support income from the mortgage lending business which could slow
if interest rates increase," said Sheaffer. Fiscal 2004 non-interest income
increased 8% to $6.6 million, compared to $6.2 million for fiscal 2003, after
adjusting for the $2.3 million write-down last year. Non-interest income for
the fourth fiscal quarter was $1.5 million, compared to $1.6 million in the
like quarter a year ago, after adjusting for the $2.3 million write-down last
year.
(more)
Riverview Bancorp, Inc.
May 4, 2004
Page 2
"We are focused on building the Riverview franchise, and this includes the
addition of some top level commercial bankers and branches through the Today's
Bank acquisition, upgrading facilities and increasing our marketing efforts.
These strategic initiatives have already contributed to our financial results,
and we anticipate greater contributions in the future," said Ron Wysaske,
President and COO.
Fiscal 2004 non-interest expense was $17.6 million compared to $14.9 million
for fiscal 2003. For the fiscal fourth quarter, non-interest expense was $4.5
million compared to $3.8 million a year earlier. Net of intangible
amortization, the efficiency ratio improved to 62.03% for the quarter,
compared to 63.86% in the third fiscal quarter of 2004 and 87.41% in 2003's
fourth fiscal quarter.
Total assets increased 24% to $520 million at March 31, 2004, compared to $420
million a year ago. Deposits grew 28% to $409 million compared to $321
million at March 31, 2003. Shareholders' equity increased 20% to $65 million
and book value grew 9% to $13.64 per share over the 12-month period.
"Our excellent commercial lending team, augmented by the experienced lenders
acquired with Today's Bank, has continued to produce great results as we build
our loan portfolio with higher-rate commercial and commercial real estate
lending. These two areas now represent 56% of the gross portfolio, compared
to 42% a year ago," said Wysaske. Net loans at March 31, 2004, increased 27%
to $381 million, compared to $300 million at March 31, 2003.
Non-performing assets were 0.39% of total assets at March 31, 2004, a 22 basis
point improvement from non-performing assets of 0.61% of total assets at
December 31, 2003. A year ago, non-performing assets were 0.18% of total
assets. The allowance for loan losses was $4.5 million or 1.16% of total net
loans outstanding at March 31, 2004, compared to $2.8 million or 0.90% of
total net loans at March 31, 2003.
Riverview's return on average assets was 1.35% for fiscal 2004, compared to
2003 return on average assets of 1.07%, or 1.44% excluding the impairment
charge. Return on average equity was 10.60% for the year, compared to 7.99%,
or 10.77% excluding the impairment charge, for fiscal 2003.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington just north of Portland, Oregon on the I-5 corridor. It is the
parent company of the 81 year-old Riverview Community Bank, as well as
Riverview Mortgage and Riverview Asset Management Corp. There are 13
Southwest Washington branches, including nine in Clark County the fastest
growing county in the state and one lending center. The bank offers true
community banking services, focusing on providing the highest quality service
and financial products to commercial and retail customers.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the Today's Bancorp acquisition and
efficiently manage expenses, competitive factors, interest rate fluctuations,
regional economic conditions and government and regulatory actions.
Additional factors that could cause actual results to differ materially are
disclosed in Riverview Bancorp's recent filings with the SEC, including but
not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and
current reports on Form 8-K.
(tables follow)
Riverview Bancorp, Inc.
May 4, 2004
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2004 AND 2003
(In thousands, except share data) 2004 2003
------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $32,334
and $42,464) $ 47,907 $ 60,858
Loans held for sale 407 1,501
Investment securities available for sale, at fair value
(amortized cost of $32,751 and $20,265) 32,883 20,426
Mortgage-backed securities held to maturity, at
amortized cost (fair value of $2,591 and $3,403) 2,517 3,301
Mortgage-backed securities available for sale, at fair
value (amortized cost of $10,417 and $12,669) 10,607 13,069
Loans receivable (net of allowance for loan losses
of $4,481 and $2,739) 381,127 300,310
Real estate owned 742 425
Prepaid expenses and other assets 1,289 1,052
Accrued interest receivable 1,786 1,492
Federal Home Loan Bank stock, at cost 6,034 5,646
Premises and equipment, net 9,735 9,505
Deferred income taxes, net 2,736 1,321
Mortgage servicing rights, net 624 629
Goodwill 9,214 -
Core deposit intangible, net 758 369
Bank owned life insurance 12,121 -
--------- ---------
TOTAL ASSETS $ 520,487 $ 419,904
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 409,115 $ 320,742
Accrued expenses and other liabilities 5,862 4,364
Advance payments by borrowers for taxes and insurance 328 287
Federal Home Loan Bank advances 40,000 40,000
--------- ---------
Total liabilities 455,305 365,393
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000
authorized, issued and outstanding, none - -
Common stock, $.01 par value; 50,000,000 authorized,
issued and outstanding: 50 46
2004 - 4,974,979 issued, 4,777,911 outstanding
2003 - 4,585,543 issued, 4,358,704 outstanding
Additional paid-in capital 40,187 33,525
Retained earnings 26,330 22,389
Unearned shares issued to employee stock ownership
trust (1,598) (1,804)
Unearned shares held by the management recognition
and development plan - (15)
Accumulated other comprehensive income 213 370
--------- ---------
Total shareholders' equity 65,182 54,511
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 520,487 $ 419,904
========= =========
(more)
Riverview Bancorp, Inc.
May 4, 2004
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND TWELVE MONTHS ENDED
MARCH 31, 2004 AND 2003 THREE MONTHS TWELVE MONTHS
(Unaudited) ENDED MARCH 31, ENDED MARCH 31,
(In thousands, except share data) 2004 2003 2004 2003
------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 6,565 $ 5,828 $ 25,634 $ 23,670
Interest on investment securities 177 68 478 200
Interest on mortgage-backed securities 135 189 613 1,241
Other interest and dividends 158 292 859 1,350
------- ------- -------- --------
Total interest income 7,035 6,377 27,584 26,461
------- ------- -------- --------
INTEREST EXPENSE:
Interest on deposits 1,079 1,127 4,643 5,475
Interest on borrowings 493 524 1,984 2,942
------- ------- -------- --------
Total interest expense 1,572 1,651 6,627 8,417
------- ------- -------- --------
Net interest income 5,463 4,726 20,957 18,044
Less provision for loan losses 140 210 210 727
------- ------- -------- --------
Net interest income after provision for loan losses 5,323 4,516 20,747 17,317
------- ------- -------- --------
NON-INTEREST INCOME (LOSS):
Fees and service charges 952 1,080 4,324 4,263
Asset management services 240 193 906 742
Gain on sale of loans held for sale 165 444 954 1,552
Loss on sale of securities and impairment - (2,300) - (2,138)
Gain on sale of other real estate owned - 13 49 55
Loan servicing income (expense) 9 (181) 158 (619)
Bank owned life insurance 121 - 121 -
Other 18 21 77 83
------- ------- -------- --------
Total non-interest income (loss) 1,505 (730) 6,589 3,938
------- ------- -------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,586 2,231 9,910 8,395
Occupancy and depreciation 763 628 2,900 2,481
Data processing 242 220 917 834
Amortization of core deposit intangible 120 82 430 327
Marketing expense 76 103 772 605
FDIC insurance premium 15 12 64 47
State and local taxes 109 98 426 383
Telecommunications 84 68 269 225
Professional fees 160 89 501 399
Other 334 273 1,383 1,212
------- ------- -------- --------
Total non-interest expense 4,489 3,804 17,572 14,908
------- ------- -------- --------
INCOME (LOSS) BEFORE FEDERAL INCOME TAXES 2,339 (18) 9,764 6,347
PROVISION (BENEFIT) FOR FEDERAL INCOME TAXES 742 (39) 3,210 1,988
------- ------- -------- --------
NET INCOME $ 1,597 $ 21 $ 6,554 $ 4,359
======= ======= ======== ========
Earnings per common share:
Basic $0.33 $0.00 $1.41 $1.00
Diluted 0.33 0.00 1.39 0.99
Weighted average number of shares outstanding:
Basic 4,778,067 4,346,083 4,640,485 4,365,855
Diluted 4,858,556 4,403,968 4,714,329 4,421,850
(more)
Riverview Bancorp, Inc.
May 4, 2004
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
AT OR FOR THE AT OR FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 2004 MARCH 31, 2003
-------------- --------------
FINANCIAL CONDITION DATA (Dollars in thousands, except share data)
------------------------
Average interest earning assets $ 443,525 $ 379,899
Average interest-bearing liabilities 361,984 304,845
Net average earning assets 81,541 75,054
Non-performing assets 2,043 748
Non-performing loans 1,301 323
Allowance for loan losses 4,481 2,739
Average interest-earning assets to
average interest-bearing liabilities 122.53% 124.62%
Allowance for loan losses to non-
performing loans 344.43 847.99
Allowance for loan losses to net loans 1.16 0.90
Non-performing loans to total net loans 0.34 0.11
Non-performing assets to total assets 0.39 0.18
Shareholders' equity to assets 12.52 12.98
Number of banking facilities 14 12
AT OR FOR THE AT OR FOR THE
THREE MONTHS TWELVE MONTHS
ENDED ENDED
March 31, March 31,
-------------- --------------
SELECTED OPERATING DATA 2004 2003 2004 2003
----------------------- ---- ----- ----- -----
(Dollars in thousands, except share data)
Efficiency ratio (4) 64.42% 95.20% 63.79% 67.82%
Efficiency ratio net of intangible
amortization 62.03 87.41 61.84 63.57
Efficiency ratio net of intangible
amortization and impairment charge 62.03 56.76 61.84 57.78
Coverage ratio net of intangible
amortization 125.04 126.97 122.26 123.75
Return on average assets (1) 1.27 0.02 1.35 1.07
Return on average assets excluding
impairment charge 1.27 1.54 1.35 1.44
Return on average equity (1) 9.82 0.15 10.60 7.99
Return on average equity excluding
impairment charge 9.82 11.27 10.60 10.77
Net interest margin 4.87 5.15 4.76 4.83
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.33 $ 0.00 $ 1.41 $ 1.00
Diluted earnings per share (3) 0.33 0.00 1.39 0.99
Book value per share (2) 13.64 12.51 13.64 12.51
Tangible book value per share (2) 11.42 12.28 11.42 12.28
Market price per share:
High for period 21.430 17.040 21.740 17.040
Low for the period 19.350 14.640 16.300 13.050
Close for period end 20.200 16.980 20.200 16.980
Cash dividends declared per share 0.140 0.125 0.560 0.500
Average number of shares outstanding:
Basic (2) 4,778,067 4,346,083 4,640,485 4,365,855
Diluted (3) 4,858,556 4,403,968 4,714,329 4,421,850
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalent.
(4) Non-interest expense divided by net interest income plus non-interest
income.
# # #
Exhibit 99.5
News Release of Riverview Bancorp, Inc. dated January 25, 2005
Contacts: Pat Sheaffer, Chairman/C.E.O., 360-693-6650
Ron Wysaske, President/C.O.O., 360-693-6650
RIVERVIEW BANCORP REPORTS THIRD QUARTER FISCAL PROFITS OF $760,000
AS LOANS AND DEPOSITS INCREASE
Vancouver, WA - January 25, 2005 - Riverview Bancorp, Inc. (Nasdaq: RVSB)
today reported that following a one time other-than-temporary non-cash,
non-operating impairment charge of approximately $890,000 after tax, it earned
$760,000,or $0.16 per diluted share, in the third quarter fiscal 2005 compared
to $1.5 million, or $0.32 per diluted share, in the same period a year ago.
For the first nine months of fiscal 2005, net income was $4.9 million, or
$1.00 per diluted share, compared to $5.0 million, or $1.06 per diluted share
in the like period last year.
The reduction in profits was due to the company recording an
other-than-temporary non-cash, non-operating impairment charge of
approximately $890,000 after-tax, or $0.18 per diluted share, in fiscal third
quarter 2005, related to certain Fannie Mae (Federal National Mortgage
Association) and Freddie Mac (Federal Home Loan Mortgage Corporation)
preferred stock that it holds. Excluding the impairment charge, net income
increased 7% to $1.7 million, or $0.34 per diluted share, compared to $1.5
million, or $0.32 per diluted share in the same fiscal quarter a year ago.
"We are focused on expanding our franchise in Southwest Washington and into
Oregon through both de novo branching and acquisitions," said Pat Sheaffer,
Chairman and CEO. "Earlier this quarter we signed a definitive merger
agreement with American Pacific Bank, which operates three branches in Oregon,
including two in Metropolitan Portland. The acquisition will give us a
business and commercial banking presence in the important Portland
metropolitan area. We are on target to complete the acquisition in the first
calendar quarter of 2005. In addition, we are in the process of building two
new bank facilities at the Columbia Tech Center in Vancouver, Washington,
which are scheduled to open in 2005. We will continue to evaluate expansion
opportunities in key markets and identify growth opportunities that can be
cost effectively implemented."
Third Quarter Financial Highlights (at or periods ended December 31, 2004
compared to December 31, 2003)
* Commercial income property loans increased 26%
* Excluding the impairment charge, non-interest income increased 18%
* Assets increased 5% to $542 million.
* Loans increased 7% to $398 million.
* Net interest margin is 4.59%, compared to 4.63% in the third quarter of
fiscal 2004.
* Non-performing assets were just 0.14% of total assets, compared to 0.61%
of total assets a year ago.
* Return on average assets, excluding the impairment charge, was 1.22%,
compared to 1.18%.
Fiscal year-to-date, revenues (net interest income before the provision for
loan losses plus non-interest income) grew 5% to $21.5 million, compared to
$20.6 million for the same period of last fiscal year. Third quarter net
interest income before the provision for loan losses remained steady at $5.5
million for the quarter, compared to the same quarter last fiscal year. For
the first nine months of fiscal 2005, net interest income before the provision
for loan losses increased 9% to $16.9 million, compared to $15.4 million for
the first nine months of fiscal 2004.
"Our present asset and liabilities mix should take advantage of the rising
short-term interest rates. Our net interest margin was basically unchanged at
4.59% for the third fiscal quarter, compared to 4.63% in the third fiscal
quarter last year," Sheaffer added. The net interest margin for the first
nine months of fiscal 2005 expanded eight basis points to 4.79% from 4.71% a
year earlier.
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Riverview Bancorp, Inc.
January 25, 2005
Page 2
Non-interest income for the third fiscal quarter was at $323,000, compared to
$1.4 million in the like quarter a year ago. This was due to the impairment
charge of $1.3 million before-tax. "We believe we are being conservative in
recording this other-than-temporary impairment," said Sheaffer. "Subsequent
to the end of the quarter we have sold these securities at a small gain which
eliminates uncertainty about the potential future effects of either of these
issues." For the first nine months of the fiscal year, non-interest income
was at $4.7 million including the impairment charge, compared to $5.1 million
in the like period of last fiscal year.
For the fiscal third quarter, non-interest expense was $4.7 million, compared
to $4.6 million in the third fiscal quarter a year ago. Fiscal year-to-date,
non-interest expense was $14.2 million, compared to $13.1 million in the first
nine months of fiscal 2004. The efficiency ratio, net of intangible
amortization and impairment charge for the quarter was 64.61%, compared to
63.86% in the like quarter a year ago.
Total assets increased 5% to $542 million at December 31, 2004, compared to
$514 million a year earlier. Deposits increased 5% to $428 million compared
to $406 million at December 31, 2003. "We continue to emphasize our
transaction accounts and to reduce our wholesale deposits acquired with the
Today's Bank acquisition," said Ron Wysaske, President and COO. Wholesale
deposits decreased by $17 million for the twelve months ended December 31,
2004 and core deposits increased by $39 million. Shareholders' equity
increased 7% to $69 million and book value grew 7% to $14.26 per share over
the 12-month period.
Net loans at December 31, 2004, increased 7% to $398 million, compared to $372
million at December 31, 2003. "American Pacific Bank has a strong commercial
real estate lending department that will be an asset as we develop a wider
presence in the Portland metro area commercial banking market," said Wysaske.
Commercial real estate loans now account for 48% of the total loan portfolio
and permanent single family loans represents just 10% of Riverview's loan
portfolio.
"We are maintaining our high credit standards and were able to reduce our
non-performing assets by 50% from the previous quarter," Wysaske added.
Non-performing assets were just 0.14% of total assets at December 31, 2004, a
14 basis point improvement from 0.28% of total assets at September 30, 2004,
and a 25 basis point improvement from 0.39% at March 31, 2004. The allowance
for loan losses was $4.4 million or 1.09% of total net loans outstanding at
December 31, 2004.
Riverview's annualized return on average assets excluding the impairment
charge was 1.22% and 1.46% for the third quarter and year-to-date periods
respectively, compared to 1.18% for the quarter and 1.37% for the period a
year ago. Annualized return on average equity excluding the impairment charge
was 9.47% in the third quarter and 11.28% for the nine-month period, compared
to 9.52% and 10.85% respectively, for the same periods a year ago.
Riverview Bancorp will host a conference call today, Tuesday, January 25, at
8:00 a.m. PST, to discuss fiscal third quarter results. The conference call
can be accessed live by telephone at 303-262-2140. To listen to the call
online go to www.actioncast.acttel.com and use event ID 26422. An archived
recording of the call can be accessed by dialing 303-590-3000 access code
11019432# until Tuesday, February 1, 2005 or via the internet at
www.actioncast.acttel.com and use event ID 26422.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington - just north of Portland, Oregon on the I-5 corridor. With assets
of $542 million, it is the parent company of the 81 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. There are 13 Southwest Washington branches, including nine in Clark
County - the second fastest growing county in the state, and one lending
center. The bank offers true community banking services, focusing on
providing the highest quality service and financial products to commercial and
retail customers. The company recently announced the signing of a definitive
merger agreement with American Pacific Bank (Nasdaq: AMPB), a Portland, Oregon
bank with assets of $125 million. Pending regulatory and shareholder
approvals, the company hopes to close the transaction within the first
calendar quarter of 2005.
(more)
Riverview Bancorp, Inc.
January 25, 2005
Page 3
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the Today's Bancorp acquisition and
efficiently manage expenses, competitive factors, interest rate fluctuations,
regional economic conditions and government and regulatory actions.
Additional factors that could cause actual results to differ materially are
disclosed in Riverview Bancorp's recent filings with the SEC, including but
not limited to Annual Reports on Form 10-K, quarterly reports on Form 10-Q and
current reports on Form 8-K.
(tables follow)
Riverview Bancorp, Inc.
January 25, 2005
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2004, MARCH 31, 2004 and DECEMBER 31, 2003
December 31, March 31, December 31,
(In thousands, except share data) (Unaudited) 2004 2004 2003
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of
$40,914, $32,334 and $22,485) $ 55,423 $ 47,907 $ 44,778
Loans held for sale 140 407 423
Investment securities available for sale, at fair value
(amortized cost of $29,324, $32,751 and $37,269) 29,438 32,883 37,051
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $2,455, $2,591 and $2,739) 2,407 2,517 2,667
Mortgage-backed securities available for sale, at fair value
(amortized cost of $12,645, $10,417 and $11,285) 12,696 10,607 11,464
Loans receivable (net of allowance for loan losses of $4,391,
$4,481 and $4,885) 398,421 381,127 372,136
Real estate owned - 742 868
Prepaid expenses and other assets 1,262 1,289 3,859
Accrued interest receivable 1,874 1,786 1,851
Federal Home Loan Bank stock, at cost 6,119 6,034 5,986
Premises and equipment, net 8,416 9,735 10,164
Deferred income taxes, net 2,827 2,736 3,031
Mortgage servicing rights, net 518 624 668
Goodwill 9,214 9,214 9,214
Core deposit intangible, net 611 758 879
Bank owned life insurance 12,521 12,121 9,002
----------- --------- ---------
TOTAL ASSETS $ 541,887 $ 520,487 $ 514,041
=========== ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 427,649 $ 409,115 $ 405,553
Accrued expenses and other liabilities 5,645 5,862 4,565
Advance payments by borrowers for taxes and insurance 75 328 108
Federal Home Loan Bank advances 40,000 40,000 40,000
----------- --------- ---------
Total liabilities 473,369 455,305 450,226
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none - - -
Common stock, $.01 par value; 50,000,000 authorized
December 31, 2004 - 5,001,579 issued, 4,804,511 outstanding;
March 31, 2004 - 4,974,979 issued, 4,777,911 outstanding;
December 31, 2003 - 4,954,479 issued, 4,727,911 outstanding; 50 50 50
Additional paid-in capital 40,847 40,187 40,038
Retained earnings 28,956 26,330 25,402
Unearned shares issued to employee stock ownership trust (1,443) (1,598) (1,649)
Accumulated other comprehensive income (loss) 108 213 (26)
----------- --------- ---------
Total shareholders' equity 68,518 65,182 63,815
----------- --------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 541,887 $ 520,487 $ 514,041
=========== ========= =========
(more)
Riverview Bancorp, Inc.
January 25, 2005
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME FOR
THE THREE AND NINE MONTHS ENDED Three Months Ended Nine Months Ended
DECEMBER 31, 2004 AND 2003 December 31, December 31,
(In thousands, except share data) (Unaudited) 2004 2003 2004 2003
------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 6,883 $ 6,673 $ 20,506 $ 19,069
Interest on investment securities 162 146 498 301
Interest on mortgage-backed securities 158 143 482 478
Other interest and dividends 293 229 633 701
------- ------- -------- --------
Total interest income 7,496 7,191 22,119 20,549
------- ------- -------- --------
INTEREST EXPENSE:
Interest on deposits 1,438 1,230 3,741 3,564
Interest on borrowings 509 499 1,509 1,491
------- ------- -------- --------
Total interest expense 1,947 1,729 5,250 5,055
------- ------- -------- --------
Net interest income 5,549 5,462 16,869 15,494
Less provision for loan losses 70 - 260 70
------- ------- -------- --------
Net interest income after
provision for loan losses 5,479 5,462 16,609 15,424
------- ------- -------- --------
NON-INTEREST INCOME:
Fees and service charges 1,127 954 3,439 3,372
Asset management fees 286 229 815 666
Gain on sale of loans held for sale 97 198 409 789
Gain on sale of other real estate owned - 1 - 49
Loss on impairment of securities (1,349) - (1,349) -
Loan servicing income 11 (2) 45 149
Bank owned life insurance 124 - 400 -
Gain on sale of premises and equipment - - 829 -
Other 27 39 73 59
------- ------- -------- --------
Total non-interest income 323 1,419 4,661 5,084
------- ------- -------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,796 2,575 8,029 7,324
Occupancy and depreciation 749 782 2,261 2,137
Data processing 254 233 740 675
Amortization of core deposit intangible 33 121 148 310
Advertising and marketing 165 183 638 696
FDIC insurance premium 14 24 44 49
State and local taxes 116 110 391 317
Telecommunications 79 64 213 185
Professional fees 143 147 395 341
Other 394 331 1,330 1,049
------- ------- -------- --------
Total non-interest expense 4,743 4,570 14,189 13,083
------- ------- -------- --------
INCOME BEFORE FEDERAL INCOME TAXES 1,059 2,311 7,081 7,425
PROVISION FOR FEDERAL INCOME TAXES 299 772 2,220 2,468
------- ------- -------- --------
NET INCOME $ 760 $ 1,539 $ 4,861 $ 4,957
======= ======= ======== ========
Earnings per common share:
Basic $ 0.16 $ 0.32 $ 1.01 $ 1.08
Diluted 0.16 0.32 1.00 1.06
Weighted average number of shares outstanding:
Basic 4,824,463 4,757,750 4,809,201 4,594,958
Diluted 4,899,840 4,844,247 4,883,538 4,673,038
(more)
Riverview Bancorp, Inc.
January 25, 2005
Page 6
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the At or for the
Nine Months Ended Year Ended
December 31, 2004 March 31, 2004
----------------- --------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $ 471,330 $ 443,525
Average interest-bearing liabilities 383,703 361,984
Net average earning assets 87,627 81,541
Non-performing assets 782 2,043
Non-performing loans 782 1,301
Allowance for loan losses 4,391 4,481
Average interest-earning assets to
average interest-bearing liabilities 122.84% 122.53%
Allowance for loan losses to non-
performing loans 561.51% 344.43%
Allowance for loan losses to net loans 1.09% 1.16%
Non-performing loans to total net loans 0.19% 0.34%
Non-performing assets to total assets 0.14% 0.39%
Shareholders' equity to assets 12.64% 12.52%
Number of banking facilities 14 14
December 31, March 31, December, 31,
2004 2004 2003
---- ---- ----
LOAN DATA
---------
Residential:
One-to-four-family $ 38,297 $ 44,194 $ 47,049
Multi-family 3,856 5,074 5,529
Construction:
One-to-four-family 64,448 78,094 72,428
Multi-family - - 2,100
Commercial real estate 1,453 1,453 1,437
Commercial 57,154 57,702 58,633
Consumer:
Secured 29,849 26,908 28,280
Unsecured 1,788 1,689 1,933
Land 31,035 27,020 29,748
Commercial real estate 207,979 177,785 164,204
--------- ---------- ----------
435,859 419,919 411,341
Less:
Undisbursed portion of loans 30,067 31,204 31,182
Deferred loan fees 2,980 3,107 3,138
Allowance for loan losses 4,391 4,481 4,885
--------- ---------- ----------
Loans receivable, net $ 398,421 $ 381,127 $ 372,136
--------- ---------- ----------
(more)
Riverview Bancorp, Inc.
January 25, 2005
Page 7
At or for the At or for the
Three Months Ended Nine Months Ended
December 31, December 31,
------------ -----------
SELECTED OPERATING DATA 2004 2003 2004 2003
----------------------- ---- ---- ---- ----
Efficiency ratio (4) 80.77% 66.41% 65.90% 63.58%
Efficiency ratio net of
intangible amortization 79.27% 63.86% 64.61% 61.78%
Efficiency ratio net of
intangible amortization
and impairment charge 64.61% 63.86% 60.83% 61.78%
Coverage ratio net of
intangible amortization 117.79% 122.77% 120.14% 121.30%
Return on average assets (1) 0.56% 1.18% 1.24% 1.37%
Return on average assets excluding
impairment charge 1.22% 1.18% 1.46% 1.37%
Return on average equity (1) 4.36% 9.52% 9.53% 10.85%
Return on average equity excluding
impairment charge 9.47% 9.52% 11.28% 10.85%
Net interest margin 4.59% 4.63% 4.79% 4.71%
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.16 $ 0.32 $1.01 $ 1.08
Diluted earnings per share (3) 0.16 0.32 1.00 1.06
Book value per share (2) 14.26 13.37 14.26 13.37
Tangible book value per share (2) 12.11 11.12 12.11 11.12
Market price per share:
High for period 22.500 21.740 22.500 21.740
Low for the period 20.950 19.090 19.490 16.300
Close for period end 22.500 21.260 22.500 21.260
Cash dividends declared per share 0.155 0.140 0.465 0.420
Average number of shares outstanding:
Basic (2) 4,824,463 4,757,750 4,809,201 4,594,958
Diluted (3) 4,899,840 4,844,247 4,883,538 4,673,038
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income plus non-interest
income.
# # #
Exhibit 99.6
News Release of Riverview Bancorp, Inc. dated May 13, 2005
Contacts: Pat Sheaffer or Ron Wysaske,
Riverview Bancorp 360-693-6650
==============================================================================
RIVERVIEW BANCORP EARNS $6.5 MILLION, OR $1.33 PER SHARE IN FISCAL 2005
-----------------------------------------------------------------------
Vancouver, WA - May 13, 2005 - Riverview Bancorp, Inc. (Nasdaq: RVSB) today
reported strong loan and deposit growth contributed to an 8% increase in net
interest income for the fiscal year ended March 31, 2005. Net income,
following a $1,185,000 pre-tax loss on sale of impaired securities, was $6.5
million, or $1.33 per diluted share, in fiscal 2005 compared to $6.6 million,
or $1.39 per diluted share, in fiscal 2004. Net income for the fourth fiscal
quarter increased 4% to $1.7 million, or $0.34 per diluted share, compared to
$1.6 million, or $0.33 per diluted share, in the like quarter a year ago.
In January 2005, Riverview announced that the value of its floating rate
preferred shares issued by the Federal Home Loan Mortgage Corporation (FHLMC)
and the Federal National Mortgage Association (FNMA) had an other-than-
temporary impairment. As a result, during the third fiscal quarter of 2005,
the company incurred a $1,349,000 pre-tax, non-cash charge. The company sold
the securities in the fourth fiscal quarter for a pre-tax gain of $164,000.
Excluding the $1,185,000 securities loss, net income would have been $7.3
million, or $1.49 per diluted share for the year.
Last month, Riverview announced it had completed its acquisition of Portland,
Oregon-based American Pacific Bank. As a result of the acquisition, American
Pacific Bank, which operates three branches in Oregon, including two in
metropolitan Portland, has been merged with and into Riverview Community Bank.
At acquisition American Pacific Bank's total assets were $127.2 million, loans
were $120.3 million and deposits were $80.0 million, which are not included in
the balances at March 31, 2005.
"We are proud that the day after the American Pacific deal closed, we
completed the integration of American Pacific into Riverview. Simultaneously
with doing our due diligence, we were completing the computer conversion,"
said Pat Sheaffer, Chairman and CEO. "As a result of the ground work carried
out by our team this transaction should be accretive to earnings within the
first year."
"Our success in fiscal 2005 was a product of our relationship banking, and
Riverview's brand of local, personal service," said Sheaffer. "By focusing on
our customers' needs and delivering the banking services that make them more
productive, we sustained our loan and deposit growth momentum. To provide
further growth in our franchise, we focused on expansion, with the acquisition
of American Pacific Bank in Oregon and the future construction of a new
operations center and branch in southwest Washington. Over time, this
expansion should improve our cost of funds and build long-term franchise
value."
Fourth Quarter Financial Highlights (at or periods ended March 31, 2005
compared to March 31, 2004)
* Non-interest income increased 23% to $1.8 million.
* Assets increased 10% to $573 million.
* Loans increased 13% to $429 million.
* Commercial income property loans increased 26%.
* Net interest margin increased six basis points to 4.65% for the fourth
quarter, compared to 4.59% in the third quarter of fiscal 2005.
* Non-performing assets were just 0.13% of total assets, compared to 0.39%
of total assets a year ago.
Net interest income before the provision for loan loss increased 8% for fiscal
2005 to $22.6 million, compared to $21.0 million for fiscal 2004. For the
fourth fiscal quarter, net interest income grew 4% to $5.7 million, compared
to $5.5 million for the like quarter a year ago. For the quarter, the net
interest margin was 4.65%, a six basis point improvement from the net interest
margin of 4.59% in third fiscal quarter. The net interest margin was 4.87%
for the fourth fiscal quarter of 2004. For fiscal 2005 net interest margin
was 4.74% compared to 4.76% a year earlier.
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Riverview Bancorp, Inc.
May 13, 2005
Page 2
Revenues (net interest income before the provision for loan losses plus
non-interest income) increased 6% to $29.1 million for the year, compared to
$27.5 million last year. For the fourth quarter, revenues grew 8% to $7.5
million, compared to $7.0 million in the fourth fiscal quarter last year.
Fiscal 2005 non-interest income was $6.5 million, compared to $6.6 million for
fiscal 2004. This was due to the $1,185,000 loss on sale of impaired
securities. Without the loss, non-interest income was $7,691,000 for 2005.
Non-interest income for the fourth fiscal quarter increased 23% to $1.8
million, compared to $1.5 million in the like quarter a year ago.
Fiscal 2005 non-interest expense was $19.1 million compared to $17.6 million
for fiscal 2004. For the fiscal fourth quarter, non-interest expense was $4.9
million compared to $4.5 million a year earlier. Professional fees and other
expenses related to implementation of Sarbanes-Oxley 404 totaled approximately
$380,000 for the current fiscal year compared to zero in the prior year. Net
of intangible amortization, the efficiency ratio was 64.02% for the quarter,
compared to 62.03% in 2004's fourth fiscal quarter.
Total assets increased 10% to $573 million at March 31, 2005, compared to $520
million a year ago. Deposits grew 12% to $457 million compared to $409
million at March 31, 2004. "Building transaction accounts continues to be our
focus while we reduce our wholesale deposits," said Ron Wysaske, President and
COO. "On the surface it appears that deposits are up $48 million, or a
respectable 12% over the past year. Looking closer, however, reveals that we
reduced interest sensitive wholesale deposits by $13 million while we
increased core deposits by $61 million; a 15% increase over beginning of year
deposits. Our branch network has the ability to grow deposits in this
competitive banking market." Shareholders' equity increased 7% to $70 million
and book value grew 5% to $14.35 per share over the 12-month period.
"Over the past 12 months, we have expanded our loan portfolio and anticipate
that because of the high growth throughout Southwest Washington and the
Portland metropolitan area we should be able to continue at that rate this
year," said Wysaske. Net loans at March 31, 2005, increased 13% to $429
million, compared to $381 million at March 31, 2004. Commercial real estate
loans now account for 51% of the total loan portfolio and permanent single
family loans represents just 8% of Riverview's loan portfolio.
Non-performing assets were 0.13% of total assets at March 31, 2005, a 26 basis
point improvement compared to 0.39% of total assets a year ago. The allowance
for loan losses was $4.4 million or 1.01% of total net loans outstanding at
March 31, 2005, compared to $4.5 million or 1.16% of total net loans at March
31, 2004.
Riverview's fiscal 2005 return on average assets was 1.24%, or 1.40% excluding
the impairment charge, compared to return on average assets of 1.35% for
fiscal 2004. Return on average equity was 9.56% for the year, or 10.87%
excluding the impairment charge, compared to 10.60% for fiscal 2004.
Riverview Bancorp will host a conference call Monday, May 16, at 8:00 a.m.
PDT, to discuss fiscal year-end results. The conference call can be accessed
live by telephone at 303-262-2130. To listen to the call online go to
www.actioncast.acttel.com and use event ID 28137. An archived recording of
the call can be accessed by dialing 303-590-3000 access code 11027378# until
Monday, May 23, 2005 or via the Internet at www.actioncast.acttel.com and use
event ID 28137.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington - just north of Portland, Oregon on the I-5 corridor. With assets
of $573 million it is the parent company of the 82 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. In addition to the Oregon branches acquired from American Pacific Bank,
there are 13 Southwest Washington full service branch locations, including
nine in Clark County along with two lending centers. Riverview offers true
community banking, focusing on providing the highest quality service and
financial products to commercial and retail customers.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the American Pacific acquisition and
efficiently manage expenses. Additional factors that could cause actual
results to differ materially are disclosed in Riverview Bancorp's recent
filings with the SEC, including but not limited to Annual Reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Riverview Bancorp, Inc.
May 13, 2005
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2005 AND 2004
(In thousands, except share data) 2005 2004
------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts
of $45,501 and $32,334) $ 61,719 $ 47,907
Loans held for sale 510 407
Investment securities available for sale, at
fair value (amortized cost of $22,993 and
$32,751) 22,945 32,883
Mortgage-backed securities held to maturity,
at amortized cost (fair value of $2,402 and
$2,591) 2,343 2,517
Mortgage-backed securities available for sale,
at fair value (amortized cost of $11,756 and
$10,417) 11,619 10,607
Loans receivable (net of allowance for loan
losses of $4,395 and $4,481) 429,449 381,127
Real estate owned 270 742
Prepaid expenses and other assets 1,538 1,289
Accrued interest receivable 2,151 1,786
Federal Home Loan Bank stock, at cost 6,143 6,034
Premises and equipment, net 8,391 9,735
Deferred income taxes, net 2,624 2,736
Mortgage servicing rights, net 470 624
Goodwill 9,214 9,214
Core deposit intangible, net 578 758
Bank owned life insurance 12,607 12,121
--------- ---------
TOTAL ASSETS $ 572,571 $ 520,487
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 456,878 $ 409,115
Accrued expenses and other liabilities 5,858 5,862
Advance payments by borrowers for taxes and
insurance 313 328
--------- ---------
Federal Home Loan Bank advances 40,000 40,000
Total liabilities 503,049 455,305
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value;
250,000 authorized, issued and outstanding,
none - -
Common stock, $.01 par value; 50,000,000
authorized, issued and outstanding:
2005 - 5,015,753 issued, 5,015,749 outstanding 50 50
2004 - 4,974,979 issued, 4,974,975 outstanding
Additional paid-in capital 41,112 40,187
Retained earnings 29,874 26,330
Unearned shares issued to employee stock
ownership trust (1,392) (1,598)
Accumulated other comprehensive (loss) income (122) 213
--------- ---------
Total shareholders' equity 69,522 65,182
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 572,571 $ 520,487
========= =========
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Riverview Bancorp, Inc.
May 13, 2005
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND TWELVE MONTHS ENDED
MARCH 31, 2005 AND 2004
Three Months TWELVE MONTHS
(Unaudited) ENDED MARCH 31, ENDED MARCH 31,
(In thousands, except share data) 2005 2004 2005 2004
------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 7,258 $ 6,565 $ 27,764 $25,634
Interest on investment securities -
taxable 154 139 521 357
Interest on investment securities -
nontaxable 43 38 174 121
Interest on mortgage-backed securities 152 135 634 613
Other interest and dividends 242 158 875 859
------- ------- -------- -------
Total interest income 7,849 7,035 29,968 27,584
------- ------- -------- -------
INTEREST EXPENSE:
Interest on deposits 1,639 1,079 5,380 4,643
Interest on borrowings 506 493 2,015 1,984
------- ------- -------- -------
Total interest expense 2,145 1,572 7,395 6,627
------- ------- -------- -------
Net interest income 5,704 5,463 22,573 20,957
Less provision for loan losses 150 140 410 210
------- ------- -------- -------
Net interest income after
provision for loan losses 5,554 5,323 22,163 20,747
------- ------- -------- -------
NON-INTEREST INCOME (LOSS):
Fees and service charges 1,149 952 4,588 4,324
Asset management services 305 240 1,120 906
Gain on sale of loans held for sale 104 165 513 954
(Loss)gain on sale/impairment of
securities 164 - (1,185) -
Gain on sale of other real estate owned 8 - 8 49
Loan servicing income 2 9 47 158
Gain on sale of land and fixed assets 1 1 830 3
Bank owned life insurance 86 121 486 121
Other 26 17 99 74
------- ------- -------- -------
Total non-interest income 1,845 1,505 6,506 6,589
------- ------- -------- -------
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,744 2,586 10,773 9,910
Occupancy and depreciation 730 763 2,991 2,900
Data processing 251 242 991 917
Amortization of core deposit intangible 33 120 180 430
Advertising and marketing 128 76 766 772
FDIC insurance premium 14 15 58 64
State and local taxes 128 109 519 426
Telecommunications 75 84 288 269
Professional fees 447 160 842 501
Other 365 334 1,696 1,383
------- ------- -------- -------
Total non-interest expense 4,915 4,489 19,104 17,572
------- ------- -------- -------
INCOME (LOSS) BEFORE FEDERAL INCOME TAXES 2,484 2,339 9,565 9,764
PROVISION (BENEFIT) FOR FEDERAL INCOME
TAXES 816 742 3,036 3,210
------- ------- -------- -------
NET INCOME $ 1,668 $ 1,597 $ 6,529 $ 6,554
======= ======= ======== =======
Earnings per common share:
Basic $0.34 $0.33 $1.36 $1.41
Diluted 0.34 0.33 1.33 1.39
Weighted average number of shares
outstanding:
Basic 4,839,523 4,778,067 4,816,745 4,640,485
Diluted 4,913,825 4,858,556 4,891,173 4,714,329
(more)
Riverview Bancorp, Inc.
May 13, 2005
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
AT OR FOR THE AT OR FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 2005 MARCH 31, 2004
-------------- --------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $ 479,512 $ 443,525
Average interest-bearing liabilities 388,426 361,984
Net average earning assets 91,086 81,541
Non-performing assets 726 2,043
Non-performing loans 456 1,301
Allowance for loan losses 4,395 4,481
Average interest-earning assets to
average interest-bearing liabilities 123.45% 122.53%
Allowance for loan losses to non-performing
loans 963.82 344.43
Allowance for loan losses to net loans 1.01 1.16
Non-performing loans to total net loans 0.10 0.34
Non-performing assets to total assets 0.13 0.39
Shareholders' equity to assets 12.14 12.52
Number of banking facilities 14 14
March 31, March 31,
2005 2004
--------- ---------
LOAN DATA
Residential:
One-to-four-family $ 36,059 $ 43,378
Multi-family 2,537 5,008
Construction:
One-to-four-family 43,633 47,589
Multi-family - -
Commercial real estate 10,982 1,453
Commercial 57,981 57,578
Consumer:
Secured 28,951 27,071
Unsecured 1,668 1,689
Land 28,889 25,321
Commercial real estate 223,144 176,521
--------- ---------
433,844 385,608
Less:
Allowance for loan losses 4,395 4,481
--------- ---------
Loans receivable, net $ 429,449 $ 381,127
========= =========
(more)
Riverview Bancorp, Inc.
May 13, 2005
Page 6
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(UNAUDITED)
AT OR FOR THE AT OR FOR THE
THREE MONTHS TWELVE MONTHS
ENDED ENDED
March 31, March 31,
----------------- --------=--------
SELECTED OPERATING DATA 2005 2004 2005 2004
----------------------- ------- ------- ------- -------
(Dollars in thousands, except share data)
Efficiency ratio (4) 65.11% 64.42% 65.70% 63.79%
Efficiency ratio net of intangible
amortization 64.02 62.03 64.46 61.84
Efficiency ratio net of intangible
amortization and impairment charge 64.02 62.03 61.63 61.84
Coverage ratio net of intangible
amortization 116.84 125.04 119.28 122.26
Return on average assets (1) 1.23 1.27 1.24 1.35
Return on average assets excluding
impairment charge 1.23 1.27 1.40 1.35
Return on average equity (1) 9.65 9.82 9.56 10.60
Return on average equity excluding
impairment charge 9.65 9.82 10.87 10.60
Net interest margin 4.65 4.87 4.74 4.76
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.34 $ 0.33 $ 1.36 $ 1.41
Diluted earnings per share (3) 0.34 0.33 1.33 1.39
Book value per share (2) 14.35 13.64 14.35 13.64
Tangible book value per share (2) 12.24 11.42 12.24 11.42
Market price per share:
High for period 22.480 21.430 22.50 21.740
Low for the period 21.000 19.350 19.490 16.300
Close for period end 21.250 20.200 21.250 20.200
Cash dividends declared per share 0.155 0.140 0.620 0.560
Average number of shares outstanding:
Basic (2) 4,839,523 4,778,067 4,816,745 4,640,485
Diluted (3) 4,913,825 4,858,556 4,891,173 4,714,329
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalent.
(4) Non-interest expense divided by net interest income plus non-interest
income.
###
Exhibit 99.7
News Release of Riverview Bancorp, Inc. dated July 18, 2005
Contacts: Pat Sheaffer or Ron Wysaske,
Riverview Bancorp 360-693-6650
==============================================================================
RIVERVIEW BANCORP REPORTS FIRST FISCAL QUARTER REVENUES INCREASE 13%;
LOAN PORTFOLIO INCREASES 47%, NET INTEREST INCOME INCREASES 28%
Vancouver, WA - July 18, 2005 - Riverview Bancorp, Inc. (Nasdaq: RVSB) today
reported strong loan and deposit growth both organically and through the
acquisition of American Pacific Bank, contributed to a 28% increase in net
interest income and a 47% increase in its loan portfolio for the first fiscal
quarter ended June 30, 2005 as compared to the same period in the prior year.
Net income was $1.8 million, or $0.33 per diluted share, in the first quarter
of fiscal 2006. To reflect its larger loan portfolio, Riverview increased its
loan loss provision for the quarter to $450,000 versus $140,000 in the first
quarter a year ago. In the first fiscal quarter a year ago, which included
$828,000 pre-tax gain on the sale of the Camas branch and operations center,
or $0.11 per diluted share to earnings, Riverview earned $2.2 million, or
$0.45 per diluted share.
On April 22, 2005, Riverview completed its acquisition of Portland,
Oregon-based American Pacific Bank, resulting in acquisition of $127.2 million
of total assets, $120.3 million of loans and $80.0 million of deposits.
"Acquiring American Pacific Bank, a high-performing community bank located in
a premium, high-growth area, is consistent with our ongoing strategy of
expanding our commercial banking franchise," said Pat Sheaffer, Chairman and
CEO. "We have shifted our loan portfolio mix by adding higher-yielding
commercial credits, grown core deposits and decreased our dependence on CDs,
which should result in higher margins going forward. In addition, we expect
this transaction to be accretive to earnings within the first year."
First Quarter Financial Highlights (at or periods ended June 30, 2005 compared
to June 30, 2004)
* Completed acquisition of American Pacific Bank.
* Added $450,000 to its loan loss provision, compared to $140,000.
* Net interest income increased 28% to $7.1 million.
* Total assets increased 43% to $737 million.
* Loans increased 47% to $561 million.
* Loan mix shifted resulting in a greater concentration of land and
commercial real estate loans.
* Deposits grew 45% to $583 million, with a 25% increase in transaction
account balances.
* Non-performing assets were 0.33% of total assets.
Balance Sheet Growth
"The loans added from American Pacific Bank are primarily land and commercial
real estate loans, all of which have undergone a thorough underwriting by our
lenders to make sure they conform to our standards. These loans, along with
our internally generated loans, combined to increase the commercial real
estate loans and land development loans in our portfolio by 91%. They now
account for 61% of the portfolio at June 30, 2005, compared to 47% a year
ago," said Ron Wysaske, President and COO. Net loans at June 30, 2005 were
$571 million compared to $390 million at June 30, 2004. Permanent
single-family loans represent just 6% of Riverview's loan portfolio.
Total assets increased 43% to a record $737 million at June 30, 2005, compared
to $515 million a year ago. Deposits grew 45% to $583 million compared to
$403 million at June 30, 2004. "Building transaction accounts continues to be
our focus while we decrease the emphasis on certificate of deposits," added
Wysaske. "We reduced interest sensitive wholesale deposits by $4.5 million
while we increased core deposits by $185 million; a 46% increase over core
deposits at June 30, 2004."
(more)
Riverview Bancorp, Inc. First Quarter Earnings
July 18, 2005
Page 2
Including the issuance of $16.7 million in stock associated with the American
Pacific Bank acquisition, shareholders' equity increased 32% to $87.4 million,
from $66.2 million at the end of the first fiscal quarter last year. Book
value was $15.06 at June 30, 2005, compared to $13.28 a year earlier.
Tangible book value was $10.25 at June 30, 2005, compared to $11.18 a year
ago.
Operating Results
In the first fiscal quarter, net interest income before the provision for loan
loss increased 28% to $7.1 million, compared to $5.6 for the like quarter a
year ago. For the quarter, the net interest margin was 4.70%, a five basis
point improvement from the net interest margin of 4.65% in previous quarter.
The net interest margin was 4.90% in the first fiscal quarter of 2005.
Revenues (net interest income before the provision for loan losses plus
non-interest income) increased 13% to $9.3 million for the quarter, compared
to $8.2 million in the first fiscal quarter last year.
Non-interest income was $2.2 million in the first fiscal quarter of 2006,
compared to $2.6 million in the prior year's first quarter. Non-interest
income for the first fiscal quarter of 2006 decreased by 17% due to the gain
on sale of the Camas branch last year, in the first fiscal quarter of 2005.
Excluding the prior year's $828,000 pre-tax gain on sale, non-interest income
increased 21% compared to the like quarter a year ago.
"Acquisition and Sarbanes-Oxley-related expenses were $300,000 in the first
quarter, and I anticipate these expenses to dramatically decrease going
forward," Sheaffer added. For the first fiscal quarter of 2006, non-interest
expense was $6.1 million compared to $4.8 million during the same period a
year ago. Net of intangible amortization, the efficiency ratio was 64.77% for
the quarter, compared to 57.54% in the first fiscal quarter of 2005.
Credit Quality and Performance Measures
Non-performing assets were 0.33% of total assets at June 30, 2005, compared to
0.34% of total assets a year ago. The allowance for loan losses was $6.5
million or 1.15% of total net loans outstanding at June 30, 2005, compared to
$4.5 million or 1.16% of total net loans at June 30, 2004. Riverview
increased its allowance for loan losses by 45% to account for the increase in
total loans due to the American Pacific acquisition.
Riverview's first fiscal quarter 2006 return on average assets (ROA) was
1.09%, compared to return on average assets of 1.74% for the first fiscal
quarter of 2005. Return on average equity was 8.89% for the quarter, compared
to 13.32% for the same period last year.
Conference Call
Riverview Bancorp will host a conference call Tuesday, July 19, at 8:00 a.m.
PDT, to discuss first quarter results. The conference call can be accessed
live by telephone at 303-262-2137. To listen to the call online go to
www.actioncast.acttel.com and use event ID 29412. An archived recording of
the call can be accessed by dialing 303-590-3000 access code 11033254# until
Tuesday, July 26, 2005 or via the Internet at www.actioncast.acttel.com and
use event ID 29412.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington just north of Portland, Oregon on the I-5 corridor. With assets
of $737 million it is the parent company of the 82 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. In addition to the Oregon branches acquired from American Pacific Bank,
there are 13 Southwest Washington full service branch locations, including
nine in Clark County along with two lending centers. Riverview offers true
community banking, focusing on providing the highest quality service and
financial products to commercial and retail customers.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the American Pacific acquisition and
efficiently manage expenses. Additional factors that could cause actual
results to differ materially are disclosed in Riverview Bancorp's recent
filings with the SEC, including but not limited to Annual Reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
(more)
Riverview Bancorp, Inc. First Quarter Earnings
July 18, 2005
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2005, MARCH 31, 2005 AND JUNE 30, 2004
June 30, March 31, June 30,
(In thousands, except share data) (Unaudited) 2005 2005 2004
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $52,262,
$45,501 and $17,235) $ 74,485 $ 61,719 $ 37,341
Loans held for sale 159 510 821
Investment securities available for sale, at fair value
(amortized cost of $24,136, $22,993 and $32,713) 24,148 22,945 32,079
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $2,297, $2,402 and $2,488) 2,260 2,343 2,448
Mortgage-backed securities available for sale, at fair value
(amortized cost of $10,913, $11,756 and $14,386) 10,828 11,619 14,303
Loans receivable (net of allowance for loan losses of $6,526
$4,395 and $4,489) 561,012 429,449 382,057
Real estate owned - 270 460
Prepaid expenses and other assets 2,166 1,538 3,604
Accrued interest receivable 2,664 2,151 1,705
Federal Home Loan Bank stock, at cost 7,350 6,143 6,078
Premises and equipment, net 9,339 8,391 8,618
Deferred income taxes, net 2,483 2,624 3,089
Mortgage servicing intangible, net 458 470 601
Goodwill 26,356 9,214 9,214
Core deposit intangible, net 1,055 578 678
Bank owned life insurance 12,726 12,607 12,275
----------- ---------- -----------
TOTAL ASSETS $ 737,489 $ 572,571 $ 515,371
=========== ========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 582,830 $ 456,878 $ 402,632
Accrued expenses and other liabilities 8,259 5,858 6,402
Advance payments by borrowers for taxes and insurance 98 313 94
Federal Home Loan Bank advances 58,904 40,000 40,000
----------- ---------- -----------
Total liabilities 650,091 503,049 449,128
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000
authorized, issued and outstanding, none - - -
Common stock, $.01 par value; 50,000,000 authorized,
June 30, 2005 - 5,804,953 issued, 5,804,949 outstanding; 58 50 50
March 31, 2005 - 5,015,753 issued, 5,015,749 outstanding
June 30, 2004 - 4,986,979 issued, 4,986,975 outstanding
Additional paid-in capital 57,991 41,112 40,427
Retained earnings 30,737 29,874 27,786
Unearned shares issued to employee stock ownership trust (1,340) (1,392) (1,547)
Accumulated other comprehensive loss (48) (122) (473)
----------- ---------- -----------
Total shareholders' equity 87,398 69,522 66,243
----------- ---------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 737,489 $ 572,571 $ 515,371
=========== ========== ===========
(more)
Riverview Bancorp, Inc. First Quarter Earnings
July 18, 2005
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY Three Months Ended
CONSOLIDATED STATEMENTS OF INCOME June 30,
(In thousands, except share data) (Unaudited) 2005 2004
------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 9,597 $ 6,626
Interest on investment securities-taxable 186 124
Interest on investment securities-non taxable 43 44
Interest on mortgage-backed securities 145 160
Other interest and dividends 254 139
---------- ----------
Total interest income 10,225 7,093
---------- ----------
INTEREST EXPENSE:
Interest on deposits 2,471 1,043
Interest on borrowings 656 496
---------- ----------
Total interest expense 3,127 1,539
---------- ----------
Net interest income 7,098 5,554
Less provision for loan losses 450 140
---------- ----------
Net interest income after
provision for loan losses 6,648 5,414
---------- ----------
NON-INTEREST INCOME:
Fees and service charges 1,486 1,170
Asset management fees 364 272
Gain on sale of loans held for sale 126 175
Gain on sale of real estate owned 21 -
Loan servicing income 27 19
Gain on sale of land and fixed assets - 828
Bank owned life insurance income 120 154
Other 43 22
---------- ----------
Total non-interest income 2,187 2,640
---------- ----------
NON-INTEREST EXPENSE:
Salaries and employee benefits 3,399 2,646
Occupancy and depreciation 803 773
Data processing 365 249
Amortization of core deposit intangible 49 81
Advertising and marketing expense 231 251
FDIC insurance premium 15 15
State and local taxes 135 153
Telecommunications 63 64
Professional fees 363 123
Other 673 477
---------- ----------
Total non-interest expense 6,096 4,832
---------- ----------
INCOME BEFORE INCOME TAXES 2,739 3,222
PROVISION FOR INCOME TAXES 918 1,023
---------- ----------
NET INCOME $ 1,821 $ 2,199
========== ==========
Earnings per common share:
Basic $0.34 $0.46
Diluted 0.33 0.45
Weighted average number of shares outstanding:
Basic 5,389,547 4,790,785
Diluted 5,457,270 4,864,583
(more)
Riverview Bancorp, Inc. First Quarter Earnings
July 18, 2005
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the
At or for the three months ended year ended
June 30, March 31,
2005 2004 2005
----------- ---------- -------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $ 608,973 $ 458,378 $ 479,512
Average interest-bearing liabilities 505,581 375,594 388,426
Net average earning assets 103,392 82,784 91,086
Non-performing assets 2,420 1,730 726
Non-performing loans 2,420 1,270 456
Allowance for loan losses 6,526 4,489 4,395
Average interest-earning assets to average
interest-bearing liabilities 120.45% 122.04% 123.45%
Allowance for loan losses to non-performing
loans 269.67% 353.46% 963.82%
Allowance for loan losses to net loans 1.15% 1.16% 1.01%
Non-performing loans to total net loans 0.43% 0.33% 0.10%
Non-performing assets to total assets 0.33% 0.34% 0.13%
Shareholders' equity to assets 11.85% 12.85% 12.14%
Number of banking facilities 17 14 14
At three months ended At the year ended
June 30, March 31,
LOAN DATA 2005 2004 2005
--------- ----------- ---------- -----------------
Residential:
One-to-four-family $ 34,324 $ 43,124 $ 36,514
Multi-family 2,037 5,046 2,568
Construction:
One-to-four-family 48,932 45,191 44,415
Commercial real estate 29,390 1,453 11,138
Commercial 67,239 58,608 58,042
Consumer:
Secured 29,040 28,576 28,782
Unsecured 4,811 1,966 1,668
Land 36,924 24,784 29,151
Commercial real estate 318,631 180,771 224,691
---------- ---------- ----------------
571,328 389,519 436,969
Less:
Deferred loan fees, net 3,790 2,973 3,125
Allowance for loan losses 6,526 4,489 4,395
---------- ---------- ----------------
Loans receivable, net $ 561,012 $ 382,057 $ 429,449
========== ========== ================
(more)
Riverview Bancorp, Inc. First Quarter Earnings
July 18, 2005
Page 6
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the At or for the
three months end year ended
June 30, March 31,
SELECTED OPERATING DATA 2005 2004 2005
----------------------- -------- ------- --------
(Dollars in thousands, except share data)
Efficiency ratio (4) 65.65% 58.97% 65.70%
Efficiency ratio net of
intangible amortization 64.77% 57.54% 64.46%
Efficiency ratio net of
intangible amortization and
impairment charge 64.77% 57.54% 61.63%
Coverage ratio net of intangible
amortization 117.38% 116.90% 119.28%
Return on average assets (1) 1.09% 1.74% 1.24%
Return on average assets excluding
impairment charge (1) 1.09% 1.74% 1.40%
Return on average equity (1) 8.89% 13.32% 9.56%
Return on average equity excluding
impairment charge (1) 8.89% 13.32% 10.87%
Net interest margin 4.70% 4.90% 4.74%
PER SHARE DATA
--------------
Basic earnings per share (3) $ 0.34 $ 0.46 $ 1.36
Diluted earnings per share (3) 0.33 0.45 1.33
Book value per share (2) 15.06 13.28 13.86
Tangible book value per share (2) 10.25 11.18 11.81
Market price per share:
High for the period 21.800 21.000 22.500
Low for the period 20.330 19.490 19.490
Close period end 21.350 20.730 21.250
Cash dividends declared per
share 0.170 0.155 0.620
Average number of shares outstanding:
Basic (3) 5,389,547 4,790,785 4,816,745
Diluted (3) 5,457,270 4,864,583 4,891,173
(1) Amounts are annualized.
(2) Amounts calculated include ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income plus non-interest
income.
# # #
Exhibit 99.8
News Release of Riverview Bancorp, Inc. dated October 17, 2005
Contacts: Pat Sheaffer or Ron Wysaske,
Riverview Bancorp 360-693-6650
==============================================================================
RIVERVIEW BANCORP REPORTS RECORD SECOND QUARTER PROFIT OF $2.6 MILLION;
LOAN PORTFOLIO INCREASES 50%, NET INTEREST INCOME INCREASES 40%
Vancouver, WA - October 17, 2005 - Riverview Bancorp, Inc. (Nasdaq: RVSB)
today reported strong organic growth, coupled with contributions from a recent
acquisition, generated improved net interest income and contributed to a 35%
increase in fiscal second quarter profits compared to the same period in the
prior year. Net income was $2.6 million, or $0.45 per diluted share, in the
second quarter of fiscal 2006 ended September 30, 2005, compared to $1.9
million, or $0.39 per diluted share, in the same period a year ago. For the
first six months of fiscal 2006 net income increased 7% to $4.4 million, or
$0.78 per diluted share, compared to $4.1 million, or $0.84 per diluted share,
in the same period a year ago.
"We are continuing to focus on building a well-rounded commercial bank," said
Pat Sheaffer, Chairman and CEO. "Our business fundamentals remain strong as
our revenues, loans and deposits have steadily increased. We are also moving
forward with expanding our franchise. The acquisition of American Pacific
Bank is already contributing to profitability, and expands our footprint into
the large greater Portland, (Oregon) market. We are also in the process of
building two new bank facilities in Vancouver, Washington, which we expect to
open in the third quarter of fiscal year 2006."
Second Quarter Financial Highlights (at or periods ended September 30, 2005
compared to September 30, 2004)
* Net income increased 35% to a record $2.6 million.
* Net interest income increased 40% to $8.1 million.
* Revenues increased 42% to $10.6 million.
* Total assets increased 41% to $739 million.
* Loans increased 50% to $579 million, with an increasing concentration of
commercial real estate loans.
* Deposits grew 46% to $600 million, with a 48% increase in transaction
account balances.
* Non-performing assets were just 0.14% of total assets.
Operating Results
Revenues (net interest income before the provision for loan losses plus
non-interest income) increased 42% to $10.6 million for the quarter compared
to $7.5 million in the same quarter a year ago. Net interest income before
the provision for loan loss increased 40% to $8.1 million in the second
quarter of fiscal 2006 compared to $5.8 in the second quarter a year ago.
Non-interest income increased 46% to $2.5 million in the second fiscal quarter
of 2006 compared to $1.7 million in the prior year's second quarter. This
increase was largely due to a 40% increase in fee based transaction accounts
and mortgage broker activity, which contributed $1.6 million to second quarter
revenue, compared to $1.1 million in the same quarter a year ago. Riverview
also sold the American Pacific Bank's credit card portfolio in the second
fiscal quarter, which led to a pre-tax gain on sale of $304,000.
For the first half of fiscal 2006 revenues increased 27% to $19.9 million
compared to $15.7 million in the six-month period a year ago. Year-to-date
net interest income before the provision for loan losses increased 34% to
$15.2 million compared to $11.3 million in the same period a year ago.
Non-interest income increased 8% to $4.7 million in the first six months of
fiscal 2006 compared to $4.3 million in the first six months of fiscal 2005.
"Our objective is to position our asset and liability mix to maintain or
improve our net interest margin as interest rates change in either direction.
In the past twelve months the fed funds rate has increased 200 basis points.
Our net interest margin has increased 4 basis points from a 4.89% net interest
margin at September 30, 2004, to a 4.93% net interest margin at September 30,
2005," said Ron Wysaske, President and COO. "Our relatively stable interest
rate risk profile has allowed the net interest margin to absorb the increasing
interest rates and still provide a respectable net interest margin."
(more)
Riverview Bancorp, Inc. Second Quarter Earnings
October 17, 2005
Page 2
"We saw a significant increase in non-interest expense for the quarter and for
the first six months of the fiscal year as a result of the acquisition of
American Pacific Bank and Sarbanes-Oxley related expenses," said Ron Wysaske.
Non-interest expense was $6.3 million in the second quarter compared to $4.6
million during the same period a year ago. For the first half of the fiscal
year, non-interest expenses were $12.4 million up from $9.4 million in the
like period a year ago. Net of intangible amortization, the efficiency ratio
improved 253 basis points to 58.28% for the quarter, compared to the same
quarter a year ago.
Balance Sheet Growth
"Our focus has been to grow our loan portfolio while maintaining strong loan
quality," said Wysaske. "The loans we added from American Pacific Bank have
all undergone thorough underwriting for quality control. These loans, along
with internally generated loans, combined to increase commercial real estate
loans by 91%." Commercial real estate loans now account for 63% of the
portfolio at September 30, 2005, compared to 49% a year ago. Net loans at
September 30, 2005, were $579 million compared to $386 million at September
30, 2004. Permanent single-family loans represent just 6% of Riverview's loan
portfolio.
Total assets increased 41% to $739 million at September 30, 2005, compared to
$525 million a year ago. Deposits grew 46% to $600 million compared to $412
million at September 30, 2004. "Building transaction accounts continues to be
our focus, while we decrease the emphasis on certificate of deposits," added
Wysaske. "We reduced interest sensitive wholesale deposits by $5 million,
while we increased core deposits by $130 million; a 48% increase over core
deposits at this time last year."
Including the issuance of $16.7 million in stock associated with the American
Pacific Bank acquisition, shareholders' equity increased 32% to $89.1 million,
from $67.7 million at the end of the second fiscal quarter last year. Book
value was $15.34 at September 30, 2005, compared to $13.55 a year earlier.
Tangible book value was $10.56 at September 30, 2005, compared to $11.46 a
year ago.
Credit Quality and Performance Measures
Credit quality remains exceptional, as non-performing assets were just 0.14%
of total assets at September 30, 2005, a 14 basis point improvement compared
to 0.28% of total assets at September 30, 2004. The allowance for loan losses
was $6.8 million, or 1.15% of total net loans outstanding at September 30,
2005, compared to $4.4 million or 1.13% of total net loans at September 30,
2004. "As a reflection of our loan growth, last quarter we stepped up our
provision for loan losses even though our loan quality remains strong." added
Sheaffer. The provision for loan losses for the second quarter was $450,000,
compared to $50,000 in the same quarter of 2004 and $450,000 for the quarter
ended June 30, 2005.
Riverview's second fiscal quarter 2006 return on average assets was 1.40%
compared to return on average assets of 1.45% for the second fiscal quarter of
2005. Return on average equity was 11.36% for the quarter compared to 11.14%
for the same period last year.
Conference Call
Riverview Bancorp will host a conference call Tuesday, October 18, at 8:00
a.m. PDT, to discuss second quarter results. The conference call can be
accessed live by telephone at 303-262-2138. To listen to the call online go
to www.actioncast.acttel.com and use event ID 30623. An archived recording of
the call can be accessed by dialing 303-590-3000 access code 11040263# until
Tuesday, October 25, 2005, or via the Internet at www.actioncast.acttel.com
event ID 30623.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington just north of Portland, Oregon on the I-5 corridor. With assets
of $739 million, it is the parent company of the 82 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. There are 16 branches, including nine in fast growing Clark County, and
one lending center. The bank offers true community banking services, focusing
on providing the highest quality service and financial products to commercial
and retail customers. On April 22, 2005, the company completed its
acquisition of American Pacific Bank (Nasdaq: AMPB), based in Portland,
Oregon, with assets of $125 million.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the American Pacific acquisition and
efficiently manage expenses. Additional factors that could cause actual
results to differ materially are disclosed in Riverview Bancorp's recent
filings with the SEC, including but not limited to Annual Reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
(tables follow)
Riverview Bancorp, Inc.
October 17, 2005
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2005, MARCH 31, 2005 AND SEPTEMBER 30, 2004
SEPTEMBER 30, MARCH 31, SEPTEMBER 30,
(In thousands, except share data) (Unaudited) 2005 2005 2004
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $33,110,
$45,501 and $35,404) $ 56,486 $ 61,719 $ 49,644
Loans held for sale - 510 444
Investment securities available for sale, at fair value
(amortized cost of $24,147 , $22,993 and $30,712) 24,143 22,945 29,813
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $2,223, $2,402 and $2,487) 2,202 2,343 2,428
Mortgage-backed securities available for sale, at fair value
(amortized cost of $10,047, $11,756 and $13,445) 9,898 11,619 13,579
Loans receivable (net of allowance for loan losses of $6,752,
$4,395 and $4,424) 579,443 429,449 386,063
Real estate owned - 270 -
Prepaid expenses and other assets 1,824 1,538 1,234
Accrued interest receivable 2,807 2,151 1,803
Federal Home Loan Bank stock, at cost 7,350 6,143 6,119
Premises and equipment, net 11,862 8,391 8,401
Deferred income taxes, net 2,377 2,624 3,111
Mortgage servicing intangible, net 414 470 564
Goodwill 26,354 9,214 9,214
Core deposit intangible, net 1,001 578 643
Bank owned life insurance 12,848 12,607 12,397
--------- --------- ----------
TOTAL ASSETS $ 739,009 $ 572,571 $ 525,457
========= ========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 599,680 $ 456,878 $ 411,702
Accrued expenses and other liabilities 8,920 5,858 5,776
Advance payments by borrowers for taxes and insurance 325 313 286
Federal Home Loan Bank advances 40,938 40,000 40,000
--------- --------- ----------
Total liabilities 649,863 503,049 457,764
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000
authorized, issued and outstanding, none - - -
Common stock, $.01 par value; 50,000,000 authorized
September 30, 2005 - 5,811,940 issued, 5,811,936
outstanding;
March 31, 2005 - 5,015,753 issued, 5,015,749
outstanding;
September 30, 2004 - 4,997,300 issued, 4,997,296
outstanding; 58 50 50
Additional paid-in capital 58,139 41,112 40,698
Retained earnings 32,339 29,874 28,945
Unearned shares issued to employee stock ownership trust (1,289) (1,392) (1,495)
Accumulated other comprehensive loss (101) (122) (505)
--------- --------- ----------
Total shareholders' equity 89,146 69,522 67,693
--------- --------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 739,009 $ 572,571 $ 525,457
========= ========= ==========
(more)
Riverview Bancorp, Inc.
October 17, 2005
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND SIX MONTHS ENDED Three Months Ended Six Months Ended
SEPTEMBER 30, 2005 AND 2004 September 30, September 30,
(In thousands, except share data) (Unaudited) 2005 2004 2005 2004
------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 11,010 $ 6,997 $ 20,607 $ 13,623
Interest on investment securities-taxable 195 125 381 249
Interest on investment securities-non taxable 43 43 86 87
Interest on mortgage-backed securities 138 164 283 324
Other interest and dividends 250 201 504 340
-------- ------- -------- --------
Total interest income 11,636 7,530 21,861 14,623
-------- ------- -------- --------
INTEREST EXPENSE:
Interest on deposits 3,059 1,260 5,530 2,303
Interest on borrowings 482 504 1,138 1,000
-------- ------- -------- --------
Total interest expense 3,541 1,764 6,668 3,303
-------- ------- -------- --------
Net interest income 8,095 5,766 15,193 11,320
Less provision for loan losses 450 50 900 190
-------- ------- -------- --------
Net interest income after
provision for loan losses 7,645 5,716 14,293 11,130
-------- ------- -------- --------
NON-INTEREST INCOME:
Fees and service charges 1,598 1,142 3,084 2,312
Asset management fees 342 257 706 529
Gain on sale of loans held for sale 77 137 203 312
Gain on sale of real estate owned - - 21 -
Loan servicing income (expense) (8) 15 19 34
Gain on sale of land and fixed assets - 1 - 829
Gain on sale of credit card portfolio 304 - 304 -
Bank owned life insurance 122 122 242 276
Other 47 24 90 46
-------- ------- -------- --------
Total non-interest income 2,482 1,698 4,669 4,338
-------- ------- -------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits 3,441 2,587 6,840 5,233
Occupancy and depreciation 883 739 1,686 1,512
Data processing 373 237 738 486
Amortization of core deposit intangible 55 34 104 115
Advertising and marketing expense 306 222 537 473
FDIC insurance premium 17 15 32 30
State and local taxes 148 122 283 275
Telecommunications 99 70 162 134
Professional fees 388 129 752 252
Other 551 459 1,223 936
-------- ------- -------- --------
Total non-interest expense 6,261 4,614 12,357 9,446
-------- ------- -------- --------
INCOME BEFORE INCOME TAXES 3,866 2,800 6,605 6,022
PROVISION FOR INCOME TAXES 1,304 898 2,222 1,921
-------- ------- -------- --------
NET INCOME $ 2,562 $ 1,902 $ 4,383 $ 4,101
======== ======= ======== ========
Earnings per common share:
Basic $ 0.45 $ 0.40 $ 0.79 $ 0.85
Diluted 0.45 0.39 0.78 0.84
Weighted average number of shares outstanding:
Basic 5,654,661 4,812,154 5,553,872 4,801,528
Diluted 5,721,905 4,885,447 5,621,343 4,875,146
(more)
Riverview Bancorp, Inc.
October 17, 2005
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the six months ended At or for the year
September 30, ended March 31,
2005 2004 2005
----------- --------- -------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $ 631,307 $ 464,861 $ 479,512
Average interest-bearing liabilities 522,114 378,081 388,426
Net average earning assets 109,193 86,780 91,086
Non-performing assets 1,043 1,478 726
Non-performing loans 1,043 1,478 456
Allowance for loan losses 6,752 4,424 4,395
Average interest-earning assets to average
interest-bearing liabilities 120.91% 122.95% 123.45%
Allowance for loan losses to non-performing
loans 647.36% 299.32% 963.82%
Allowance for loan losses to net loans 1.15% 1.13% 1.01%
Non-performing loans to total net loans 0.18% 0.38% 0.10%
Non-performing assets to total assets 0.14% 0.28% 0.13%
Shareholders' equity to assets 12.06% 12.88% 12.14%
Number of banking facilities 17 14 14
At six months ended At three months At year ended
September 30, ended June 30, March 31,
LOAN DATA 2005 2004 2005 2005
--------- --------- -------- ------------ -----------
Residential:
One-to-four-family $ 32,251 $ 40,681 $ 34,324 $ 36,514
Multi-family 2,019 4,060 2,037 2,568
Construction:
One-to-four-family 44,618 38,991 48,932 44,415
Commercial real estate 54,224 1,453 29,390 11,138
Commercial 69,401 58,965 67,239 58,042
Consumer:
Secured 28,730 29,896 29,040 28,782
Unsecured 1,688 1,897 4,811 1,668
Land 42,532 25,346 36,924 29,151
Commercial real estate 314,776 192,097 318,631 224,691
--------- --------- ------------ -----------
590,239 393,386 571,328 436,969
Less:
Deferred loan fees, net 4,044 2,899 3,791 3,125
Allowance for loan losses 6,752 4,424 6,526 4,395
--------- --------- ------------ -----------
Loans receivable, net $ 579,443 $ 386,063 $ 561,011 $ 429,449
========= ========= ============ ===========
Riverview Bancorp, Inc.
October 17, 2005
Page 6
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For the three months ended For the six months ended
September 30, September 30,
SELECTED OPERATING DATA 2005 2004 2005 2004
--------- --------- --------- ---------
Efficiency ratio (4) 59.19% 61.82% 62.21% 60.33%
Efficiency ratio net of intangible
amortization 58.28% 60.81% 61.32% 59.10%
Coverage ratio net of intangible
amortization 130.44% 125.90% 123.99% 121.32%
Return on average assets (1) 1.40% 1.45% 1.25% 1.59%
Return on average equity (1) 11.36% 11.14% 10.19% 12.21%
Average rate earned on interest-earning
assets 7.08% 6.38% 6.92% 6.32%
Average rate paid on interest-bearing
liabilities 2.61% 1.84% 2.55% 1.74%
Spread 4.47% 4.54% 4.37% 4.57%
Net interest margin 4.93% 4.89% 4.82% 4.90%
At or for the three months At or for the six months
ended September 30, ended September 30,
2005 2004 2005 2004
-------- -------- --------- --------
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.45 $ 0.40 $ 0.79 $ 0.85
Diluted earnings per share (3) 0.45 0.39 0.78 0.84
Book value per share 15.34 13.55 15.34 13.55
Tangible book value per share 10.56 11.46 10.56 11.46
Market price per share:
High for period 22.100 21.650 22.100 21.650
Low for the period 20.750 19.850 20.330 19.490
Close for period end 20.810 21.360 20.810 21.360
Cash dividends declared per share 0.170 0.155 0.340 0.310
Average number of shares outstanding:
Basic (2) 5,654,661 4,812,154 5,553,872 4,801,528
Diluted (3) 5,721,905 4,885,447 5,621,343 4,875,146
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and include common stock
equivalents.
(4) Non-interest expense divided by net interest income plus non-interest income.
# # #
Exhibit 99.9
News Release of Riverview Bancorp, Inc. dated January 24, 2006
Contacts: Pat Sheaffer or Ron Wysaske,
Riverview Bancorp 360-693-6650
==============================================================================
RIVERVIEW BANCORP REPORTS RECORD THIRD QUARTER PROFIT OF $2.7 MILLION
---------------------------------------------------------------------
Vancouver, WA - January 24, 2006 - Riverview Bancorp, Inc. (Nasdaq: RVSB)
today reported that an expanding net interest margin and excellent loan growth
generated improved net interest income and contributed to a record fiscal 2006
third quarter profit. Net income was $2.7 million, or $0.48 per diluted
share, for the fiscal third quarter ended December 31, 2005, compared to
$760,000, or $0.16 per diluted share, in the same quarter a year ago.
Year-to-date, net income increased 47% to $7.1 million, or $1.26 per diluted
share, compared to $4.9 million, or $1.00 per diluted share, in the same
period a year ago.
In the third quarter a year ago, the Company recorded a non-cash,
non-operating charge of approximately $890,000 after-tax, or $0.18 per diluted
share, related to the valuation of certain Fannie Mae and Freddie Mac
preferred stock which have been subsequently sold.
"We are focused on growing our franchise, maintaining a strong balance sheet
and matching assets and liabilities closely as we build our presence in the
Northwest," said Pat Sheaffer, Chairman and CEO. "The expansion of our branch
network into the Portland market is already contributing to profitability. We
are also continuing our growth in the Portland metropolitan area, where we
expect to open at least one new bank facility later this year."
Third Quarter Financial Highlights (at or periods ended December 31, 2005
compared to December 31, 2004)
* Net income increased to record $2.7 million.
* Net interest income increased 54% to $8.5 million.
* Net interest margin improved 64 basis points to 5.23%.
* Revenues increased 48% to $10.7 million when the prior year $1.3 pre-tax
million impairment charge is excluded.
* Total assets increased 36% to $739 million.
* Loans increased 50% to $600 million.
* Deposits grew 38% to $592 million, with a 36% increase in transaction
account balances.
* Non-performing assets were just 0.11% of total assets.
Operating Results
Revenues (net interest income before the provision for loan losses plus
non-interest income) increased 48% to $10.7 million for the quarter compared
to $7.2 million in the same quarter a year ago excluding the $1.3 million
pre-tax impairment charge. Net interest income before the provision for loan
loss increased 54% to $8.5 million in the third quarter of fiscal 2006
compared to $5.5 million in the third quarter a year ago. Non-interest income
increased $0.4 million to $2.1 million in the third fiscal quarter of 2006
compared to $1.7 million in the prior year's third quarter excluding the $1.3
pre-tax million impairment charge. This increase was largely due to the 30%
increase in fee based transaction accounts income and mortgage broker
activity, which contributed $1.5 million to third quarter revenue, compared to
$1.1 million in the same quarter a year ago.
For the first nine months of fiscal 2006 revenues increased 42% to $30.5
million compared to $21.5 million in the nine-month period a year ago.
Year-to-date, net interest income before the provision for loan losses
increased 41% to $23.7 million compared to $16.9 million in the same period a
year ago. Non-interest income increased 13% to $6.8 million in the first nine
months of fiscal 2006 compared to $6.0 million in the first nine months of
fiscal 2005 excluding the $1.3 pre-tax million impairment charge.
Riverview's net interest margin was 5.23% for the third fiscal quarter of
2006, a 30 basis point improvement compared to 4.93% in the previous quarter,
and a 64 basis point improvement from 4.59% for the third fiscal quarter of
2005. "Our improved margin reflects our growth in loans and our asset
sensitive balance sheet," said Ron Wysaske, President and COO. The net
interest margin for the first nine months of fiscal 2006 expanded 17 basis
points to 4.96% from 4.79% in the nine-month period a year ago.
(more)
Riverview Bancorp, FY06 YTD Profits Up 47%
January 24, 2006
Page 2
Non-interest expense increased $6.1 million in the third fiscal quarter
compared to $4.7 million during the same period a year ago. For the first
nine months of the fiscal year, non-interest expenses were $18.5 million, up
from $14.2 million in the like period a year ago. Net of intangible asset
amortization, the efficiency ratio improved 146 basis points to 56.82% for the
third fiscal quarter of 2006, compared to 58.28% in the second fiscal quarter
of 2006. The efficiency ratio was 64.61% in the prior year's third fiscal
quarter excluding the impairment charge.
Balance Sheet Growth
"We have been taking steps to grow our loan portfolio while maintaining strong
loan quality," said Wysaske. "As a result, our loan production increased our
net loans 50% in our well diversified loan portfolio." Net loans at December
31, 2005, were $600 million compared to $398 million at December 31, 2004.
Total assets increased 36% to $739 million at December 31, 2005, compared to
$542 million a year ago. Core deposits increased 39%, or $113 million; from
year ago levels, and now account for 67% of total deposits. Deposits grew 38%
to $592 million compared to $428 million at December 31, 2004, but were down
from $600 million at September 30, 2005, due to normal transaction account
activity. "Building transaction accounts continues to be a priority," added
Wysaske. "We reduced interest-sensitive wholesale deposits by $2 million this
year."
Including the issuance of $16.7 million in stock associated with the American
Pacific Bank acquisition, shareholders' equity increased 33% to $90.9 million,
from $68.5 million at the end of the third fiscal quarter last year. Book
value was $15.65 at December 31, 2005, compared to $13.70 a year earlier.
Tangible book value was $10.93 at December 31, 2005, compared to $11.63 a year
ago.
Riverview completed the issuance of $7.0 million in trust preferred securities
in the third fiscal quarter 2006. The net proceeds will provide additional
capital for general corporate purposes, including current and future expansion
of the Bank. Under the terms of the transaction, the trust preferred
securities have a maturity of 30 years and are redeemable at par after five
years. The securities require quarterly interest payments (subject to certain
deferment options) and bear an interest rate tied to three-month LIBOR, plus
1.36%
Credit Quality and Performance Measures
Credit quality remains exceptional, as non-performing assets were just 0.11%
of total assets at December 31, 2005, compared to 0.14% of total assets at
December 31, 2004. The allowance for loan losses including loan commitments,
was $7.4 million, or 1.22% of net loans at December 31, 2005, compared to $4.6
million or 1.15% of net loans at December 31, 2004. "Even though our
nonperforming assets are low, due to growth in the loan portfolio we added
$400,000 to the provision for loan losses in the third quarter, compared to
$70,000 in the same quarter of 2004 and $450,000 for the quarter ended
September 30, 2005," Wysaske added.
Riverview's third fiscal quarter 2006 return on average assets was 1.50%
compared to return on average assets of 0.56% for the third fiscal quarter of
2005. Return on average equity was 11.90% for the quarter compared to 4.36%
for the same period last year.
Conference Call
Riverview Bancorp will host a conference call Wednesday, January 25, at 8:00
a.m. PST, to discuss third quarter results. The conference call can be
accessed live at 303-262-2143. To listen to the call online go to
www.actioncast.acttel.com and use event ID 31728. An archived recording of
the call can be accessed by dialing 303-590-3000 access code 11049704# until
Wednesday, February 1, 2006, or via the Internet at www.actioncast.acttel.com
event ID 31728.
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington just north of Portland, Oregon on the I-5 corridor. With assets
of $739 million, it is the parent company of the 82 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. There are 17 branches, including ten in fast growing Clark County, and
one lending center. The Bank offers true community banking services, focusing
on providing the highest quality service and financial products to commercial
and retail customers. On April 22, 2005, the Company completed its
acquisition of American Pacific Bank (Nasdaq: AMPB), based in Portland,
Oregon, with assets of $125 million.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the American Pacific acquisition and
efficiently manage expenses. Additional factors that could cause actual
results to differ materially are disclosed in Riverview Bancorp's recent
filings with the SEC, including but not limited to Annual Reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Riverview Bancorp, FY06 YTD Profits Up 47%
January 24, 2006
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2005, MARCH 31, 2005 AND DECEMBER 31, 2004
DECEMBER 31, MARCH 31, DECEMBER 31,
(In thousands, except share data) (Unaudited) 2005 2005 2004
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $8,338,
$45,501 and $40,914) $ 34,451 $ 61,719 $ 55,423
Loans held for sale - 510 140
Investment securities available for sale, at fair value
(amortized cost of $24,124 , $22,993 and $29,324) 24,011 22,945 29,438
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $2,013, $2,402 and $2,455) 1,991 2,343 2,407
Mortgage-backed securities available for sale, at fair value
(amortized cost of $9,044, $11,756 and $12,645) 8,791 11,619 12,696
Loans receivable (net of allowance for loan losses of $7,050,
$4,395 and $4,391) 599,634 429,449 398,421
Real estate owned - 270 -
Prepaid expenses and other assets 2,103 1,538 1,262
Accrued interest receivable 3,324 2,151 1,874
Federal Home Loan Bank stock, at cost 7,350 6,143 6,119
Premises and equipment, net 14,648 8,391 8,416
Deferred income taxes, net 2,450 2,624 2,827
Mortgage servicing intangible, net 403 470 518
Goodwill 26,058 9,214 9,214
Core deposit intangible, net 948 578 611
Bank owned life insurance 12,968 12,607 12,521
--------- --------- ----------
TOTAL ASSETS $ 739,130 $ 572,571 $ 541,887
========= ========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 592,208 $ 456,878 $ 427,649
Accrued expenses and other liabilities 8,559 5,858 5,645
Advance payments by borrowers for taxes and insurance 146 313 75
Federal Home Loan Bank advances 40,071 40,000 40,000
Junior subordinated debenture 7,217 - -
--------- --------- ----------
Total liabilities 648,201 503,049 473,369
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000
authorized, issued and outstanding, none - - -
Common stock, $.01 par value; 50,000,000 authorized
December 31, 2005 - 5,811,940 issued, 5,811,936 outstanding;
March 31, 2005 - 5,015,753 issued, 5,015,749 outstanding;
December 31, 2004 - 5,001,579 issued, 5,001,575 outstanding; 58 50 50
Additional paid-in capital 58,225 41,112 40,847
Retained earnings 34,125 29,874 28,956
Unearned shares issued to employee stock ownership trust (1,237) (1,392) (1,443)
Accumulated other comprehensive (loss) income (242) (122) 108
--------- --------- ----------
Total shareholders' equity 90,929 69,522 68,518
--------- --------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 739,130 $ 572,571 $ 541,887
========= ========= ==========
(more)
Riverview Bancorp, FY06 YTD Profits Up 47%
January 24, 2006
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME FOR
THE THREE AND NINE MONTHS ENDED Three Months Ended Nine Months Ended
DECEMBER 31, 2005 AND 2004 December 31, December 31,
(In thousands, except share data) (Unaudited) 2005 2004 2005 2004
------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 11,783 $ 6,883 $ 32,390 $ 20,506
Interest on investment securities-taxable 211 162 592 498
Interest on investment securities-non-taxable 42 - 128 -
Interest on mortgage-backed securities 128 158 411 482
Other interest and dividends 126 293 630 633
-------- ------- -------- -------
Total interest income 12,290 7,496 34,151 22,119
-------- ------- -------- -------
INTEREST EXPENSE:
Interest on deposits 3,290 1,438 8,820 3,741
Interest on borrowings 457 509 1,595 1,509
-------- ------- -------- -------
Total interest expense 3,747 1,947 10,415 5,250
-------- ------- -------- -------
Net interest income 8,543 5,549 23,736 16,869
Less provision for loan losses 400 70 1,300 260
-------- ------- -------- -------
Net interest income after
provision for loan losses 8,143 5,479 22,436 16,609
-------- ------- -------- -------
NON-INTEREST INCOME:
Fees and service charges 1,460 1,127 4,544 3,439
Asset management fees 378 286 1,084 815
Gain on sale of loans held for sale 81 97 284 409
Gain on sale of real estate owned - - 21 -
Loss on impairment of securities - (1,349) - (1,349)
Loan servicing income 49 11 68 45
Gain on sale of land and fixed assets 2 - - 829
Gain on sale of credit card portfolio 7 - 311 -
Bank owned life insurance 119 124 361 400
Other 47 27 139 73
-------- ------- -------- -------
Total non-interest income 2,143 323 6,812 4,661
-------- ------- -------- -------
NON-INTEREST EXPENSE:
Salaries and employee benefits 3,681 2,796 10,521 8,029
Occupancy and depreciation 954 749 2,640 2,261
Data processing 335 254 1,073 740
Amortization of core deposit intangible 53 33 157 148
Advertising and marketing expense 160 165 697 638
FDIC insurance premium 19 14 51 44
State and local taxes 136 116 419 391
Telecommunications 117 79 279 213
Professional fees 248 143 1,000 395
Other 445 394 1,668 1,330
-------- ------ -------- --------
Total non-interest expense 6,148 4,743 18,505 14,189
-------- ------ -------- --------
INCOME BEFORE INCOME TAXES 4,138 1,059 10,743 7,081
PROVISION FOR INCOME TAXES 1,390 299 3,612 2,220
-------- ------ -------- --------
NET INCOME $ 2,748 $ 760 $ 7,131 $ 4,861
======== ====== ======== ========
Earnings per common share:
Basic $ 0.49 $ 0.16 $ 1.28 $ 1.01
Diluted 0.48 0.16 1.26 1.00
Weighted average number of shares outstanding:
Basic 5,661,324 4,824,463 5,589,820 4,809,201
Diluted 5,731,472 4,899,840 5,657,012 4,883,538
(more)
Riverview Bancorp, FY06 YTD Profits Up 47%
January 24, 2006
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the At or for
nine months ended the year ended
December 31, March 31,
2005 2004 2005
-------- --------- -----------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $637,599 $ 471,330 $ 479,512
Average interest-bearing
liabilities 525,156 383,703 388,426
Non-performing assets 782 782 726
Non-performing loans 782 782 456
Allowance for loan losses 7,050 4,391 4,395
Average interest-earning assets
to average interest-bearing
liabilities 121.41% 122.84% 123.45%
Allowance for loan losses to
on-performing loans 901.53% 561.51% 963.82%
Allowance for loan losses to net
loans 1.16% 1.09% 1.01%
Allowance for loan losses to net
loans and loan commitments 1.22% 1.15% 1.07%
Non-performing loans to total net
loans 0.13% 0.19% 0.10%
Non-performing assets to total
assets 0.11% 0.14% 0.13%
Shareholders' equity to assets 12.30% 12.64% 12.14%
Number of banking facilities 17 14 14
At six
At nine months ended months ended At year ended
December 31, September 30, March 31,
LOAN DATA 2005 2004 2005 2005
--------- --------- ----------- ------------ ------------
Residential:
One-to-four-family $ 32,350 $ 38,186 $ 32,251 $ 36,514
Multi-family 2,132 3,692 2,019 2,568
Construction:
One-to-four-family 41,578 39,249 44,618 44,415
Commercial real estate 71,546 1,453 54,224 11,138
Commercial 62,221 57,154 69,401 58,042
Consumer:
Secured 29,915 29,849 28,730 28,782
Unsecured 1,617 1,788 1,688 1,668
Land 50,276 27,972 42,532 29,151
Commercial real estate 319,250 206,450 314,776 224,691
--------- ---------- ----------- -----------
610,885 405,793 590,239 436,969
Less:
Deferred loan fees, net 4,201 2,981 4,044 3,125
Allowance for loan losses 7,050 4,391 6,752 4,395
--------- ---------- ----------- -----------
Loans receivable, net $ 599,634 $ 398,421 $ 579,443 $ 429,449
========= ========== =========== ===========
DEPOSIT DATA
------------
Now Accounts $ 75,806 $ 60,052 $ 78,103 $ 65,667
High Yield Checking 60,412 50,683 52,263 50,562
Regular Savings 40,187 34,261 39,732 35,513
Money Market 125,668 78,214 128,926 76,331
Non-Interest Checking 91,514 66,524 103,767 79,499
Certificates of Deposit 198,621 137,915 196,889 149,306
--------- ---------- ----------- -----------
Total Deposits $ 592,208 $ 427,649 $ 599,680 $ 456,878
========= ========== =========== ===========
(more)
Riverview Bancorp, FY06 YTD Profits Up 47%
January 24, 2006
Page 6
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For the three For the nine
months ended months ended
December 31, December 31,
SELECTED OPERATING DATA 2005 2004 2005 2004
----------------------- ------- --------- -------- --------
Efficiency ratio (4) 57.53% 80.77% 60.58% 65.90%
Efficiency ratio net of
intangible amortization 56.82% 79.27% 59.75% 64.61%
Efficiency ratio net of intangible
amortization and impairment
charge 56.82% 64.61% 59.75% 60.83%
Coverage ratio net of intangible
amortization 140.16% 117.79% 129.37% 120.14%
Return on average assets (1) 1.50% 0.56% 1.34% 1.24%
Return on average assets excluding
impairment charge 1.50% 1.22% 1.34% 1.46%
Return on average equity (1) 11.90% 4.36% 10.78% 9.53%
Return on average equity excluding
impairment charge 11.90% 9.47% 10.78% 11.28%
Average rate earned on interest-
earning assets 7.51% 6.18% 7.13% 6.27%
Average rate paid on interest-
bearing liabilities 2.80% 1.96% 2.63% 1.82%
Spread 4.71% 4.22% 4.50% 4.45%
Net interest margin 5.23% 4.59% 4.96% 4.79%
At or for At or for
the three months the nine months
ended December 31, ended December 31,
2005 2004 2005 2004
------- ------- ------- -------
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.49 $ 0.16 $ 1.28 $ 1.01
Diluted earnings per share (3) 0.48 0.16 1.26 1.00
Book value per share (5) 15.65 13.70 15.65 13.70
Tangible book value per share (5) 10.93 11.63 10.93 11.63
Market price per share:
High for period 23.930 22.500 23.930 22.500
Low for the period 20.750 20.950 20.330 19.490
Close for period end 23.310 22.500 23.310 22.500
Cash dividends declared per share 0.170 0.155 0.510 0.465
Average number of shares outstanding:
Basic (2) 5,661,324 4,824,463 5,589,820 4,809,201
Diluted (3) 5,731,472 4,899,840 5,657,012 4,883,538
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income plus non-interest
income.
(5) Amounts calculated include ESOP shares not committed to be released.
# # #
Exhibit 99.10
News Release of Riverview Bancorp, Inc. dated May 4, 2006
Contacts: Pat Sheaffer or Ron Wysaske,
Riverview Bancorp 360-693-6650
RIVERVIEW BANCORP FISCAL 2006 PROFITS INCREASE 49% TO RECORD $9.7 MILLION
-------------------------------------------------------------------------
ASSET QUALITY AND NET INTEREST MARGIN BOTH HAVE IMPROVED
--------------------------------------------------------
Vancouver, WA - May 4, 2006 - Riverview Bancorp, Inc. (Nasdaq: RVSB) today
reported that an expanding net interest margin, coupled with excellent organic
loan and core deposit growth and the contribution from the American Pacific
Bank acquisition generated a 43% increase in net interest income for the
fiscal year ended March 31, 2006. Net income increased 49% to $9.7 million,
or $1.72 per diluted share, in fiscal 2006, compared to $6.5 million, or $1.33
per diluted share, in fiscal 2005. Net income for the fourth fiscal quarter
increased 56% to $2.6 million, or $0.46 per diluted share, compared to $1.7
million, or $0.34 per diluted share, in the same quarter a year ago.
In fiscal 2005, the prior year, the Company recorded a non-cash, non-operating
charge of approximately $890,000 after-tax, or $0.18 per diluted share,
related to the valuation of certain Fannie Mae and Freddie Mac preferred
stocks, which were subsequently sold. Excluding the securities loss, net
income would have been $7.3 million, or $1.49 per diluted share in fiscal
2005.
In the first quarter of fiscal 2006, Riverview completed the acquisition of
American Pacific Bank with $128 million in assets.
"Fiscal 2006 has been an outstanding year for Riverview. We have successfully
grown our balance sheet while improving asset quality, net interest margin and
we continue to grow our franchise," said Pat Sheaffer, Chairman and CEO. "The
acquisition of American Pacific Bank was accretive within the first year and
has been an excellent expansion into the Portland market for us. In addition
to the three acquired branches, we opened our operations center and the tenth
Clark County, Washington branch, bringing our branch network to 17 locations.
We will continue our growth in the Portland Vancouver metropolitan area, where
we expect to open at least one new bank facility later this year."
Fourth Quarter Financial Highlights (at or periods ended March 31, 2006,
compared to March 31, 2005)
* Net income increased 56% to $2.6 million.
* Non-performing assets were just 0.05% of total assets, compared to 0.13%
of total assets a year ago.
* Net interest income increased 51% to $8.6 million.
* Revenues increased 41% to $10.6 million.
* Net interest margin increased 59 basis points to 5.24% compared to 4.65%
a year ago.
* Deposits grew 33% to $607 million.
* Total assets increased 33% to $764 million.
* Loans increased 45% to $623 million.
Operating Results
For fiscal 2006 net interest margin improved 29 basis points to 5.03% compared
to 4.74% a year earlier. "Our asset sensitive balance sheet and growth in
loans has once again helped us expand our margin for the quarter and the
year," said Ron Wysaske, President and COO. "We expect our margin to continue
to benefit in a rising or stable short term interest rate environment."
Revenues (net interest income before the provision for loan losses plus
non-interest income) increased 42% to $41.2 million in fiscal 2006, compared
to $29.1 million a year ago. Net interest income before the provision for
loan losses increased 43% to $32.4 million in fiscal year 2006 compared to
$22.6 million in fiscal year 2005. Non-interest income increased 13% to $8.8
million in fiscal 2006 compared to $7.8 million in fiscal 2005 excluding the
$1.3 pre-tax million impairment charge.
In the fourth quarter, revenues increased 41% to $10.6 million compared to
$7.5 million in the fourth quarter a year ago. Net interest income before the
provision for loan loss increased 51% to $8.6 million in the fourth quarter of
fiscal 2006 compared to $5.7 million in the fourth quarter a year ago.
Non-interest income increased 10% to $2.0 million in the fourth quarter
compared to $1.8 million in the prior year's fourth quarter. This increase
was largely due to the 19% increase in fee based transaction accounts income
and mortgage broker activity, which contributed $1.4 million to fourth quarter
revenue, compared to $1.1 million in the same quarter a year ago.
(more)
Riverview Bancorp, Inc.
May 4, 2006
Page 2
Fiscal 2006 non-interest expense increased 33% to $25.4 million compared to
$19.1 million for fiscal 2005, reflecting the branch network expansion. For
the fiscal fourth quarter, non-interest expense increased 40% to $6.9 million
compared to $4.9 million a year earlier. Salaries and employee benefits
increased approximately $3.8 million over last year primarily due to new and
acquired branch and lending personnel and the rising costs of healthcare
benefits. Net of intangible amortization, the efficiency ratio that measures
operating expenses, as proportion of revenue was 63.76% for the quarter,
compared to 64.02% in 2005's fourth fiscal quarter. For the fiscal year, the
efficiency ratio, net of intangible amortization and last year's impairment
charge improved to 60.79% compared to 61.63% in fiscal 2005.
Balance Sheet Growth
"Our loan portfolio has seen significant expansion in the past year while
maintaining exceptional loan quality. We anticipate continued high growth
throughout Southwest Washington and the greater Portland metropolitan area,
which should continue to fuel double digit growth in our loan portfolio in the
coming year," said Wysaske. Net loans at March 31, 2006, increased 45% to
$623 million compared to $429 million a year ago. Commercial real estate
loans now account for 59% of the total loan portfolio and permanent single
family loans represents just 5% of Riverview's loan portfolio.
Total assets increased 33% to $764 million at March 31, 2006, compared to $573
million a year ago. Total deposits grew 33% to $607 million compared to $457
million at March 31, 2005. Core deposits increased 30%, or $92.3 million;
from year ago levels, and now account for 66 % of total deposits.
Including the issuance of $16.7 million in stock associated with the American
Pacific Bank acquisition, shareholders' equity increased 32% to $91.7 million
compared to $69.5 million at the end of fiscal 2005. Book value per share was
$15.88 at March 31, 2006, compared to $14.35 a year earlier and tangible book
value per share was $11.23 at fiscal year-end compared to $12.24 a year ago.
Riverview completed the issuance of $7.0 million in trust preferred securities
in the third fiscal quarter 2006. The net proceeds will provide additional
capital for general corporate purposes, including current and future expansion
of the Bank. Under the terms of the transaction, the trust preferred
securities have a maturity of 30 years and are redeemable at par after five
years. The securities require quarterly interest payments (subject to certain
deferment options) and bear an interest rate tied to three-month LIBOR, plus
1.36%.
Credit Quality and Performance Measures
Credit quality remains pristine, as non-performing assets improved to just
0.05% of total assets at March 31, 2006, compared to a low 0.13% of total
assets at March 31, 2005. The allowance for loan losses including loan
commitments was $7.2 million, or 1.20% of net loans at fiscal year-end,
compared to $4.4 million or 1.07% of net loans a year ago. "With the strong
growth in the loan portfolio this year, we increased our provision for loan
losses to $1.5 million in fiscal 2006 from $410,000 in fiscal 2005."
Riverview's fiscal 2006 return on average assets was 1.36%, compared to 1.40%
in fiscal 2005, excluding the impairment charge and return on average equity
was 10.95% for the year, compared to 10.87% for fiscal 2005, excluding the
impairment charge.
Conference Call
Riverview Bancorp will host a conference call Friday, May 5, at 8:00 a.m. PDT,
to discuss fiscal year-end results. The conference call can be accessed live
by telephone at 303-262-2130. To listen to the call online go to
www.actioncast.acttel.com and use event ID 32958. An archived recording of
the call can be accessed by dialing 303-590-3000 access code 11057072# until
Friday, May 12, 2006 or via the Internet at www.actioncast.acttel.com and use
event ID 32958.
About the Company
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington just north of Portland, Oregon on the I-5 corridor. With assets
of $764 million, it is the parent company of the 82 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. There are 17 branches, including ten in fast growing Clark County,
three in the Portland metropolitan area and three lending centers. The Bank
offers true community banking services, focusing on providing the highest
quality service and financial products to commercial and retail customers.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to integrate the American Pacific acquisition and
efficiently manage expenses. Additional factors that could cause actual
results to differ materially are disclosed in Riverview Bancorp's recent
filings with the SEC, including but not limited to Annual Reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
(tables follow)
Riverview Bancorp
May 4, 2006
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
March 31, 2006 and 2005
MARCH 31, MARCH 31,
(In thousands, except share data) (Unaudited) 2006 2005
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $7,786 and $45,501) $ 31,346 $ 61,719
Loans held for sale 65 510
Investment securities available for sale, at fair value
(amortized cost of $24,139 and $22,993) 24,022 22,945
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $1,830 and $2,402) 1,805 2,343
Mortgage-backed securities available for sale, at fair value
(amortized cost of $8,436 and $11,756) 8,134 11,619
Loans receivable (net of allowance for loan losses of $7,221
and $4,395) 623,016 429,449
Real estate owned - 270
Prepaid expenses and other assets 2,210 1,538
Accrued interest receivable 3,058 2,151
Federal Home Loan Bank stock, at cost 7,350 6,143
Premises and equipment, net 19,127 8,391
Deferred income taxes, net 3,771 2,624
Mortgage servicing intangible, net 384 470
Goodwill 25,572 9,214
Core deposit intangible, net 895 578
Bank owned life insurance 13,092 12,607
--------- ---------
TOTAL ASSETS $ 763,847 $ 572,571
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 606,964 $ 456,878
Accrued expenses and other liabilities 11,521 5,858
Advance payments by borrowers for taxes and insurance 358 313
Federal Home Loan Bank advances 46,100 40,000
Junior subordinated debenture 7,217 -
--------- ---------
Total liabilities 672,160 503,049
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none - -
Common stock, $.01 par value; 50,000,000 authorized
2006 - 5,772,690 issued, 5,772,686 outstanding
2005 - 5,015,753 issued, 5,015,749 outstanding 57 50
Additional paid-in capital 57,316 41,112
Retained earnings 35,776 29,874
Unearned shares issued to employee stock ownership trust (1,186) (1,392)
Accumulated other comprehensive loss (276) (122)
--------- ---------
Total shareholders' equity 91,687 69,522
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 763,847 $ 572,571
========= =========
(more)
Riverview Bancorp
May 4, 2006
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF Income FOR
THE THREE AND TWELVE MONTHS ENDED Three Months Ended Twelve Months Ended
March 31, 2006 AND 2005 March 31, March 31,
(In thousands, except share data) (Unaudited) 2006 2005 2006 2005
------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 12,649 $ 7,258 $ 45,039 $ 27,764
Interest on investment securities-taxable 217 154 809 521
Interest on investment securities-non-taxable 42 43 170 174
Interest on mortgage-backed securities 119 152 530 634
Other interest and dividends 51 242 681 875
-------- ------- ------- --------
Total interest income 13,078 7,849 47,229 29,968
INTEREST EXPENSE:
Interest on deposits 3,563 1,639 12,383 5,380
Interest on borrowings 899 506 2,494 2,015
-------- ------- ------- --------
Total interest expense 4,462 2,145 14,877 7,395
-------- ------- ------- --------
Net interest income 8,616 5,704 32,352 22,573
Less provision for loan losses 200 150 1,500 410
-------- ------- ------- --------
Net interest income after
provision for loan losses 8,416 5,554 30,852 22,163
NON-INTEREST INCOME:
Fees and service charges 1,369 1,149 5,913 4,588
Asset management fees 397 305 1,481 1,120
Gain on sale of loans held for sale 77 104 361 513
Gain (loss) on sale/impairment of securities - 164 - (1,185)
Loan servicing income 23 2 91 47
Gain on sale of land and fixed assets 2 1 2 830
Gain on sale of credit card portfolio - - 311 -
Bank owned life insurance 124 86 485 486
Other 33 34 193 107
-------- ------- ------- --------
Total non-interest income 2,025 1,845 8,837 6,506
NON-INTEREST EXPENSE:
Salaries and employee benefits 4,015 2,744 14,536 10,773
Occupancy and depreciation 1,158 730 3,798 2,991
Data processing 341 251 1,414 991
Amortization of core deposit intangible 53 33 210 180
Advertising and marketing expense 156 128 853 766
FDIC insurance premium 19 14 70 58
State and local taxes 161 128 580 519
Telecommunications 116 75 395 288
Professional fees 328 447 1,328 842
Other 522 365 2,190 1,696
-------- ------- ------- --------
Total non-interest expense 6,869 4,915 25,374 19,104
-------- ------- ------- --------
INCOME BEFORE INCOME TAXES 3,572 2,484 14,315 9,565
PROVISION FOR INCOME TAXES 965 816 4,577 3,036
-------- ------- ------- --------
NET INCOME $ 2,607 $ 1,668 $ 9,738 $ 6,529
======== ======= ======= ========
Earnings per common share:
Basic $ 0.46 $ 0.34 $ 1.74 $ 1.36
Diluted 0.46 0.34 1.72 1.33
Weighted average number of shares outstanding:
Basic 5,640,189 4,839,523 5,602,240 4,816,745
Diluted 5,725,222 4,913,825 5,675,168 4,891,173
(more)
Riverview Bancorp
May 4, 2006
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for At or for
the year ended the year ended
March 31, March 31,
2006 2005
-------------- --------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $ 645,084 $ 479,512
Average interest-bearing liabilities 532,521 388,426
Non-performing assets 415 726
Non-performing loans 415 456
Allowance for loan losses 7,221 4,395
Average interest-earning assets to
average interest-bearing liabilities 121.14% 123.45%
Allowance for loan losses to non-
performing loans 1,740.00% 963.82%
Allowance for loan losses to net loans 1.15% 1.01%
Allowance for loan losses to net loans
and loan commitments 1.20% 1.07%
Non-performing loans to total net loans 0.07% 0.10%
Non-performing assets to total assets 0.05% 0.13%
Shareholders' equity to assets 12.00% 12.14%
Number of banking facilities 17 14
At nine
At year ended months ended At year ended
March 31, December 31, March 31,
LOAN DATA 2006 2005 2005
--------- ------------- ----------- ------------
Residential:
One-to-four-family $ 32,129 $ 31,985 $ 36,059
Multi-family 2,127 2,102 2,537
Construction:
One-to-four-family 81,167 75,058 43,633
Commercial real estate 46,135 36,622 10,982
Commercial 59,769 62,138 57,981
Consumer:
Secured 29,943 30,069 28,951
Unsecured 1,415 1,617 1,668
Land 49,174 49,990 28,889
Commercial real estate 328,378 317,103 223,144
-------- -------- ---------
630,237 606,684 433,844
Less:
Allowance for loan losses 7,221 7,050 4,395
-------- -------- ---------
Loans receivable, net $623,016 $599,634 $ 429,449
======== ======== =========
DEPOSIT DATA
------------
Now Accounts $ 62,941 $ 75,806 $ 65,667
High Yield Checking 66,516 60,412 50,562
Regular Savings 38,344 40,187 35,513
Money Market 137,451 125,668 76,331
Non-Interest Checking 94,592 91,514 79,499
Certificates of Deposit 207,120 198,621 149,306
-------- -------- ---------
Total Deposits $606,964 $592,208 $ 456,878
======== ======== =========
(more)
Riverview Bancorp
May 4, 2006
Page 6
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For the three months For the Twelve months
ended ended
March 31, March 31,
SELECTED OPERATING DATA 2006 2005 2006 2005
----------------------- ---- ---- ---- ----
Efficiency ratio (4) 64.55% 65.11% 61.60% 65.70%
Efficiency ratio net of
intangible amortization 63.76% 64.02% 60.79% 64.46%
Efficiency ratio net of
intangible amortization
and impairment charge 63.76% 64.02% 60.79% 61.63%
Coverage ratio (6) 125.43% 116.05% 127.50% 118.16%
Coverage ratio net of
intangible amortization 126.41% 116.84% 128.56% 119.28%
Return on average assets (1) 1.42% 1.23% 1.36% 1.24%
Return on average assets
excluding impairment charge 1.42% 1.23% 1.36% 1.40%
Return on average equity (1) 11.42% 9.65% 10.95% 9.56%
Return on average equity
excluding impairment charge 11.42% 9.65% 10.95% 10.87%
Average rate earned on
interest-earning assets 7.95% 6.39% 7.34% 6.28%
Average rate paid on
interest-bearing liabilities 3.26% 2.16% 2.79% 1.90%
Spread (7) 4.69% 4.23% 4.55% 4.38%
Net interest margin 5.24% 4.65% 5.03% 4.74%
At or At or
For the three months For the Twelve months
ended ended
March 31, March 31,
PER SHARE DATA 2006 2005 2006 2005
-------------- ---- ---- ---- ----
Basic earnings per share (2) $ 0.46 $ 0.34 $ 1.74 $ 1.36
Diluted earnings per share (3) 0.46 0.34 1.72 1.33
Book value per share (5) 15.88 14.35 15.88 14.35
Tangible book value per share (5) 11.23 12.24 11.23 12.24
Market price per share:
High for period 27.500 22.480 27.500 22.500
Low for the period 23.120 21.000 20.330 19.490
Close for period end 26.760 21.250 26.760 21.250
Cash dividends declared
per share 0.170 0.155 0.680 0.620
Average number of shares
outstanding:
Basic (2) 5,640,189 4,839,523 5,602,240 4,816,745
Diluted (3) 5,725,222 4,913,825 5,675,168 4,891,173
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income plus non-interest
income.
(5) Amounts calculated include ESOP shares not committed to be released.
(6) Net interest income divided by non-interest expense.
(7) Yield on interest-earning assets less cost of funds on interest bearing
liabilities.
# # #
Exhibit 99.11
News Release of Riverview Bancorp, Inc. dated July 25, 2006
Contacts: Pat Sheaffer or Ron Wysaske,
Riverview Bancorp 360-693-6650
RIVERVIEW BANCORP FIRST QUARTER PROFITS INCREASE 44% TO $2.6 MILLION
--------------------------------------------------------------------
Vancouver, WA - July 25, 2006 - Riverview Bancorp, Inc. (Nasdaq: RVSB) today
reported that an expanded net interest margin, coupled with excellent loan
growth, generated a 44% increase in net income for the first fiscal quarter of
2007 ended June 30, 2006. Net income for the first quarter increased to $2.6
million, or $0.46 per diluted share, compared to $1.8 million, or $0.33 per
diluted share, in the first quarter of fiscal 2006.
The management team of Riverview Bancorp will host a conference call on
Wednesday, July 26, at 8:00 a.m. PDT, to discuss first quarter results. The
conference call can be accessed live by telephone at 303-262-2130. To listen
to the call online go to www.actioncast.acttel.com and use event ID 34421.
"Over the past year we have continued to grow our balance sheet by attracting
core deposits in a competitive marketplace and building our loan portfolio to
reflect that of a commercial bank. The success of these initiatives, coupled
with the continuing benefits from our expansion into the Portland market by
acquiring American Pacific Bank, has helped generate double digit profit
growth," said Pat Sheaffer, Chairman and CEO. The acquisition was completed
on April 22, 2005, therefore the first quarter a year ago contains two months
of contribution from American Pacific.
First Quarter Financial Highlights (at or for periods ended June 30, 2006,
compared to June 30, 2005)
* Net income increased 44% to $2.6 million.
* Net interest income increased 27% to $9.0 million.
* Revenues increased 20% to $11.1 million.
* Cash dividend increased 12% to $0.19 per share.
* Net interest margin increased 53 basis points to 5.23% compared to 4.70%
a year ago.
* Efficiency ratio improved to 60.83%.
* Total assets increased 8% to $793 million.
* Non-performing assets improved to 0.15% of total assets, compared to
0.33% a year ago.
* Loans increased 17% to $659 million.
Operating Results
For first fiscal quarter 2007 net interest margin was 5.23%, compared to 5.24%
for the immediate prior quarter and improved from 4.70% for the first fiscal
quarter a year ago. "Although we saw strong loan growth for the first quarter,
our net interest margin remained stable," said Sheaffer. "We expect our
margin to remain steady in future quarters given the current short term
interest rate environment."
In the first quarter, revenues increased 20% to $11.1 million, compared to
$9.3 million in the first quarter a year ago. Net interest income before the
provision for loan loss increased 27% to $9.0 million in the first quarter of
fiscal 2007, compared to $7.1 million in the first quarter a year ago.
Non-interest income declined slightly to $2.1 million in the first quarter
compared to $2.2 million in the prior year's first quarter. Higher fees for
asset management partially offset lower fees for transaction accounts and the
gain from the sale of the credit card portfolio helped offset lower gains on
the sale of loans due to reduced mortgage broker activity.
Fiscal first quarter non-interest expense was $6.8 million, compared to $6.1
million for the same period a year earlier. "The majority of the increase in
operating costs is a result of the additional branch opened during the year, a
full quarter of expenses from our new Portland area branches, the expansion of
our lending team and the rising costs of employee benefits," said Ron Wysaske,
President and COO. Salaries and employee benefits increased 13% to $3.8
million from $3.4 million a year ago. The efficiency ratio, which measures
operating expenses as proportion of revenue, improved to 60.83% for the
quarter, compared to 65.65% in 2006's first fiscal quarter.
(more)
Riverview Bancorp, Inc. 1Q07 results
July 25, 2006
Page 2
Balance Sheet Growth
"Our lending team has done an excellent job of growing the loan portfolio and
adding to the loan pipeline while maintaining exceptional loan quality. For
the linked quarter, loans were up $35.9 million, or 23% annualized, as a
result of their efforts," said Wysaske. "We anticipate continued high growth
throughout Southwest Washington and the greater Portland metropolitan area,
which should continue to fuel double digit growth in our loan portfolio. In
fact, Marple's Pacific Northwest Letter stated in the June 21, 2006 issue
that, 'The economy of the Pacific Northwest in fact is booming growing at
the fastest rate since before the recession in 2001.' This puts us in an
enviable position." Net loans at June 30, 20006, increased 17% to $659
million compared to $561 million a year ago. Commercial real estate loans now
account for 59% of the total loan portfolio and permanent single family loans
represents just 5% of Riverview's loan portfolio.
Total assets increased 8% to $793 million at June 30, 2006, compared to $738
million a year ago. Total deposits grew 4% to $607 million, compared to $583
million at June 30, 2005. Core deposits, which increased 7% from year ago
levels, account for 67 % of total deposits. "As interest rates have
increased, we have seen a greater demand for higher-yielding checking," noted
Wysaske. "Non-interest checking balances also grew 22% to $97 million, or 16%
of total deposits, and money market accounts grew 6% to $134 million, or 22%
of total deposits."
Shareholders' equity increased 7% to $93.5 million, compared to $87.4 million
at the end of the first fiscal quarter a year ago. Book value per share was
$16.17 at June 30, 2006, compared to $15.06 a year earlier, and tangible book
value per share was $11.54 at quarter-end, compared to $10.25 at quarter-end a
year earlier.
Credit Quality and Performance Measures
Credit quality remains strong, with non-performing assets improving to just
0.15% of total assets at June 30, 2006, compared to 0.33% of total assets at
June 30, 2005. The allowance for loan losses including unfunded loan
commitments was $8.0 million, or 1.20% of net loans at quarter-end, compared
to $6.9 million, or 1.21% of net loans, a year ago.
Riverview's fiscal first quarter 2007 return on average assets improved to
1.36%, compared to 1.09% for fiscal first quarter 2006. Return on average
equity improved to 11.18% for the quarter, compared to 8.89% for the first
quarter a year ago.
About the Company
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington - just north of Portland, Oregon on the I-5 corridor. With assets
of $793 million, it is the parent company of the 83 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. There are 17 branches, including ten in fast growing Clark County,
three in the Portland metropolitan area and three lending centers. The Bank
offers true community banking services, focusing on providing the highest
quality service and financial products to commercial and retail customers.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to acquire shares according to internal repurchase
guidelines, regional economic conditions and the company's ability to
efficiently manage expenses. Additional factors that could cause actual
results to differ materially are disclosed in Riverview Bancorp's recent
filings with the SEC, including but not limited to Annual Reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
(tables follow)
Riverview Bancorp, Inc. 1Q07 results
July 25, 2006
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
June 30, 2006, March 31, 2006 and June 30, 2005
June 30, March 31, June 30,
(In thousands, except share data) (Unaudited) 2006 2006 2005
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $6,754,
$7,786 and $52,262) $ 26,671 $ 31,346 $ 74,485
Loans held for sale - 65 159
Investment securities available for sale, at fair value
(amortized cost of $23,005, $24,139 and $24,136) 22,847 24,022 24,148
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $1,603, $1,830 and $2,297) 1,580 1,805 2,260
Mortgage-backed securities available for sale, at fair value
(amortized cost of $8,011, $8,436 and $10,913) 7,666 8,134 10,828
Loans receivable (net of allowance for loan losses of $7,626
$7,221 and $6,526) 658,588 623,016 561,012
Prepaid expenses and other assets 2,164 2,210 2,166
Accrued interest receivable 3,526 3,058 2,664
Federal Home Loan Bank stock, at cost 7,350 7,350 7,350
Premises and equipment, net 19,125 19,127 9,339
Deferred income taxes, net 3,799 3,771 2,483
Mortgage servicing intangible, net 372 384 458
Goodwill 25,572 25,572 26,356
Core deposit intangible, net 845 895 1,055
Bank owned life insurance 13,220 13,092 12,726
---------- ---------- ----------
TOTAL ASSETS $ 793,325 $ 763,847 $ 737,489
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 607,389 $ 606,964 $ 582,830
Accrued expenses and other liabilities 9,062 8,768 8,259
Advance payments by borrowers for taxes and insurance 144 358 98
Federal Home Loan Bank advances 73,300 46,100 58,904
Junior subordinated debenture 7,217 7,217 -
Capital lease obligation 2,745 2,753 -
---------- ---------- ----------
Total liabilities 699,857 672,160 650,091
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000
authorized, issued and outstanding, none - - -
Common stock, $.01 par value; 50,000,000 authorized,
June 30, 2006 - 5,780,090 issued, 5,780,086 outstanding; 57 57 58
March 31, 2006 - 5,772,690 issued, 5,772,686 outstanding;
June 30, 2005 - 5,804,953 issued, 5,804,949 outstanding
Additional paid-in capital 57,529 57,316 57,991
Retained earnings 37,348 35,776 30,737
Unearned shares issued to employee stock ownership trust (1,134) (1,186) (1,340)
Accumulated other comprehensive loss (332) (276) (48)
---------- ---------- ----------
Total shareholders' equity 93,468 91,687 87,398
---------- ---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 793,325 $ 763,847 $ 737,489
========== ========== ==========
(more)
Riverview Bancorp, Inc. 1Q07 results
July 25, 2006
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Three Months Ended
Consolidated Statements of Income for the Three Months June 30,
Ended June 30, 2006 and 2005
(In thousands, except share data) (Unaudited) 2006 2005
------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 13,769 $ 9,597
Interest on investment securities-taxable 221 186
Interest on investment securities-non taxable 42 43
Interest on mortgage-backed securities 114 145
Other interest and dividends 52 254
-------- --------
Total interest income 14,198 10,225
-------- --------
INTEREST EXPENSE:
Interest on deposits 4,222 2,471
Interest on borrowings 963 656
-------- --------
Total interest expense 5,185 3,127
-------- --------
Net interest income 9,013 7,098
Less provision for loan losses 350 450
-------- --------
Net interest income after provision for loan losses 8,663 6,648
-------- --------
NON-INTEREST INCOME:
Fees and service charges 1,331 1,486
Asset management fees 436 364
Gain on sale of loans held for sale 72 126
Gain on sale of real estate owned - 21
Loan servicing income 45 27
Gain on sale of credit card portfolio 67 -
Bank owned life insurance income 128 120
Other 36 43
-------- --------
Total non-interest income 2,115 2,187
-------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits 3,835 3,399
Occupancy and depreciation 1,074 803
Data processing 335 365
Amortization of core deposit intangible 50 49
Advertising and marketing expense 302 231
FDIC insurance premium 24 15
State and local taxes 155 135
Telecommunications 112 63
Professional fees 178 363
Other 704 673
-------- --------
Total non-interest expense 6,769 6,096
-------- --------
INCOME BEFORE INCOME TAXES 4,009 2,739
PROVISION FOR INCOME TAXES 1,378 918
-------- --------
NET INCOME $ 2,631 $ 1,821
======== ========
Earnings per common share:
Basic $0.47 $0.33
Diluted $0.46 $0.33
Weighted average number of shares outstanding:
Basic 5,637,604 5,389,547
Diluted 5,725,909 5,457,270
(more)
Riverview Bancorp, Inc. 1Q07 results
July 25, 2006
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the
three months At or for the
months ended Year ended
June 30, March 31,
2006 2005 2006
---- ---- ----
(Dollars in thousands,
except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $692,283 $608,973 $645,084
Average interest-bearing liabilities 574,714 505,581 532,521
Net average earning assets 117,569 103,392 112,563
Non-performing assets 1,173 2,420 415
Non-performing loans 1,173 2,420 415
Allowance for loan losses 7,626 6,526 7,221
Allowance for loan losses and
unfunded loan commitments 8,002 6,855 7,583
Average interest-earning assets to
average interest-bearing liabilities 120.46% 120.45% 121.14%
Allowance for loan losses to
non-performing loans 650.13% 269.67% 1740.00%
Allowance for loan losses to net loans 1.14% 1.15% 1.15%
Allowance for loan losses and unfunded
loan commitments to net loans 1.20% 1.21% 1.20%
Non-performing loans to total net loans 0.18% 0.43% 0.07%
Non-performing assets to total assets 0.15% 0.33% 0.05%
Shareholders' equity to assets 11.78% 11.85% 12.00%
Number of branch banking facilities 17 16 17
At three months At the year
ended ended
June 30, March 31,
LOAN DATA 2006 2005 2006
--------- ---- ---- ----
Residential:
One-to-four family $ 32,668 $ 34,324 $ 32,553
Multi-family 3,226 2,037 2,157
Construction:
One-to-four family 87,040 48,932 81,572
Commercial real estate 50,387 29,390 47,079
Commercial 66,474 67,239 59,834
Consumer:
Secured 30,961 29,040 29,781
Unsecured 926 4,811 1,415
Land 56,705 36,924 49,558
Commercial real estate 342,174 318,631 330,705
-------- -------- --------
670,561 571,328 634,654
Less:
Deferred loan fees 4,347 3,790 4,352
Allowance for loan losses 7,626 6,526 7,221
-------- -------- --------
Loans receivable, net $658,588 $561,012 $623,081
======== ======== ========
DEPOSIT DATA
------------
Now Accounts $ 62,631 $ 88,368 $ 62,941
High Yield Checking 81,489 52,380 66,516
Regular Savings 34,871 37,613 38,344
Money Market 134,010 126,948 137,451
Non-Interest Checking 96,636 79,117 94,592
Certificates of Deposit 197,752 198,404 207,120
-------- -------- --------
Total Deposits $607,389 $582,830 $606,964
======== ======== ========
(more)
Riverview Bancorp, Inc. 1Q07 results
July 25, 2006
Page 6
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the
three months At or for the
months ended Year ended
June 30, March 31,
SELECTED OPERATING DATA 2006 2005 2006
----------------------- ---- ---- ----
(Dollars in thousands,
except share data)
Efficiency ratio (4) 60.83% 65.65% 61.60%
Efficiency ratio net of intangible
amortization 60.18% 64.77% 60.79%
Coverage ratio (6) 133.15% 116.44% 127.50%
Coverage ratio net of intangible
amortization 134.14% 117.38% 128.56%
Return on average assets (1) 1.36% 1.09% 1.36%
Return on average equity (1) 11.18% 8.89% 10.95%
Average rate earned on interest-earned
assets 8.24% 6.76% 7.34%
Average rate paid on interest-bearing
liabilities 3.62% 2.48% 2.79%
Spread (7) 4.62% 4.28% 4.55%
Net interest margin 5.23% 4.70% 5.03%
PER SHARE DATA
--------------
Basic earnings per share (2) $ 0.47 $ 0.34 $ 1.74
Diluted earnings per share (3) 0.46 0.33 1.72
Book value per share (5) 16.17 15.06 15.88
Tangible book value per share (5) 11.54 10.25 11.23
Market price per share:
High for the period 27.05 21.80 27.50
Low for the period 24.27 20.33 20.33
Close for period end 26.20 21.35 26.76
Cash dividends declared per share 0.19 0.17 0.68
Average number of shares outstanding:
Basic (2) 5,637,604 5,389,547 5,602,240
Diluted (3) 5,725,909 5,457,270 5,675,168
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income and non-interest
income.
(5) Amounts calculated include ESOP shares not committed to be released.
(6) Net interest income divided by non-interest expense.
(7) Yield on interest-earning assets less cost of funds on interest bearing
liabilities.
# # #
Exhibit 99.12
News Release of Riverview Bancorp, Inc. dated October 24, 2006
Contacts: Pat Sheaffer or Ron Wysaske,
Riverview Bancorp 360-693-6650
RIVERVIEW BANCORP SECOND QUARTER PROFITS INCREASE 16% TO $3.0 MILLION
---------------------------------------------------------------------
Vancouver, WA - October 24, 2006 - Riverview Bancorp, Inc. (Nasdaq: RVSB)
today reported that excellent loan growth and a continued focus on operating
efficiencies contributed to record profits for the second fiscal quarter of
2007 ended September 30, 2006. Net income for the second quarter increased
16% to $3.0 million, or $0.26 per diluted share, compared to $2.6 million, or
$0.22 per diluted share, in the second quarter a year ago. For the first six
months of fiscal 2007, net income increased 28% to $5.6 million, or $0.49 per
diluted share, compared to $4.4 million, or $0.39 per diluted share, in the
first half a year ago. All per share data has been adjusted to reflect the
August 2006 2-for-1 stock split.
"A growing balance sheet, growing revenues and improved efficiencies
contributed to our record performance in the second quarter," said Pat
Sheaffer, Chairman and CEO. "We are achieving our profit goals by delivering
a high level of service to our customers and maintaining solid asset quality.
The exceptional growth throughout the Southwest Washington and greater
Portland metropolitan area, which we see continuing, is fueling our balance
sheet growth and has helped generate double-digit growth in profits for the
quarter and for the first half of our fiscal year.
"A good example of the market area growth we are seeing is that SEH America is
apparently planning to invest $350 million in Vancouver to launch production
of a new facility to build 12-inch silicon wafers for the semiconductor
industry," Sheaffer added.
Second Quarter Financial Highlights (at or for periods ended September 30,
2006, compared to September 30, 2005)
* Net income increased 16% to $3.0 million.
* Net interest income increased 13% to $9.1 million.
* Net interest margin increased 4 basis points to 4.97% compared to 4.93%
a year ago.
* Efficiency ratio improved to 54.9%.
* Total assets increased 14% to $844 million.
* Loans increased 19% to $691 million.
* 2-for-1 stock split in August 2006.
* Cash dividend increased 5% to $0.10 per split adjusted share.
Operating Results
Revenues (net interest income before the provision for loan losses plus
non-interest income) increased 8% to $11.4 million for the quarter compared to
$10.6 million in the same quarter a year ago. Net interest income before the
provision for loan loss increased 13% to $9.1 million in the second quarter of
fiscal 2007 compared to $8.1 million in the second quarter a year ago.
Non-interest income was $2.3 million in the second fiscal quarter of 2007
compared to $2.5 million in the prior year's second quarter. This decrease
was largely due to the sale of the credit card portfolio inherited with the
acquisition of American Pacific Bank. The sale of the credit card portfolio,
which took place in the second fiscal quarter of 2006, led to a pre-tax gain
on sale of $304,000. Asset management fees from our trust company, Riverview
Asset Management Corp., increased to $455,000 in the second quarter of fiscal
2007 compared to $342,000 in the second quarter a year ago.
For the first half of fiscal 2007 revenues increased 14% to $22.5 million
compared to $19.9 million in the six-month period a year ago. Year-to-date,
net interest income before the provision for loan losses increased 19% to
$18.1 million compared to $15.2 million in the same period a year ago.
Non-interest income was $4.4 million in the first six months of fiscal 2007
compared to $4.7 million in the first six months of fiscal 2006.
The quarterly net interest margin increased 4 basis points to 4.97% from 4.93%
in the second fiscal quarter a year ago, but contracted from 5.23% in the
prior linked quarter. For the first half of fiscal 2007, net interest margin
improved to 5.10% compared to 4.82% for the same period a year ago. "Although
our net interest margin improved from the same periods
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Riverview Bancorp, Inc. Second Quarter Earnings
October 24, 2006
Page 2
in the prior year, we had a contraction in our margin from the previous
quarter as we experienced higher costs for funding," said Ron Wysaske,
President and COO.
"We reduced our expense ratio 36 basis points to 3.09% of average assets
compared to 3.45% of average assets in the second fiscal quarter a year ago.
Our non-interest expense remained unchanged for the quarter and slightly
increased in the first six months of the fiscal year," said Wysaske.
Non-interest expense was unchanged at $6.3 million in the second quarter
compared to the second quarter a year ago. For the first half of the fiscal
year, non-interest expense was $13.0 million compared to $12.4 million in the
like period a year ago. The efficiency ratio improved 430 basis points to
54.9% for the quarter, compared to 59.2% in the same quarter a year ago. For
the first half of the fiscal year, the efficiency ratio improved 440 basis
points to 57.8%, compared to 62.2% in the like period a year ago.
Balance Sheet Growth
Net loans increased 19% to $691 million at September 30, 2006, compared to
$579 million a year ago. Commercial real estate loans account for 59% and
permanent single family loans represent just 5% of the total loan portfolio,
respectively. "We continue to find success growing the loan portfolio while
maintaining exceptional credit quality and a well diversified loan portfolio,"
said Wysaske. "We anticipate continued high growth throughout Southwest
Washington and the greater Portland metropolitan area, which should continue
to fuel growth in our loan portfolio for the rest of the year."
Total assets increased 14% to a record $844 million at September 30, 2006,
compared to $739 million a year ago. Total deposits grew 7% to $640 million,
compared to $600 million at September 30, 2005. "Core deposits (exclude
certificates of deposit) account for 66% of total deposits. We continue to see
growth in the total balance of our interest checking accounts," noted Wysaske.
Non-interest checking balances represent 16% of total deposits, compared to
17% of total deposits a year ago, and interest checking balances represent 24%
of total deposits, compared to 22% of total deposits a year ago.
Shareholders' equity increased 7% to $95.8 million, compared to $89.1 million
at the end of the second fiscal quarter a year ago. Book value per share
improved to $8.28 at September 30, 2006, compared to $7.67 a year earlier, and
tangible book value per share was $5.97 at quarter-end, compared to $5.28 at
quarter-end a year earlier.
Credit Quality and Performance Measures
Credit quality remained strong, with non-performing assets at 0.20% of total
assets at September 30, 2006, compared to 0.14% of total assets at September
30, 2005. The allowance for loan losses, including unfunded loan commitments
of $385,000, was $8.6 million, or 1.24% of net loans at quarter-end, compared
to $7.2 million, or 1.22% of net loans, a year ago.
Riverview's fiscal second quarter 2007 return on average assets improved to
1.45%, compared to 1.40% for fiscal second quarter 2006. Return on average
equity improved to 12.22% for the quarter, compared to 11.36% for the same
period last year.
Conference Call
The management team of Riverview Bancorp will host a conference call on
Wednesday, October 25, at 8:00 a.m. PDT, to discuss second quarter results.
The conference call can be accessed live by telephone at 303-262-2130. To
listen to the call online go to www.actioncast.acttel.com and use event ID
35357.
About the Company
Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver,
Washington - just north of Portland, Oregon on the I-5 corridor. With assets
of $844 million, it is the parent company of the 83 year-old Riverview
Community Bank, as well as Riverview Mortgage and Riverview Asset Management
Corp. There are 17 branches, including ten in fast growing Clark County,
three in the Portland metropolitan area and three lending centers. The Bank
offers true community banking services, focusing on providing the highest
quality service and financial products to commercial and retail customers.
(tables follow)
Riverview Bancorp, Inc. Second Quarter Earnings
October 24, 2006
Page 3
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets
September 30, 2006, March 31, 2006 and September 30, 2005
September 30, March 31, September 30,
(In thousands, except share data) (Unaudited) 2006 2006 2005
------------------------------------------------------------------------------------------------------------
ASSETS
Cash (including interest-earning accounts of $15,198,
$7,786 and $33,110) $ 43,453 $ 31,346 $ 56,486
Loans held for sale 197 65 -
Investment securities available for sale, at fair value
(amortized cost of $23,017, $24,139 and $24,147) 22,963 24,022 24,143
Mortgage-backed securities held to maturity, at amortized
cost (fair value of $1,495, $1,830 and $2,223) 1,477 1,805 2,202
Mortgage-backed securities available for sale, at fair value
(amortized cost of $7,608, $8,436 and $10,047) 7,404 8,134 9,898
Loans receivable (net of allowance for loan losses of $8,263
$7,221 and $6,752) 690,650 623,016 579,443
Prepaid expenses and other assets 2,021 2,210 1,824
Accrued interest receivable 4,117 3,058 2,807
Federal Home Loan Bank stock, at cost 7,350 7,350 7,350
Premises and equipment, net 21,011 19,127 11,862
Deferred income taxes, net 3,716 3,771 2,377
Mortgage servicing intangible, net 368 384 414
Goodwill 25,572 25,572 26,354
Core deposit intangible, net 799 895 1,001
Bank owned life insurance 13,349 13,092 12,848
----------- ----------- -----------
TOTAL ASSETS $ 844,447 $ 763,847 $ 739,009
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposit accounts $ 640,404 $ 606,964 $ 599,680
Accrued expenses and other liabilities 7,921 8,768 8,920
Advance payments by borrowers for taxes and insurance 377 358 325
Federal Home Loan Bank advances 90,000 46,100 40,938
Junior subordinated debenture 7,217 7,217 -
Capital Lease Obligation 2,737 2,753 -
Total liabilities 748,656 672,160 649,863
SHAREHOLDERS' EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none - - -
Common stock, $.01 par value; 50,000,000 authorized,
September 30, 2006 - 11,575,480 issued, 11,575,472
outstanding; 116 57 58
March 31, 2006 - 11,545,380 issued, 11,545,372 outstanding
September 30, 2005 - 11,623,880 issued, 11,623,872 outstanding
Additional paid-in capital 57,794 57,316 58,139
Retained earnings 39,134 35,776 32,339
Unearned shares issued to employee stock ownership trust (1,083) (1,186) (1,289)
Accumulated other comprehensive loss (170) (276) (101)
----------- ----------- -----------
Total shareholders' equity 95,791 91,687 89,146
----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 844,447 $ 763,847 $ 739,009
=========== =========== ===========
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Riverview Bancorp, Inc. Second Quarter Earnings
October 24, 2006
Page 4
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income for the Three and Six Three Months Ended Six Months Ended
Months Ended September 30, 2006 and 2005 September 30, September 30,
(In thousands, except share data) (Unaudited) 2006 2005 2006 2005
------------------------------------------------------------------------------------------------------------
INTEREST INCOME:
Interest and fees on loans receivable $ 14,834 $ 11,010 $ 28,603 $ 20,607
Interest on investment securities-taxable 221 195 442 381
Interest on investment securities-non taxable 42 43 84 86
Interest on mortgage-backed securities 109 138 223 283
Other interest and dividends 96 250 148 504
-------- -------- -------- --------
Total interest income 15,302 11,636 29,500 21,861
-------- -------- -------- --------
INTEREST EXPENSE:
Interest on deposits 4,908 3,059 9,130 5,530
Interest on borrowings 1,267 482 2,230 1,138
-------- -------- -------- --------
Total interest expense 6,175 3,541 11,360 6,668
-------- -------- -------- --------
Net interest income 9,127 8,095 18,140 15,193
Less provision for loan losses 600 450 950 900
-------- -------- -------- --------
Net interest income after provision for loan losses 8,527 7,645 17,190 14,293
-------- -------- -------- --------
NON-INTEREST INCOME:
Fees and service charges 1,449 1,598 2,780 3,084
Asset management fees 455 342 891 706
Gain on sale of loans held for sale 111 77 183 203
Gain on sale of real estate owned - - - 21
Loan servicing income (expense) 36 (8) 81 19
Gain on sale of credit card portfolio 66 304 133 304
Bank owned life insurance income 129 122 257 242
Other 45 47 81 90
-------- -------- -------- --------
Total non-interest income 2,291 2,482 4,406 4,669
-------- -------- -------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits 3,532 3,441 7,367 6,840
Occupancy and depreciation 1,135 883 2,209 1,686
Data processing 222 373 557 738
Amortization of core deposit intangible 46 55 96 104
Advertising and marketing expense 356 306 658 537
FDIC insurance premium 13 17 37 32
State and local taxes 133 148 288 283
Telecommunications 101 99 213 162
Professional fees 198 388 376 752
Other 536 551 1,240 1,223
-------- -------- -------- --------
Total non-interest expense 6,272 6,261 13,041 12,357
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES 4,546 3,866 8,555 6,605
PROVISION FOR INCOME TAXES 1,573 1,304 2,951 2,222
-------- -------- -------- --------
NET INCOME $ 2,973 $ 2,562 $ 5,604 $ 4,383
======== ======== ======== ========
Earnings per common share:
Basic $0.26 $0.23 $0.50 $0.39
Diluted $0.26 $0.22 $0.49 $0.39
Weighted average number of shares outstanding:
Basic 11,302,927 11,309,322 11,289,143 11,107,745
Diluted 11,473,750 11,443,810 11,463,125 11,242,686
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Riverview Bancorp, Inc. Second Quarter Earnings
October 24, 2006
Page 5
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the six months At or for the Year
ended September 30, ended March 31,
2006 2005 2006
------- ------- --------------
(Dollars in thousands, except share data)
FINANCIAL CONDITION DATA
------------------------
Average interest earning assets $711,372 $631,307 $ 645,084
Average interest-bearing liabilities 592,679 522,114 532,521
Net average earning assets 118,693 109,193 112,563
Non-performing assets 1,704 1,043 415
Non-performing loans 1,704 1,043 415
Allowance for loan losses 8,263 6,752 7,221
Allowance for loan losses and unfunded loan
commitments 8,648 7,160 7,583
Average interest-earning assets to average interest-
bearing liabilities 120.03% 120.91% 121.14%
Allowance for loan losses to non-performing loans 484.92% 647.36% 1740.00%
Allowance for loan losses to net loans 1.18% 1.15% 1.15%
Allowance for loan losses and
unfunded loan commitments to net loans 1.24% 1.22% 1.20%
Non-performing loans to total net loans 0.24% 0.18% 0.07%
Non-performing assets to total assets 0.20% 0.14% 0.05%
Shareholders' equity to assets 11.34% 12.06% 12.00%
Number of banking facilities 18 17 18
At three months ended At three months At the year
ended September 30, ended June 30, ended March 31,
LOAN DATA 2006 2005 2006 2006
---------- ------- ------- ------- ------------
Residential:
One-to-four family $34,552 $32,251 $32,668 $ 32,488
Multi-family 3,219 2,019 3,226 2,157
Construction:
One-to-four family 91,051 44,618 87,040 81,572
Commercial real estate 51,510 54,224 50,387 47,079
Commercial 66,008 69,401 66,474 59,834
Consumer:
Secured 31,484 28,730 30,961 29,781
Unsecured 1,141 1,688 926 1,415
Land 62,989 42,532 56,705 49,558
Commercial real estate 361,244 314,776 342,174 330,705
------- -------- -------- -----------
703,198 590,239 670,561 634,589
Less:
Deferred loan fees 4,285 4,044 4,347 4,352
Allowance for loan losses 8,263 6,752 7,626 7,221
------- -------- -------- -----------
Loans receivable, net $690,650 $579,443 $658,588 $ 623,016
======= ======== ======== ===========
DEPOSIT DATA
-------------
Interest Checking $153,631 $130,366 $144,120 $ 129,457
Regular Savings 32,896 39,732 34,871 38,344
Money Market Deposit Accounts 145,612 128,926 134,010 137,451
Non-Interest Checking 101,852 103,767 96,636 94,592
Certificates of Deposit 206,413 196,889 197,752 207,120
------- -------- -------- -----------
Total Deposits $640,404 $599,680 $607,389 $ 606,964
======= ======== ======== ===========
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Riverview Bancorp, Inc. Second Quarter Earnings
October 24, 2006
Page 6
RIVERVIEW BANCORP, INC. AND SUBSIDIARY
FINANCIAL HIGHLIGHTS
(Unaudited)
At or for the three At or for the six
months ended months ended
September 30, September 30,
SELECTED OPERATING DATA 2006 2005 2006 2005
----------------------- ---- ---- ---- ----
(Dollars in thousands, except share data)
Efficiency ratio (4) 54.93% 59.19% 57.84% 62.21%
Efficiency ratio net of intangible amortization 54.31% 58.28% 57.21% 61.32%
Coverage ratio (6) 145.52% 129.29% 139.10% 122.95%
Coverage ratio net of intangible amortization 146.59% 130.44% 140.13% 123.99%
Return on average assets (1) 1.45% 1.40% 1.41% 1.25%
Return on average equity (1) 12.22% 11.36% 11.70% 10.19%
Average rate earned on interest-earned assets 8.32% 7.08% 8.28% 6.92%
Average rate paid on interest-bearing liabilities 4.01% 2.61% 3.82% 2.55%
Spread (7) 4.31% 4.47% 4.46% 4.37%
Net interest margin 4.97% 4.93% 5.10% 4.82%
PER SHARE DATA
Basic earnings per share (2) $ 0.26 $ 0.23 $ 0.50 $ 0.39
Diluted earnings per share (3) 0.26 0.22 0.49 0.39
Book value per share (5) 8.28 7.67 8.28 7.67
Tangible book value per share (5) 5.97 5.28 5.97 5.28
Market price per share:
High for the period $13.650 $11.050 $13.650 $11.050
Low for the period 12.580 10.375 12.140 10.165
Close for period end 13.500 10.405 13.500 10.405
Cash dividends declared per share 0.100 0.085 0.195 0.170
Average number of shares outstanding:
Basic (2) 11,302,927 11,309,322 11,289,143 11,107,745
Diluted (3) 11,473,750 11,443,810 11,463,125 11,242,686
(1) Amounts are annualized.
(2) Amounts calculated exclude ESOP shares not committed to be released.
(3) Amounts calculated exclude ESOP shares not committed to be released and
include common stock equivalents.
(4) Non-interest expense divided by net interest income and non-interest
income.
(5) Amounts calculated include ESOP shares not committed to be released.
(6) Net interest income divided by non-interest expense.
(7) Yield on interest-earning assets less cost of funds on interest bearing
liabilities.
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that might cause actual results to differ
materially from stated objectives. These factors include but are not limited
to: RVSB's ability to acquire shares according to internal repurchase
guidelines, regional economic conditions and the company's ability to
efficiently manage expenses. Additional factors that could cause actual
results to differ materially are disclosed in Riverview Bancorp's recent
filings with the SEC, including but not limited to Annual Reports on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.