Riverview Bancorp Earns $6.4 Million in Second Fiscal Quarter of 2022; Highlighted by Robust Loan Growth and Strong Loan Pipeline – Form 8-K

Riverview Bancorp Earns $6.4 Million in Second Fiscal Quarter of 2022;

Highlighted by Robust Loan Growth and Strong Loan Pipeline

Vancouver, WA – October 28, 2021 – Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) todayreported earnings of $6.4 million, or $0.29 per diluted share, in the second fiscal quarter ended September 30, 2021 compared to $5.8 million, or $0.26 per diluted share, in the preceding quarter and $2.5 million, or $0.11 per diluted share, in the second fiscal quarter a year ago.

In the first six months of fiscal 2022, net income increased to $12.2 million, or $0.55 per diluted share, compared to $3.0 million, or $0.14 per diluted share, in the first six months of fiscal 2021.

“We delivered strong second fiscal quarter operating results, driven by an increase in net interest income, and higher operating income, which resulted in a return on average assets of 1.52% and a return on average equity of 15.96% for the quarter,” stated Kevin Lycklama, president and chief executive officer. “We had exceptional net loan growth during the quarter and our loan pipeline remains strong. Core deposits continue to reach record levels, which has supported the new loan growth. As we continue to move through these latter stages of the pandemic, we are encouraged with the increased business activity in Southwest Washington and Oregon, and the increased loan growth opportunities ahead.”

Second Quarter Highlights (at or for the period ended September 30, 2021)

Net income increased to $6.4 million, or $0.29 per diluted share, compared to $5.8 million, or $0.26 per diluted share in the preceding quarter and $2.5 million, or $0.11 per diluted share in the second quarter a year ago.

Pre-tax, pre-provision for loan losses income (non-GAAP) was $7.3 million for the quarter compared to $5.7 million in the preceding quarter and $5.0 million for the quarter ended September 30, 2020.

Net interest income increased to $12.4 million compared to $11.3 million in the preceding quarter and $11.1 million in the second fiscal quarter a year ago.

Net interest margin (“NIM”) was 3.12%.

Riverview recorded a recapture of loan losses of $1.1 million during the quarter.

The allowance for loan losses was $16.5 million, or 1.80% of total loans. The allowance for loan losses excluding SBA purchased and SBA PPP loans (non-GAAP) was 1.97% of total loans.

There were no loan modifications as of September 30, 2021.

Total loans increased $25.1 million, or 11.2% annualized, during the quarter. The net increase consisted of a decrease of $22.8 million in SBA PPP loans and an increase of $47.9 million in non-PPP loans.

Total deposits increased $93.7 million, or 26.3% annualized, during the quarter to $1.51 billion.

Non-performing assets were 0.03% of total assets.

Total risk-based capital ratio was 17.42% and Tier 1 leverage ratio was 9.08%.

Increased its quarterly cash dividend to $0.055 per share, generating a current dividend yield of 3.05% based on the share price at close of market on October 27, 2021.

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 2

Income Statement Review

Riverview’s net interest income increased to $12.4 million in the current quarter compared to $11.3 million in the preceding quarter and $11.1 million in the second fiscal quarter a year ago. Interest income increased compared to prior quarters due to strong loan growth, an increase in net fees on loan prepayments and an increase in investment securities during the quarter. In the first six months of fiscal 2022, net interest income was $23.7 million compared to $22.2 million in the first six months of fiscal 2021.

During the second quarter of fiscal 2022, $928,000 of interest and net fee income was earned through PPP loan forgiveness and normal amortization. This compared to $892,000 of interest and net fee income on PPP loans during the preceding quarter and $691,000 in the second quarter of the prior year.

Riverview’s NIM was 3.12% for the second quarter of fiscal 2022, a five basis-point increase compared to 3.07% in the preceding quarter and a 21 basis-point decrease compared to 3.33% in the second quarter of fiscal 2021. “The NIM expansion during the quarter compared to the prior quarter was primarily due to new loan originations replacing SBA PPP loan payoffs, higher levels of loan fee amortization on PPP loans and an increase in net fees on loan prepayments, which were partially offset by excess liquidity on the balance sheet due to record deposit growth,” said David Lam, executive vice president and chief financial officer. In the first six months of fiscal 2022, the net interest margin was 3.09% compared to 3.48% in the same period a year earlier.

During the second fiscal quarter of 2022, net fees on loan prepayments, which included purchased SBA loan premiums, increased net interest income by $485,000 and increased the NIM by 13 basis points. This compared to $43,000 in net fees on loan prepayments adding two basis points to NIM in the preceding quarter. The interest accretion on purchased loans totaled $89,000 and resulted in a three basis point increase in the NIM during the second quarter, compared to $71,000 and a two basis point increase in the NIM during the preceding quarter. For the second fiscal quarter of 2022, SBA PPP loan interest and fees added 15 basis points to the NIM compared to 8 basis points for the preceding quarter. The increase in the current quarter was due primarily to the recognition of PPP loan fees as a part of the loan forgiveness process. The average overnight cash balances increased to $345.8 million during the quarter ended September 30, 2021 compared to $272.3 million in the preceding quarter and $204.4 million for the second fiscal quarter a year ago, due to the growth in deposits. Without the increase in overnight cash balances, NIM would have been 79 basis points higher in the current quarter, 69 basis points higher in the prior quarter and 66 basis points higher in the second quarter a year ago. These items resulted in a core-NIM (non-GAAP) of 3.60% in the current quarter compared to 3.64% in the preceding quarter and 4.04% in the second fiscal quarter a year ago. The following table represents the components of (non-GAAP) Core NIM:

Three Months Ended

September 30, 2021

June 30, 2021

September 30, 2020

Net interest margin (GAAP)

3.12

%

3.07

%

3.33

%

Net fees on loan prepayments

(0.13

)

(0.02

)

0.01

Accretion on purchased MBank loans

(0.03

)

(0.02

)

(0.04

)

SBA PPP loans

(0.15

)

(0.08

)

0.08

Excess FRB liquidity

0.79

0.69

0.66

Core net interest margin (non-GAAP)

3.60

%

3.64

%

4.04

%

During the second fiscal quarter of 2022, Riverview continued the deployment of excess cash into its investment portfolio. Investment securities totaled $350.3 million at September 30, 2021 compared to $308.1 million at June 30, 2021. During the quarter, the Company purchased $54.8 million in new securities with a weighted average yield of 1.37%. Investment purchases were comprised primarily of agency securities, MBS backed by government agencies and municipal securities.

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 3

Average securities balances for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020 were $326.1 million, $279.0 million and $129.1 million, respectively. The weighted average yields on securities balances for those same periods were 1.47%, 1.53% and 1.62%, respectively.

Average PPP loans were $46.2 million in the second quarter compared to $80.3 million in the preceding quarter and $110.6 million in the second quarter a year ago. During the quarter, the Company recorded $118,000 in interest income on PPP loans and $810,000 in loan fee amortization into income. This compared to $203,000 in interest income on PPP loans and $689,000 in loan fee amortization during the preceding quarter and $283,000 in interest income on PPP loans and $408,000 in loan fee amortization during the second fiscal quarter a year ago.

Loan yields increased 44 basis points during the quarter to 5.11% compared to 4.67% in the preceding quarter due primarily to an increase in net fees on loan prepayments along with low-rate PPP loans being removed from the loan portfolio at the time of forgiveness or payoff. Loan yields were 4.58% in the second fiscal quarter a year ago. Loan yields excluding PPP loans were 4.95% for the quarter compared to 4.69% in the preceding quarter and 4.84% in the year-ago quarter.

Riverview’s cost of deposits decreased to 0.11% during the second fiscal quarter compared to 0.13% in the preceding quarter and 0.22% in the second fiscal quarter a year ago. The sequential decrease in deposit costs during the quarter reflects the continued low interest rate environment and are expected to decrease further as certificates of deposit reprice at maturity. Certificate of deposit maturities over the next quarter and twelve months are $30.4 million and $80.7 million, respectively, with a weighted average interest rate of 1.09% and 0.84%.

Non-interest income was $3.1 million during the quarter compared to $3.6 million in the preceding quarter and $2.8 million in the second fiscal quarter of 2021. Non-interest income decreased during the quarter as a result of a $479,000 BOLI death benefit recorded in the preceding quarter that was not present during the current quarter. Interchange and merchant bankcard fee income during the quarter remained strong due to the continued increase in economic activity in Oregon and Washington and brokered loan fee income also remained strong due to the increased activity in the mortgage and refinance market. In the first six months of fiscal 2022, non-interest income was $6.7 million compared to $5.4 million in the same period a year ago.

Asset management fees were $928,000 during the second fiscal quarter compared to $976,000 in the preceding quarter and $883,000 in the second fiscal quarter a year ago. The decrease in the sequential quarter was due to the seasonal tax preparation fees collected during the prior quarter. Riverview Trust Company’s assets under management remained at $1.3 billion at September 30, 2021 and June 30, 2021.

Non-interest expense was $8.2 million during the quarter compared to $9.1 million in the preceding quarter and $8.8 million in the second fiscal quarter a year ago. The decrease in the sequential quarter was due to Riverview recognizing a $1.0 million gain on sale of a former branch property that closed in May 2021. Excluding that gain on sale, non-interest expense increased $50,000 from the prior linked quarter. Riverview continues to manage its non-interest expenses in the current economic environment and look for opportunities to improve operating efficiencies. Year-to-date, non-interest expense was $17.3 million compared to $17.5 million in the first six months of fiscal 2021.

Return on average assets was 1.52% in the second quarter of fiscal 2022 compared to 1.46% in the preceding quarter. Return on average equity and return on average tangible equity (non-GAAP) was 15.96% and 19.31%, respectively, compared to 14.89% and 18.13%, respectively, for the prior quarter. The efficiency ratio improved to 53.0% for the second fiscal quarter compared to 61.4% in the preceding quarter and 63.7% in the second fiscal quarter a year ago.

Riverview’s effective tax rate for the second quarter of fiscal 2022 was 23.1% compared to 21.5% for the preceding quarter and 21.7% for the year ago quarter.

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 4

Balance Sheet Review

Riverview’s total loans were $914.5 million at September 30, 2021 compared to $889.5 million three months earlier and $975.2 million a year ago. The decrease in loan balances compared to the year ago quarter was primarily driven by forgiveness of SBA PPP loans. SBA PPP loans, net of fees, totaled $32.7 million at September 30, 2021 compared to $55.5 million at June 30, 2021 and $110.8 million at September 30, 2020. The Company also completed the purchase of a $21.7 million pool of mortgage loans to partially replace mortgage loans within its portfolio that paid down during the last year. Organic loan growth was strong during the quarter but continues to be impacted by loan payoffs as well as strong competition for high-quality loans in our markets.

Riverview’s loan pipeline totaled $104.5 million at September 30, 2021, compared to $84.2 million at the end of the prior quarter. The Company has placed an internal focus on loan originations and increased business development activities over the last few quarters with the improvement in economic activity in its primary markets of Oregon and Washington. “Based on our economic forecasts and outlook for our markets, we remain optimistic for continued loan growth for the remainder of our fiscal year as we deploy our excess liquidity into higher yielding assets,” said Lycklama.

Undisbursed construction loans totaled $28.2 million at September 30, 2021, compared to $14.0 million at June 30, 2021, with the majority of the undisbursed construction loans expected to fund over the next several quarters. Revolving commercial business loan commitments totaled $66.0 million at September 30, 2021 compared to $58.0 million three months earlier. Utilization on these loans totaled 8.6% at September 30, 2021 compared to 6.0% at June 30, 2021. The weighted average rate on loan originations during the quarter was 3.82% compared to 3.98% in the preceding quarter and 4.12% in the second quarter a year ago.

Total deposits increased $93.7 million, or 6.6%, to $1.51 billion at September 30, 2021 compared to the preceding quarter and increased $306.7 million, or 25.6%, compared to a year earlier. Non-interest bearing checking accounts increased $104.9 million, or 27.1% year-over-year, to $491.3 million at September 30, 2021. Checking accounts, as a percentage of total deposits, totaled 51.7% at September 30, 2021.

Shareholders’ equity increased to $159.8 million at September 30, 2021 compared to $157.0 million three months earlier and $149.0 million a year earlier. Tangible book value per share (non-GAAP) increased to $5.96 at September 30, 2021 compared to $5.80 at June 30, 2021 and $5.43 at September 30, 2020. Riverview paid a quarterly cash dividend of $0.055 per share on October 19, 2021, which was a 10.0% increase over the dividend paid over the past seven quarters.

Credit Quality

Non-performing assets were $490,000, or 0.03% of total assets, at September 30, 2021 compared to $383,000, or 0.02% of total assets, three months earlier and $1.3 million, or 0.09% of total assets, at September 30, 2020. Riverview recorded net loan recoveries during the quarter of $10,000. This compared to net loan recoveries during the prior quarter of $12,000 and net loan charge-offs of $10,000 in the second fiscal quarter a year ago.

Due to the improvement in economic conditions, and the overall quality of the loan portfolio, Riverview recorded a recapture of loan losses of $1.1 million during the second fiscal quarter. This compared to a recapture of loan losses of $1.6 million in the prior quarter and a $1.8 million provision for loan losses during the second fiscal quarter a year ago.

At September 30, 2021, Riverview had no commercial loan modifications remaining on its books. This compared to one commercial loan totaling $563,000 at June 30, 2021. Riverview had no new commercial loan accommodation requests through the date of this press release. There were no consumer loan modifications as of September 30, 2021 or June 30, 2021.

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 5

Riverview’s hotel/motel portfolio performance has steadily improved over the last several quarters and at September 30, 2021 there were no remaining hotel/motel loans with COVID modifications. Loans in this portfolio are primarily concentrated in Northwest Oregon and Southwest Washington with a few properties located on the Oregon Coast and in the Columbia River Gorge. This portfolio is comprised of mainly flagged properties versus independent hotel/motels and are in the midscale and economy categories.

Classified assets were $10.3 million at September 30, 2021 compared to $8.6 million at June 30, 2021 and $4.8 million at September 30, 2020. The classified asset to total capital ratio was 6.2% at September 30, 2021 compared to 5.3% three months earlier and 3.2% a year earlier. Criticized assets decreased to $31.3 million at September 30, 2021 compared to $40.3 million at June 30, 2021, and $39.1 million at September 30, 2020. These balances are expected to further decline over the next several quarters as the Company receives updated financial statements from these borrowers. The criticized assets balance reflects risk rating changes primarily associated with loans that had been granted COVID-19 loan modifications. In general, borrowers whose loans were paying as agreed prior to COVID-19, remain well-secured and have provided acceptable plans for returning to full payment status were downgraded to a pass/watch rating. Modifications that extended beyond six months were generally downgraded to a special mention/criticized rating unless other mitigating considerations exist that lowered the bank’s credit risk. Borrowers who could not provide a plan or whose business was closed with no plan for re-opening in a reasonable timeframe, were moved to a substandard/classified rating. In addition, the risk rating was also downgraded for certain borrowers who were not granted COVID-19 loan modifications, but who still have been impacted negatively by the COVID-19 pandemic.

At September 30, 2021, the allowance for loan losses was $16.5 million, compared to $17.6 million at June 30, 2021 and $18.9 million one year earlier. The allowance for loan losses represented 1.80% of total loans at September 30, 2021, compared to 1.98% in the preceding quarter and 1.93% a year earlier. The allowance for loan losses to loans, net of SBA guaranteed loans (including SBA PPP loans) (non-GAAP), was 1.97% at September 30, 2021 compared to 2.22% at June 30, 2021 and 2.35% a year earlier. Included in the carrying value of loans are net discounts on the MBank purchased loans, which may reduce the need for an allowance for loan losses on these loans because they are carried at an amount below the outstanding principal balance. The remaining net discount on these purchased loans was $562,000 at September 30, 2021 compared to $652,000 three months earlier.

Capital

Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 17.42% and a Tier 1 leverage ratio of 9.08% at September 30, 2021. Tangible common equity to average tangible assets ratio (non-GAAP) was 7.82% at September 30, 2021.

PPP Loans

During Round 1, Riverview originated 790 PPP loans totaling approximately $112.9 million, net of deferred fees, with an average loan size of $147,000. Unamortized PPP deferred loan fees at September 30, 2021 totaled $5,000 for Round 1. The following table presents the breakdown and balance, net of deferred fees, of Round 1 PPP loans at September 30, 2021:

Range

Number of loans

Total

(in 000s)

Up to $150,000

4

$

116

$150,001 to $350,000

1

322

Total

5

$

438

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 6

In PPP Round 2, Riverview originated 414 PPP loans totaling approximately $54.1 million, net of deferred fees, with an average loan size of $131,000. Unamortized PPP deferred loan fees at September 30, 2021 totaled $1.2 million for Round 2. The following table presents the breakdown and balance, net of deferred fees, of Round 2 PPP loans at September 30, 2021:

Range

Number of loans

Total

(in 000s)

Up to $150,000

215

$

10,297

$150,001 to $350,000

45

9,951

$350,001 to $2,000,000

14

10,033

Over $2,000,000

1

1,948

Total

275

$

32,229

In total, 924 PPP loans totaling $134.3 million (80.4%) have been forgiven by the SBA or repaid by the borrower.

Stock Repurchase Program

On June 10, 2021, Riverview announced that its Board of Directors authorized the repurchase up to $5.0 million of the Company’s outstanding shares, in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning on June 21, 2021, and continuing until the earlier of the completion of the repurchase or the next six months. As of September 30, 2021, Riverview had purchased 249,908 shares at an average price of $6.89 per share under the existing plan.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Riverview’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below.

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 7

Tangible shareholders’ equity to tangible assets and tangible book value per share:

(Dollars in thousands)

September 30, 2021

June 30, 2021

September 30, 2020

March 31, 2021

Shareholders’ equity (GAAP)

$ 159,760

$ 156,976

$ 149,046

$ 151,594

Exclude: Goodwill

(27,076)

(27,076)

(27,076)

(27,076)

Exclude: Core deposit intangible, net

(557)

(588)

(689)

(619)

Tangible shareholders’ equity (non-GAAP)

$ 132,127

$ 129,312

$ 121,281

$ 123,899

Total assets (GAAP)

$ 1,716,352

$ 1,617,016

$ 1,425,171

$ 1,549,158

Exclude: Goodwill

(27,076)

(27,076)

(27,076)

(27,076)

Exclude: Core deposit intangible, net

(557)

(588)

(689)

(619)

Tangible assets (non-GAAP)

$ 1,688,719

$ 1,589,352

$ 1,397,406

$ 1,521,463

Shareholders’ equity to total assets (GAAP)

9.31%

9.71%

10.46%

9.79%

Tangible common equity to tangible assets (non-GAAP)

7.82%

8.14%

8.68%

8.14%

Shares outstanding

22,164,707

22,277,868

22,336,235

22,351,235

Book value per share (GAAP)

7.21

7.05

6.67

6.78

Tangible book value per share (non-GAAP)

5.96

5.80

5.43

5.54

Pre-tax, pre-provision income

Three Months Ended

Six Months Ended

(Dollars in thousands)

September 30, 2021

June 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Net income (GAAP)

$ 6,430

$ 5,755

$ 2,543

$ 12,185

$ 3,023

Include: Provision for income taxes

1,933

1,580

704

3,513

790

Include: Provision for (recapture of) loan losses

(1,100)

(1,600)

1,800

(2,700)

6,300

Pre-tax, pre-provision income (non-GAAP)

$ 7,263

$ 5,735

$ 5,047

$ 12,998

$ 10,113

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 8

Net interest margin reconciliation to core net interest margin

Three Months Ended

Six Months Ended

(Dollars in thousands)

September 30, 2021

June 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Net interest income (GAAP)

$

12,376

$

11,284

$

11,064

$

23,660

$

22,192

Tax equivalent adjustment

17

16

5

33

11

Net fees on loan prepayments

(485

)

(43

)

30

(528

)

130

Accretion on purchased MBank loans

(89

)

(71

)

(123

)

(160

)

(195

)

SBA PPP loans interest income and net fees

(928

)

(892

)

(691

)

(1,820

)

(1,302

)

Income on excess FRB liquidity

(129

)

(77

)

(50

)

(206

)

(68

)

Adjusted net interest income (non-GAAP)

$

10,762

$

10,217

$

10,235

$

20,979

$

20,768

Three Months Ended

Six Months Ended

(Dollars in thousands)

September 30, 2021

June 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Average balance of interest-earning assets (GAAP)

$

1,577,652

$

1,478,715

$

1,318,803

$

1,528,454

$

1,271,007

SBA PPP loans (average)

(46,169

)

(80,297

)

(110,573

)

(63,140

)

(97,762

)

Excess FRB liquidity (average)

(345,806

)

(272,331

)

(204,422

)

(309,269

)

(149,960

)

Average balance of interest-earning assets excluding

SBA PPP loans and excess FRB liquidity (non-GAAP)

$

1,185,677

$

1,126,087

$

1,003,808

$

1,156,045

$

1,023,285

Three Months Ended

Six Months Ended

September 30, 2021

June 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Net interest margin (GAAP)

3.12

%

3.07

%

3.33

%

3.09

%

3.48

%

Net fees on loan prepayments

(0.13

)

(0.02

)

0.01

(0.07

)

(0.02

)

Accretion on purchased MBank loans

(0.03

)

(0.02

)

(0.04

)

(0.02

)

(0.03

)

SBA PPP loans

(0.15

)

(0.08

)

0.08

(0.11

)

0.12

Excess FRB liquidity

0.79

0.69

0.66

0.73

0.50

Core net interest margin (non-GAAP)

3.60

%

3.64

%

4.04

%

3.62

%

4.05

%

Allowance for loan losses reconciliation, excluding SBA purchased and PPP loans

(Dollars in thousands)

September 30, 2021

June 30, 2021

September 30, 2020

March 31, 2021

Allowance for loan losses

$

16,500

$

17,590

$

18,866

$

19,178

Loans receivable (GAAP)

$

914,532

$

889,479

$

975,174

$

943,235

Exclude: SBA purchased loans

(43,709

)

(42,213

)

(61,990

)

(47,379

)

Exclude: SBA PPP loans

(32,666

)

(55,511

)

(110,794

)

(93,444

)

Loans receivable excluding SBA purchased and PPP loans (non-GAAP)

$

838,157

$

791,755

$

802,390

$

802,412

Allowance for loan losses to loans receivable (GAAP)

1.80

%

1.98

%

1.93

%

2.03

%

Allowance for loan losses to loans receivable excluding SBA purchased and PPP loans (non-GAAP)

1.97

%

2.22

%

2.35

%

2.39

%

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 9

About Riverview

Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon, on the I-5 corridor. With assets of $1.72 billion at September 30, 2021, it is the parent company of the 98-year-old Riverview Community Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial and retail clients through 16 branches, including 12 in the Portland-Vancouver area, and 3 lending centers. For the past 7 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal and The Columbian.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to: the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as the impact on general economic and financial conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity; the Company’s ability to raise common capital; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company’s allowance for loan losses and provision for loan losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in general economic conditions, either nationally or in the Company’s market areas; changes in the levels of general interest rates, and the relative differences between short and long term interest rates, deposit interest rates, the Company’s net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company’s market areas; secondary market conditions for loans and the Company’s ability to sell loans in the secondary market; results of examinations of us by the Office of Comptroller of the Currency or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase the Company’s reserve for loan losses, write-down assets, change Riverview Community Bank’s regulatory capital position or affect the Company’s ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; legislative or regulatory changes that adversely affect the Company’s business including changes in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company’s ability to attract and retain deposits; further increases in premiums for deposit insurance; the Company’s ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company’s assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company’s balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company’s workforce and potential associated charges; computer systems on which the Company depends could fail or experience a security breach; the Company’s ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company’s ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may in the future acquire into its operations and the Company’s ability to realize related revenue synergies and cost savings within expected time frames and any future goodwill impairment due to changes in the Company’s business, changes in market conditions, including as a result of the COVID-19 pandemic and other factors related thereto; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company’s ability to pay dividends on its common stock; and interest or principal payments on its junior subordinated debentures; adverse changes in the securities markets; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services and the other risks described from time to time in our filings with the SEC.

Such forward-looking statements may include projections. Any such projections were not prepared in accordance with published guidelines of the American Institute of Certified Public Accountants or the Securities Exchange Commission regarding projections and forecasts nor have such projections been audited, examined or otherwise reviewed by independent auditors of the Company. In addition, such projections are based upon many estimates and inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of management of the Company. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by the Company that the projections will prove to be correct.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2022 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s operating and stock price performance.

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 10

RIVERVIEW BANCORP, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(In thousands, except share data) (Unaudited)

September 30, 2021

June 30, 2021

September 30, 2020

March 31, 2021

ASSETS

Cash (including interest-earning accounts of $352,187, $318,639,

$ 368,122

$ 334,741

$ 238,016

$ 265,408

$226,583 and $254,205)

Certificate of deposits held for investment

249

249

249

249

Investment securities:

Available for sale, at estimated fair value

278,224

268,853

126,273

216,304

Held to maturity, at amortized cost

72,109

39,225

24

39,574

Loans receivable (net of allowance for loan losses of $16,500,

$17,590, $18,866, and $19,178)

898,032

871,889

956,308

924,057

Prepaid expenses and other assets

11,681

12,912

16,018

13,189

Accrued interest receivable

4,772

4,940

5,341

5,236

Federal Home Loan Bank stock, at cost

1,722

1,722

2,620

1,722

Premises and equipment, net

16,307

17,940

17,296

17,824

Financing lease right-of-use assets

1,393

1,413

1,470

1,432

Deferred income taxes, net

5,467

5,047

3,076

5,419

Mortgage servicing rights, net

52

66

128

81

Goodwill

27,076

27,076

27,076

27,076

Core deposit intangible, net

557

588

689

619

Bank owned life insurance

30,589

30,355

30,587

30,968

TOTAL ASSETS

$ 1,716,352

$ 1,617,016

$ 1,425,171

$ 1,549,158

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:

Deposits

$ 1,506,679

$ 1,412,966

$ 1,199,972

$ 1,346,060

Accrued expenses and other liabilities

20,165

17,431

16,087

21,906

Advance payments by borrowers for taxes and insurance

650

555

1,011

521

Federal Home Loan Bank advances

30,000

Junior subordinated debentures

26,791

26,770

26,705

26,748

Finance lease liability

2,307

2,318

2,350

2,329

Total liabilities

1,556,592

1,460,040

1,276,125

1,397,564

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, 2021 – 22,414,615 issued and 22,164,707 outstanding;

June 30, 2021 – 22,351,235 issued and 22,277,868 outstanding;

221

222

222

223

September 30, 2020 – 22,336,235 issued and outstanding;

March 31, 2021 – 22,351,235 issued and outstanding;

Additional paid-in capital

62,122

63,213

63,420

63,650

Retained earnings

97,727

92,522

82,666

87,881

Accumulated other comprehensive income (loss)

(310)

1,019

2,738

(160)

Total shareholders’ equity

159,760

156,976

149,046

151,594

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$ 1,716,352

$ 1,617,016

$ 1,425,171

$ 1,549,158

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 11

RIVERVIEW BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended

Six Months Ended

(In thousands, except share data) (Unaudited)

Sept. 30, 2021

June 30, 2021

Sept. 30, 2020

Sept. 30, 2021

Sept. 30, 2020

INTEREST INCOME:

Interest and fees on loans receivable

$ 11,626

$ 10,776

$ 11,346

$ 22,402

$ 22,874

Interest on investment securities – taxable

1,136

999

505

2,135

1,160

Interest on investment securities – nontaxable

55

50

17

105

35

Other interest and dividends

148

95

81

243

118

Total interest and dividend income

12,965

11,920

11,949

24,885

24,187

INTEREST EXPENSE:

Interest on deposits

399

442

657

841

1,515

Interest on borrowings

190

194

228

384

480

Total interest expense

589

636

885

1,225

1,995

Net interest income

12,376

11,284

11,064

23,660

22,192

Provision for (recapture of) loan losses

(1,100)

(1,600)

1,800

(2,700)

6,300

Net interest income after provision for (recapture of) loan losses

13,476

12,884

9,264

26,360

15,892

NON-INTEREST INCOME:

Fees and service charges

1,814

1,855

1,663

3,669

3,061

Asset management fees

928

976

883

1,904

1,857

Bank owned life insurance (“BOLI”)

234

190

242

424

432

BOLI death benefit in excess of cash surrender value

21

479

500

Other, net

77

88

31

165

92

Total non-interest income, net

3,074

3,588

2,819

6,662

5,442

NON-INTEREST EXPENSE:

Salaries and employee benefits

5,635

5,754

5,379

11,389

10,571

Occupancy and depreciation

1,309

1,409

1,457

2,718

2,907

Data processing

724

765

697

1,489

1,358

Amortization of core deposit intangible

31

31

35

62

70

Advertising and marketing

180

152

110

332

239

FDIC insurance premium

113

95

84

208

132

State and local taxes

221

198

204

419

408

Telecommunications

55

46

85

101

171

Professional fees

343

317

321

660

641

Other

(424)

370

464

(54)

1,024

Total non-interest expense

8,187

9,137

8,836

17,324

17,521

INCOME BEFORE INCOME TAXES

8,363

7,335

3,247

15,698

3,813

PROVISION FOR INCOME TAXES

1,933

1,580

704

3,513

790

NET INCOME

$ 6,430

$ 5,755

$ 2,543

$ 12,185

$ 3,023

Earnings per common share:

Basic

$ 0.29

$ 0.26

$ 0.11

$ 0.55

$ 0.14

Diluted

$ 0.29

$ 0.26

$ 0.11

$ 0.55

$ 0.14

Weighted average number of common shares outstanding:

Basic

22,179,829

22,344,785

22,261,709

22,261,856

22,259,201

Diluted

22,191,487

22,358,764

22,276,312

22,274,668

22,276,308

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 12

(Dollars in thousands)

At or for the three months ended

At or for the six months ended

Sept. 30, 2021

June 30, 2021

Sept. 30, 2020

Sept. 30, 2021

Sept. 30, 2020

AVERAGE BALANCES

Average interest-earning assets

$ 1,577,652

$ 1,478,715

$ 1,318,803

$ 1,528,454

$ 1,271,007

Average interest-bearing liabilities

1,023,389

959,033

854,303

991,386

831,634

Net average earning assets

554,263

519,682

464,500

537,068

439,373

Average loans

902,971

925,161

983,737

914,006

985,268

Average deposits

1,469,311

1,373,086

1,190,551

1,421,462

1,148,277

Average equity

159,794

154,981

150,401

157,400

150,553

Average tangible equity (non-GAAP)

132,142

127,299

122,615

129,733

122,749

ASSET QUALITY

Sept. 30, 2021

June 30, 2021

Sept. 30, 2020

Non-performing loans

$ 490

$ 383

$ 1,275

Non-performing loans to total loans

0.05%

0.04%

0.13%

Real estate/repossessed assets owned

$ –

$ –

$ –

Non-performing assets

$ 490

$ 383

$ 1,275

Non-performing assets to total assets

0.03%

0.02%

0.09%

Net loan charge-offs in the quarter

$ (10)

$ (12)

$ 10

Net charge-offs in the quarter/average net loans

0.00%

(0.01)%

0.00%

Allowance for loan losses

$ 16,500

$ 17,590

$ 18,866

Average interest-earning assets to average

interest-bearing liabilities

154.16%

154.19%

154.37%

Allowance for loan losses to

non-performing loans

3367.35%

4592.69%

1479.69%

Allowance for loan losses to total loans

1.80%

1.98%

1.93%

Shareholders’ equity to assets

9.31%

9.71%

10.46%

CAPITAL RATIOS

Total capital (to risk weighted assets)

17.42%

17.49%

17.53%

Tier 1 capital (to risk weighted assets)

16.16%

16.23%

16.26%

Common equity tier 1 (to risk weighted assets)

16.16%

16.23%

16.26%

Tier 1 capital (to average tangible assets)

9.08%

9.37%

9.82%

Tangible common equity (to average tangible assets) (non-GAAP)

7.82%

8.14%

8.68%

DEPOSIT MIX

Sept. 30, 2021

June 30, 2021

Sept. 30, 2020

March 31, 2021

Interest checking

$ 288,242

$ 274,081

$ 229,879

$ 258,014

Regular savings

329,462

307,026

251,547

291,769

Money market deposit accounts

277,321

265,894

200,829

240,554

Non-interest checking

491,313

443,797

386,408

435,098

Certificates of deposit

120,341

122,168

131,309

120,625

Total deposits

$ 1,506,679

$ 1,412,966

$ 1,199,972

$ 1,346,060

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 13

COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS

Other

Commercial

Commercial

Real Estate

Real Estate

& Construction

Business

Mortgage

Construction

Total

September 30, 2021

(Dollars in thousands)

Commercial business

$ 174,043

$ –

$ –

$ 174,043

SBA PPP

32,666

32,666

Commercial construction

2,793

2,793

Office buildings

129,063

129,063

Warehouse/industrial

96,321

96,321

Retail/shopping centers/strip malls

80,226

80,226

Assisted living facilities

761

761

Single purpose facilities

260,672

260,672

Land

15,925

15,925

Multi-family

40,455

40,455

One-to-four family construction

10,828

10,828

Total

$ 206,709

$ 623,423

$ 13,621

$ 843,753

March 31, 2021

Commercial business

$ 171,701

$ –

$ –

$ 171,701

SBA PPP

93,444

93,444

Commercial construction

9,810

9,810

Office buildings

135,526

135,526

Warehouse/industrial

87,880

87,880

Retail/shopping centers/strip malls

85,414

85,414

Assisted living facilities

854

854

Single purpose facilities

233,793

233,793

Land

14,040

14,040

Multi-family

45,014

45,014

One-to-four family construction

7,180

7,180

Total

$ 265,145

$ 602,521

$ 16,990

$ 884,656

LOAN MIX

Sept. 30, 2021

June 30, 2021

Sept. 30, 2020

March 31, 2021

Commercial and construction

Commercial business

$ 206,709

$ 216,128

$ 281,670

$ 265,145

Other real estate mortgage

623,423

608,673

590,386

602,521

Real estate construction

13,621

11,386

28,308

16,990

Total commercial and construction

843,753

836,187

900,364

884,656

Consumer

Real estate one-to-four family

69,079

51,480

71,940

56,405

Other installment

1,700

1,812

2,870

2,174

Total consumer

70,779

53,292

74,810

58,579

Total loans

914,532

889,479

975,174

943,235

Less:

Allowance for loan losses

16,500

17,590

18,866

19,178

Loans receivable, net

$ 898,032

$ 871,889

$ 956,308

$ 924,057

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 14

DETAIL OF NON-PERFORMING ASSETS

Southwest

Washington

Other

Total

September 30, 2021

Commercial business

$ 172

$ 95

$ 267

Commercial real estate

133

133

Consumer

87

3

90

Total non-performing assets

$ 392

$ 98

$ 490

DETAIL OF LOAN MODIFICATIONS

Number of Loan Deferrals

6/30/2021

Ended

New

9/30/2021

Change

Retail strip centers

1

(1)

(100.0)%

Total number of loan modifications

1

(1)

(100.0)%

Loan Deferrals

6/30/2021

Ended

New

9/30/2021

Change

(dollars in thousands)

Retail strip centers

$ 563

$ (563)

$ –

$ –

(100.0)%

Total amount of loan modifications

$ 563

$ (563)

$ –

$ –

(100.0)%

RVSB Reports Second Quarter Fiscal 2022 Results

October 28, 2021

Page 15

At or for the three months ended

At or for the six months ended

SELECTED OPERATING DATA

Sept. 30, 2021

June 30, 2021

Sept. 30, 2020

Sept. 30, 2021

Sept. 30, 2020

Efficiency ratio (4)

52.99

%

61.44

%

63.65

%

57.13

%

63.40

%

Coverage ratio (6)

151.17

%

123.50

%

125.22

%

136.57

%

126.66

%

Return on average assets (1)

1.52

%

1.46

%

0.71

%

1.49

%

0.44

%

Return on average equity (1)

15.96

%

14.89

%

6.71

%

15.44

%

4.00

%

Return on average tangible equity (1) (non-GAAP)

19.31

%

18.13

%

8.23

%

18.73

%

4.91

%

NET INTEREST SPREAD

Yield on loans

5.11

%

4.67

%

4.58

%

4.89

%

4.63

%

Yield on investment securities

1.47

%

1.53

%

1.62

%

1.50

%

1.79

%

Total yield on interest-earning assets

3.26

%

3.24

%

3.60

%

3.25

%

3.80

%

Cost of interest-bearing deposits

0.16

%

0.19

%

0.33

%

0.17

%

0.39

%

Cost of FHLB advances and other borrowings

2.59

%

2.68

%

1.53

%

2.63

%

1.75

%

Total cost of interest-bearing liabilities

0.23

%

0.27

%

0.41

%

0.25

%

0.48

%

Spread (7)

3.03

%

2.97

%

3.19

%

3.00

%

3.32

%

Net interest margin

3.12

%

3.07

%

3.33

%

3.09

%

3.48

%

PER SHARE DATA

Basic earnings per share (2)

$

0.29

$

0.26

$

0.11

$

0.55

$

0.14

Diluted earnings per share (3)

0.29

0.26

0.11

0.55

0.14

Book value per share (5)

7.21

7.05

6.67

7.21

6.67

Tangible book value per share (5) (non-GAAP)

5.96

5.80

5.43

5.96

5.43

Market price per share:

High for the period

$

7.60

$

7.35

$

5.31

$

7.60

$

6.12

Low for the period

6.76

6.47

3.82

6.47

3.82

Close for period end

7.27

7.09

4.15

7.27

4.15

Cash dividends declared per share

0.0550

0.0500

0.0500

0.1050

0.1000

Average number of shares outstanding:

Basic (2)

22,179,829

22,344,785

22,261,709

22,261,856

22,259,201

Diluted (3)

22,191,487

22,358,764

22,276,312

22,274,668

22,276,308

(1)

Amounts for the periods shown are annualized.

(2)

Amounts exclude ESOP shares not committed to be released.

(3)

Amounts 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 based on shareholders’ equity and 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.

Disclaimer

Riverview Bancorp Inc. published this content on 01 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2021 19:16:02 UTC.


Publicnow 2021

All news about RIVERVIEW BANCORP, INC.
Sales 2022 59,0 M

Net income 2022 19,3 M

Net Debt 2022

P/E ratio 2022 8,40x
Yield 2022 2,84%
Capitalization 164 M
164 M
Capi. / Sales 2022 2,78x
Capi. / Sales 2023 2,56x
Nbr of Employees 232
Free-Float 92,5%
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Last Close Price 7,39 
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