HARRISBURG, PA -- (Marketwired) -- 10/19/16 -- Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), the financial holding company for Riverview Bank, today reported unaudited financial results at and for the three and nine months ended September 30, 2016. Riverview reported net income of $971 thousand, or $0.30 per basic and diluted weighted average share for the third quarter of 2016, compared to $622 thousand, or $0.23 per share, for the comparable period of 2015.
Core net income for the three months ended September 30, 2016 was $880 thousand, an increase of 20.5% from $730 thousand for the second quarter of 2016 and an increase of 1.6% from $866 thousand for the same period in 2015. Core net income, a non-GAAP financial measure reconciled to net income in the tabular material that follows, excludes net gains on sale of investment securities and acquisition related expenses, net of tax. Net gains on the sale of investment securities were $152 thousand for the third quarter of 2016 and $11 thousand for the same period last year. The results for the three months ended September 30, 2015, included pretax expenses related to the acquisition of Citizens National Bank of Meyersdale (the "merger") of approximately $380 thousand. Core net income per share for the three months ended September 30, 2016 was $0.27, compared to $0.23 for the second quarter of 2016 and $0.32 for the same period in 2015.
Net income for the nine months ended September 30, 2016, totaled $2.6 million or $0.80 per share compared to a net loss of $348 thousand or ($0.13) per share for the same period last year.
Core net income for the nine months ended September 30, 2016 was $2.4 million, up 61.8% from $1.5 million for the same period in 2015. Core net income per share for the nine months ended September 30, 2016 was $0.75, an increase from $0.55 for the same period in 2015. The results for the nine months ended September 30, 2016 included net gains on sale of investment securities of $319 thousand compared to a net loss of $20 thousand for the comparable nine months of 2015. Pretax acquisition and restructuring related expenses recognized for the nine months ended September 30, 2015, approximated $2.8 million.
"We are pleased with the progression of our quarterly earnings over the past three quarters after the completion of the merger of Citizens National Bank of Meyersdale with and into Riverview Bank in the fourth quarter of 2015," stated Kirk D. Fox, Chief Executive Officer. "Despite the continuation of a very challenging interest rate and competitive environment, we have been able to maintain the level of our net interest margin which is the driving force behind the earnings improvement. In addition, we continue to focus our efforts on the successful build out of our Wealth Management Division in order to diversify revenue flow through increased noninterest income. This division will afford our customers the ability to invest in expanded offerings of investment products and services outside of those traditionally offered through our branch system," continued Fox. "With respect to nonfinancial objectives, we plan to introduce our mobile banking product in the first quarter of 2017, which will significantly improve customer access to their banking relationship with Riverview Bank and is expected to grow our core deposit base," concluded Fox.
HIGHLIGHTS
- Net income per share increased to $0.30 in the third quarter of 2016 versus $0.23 for the same period in 2015.
- For the third quarter of 2016, tax equivalent net interest margin improved to 3.99% compared to 3.78% for the same period in 2015.
- Deposits grew $10.7 million or 3.2% annualized in 2016.
- Nonperforming assets decreased to $8.6 million at the end of the third quarter of 2016 from $9.4 million at the end of the second quarter 2016 and $10.8 million at December 31, 2015.
- Tangible book value per share improved $0.14 to $11.54 at the end of the third quarter of 2016 compared to $11.40 at June 30, 2016.
INCOME STATEMENT REVIEW
The tax-equivalent net interest margins for the three and nine months ended September 30, were 3.99% and 3.85% in 2016, compared to 3.78% and 3.76% in 2015, respectively.
Tax-equivalent net interest income for the nine months ended September 30, increased $2.5 million to $14.0 million in 2016 from $11.5 million in 2015. The increase in tax equivalent net interest income was primarily attributable to additional interest earning assets and interest bearing liabilities acquired as part of the merger as well as a 9 basis point increase in the tax-equivalent net interest margin. The tax-equivalent yield on the loan portfolio increased to 4.57% for the nine months ended September 30, 2016 compared to 4.48% for the comparable period in 2015. Loans, net averaged $402.5 million in 2016 and $349.8 million in 2015. For the nine months ended September 30, the tax-equivalent yield on total investments increased to 3.35% in 2016 from 3.33% in 2015. Average investments totaled $72.1 million in the nine months ended September 30, 2016 and $48.4 million for the comparable period in 2015. Average interest-bearing liabilities increased for the nine months ended September 30, 2016 to $416.4 million, compared to $346.1 million for the corresponding period last year. The cost of funds declined to 0.53% in the nine months ended September 30, 2016 from 0.57% for the same period of 2015. Tax-equivalent net interest income for the three months ended September 30, increased to $4.8 million in 2016 from $3.9 million in 2015.
The provision for loan losses totaled $284 thousand for the nine months ended September 30, 2016, compared to $450 thousand for the same period last year. The decrease in the provision for loan losses in 2016 was due to the application of our allowance for loan losses methodology, which was primarily influenced by a lower level of nonperforming assets as a percentage of loans and foreclosed assets compared to the prior year period. A provision of $29 thousand was recognized for the quarter ended September 30, 2016 as compared with none for the quarter ended September 30, 2015.
For the nine months ended September 30, noninterest income totaled $2.6 million in 2016, an increase from $1.7 million in 2015. Net gains on sale of investment securities were $484 thousand in 2016 compared to a net loss of $30 thousand in 2015. Increased service charges, fees and commissions, trust income, mortgage banking activities and life insurance investment income more than offset a decrease in wealth management income and losses on the sale of other real estate owned. For the three months ended September 30, noninterest income totaled $970 thousand in 2016 and $606 thousand in 2015.
Noninterest expense decreased $990 thousand or 7.3%, to $12.6 million for the nine months ended September 30, 2016, from $13.6 million for the nine months ended September 30, 2015. The reduction in salaries and employee benefit expense was a result of the recognition of a severance payout for the departure of the former chief executive officer in 2015. The implementation of certain consolidation and efficiency initiatives related to branch closures in 2015 was the primary cause of declines in net occupancy and equipment expenses in 2016. For the third quarter, noninterest expense amounted to $4.3 million in 2016 and $3.6 million in 2015.
BALANCE SHEET REVIEW
Total assets, loans and deposits totaled $527.1 million, $398.2 million and $459.0 million, respectively, at September 30, 2016. Loans, net decreased $11.7 million or 2.8% comparing the end of the third quarter 2016 to year-end 2015. Total deposits increased $10.7 million through nine months of 2016. Noninterest-bearing deposits increased $1.2 million or 2.3% annualized, while interest-bearing deposits increased $9.5 million or 3.3% annualized in 2016. Total investments were $72.4 million at September 30, 2016, a decrease of $3.5 million or 6.1% annualized from year-end 2015.
Stockholders' equity totaled $44.2 million or $13.67 per share at September 30, 2016, and $42.3 million or $13.20 per share at December 31, 2015. Total tangible stockholders' equity improved to $37.3 million or $11.54 per share at September 30, 2016, compared to $36.0 million or $11.24 per share at year-end 2015. Dividends declared for the nine months ended September 30, 2016 amounted to $0.41 per share representing a dividend payout ratio of 51.3%.
ASSET QUALITY REVIEW
Nonperforming assets were $8.6 million or 2.2% of loans, net and foreclosed assets at September 30, 2016, an improvement from $9.4 million or 2.4% at June 30, 2016, and $10.8 million or 2.6% at December 31, 2015. The allowance for loan losses equaled $3.6 million or 0.91% of loans, net at September 30, 2016 compared to $4.4 million or 1.07% of loans, net, at December 31, 2015. Loans charged-off, net of recoveries, for the nine months ended September 30, 2016, equaled $1.0 million or 0.33% of average loans, compared to $248 thousand or 0.10% of average loans for the nine months ended September 30, 2015.
Riverview Financial Corporation is the parent company of Riverview Bank and its operating divisions Halifax Bank, Marysville Bank, Citizens Neighborhood Bank, and Riverview Financial Wealth Management. An independent community bank, Riverview Bank serves Berks, Dauphin, Northumberland, Perry, Schuylkill, and Somerset Counties in Pennsylvania through 17 offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Riverview Financial Wealth Management provides investment advisory services to the general public through offices in Lebanon, Northumberland and Schuylkill Counties. The Company's business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies. The Company's Investor Relations site can be accessed at https://www.riverviewbankpa.com/.
Safe Harbor Forward-Looking Statements:
We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Riverview Financial Corporation, Riverview Bank, and its subsidiaries (collectively, "Riverview") that may be considered "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as "believe," "expect," "anticipate," "should," "planned," "estimated," "intend" and "potential." For these statements, Riverview claims the protection of the statutory safe harbors for forward-looking statements.
Riverview cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting Riverview' operations, pricing, products and services and other factors that may be described in Riverview' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time.
In addition to these risks, acquisitions and business combinations, present risks other than those presented by the nature of the business acquired. Acquisitions and business combinations may be substantially more expensive to complete than originally anticipated, and the anticipated benefits may be significantly harder-or take longer-to achieve than expected. As regulated financial institutions, our pursuit of attractive acquisition and business combination opportunities could be negatively impacted by regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre acquisition operations of an acquired or combined business may cause reputational harm to Riverview following the acquisition or combination, and integration of the acquired or combined business with ours may result in additional future costs arising as a result of those issues.
The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Riverview assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America ("GAAP"), Riverview routinely presents and supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders' equity and core net income ratios. The reported results for the three and nine months ended September 30, 2016 and 2015, contain items which Riverview considers non-core, namely net gains on sales of investment securities available-for-sale and acquisition related expenses. Riverview presents the non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in Riverview's results of operation. Presentation of these non-GAAP financial measures is consistent with how Riverview evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in evaluation of companies in Riverview's industry. Where non-GAAP measures are used in this press release, reconciliations to the comparable GAAP measures are provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from similarly titled non-GAAP financial measures of other financial institutions. These non-GAAP financial measures would not be considered a substitute for GAAP basis measures, and Riverview strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are presented in the tabular material that follows.
[TABULAR MATERIAL FOLLOWS]
Summary Data
Riverview Financial Corporation
Five Quarter Trend
(In thousands, except per share data)
Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2016 2016 2016 2015 2015
Key performance
data:
Per share data:
Net income
(loss) $ 0.30 $ 0.27 $ 0.23 $ (0.15) $ 0.23
Core net income
(loss) (1) $ 0.27 $ 0.23 $ 0.25 $ (0.02) $ 0.32
Cash dividends
declared $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14
Book value $ 13.67 $ 13.57 $ 13.40 $ 13.20 $ 13.54
Tangible book
value (1) $ 11.54 $ 11.40 $ 11.47 $ 11.24 $ 12.26
Market value:
High $ 12.20 $ 12.10 $ 13.20 $ 13.40 $ 13.00
Low $ 11.00 $ 11.00 $ 11.00 $ 12.50 $ 11.90
Closing $ 11.40 $ 12.10 $ 11.10 $ 13.20 $ 12.25
Market
capitalization $ 36,816 $ 38,973 $ 35,597 $ 42,313 $ 33,213
Common shares
outstanding 3,229,467 3,220,934 3,206,927 3,205,544 2,711,258
Selected ratios:
Return on
average
stockholders'
equity 8.73% 7.92% 7.07% (4.36%) 6.75%
Core return on
average
stockholders'
equity (1) 7.91% 6.76% 7.47% (0.70%) 9.39%
Return on
average
tangible
stockholders'
equity (1) 10.36% 9.34% 8.27% (5.02%) 7.09%
Core return on
average
tangible
stockholders'
equity (1) 9.39% 7.97% 8.74% (0.80%) 9.86%
Return on
average assets 0.73% 0.64% 0.56% (0.35%) 0.55%
Core return on
average assets
(1) 0.66% 0.55% 0.59% (0.06%) 0.77%
Stockholders'
equity to total
assets 8.38% 8.29% 7.95% 7.70% 8.12%
Efficiency ratio
(2) 74.02% 79.53% 76.85% 91.65% 79.46%
Nonperforming
assets to
loans, net, and
foreclosed
assets 2.15% 2.35% 2.44% 2.63% 3.40%
Net charge-offs
to average
loans, net 0.27% 0.74% 0.73% 0.17%
Allowance for
loan losses to
loans, net 0.91% 0.91% 0.93% 1.07% 1.13%
Earning assets
yield (FTE) (3) 4.43% 4.22% 4.26% 4.30% 4.23%
Cost of funds 0.51% 0.54% 0.53% 0.50% 0.53%
Net interest
spread (FTE)
(3) 3.92% 3.68% 3.73% 3.80% 3.70%
Net interest
margin (FTE)
(3) 3.99% 3.75% 3.80% 3.88% 3.78%
(1) See Reconciliation of Non-GAAP financial measures.
(2) Total noninterest expense less amortization of intangible assets divided
by tax-equivalent net interest income and noninterest income less net
gain (loss) on sale of investment securities available-for-sale.
(3) Tax-equivalent adjustments were calculated using the prevailing federal
statutory tax rate of 34%.
Riverview Financial Corporation
Consolidated Statements of Income
(In thousands, except per share data)
Nine Months Ended Sept 30 Sept 30
2016 2015
Interest income:
Interest and fees on loans:
Taxable $ 13,362 $ 11,396
Tax-exempt 261 210
Interest and dividends on investment securities:
Taxable 1,375 690
Tax-exempt 280 335
Dividends 8 9
Interest on interest-bearing deposits in other
banks 41 27
Interest on federal funds sold 2
Total interest income 15,329 12,667
Interest expense:
Interest on deposits 1,375 1,294
Interest on short-term borrowings 59 48
Interest on long-term debt 214 133
Total interest expense 1,648 1,475
Net interest income 13,681 11,192
Provision for loan losses 284 450
Net interest income after provision for loan
losses 13,397 10,742
Noninterest income:
Service charges, fees, commissions 933 740
Commissions and fees on fiduciary activities 88 65
Wealth management income 531 562
Mortgage banking income 401 316
Life insurance investment income 276 167
Net loss on sale or adjustment of other real
estate owned (116) (92)
Net gain (loss) on sale of investment securities
available-for-sale 484 (30)
Total noninterest income 2,597 1,728
Noninterest expense:
Salaries and employee benefits expense 6,611 7,636
Net occupancy and equipment expense 1,617 2,135
Amortization of intangible assets 247 196
Other expenses 4,102 3,600
Total noninterest expense 12,577 13,567
Income before income taxes 3,417 (1,097)
Provision for income tax expense (benefit) 838 (749)
Net income (loss) $ 2,579 $ (348)
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities
available-for-sale $ 940 $ (144)
Reclassification adjustment for gain included in
net income (484) 30
Income tax expense (benefit) related to other
comprehensive income 155 (39)
Other comprehensive income (loss), net of
income taxes 301 (75)
Comprehensive income (loss) $ 2,880 $ (423)
Per share data:
Net income (loss):
Basic $ 0.80 $ (0.13)
Diluted $ 0.80 $ (0.13)
Average common shares outstanding:
Basic 3,214,967 2,709,887
Diluted 3,237,553 2,718,742
Cash dividends declared $ 0.41 $ 0.41
Riverview Financial Corporation
Consolidated Statements of Income
(In thousands, except per share data)
Three months ended Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2016 2016 2016 2015 2015
Interest income:
Interest and fees
on loans:
Taxable $ 4,598 $ 4,337 $ 4,427 $ 3,937 $ 3,821
Tax-exempt 87 88 86 83 78
Interest and
dividends on
investment
securities
available-for-
sale:
Taxable 539 435 401 269 225
Tax-exempt 53 91 136 141 133
Dividends 1 4 3 4 3
Interest on
interest-bearing
deposits in other
banks 13 13 15 10 9
Interest on
federal funds
sold - 1 1
Total interest
income 5,291 4,969 5,069 4,444 4,269
Interest expense:
Interest on
deposits 447 461 467 385 419
Interest on short-
term borrowings 3 13 43 33 15
Interest on long-
term debt 77 82 55 36 28
Total interest
expense 527 556 565 454 462
Net interest
income 4,764 4,413 4,504 3,990 3,807
Provision for loan
losses 29 156 99 1,022
Net interest
income after
provision for
loan losses 4,735 4,257 4,405 2,968 3,807
Noninterest
income:
Service charges,
fees, commissions 315 320 298 281 265
Commissions and
fees on fiduciary
activities 34 35 19 20 22
Wealth management
income 194 179 158 186 179
Mortgage banking
income 210 109 82 87 112
Life insurance
investment income 118 76 82 50 42
Net gain (loss) on
sale or
adjustment of
other real estate
owned (53) (69) 6 (168) (25)
Net gain (loss) on
sale of
investment
securities
available-for-
sale 152 334 (2) 13 11
Total
noninterest
income 970 984 643 469 606
Noninterest
expense:
Salaries and
employee benefits
expense 2,334 2,126 2,151 2,364 1,765
Net occupancy and
equipment expense 538 526 553 565 794
Amortization of
intangible assets 95 76 76 63 65
Other expenses 1,313 1,448 1,341 1,252 1,025
Total
noninterest
expense 4,280 4,176 4,121 4,244 3,649
Income before
income taxes 1,425 1,065 927 (807) 764
Income tax expense
(benefit) 454 210 174 (401) 142
Net income
(loss) $ 971 $ 855 $ 753 $ (406) $ 622
Other
comprehensive
income (loss):
Unrealized gain
(loss) on
investment
securities
available-for-
sale $ (148) $ 581 $ 507 $ 103 $ 232
Reclassification
adjustment for
(gain) loss
included in net
income (152) (334) 2 (13) (11)
Change in pension
liability (344)
Income tax expense
(benefit) related
to other
comprehensive
income (loss) (102) 84 173 (86) 75
Other
comprehensive
income
(loss), net
of income
taxes (198) 163 336 (168) 146
Comprehensive
income (loss) $ 773 $ 1,018 $ 1,089 $ (574) $ 768
Per share data:
Net income (loss):
Basic $ 0.30 $ 0.27 $ 0.23 $ (0.15) $ 0.23
Diluted $ 0.30 $ 0.27 $ 0.23 $ (0.15) $ 0.23
Average common
shares
outstanding:
Basic 3,224,053 3,214,247 3,206,501 2,712,547 2,710,803
Diluted 3,244,688 3,245,867 3,222,005 2,720,349 2,719,328
Cash dividends
declared $ 0.14 $ 0.14 $ 0.14 $ 0.14 $ 0.14
Riverview Financial Corporation
Details of Net Interest and Net Interest Margin
(In thousands, fully taxable equivalent basis)
Three months ended Sept 30 June 30 Mar 31 Dec 31 Sept 30
2016 2016 2016 2015 2015
Net interest income:
Interest income
Loans, net:
Taxable $ 4,598 $ 4,337 $ 4,427 $ 3,937 $ 3,821
Tax-exempt 132 133 130 126 118
Total loans, net 4,730 4,470 4,557 4,063 3,939
Investments:
Taxable 540 439 404 273 228
Tax-exempt 80 138 206 214 202
Total investments 620 577 610 487 430
Interest on interest-
bearing balances in
other banks 13 13 15 10 9
Federal funds sold 1 1
Total interest income 5,363 5,061 5,183 4,560 4,378
Interest expense:
Deposits 447 461 467 385 419
Short-term borrowings 3 13 43 33 15
Long-term debt 77 82 55 36 28
Total interest expense 527 556 565 454 462
Net interest income $ 4,836 $ 4,505 $ 4,618 $ 4,106 $ 3,916
Loans, net:
Taxable 4.71% 4.49% 4.52% 4.54% 4.44%
Tax-exempt 4.49% 4.31% 4.12% 4.43% 4.71%
Total loans, net 4.70% 4.49% 4.51% 4.53% 4.45%
Investments:
Taxable 3.30% 2.97% 3.02% 3.06% 2.85%
Tax-exempt 4.90% 4.54% 4.31% 4.43% 4.41%
Total investments 3.44% 3.24% 3.36% 3.54% 3.41%
Interest-bearing balances
with banks 0.55% 0.54% 0.67% 0.39% 0.36%
Federal funds sold 0.43% 0.50%
Total earning assets 4.43% 4.22% 4.26% 4.30% 4.23%
Interest expense:
Deposits 0.45% 0.47% 0.48% 0.48% 0.52%
Short-term borrowings 0.56% 0.55% 0.58% 0.39% 0.35%
Long-term debt 2.71% 2.90% 2.34% 1.88% 1.75%
Total interest-bearing
liabilities 0.51% 0.54% 0.53% 0.50% 0.53%
Net interest spread 3.92% 3.68% 3.73% 3.80% 3.70%
Net interest margin 3.99% 3.75% 3.80% 3.88% 3.78%
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
At period end 2016 2016 2016 2015 2015
Assets:
Cash and due from banks $ 7,066 $ 6,193 $ 13,145 $ 14,679 $ 6,514
Interest-bearing balances
in other banks 9,051 8,606 12,194 8,009 8,739
Investment securities
available-for-sale 72,371 74,253 73,317 75,850 53,853
Loans held for sale 820 318 594 1,094
Loans, net 398,193 398,493 401,482 409,845 352,308
Less: allowance for loan
losses 3,637 3,609 3,717 4,365 3,994
Net loans 394,556 394,884 397,765 405,480 348,314
Premises and equipment,
net 12,287 12,236 12,349 12,373 11,696
Accrued interest
receivable 1,701 1,586 1,610 1,594 1,368
Goodwill 5,408 5,408 4,757 4,757 2,297
Other intangible assets,
net 1,497 1,593 1,425 1,501 1,175
Other assets 22,321 22,236 23,759 24,112 18,009
Total assets $ 527,078 $ 527,313 $ 540,915 $ 549,449 $ 451,965
Liabilities:
Deposits:
Noninterest-bearing $ 71,329 $ 70,230 $ 69,935 $ 70,106 $ 54,020
Interest-bearing 387,664 391,217 385,569 378,236 324,715
Total deposits 458,993 461,447 455,504 448,342 378,735
Short-term borrowings 6,000 4,069 25,000 42,575 23,333
Long-term debt 11,257 11,335 11,400 9,350 7,350
Accrued interest payable 220 221 267 236 112
Other liabilities 6,447 6,520 5,766 6,643 5,715
Total liabilities 482,917 483,592 497,937 507,146 415,245
Stockholders' equity:
Common stock 22,077 22,077 22,077 22,077 22,077
Capital surplus 7,089 6,979 6,812 6,784 254
Retained earnings 14,802 14,274 13,861 13,550 14,329
Accumulated other
comprehensive income
(loss) 193 391 228 (108) 60
Total stockholders'
equity 44,161 43,721 42,978 42,303 36,720
Total liabilities and
stockholders' equity $ 527,078 $ 527,313 $ 540,915 $ 549,449 $ 451,965
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands except per share data)
Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
Average quarterly balances 2016 2016 2016 2015 2015
Assets:
Loans, net:
Taxable $ 388,752 $ 388,062 $ 393,778 $ 344,201 $ 341,147
Tax-exempt 11,675 12,446 12,714 11,272 9,958
Total loans, net 400,427 400,508 406,492 355,473 351,105
Investments:
Taxable 65,126 59,354 53,747 35,365 31,786
Tax-exempt 6,524 12,203 19,244 19,196 18,132
Total investments 71,650 71,557 72,991 54,561 49,918
Interest-bearing balances
with banks 9,371 9,673 8,998 10,219 9,834
Federal funds sold 199 926 808 15 34
Total earning assets 481,647 482,664 489,289 420,268 410,891
Other assets 49,010 50,667 55,785 38,225 37,361
Total assets $ 530,657 $ 533,331 $ 545,074 $ 458,493 $ 448,252
Liabilities and
stockholders' equity:
Deposits:
Interest-bearing $ 395,272 $ 392,343 $ 388,317 $ 317,374 $ 322,405
Noninterest-bearing 70,956 70,342 68,274 57,101 59,795
Total deposits 466,228 462,685 456,591 374,475 382,200
Short-term borrowings 2,114 9,451 29,593 33,517 17,058
Long-term debt 11,284 11,360 9,440 7,589 6,359
Other liabilities 6,799 6,425 6,615 5,970 6,077
Total liabilities 486,425 489,921 502,239 421,551 411,694
Stockholders' equity 44,232 43,410 42,835 36,942 36,558
Total liabilities and
stockholders' equity $ 530,657 $ 533,331 $ 545,074 $ 458,493 $ 448,252
Riverview Financial Corporation
Asset Quality Data
(In thousands)
Sept 30 Jun 30 Mar 31 Dec 31 Sept 30
2016 2016 2016 2015 2015
At quarter end:
Nonperforming assets:
Nonaccrual loans $ 1,463 $ 1,575 $ 1,949 $ 3,182 $ 3,744
Accruing restructured
loans 6,017 6,600 6,626 6,666 6,176
Accruing loans past due
90 days or more 133 349 199 89 1,020
Foreclosed assets 988 842 1,043 885 1,057
Total nonperforming assets $ 8,601 $ 9,366 $ 9,817 $ 10,822 $ 11,997
Three months ended:
Allowance for loan losses:
Beginning balance $ 3,609 $ 3,717 $ 4,365 $ 3,994 $ 4,145
Charge-offs 34 303 758 652 172
Recoveries 34 39 11 1 21
Provision for loan losses 29 156 99 1,022
Ending balance $ 3,638 $ 3,609 $ 3,717 $ 4,365 $ 3,994
Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
Sept 30 Jun 30 Mar 30 Dec 31 Sept 30
2016 2016 2016 2015 2015
Three months
ended:
Core net income
(loss) per
share:
Net income (loss)
GAAP $ 971 $ 855 $ 753 $ (406) $ 622
Adjustments:
Less: Gain (loss)
on sale of
investment
securities, net
of tax 100 220 (1) 9 7
Add: Acquisition
related
expenses, net of
tax 9 95 42 350 251
Net income (loss)
Core $ 880 $ 730 $ 796 $ (65) $ 866
Average common
shares
outstanding 3,224,053 3,214,247 3,206,501 2,712,547 2,710,803
Core net income
(loss) per share$ 0.27 $ 0.23 $ 0.25 $ (0.02) $ 0.32
Tangible book
value:
Total
stockholders'
equity $ 44,161 $ 43,721 $ 42,978 $ 42,303 $ 36,720
Less: Goodwill 5,408 5,408 4,757 4,757 2,297
Less: Other
intangible
assets, net 1,497 1,593 1,425 1,501 1,175
Total tangible
stockholders'
equity $ 37,256 $ 36,720 $ 36,796 $ 36,045 $ 33,248
Common shares
outstanding 3,229,467 3,220,934 3,206,927 3,205,544 2,711,258
Tangible book
value per share $ 11.54 $ 11.40 $ 11.47 $ 11.24 $ 12.26
Core return on
average
stockholders'
equity:
Net income (loss)
GAAP $ 971 $ 855 $ 753 $ (406) $ 622
Adjustments:
Less: Gain (loss)
on sale of
investment
securities, net
of tax 100 220 (1) 9 7
Add: Acquisition
related
expenses, net of
tax 9 95 42 350 251
Net income (loss)
Core $ 880 $ 730 $ 795 $ (65) $ 866
Average
stockholders'
equity $ 44,232 $ 43,410 $ 42,835 $ 36,942 $ 36,558
Core return on
average
stockholders'
equity 7.91% 6.76% 7.47% (0.70%) 9.39%
Return on average
tangible equity:
Net income (loss)
GAAP $ 971 $ 855 $ 753 $ (406) $ 622
Average
stockholders'
equity $ 44,232 $ 43,410 $ 42,835 $ 36,942 $ 36,558
Less: average
intangibles 6,953 6,592 6,220 4,865 1,736
Average tangible
stockholders'
equity $ 37,279 $ 36,819 $ 36,615 $ 32,077 $ 34,822
Return on average
tangible
stockholders'
equity 10.36% 9.34% 8.27% (5.02%) 7.09%
Core return on
average tangible
stockholders'
equity:
Net income (loss)
GAAP $ 971 $ 855 $ 753 $ (406) $ 622
Adjustments:
Less: Gain (loss)
on sale of
investment
securities, net
of tax 100 220 (1) 9 7
Add: Acquisition
related
expenses, net of
tax 9 95 42 350 251
Net income (loss)
Core $ 880 $ 730 $ 796 $ (65) $ 866
Average
stockholders'
equity $ 44,232 $ 43,410 $ 42,835 $ 36,942 $ 36,558
Less: average
intangibles 6,953 6,592 6,220 4,865 1,736
Average tangible
stockholders'
equity $ 37,279 $ 36,819 $ 36,615 $ 32,077 $ 34,822
Core return on
average tangible
stockholders'
equity 9.39% 7.97% 8.74% (0.80%) 9.86%
Core return on
average assets:
Net income (loss)
GAAP $ 971 $ 855 $ 753 $ (406) $ 622
Adjustments:
Less: Gain (loss)
on sale of
investment
securities, net
of tax 100 220 (1) 9 7
Add: Acquisition
related
expenses, net of
tax 9 95 42 350 251
Net income (loss)
Core $ 880 $ 730 $ 796 $ (65) $ 866
Average assets $ 530,657 $ 533,331 $ 545,074 $ 458,493 $ 448,252
Core return on
average assets 0.66% 0.55% 0.59% (0.06%) 0.77%
Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
Sept 30 Sept 30
2016 2015
Nine months ended:
Core net income per share:
Net income (loss) GAAP $ 2,579 $ (348)
Adjustments:
Less: Gain (loss) on sale of investment
securities, net of tax 319 (20)
Add: Acquisition related expenses, net of tax 147 1,815
Net income Core $ 2,406 $ 1,487
Average common shares outstanding 3,214,967 2,709,887
Core net income per share $ 0.75 $ 0.55
