Riverview Financial Corporation Reports 2016 Earnings
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E-mailHARRISBURG, PA -- (Marketwired) -- 01/26/17 -- Riverview Financial Corporation ("Riverview") (OTCQX: RIVE), the financial holding company for Riverview Bank, today reported unaudited financial results at and for the year ended December 31, 2016. Riverview reported net income of $3.1 million or $0.95 per basic and diluted weighted average share for 2016, compared to a net loss of $754 thousand, or ($0.28) per basic and diluted weighted average share, for the comparable period of 2015. The 2015 results included per-tax merger related expenses of approximately $3.3 million from the acquisition of Citizens National Bank of Meyersdale ("Citizens") on December 31, 2015. Core net income for the year ended December 31, was $2.9 million, or $0.90 per share, in 2016 and $1.4 million, or $0.52 per share, in 2015. Core net income, a non-GAAP financial measure reconciled to net income in the tabular material that follows, excludes net gains (losses) on the sale of investment securities and acquisition related expenses, net of tax. Net gains on the sale of investment securities were $484 thousand in 2016. Net losses on the sale of investment securities totaled $17 thousand in 2015.
For the quarter ended December 31, net income was $488 thousand, or $0.15 per share, in 2016 compared to a net loss of $406 thousand, or ($0.15) per share, in 2015. Core net income for the fourth quarter was $488 thousand in 2016 compared to a core net loss of $65 thousand in 2015. The results for the three months ended December 31, 2015, included pretax merger expenses related to the acquisition of Citizens of approximately $530 thousand and net gains on the sale of investment securities of $13 thousand. Core net income per share for the fourth quarter was $0.15 in 2016, compared to a core net loss of ($0.02) in 2015.
"We are pleased to announce that core earnings in 2016 more than doubled those of 2015 adjusted for acquisition costs associated with 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. "On January 20, 2017, we successfully completed the closing of a $17 million capital offering. The primary objective of this issuance is to enhance shareholder value through elevating the level of asset generation by taking advantage of organic growth opportunities in new and existing markets. Most recently, we expanded our presence in Berks County through opening a full-service community banking office in Temple, Pennsylvania on January 11, 2017. This new office has a dedicated team of lenders and is expected to have a material impact on elevating loan growth and wealth management opportunities in the near term. We will continue to seek out expansion opportunities by taking advantage of disruptions caused by consolidation in the market," continued Fox. "In addition, 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
- For the fourth quarter of 2016, loans, net grew $11.2 million or 11.1% annualized.
- Nonperforming assets, excluding accruing restructured loans, decreased to $2.4 million at the end of the fourth quarter of 2016 from $2.6 million at the end of the third quarter 2016 and $4.2 million at December 31, 2015.
- Core net income increased $1.5 million or 103.6% comparing the years ended December 31, 2016 and 2015.
- Wealth management income increased 51.5% in the fourth quarter of 2016 versus the prior quarter.
INCOME STATEMENT REVIEW Tax-equivalent net interest income for the twelve months ended December 31, increased $3.0 million to $18.6 million in 2016 from $15.6 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 4 basis point increase in the tax-equivalent net interest margin. The tax-equivalent net interest margin for the year ended December 31, 2016, improved to 3.83% from 3.79% for the year ended December 31, 2015. The tax-equivalent yield on the loan portfolio increased to 4.53% in 2016 compared to 4.49% in 2015. Loans, net averaged $403.0 million in 2016 and $351.6 million in 2015. For the twelve months ended December 31, the tax-equivalent yield on total investments decreased to 3.36% in 2016 from 3.39% in 2015. Average investments totaled $72.3 million in 2016 and $49.9 million in 2015. Average interest-bearing liabilities increased to $414.9 million in 2016 from $349.2 million in 2015. The cost of funds declined to 0.52% in 2016 from 0.55% in 2015. Tax-equivalent net interest income for the three months ended December 31, increased to $4.6 million in 2016 from $4.1 million in 2015. The tax-equivalent net interest margin for the fourth quarter of 2016 was 3.76% compared to 3.88% for the same period last year.
The provision for loan losses totaled $453 thousand for the year ended December 31, 2016, compared to $1.5 million in 2015. The decrease in the provision for loan losses in 2016 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 $169 thousand was recognized for the quarter ended December 31, 2016 as compared with $1.0 million for the comparable period last year. The larger provision in the fourth quarter of 2015 was a result of writing down certain loans to two commercial customers.
For the year ended December 31, noninterest income totaled $3.4 million in 2016, an increase of $1.2 million from $2.2 million in 2015. Net gains on sale of investment securities were $484 thousand in 2016 compared to a net loss of $17 thousand in 2015. In addition, increases in service charges, fees and commissions, trust income, wealth management income, mortgage banking activities and life insurance investment income along with a decrease in losses on the sale of other real estate owned also helped to improve noninterest income. For the three months ended December 31, noninterest income totaled $844 thousand in 2016 and $469 thousand in 2015.
Noninterest expense decreased $688 thousand or 3.9%, to $17.1 million in 2016, from $17.8 million in 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. The increase in other expenses comparing 2016 and 2015 was a result of additional advertising and charitable contribution expenditures. For the fourth quarter, noninterest expense amounted to $4.5 million in 2016 and $4.2 million in 2015.
BALANCE SHEET REVIEW
Total assets, loans and deposits totaled $543.0 million, $409.3 million, and $452.6 million, respectively, at December 31, 2016. Loans, net decreased $502 thousand comparing the end of the 2016 to year end 2015. Total investments were $73.1 million at December 31, 2016, a decrease of $2.7 million from year-end 2015. Total deposits increased $4.2 million in 2016. Noninterest-bearing deposits increased $3.8 million, while interest-bearing deposits increased $392 thousand in 2016. For the fourth quarter of 2016, loans net grew $11.2 million or 11.1% annualized as a result of increases in commercial real estate and tax-exempt loans. Investments grew $742 thousand in the fourth quarter of 2016 as purchases of US Treasury securities more than offset changes in the fair market value of investment securities available-for-sale and investment repayments. Total deposits decreased $6.4 million in the quarter ended December 31, 2016, as a decrease in interest-bearing deposits of $9.0 million was partially offset by an increase in noninterest-bearing deposits of $2.6 million.
Stockholders' equity totaled $41.9 million or $12.95 per share at December 31, 2016, and $42.3 million or $13.20 per share at December 31, 2015. Stockholders' equity decreased $2.2 million in the fourth quarter of 2016 due primarily to the change in accumulated other comprehensive income from decreases in the value of investment securities available-for-sale as a result of an increase in general market rates. Total tangible stockholders' equity decreased to $35.1 million or $10.84 per share at December 31, 2016, compared to $37.3 million or $11.54 per share at September 30, 2016, and $36.0 million or $11.24 per share at year-end 2015. Dividends declared for the three and twelve months ended December 31, 2016 amounted to $0.14 per share and $0.55 per share, respectively. The dividend payout ratio was of 57.9% in 2016.
ASSET QUALITY REVIEW Nonperforming assets were $8.2 million or 2.0% of loans, net and foreclosed assets at December 31, 2016, an improvement from $8.6 million or 2.2% at September 30, 2016, and $10.8 million or 2.6% at December 31, 2015. Adjusting for accruing restructured loans, nonperforming assets were $2.4 million or 0.6% of loans, net and foreclosed assets at December 31, 2016, $2.6 million or 0.6% at September 30, 2016, and $4.2 million or 1.0% at December 31, 2015. The allowance for loan losses equaled $3.7 million or 0.91% of loans, net at December 30, 2016, compared to $3.6 million or 0.91% at September 30, 2016, and $4.4 million or 1.07% of loans, net, at December 31, 2015. Loans charged-off, net of recoveries, for the twelve months ended December 31, 2016, equaled $1.1 million or 0.27% of average loans, compared to $899 thousand or 0.26% of average loans for the twelve months ended December 31, 2015. For the fourth quarter, net loans charged-off totaled $74 thousand or 0.07% of average loans in 2016 and $651 thousand or 0.73% of average loans in 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 its Central Pennsylvania market area of Berks, Cumberland, Dauphin, Northumberland, Perry, Schuylkill Counties, as well as its Southwestern Pennsylvania market area of Bedford, Cambria, Somerset and Westmoreland Counties through sixteen community banking offices and three limited purpose offices. Each office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. 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 twelve months ended December 31, 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.
Summary Data
Riverview Financial Corporation
Five Quarter Trend
(In thousands, except per share data)
Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2016 2016 2016 2016 2015
Key performance data:
Per share data:
Net income (loss) $0.15 $0.30 $ 0.27 $ 0.23 ($ 0.15)
Core net income (loss)
(1) $0.15 $0.27 $ 0.23 $ 0.25 ($ 0.02)
Cash dividends declared $0.14 $0.14 $ 0.14 $ 0.14 $ 0.14
Book value $12.95 $13.67 $ 13.57 $ 13.40 $ 13.20
Tangible book value (1) $10.84 $11.54 $ 11.40 $ 11.47 $ 11.24
Market value:
High $11.78 $12.20 $ 12.10 $ 13.20 $ 13.40
Low $11.05 $11.00 $ 11.00 $ 11.00 $ 12.50
Closing $11.60 $11.40 $ 12.10 $ 11.10 $ 13.20
Market capitalization $37,559 $36,816 $ 38,973 $ 35,597 $ 42,313
Common shares outstanding 3,237,859 3,229,467 3,220,934 3,206,927 3,205,544
Selected ratios:
Return on average
stockholders' equity 4.50% 8.73% 7.92% 7.07% (4.36%)
Core return on average
stockholders' equity (1) 4.50% 7.86% 6.85% 7.45% (0.70%)
Return on average
tangible stockholders'
equity (1) 5.34% 10.36% 9.34% 8.25% (4.76%)
Core return on average
tangible stockholders'
equity (1) 5.34% 9.33% 8.07% 8.72% (0.76%)
Return on average assets 0.36% 0.73% 0.64% 0.56% (0.35%)
Core return on average
assets (1) 0.36% 0.66% 0.56% 0.59% (0.06%)
Stockholders' equity to
total assets 7.72% 8.38% 8.29% 7.95% 7.70%
Efficiency ratio (2) 81.73% 74.02% 79.53% 76.84% 91.65%
Nonperforming assets to
loans, net, and
foreclosed assets 1.99% 2.15% 2.35% 2.44% 2.63%
Net charge-offs to
average loans, net 0.07% 0.27% 0.74% 0.73%
Allowance for loan losses
to loans, net 0.91% 0.91% 0.91% 0.93% 1.07%
Earning assets yield
(FTE) (3) 4.19% 4.43% 4.22% 4.26% 4.30%
Cost of funds 0.51% 0.51% 0.54% 0.53% 0.50%
Net interest spread (FTE)
(3) 3.68% 3.92% 3.68% 3.73% 3.80%
Net interest margin (FTE)
(3) 3.76% 3.99% 3.75% 3.80% 3.88%
(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)
Twelve Months Ended Dec 31 Dec 31
2016 2015
Interest income:
Interest and fees on loans:
Taxable $17,565 $ 15,333
Tax-exempt 451 293
Interest and dividends on investment securities:
Taxable 1,931 959
Tax-exempt 326 476
Dividends 8 13
Interest on interest-bearing deposits in other banks 53 37
Interest on federal funds sold 2
Total interest income 20,336 17,111
Interest expense:
Interest on deposits 1,793 1,679
Interest on short-term borrowings 84 81
Interest on long-term debt 295 169
Total interest expense 2,172 1,929
Net interest income 18,164 15,182
Provision for loan losses 453 1,472
Net interest income after provision for loan
losses 17,711 13,710
Noninterest income:
Service charges, fees and commissions 1,278 1,021
Commissions and fees on fiduciary activities 118 85
Wealth management income 825 748
Mortgage banking income 597 403
Life insurance investment income 345 217
Net loss on sale of other real estate owned (206) (260)
Net gain (loss) on sale of investment securities
available-for-sale 484 (17)
Total noninterest income 3,441 2,197
Noninterest expense:
Salaries and employee benefits expense 9,261 10,000
Net occupancy and equipment expense 2,165 2,700
Amortization of intangible assets 340 259
Other expenses 5,357 4,852
Total noninterest expense 17,123 17,811
Income (loss) before income taxes 4,029 (1,904)
Provision for income tax expense (benefit) 962 (1,150)
Net income (loss) $3,067 ($ 754)
Other comprehensive income (loss):
Unrealized (gain) loss on investment securities
available-for-sale ($2,728) ($ 41)
Reclassification adjustment for (gain) loss included
in net income (484) 17
Change in pension liability 47 (344)
Income tax expense (benefit) related to other
comprehensive income (1,076) (125)
Other comprehensive income (loss), net of income
taxes (2,089) (243)
Comprehensive income (loss) $978 ($ 997)
Per share data:
Net income (loss):
Basic $0.95 ($0.28)
Diluted $0.95 ($0.28)
Average common shares outstanding:
Basic 3,219,339 2,710,558
Diluted 3,241,869 2,719,068
Cash dividends declared $0.55 $ 0.55
Riverview Financial Corporation
Consolidated Statements of Income
(In thousands, except per share data)
Three months ended Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2016 2016 2016 2016 2015
Interest income:
Interest and fees on
loans:
Taxable $4,203 $4,598 $ 4,337 $ 4,427 $ 3,937
Tax-exempt 190 87 88 86 83
Interest and dividends on
investment securities
available-for-sale:
Taxable 556 539 435 401 269
Tax-exempt 46 53 91 136 141
Dividends 1 4 3 4
Interest on interest-
bearing deposits in other
banks 12 13 13 15 10
Interest on federal funds
sold 1 1
Total interest income 5,007 5,291 4,969 5,069 4,444
Interest expense:
Interest on deposits 418 447 461 467 385
Interest on short-term
borrowings 25 3 13 43 33
Interest on long-term debt 81 77 82 55 36
Total interest expense 524 527 556 565 454
Net interest income 4,483 4,764 4,413 4,504 3,990
Provision for loan losses 169 29 156 99 1,022
Net interest income
after provision for
loan losses 4,314 4,735 4,257 4,405 2,968
Noninterest income:
Service charges, fees and
commissions 345 315 320 298 281
Commissions and fees on
fiduciary activities 30 34 35 19 20
Wealth management income 294 194 179 158 186
Mortgage banking income 196 210 109 82 87
Life insurance investment
income 69 118 76 82 50
Net gain (loss) on sale of
other real estate owned (90) (53) (69) 6 (168)
Net gain (loss) on sale of
investment securities
available-for-sale 152 334 (2) 13
Total noninterest
income 844 970 984 643 469
Noninterest expense:
Salaries and employee
benefits expense 2,650 2,334 2,126 2,151 2,364
Net occupancy and
equipment expense 548 538 526 553 565
Amortization of intangible
assets 93 95 76 76 63
Other expenses 1,255 1,313 1,448 1,341 1,252
Total noninterest
expense 4,546 4,280 4,176 4,121 4,244
Income (loss) before
income taxes 612 1,425 1,065 927 (807)
Income tax expense
(benefit) 124 454 210 174 (401)
Net income (loss) $488 $971 $ 855 $ 753 ($ 406)
Other comprehensive income
(loss):
Unrealized gain (loss) on
investment securities
available-for-sale ($3,668) ($ 148) $ 581 $ 507 $ 103
Reclassification
adjustment for (gain)
loss included in net
income (152) (334) 2 (13)
Change in pension
liability 47 (344)
Income tax expense
(benefit) related to
other comprehensive
income (loss) (1,231) (102) 84 173 (86)
Other comprehensive
income (loss), net of
income taxes (2,390) (198) 163 336 (168)
Comprehensive income
(loss) ($1,902) $ 773 $ 1,018 $ 1,089 ($ 574)
Per share data:
Net income (loss):
Basic $0.15 $0.30 $0.27 $0.23 ($0.15)
Diluted $0.15 $0.30 $ 0.27 $ 0.23 ($ 0.15)
Average common shares
outstanding:
Basic 3,232,359 3,224,053 3,214,248 3,206,501 2,712,547
Diluted 3,254,719 3,244,689 3,245,868 3,222,005 2,720,349
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 Dec 31 Sept 30 June 30 Mar 31 Dec 31
2016 2016 2016 2016 2015
Net interest income:
Interest income
Loans, net:
Taxable $4,203 $4,598 $4,337 $4,427 $3,937
Tax-exempt 288 132 133 130 126
Total loans, net 4,491 4,730 4,470 4,557 4,063
Investments:
Taxable 556 540 439 404 273
Tax-exempt 70 80 138 207 214
Total investments 626 620 577 611 487
Interest on interest-bearing
balances in other banks 12 13 13 15 10
Federal funds sold 1 1
Total interest income 5,129 5,363 5,061 5,184 4,560
Interest expense:
Deposits 418 447 461 467 385
Short-term borrowings 25 3 13 43 33
Long-term debt 81 77 82 55 36
Total interest expense 524 527 556 565 454
Net interest income $4,605 $4,836 $4,505 $4,619 $4,106
Loans, net:
Taxable 4.26% 4.71% 4.49% 4.52% 4.54%
Tax-exempt 9.15% 4.49% 4.31% 4.12% 4.43%
Total loans, net 4.42% 4.70% 4.49% 4.51% 4.53%
Investments:
Taxable 3.28% 3.30% 2.97% 3.02% 3.06%
Tax-exempt 4.82% 4.90% 4.54% 4.32% 4.42%
Total investments 3.40% 3.44% 3.24% 3.37% 3.54%
Interest-bearing balances
with banks 0.49% 0.55% 0.54% 0.67% 0.39%
Federal funds sold 0.43% 0.50%
Total earning assets 4.19% 4.43% 4.22% 4.26% 4.30%
Interest expense:
Deposits 0.43% 0.45% 0.47% 0.48% 0.48%
Short-term borrowings 0.65% 0.56% 0.55% 0.58% 0.39%
Long-term debt 2.88% 2.71% 2.90% 2.34% 1.88%
Total interest-bearing
liabilities 0.51% 0.51% 0.54% 0.53% 0.50%
Net interest spread 3.68% 3.92% 3.68% 3.73% 3.80%
Net interest margin 3.76% 3.99% 3.75% 3.80% 3.88%
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
At period end 2016 2016 2016 2016 2015
Assets:
Cash and due from
banks $7,783 $7,066 $ 6,193 $ 13,145 $ 14,679
Interest-bearing
balances in other
banks 11,337 9,051 8,606 12,194 8,009
Investment securities
available-for-sale 73,113 72,371 74,253 73,317 75,850
Loans held for sale 652 820 318 594 1,094
Loans, net 409,343 398,193 398,493 401,482 409,845
Less: allowance for
loan losses 3,732 3,637 3,609 3,717 4,365
Net loans 405,611 394,556 394,884 397,765 405,480
Premises and
equipment, net 12,201 12,287 12,236 12,349 12,373
Accrued interest
receivable 1,726 1,701 1,586 1,610 1,594
Goodwill 5,408 5,408 5,408 4,757 4,757
Other intangible
assets, net 1,405 1,497 1,593 1,425 1,501
Other assets 23,812 22,321 22,236 23,759 24,112
Total assets $543,048 $527,078 $ 527,313 $ 540,915 $ 549,449
Liabilities:
Deposits:
Noninterest-bearing $73,932 $71,329 $ 70,230 $ 69,935 $ 70,106
Interest-bearing 378,628 387,664 391,217 385,569 378,236
Total deposits 452,560 458,993 461,447 455,504 448,342
Short-term borrowings 31,500 6,000 4,069 25,000 42,575
Long-term debt 11,154 11,257 11,335 11,400 9,350
Accrued interest
payable 192 220 221 267 236
Other liabilities 5,722 6,447 6,520 5,766 6,643
Total liabilities 501,128 482,917 483,592 497,937 507,146
Stockholders' equity:
Common stock 22,077 22,077 22,077 22,077 22,077
Capital surplus 7,195 7,089 6,979 6,812 6,784
Retained earnings 14,845 14,802 14,274 13,861 13,550
Accumulated other
comprehensive income
(loss) (2,197) 193 391 228 (108)
Total
stockholders'
equity 41,920 44,161 43,721 42,978 42,303
Total liabilities
and
stockholders'
equity $543,048 $527,078 $ 527,313 $ 540,915 $ 549,449
Riverview Financial Corporation
Consolidated Balance Sheets
(In thousands except per share data)
Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
Average quarterly
balances 2016 2016 2016 2016 2015
Assets:
Loans, net:
Taxable $392,085 $388,752 $ 388,062 $ 393,778 $ 344,201
Tax-exempt 12,510 11,675 12,446 12,714 11,272
Total loans, net 404,595 400,427 400,508 406,492 355,473
Investments:
Taxable 67,423 65,126 59,354 53,747 35,365
Tax-exempt 5,750 6,524 12,203 19,244 19,196
Total investments 73,173 71,650 71,557 72,991 54,561
Interest-bearing balances
with banks 9,716 9,371 9,673 8,998 10,219
Federal funds sold 31 199 926 808 15
Total earning assets 487,515 481,647 482,664 489,289 420,268
Other assets 45,300 49,010 50,667 55,785 38,225
Total assets $532,815 $530,657 $ 533,331 $ 545,074 $ 458,493
Liabilities and
stockholders' equity:
Deposits:
Interest-bearing $384,278 $395,272 $ 392,343 $ 388,317 $ 317,374
Noninterest-bearing 72,227 70,956 70,342 68,274 57,101
Total deposits 456,505 466,228 462,685 456,591 374,475
Short-term borrowings 15,213 2,114 9,451 29,593 33,517
Long-term debt 11,203 11,284 11,360 9,440 7,589
Other liabilities 6,709 6,799 6,425 6,615 5,970
Total liabilities 489,630 486,425 489,921 502,239 421,551
Stockholders' equity 43,185 44,232 43,410 42,835 36,942
Total liabilities and
stockholders' equity $532,815 $530,657 $ 533,331 $ 545,074 $ 458,493
Riverview Financial Corporation
Asset Quality Data
(In thousands)
Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
2016 2016 2016 2016 2015
At quarter end:
Nonperforming assets:
Nonaccrual loans $1,386 $1,463 $ 1,575 $ 1,949 $ 3,182
Accruing restructured
loans 5,805 6,017 6,600 6,626 6,666
Accruing loans past due
90 days or more 359 133 349 199 89
Foreclosed assets 625 988 842 1,043 885
Total nonperforming assets $8,175 $8,601 $9,366 $9,817 $10,822
Three months ended:
Allowance for loan losses:
Beginning balance $ 3,637 $ 3,609 $ 3,717 $ 4,365 $ 3,994
Charge-offs 78 35 303 758 652
Recoveries 4 34 39 11 1
Provision for loan losses 169 29 156 99 1,022
Ending balance $3,732 $3,637 $ 3,609 $ 3,717 $ 4,365
Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
Dec 31 Sept 30 Jun 30 Mar 30 Dec 31
2016 2016 2016 2016 2015
Three months ended:
Core net income (loss)
per share:
Net income (loss) GAAP $488 $971 $855 $753 ($406)
Adjustments:
Less: Gain (loss) on sale
of investment
securities, net of tax 100 220 (1) 9
Add: Acquisition related
expenses, net of tax 3 104 42 350
Net income (loss) Core $488 $874 $739 $796 ($65)
Average common shares
outstanding 3,232,359 3,224,053 3,214,248 3,206,501 2,712,547
Core net income (loss)
per share $0.15 $0.27 $0.23 $0.25 ($0.02)
Tangible book value:
Total stockholders'
equity $41,920 $44,161 $43,721 $42,978 $42,303
Less: Goodwill 5,408 5,408 5,408 4,757 4,757
Less: Other intangible
assets, net 1,405 1,497 1,593 1,425 1,501
Total tangible
stockholders' equity $35,107 $37,256 $36,720 $36,796 $36,045
Common shares outstanding 3,237,859 3,229,467 3,220,934 3,206,927 3,205,544
Tangible book value per
share $10.84 $11.54 $11.40 $11.47 $11.24
Core return on average
stockholders' equity:
Net income (loss) GAAP $488 $971 $855 $753 ($406)
Adjustments:
Less: Gain (loss) on sale
of investment
securities, net of tax 100 220 (1) 9
Add: Acquisition related
expenses, net of tax 3 104 42 350
Net income (loss) Core $488 $874 $739 $796 ($65)
Average stockholders'
equity $43,185 $44,232 $43,410 $42,835 $36,942
Core return on average
stockholders' equity 4.50% 7.86% 6.85% 7.45% (0.70%)
Return on average
tangible equity:
Net income (loss) GAAP $488 $971 $855 $753 ($406)
Average stockholders'
equity $43,185 $44,232 $43,410 $42,835 $36,942
Less: average intangibles 6,859 6,953 6,591 6,220 3,129
Average tangible
stockholders' equity $36,326 $37,279 $36,819 $36,615 $33,813
Return on average
tangible stockholders'
equity 5.34% 10.36% 9.34% 8.25% (4.76%)
Core return on average
tangible stockholders'
equity:
Net income (loss) GAAP $488 $971 $855 $753 ($406)
Adjustments:
Less: Gain (loss) on sale
of investment
securities, net of tax 100 220 (1) 9
Add: Acquisition related
expenses, net of tax 3 104 42 350
Net income (loss) Core $488 $874 $739 $796 ($65)
Average stockholders'
equity $43,185 $44,232 $43,410 $42,835 $36,942
Less: average intangibles 6,859 6,953 6,591 6,220 3,129
Average tangible
stockholders' equity $36,326 $37,279 $36,819 $36,615 $33,813
Core return on average
tangible stockholders'
equity 5.34% 9.33% 8.07% 8.72% (0.76%)
Core return on average
assets:
Net income (loss) GAAP $488 $971 $855 $753 ($406)
Adjustments:
Less: Gain (loss) on sale
of investment
securities, net of tax 100 220 (1) 9
Add: Acquisition related
expenses, net of tax 3 104 42 350
Net income (loss) Core $488 $874 $7391 $796 ($65)
Average assets $532,815 $530,657 $533,331 $545,074 $458,493
Core return on average
assets 0.36% 0.66% 0.56% 0.59% (0.06%)
Riverview Financial Corporation
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data)
Dec 31 Dec 31
2016 2015
Twelve months ended:
Core net income per share:
Net income (loss) GAAP $3,067 ($ 754)
Adjustments:
Less: Gain (loss) on sale of investment securities, net
of tax 319 (11)
Add: Acquisition related expenses, net of tax 148 2,165
Net income Core $2,896 $1,422
Average common shares outstanding 3,219,339 2,711,558
Core net income per share $0.90 $ 0.52
Source: Riverview Financial Corporation
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