HARRISBURG, Pa., Oct. 26, 2020 /PRNewswire/ -- Riverview Financial
Corporation (the "Company" or "Riverview") (NASDAQ: RIVE), the holding
company for Riverview Bank (the "Bank"), today reported net income
of $695 thousand, or $0.08 per basic and diluted weighted average
common share, for the third quarter of 2020, compared to net
income of $2.3 million, or
$0.25 per basic and diluted weighted
average common share, for the third quarter of 2019. For the
nine months ended September 30, 2020,
Riverview reported a net loss of
$22.8 million, or $(2.46) per basic and diluted weighted average
common share, compared to net income of $3.0
million, or $0.33 per basic
and diluted weighted average common share, for the same period last
year.
The decrease in the Company's earnings for the three months
ended September 30, 2020 as compared
to the same period in 2019 was the result of an increase in the
provision for loan losses coupled with the recognition of severance
and furlough expenses and nonrecurring occupancy expenses. The loan
loss provision increased $795
thousand comparing the three months ended September 30, 2020 and 2019. In addition,
the Company recognized $579 thousand
in costs associated with severance and furlough expenses related to
the implementation of a cost reduction strategy aimed at
substantially lowering operating costs. Also impacting third
quarter 2020 results was the recognition of write downs of fair
values on certain held for sale properties and the acceleration of
lease payments on a closed office totaling $469 thousand.
The decrease in the Company's earnings for the nine months ended
September 30, 2020 as compared to the
same period in 2019 was primarily the result of a non-cash charge
related to the recognition of goodwill impairment and an increase
in the provision for loan losses, both stemming from the COVID-19
pandemic. The goodwill impairment of $24.8
million had no impact on tangible book value, regulatory
capital ratios, liquidity or the Company's cash balances. For the
nine months ended September 30, 2020,
the provision for loan losses totaled $5.7
million compared to $2.3
million for the comparable period in 2019. The increase in
the year over year provision for loan losses is the combined result
of year to date 2020 organic loan growth, excluding 100% SBA
guaranteed Payroll Protection Loans, and changes in qualitative
factors used in our ALLL model, accounting for increased economic
risks and the direct impact on our customers resulting from the
COVID-19 pandemic as of September 30,
2020. As the Company continues to evaluate the impact of the
COVID-19 pandemic on our overall financial performance and
operations, including its effects on our loan portfolio, our
provision for loan losses may increase in future periods, which
could adversely affect our results of operations. The
Company's earnings were further impacted as a result of a
$2.3 million reduction of net
accretion on acquired assets and assumed liabilities during the
nine months ended September 30,
2020, as compared to the same period last year.
The impact of these reductions was offset by the recognition of
an $815 thousand net gain on the sale
of investment securities in order to provide liquidity to fund loan
demand and limit exposure to falling rates through the disposition
of adjustable rate securities. The Company also recognized
interest and fees on origination of loans pursuant to the Paycheck
Protection Program ("PPP") of $2.8
million during the nine months ended September 30, 2020. The results for the nine
months ended September 30, 2019
included the first quarter recognition of $2.2 million in nonrecurring executive separation
expenses along with the $456 thousand
in severance charges recorded in the second quarter of
2019.
As mentioned in prior earnings releases, as well as herein, the
Company began implemented cost reduction strategies beginning in
2019, and those efforts continued subsequent to the end of the
second quarter of 2020 by implementing additional efficiency
initiatives aimed at substantially lowering operating costs. This
action implemented on September 1,
2020 is expected to lower salaries and benefits expense by
$3.4 million annually on a pre-tax
basis. In concert with our earlier announcement that we have
suspended dividend payments until further notice, additional
measures were taken to further strengthen the safety and soundness
of the Bank's capital position, support future growth, and
potentially take advantage of potential strategic opportunities
focused upon enhancing shareholder value, the Company completed a
private placement of $25 million of
5.75% Fixed to Floating Rate Subordinated Notes, due 2030 to
certain qualified institutional buyers and accredited investors
subsequent to the end of the third quarter 2020.
In addition to evaluating its results of operations in
accordance with accounting principles generally accepted in
the United States of America
("GAAP"), Riverview routinely
supplements its evaluation with an analysis of certain non-GAAP
financial measures, such as tangible book value per share and
return on average tangible stockholders' equity. Riverview believes these non-GAAP financial
measures provide information useful to investors in understanding
its operating performance and trends. Where non-GAAP disclosures
are used in this press release, a reconciliation to the comparable
GAAP measures is provided in the accompanying tables. The non-GAAP
financial measures Riverview uses
may differ from the non-GAAP financial measures other financial
institutions use to measure their results of operations.
HIGHLIGHTS
- As part of ongoing efficiency initiatives, management
implemented additional cost reduction strategies, primarily
becoming effective beginning September 1,
2020, including the reduction of salaries and benefits
expense by $3.4 million
annually.
- As of September 30, 2020, we
granted loan payment deferrals of $6.5
million to consumer and commercial loan customers for 209
loans with outstanding balances totaling $137 million, or 11.8%, of total loans.
Comparatively, at June 30, 2020, we
granted loan payment deferrals of $9.1
million to consumer and commercial loan customers for 501
loans with outstanding balances totaling $256.4 million, or 22.0%, of total loans.
- Interest and fees recognized on the origination of $273.8 million of PPP loans totaled $2.8 million in the nine months ended
September 30, 2020.
- Remaining accrued and unearned Small Business Administration
PPP origination fees total $6.0
million at September 30,
2020.
- Tangible stockholders' equity to tangible assets, excluding PPP
loans, was 8.62% at September 30,
2020.
- Total interest-bearing fund costs declined to 0.56% for the
third quarter 2020 compared to 0.67% for the prior quarter and
0.99% for the same quarter 2019.
- The allowance for loan losses increased $4.5 million to $11.6
million, or 1.30% of loans, net, excluding 100% SBA
guaranteed PPP loan balances, at September
30, 2020 from $7.1 million or
0.80% of loans, net at September 30,
2019,
- Net charge-offs to average loans, net improved to (0.02)% in
the third quarter of 2020 as compared to 0.20% in the second
quarter of 2020 and 0.43% in the third quarter of 2019.
Brett D. Fulk, President and
Chief Executive Officer, commented "while the ultimate impact of
the Corona virus pandemic upon our customers remains largely
unknown at this time, we have taken the necessary steps to bolster
capital, increase our loan loss reserves, monitor credit quality,
and proactively manage higher risk credit relationships. Given the
aforementioned efforts I have a high degree of confidence that we
will successfully manage our way through the current economic
challenges we face. Furthermore, continuing improvement in our core
pre-allowance for loan losses and pre-tax expenses demonstrates
that our efficiency initiatives are generating the desired
results." Fulk went on to say "while reported earnings for 2020
will continue to be negatively impacted by the goodwill impairment
expense taken in the second quarter of this year, I am extremely
pleased that our team's efforts are positioning Riverview for a bright future. While
optimistic about the impact all our efforts are producing, I
realize my optimism must remain tempered by the current pandemic
and the remaining economic uncertainties faced by our economy and
our industry. Therefore, our short-term goals shall remain focused
on credit quality, managing our way through this current pandemic
environment, and expense management."
INCOME STATEMENT REVIEW
Tax-equivalent net interest income for the three months ended
September 30, decreased to
$10.5 million in 2020 from
$11.4 million in 2019. The decrease
in tax-equivalent net interest income was primarily attributable to
a decline in the tax-equivalent loan yield and the realization of
lower levels of loan accretion from purchase accounting marks
established from previous M&A activity. The tax-equivalent net
interest margin for the three months ended September 30, 2020, decreased to 3.26% from 4.46%
for the comparable period of 2019. The tax-equivalent net interest
margin, excluding income and fees earned on PPP loans, would have
been 3.41% in the third quarter of 2020. The tax-equivalent yield
on the loan portfolio decreased to 3.94% in the third quarter of
2020 compared to 5.67% in third quarter of 2019. The actions taken
by the Federal Open Market Committee in March 2020 to reduce its target federal funds
rate by 150 basis points impacted the loan portfolio yield as it
had a corresponding adverse effect on our floating and adjustable
rate loans. Also influencing the decline was recognizing the lower
yield earned on the addition of PPP loans. The yield earned on PPP
loans from interest and fees was 2.41% for the nine months ended
September 30, 2020. Investments yielded 2.33% on a
tax-equivalent basis in the third quarter of 2020 compared to 2.96%
for the same period last year. For the three months ended
September 30, the cost of deposits
decreased 43 basis points to 0.56% in 2020 from 0.99% in 2019.
Loans, net averaged $1.2 billion in
the third quarter of 2020 and $882.6
million in the third quarter of 2019. Average investments
totaled $76.9 million in 2020 and
$93.0 million in 2019. Average
interest-bearing liabilities increased to $1.1 billion in 2020 from $817.4 million in 2019.
For the nine months ended September
30, tax-equivalent net interest income declined $2.8 million to $29.1
million in 2020 from $31.9
million in 2019. The decrease was attributable to a
reduction in the net interest margin which more than offset the
increase in average earning assets. For the nine months ended
September 30, tax-equivalent net
interest margin was 3.37% in 2020 compared to 4.18% in 2019. The
tax-equivalent net interest margin excluding purchase accounting
and income and fees earned on PPP loans would have been 3.45% for
the nine months ended September 30,
2020. The tax-equivalent yield on the loan portfolio
decreased to 4.18% in the nine months ended September 30, 2020 compared to 5.37% for the same
period in 2019. For the nine months ended September 30, investments yielded 2.69% on a
tax-equivalent basis in 2020 compared to 3.06% for the same period
last year. The cost of deposits decreased 29 basis points to 0.71%
in the nine months ended September 30,
2020 from 1.00% for the same period in 2019. The cost of
interest-bearing liabilities decreased to 0.71% in 2020 from 1.06%
in 2019. Comparing the nine months ended September 30, 2020 and 2019, average earning
assets increased $130.5 million which
outpaced the $124.4 million increase
in average interest-bearing liabilities. Loans averaged
$153.4 million higher while
investments averaged $25.9 million
lower comparing the nine months ended September 30, 2020 and 2019. With respect to the
growth in interest-bearing liabilities, deposits averaged
$3.9 million more in 2020 compared to
last year while average borrowing grew by more than $120.5 million comparing the two periods.
The provision for loan losses totaled $1.8 million for the quarter ended September 30, 2020, compared to $1.0 million for the same period in 2019. The
provision for loan losses totaled $5.7
million for the nine months ended September 30, 2020, compared to $2.3 million for the same period in 2019. The
increase in the provision for loan losses was the combined result
of organic loan growth, excluding PPP loan balances outstanding,
and changes in qualitative factors related to the allowance for
loan losses reserve associated with increasing risks within the
economy and our credit portfolio due to the effects of COVID-19, as
of September 30, 2020.
For the quarter ended September
30, noninterest income totaled $2.2
million in 2020 versus $2.0
million in 2019. The increase was primarily attributable to
a $250 thousand increase in mortgage
banking income due to an increase in refinancing activity
brought on by the reduction in mortgage interest rates. Service
charges, fees and commissions decreased $30
thousand while trust and wealth management income declined
$68 thousand and $6 thousand, respectively, comparing the third
quarters of 2020 and 2019.
For the nine months ended September
30, noninterest income increased by $1.2 million to $7.1
million in 2020 from $5.9
million in 2019. The primary contributors to the overall
increase were $815 thousand in gains
on the sale of investment securities and the recognition of higher
comparable mortgage banking income of $543
thousand. Offsetting the increases were reductions in trust
commissions and fees and wealth management income of $186 thousand and $73
thousand, respectively, comparing the nine months ended
September 30, 2020 and 2019, which is
partially driven by the impact the Corona virus pandemic has had
upon equity market valuations during 2020 compared to market
valuations throughout 2019. Additionally, we experienced
reductions in overdraft fee income, ATM income, and reduced late
charge fee income as we proactively worked with customers and
noncustomers alike in an effort to minimize the financial impact of
Covid-19 within the communities we serve.
Noninterest expense increased to $10.0
million for the three months ended September 30, 2020, from $9.4 million for the same period last year. The
overall increase was primarily due to an increase of $179 thousand in salaries and employee benefit
expenses due to nonrecurring severance and furlough costs, as well
as a one-time charge of $387
thousand in net occupancy and equipment expense resulting
from the closure of an office during 2019 that we have now
determined to be a permanent closure. Other expenses decreased
$61 thousand comparing the third
quarters of 2020 and 2019 due to implementing efficiency
initiatives and selective expense reductions made during the
COVID-19 shutdowns within our market footprint.
For the nine months ended September
30, noninterest expense increased to $53.1 million in 2020 compared to $31.9 million for the same period in 2019.
Excluding the second quarter, nonrecurring goodwill impairment
charge, noninterest expense would have decreased by $3.5 million, or 11.0%, in the nine months ended
2020 as compared to the same period in 2019.
BALANCE SHEET REVIEW
Total assets, loans, net, and deposits totaled $1.4 billion, $1.2
billion, and $1.0
billion, respectively, at September 30, 2020. For the nine months
ended September 30, 2020, total
assets, loans and deposits increased $276.8
million, $311.3 million and
$90.8 million, respectively. Business
lending, including commercial and commercial real estate loans,
increased $315.7 million due
primarily to the addition of $273.8
million in PPP loans and originations in new and existing
markets in the nine months of 2020. For this same period,
construction lending increased $2.5
million while retail lending, which includes nonconforming
residential mortgage, home equity and consumer loans, decreased
$6.9 million. Total investments
increased to $98.8 million at
September 30, 2020, compared to $91.2
million at December 31, 2019
as security purchases more than offset payments and prepayments.
The increase in total deposits consisted of increases in
noninterest-bearing deposits of $30.8
million and interest-bearing deposits of $60.0 million. As a percentage of total deposits,
noninterest-bearing deposits amounted to 17.3% at September 30, 2020 and 15.7% at December 31, 2019. Long term debt increased
$210.1 million primarily through the
use of the Federal Reserve's PPPLF program, intended to
provide low cost funding options to entities issuing PPP
loans. For the third quarter ended September
30, 2020, total assets and deposits increased $10.0 million and $8.2
million, respectively, while loans, net, decreased
$2.0 million.
Stockholders' equity totaled $95.4 million, or
$10.28 per share, at
September 30, 2020, $118.1 million, or $12.81 per share, at December 31, 2019, and $117.3 million, or $12.77 per share, at September 30, 2019. The decrease in stockholders'
equity for the nine months ended September
30, 2020 was due to the goodwill impairment charge
taken at the end of the second quarter of 2020. Tangible
stockholders' equity per common share increased to
$10.04 at September 30, 2020, compared to $9.75 at September
30, 2019.
ASSET QUALITY REVIEW
Nonperforming assets were $13.0
million, or 1.12% of loans, net, and
foreclosed assets at September 30,
2020, $13.4 million or 1.15%
at June 30, 2020, and $5.1 million or 0.60% at December 31, 2019. Accruing Troubled debt
restructured ("TDR") loans increased $7.0
million from year end 2019 to $9.6
million at the end of the third quarter of 2020. In
March 2020, a joint statement was
issued by federal and state regulatory agencies to clarify that
short-term loan modifications are not TDRs if made on a good-faith
basis in response to COVID-19 to borrowers who were current prior
to the implementation of our deferral programs. The Company
reevaluates these credits granted deferrals under this guidance
each quarter under its existing TDR framework, and where such a
loan modification would meet traditional TDR concession definitions
, the loan will be accounted for as a TDR. Adjusting for accruing
restructured loans, nonperforming assets were $3.4 million, or 0.29% of loans, net and
foreclosed assets at September 30,
2020, and $2.4 million, or 0.28%, at December 31, 2019. The allowance for loan
losses balance equaled $11.6 million, or 1.0%, of loans,
net, 1.30% excluding 100% SBA guaranteed PPP loan balances
outstanding, at September 30, 2020,
compared to $7.5 million, or 0.88%,
at December 31, 2019. The
coverage ratio, the allowance for loan losses as a percentage of
nonperforming assets, was 89.4% at September
30, 2020 and 148.0% at December 31,
2019. Excluding accruing restructured loans, the coverage
ratio would be 346.2% at September 30,
2020. Loans charged-off, net of recoveries, equaled
$1.5 million for the nine
months ended September 30, 2020
and 2019.
Riverview Financial Corporation is the parent company of
Riverview Bank. An independent community bank, Riverview Bank
serves the Pennsylvania market
areas of Berks, Blair, Bucks,
Centre, Clearfield, Cumberland, Dauphin, Huntingdon, Lebanon, Lehigh, Lycoming, Perry, Schuylkill and Somerset Counties through 27 community banking
offices and 3 limited purpose offices. Each office, interdependent
with the community, offers a comprehensive array of financial
products and services to individuals, businesses, not-for-profit
organizations and government entities. Riverview's business philosophy includes
offering direct access to senior management and other officers and
providing friendly, informed and courteous service, local and
timely decision making, flexible and reasonable operating
procedures and consistently applied credit policies. The Company's
common stock trades on the NASDAQ Global Market under the symbol
"RIVE". The Investor Relations site can be accessed at
https://www.riverviewbankpa.com/.
Safe Harbor Forward-Looking Statements:
We make statements in this press release, and we may from time
to time make other statements regarding our outlook or expectations
for future financial or operating results and/or other matters
regarding or affecting Riverview Financial Corporation, Riverview
Bank, and its subsidiaries (collectively, "Riverview") that may be considered
"forward-looking statements" as defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking
statements may be identified by the use of such words as "believe,"
"expect," "anticipate," "should," "planned," "estimated," "intend"
and "potential." For these statements, Riverview claims the protection of the
statutory safe harbors for forward-looking statements.
Riverview cautions you that a
number of important factors could cause actual results to differ
materially from those currently anticipated in any forward-looking
statement. Such factors include, but are not limited to: prevailing
economic and political conditions, particularly in our market area;
credit risk associated with our lending activities; changes in
interest rates, loan demand, real estate values and competition;
changes in accounting principles, policies, and guidelines; changes
in any applicable law, rule, regulation or practice with respect to
tax or legal issues; and other economic, competitive, governmental,
regulatory and technological factors affecting Riverview's operations, pricing, products
and services and other factors that may be described in
Riverview's 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. Most
recently in December 2019, a novel
strain of coronavirus surfaced in Wuhan,
China, and spread around the world, with resulting business
and social disruption. The coronavirus was declared a Public
Health Emergency of International Concern by the World Health
Organization on January 30,
2020. The risk factors associated with this event could have a
material adverse effect on significant estimates, operations and
business results of Riverview.
Significant estimates as disclosed in Riverview's Forms 10-K and 10-Q include
allowance for loan losses, fair value of financial instruments, the
valuation of real estate acquired in connection with foreclosures
or in satisfaction of loan, determination of other-than-temporary
impairment losses on securities, impairment of goodwill and
intangible assets.
Furthermore, the COVID-19 pandemic is having an adverse impact
on the Company, its customers and the communities it serves. Given
its ongoing and dynamic nature, it is difficult to predict the full
impact of the COVID-19 outbreak on the Company's business. The
extent of such impact will depend on future developments, which are
highly uncertain, including when the coronavirus can be controlled
and abated and when and how the economy may be reopened. As the
result of the COVID-19 pandemic and the related adverse local and
national economic consequences, the Company could be subject to any
of the following risks, any of which could have a material, adverse
effect on the Company's business, financial condition, liquidity,
and results of operations: the demand for Bank's products and
services may decline, making it difficult to grow assets and
income; if the economy is unable to substantially reopen, and high
levels of unemployment continue for an extended period of time,
loan delinquencies, problem assets, and foreclosures may increase,
resulting in increased charges and reduced income; collateral for
loans, especially real estate, may decline in value, which could
cause loan losses to increase; the Company's allowance for loan
losses may increase if borrowers experience financial difficulties,
which will adversely affect the Company's net income; the net worth
and liquidity of loan guarantors may decline, impairing their
ability to honor commitments to the Company; as the result of the
decline in the Federal Reserve Board's target federal funds rate to
near 0%, the yield on the Company's assets may decline to a greater
extent than the decline in the Company's cost of interest-bearing
liabilities, reducing the Company's net interest margin and spread
and reducing net income; the Company's wealth management revenues
may decline with continuing market turmoil; and the Company's
cybersecurity risks are increased as the result of an increase in
the number of employees working remotely.
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
a regulated financial institution, our pursuit of attractive
acquisition and business combination opportunities could be
negatively impacted by regulatory delays or other regulatory
issues. Regulatory and/or legal issues related to the
preacquisition operations of an acquired or combined business may
cause reputational harm to Riverview following the acquisition or
combination, and integration of the acquired or combined business
with ours may result in additional future costs arising as a result
of those issues.
The forward-looking statements are made as of the date of this
release, and, except as may be required by applicable law or
regulation, Riverview assumes no
obligation to update the forward-looking statements or to update
the reasons why actual results could differ from those projected in
the forward-looking statements.
In addition to evaluating its results of operations in
accordance with accounting principles generally accepted in
the United States of America
("GAAP"), Riverview routinely
presents and supplements its evaluation with an analysis of certain
non-GAAP financial measures, such as tangible stockholders' equity
and Core net income ratios. The reported results for the three
and nine months ended September 30, 2020 and 2019,
contain items which Riverview
considers non-core, namely net gains on sales of investment
securities available-for-sale, acquisition related
expenses and the adjustment to tax expense due to the
enactment of the Tax Act. 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)
|
|
|
|
|
|
|
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
|
2020
|
2020
|
2020
|
2019
|
2019
|
Key performance
data:
|
|
|
|
|
|
Per common share
data:
|
|
|
|
|
|
Net income
(loss)
|
$
0.08
|
$(2.61)
|
$
0.07
|
$
0.14
|
$
0.25
|
Core net income
(1)
|
$
0.07
|
$
0.05
|
$
0.00
|
$
0.13
|
$
0.25
|
Cash dividends
declared
|
$
0.00
|
$
0.08
|
$
0.08
|
$
0.08
|
$
0.08
|
Book value
|
$ 10.28
|
$10.20
|
$12.82
|
$12.81
|
$12.77
|
Tangible book value
(1)
|
$ 10.04
|
$
9.94
|
$
9.87
|
$
9.83
|
$
9.75
|
Market
value:
|
|
|
|
|
|
High
|
$
7.77
|
$
7.60
|
$13.60
|
$12.50
|
$11.68
|
Low
|
$
5.25
|
$
4.13
|
$
5.25
|
$
11.10
|
$
9.90
|
Closing
|
$
6.76
|
$
5.38
|
$
6.47
|
$
12.49
|
$
11.68
|
Market
capitalization
|
$62,729
|
$49,839
|
$59,757
|
$115,116
|
$107,252
|
Common shares
outstanding
|
9,279,503
|
9,263,697
|
9,236,039
|
9,216,616
|
9,182,565
|
|
|
|
|
|
|
Selected
ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
stockholders' equity
|
2.88%
|
(81.21)%
|
2.14%
|
4.28%
|
7.62%
|
|
|
|
|
|
|
Core return on
average stockholders' equity (1)
|
2.88%
|
1.55%
|
(0.04)%
|
4.09%
|
7.76%
|
|
|
|
|
|
|
Return on average
tangible stockholders' equity (1)
|
2.95%
|
(104.88)%
|
2.77%
|
5.59%
|
9.97%
|
|
|
|
|
|
|
Core return on
average tangible stockholders' equity (1)
|
2.95%
|
2.00%
|
(0.05)%
|
5.33%
|
10.16%
|
|
|
|
|
|
|
Tangible
stockholders' equity to tangible assets (1)
|
6.88%
|
6.85%
|
8.36%
|
8.61%
|
8.28%
|
|
|
|
|
|
|
Return on average
assets
|
0.20%
|
(7.50)%
|
0.23%
|
0.46%
|
0.81%
|
|
|
|
|
|
|
Core return on
average assets (1)
|
0.20%
|
0.14%
|
0.00%
|
0.44%
|
0.82%
|
|
|
|
|
|
|
Stockholders' equity
to total assets
|
7.03%
|
7.01%
|
10.60%
|
10.94%
|
10.57%
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
77.46%
|
76.84%
|
82.49%
|
84.24%
|
69.11%
|
|
|
|
|
|
|
Nonperforming assets
to loans, net, and foreclosed assets
|
1.12%
|
1.15%
|
0.65%
|
0.60%
|
0.66%
|
|
|
|
|
|
|
Net charge-offs to
average loans, net
|
(0.02)%
|
0.20%
|
0.49%
|
(0.12)%
|
0.43%
|
|
|
|
|
|
|
Allowance for loan
losses to loans, net
|
1.00%
|
0.84%
|
0.93%
|
0.88%
|
0.80%
|
|
|
|
|
|
|
Earning assets yield
(FTE) (3)
|
3.73%
|
3.85%
|
4.39%
|
4.54%
|
5.31%
|
|
|
|
|
|
|
Cost of
funds
|
0.56%
|
0.67%
|
0.95%
|
0.99%
|
1.05%
|
|
|
|
|
|
|
Net interest spread
(FTE) (3)
|
3.17%
|
3.18%
|
3.44%
|
3.55%
|
4.26%
|
|
|
|
|
|
|
Net interest margin
(FTE) (3)
|
3.26%
|
3.29%
|
3.60%
|
3.74%
|
4.46%
|
|
|
(1)
|
See Reconciliation of
Non-GAAP financial measures.
|
(2)
|
Total noninterest
expense less amortization of intangible assets and goodwill
impairment charge 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.
|
|
Riverview Financial
Corporation
|
|
|
Consolidated
Statements of Income (Loss)
|
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
Sep 30
|
|
Sep 30
|
|
|
|
2020
|
|
2019
|
|
|
Interest
income:
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
Taxable
|
$31,649
|
|
$34,651
|
|
|
Tax-exempt
|
704
|
|
722
|
|
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
Taxable
|
1,291
|
|
2,113
|
|
|
Tax-exempt
|
176
|
|
159
|
|
|
Dividends
|
|
|
|
|
|
Interest on
interest-bearing deposits in other banks
|
112
|
|
647
|
|
|
Interest on federal
funds sold
|
|
|
|
|
|
Total interest
income
|
33,932
|
|
38,292
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
Interest on
deposits
|
4,384
|
|
6,199
|
|
|
Interest on short-term
borrowings
|
28
|
|
|
|
|
Interest on long-term
debt
|
652
|
|
392
|
|
|
Total interest
expense
|
5,064
|
|
6,591
|
|
|
Net interest
income
|
28,868
|
|
31,701
|
|
|
Provision for loan
losses
|
5,656
|
|
2,250
|
|
|
Net interest income
after provision for loan losses
|
23,212
|
|
29,451
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
Service charges, fees
and commissions
|
3,491
|
|
3,497
|
|
|
Commissions and fees
on fiduciary activities
|
669
|
|
855
|
|
|
Wealth management
income
|
636
|
|
709
|
|
|
Mortgage banking
income
|
900
|
|
357
|
|
|
Life insurance
investment income
|
578
|
|
574
|
|
|
Net gain (loss) on
sale of investment securities available-for-sale
|
815
|
|
(95)
|
|
|
Total noninterest
income
|
7,089
|
|
5,897
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
Salaries and employee
benefits expense
|
15,452
|
|
18,572
|
|
|
Net occupancy and
equipment expense
|
3,676
|
|
3,174
|
|
|
Amortization of
intangible assets
|
509
|
|
582
|
|
|
Goodwill
impairment
|
24,754
|
|
|
|
|
Net cost of operation
of other real estate owned
|
40
|
|
20
|
|
|
Other
expenses
|
8,713
|
|
9,531
|
|
|
Total noninterest
expense
|
53,144
|
|
31,879
|
|
|
Income (loss) before
income taxes
|
(22,843)
|
|
3,469
|
|
|
Income tax expense
(benefit)
|
(49)
|
|
456
|
|
|
Net income
(loss)
|
$(22,794)
|
|
$3,013
|
|
|
Other comprehensive income:
|
|
|
|
|
|
Unrealized gain on
investment securities available-for-sale
|
$2,007
|
|
$2,703
|
|
|
Reclassification
adjustment for (gain) loss included in net income
|
(815)
|
|
95
|
|
|
Change in pension
liability
|
|
|
|
|
|
Change in cash flow
hedge
|
11
|
|
|
|
|
Income tax expense
related to other comprehensive income
|
253
|
|
588
|
|
|
Other comprehensive
income, net of income taxes
|
950
|
|
2,210
|
|
|
Comprehensive income
(loss)
|
$(21,844)
|
|
$5,223
|
|
|
|
|
|
|
|
|
Per common share
data:
|
|
|
|
|
|
Net
income:
|
|
|
|
|
|
Basic
|
$(2.46)
|
|
$0.33
|
|
|
Diluted
|
$(2.46)
|
|
$0.33
|
|
|
Average common shares
outstanding:
|
|
|
|
|
|
Basic
|
9,248,856
|
|
9,159,281
|
|
|
Diluted
|
9,248,856
|
|
9,172,015
|
|
|
Cash dividends
declared
|
$0.15
|
|
$0.28
|
|
Riverview
Financial Corporation
|
|
Consolidated
Statements of Income (Loss)
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
Three months
ended
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
|
|
2020
|
2020
|
2020
|
2019
|
2019
|
|
Interest
income:
|
|
|
|
|
|
|
Interest and fees on
loans:
|
|
|
|
|
|
|
Taxable
|
$
11,265
|
$
10,602
|
$
9,782
|
$
10,216
|
$
12,283
|
|
Tax-exempt
|
223
|
236
|
245
|
257
|
259
|
|
Interest and
dividends on investment securities available-for-sale:
|
|
|
|
|
|
|
Taxable
|
360
|
396
|
535
|
622
|
641
|
|
Tax-exempt
|
71
|
68
|
37
|
41
|
43
|
|
Dividends
|
|
|
|
|
|
|
Interest on
interest-bearing deposits in other banks
|
11
|
12
|
89
|
119
|
200
|
|
Interest on federal
funds sold
|
|
|
|
|
|
|
Total interest
income
|
11,930
|
11,314
|
10,688
|
11,255
|
13,426
|
|
|
|
|
|
|
|
|
Interest
expense:
|
|
|
|
|
|
|
Interest on
deposits
|
1,200
|
1,395
|
1,789
|
1,887
|
2,027
|
|
Interest on
short-term borrowings
|
|
23
|
5
|
|
|
|
Interest on long-term
debt
|
304
|
225
|
123
|
122
|
127
|
|
Total interest
expense
|
1,504
|
1,643
|
1,917
|
2,009
|
2,154
|
|
Net interest
income
|
10,426
|
9,671
|
8,771
|
9,246
|
11,272
|
|
Provision for loan
losses
|
1,844
|
2,012
|
1,800
|
156
|
1,049
|
|
Net interest income
after provision for loan losses
|
8,582
|
7,659
|
6,971
|
9,090
|
10,223
|
|
|
|
|
|
|
|
|
Noninterest
income:
|
|
|
|
|
|
|
Service charges, fees
and commissions
|
1,099
|
1,011
|
1,381
|
1,689
|
1,129
|
|
Commissions and fees
on fiduciary activities
|
246
|
210
|
213
|
225
|
314
|
|
Wealth management
income
|
220
|
196
|
220
|
231
|
226
|
|
Mortgage banking
income
|
401
|
391
|
108
|
210
|
151
|
|
Life insurance
investment income
|
192
|
193
|
193
|
189
|
193
|
|
Net gain (loss) on
sale of investment securities available-for-sale
|
|
|
815
|
73
|
(53)
|
|
Total
noninterest income
|
2,158
|
2,001
|
2,930
|
2,617
|
1,960
|
|
|
|
|
|
|
|
|
Noninterest
expense:
|
|
|
|
|
|
|
Salaries and employee
benefits expense
|
5,411
|
4,985
|
5,056
|
5,273
|
5,232
|
|
Net occupancy and
equipment expense
|
1,428
|
1,068
|
1,180
|
1,183
|
1,041
|
|
Amortization of
intangible assets
|
170
|
169
|
170
|
191
|
194
|
|
Goodwill
impairment
|
|
24,754
|
|
|
|
|
Net cost (benefit) of
operation of other real estate owned
|
51
|
|
(11)
|
47
|
(15)
|
|
Other
expenses
|
2,918
|
2,978
|
2,817
|
3,495
|
2,979
|
|
Total noninterest
expense
|
9,978
|
33,954
|
9,212
|
10,189
|
9,431
|
|
Income (loss) before
income taxes
|
762
|
(24,294)
|
689
|
1,518
|
2,752
|
|
Income tax expense
(benefit)
|
67
|
(172)
|
56
|
245
|
486
|
|
Net income
(loss)
|
$
695
|
$(24,122)
|
$
633
|
$
1,273
|
$
2,266
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
Unrealized gain
(loss) on investment securities available-for-sale
|
$
114
|
$
840
|
$ 1,053
|
$
134
|
$
(256)
|
|
Reclassification
adjustment for (gain) loss included in net income
|
|
|
(815)
|
(73)
|
53
|
|
Change in pension
liability
|
|
|
|
16
|
|
|
Change in cash flow
hedge
|
49
|
(38)
|
|
|
|
|
Income tax expense
(benefit) related to other comprehensive income (loss)
|
35
|
168
|
50
|
16
|
(42)
|
|
Other comprehensive
income (loss), net of income taxes
|
128
|
634
|
188
|
61
|
(161)
|
|
Comprehensive income
(loss)
|
$
823
|
$(23,488)
|
$821
|
$1,334
|
$2,105
|
|
|
|
|
|
|
|
|
Per common share
data:
|
|
|
|
|
|
|
Net income
(loss):
|
|
|
|
|
|
|
Basic
|
$ 0.08
|
$(2.61)
|
$ 0.07
|
$ 0.14
|
$ 0.25
|
|
Diluted
|
$ 0.08
|
$(2.61)
|
$ 0.07
|
$ 0.14
|
$ 0.25
|
|
Average common shares
outstanding:
|
|
|
|
|
|
|
Basic
|
9,273,666
|
9,249,184
|
9,223,445
|
9,191,551
|
9,173,901
|
|
Diluted
|
9,273,666
|
9,249,184
|
9,233,060
|
9,210,646
|
9,181,076
|
|
Cash dividends
declared
|
$ 0.00
|
$ 0.08
|
$ 0.08
|
$ 0.08
|
$ 0.08
|
|
Riverview
Financial Corporation
|
|
Details of Net
Interest and Net Interest Margin
|
|
(In thousands,
fully taxable equivalent basis)
|
|
|
|
|
|
|
|
|
Three months
ended
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
|
|
2020
|
2020
|
2020
|
2019
|
2019
|
|
Net interest
income:
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
|
Taxable
|
$
11,265
|
$
10,602
|
$
9,782
|
$
10,216
|
$
12,283
|
|
Tax-exempt
|
282
|
299
|
310
|
325
|
328
|
|
Total loans,
net
|
11,547
|
10,901
|
10,092
|
10,541
|
12,611
|
|
Investments:
|
|
|
|
|
|
|
Taxable
|
360
|
396
|
535
|
622
|
641
|
|
Tax-exempt
|
90
|
86
|
47
|
52
|
54
|
|
Total
investments
|
450
|
482
|
582
|
674
|
695
|
|
Interest on
interest-bearing balances in other banks
|
11
|
12
|
89
|
119
|
200
|
|
Federal funds
sold
|
|
|
|
|
|
|
Total interest
income
|
12,008
|
11,395
|
10,763
|
11,334
|
13,506
|
|
Interest
expense:
|
|
|
|
|
|
|
Deposits
|
1,200
|
1,395
|
1,789
|
1,887
|
2,027
|
|
Short-term
borrowings
|
|
23
|
5
|
|
|
|
Long-term
debt
|
304
|
225
|
123
|
122
|
127
|
|
Total interest
expense
|
1,504
|
1,643
|
1,917
|
2,009
|
2,154
|
|
Net interest
income
|
$
10,504
|
$
9,752
|
$
8,846
|
$
9,325
|
$
11,352
|
|
|
|
|
|
|
|
|
Yields on earning
assets:
|
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
|
Taxable
|
3.95%
|
4.10%
|
4.69%
|
4.93%
|
5.77%
|
|
Tax-exempt
|
3.57%
|
3.46%
|
3.50%
|
3.47%
|
3.47%
|
|
Total loans,
net
|
3.94%
|
4.08%
|
4.64%
|
4.86%
|
5.67%
|
|
Investments:
|
|
|
|
|
|
|
Taxable
|
2.17%
|
2.74%
|
2.78%
|
2.69%
|
2.90%
|
|
Tax-exempt
|
3.31%
|
4.10%
|
4.08%
|
4.19%
|
4.08%
|
|
Total
investments
|
2.33%
|
2.91%
|
2.85%
|
2.77%
|
2.96%
|
|
Interest-bearing
balances with banks
|
0.11%
|
0.10%
|
1.17%
|
1.39%
|
2.31%
|
|
Federal funds
sold
|
|
|
|
|
|
|
Total earning
assets
|
3.73%
|
3.85%
|
4.39%
|
4.54%
|
5.31%
|
|
Costs of
interest-bearing liabilities:
|
|
|
|
|
|
|
Deposits
|
0.56%
|
0.67%
|
0.90%
|
0.94%
|
0.99%
|
|
Short-term
borrowings
|
|
0.33%
|
2.03%
|
|
|
|
Long-term
debt
|
0.56%
|
0.74%
|
4.19%
|
6.95%
|
7.26%
|
|
Total interest-bearing
liabilities
|
0.56%
|
0.67%
|
0.95%
|
0.99%
|
1.05%
|
|
Net interest
spread
|
3.17%
|
3.18%
|
3.44%
|
3.55%
|
4.26%
|
|
Net interest
margin
|
3.26%
|
3.29%
|
3.60%
|
3.74%
|
4.46%
|
|
Riverview
Financial Corporation
|
|
Consolidated
Balance Sheets
|
|
(In thousands,
except per share data)
|
|
|
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
At period
end
|
2020
|
2020
|
2020
|
2019
|
2019
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and due from
banks
|
$
10,646
|
$
10,195
|
$
12,128
|
$
11,838
|
$
13,108
|
Interest-bearing
balances in other banks
|
21,312
|
33,033
|
61,107
|
38,510
|
16,733
|
Federal funds
sold
|
|
|
|
|
|
Investment securities
available-for-sale
|
98,846
|
74,134
|
68,402
|
91,247
|
106,637
|
Loans held for
sale
|
4,547
|
4,252
|
272
|
81
|
336
|
Loans, net
|
1,163,442
|
1,165,453
|
887,449
|
852,109
|
883,506
|
Less: allowance for
loan losses
|
11,624
|
9,736
|
8,251
|
7,516
|
7,097
|
Net loans
|
1,151,818
|
1,155,717
|
879,198
|
844,593
|
876,409
|
Premises and
equipment, net
|
18,419
|
18,668
|
18,875
|
17,852
|
18,115
|
Accrued interest
receivable
|
3,218
|
1,826
|
2,589
|
2,414
|
2,751
|
Goodwill
|
|
|
24,754
|
24,754
|
24,754
|
Other intangible
assets, net
|
2,227
|
2,397
|
2,566
|
2,736
|
2,927
|
Other
assets
|
45,739
|
46,578
|
47,152
|
45,929
|
47,989
|
Total
assets
|
$1,356,772
|
$1,346,800
|
$1,117,043
|
$1,079,954
|
$1,109,759
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest-bearing
|
$
178,168
|
$
173,567
|
$
148,633
|
$
147,405
|
$
161,211
|
Interest-bearing
|
853,145
|
849,586
|
809,870
|
793,075
|
808,372
|
Total
deposits
|
1,031,313
|
1,023,153
|
958,503
|
940,480
|
969,583
|
Short-term
borrowings
|
|
|
|
|
|
Long-term
debt
|
217,031
|
217,010
|
26,992
|
6,971
|
6,951
|
Accrued interest
payable
|
591
|
457
|
424
|
435
|
432
|
Other
liabilities
|
12,413
|
11,728
|
12,683
|
13,958
|
15,538
|
Total
liabilities
|
1,261,348
|
1,252,348
|
998,602
|
961,844
|
992,504
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
102,672
|
102,552
|
102,386
|
102,206
|
101,807
|
Capital
surplus
|
190
|
161
|
134
|
112
|
300
|
Retained earnings
(accumulated deficit)
|
(8,040)
|
(8,735)
|
16,081
|
16,140
|
15,557
|
Accumulated other
comprehensive income (loss)
|
602
|
474
|
(160)
|
(348)
|
(409)
|
Total stockholders'
equity
|
95,424
|
94,452
|
118,441
|
118,110
|
117,255
|
Total liabilities and
stockholders' equity
|
$1,356,772
|
$1,346,800
|
$1,117,043
|
$1,079,954
|
$1,109,759
|
Riverview
Financial Corporation
|
|
Consolidated
Balance Sheets
|
|
(In thousands
except per share data)
|
|
|
|
|
|
|
|
|
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
|
Average quarterly
balances
|
2020
|
2020
|
2020
|
2019
|
2019
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Loans,
net:
|
|
|
|
|
|
|
Taxable
|
$1,134,625
|
$1,041,161
|
$838,825
|
$822,667
|
$845,103
|
|
Tax-exempt
|
31,451
|
34,723
|
35,595
|
37,194
|
37,523
|
|
Total loans,
net
|
1,166,076
|
1,075,884
|
874,420
|
859,861
|
882,626
|
|
Investments:
|
|
|
|
|
|
|
Taxable
|
66,049
|
58,230
|
77,400
|
91,665
|
87,753
|
|
Tax-exempt
|
10,812
|
8,442
|
4,628
|
4,929
|
5,257
|
|
Total
investments
|
76,861
|
66,672
|
82,028
|
96,594
|
93,010
|
|
Interest-bearing
balances with banks
|
38,334
|
48,174
|
30,490
|
33,882
|
34,323
|
|
Federal funds
sold
|
|
|
|
|
|
|
Total earning
assets
|
1,281,271
|
1,190,730
|
986,938
|
990,337
|
1,009,959
|
|
Other
assets
|
73,079
|
102,097
|
98,407
|
99,930
|
101,242
|
|
Total
assets
|
$1,354,350
|
$1,292,827
|
$1,085,345
|
$1,090,267
|
$1,111,201
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity:
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest-bearing
|
$175,402
|
$171,500
|
$144,630
|
$152,596
|
$159,320
|
|
Interest-bearing
|
853,782
|
837,512
|
795,084
|
797,577
|
810,430
|
|
Total
deposits
|
1,029,184
|
1,009,012
|
939,714
|
950,173
|
969,750
|
|
Short-term
borrowings
|
|
28,417
|
989
|
|
|
|
Long-term
debt
|
217,021
|
122,875
|
11,817
|
6,962
|
6,942
|
|
Other
liabilities
|
12,135
|
13,062
|
13,668
|
15,179
|
16,581
|
|
Total
liabilities
|
1,258,340
|
1,173,366
|
966,188
|
972,314
|
993,273
|
|
Stockholders'
equity
|
96,010
|
119,461
|
119,157
|
117,953
|
117,928
|
|
Total liabilities and
stockholders' equity
|
$1,354,350
|
$1,292,827
|
$1,085,345
|
$1,090,267
|
$1,111,201
|
|
Riverview
Financial Corporation
|
Asset Quality
Data
|
(In
thousands)
|
|
|
|
|
|
|
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
|
2020
|
2020
|
2020
|
2019
|
2019
|
At quarter
end:
|
|
|
|
|
|
Nonperforming
assets:
|
|
|
|
|
|
Nonaccrual
loans
|
$3,225
|
$3,241
|
$2,048
|
$2,287
|
$2,927
|
Accruing restructured
loans
|
9,648
|
9,592
|
2,646
|
2,666
|
2,692
|
Accruing loans past
due 90 days or more
|
108
|
183
|
691
|
45
|
100
|
Foreclosed
assets
|
25
|
363
|
346
|
82
|
87
|
Total nonperforming
assets
|
$13,006
|
$13,379
|
$5,731
|
$5,080
|
$5,806
|
|
|
|
|
|
|
Three months
ended:
|
|
|
|
|
|
Allowance for loan
losses:
|
|
|
|
|
|
Beginning
balance
|
$9,736
|
$8,251
|
$7,516
|
$7,097
|
$7,002
|
Charge-offs
|
42
|
574
|
1,123
|
237
|
985
|
Recoveries
|
86
|
47
|
58
|
500
|
31
|
Provision for loan
losses
|
1,844
|
2,012
|
1,800
|
156
|
1,049
|
Ending
balance
|
$11,624
|
$9,736
|
$8,251
|
$7,516
|
$7,097
|
Riverview
Financial Corporation
|
Reconciliation of
Non-GAAP Financial Measures
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Three months
ended:
|
2020
|
2020
|
2020
|
2019
|
2019
|
Core net income
(loss) per common share:
|
|
|
|
|
|
Net income
(loss)
|
$695
|
$(24,122)
|
$633
|
$1,273
|
$2,266
|
Adjustments:
|
|
|
|
|
|
Less: Gain (loss) on
sale of investment securities, net of tax
|
|
|
644
|
58
|
(42)
|
Add: Acquisition
related expenses, net of tax
|
|
|
|
|
|
Add: Goodwill
impairment
|
|
24,581
|
|
|
|
Net income (loss) –
Core
|
$695
|
$459
|
$(11)
|
$1,215
|
$2,308
|
|
|
|
|
|
|
Average common shares
outstanding
|
9,273,666
|
9,249,184
|
9,223,445
|
9,191,551
|
9,173,901
|
Core net income per
common share
|
$ 0.07
|
$ 0.05
|
$ 0.00
|
$ 0.13
|
$ 0.25
|
|
|
|
|
|
|
Tangible book
value:
|
|
|
|
|
|
Total stockholders'
equity
|
$95,424
|
$94,452
|
$118,441
|
$118,110
|
$117,255
|
Less:
Goodwill
|
|
|
24,754
|
24,754
|
24,754
|
Less: Other
intangible assets, net
|
2,227
|
2,397
|
2,566
|
2,736
|
2,927
|
Total tangible
stockholders' equity
|
$93,197
|
$92,055
|
$91,121
|
$90,620
|
$89,574
|
|
|
|
|
|
|
Common shares
outstanding
|
9,279,491
|
9,263,697
|
9,236,039
|
9,216,616
|
9,182,565
|
|
|
|
|
|
|
Tangible book value
per share
|
$10.04
|
$9.94
|
$9.87
|
$9.83
|
$9.75
|
|
|
|
|
|
|
Tangible
stockholders' equity to tangible assets:
|
|
|
|
|
|
Total stockholders'
equity
|
$95,424
|
$94,452
|
$118,441
|
$118,110
|
$117,255
|
Less:
Goodwill
|
|
|
24,754
|
24,754
|
24,754
|
Less: Other
intangible assets, net
|
2,227
|
2,397
|
2,566
|
2,736
|
2,927
|
Total tangible
stockholders' equity
|
$93,197
|
$92,055
|
$91,121
|
$90,620
|
$89,574
|
|
|
|
|
|
|
Total
assets
|
$1,356,772
|
$1,346,800
|
$1,117,043
|
$1,079,954
|
$1,109,759
|
Less:
Goodwill
|
|
|
24,754
|
24,754
|
24,754
|
Less: Other
intangible assets, net
|
2,227
|
2,397
|
2,566
|
2,736
|
2,927
|
Total tangible
assets
|
$1,354,545
|
$1,344,403
|
$1,089,723
|
$1,052,464
|
$1,082,078
|
|
|
|
|
|
|
Tangible
stockholders' equity to tangible assets
|
6.88%
|
6.85%
|
8.36%
|
8.61%
|
8.28%
|
|
|
|
|
|
|
Core return on
average stockholders' equity:
|
|
|
|
|
|
Net income (loss)
GAAP
|
$695
|
$(24,122)
|
$633
|
$1,273
|
$2,266
|
Adjustments:
|
|
|
|
|
|
Less: Gain (loss) on
sale of investment securities, net of tax
|
|
|
644
|
58
|
(42)
|
Add: Acquisition
related expenses, net of tax
|
|
|
|
|
|
Add: Goodwill
impairment
|
|
24,581
|
|
|
|
Net income (loss) –
Core
|
$695
|
$459
|
$(11)
|
$1,215
|
$2,308
|
|
|
|
|
|
|
Average stockholders'
equity
|
$96,010
|
$119,461
|
$119,157
|
$117,953
|
$117,928
|
Core return on
average stockholders' equity
|
2.88%
|
1.55%
|
(0.04)%
|
4.09%
|
7.76%
|
|
|
|
|
|
|
Return on average
tangible equity:
|
|
|
|
|
|
Net income (loss)
GAAP
|
$695
|
$(24,122)
|
$633
|
$1,273
|
$2,266
|
|
|
|
|
|
|
Average stockholders'
equity
|
$96,010
|
$119,461
|
$119,157
|
$117,953
|
$117,928
|
Less: average
intangibles
|
2,310
|
26,961
|
27,401
|
27,579
|
27,775
|
Average tangible
stockholders' equity
|
$93,700
|
$92,500
|
$91,756
|
$90,374
|
$90,153
|
|
|
|
|
|
|
Return on average
tangible stockholders' equity
|
2.95%
|
(104.88)%
|
2.77%
|
5.59%
|
9.97%
|
Riverview
Financial Corporation
|
Reconciliation of
Non-GAAP Financial Measures
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Three months
ended:
|
2020
|
2020
|
2020
|
2019
|
2019
|
Core return on
average tangible stockholders' equity:
|
|
|
|
|
|
Net income (loss)
GAAP
|
$695
|
$(24,122)
|
$633
|
$1,273
|
$2,266
|
Adjustments:
|
|
|
|
|
|
Less: Gain (loss) on
sale of investment securities, net of tax
|
|
|
644
|
58
|
(42)
|
Add: Acquisition
related expenses, net of tax
|
|
|
|
|
|
Add: Goodwill
impairment
|
|
24,581
|
|
|
|
Net income (loss) –
Core
|
$695
|
$459
|
$(11)
|
$1,215
|
$2,308
|
|
|
|
|
|
|
Average stockholders'
equity
|
$96,010
|
$119,461
|
$119,157
|
$117,953
|
$117,928
|
Less: average
intangibles
|
2,310
|
26,961
|
27,401
|
27,579
|
27,775
|
Average tangible
stockholders' equity
|
$93,700
|
$92,500
|
$91,756
|
$90,374
|
$90,153
|
|
|
|
|
|
|
Core return on
average tangible stockholders' equity
|
2.95%
|
2.00%
|
(0.05)%
|
5.33%
|
10.16%
|
|
|
|
|
|
|
Core return on
average assets:
|
|
|
|
|
|
Net income (loss)
GAAP
|
$695
|
$(24,122)
|
$633
|
$1,273
|
$2,266
|
Adjustments:
|
|
|
|
|
|
Less: Gain (loss) on
sale of investment securities, net of tax
|
|
|
644
|
58
|
(42)
|
Add: Acquisition
related expenses, net of tax
|
|
|
|
|
|
Add: Goodwill
impairment
|
|
24,581
|
|
|
|
Net income (loss) –
Core
|
$695
|
$459
|
$(11)
|
$1,215
|
$2,308
|
|
|
|
|
|
|
Average
assets
|
$1,354,350
|
$1,292,827
|
$1,085,345
|
$1,090,267
|
$1,111,201
|
Core return on
average assets
|
0.20%
|
0.14%
|
0.00%
|
0.44%
|
0.82%
|
Riverview
Financial Corporation
|
Reconciliation of
Non-GAAP Financial Measures
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
Sep 30
|
Sep 30
|
|
|
2020
|
2019
|
Nine months
ended:
|
|
|
|
|
|
|
|
Core net income per
common share:
|
|
|
|
Net income
(loss)
|
|
$(22,794)
|
$3,013
|
Adjustments:
|
|
|
|
Less:
Gains (loss) on sale of investment securities, net of
tax
|
|
644
|
(75)
|
Add:
Executive separation expense, net of tax
|
|
|
1,752
|
Add: Goodwill impairment
|
|
24,581
|
|
Net income (loss) –
core
|
|
$1,143
|
$4,840
|
|
|
|
|
Average common shares
outstanding
|
|
9,248,856
|
9,159,281
|
|
|
|
|
Core net income
(loss) per common share
|
|
$0.12
|
$0.53
|
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SOURCE Riverview Financial Corporation