Riverview Financial 8K Reports Third Quarter Earnings for 2019 | RIVE 23 Oct 19


NEWS RELEASE		Exhibit 99.1

RIVERVIEW FINANCIAL CORPORATION

REPORTS THIRD QUARTER EARNINGS FOR 2019

HARRISBURG, PA, October 22, 2019 / PRNEWSWIRE / Riverview Financial Corporation (the “Company” or “Riverview”) (NASDAQ: RIVE), today reported unaudited financial results at and for the three months and nine ended September 30, 2019. Riverview reported net income of $2.3 million, or $0.25 per basic and diluted weighted average common share, for the third quarter of 2019, compared to net income of $2.8 million, or $0.30 per basic and diluted weighted average common share, for the third quarter of 2018. The decrease in the comparable second quarter results was caused primarily by recognizing a higher amount of loan loss provision in 2019.

For the nine months ended September 30, 2019, Riverview reported net income of $3.0 million, or $0.33 per basic and diluted weighted average common share, compared to net income of $8.4 million, or $0.92 per basic and diluted weighted average common share, for the same period last year. The year over year reduction was largely a function of recognizing $1.0 million less of net accretion on acquired assets and assumed liabilities, a $2.2 million nonrecurring executive separation charge and $553 thousand of severance expense to employees that either retired or were separated from service due to branch network consolidations. In addition, the results for the nine months ended September 30, 2019, included $1.6 million of additional loan loss provision compared to the same period in 2018.

HIGHLIGHTS

•

The operating efficiency ratio improved to 69.11% for the three months ended September 30, 2019 compared to 79.90% for the prior quarter.

•

Total noninterest expense decreased $1,053 thousand, or 10.0%, during the quarter compared to the quarter ended June 30, 2019.

•

Tax-equivalent interest income increased $523 thousand, or 4.0%, during the quarter compared to the quarter ended June 30, 2019.

•

Interest expense declined $76 thousand, or 3.4%, during the quarter compared to the quarter ended June 30, 2019.

•

Interest-bearing deposit costs declined in the third quarter of 2019 to 0.99% from 1.02% in the second quarter of 2019.

•

Tax-equivalent net interest margin was 4.46% in the third quarter of 2019 compared to 4.15% for the same period last year.Tax-equivalent net interest margin, excluding the impact of purchase accounting, improved to 3.90% in the third quarter of 2019 compared to 3.68% for the same period last year.

•

Continued strength in asset quality as nonperforming assets as a percentage of loans, net, and other real estate owned was 0.66% at the end of the third quarter of 2019, an improvement from 0.81% at December 31, 2018 and 0.91% at September 30, 2018.

•

Book value per share and tangible book value per share increased to $12.77 per share, or 3.8% and $9.75 per share, or 6.3%, respectively, at the end of the third quarter of 2019, compared to the same period last year.

•

Stockholders’ equity as a percentage of total assets improved to 10.57% at the end of the third quarter of 2019 compared to 9.69% at the same period last year. Tangible stockholders’ equity as a percentage of tangible assets increased to 8.28% at September 30, 2019, from 7.41% at September 30, 2018.

We are pleased to report our third quarter results, particularly as they are beginning to demonstrate the impact of our strategic efficiency initiatives,” said Brett D. Fulk, President and Chief Executive Officer. Fulk continued “I am extremely pleased with the effort put forth by our management team to begin the successful execution of cost savings opportunities identified throughout the first half of 2019, leading directly to a 10% reduction in totalnon-interest expense this quarter compared to the second quarter of this year. To achieve this level of expense reduction we successfully executed initiatives that reduced Salary and Employee Benefits Expense by 10% and Other Expenses by 15% during the third quarter. Additional expense reduction initiatives will be implemented throughout the remainder of 2019, along with certain fee generation initiatives that are anticipated to have a positive material impact on our core operating results.”

Regarding asset quality, Fulk commented “despite elevated loan loss provisions this quarter and year to date compared to 2018, asset quality remains very strong, as evidenced by our low level of delinquent andnon-performing loans. Increased provisioning expense during 2019 is the result of identification of increasing national, regional and local economic risks emerging as the current economic cycle continues to age, coupled with efforts to address legacy loans on a “one off” basis, and should not cause readers of our financial results to draw negative conclusions about systemic loan portfolio credit quality risk within our portfolio”. In closing, Fulk stated with respect to balance sheet growth. “It is imperative we continue to expand our earning asset base responsibly. The lack of organic loan balance growth year to date is being addressed by focusing on methods to generate additional opportunities without increasing our risk profile. Some of these methods include expansion into new growth markets during the third quarter through the opening of two full service offices and one limited purpose office, as well as attracting additional asset generation employees to our organization.”

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three months ended September 30 was $11.4 million in 2019 compared to $11.0 million in 2018. The improvement in thetax-equivalent net interest income was attributable to recognizing a greater amount of net accretion on purchased assets and assumed liabilities along with an increase in the tax equivalent net interest margin, offset by a reduction in average loan volumes. Net accretion totaled $1.4 million in the third quarter of 2019 compared to $1.1 million for the same period last year. For the three months ended September 30, thetax-equivalent net interest margin increased to 4.46% in 2019 from 4.15% in 2018. Excluding purchase accounting adjustments, thetax-equivalent net interest margins were 3.90% and 3.68% for the third quarters of 2019 and 2018. The loan portfolio yield on atax-equivalent basis improved to 5.67% in the third quarter of 2019 compared to 5.24% for the same period last year. The cost of funds increased nine basis points comparing the third quarters of 2019 and 2018. Average loan volume declined $44.3 million to $882.6 million from $926.9 million comparing the three months ended September 30, 2019 and 2018.

For the nine months ended September 30,tax-equivalent net interest income declined $1.0 million to $31.9 million in 2019 from $32.9 million in 2018. The decrease intax-equivalent net interest income was attributable to declines in average loan balances and reductions in net accretion on purchased assets and assumed liabilities, offset by an improvement in the tax equivalent net interest margin. Loans averaged $885.8 million for the nine months ended September 30, 2019 compared to $935.3 million for the same period last year. For the nine months ended September 30,tax-equivalent net interest margin was 4.18% in 2019 compared to 4.16% in 2018. Adjusting for the recognition of purchase accounting adjustments of $3.0 million and $4.1 million, thetax-equivalent net interest margin would have been 3.78% and 3.64% for the nine months ended September 30, 2019 and 2018. Thetax-equivalent yield on earnings assets was 5.04% and the cost of funds was 1.06% in 2019. Thetax-equivalent yield on the loan portfolio increased to 5.37% in 2019 compared to 5.19% in 2018. Excluding loan accretion of $2.9 million and $3.8 million included in loan interest income related to acquired loans, thetax-equivalent yield on the loan portfolio would have been 4.94% and 4.65% for the nine months ended September 30, 2019 and 2018. For the nine months ended September 30, investments yielded 3.06% on atax-equivalent basis in 2019 compared to 2.79% for the same period last year. The cost of deposits increased 20 basis points to 1.00% in 2019 from 0.80% in 2018. The cost of interest-bearing liabilities increased to 1.06% in 2019 from 0.88% in 2018.

For the quarter ended September 30, the provision for loan losses was $1,049 thousand in 2019 compared to $225 thousand for the same period in 2018. The provision for loan losses totaled $2,250 thousand for the nine months ended September 30, 2019, compared to $615 thousand in 2018. The increase in the provision for loan losses in 2019 was influenced by increasing qualitative factors related to weakening economic trends and higher historical loss factors due to an increase in net charge-offs primarily associated with legacy purchased loans.

For the quarter ended September 30, noninterest income totaled $1,960 thousand in 2019, a decrease of $94 thousand from $2,054 thousand in 2018. The decrease in noninterest income for the quarter was due primarily to decreases in services charges, fees and commissions of $138 thousand, and recognizing a net loss on the sale of investment securities of $53 thousand offset partially by an increase of $88 thousand in trust commissions and fees. For the nine months ended September 30, noninterest income decreased to $5,897 thousand in 2019 compared to $6,540 thousand in 2018. The decrease was primarily a result of lower service charges, fees and commissions of $649 thousand and mortgage banking income of $170 thousand offset partially by increases in trust commissions and fees of $184 thousand and wealth management income of $137 thousand.

Noninterest expense increased $90 thousand to $9,431 thousand for the three months ended September 30, 2019, from $9,341 thousand for the same period last year. The increase in noninterest expense for the quarter was due primarily to increases in salaries and employee benefits expense of $200 thousand. The increase in salary and benefits expense was primarily due to accruals of severances associated with staff elimination and the planned branch closures. For the nine months ended September 30, noninterest expense increased to $31,879 thousand in 2019 compared to $28,285 thousand in 2018. The increase was primarily due to $2.2 million in nonrecurring expenses from the execution of an executive separation agreement and $553 thousand of retirement and severance accruals.

BALANCE SHEET REVIEW

Total assets, loans, net, and deposits totaled $1.1 billion, $883.5 million, and $969.6 million at September 30, 2019. For the three months ended September 30, 2019, total assets, loans and deposits decreased $10.4 million, $5.8 million and $10.1 million, respectively. For the nine months ended September 30, 2019, total assets decreased $27.8 million or 2.4%. Year to date, loans, net, decreased $9.7 million comparing the end of the third quarter of 2019 to year-end 2018. Business lending, including commercial and commercial real estate loans, decreased $12.0 million while retail lending, including

residential mortgages and consumer loans, decreased $16.7 million during the nine months ended September 30, 2019. For this same period construction lending increased $19.0 million. Loan originations during the first nine months of 2019 represented a more moderate pace as compared to the same period of 2018. The reduction in loan growth was a result of management’s decision to focus on margin discipline on loan originations and an unwavering commitment to maintaining strong credit underwriting standards. Total investments were $106.6 million at September 30, 2019, compared to $104.7 million at December 31, 2018. Total deposits decreased $35.0 million in the nine months ended September 30, 2019, as the softness in loan demand reduced the need to aggressively price deposits along with management’s desire to maintain margins through reducing reliance on interest-bearing deposits. Noninterest-bearing deposits decreased $1.4 million, while interest-bearing deposits decreased $33.6 million. As a percentage of total deposits, noninterest-bearing deposits amounted to 16.6% at September 30, 2019 and 16.2% at December 31, 2018.

Stockholders’ equity totaled $117.3 million, or $12.77 per share, at September 30, 2019, $115.7 million, or $12.62 per share, at June 30, 2019, and $113.9 million, or $12.49 per common share, at December 31, 2018. The increase in equity in the nine months ended September 30, 2019 was due primarily to an change of $2.2 million in accumulated other comprehensive income and net income of $3.0 million offset partially by dividends declared of $2.5 million. Tangible stockholders’ equity per common share increased to $9.75 at September 30, 2019, compared to $9.58 at June 30, 2019 and $9.39 at December 31, 2018. Dividends declared for the third quarter of 2019 amounted to $0.075 per share representing a dividend payout ratio of 2.6% based on the Company’s closing market price on September 30, 2019.

ASSET QUALITY REVIEW

Nonperforming assets were $5.8 million, or 0.66% of loans, net, and foreclosed assets at September 30, 2019 compared to $7.2 million or 0.81% at December 31, 2018. Adjusting for accruing restructured loans, nonperforming assets were $3.1 million, or 0.35% of loans, net and foreclosed assets at September 30, 2019, and $4.3 million, or 0.48%, at December 31, 2018. The allowance for loan losses equaled $7.1 million, or 0.80%, of loans, net, at September 30, 2019, compared to $6.4 million, or 0.71%, at December 31, 2018. Adding accounting marks for purchased credit impaired loans to the allowance for loan losses would result in a ratio of 0.94% as a percentage of loans, net at September 30, 2019. The coverage ratio, allowance for loan losses as a percentage of nonperforming assets, was 122.2% at September 30, 2019 versus 88.1% at December 31, 2018. Excluding accruing restructured loans, the coverage ratio would be 227.9% at September 30, 2019. Loanscharged-off, net of recoveries, for the nine months ended September 30, 2019, equaled $1,501 thousand, compared to $154 thousand for the same period last year.

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, Northumberland, Perry, Schuylkill and Somerset Counties through 28 community banking offices and four 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. The Wealth and Trust Management divisions of Riverview Bank, with assets under management exceeding $350 million, provide trust and investment advisory services to the general public. 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/.

SOURCE: Riverview Financial Corporation

Contact: Scott A. Seasock, CFO at 717.827.4039 or sseasock@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 Form10-K and Quarterly Reports on Form10-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 significantlyharder-or takelonger-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 thepre-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 certainnon-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, 2019 and 2018, contain items which Riverview considers non-core, namely net gains on sales of investment securitiesavailable-for-sale, acquisition related expenses and the adjustment to tax expense due to the enactment of the Tax Act. Riverview presents thenon-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 thesenon-GAAP financial measures is consistent with how Riverview evaluates its performance internally and thesenon-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in evaluation of companies in Riverview’s industry. Wherenon-GAAP measures are used in this press release, reconciliations to the comparable GAAP measures are provided in the accompanying tables. Thenon-GAAP financial measures Riverview uses may differ from similarly titlednon-GAAP financial measures of other financial institutions. Thesenon-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 thesenon-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
	2019			2019			2019			2018			2018
Key performance data:
Per common share data:
Net income (loss)	$	0.25		$	0.16		$	(0.08	)	$	0.27		$	0.30
Core net income⁽¹⁾	$	0.25		$	0.16		$	0.12		$	0.27		$	0.30
Cash dividends declared	$	0.08		$	0.10		$	0.10		$	0.10		$	0.10
Book value	$	12.77		$	12.62		$	12.40		$	12.49		$	12.30
Tangible book value⁽¹⁾	$	9.75		$	9.58		$	9.33		$	9.39		$	9.17
Market value:
High	$	11.68		$	11.44		$	13.00		$	14.29		$	14.40
Low	$	9.90		$	10.50		$	10.90		$	10.11		$	12.56
Closing	$	11.68		$	10.50		$	11.50		$	10.90		$	13.60
Market capitalization	$	107,252		$	96,261		$	105,278		$	99,425		$	123,905
Common shares outstanding		9,182,565			9,167,670			9,154,599			9,121,555			9,110,676
Selected ratios:
Return on average stockholders’ equity		7.62	%		5.00	%		(2.46	)%		8.64	%		9.89	%
Core return on average stockholders’ equity⁽¹⁾		7.76	%		5.00	%		3.93	%		8.78	%		10.01	%
Return on average tangible stockholders’ equity⁽¹⁾		9.97	%		6.61	%		(3.27	)%		11.52	%		13.29	%
Core return on average tangible stockholders’ equity⁽¹⁾		10.16	%		6.61	%		5.23	%		11.70	%		13.44	%
Tangible stockholders’ equity to tangible assets⁽¹⁾		8.28	%		8.04	%		7.69	%		7.72	%		7.41	%
Return on average assets		0.81	%		0.51	%		(0.25	)%		0.86	%		0.96	%
Core return on average assets⁽¹⁾		0.82	%		0.51	%		0.39	%		0.87	%		0.97	%
Stockholders’ equity to total assets		10.57	%		10.33	%		9.97	%		10.01	%		9.69	%
Efficiency ratio⁽²⁾		69.11	%		79.90	%		100.74	%		76.11	%		69.89	%
Nonperforming assets to loans, net, and foreclosed assets		0.66	%		0.56	%		0.68	%		0.81	%		0.91	%
Net charge-offs to average loans, net		0.43	%		0.05	%		0.20	%		0.05	%		0.07	%
Allowance for loan losses to loans, net		0.80	%		0.79	%		0.74	%		0.71	%		0.71	%
Earning assets yield (FTE)⁽³⁾		5.31	%		5.07	%		4.73	%		5.13	%		4.93	%
Cost of funds		1.05	%		1.07	%		1.06	%		1.02	%		0.96	%
Net interest spread (FTE)⁽³⁾		4.26	%		4.00	%		3.67	%		4.11	%		3.97	%
Net interest margin (FTE)⁽³⁾		4.46	%		4.20	%		3.86	%		4.30	%		4.15	%

(1)	See Reconciliation ofNon-GAAP financial measures.

(2)	Total noninterest expense less amortization of intangible assets divided bytax-equivalent net interest income and noninterest income less net gain (loss) on sale of investment securitiesavailable-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 2019			Sep 30 2018
Interest income:
Interest and fees on loans:
Taxable	$	34,651		$	35,424
Tax-exempt		722			699
Interest and dividends on investment securities:
Taxable		2,113			1,616
Tax-exempt		159			243
Dividends
Interest on interest-bearing deposits in other banks		647			361
Interest on federal funds sold					20
Total interest income		38,292			38,363
Interest expense:
Interest on deposits		6,199			5,162
Interest on short-term borrowings					30
Interest on long-term debt		392			562
Total interest expense		6,591			5,754
Net interest income		31,701			32,609
Provision for loan losses		2,250			615
Net interest income after provision for loan losses		29,451			31,994
Noninterest income:
Service charges, fees and commissions		3,497			4,146
Commissions and fees on fiduciary activities		855			671
Wealth management income		709			572
Mortgage banking income		357			527
Life insurance investment income		574			584
Net gain (loss) on sale of investment securitiesavailable-for-sale		(95	)		40
Total noninterest income		5,897			6,540
Noninterest expense:
Salaries and employee benefits expense		18,572			15,575
Net occupancy and equipment expense		3,174			3,142
Amortization of intangible assets		582			656
Net cost of operation of other real estate owned		20			30
Other expenses		9,531			8,882
Total noninterest expense		31,879			28,285
Income before income taxes		3,469			10,249
Income tax expense (benefit)		456			1,863
Net income	$	3,013		$	8,386
Other comprehensive income:
Unrealized gain (loss) on investment securitiesavailable-for-sale	$	2,703		$	(1,539	)
Reclassification adjustment for (gain) loss included in net income		95			(40	)
Change in pension liability
Income tax expense (benefit) related to other comprehensive income (loss)		588			(331	)
Other comprehensive income (loss), net of income taxes		2,210			(1,248	)
Comprehensive income	$	5,223		$	7,138
Per common share data:
Net income:
Basic	$	0.33		$	0.92
Diluted	$	0.33		$	0.92
Average common shares outstanding:
Basic		9,159,281			9,089,636
Diluted		9,172,015			9,143,041
Cash dividends declared	$	0.28		$	0.20

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)


Three months ended	Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sep 30 2018
Interest income:
Interest and fees on loans:
Taxable	$	12,283		$	11,680		$	10,688		$	12,309		$	11,957
Tax-exempt		259			233			230			231			230
Interest and dividends on investment securitiesavailable-for-sale:
Taxable		641			732			740			660			551
Tax-exempt		43			47			69			77			80
Dividends
Interest on interest-bearing deposits in other banks		200			216			231			214			181
Interest on federal funds sold
Total interest income		13,426			12,908			11,958			13,491			12,999
Interest expense:
Interest on deposits		2,027			2,099			2,073			2,027			1,885
Interest on short-term borrowings
Interest on long-term debt		127			131			134			184			194
Total interest expense		2,154			2,230			2,207			2,211			2,079
Net interest income		11,272			10,678			9,751			11,280			10,920
Provision for loan losses		1,049			618			583						225
Net interest income after provision for loan losses		10,223			10,060			9,168			11,280			10,695
Noninterest income:
Service charges, fees and commissions		1,129			1,315			1,053			1,551			1,267
Commissions and fees on fiduciary activities		314			281			260			244			226
Wealth management income		226			236			247			239			199
Mortgage banking income		151			100			106			114			168
Life insurance investment income		193			194			187			192			194
Net gain (loss) on sale of investment securitiesavailable-for-sale		(53	)					(42	)
Total noninterest income		1,960			2,126			1,811			2,340			2,054
Noninterest expense:
Salaries and employee benefits expense		5,232			5,830			7,510			6,489			5,032
Net occupancy and equipment expense		1,041			1,044			1,089			1,011			1,008
Amortization of intangible assets		194			194			194			212			215
Net cost (benefit) of operation of other real estate owned		(15	)		(92	)		127			18			29
Other expenses		2,979			3,508			3,044			2,910			3,057
Total noninterest expense		9,431			10,484			11,964			10,640			9,341
Income (loss) before income taxes		2,752			1,702			(985	)		2,980			3,408
Income tax expense (benefit)		486			268			(298	)		508			620
Net income (loss)	$	2,266		$	1,434		$	(687	)	$	2,472		$	2,788
Other comprehensive income (loss):
Unrealized gain (loss) on investment securitiesavailable-for-sale	$	(256	)	$	1,936		$	1,023		$	527		$	(576	)
Reclassification adjustment for (gain) loss included in net income		53						42
Change in pension liability											(265	)
Income tax expense (benefit) related to other comprehensive income (loss)		(42	)		406			224			54			(121	)
Other comprehensive income (loss), net of income taxes		(161	)		1,530			841			208			(455	)
Comprehensive income (loss)	$	2,105		$	2,964		$	154		$	2,680		$	2,333
Per common share data:
Net income (loss):
Basic	$	0.25		$	0.16		$	(0.08	)	$	0.27		$	0.30
Diluted	$	0.25		$	0.16		$	(0.08	)	$	0.27		$	0.30
Average common shares outstanding:
Basic		9,173,901			9,160,290			9,143,316			9,115,450			9,100,616
Diluted		9,181,076			9,172,992			9,143,316			9,163,855			9,156,931
Cash dividends declared	$	0.08		$	0.10		$	0.10		$	0.10		$	0.10

Riverview Financial Corporation

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)


Three months ended	Sep 30 2019			June 30 2019			Mar 31 2019			Dec 31 2018			Sep 30 2018
Net interest income:
Interest income
Loans, net:
Taxable	$	12,283		$	11,680		$	10,688		$	12,309		$	11,957
Tax-exempt		328			295			291			292			291
Total loans, net		12,611			11,975			10,979			12,601			12,248
Investments:
Taxable		641			732			740			660			551
Tax-exempt		54			60			87			97			102
Total investments		695			792			827			757			653
Interest on interest-bearing balances in other banks		200			216			231			214			181
Federal funds sold
Total interest income		13,506			12,983			12,037			13,572			13,082
Interest expense:
Deposits		2,027			2,099			2,073			2,027			1,885
Short-term borrowings
Long-term debt		127			131			134			184			194
Total interest expense		2,154			2,230			2,207			2,211			2,079
Net interest income	$	11,352		$	10,753		$	9,830		$	11,361		$	11,003
Yields on earning assets:
Loans, net:
Taxable		5.77	%		5.49	%		5.09	%		5.60	%		5.32	%
Tax-exempt		3.47	%		3.41	%		3.34	%		3.26	%		3.25	%
Total loans, net		5.67	%		5.41	%		5.02	%		5.51	%		5.24	%
Investments:
Taxable		2.90	%		3.07	%		3.09	%		3.00	%		2.82	%
Tax-exempt		4.08	%		3.67	%		3.15	%		2.92	%		2.83	%
Total investments		2.96	%		3.11	%		3.10	%		2.99	%		2.82	%
Interest-bearing balances with banks		2.31	%		2.36	%		2.54	%		2.08	%		2.14	%
Federal funds sold
Total earning assets		5.31	%		5.07	%		4.73	%		5.13	%		4.93	%
Costs of interest-bearing liabilities:
Deposits		0.99	%		1.02	%		1.01	%		0.95	%		0.88	%
Short-term borrowings
Long-term debt		7.26	%		7.59	%		7.87	%		5.95	%		5.89	%
Total interest-bearing liabilities		1.05	%		1.07	%		1.06	%		1.02	%		0.96	%
Net interest spread		4.26	%		4.00	%		3.67	%		4.11	%		3.97	%
Net interest margin		4.46	%		4.20	%		3.86	%		4.30	%		4.15	%

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands, except per share data)


At period end	Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sep 30 2018
Assets:
Cash and due from banks	$	13,108		$	11,354		$	12,278		$	16,708		$	13,310
Interest-bearing balances in other banks		16,733			29,621			55,823			37,108			43,505
Federal funds sold
Investment securitiesavailable-for-sale		106,637			100,254			100,684			104,677			97,102
Loans held for sale		336			170			695			637			598
Loans, net		883,506			889,305			878,070			893,184			915,529
Less: allowance for loan losses		7,097			7,002			6,486			6,348			6,472
Net loans		876,409			882,303			871,584			886,836			909,057
Premises and equipment, net		18,115			18,144			18,355			18,208			18,427
Accrued interest receivable		2,751			2,870			3,018			3,010			3,066
Goodwill		24,754			24,754			24,754			24,754			24,754
Other intangible assets, net		2,927			3,121			3,315			3,509			3,721
Other assets		47,989			47,607			48,206			42,156			43,193
Total assets	$	1,109,759		$	1,120,198		$	1,138,712		$	1,137,603		$	1,156,733
Liabilities:
Deposits:
Noninterest-bearing	$	161,211		$	160,407		$	164,880		$	162,574		$	162,385
Interest-bearing		808,372			819,293			836,149			842,019			858,379
Total deposits		969,583			979,700			1,001,029			1,004,593			1,020,764
Short-term borrowings
Long-term debt		6,951			6,932			6,912			6,892			13,019
Accrued interest payable		432			445			475			484			503
Other liabilities		15,538			17,443			16,806			11,724			10,416
Total liabilities		992,504			1,004,520			1,025,222			1,023,693			1,044,702
Stockholders’ equity:
Common stock		101,807			101,644			101,500			101,134			100,999
Capital surplus		300			304			307			332			356
Retained earnings		15,557			13,978			13,461			15,063			13,503
Accumulated other comprehensive income (loss)		(409	)		(248	)		(1,778	)		(2,619	)		(2,827	)
Total stockholders’ equity		117,255			115,678			113,490			113,910			112,031
Total liabilities and stockholders’ equity	$	1,109,759		$	1,120,198		$	1,138,712		$	1,137,603		$	1,156,733

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands except per share data)


Average quarterly balances	Sep 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sep 30 2018
Assets:
Loans, net:
Taxable	$	845,103	$	853,329	$	851,515	$	872,615	$	891,455
Tax-exempt		37,523		34,714		35,298		35,501		35,478
Total loans, net		882,626		888,043		886,813		908,116		926,933
Investments:
Taxable		87,753		95,577		97,041		87,249		77,573
Tax-exempt		5,257		6,558		11,215		13,198		14,288
Total investments		93,010		102,135		108,256		100,447		91,861
Interest-bearing balances with banks		34,323		36,780		36,953		40,787		33,553
Federal funds sold
Total earning assets		1,009,959		1,026,958		1,032,022		1,049,350		1,052,347
Other assets		101,242		99,923		97,628		95,000		97,377
Total assets	$	1,111,201	$	1,126,881	$	1,129,650	$	1,144,350	$	1,149,724
Liabilities and stockholders’ equity:
Deposits:
Interest-bearing	$	810,430	$	829,003	$	835,687	$	847,867	$	850,492
Noninterest-bearing		159,320		159,069		156,735		159,758		163,142
Total deposits		969,750		988,072		992,422		1,007,625		1,013,634
Short-term borrowings
Long-term debt		6,942		6,922		6,902		12,268		13,060
Other liabilities		16,581		16,944		17,006		10,973		11,208
Total liabilities		993,273		1,011,938		1,016,330		1,030,866		1,037,902
Stockholders’ equity		117,928		114,943		113,320		113,484		111,822
Total liabilities and stockholders’ equity	$	1,111,201	$	1,126,881	$	1,129,650	$	1,144,350	$	1,149,724

Riverview Financial Corporation

Asset Quality Data

(In thousands)


	Sep 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018		Sep 30 2018
At quarter end:
Nonperforming assets:
Nonaccrual loans	$	2,927	$	2,165	$	2,643	$	2,729	$	2,780
Accruing restructured loans		2,692		2,715		2,731		2,913		4,663
Accruing loans past due 90 days or more		100		52		122		839		225
Foreclosed assets		87		86		461		721		668
Total nonperforming assets	$	5,806	$	5,018	$	5,957	$	7,202	$	8,336
Three months ended:
Allowance for loan losses:
Beginning balance	$	7,002	$	6,486	$	6,348	$	6,472	$	6,401
Charge-offs		985		142		520		166		189
Recoveries		31		40		75		42		35
Provision for loan losses		1,049		618		583				225
Ending balance	$	7,097	$	7,002	$	6,486	$	6,348	$	6,472

Riverview Financial Corporation

Reconciliation ofNon-GAAP Financial Measures

(In thousands, except per share data)


Three months ended:	Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sep 30 2018
Core net income (loss) per common share:
Net income (loss)	$	2,266		$	1,434		$	(687	)	$	2,472		$	2,788
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		(42	)					(33	)
Add: Acquisition related expenses, net of tax											39			33
Add: Executive separation expense, net of tax								1,752
Net income (loss) Core	$	2,308		$	1,434		$	1,098		$	2,511		$	2,821
Average common shares outstanding		9,173,901			9,160,290			9,143,316			9,115,450			9,100,616
Core net income (loss) per common share	$	0.25		$	0.16		$	0.12		$	0.27		$	0.30
Tangible book value:
Total stockholders’ equity	$	117,255		$	115,678		$	113,490		$	113,910		$	112,031
Less: Goodwill		24,754			24,754			24,754			24,754			24,754
Less: Other intangible assets, net		2,927			3,121			3,315			3,509			3,721
Total tangible stockholders’ equity	$	89,574		$	87,803		$	85,421		$	85,647		$	83,556
Common shares outstanding		9,182,565			9,167,670			9,154,599			9,121,555			9,110,676
Tangible book value per share	$	9.75		$	9.58		$	9.33		$	9.39		$	9.17
Tangible stockholders’ equity to tangible assets:
Total stockholders’ equity	$	117,255		$	115,678		$	113,490		$	113,910		$	112,031
Less: Goodwill		24,754			24,754			24,754			24,754			24,754
Less: Other intangible assets, net		2,927			3,121			3,315			3,509			3,721
Total tangible stockholders’ equity	$	89,574		$	87,803		$	85,421		$	85,647		$	83,556
Total assets	$	1,109,759		$	1,120,198		$	1,138,712		$	1,137,603		$	1,156,733
Less: Goodwill		24,754			24,754			24,754			24,754			24,754
Less: Other intangible assets, net		2,927			3,121			3,315			3,509			3,721
Total tangible assets	$	1,082,078		$	1,092,323		$	1,110,643		$	1,109,340		$	1,128,258
Tangible stockholders’ equity to tangible assets		8.28	%		8.04	%		7.69	%		7.72	%		7.41	%
Core return on average stockholders’ equity:
Net income (loss) GAAP	$	2,266		$	1,434		$	(687	)	$	2,472		$	2,788
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		(42	)					(33	)
Add: Acquisition related expenses, net of tax											39			33
Add: Executive separation expense, net of tax								1,752
Net income (loss) Core	$	2,308		$	1,434		$	1,098		$	2,511		$	2,821
Average stockholders’ equity	$	117,928		$	114,943		$	113,320		$	113,484		$	111,822
Core return on average stockholders’ equity		7.76	%		5.00	%		3.93	%		8.78	%		10.01	%
Return on average tangible equity:
Net income (loss) GAAP	$	2,266		$	1,434		$	(687	)	$	2,472		$	2,788
Average stockholders’ equity	$	117,928		$	114,943		$	113,320		$	113,484		$	111,822
Less: average intangibles		27,775			27,968			28,164			28,365			28,578
Average tangible stockholders’ equity	$	90,153		$	86,975		$	85,156		$	85,119		$	83,244
Return on average tangible stockholders’ equity		9.97	%		6.61	%		(3.27	)%		11.52	%		13.29	%

Riverview Financial Corporation

Reconciliation ofNon-GAAP Financial Measures

(In thousands, except per share data)


Three months ended:	Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018			Sep 30 2018
Core return on average tangible stockholders’ equity:
Net income (loss) GAAP	$	2,266		$	1,434		$	(687	)	$	2,472		$	2,788
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		(42	)					(33	)
Add: Acquisition related expenses, net of tax											39			33
Add: Executive separation expense, net of tax								1,752
Net income (loss) Core	$	2,308		$	1,434		$	1,098		$	2,511		$	2,821
Average stockholders’ equity	$	117,928		$	114,943		$	113,320		$	113,484		$	111,822
Less: average intangibles		27,775			27,968			28,164			28,365			28,578
Average tangible stockholders’ equity	$	90,153		$	86,975		$	85,156		$	85,119		$	83,244
Core return on average tangible stockholders’ equity		10.16	%		6.61	%		5.23	%		11.70	%		13.44	%
Core return on average assets:
Net income (loss) GAAP	$	2,266		$	1,434		$	(687	)	$	2,472		$	2,788
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		(42	)					(33	)
Add: Acquisition related expenses, net of tax											39			33
Add: Executive separation expense, net of tax								1,752
Net income (loss) Core	$	2,308		$	1,434		$	1,098		$	2,511		$	2,821
Average assets	$	1,111,201		$	1,126,881		$	1,129,650		$	1,144,350		$	1,149,724
Core return on average assets		0.82	%		0.51	%		0.39	%		0.87	%		0.97	%

Riverview Financial Corporation

Reconciliation ofNon-GAAP Financial Measures

(In thousands, except per share data)


Nine months ended:	Sep 30 2019			Sep 30 2018
Core net income per common share:
Net income	$	3,013		$	8,386
Adjustments:
Less: Gains (loss) on sale of investment securities, net of tax		(75	)		31
Add: Acquisition related expenses, net of tax					398
Add: Executive separation expense, net of tax		1,752
Net income - core	$	4,840		$	8,753
Average common shares outstanding		9,159,281			9,089,636
Core net income (loss) per common share	$	0.53		$	0.96

Riverview Financial (RIVE) 8-KReports Third Quarter Earnings for 2019