Riverview Financial 8K Reports Fourth Quarter and Annual Earnings for 2019 | RIVE 3 Feb 20

Exhibit 99.1

NEWS RELEASE

RIVERVIEW FINANCIAL CORPORATION

REPORTS FOURTH QUARTER AND ANNUAL EARNINGS FOR 2019

HARRISBURG, PA, January 31, 2020 / PRNEWSWIRE / Riverview Financial Corporation (the “Company” or “Riverview”) (NASDAQ: RIVE), today reported unaudited financial results at and for the three months and year ended December 31, 2019. Riverview reported net income of $1.3 million, or $0.14 per basic and diluted weighted average common share, for the fourth quarter of 2019, compared to net income of $2.5 million, or $0.27 per basic and diluted weighted average common share, for the fourth quarter of 2018. The decrease in results was caused primarily by recognizing $704 thousand less of net accretion on acquired assets and assumed liabilities along with lower average loan volumes comparing the fourth quarters of 2019 and 2018.

For the year ended December 31, 2019, Riverview reported net income of $4.3 million, or $0.47 per basic and diluted weighted average common share, compared to net income of $10.9 million, or $1.19 per basic and diluted weighted average common share, for the year ended December 31, 2018. The year over year reduction was largely a function of recognizing $1.7 million less of net accretion on acquired assets and assumed liabilities, a $2.2 million nonrecurring executive separation charge and $694 thousand of severance expense to employees that either retired or were separated from service due to branch network consolidations. The reduction in net income was also impacted by recording a loan loss provision of $2.4 million in 2019 compared to $615 thousand in 2018.

HIGHLIGHTS

•

Continued strength in asset quality as nonperforming assets as a percentage of loans, net, and other real estate owned was 0.60% at December 31, 2019, an improvement from 0.81% at December 31, 2018.

•

Total interest-bearing fund costs declined to 0.99% for the quarter ended December 31, 2019 from 1.05% for the quarter ended September 30, 2019.

•

Total noninterest income increased $657 thousand, or 33.5%, during the fourth quarter of 2019 compared to the prior quarter ended September 30, 2019.

•

Salaries and employee benefits expense decreased $1.2 million to $5.3 million in the fourth quarter of 2019 compared to $6.5 million in the fourth quarter of 2018.

•

Book value per share and tangible book value per share grew to $12.81 and $9.83 per share, respectively, at the end of the fourth quarter of 2019, representing increases of $0.32 and $0.44 per share, respectively, compared to the same period last year.

•

Stockholders’ equity as a percentage of total assets improved to 10.94% at the end of the fourth quarter of 2019 compared to 10.01% at the same period last year. Tangible stockholders’ equity as a percentage of tangible assets increased to 8.61% at December 31, 2019, from 7.72% at December 31, 2018.

“2019 operating results include large, nonrecurring expense items associated with strategic efficiency initiatives that are intended to positively impact earnings in future years,” said Brett D. Fulk, President and Chief Executive Officer, “including costs associated with the closure of three offices and the sale of a fourth office during the fourth quarter.” Fulk continued “2019 is a year we strategically chose to address unacceptable operating efficiency results, and will serve as a pivotal year in establishing a more efficient organization in the future. While we are keenly focused on improved efficiencies, it is also critically important for us to continue investing in new growth locations and in asset generation employees, which temporarily offsets the positive impacts taking hold as a result of our efficiency initiatives until these growth efforts result in new asset generation, which is beginning to occur as anticipated.”

Regarding asset generation, Fulk commented “as I stated in our third quarter earnings press release, it remains imperative we expand our earning asset base responsibly. The lack of organic loan balance growth during 2019 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 through the opening of new full service offices and limited purpose offices, as well as attracting additional asset generation employees to our organization. We are experiencing strong loan demand within our expanded markets and through new employees focused on commercial relationship opportunities, and with a healthy pipeline of activity entering 2020 we expect to begin demonstrating growth in our loan balances outstanding early in the year.”

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three months ended December 31 was $9.3 million in 2019 compared to $11.4 million in 2018. The decline intax-equivalent net interest income was attributable to recognizing a lower amount of net accretion on purchased assets and assumed liabilities along with a reduction in average loan volumes. For the three months ended December 31, thetax-equivalent net interest margin decreased to 3.74% in 2019 from 4.30% in 2018. Excluding purchase accounting adjustments of $445 thousand in the fourth quarter of 2019 and $1,149 thousand in the fourth quarter of 2018, thetax-equivalent net interest margins were 3.56% in 2019 and 3.86% in 2018. The loan portfolio yield on atax-equivalent basis declined to 4.86% in the fourth quarter of 2019 compared to 5.51% for the same period last year. Excluding loan accretion of $377 in the fourth quarter of 2019 and $1,437 in the fourth quarter of 2018, thetax-equivalent loan yield would have been 4.69% in 2019 and 4.88% in 2018. The cost of funds decreased 3 basis points comparing the fourth quarters of 2019 and 2018. Average loan volume declined $48.2 million to $859.9 million from $908.1 million comparing the three months ended December 31, 2019 and 2018.

For the year ended December 31,tax-equivalent net interest income declined $3.0 million to $41.2 million in 2019 from $44.2 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. Loans averaged $879.3 million for the year ended December 31, 2019 compared to $928.5 million during 2018. For the year ended December 31,tax-equivalent net interest margin was 4.07% in 2019 compared to 4.19% in 2018. Adjusting for the recognition of purchase accounting adjustments of $3.5 million and $5.2 million, thetax-equivalent net interest margin would have been 3.72% and 3.70% for the years ended December 31, 2019 and 2018. Thetax-equivalent yield on earnings assets was 4.91% and the cost of interest-bearing funds was 1.04% in 2019. Thetax-equivalent yield on the loan portfolio decreased slightly to 5.24% in 2019 compared to 5.27% in 2018. Excluding loan accretion of $3.2 million and $5.2 million included in loan interest income related to acquired loans, the

tax-equivalent yield on the loan portfolio would have been 4.87% and 4.71% for the years ended December 31, 2019 and 2018. For the twelve months ended December 31, investments yielded 2.99% on atax-equivalent basis in 2019 compared to 2.84% for the same period last year. The cost of deposits increased 15 basis points to 0.99% in 2019 from 0.84% in 2018. Excluding the impact of purchase accounting, the cost of deposits would have increased 13 basis points to 1.03% in 2019 from 0.90% in 2018. The cost of interest-bearing liabilities increased to 1.04% in 2019 from 0.91% in 2018. Excluding the impact of purchase accounting, the cost of interest-bearing liabilities would have increased 15 basis points in 2019.

For the quarter ended December 31, the provision for loan losses was $156 thousand in 2019 compared to no provision for the same period in 2018. The provision for loan losses totaled $2,406 thousand for the year ended December 31, 2019, compared to $615 thousand in 2018. The increase in the provision for loan losses in 2019 was caused by higher net charge-offs primarily associated with legacy purchased loans.

For the quarter ended December 31, noninterest income totaled $2,617 thousand in 2019, an increase of $277 thousand from $2,340 thousand in 2018. The increase in noninterest income for the quarter was due primarily to increases in services charges, fees and commissions of $138 thousand and mortgage banking income of $96 thousand and recognizing net gains on the sale of investment securities of $73 thousand. For the year ended December 31, noninterest income decreased to $8,514 thousand in 2019 compared to $8,880 thousand in 2018. The decrease was primarily a result of lower service charges, fees and commissions of $511 thousand and mortgage banking income of $74 thousand offset partially by increases in trust commissions and fees of $165 thousand and wealth management income of $129 thousand.

Noninterest expense decreased $451 thousand to $10,189 thousand for the three months ended December 31, 2019, from $10,640 thousand for the same period last year. The decrease in noninterest expense for the quarter was due primarily to decreases in salaries and employee benefits expense of $1,216 thousand offset partially by increases in net occupancy and equipment expenses of $172 thousand and other expenses of $585 thousand. The improvement in salary and benefits expense was primarily a result of implementing initiatives to eliminate staff redundancies and improve efficiencies along with the Company’s branch network repositioning strategy resulting in branch closures. The increase in net occupancy and equipment expense was due to the acceleration of depreciation on disposed equipment. Other expenses increased primarily due to the recognition of a breakage fee on a contractual arrangement. For the year ended December 31, noninterest expense increased to $42,068 thousand in 2019 compared to $38,925 thousand in 2018. The increase was primarily due to $2.2 million in nonrecurring expenses from the execution of an executive separation agreement and $694 thousand of retirement and severance accruals.

BALANCE SHEET REVIEW

Total assets, loans, net, and deposits totaled $1.1 billion, $852.1 million, and $940.5 million at December 31, 2019. For the three months ended December 31, 2019, total assets, loans and deposits decreased $29.8 million, $31.4 million and $29.1 million, respectively. For the year ended December 31, 2019, total assets decreased $57.6 million or 5.1%. Year to date, loans, net, decreased $41.1 million comparing December 31, 2019 and 2018. Business lending, including commercial and commercial real estate loans, decreased $46.0 million while retail lending, including residential mortgages and consumer loans, decreased $17.4 million for the year ended December 31, 2019. For this same period construction lending increased $22.3 million. A delay in the pipeline build within new markets following new office openings and new employee hires, a more robust competitive environment for existing loan relationships and heightened level of loan payoffs caused the overall decline in the loan portfolio. Total investments were $91.2 million at December 31, 2019, compared to $104.7 million at December 31, 2018. Total

deposits decreased $64.1 million in 2019, as the reduction in loan volumes decreased the need to aggressively price deposits. Noninterest-bearing deposits decreased $15.2 million, while interest-bearing deposits decreased $48.9 million. As a percentage of total deposits, noninterest-bearing deposits amounted to 15.7% at December 31, 2019 and 16.2% at December 31, 2018.

Stockholders’ equity totaled $118.1 million, or $12.81 per share, at December 31, 2019, $117.3 million, or $12.77 per share, at September 30, 2019, and $113.9 million, or $12.49 per share, at December 31, 2018. The increase in equity in the year ended December 31, 2019 was due primarily to a change of $2.3 million in accumulated other comprehensive income and net income of $4.3 million offset partially by dividends declared of $3.2 million. Tangible stockholders’ equity per common share increased to $9.83 at December 31, 2019, compared to $9.75 at September 30, 2019 and $9.39 at December 31, 2018. Dividends declared for the fourth quarter of 2019 amounted to $0.075 per share representing a dividend payout ratio of 2.4% based on the Company’s closing market price on December 31, 2019.

ASSET QUALITY REVIEW

Nonperforming assets were $5.1 million, or 0.60% of loans, net, and foreclosed assets at December 31, 2019 compared to $7.2 million or 0.81% at December 31, 2018. Adjusting for accruing restructured loans, nonperforming assets were $2.4 million, or 0.28% of loans, net and foreclosed assets at December 31, 2019, and $4.3 million, or 0.48%, at December 31, 2018. The allowance for loan losses equaled $7.5 million, or 0.88%, of loans, net, at December 31, 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 1.01% as a percentage of loans, net at December 31, 2019. The coverage ratio, allowance for loan losses as a percentage of nonperforming assets, was 148.0% at December 31, 2019 versus 88.1% at December 31, 2018. Excluding accruing restructured loans, the coverage ratio would be 311.4% at December 31, 2019. Loanscharged-off, net of recoveries, for the year ended December 31, 2019, equaled $1,238 thousand, compared to $573 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 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/.

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 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 certainnon-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, 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)


	Dec 31 2019			Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018
Key performance data:

Per common share data:
Net income (loss)	$	0.14		$	0.25		$	0.16		$	(0.08	)	$	0.27
Core net income (1)	$	0.13		$	0.25		$	0.16		$	0.12		$	0.27
Cash dividends declared	$	0.08		$	0.08		$	0.10		$	0.10		$	0.10
Book value	$	12.81		$	12.77		$	12.62		$	12.40		$	12.49
Tangible book value (1)	$	9.83		$	9.75		$	9.58		$	9.33		$	9.39
Market value:
High	$	12.50		$	11.68		$	11.44		$	13.00		$	14.29
Low	$	11.10		$	9.90		$	10.50		$	10.90		$	10.11
Closing	$	12.49		$	11.68		$	10.50		$	11.50		$	10.90
Market capitalization	$	115,116		$	107,252		$	96,261		$	105,278		$	99,425
Common shares outstanding		9,216,616			9,182,565			9,167,670			9,154,599			9,121,555
Selected ratios:
Return on average stockholders’ equity		4.28	%		7.62	%		5.00	%		(2.46	)%		8.64	%
Core return on average stockholders’ equity⁽¹⁾		4.09	%		7.76	%		5.00	%		3.93	%		8.78	%
Return on average tangible stockholders’ equity⁽¹⁾		5.59	%		9.97	%		6.61	%		(3.27	)%		11.52	%
Core return on average tangible stockholders’ equity⁽¹⁾		5.33	%		10.16	%		6.61	%		5.23	%		11.70	%
Tangible stockholders’ equity to tangible assets⁽¹⁾		8.61	%		8.28	%		8.04	%		7.69	%		7.72	%
Return on average assets		0.46	%		0.81	%		0.51	%		(0.25	)%		0.86	%
Core return on average assets⁽¹⁾		0.44	%		0.82	%		0.51	%		0.39	%		0.87	%
Stockholders’ equity to total assets		10.94	%		10.57	%		10.33	%		9.97	%		10.01	%
Efficiency ratio⁽²⁾		84.24	%		69.11	%		79.90	%		100.74	%		76.11	%
Nonperforming assets to loans, net, and foreclosed assets		0.60	%		0.66	%		0.56	%		0.68	%		0.81	%
Net charge-offs to average loans, net		(0.12	%)		0.43	%		0.05	%		0.20	%		0.05	%
Allowance for loan losses to loans, net		0.88	%		0.80	%		0.79	%		0.74	%		0.71	%
Earning assets yield (FTE)⁽³⁾		4.54	%		5.31	%		5.07	%		4.73	%		5.13	%
Cost of funds		0.99	%		1.05	%		1.07	%		1.06	%		1.02	%
Net interest spread (FTE)⁽³⁾		3.55	%		4.26	%		4.00	%		3.67	%		4.11	%
Net interest margin (FTE)⁽³⁾		3.74	%		4.46	%		4.20	%		3.86	%		4.30	%

(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)


	Dec 31 2019			Dec 31 2018
Twelve Months Ended

Interest income:
Interest and fees on loans:
Taxable	$	44,867		$	47,733
Tax-exempt		979			930
Interest and dividends on investment securities:
Taxable		2,735			2,276
Tax-exempt		200			320
Dividends
Interest on interest-bearing deposits in other banks		766			575
Interest on federal funds sold					20
Total interest income		49,547			51,854

Interest expense:
Interest on deposits		8,086			7,189
Interest on short-term borrowings					30
Interest on long-term debt		514			746
Total interest expense		8,600			7,965
Net interest income		40,947			43,889
Provision for loan losses		2,406			615
Net interest income after provision for loan losses		38,541			43,274
Noninterest income:
Service charges, fees and commissions		5,186			5,697
Commissions and fees on fiduciary activities		1,080			915
Wealth management income		940			811
Mortgage banking income		567			641
Life insurance investment income		763			776
Net gain (loss) on sale of investment securitiesavailable-for-sale		(22	)		40
Total noninterest income		8,514			8,880

Noninterest expense:
Salaries and employee benefits expense		23,845			22,064
Net occupancy and equipment expense		4,357			4,153
Amortization of intangible assets		773			867
Net cost of operation of other real estate owned		67			48
Other expenses		13,026			11,793
Total noninterest expense		42,068			38,925
Income before income taxes		4,987			13,229
Income tax expense		701			2,371
Net income	$	4,286		$	10,858
Other comprehensive income:
Unrealized gain (loss) on investment securitiesavailable-for-sale	$	2,837		$	(1,012	)
Reclassification adjustment for (gain) loss included in net income		22			(40	)
Change in pension liability		16			(265	)
Income tax expense (benefit) related to other comprehensive income (loss)		604			(277	)
Other comprehensive income (loss), net of income taxes		2,271			(1,040	)
Comprehensive income	$	6,557		$	9,818

Per common share data:
Net income:
Basic	$	0.47		$	1.19
Diluted	$	0.47		$	1.19
Average common shares outstanding:
Basic		9,167,415			9,096,142
Diluted		9,181,752			9,148,297
Cash dividends declared	$	0.35		$	0.30

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)


	Dec 31 2019			Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018
Three months ended

Interest income:
Interest and fees on loans:
Taxable	$	10,216		$	12,283		$	11,680		$	10,688		$	12,309
Tax-exempt		257			259			233			230			231
Interest and dividends on investment securitiesavailable-for-sale:
Taxable		622			641			732			740			660
Tax-exempt		41			43			47			69			77
Dividends
Interest on interest-bearing deposits in other banks		119			200			216			231			214
Interest on federal funds sold
Total interest income		11,255			13,426			12,908			11,958			13,491

Interest expense:
Interest on deposits		1,887			2,027			2,099			2,073			2,027
Interest on short-term borrowings
Interest on long-term debt		122			127			131			134			184
Total interest expense		2,009			2,154			2,230			2,207			2,211
Net interest income		9,246			11,272			10,678			9,751			11,280
Provision for loan losses		156			1,049			618			583
Net interest income after provision for loan losses		9,090			10,223			10,060			9,168			11,280

Noninterest income:
Service charges, fees and commissions		1,689			1,129			1,315			1,053			1,551
Commissions and fees on fiduciary activities		225			314			281			260			244
Wealth management income		231			226			236			247			239
Mortgage banking income		210			151			100			106			114
Life insurance investment income		189			193			194			187			192
Net gain (loss) on sale of investment securitiesavailable-for-sale		73			(53	)					(42	)
Total noninterest income		2,617			1,960			2,126			1,811			2,340

Noninterest expense:
Salaries and employee benefits expense		5,273			5,232			5,830			7,510			6,489
Net occupancy and equipment expense		1,183			1,041			1,044			1,089			1,011
Amortization of intangible assets		191			194			194			194			212
Net cost (benefit) of operation of other real estate owned		47			(15	)		(92	)		127			18
Other expenses		3,495			2,979			3,508			3,044			2,910
Total noninterest expense		10,189			9,431			10,484			11,964			10,640
Income (loss) before income taxes		1,518			2,752			1,702			(985	)		2,980
Income tax expense (benefit)		245			486			268			(298	)		508
Net income (loss)	$	1,273		$	2,266		$	1,434		$	(687	)	$	2,472

Other comprehensive income (loss):
Unrealized gain (loss) on investment securitiesavailable-for-sale	$	134		$	(256	)	$	1,936		$	1,023		$	527
Reclassification adjustment for (gain) loss included in net income		(73	)		53						42
Change in pension liability		16												(265	)
Income tax expense (benefit) related to other comprehensive income (loss)		16			(42	)		406			224			54
Other comprehensive income (loss), net of income taxes		61			(161	)		1,530			841			208
Comprehensive income (loss)	$	1,334		$	2,105		$	2,964		$	154		$	2,680

Per common share data:
Net income (loss):
Basic	$	0.14		$	0.25		$	0.16		$	(0.08	)	$	0.27
Diluted	$	0.14		$	0.25		$	0.16		$	(0.08	)	$	0.27
Average common shares outstanding:
Basic		9,191,551			9,173,901			9,160,290			9,143,316			9,115,450
Diluted		9,210,646			9,181,076			9,172,992			9,143,316			9,163,855
Cash dividends declared	$	0.08		$	0.08		$	0.10		$	0.10		$	0.10

Riverview Financial Corporation

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)


	Dec 31 2019			Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018
Three months ended

Net interest income:
Interest income
Loans, net:
Taxable	$	10,216		$	12,283		$	11,680		$	10,688		$	12,309
Tax-exempt		325			328			295			291			292
Total loans, net		10,541			12,611			11,975			10,979			12,601
Investments:
Taxable		622			641			732			740			660
Tax-exempt		52			54			60			87			97
Total investments		674			695			792			827			757
Interest on interest-bearing balances in other banks		119			200			216			231			214
Federal funds sold
Total interest income		11,334			13,506			12,983			12,037			13,572
Interest expense:
Deposits		1,887			2,027			2,099			2,073			2,027
Short-term borrowings
Long-term debt		122			127			131			134			184
Total interest expense		2,009			2,154			2,230			2,207			2,211
Net interest income	$	9,325		$	11,352		$	10,753		$	9,830		$	11,361

Yields on earning assets:
Loans, net:
Taxable		4.93	%		5.77	%		5.49	%		5.09	%		5.60	%
Tax-exempt		3.47	%		3.47	%		3.41	%		3.34	%		3.26	%
Total loans, net		4.86	%		5.67	%		5.41	%		5.02	%		5.51	%
Investments:
Taxable		2.69	%		2.90	%		3.07	%		3.09	%		3.00	%
Tax-exempt		4.19	%		4.08	%		3.67	%		3.15	%		2.92	%
Total investments		2.77	%		2.96	%		3.11	%		3.10	%		2.99	%
Interest-bearing balances with banks		1.39	%		2.31	%		2.36	%		2.54	%		2.08	%
Federal funds sold
Total earning assets		4.54	%		5.31	%		5.07	%		4.73	%		5.13	%
Costs of interest-bearing liabilities:
Deposits		0.94	%		0.99	%		1.02	%		1.01	%		0.95	%
Short-term borrowings
Long-term debt		6.95	%		7.26	%		7.59	%		7.87	%		5.95	%
Total interest-bearing liabilities		0.99	%		1.05	%		1.07	%		1.06	%		1.02	%
Net interest spread		3.55	%		4.26	%		4.00	%		3.67	%		4.11	%
Net interest margin		3.74	%		4.46	%		4.20	%		3.86	%		4.30	%

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands, except per share data)


	Dec 31 2019			Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018
At period end

Assets:
Cash and due from banks	$	11,838		$	13,108		$	11,354		$	12,278		$	16,708
Interest-bearing balances in other banks		38,510			16,733			29,621			55,823			37,108
Federal funds sold
Investment securitiesavailable-for-sale		91,247			106,637			100,254			100,684			104,677
Loans held for sale		81			336			170			695			637
Loans, net		852,109			883,506			889,305			878,070			893,184
Less: allowance for loan losses		7,516			7,097			7,002			6,486			6,348
Net loans		844,593			876,409			882,303			871,584			886,836
Premises and equipment, net		17,852			18,115			18,144			18,355			18,208
Accrued interest receivable		2,414			2,751			2,870			3,018			3,010
Goodwill		24,754			24,754			24,754			24,754			24,754
Other intangible assets, net		2,736			2,927			3,121			3,315			3,509
Other assets		45,929			47,989			47,607			48,206			42,156
Total assets	$	1,079,954		$	1,109,759		$	1,120,198		$	1,138,712		$	1,137,603

Liabilities:
Deposits:
Noninterest-bearing	$	147,405		$	161,211		$	160,407		$	164,880		$	162,574
Interest-bearing		793,075			808,372			819,293			836,149			842,019
Total deposits		940,480			969,583			979,700			1,001,029			1,004,593
Short-term borrowings
Long-term debt		6,971			6,951			6,932			6,912			6,892
Accrued interest payable		435			432			445			475			484
Other liabilities		13,958			15,538			17,443			16,806			11,724
Total liabilities		961,844			992,504			1,004,520			1,025,222			1,023,693

Stockholders’ equity:
Common stock		102,206			101,807			101,644			101,500			101,134
Capital surplus		112			300			304			307			332
Retained earnings		16,140			15,557			13,978			13,461			15,063
Accumulated other comprehensive income (loss)		(348	)		(409	)		(248	)		(1,778	)		(2,619	)
Total stockholders’ equity		118,110			117,255			115,678			113,490			113,910
Total liabilities and stockholders’ equity	$	1,079,954		$	1,109,759		$	1,120,198		$	1,138,712		$	1,137,603

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands except per share data)


	Dec 31 2019		Sep 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018
Average quarterly balances

Assets:
Loans, net:
Taxable	$	822,667	$	845,103	$	853,329	$	851,515	$	872,615
Tax-exempt		37,194		37,523		34,714		35,298		35,501
Total loans, net		859,861		882,626		888,043		886,813		908,116
Investments:
Taxable		91,665		87,753		95,577		97,041		87,249
Tax-exempt		4,929		5,257		6,558		11,215		13,198
Total investments		96,594		93,010		102,135		108,256		100,447
Interest-bearing balances with banks		33,882		34,323		36,780		36,953		40,787
Federal funds sold
Total earning assets		990,337		1,009,959		1,026,958		1,032,022		1,049,350
Other assets		99,930		101,242		99,923		97,628		95,000
Total assets	$	1,090,267	$	1,111,201	$	1,126,881	$	1,129,650	$	1,144,350

Liabilities and stockholders’ equity:
Deposits:
Interest-bearing	$	797,577	$	810,430	$	829,003	$	835,687	$	847,867
Noninterest-bearing		152,596		159,320		159,069		156,735		159,758
Total deposits		950,173		969,750		988,072		992,422		1,007,625
Short-term borrowings
Long-term debt		6,962		6,942		6,922		6,902		12,268
Other liabilities		15,179		16,581		16,944		17,006		10,973
Total liabilities		972,314		993,273		1,011,938		1,016,330		1,030,866
Stockholders’ equity		117,953		117,928		114,943		113,320		113,484
Total liabilities and stockholders’ equity	$	1,090,267	$	1,111,201	$	1,126,881	$	1,129,650	$	1,144,350

Riverview Financial Corporation

Asset Quality Data

(In thousands)


	Dec 31 2019		Sep 30 2019		Jun 30 2019		Mar 31 2019		Dec 31 2018
At quarter end:
Nonperforming assets:
Nonaccrual loans	$	2,287	$	2,927	$	2,165	$	2,643	$	2,729
Accruing restructured loans		2,666		2,692		2,715		2,731		2,913
Accruing loans past due 90 days or more		45		100		52		122		839
Foreclosed assets		82		87		86		461		721
Total nonperforming assets	$	5,080	$	5,806	$	5,018	$	5,957	$	7,202

Three months ended:
Allowance for loan losses:
Beginning balance	$	7,097	$	7,002	$	6,486	$	6,348	$	6,472
Charge-offs		237		985		142		520		166
Recoveries		500		31		40		75		42
Provision for loan losses		156		1,049		618		583
Ending balance	$	7,516	$	7,097	$	7,002	$	6,486	$	6,348

Riverview Financial Corporation

Reconciliation ofNon-GAAP Financial Measures

(In thousands, except per share data)


	Dec 31 2019			Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018
Three months ended:
Core net income (loss) per common share:
Net income (loss)	$	1,273		$	2,266		$	1,434		$	(687	)	$	2,472
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		58			(42	)					(33	)
Add: Acquisition related expenses, net of tax														39
Add: Executive separation expense, net of tax											1,752
Net income (loss) Core	$	1,215		$	2,308		$	1,434		$	1,098		$	2,511

Average common shares outstanding		9,191,551			9,173,901			9,160,290			9,143,316			9,115,450
Core net income (loss) per common share	$	0.13		$	0.25		$	0.16		$	0.12		$	0.27

Tangible book value:
Total stockholders’ equity	$	118,110		$	117,255		$	115,678		$	113,490		$	113,910
Less: Goodwill		24,754			24,754			24,754			24,754			24,754
Less: Other intangible assets, net		2,736			2,927			3,121			3,315			3,509
Total tangible stockholders’ equity	$	90,620		$	89,574		$	87,803		$	85,421		$	85,647

Common shares outstanding		9,216,616			9,182,565			9,167,670			9,154,599			9,121,555

Tangible book value per share	$	9.83		$	9.75		$	9.58		$	9.33		$	9.39

Tangible stockholders’ equity to tangible assets:
Total stockholders’ equity	$	118,110		$	117,255		$	115,678		$	113,490		$	113,910
Less: Goodwill		24,754			24,754			24,754			24,754			24,754
Less: Other intangible assets, net		2,736			2,927			3,121			3,315			3,509
Total tangible stockholders’ equity	$	90,620		$	89,574		$	87,803		$	85,421		$	85,647

Total assets	$	1,079,954		$	1,109,759		$	1,120,198		$	1,138,712		$	1,137,603
Less: Goodwill		24,754			24,754			24,754			24,754			24,754
Less: Other intangible assets, net		2,736			2,927			3,121			3,315			3,509
Total tangible assets	$	1,052,464		$	1,082,078		$	1,092,323		$	1,110,643		$	1,109,340

Tangible stockholders’ equity to tangible assets		8.61	%		8.28	%		8.04	%		7.69	%		7.72	%

Core return on average stockholders’ equity:
Net income (loss) GAAP	$	1,273		$	2,266		$	1,434		$	(687	)	$	2,472
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		58			(42	)					(33	)
Add: Acquisition related expenses, net of tax														39
Add: Executive separation expense, net of tax											1,752
Net income (loss) Core	$	1,215		$	2,308		$	1,434		$	1,098		$	2,511

Average stockholders’ equity	$	117,953		$	117,928		$	114,943		$	113,320		$	113,484
Core return on average stockholders’ equity		4.09	%		7.76	%		5.00	%		3.93	%		8.78	%

Return on average tangible equity:
Net income (loss) GAAP	$	1,273		$	2,266		$	1,434		$	(687	)	$	2,472

Average stockholders’ equity	$	117,953		$	117,928		$	114,943		$	113,320		$	113,484
Less: average intangibles		27,579			27,775			27,968			28,164			28,365
Average tangible stockholders’ equity	$	90,374		$	90,153		$	86,975		$	85,156		$	85,119

Return on average tangible stockholders’ equity		5.59	%		9.97	%		6.61	%		(3.27	)%		11.52	%

Riverview Financial Corporation

Reconciliation ofNon-GAAP Financial Measures

(In thousands, except per share data)


	Dec 31 2019			Sep 30 2019			Jun 30 2019			Mar 31 2019			Dec 31 2018
Three months ended:
Core return on average tangible stockholders’ equity:
Net income (loss) GAAP	$	1,273		$	2,266		$	1,434		$	(687	)	$	2,472
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		58			(42	)					(33	)
Add: Acquisition related expenses, net of tax														39
Add: Executive separation expense, net of tax											1,752
Net income (loss) Core	$	1,215		$	2,308		$	1,434		$	1,098		$	2,511

Average stockholders’ equity	$	117,953		$	117,928		$	114,943		$	113,320		$	113,484
Less: average intangibles		27,579			27,775			27,968			28,164			28,365
Average tangible stockholders’ equity	$	90,374		$	90,153		$	86,975		$	85,156		$	85,119

Core return on average tangible stockholders’ equity		5.33	%		10.16	%		6.61	%		5.23	%		11.70	%

Core return on average assets:
Net income (loss) GAAP	$	1,273		$	2,266		$	1,434		$	(687	)	$	2,472
Adjustments:
Less: Gain (loss) on sale of investment securities, net of tax		58			(42	)					(33	)
Add: Acquisition related expenses, net of tax														39
Add: Executive separation expense, net of tax											1,752
Net income (loss) Core	$	1,215		$	2,308		$	1,434		$	1,098		$	2,511

Average assets	$	1,090,267		$	1,111,201		$	1,126,881		$	1,129,650		$	1,144,350

Core return on average assets		0.44	%		0.82	%		0.51	%		0.39	%		0.87	%

Riverview Financial Corporation

Reconciliation ofNon-GAAP Financial Measures

(In thousands, except per share data)


	Dec 31 2019			Dec 31 2018
Twelve months ended:

Core net income per common share:
Net income	$	4,286		$	10,858
Adjustments:
Less: Gains (loss) on sale of investment securities, net of tax		(17	)		32
Add: Acquisition related expenses, net of tax					437
Add: Executive separation expense, net of tax		1,752
Net income - core	$	6,055		$	11,263

Average common shares outstanding		9,167,415			9,096,142

Core net income (loss) per common share	$	0.66		$	1.24

Riverview Financial (RIVE) 8-KReports Fourth Quarter and Annual Earnings for 2019